A year in review Economic / Governance Environment Social Appendix Climate change Budget and financial mechanisms climate. The Sustainability Leadership Team, led by the Global modelling. We also contributed to the WBCSD Value Chain Budget and financial mechanisms are also important enablers, Head of Sustainability, is made up of internal experts on topics Carbon Transparency Pathfinder initiative dedicated to and we have a dedicated budget for energy efficiency. linked to purpose / sustainability. enabling standardised exchange of information or carbon Accordingly, and compared to the standard, extra capital is emissions data between companies. allocated to the design and construction of new greenfield Still, we know that we cannot achieve this alone. Externally, we facilities with higher energy-saving design standards. seek to partner with our suppliers, customers and communities. For example, we work together with local communities on We have also identified and agreed on an internal price of projects and causes that benefit the communities where we carbon mechanism to employ for our scope 1 and 2 emissions work. We define local communities as persons or groups of reduction projects. We are currently running proof of people living and/or working in any areas that are economically, concepts with representative real projects before rolling out socially or environmentally impacted (positively or negatively) the process globally. by Givaudan’s operations. The local community can range from people living adjacent to operations to isolated settlements at Advocacy and promotion a distance from operations that may experience the impacts of Givaudan’s involvement in numerous engagement activities these operations. On most sites, formal relationships have demonstrates our ambition to help mitigate climate change been established with local authorities and with significant and our desire to work in a broad global partnership of organisations representing neighbours, or working on specific proactive companies dedicated to making a positive difference. environmental and social issues. Examples include our membership of the International We built partnerships with non-profit organisations and Fragrance Association (IFRA) and the International support these local communities through a variety of social Organization of the Flavor Industry (IOFI); RE100, an initiative and environmental projects. This includes climate-related uniting more than 100 influential businesses committed to projects, from working with farmers on reforestation in 100% renewable electricity; Business ambition 1.5°, an urgent Indonesia to supporting schools in Madagascar, Laos, the call to action from a global coalition of UN agencies, business Comoros islands and Haiti. and industry leaders; the UN Global Compact, a strategic policy initiative for businesses committed to aligning their operations Internally, we are getting organised with cross-functional and strategies with 10 universally accepted principles in the teams delivering training on specific topics related to carbon areas of human rights, labour, environment and anti-corruption management, CO₂e emission modelling or supplier engagement and, finally, the Renewable Carbon Initiative. to internal stakeholders. Partnership and governance In addition, Givaudan joined the Together for Sustainability In terms of governance, the Executive Committee leads organisation this year and, more specifically, engaged in their Givaudan’s overall strategic direction and is accountable for scope 3 workstream, which is developing partnerships our purpose and Sustainability ambitions, including those on between chemical companies on scope 3 management and 62 Givaudan — 2021 GRI Sustainability Report