A year in review Economic / Governance Environment Social Appendix Climate change 0.87 CO₂e/employee per year. Givaudan actively encourages its The three most relevant insetting solutions for Givaudan are our scope 3 calculation models. Emissions related to transport continue to grow as Givaudan’s business grows. The decoupling employees to reduce the GHG emissions of their daily commute reforestation, improved plantations (for example, firewood of this activity is complex and requires important changes in by supporting a range of schemes including a bike-to-work plantation for distillation) and improved agricultural practices. the design of the entire supply chain. The COVID-19 pandemic initiative at our Swiss sites, the facilitation of carpooling through has also complicated transport activity in general, and this was our intranet platform, and the provision of recharge stations to Enablers not beneficial to our footprint. support the transition to electric cars at some sites. Our efforts to become climate positive also include a number of transversal enablers. They are not linked to a specific annual Waste generated in operations Neutralisation / compensation timeframe but are rather meant to support our climate journey This figure increased by 25% between 2015 and 2021. This Though our Climate Strategy prioritises the reduction of over the next 30 years. The approaches include innovation, increase is partially due to a reclassification of waste streams, emissions, we also look to neutralise or compensate residual supplier engagement, budget and financial mechanisms, which led to an increase of total GHG emissions related to emissions that cannot be reduced. Carbon removal solutions are advocacy and promotion as well as partnership and governance. waste of 6% between 2020 and 2021, for example. We also an essential element to going beyond net zero and achieving our identify an increase due to product mix evolution as well as climate positive target. The journey in front of us is long and the Innovation particular liquid discharges being separated from wastewater results will take time. This is why we are starting now. Ambitious GHG emission reduction is not possible without flows and being treated separately, accounting for waste in the innovation and an evolution of our technologies. We seek reporting. We have confidence in the future performance of Natural Climate Solutions opportunities to partner with experts from diverse fields in waste emissions in scope 3: our waste reduction strategy and Our approach is now focused on Natural Climate Solutions finding new ways to improve our environmental performance. scope 3 emissions reduction are perfectly aligned. We continue (NCS), which aim at the better management, protection and Givaudan invests substantially in R&D – it’s part of our DNA. to focus our attention on reducing waste production and restoration of ecosystems. They target a reduction of GHG For climate action in particular, we look at energy-intensive evaluating valorisation streams instead of disposal. emissions related to land use and changes in land use, the activities of our processes, for example, our cooling and capture and storage of additional CO₂ from the atmosphere refrigeration needs, and seek opportunities to use alternative Business travel and, finally, the improvement of ecosystem resilience, thereby technologies to achieve the same performance and jointly COVID-19 and associated travel bans and restrictions contributed helping communities adapt to the increases in flooding and reduce our GHG emissions. We have found that solar heat to a drop of more than 93% in business travel in 2021. The dry spells associated with climate change. offers an energy-efficient way to power industry’s needs for challenge here is to organise a post-pandemic strategy to travel cooling and refrigeration. The opportunity is about developing less and more efficiently. Carbon capture technology the technology that will be able to efficiently and reliably Insetting, that is, the neutralisation of our emissions through a respond to variable needs across a range of processes and sites. Employee commuting carbon capture and storage project within our value chain, is During 2021, we carried out an employee commuting survey to highly relevant for Givaudan because we have a direct footprint in As discussed in the section on low-carbon creations above, collect data and better understand the impact of our various natural supply chains located in countries where the environment biotechnology also holds potential for carving out a more initiatives in this category. With 7,000 employees participating, is under pressure. For us, insetting means natural solutions in the sustainable future for perfumery and for our planet. At we learned that our emissions are decreasing: without taking supply chains, with the producing communities. It is not the Givaudan, it has already led to some extraordinary innovations. COVID-19 and associated working-from-home measures into easiest approach because it involves land availability and long- Akigalawood®, a novel material that has a profile similar to account, we reduced our output of CO₂e/employee per year to term commitment, traceability and auditing. It is the most that of patchouli, is another example of a raw material now 1.15 tCO₂e from 2.0 tCO₂e in 2015. If we take working from home credible, relevant approach to Givaudan and in line with our SBTi produced through biotechnology and a groundbreaking, due to the pandemic situation into account, the figure drops to engagements. It will also benefit our communities socially. environmentally friendly process. 61 Givaudan — 2021 GRI Sustainability Report