A year in review Economic / Governance Environment Social Appendix Water stewardship Supply chain and communities Supply chain water risk management Our actions and progress Givaudan is acting as a role model in water stewardship, working We will conduct contextual watershed risk assessments using We engage with our suppliers to advance the water to protect water-dependent ecosystems and encouraging the the Aqueduct Water Risk Atlas platform developed by the World stewardship journey. We ask for information on their relevant sustainable use of resources. In our communities, we want to set Resource Institute. We will promote regenerative agricultural accounting systems, for details on their water management goals that develop watershed strategies and collaborative practices and better use of irrigation and include water aspects strategy such as governance and targets, and for examples of actions in our priority sourcing areas. in our sourcing criteria. We will also engage our suppliers actions they have taken to reduce their impact. This around water stewardship through Sourcing4Good and promote information can be used by our procurement team to better Here, we will work in partnership with experts and the use of CDP Supply chain programme to collect water understand the challenges the suppliers are facing and make communities in our priority natural supply chains – defined by stewardship data and monitor supplier performance. sure they implement the appropriate mitigation measures. our Responsible Sourcing programme, Sourcing4Good – to This can also help less advanced companies identify risks to improve and protect water quantity and quality by first Our supply chain water risk assessment is a metric-based avoid disruption and these questionnaires indirectly impact identifying those that are exposed to water risks. For those methodology that characterises our corporate water their water management. At any level of maturity, we expect identified, we will define shared water challenges and local footprint in terms of water risks. This assessment allows us to the supplier to improve in the following years. stakeholder priorities in the watershed; explore water identify hot spots in our main supply chains and gives us a stewardship activity opportunities, including nature-based clear understanding of the risks and impacts encountered. In Overall, Givaudan looks to champion best practices across the solutions and potential project partners and then develop an addition to quantifying the total water consumption of our value chain, leveraging our influence with business partners activity implementation roadmap. activities, this study also quantifies the water scarcity and suppliers to promote good water management. We want footprint along the Givaudan value chain. This data is our strategic suppliers to move beyond simply reporting We also look to improve access to water, sanitation and consolidated with internal expertise from our sourcing team water accounting information and into active management. hygiene to positively impact the lives of communities where to make sure we integrate specific contextual aspects that This is why we work together to help them understand their we operate and source through a number of measures. For can influence the risk level in some specific watersheds. This water impact and then take action to reduce it. We measure instance, our EHS policy aims to safeguard adequate access to assessment allows us to set priorities for reducing water use the success of our engagement in terms of supplier actions safe drinking water, sanitation and hygiene for all employees and develop a mitigation plan. that demonstrate improvement year on year. in locations under company control. We also implement our goal of ensuring all our manufacturing facilities provide To better understand our supply chain water risk, Givaudan For instance, we participated in the CDP Supply Chain adequate WASH services, including all those facilities acquired collects primary data information from our main suppliers to programme, using its water security questionnaire to request a in recent years. We engage suppliers regarding their be used with the supply chain water risk assessment. We variety of information from our key suppliers on relevant risks employees’ access to water, sanitation and hygiene via foster an improvement in water management and enhanced and opportunities. Our supplier response rate this year was 67% Sourcing4Good. We also engage with communities around water risk identification through the promotion of data (80/120 responded), up by 16% from 2020. In 2021, an additional company operations to identify those without safe and reporting in our supply chain. Our Responsible Sourcing policy 12 suppliers have shown engagement by responding to the adequate access to water, sanitation and hygiene and guides suppliers to comply with local wastewater treatment programme at our request. In 2021, 95% of our respondents establish local partnerships to provide this access by 2030, regulations, urging them to reduce their impact on reported having a companywide water policy, but only 6.1% including long-term maintenance. watersheds where they operate in terms of aspects including report an active basin level target. This is part of our potential water scarcity, quality and stress. focus for engagement with suppliers along with other information extracted from the CDP Supply Chain programme. 74 Givaudan — 2021 GRI Sustainability Report