A year in review Economic / Governance Environment Social Appendix Innovation capabilities & management Material topic definition Disclosure 103 – 2, 103 – 3 Taste & Wellbeing Innovation capabilities & management MANAGEMENT APPROACH Innovation through collaborations and co-creation Innovation is at the heart of our business. We take an end-to- The market increasingly recognises the urgent need to Innovating in terms of developing ingredients, products and end approach and continually seek new ways to address transform the food system into one that is regenerative and processes with minimal and/or positive environmental consumer desires and our customers’ challenges, all while equitable and aims to provide healthy, safe and nutritious impact by using renewable raw materials, eco-efficient developing creations that have a minimal and/or positive food for all: this means that proactivity and partnerships are manufacturing, green chemistry, upcycling / circular designs. impact on the environment and contribute to happier, healthier essential. We aspire to become the go-to partner for our Effectively leveraging digital innovation to support this work. lives. Collaboration and co-creation with customers and customers to co-create consumer preferred food experiences. partners, the use of renewable raw materials, eco-efficient We are well supported in these endeavours by our expertise, Purpose pillars manufacturing, green chemistry and upcycling are some of the technologies and eco-systems. CREATIONS NATURE PEOPLE COMMUNITIES approaches that help us meet this goal. Supplier-based innovation and new digital tools powered by artificial Our co-creation approach is holistic and aims at truly multi- intelligence and big data round out our approach to this topic. dimensional give and take with our partners. It starts with Disclosure 103 – 1 understanding consumers at their core, looking to discover not EXPLANATION OF THE MATERIAL TOPIC only what they enjoy, but why they enjoy it. From this AND ITS BOUNDARY foundation, we embark on the development path together, It is our ambition to double our business by 2030 through from brainstorming to production, and are supported along the creations that contribute to happier, healthier lives. Achieving Investments in Research way by ingenuity, creativity, speed, efficiency and the this and creating meaningful, delightful moments for people fundamental belief that we are stronger together. while protecting the planet is not possible without innovation. & Development In 2021, we formalised a co-creation platform to address A strong culture of innovation, in all its forms, is critical to CHF 562Million R&D spend customer needs and accelerate development of their products, maintaining a sustainable competitive advantage, to supporting our collaborative development process in partnership guaranteeing differentiated solutions for our customers and, with our customers. Assigning a global lead and regional experts ultimately, new products for end consumers. It allows us to representing 8﹒4% of sales and establishing the process from design thinking to prototyping develop products that minimise negative impacts on the will allow us to efficiently approach projects that need to reach environment and society and maximise potential benefits. the market quickly as well as address complex or significant technical challenges. A tested, constantly evolving process that Boundary leverages a wide range of resources, from digital tools to • Givaudan operations, has been created and rolled out in all regions. • Suppliers • Customers • Innovators and partnerships Co-creation takes many forms, from working directly with customers on projects to the creation of sites or facilities designed for co-creation, to external partnerships and Front- End Innovation efforts. 42 Givaudan — 2021 GRI Sustainability Report