A year in review Economic / Governance Environment Social Appendix Economic performance Disclosure 103 – 1 These four growth enablers of creations, nature, people and Changing consumer preferences have led to a more EXPLANATION OF THE MATERIAL TOPIC communities will help us deliver on our company purpose. fragmented customer landscape. We aim to extend our AND ITS BOUNDARY Boundary customer reach overall, targeting both large, international, Economic performance refers to our ability to operate a • Givaudan global customers as well as those who are local and regional. profitable business model for the long-term viability of the • Customers A greater focus on tailored services will allow us to better Company. For Givaudan, this is inextricably intertwined with cater to the varied needs of all our customers. Along similar being a responsible and sustainable company. This means lines, we will look to both maximise mature market working to secure our long-term economic growth while Disclosure 103 – 2, 103 – 3 opportunities and extend our leadership in high growth positively impacting the environment and society and MANAGEMENT APPROACH markets, particularly China. meeting the expectations of all our stakeholders. Short- and Our 2025 strategy “Committed to Growth, with Purpose” mid-term goals must support both our bold financial targets outlines how we intend to pursue the mid-term goals that will Supporting these drivers, we have the four growth enablers of as well as the longer-term ambitions linked to our company support both our bold financial targets as well as our longer- creations, nature, people and communities. Innovation is purpose. Our intention is to deliver growth in partnership term purpose ambitions. This approach will allow us to critical to creating inspiring solutions for our customers with our customers, achieve ambitious financial targets continue delivering sustainable value creation that benefits all. because now, more than ever, we need to consider the through the creation of inspiring products that support potential impact of our processes and products on the happier, healthier lives, all while making progress on our The 2025 strategy is based on our purpose and serves as our environment. We concentrate on renewable, biodegradable longer-term purpose ambitions in the areas of creations, roadmap for delivering sustainable value creation over the and viable natural solutions, especially in the area of health and nature, people and communities. next five years for all our stakeholders. It takes global mega wellbeing. To show our love for nature in everything we do, we trends such as a growing consumer base as well as rapidly look to have a positive impact on the supply of the natural Any business must be financially sustainable. Solid economic changing behaviours such as health and wellbeing priorities ingredients we rely on, but also to pursue industry-leading performance puts us in a position to support our customers’ and responsible and engaged consumers into account. It also specific, measurable goals by reducing our environmental own market expansion plans and provide them with growth considers both short- and long-term trends linked to the impact through additional actions to preserve the climate, opportunities through the use of our products. It allows us to current coronavirus crisis. The strategy is based on three core water and forests. In terms of people, we are pursuing diversity, support innovation with partners including academic and growth drivers and four growth enablers. All are underpinned which drives innovation and creates closer ties with employees, research institutions, start-ups and technology providers. It by our focus on excellence, innovation and simplicity in customers and partners, as well as focusing on employee allows us to focus on our people, making sure that everyone everything we do. development. We will continue to implement programmes has the right skills and competencies to grow and feel welcome, that further support the health and wellbeing of our employees. valued and inspired. Economic strength helps us work with The core growth drivers involve expanding the portfolio, Finally, delivering sustainable value creation for all our suppliers to ensure the long-term availability of the most extending customer reach and focusing our market strategies. stakeholders includes the communities where we source and vulnerable raw materials; to source materials and services in a Having successfully integrated the 19 acquisitions made since operate. We are continuing to work with suppliers to source all way that protects people and the environment, and to increase 2014, we are concentrating on fully exploring the great materials and services sustainably, to increase supply chain transparency and visibility within supply chains. Finally, and as potential of the portfolio and leveraging our existing transparency and to support these communities. critically, solid economic performance allows us to strengthen capabilities and innovation pipeline. It puts us in a position to and improve the social, economic and environmental fabric of expand beyond the current portfolio of flavours and As the COVID-19 pandemic continued to have an impact on a the communities where we operate and source our raw fragrances, naturals and delivery systems further into global level, Givaudan sustained good business momentum materials by supporting local projects and charitable causes. nutrition, food ingredients and beauty. whilst maintaining its operations and global supply chain at a 28 Givaudan — 2021 GRI Sustainability Report