A year in review Economic / Governance Environment Social Appendix Governance & business conduct / ethics / transparency As described in detail in the chapter Responsible Sourcing & Disclosure 102 – 11 Management system on that basis. We verify the Traceability, Givaudan’s Responsible Sourcing Policy requires Precautionary principle or approach implementation status at our sites with internal audits and that each supplier complies with all applicable laws in the Risk taking is central to our ability to innovate, to our drive risk mitigation activities at the local level with risk countries in which it operates. Suppliers are also expected to entrepreneurial success and ultimately to sustained value portfolios at 50 sites currently, as the risk portfolios were have adequate systems as well as grievance mechanisms and creations: managing it is then an integral part of Givaudan’s extended with 13 Naturals EAME sites in 2021. We plan to processes in place to manage business integrity and provide a business. continue extending to more sites in 2022. This reduces risks means for employees to raise compliance concerns in a for the whole company. confidential way and without fear of retaliation. Enterprise Risk Management (ERM) is the process of assessing, treating and monitoring the effects of uncertainty that may In terms of product safety, we apply the rules of the UN Global Charitable contributions and sponsorships are also a potential affect the achievement of Givaudan’s objectives. We operate a Harmonized System (GHS) for the hazard classification of our source of bribery. Givaudan discloses charitable contributions structured system of identifying, assessing and deciding on raw materials and products. This is further explained in our and sponsorships in its Integrated Annual Report. responses to mitigate key risks. Our approach proactively Safety Data Sheets and is depicted on our labels. We monitor addresses all kinds of risks including strategic, operational, regular classification updates in collaboration with the READ MORE financial, legal, compliance and regulatory as well as International Organization of the Flavor Industry (IOFI) and About it in the 2021 integrated report ▸ Stronger communities, sustainable environmental, social and governance risks. The Audit the International Fragrance Association (IFRA). We manage business ▸ pages 104–106 Committee of the Board of Directors ensures that the Company’s transport safety by following international and national risk management systems are efficient and effective. regulations and monitoring their development. Givaudan seeks to consciously take the appropriate amount The precautionary approach, principle 15 of the 1992 Rio of risk, to manage risks competently at the right level of the Declaration, states that “where there are threats of serious or organisation, and to seize related business opportunities. irreversible damage, lack of full scientific certainty shall not be Through provident risk management, Givaudan aims to used as a reason for postponing cost-effective measures to reduce or prevent negative impacts on the economy, prevent environmental degradation”. As such, precaution environment and society overall. Givaudan’s overall ERM involves consistent risk assessment, management and system is based on ISO 31000. communication. Givaudan’s Environment, Health & Safety risk management Meeting such rules and regulations is however a minimum system is based on Responsible Care under consideration of and we do not feel that the precautionary principle should be international standards in the areas of quality management a barrier to doing business. We go beyond basic requirements (ISO 9001), the environment (ISO 14001) and occupational in, for example, our ambition to become climate positive health and safety (OHSAS 18001 / ISO 45001). Givaudan has before 2050. More information can be found in the chapter on signed the Responsible Care charter and has built its EHS Climate Change. 33 Givaudan — 2021 GRI Sustainability Report