A year in review Economic / Governance Environment Social Appendix Climate change Scope 3 Regenerative agriculture Sustainable procurement is also driven by the Procurement Scope 3 emissions are those that come from the value chain Regenerative agriculture practices aim to regenerate soils, team, who looks to engage suppliers and foster supplier activities outside of our operations. We include a wide range increase biodiversity, optimise the water cycle and improve the innovation. Our dedicated programme “Connect to Win” of activities related to our business, from commuting to provision of ecosystem services. All of these aspects have a encompasses key sustainability aspects by scouting and business travel, transportation or waste treatment. The direct and indirect impact on farm carbon cycles. Specifically, identifying key suppliers who can be integrated into our biggest impact comes from the sourcing of goods and implementing regenerative agriculture practices allows us to innovation portfolio, helping us to reduce our carbon footprint, services, especially the production of raw materials. We drastically reduce carbon emissions in the whole agriculture among other goals. The programme falls under the procurement consider the direct impact of our own operations but also see supply chain and to improve carbon sequestration in soils to innovation pillar of our Global Procurement strategy. ourselves as responsible for all activities related to our potentially become climate positive. We partner with and business throughout our whole value chain. We therefore support local communities through a variety of social and Low-carbon creations pursue a range of activities with respect to scope 3 emissions environmental projects, including climate-related projects and Low-carbon creations are another approach to lowering our to help us reach our ambitions. An assessment of our overall working with farmers on regenerative agricultural practices. scope 3 emissions. Our Science and Technology and formulation carbon footprint shows that most impacts come from We have the unique opportunity to train farmers/smallholders teams consider GHG emission factors in how they design upstream activities, which are related to suppliers. on good and sustainable agriculture practices in order for them processes and formulations. We do this either by working on Collaboration with suppliers is therefore crucial to tackling to adapt to fast-changing weather patterns and their impact new technology for ingredient production (i.e., biotechnologies) reduction of our scope 3 emissions. on crop yield, drought and water management. It is beneficial or by selecting ingredients that are less carbon-intense by to Givaudan to support farmers/smallholders and these are nature. In this way, we innovate to create the ingredients of Sustainable procurement of ingredients long-term agreements with mutual benefits, helping us to the future. One of our main focus areas in our approach to decreasing secure the supply chain for our iconic substances. Our scope 3 emissions is the sustainable procurement of agronomic team is currently working on supply chain As an example, Givaudan’s Fragrance Compaction programme ingredients. There are many facets to this, including pursuing a prioritisation to select those where we can directly implement looks at ways to design more highly concentrated fragrances for zero-deforestation policy, targeting regenerative agriculture, regenerative practices and test their impacts. This regenerative all product categories. Using higher impact, higher value-added supporting renewable energy sources in the supply chain and approach is holistic by nature: it brings benefits in terms of ingredients to deliver fragrance performance allows us to offer an promoting supplier innovation. GHG reduction but also generates a positive impact on increased value proposition to customers while reducing biodiversity and on the livelihoods of stakeholders. emissions. Fragrance contribution is divided 34 times from Direct or indirect deforestation increases the amount of CO₂ in standard design, with a positive impact in every step – from RM the atmosphere by removing carbon sink and carbon ecosystems Renewable energy sources in the supply chain have a direct processing to manufacturing and distribution – where fragrance from the Earth’s surface. We expect our suppliers to avoid reduction impact on GHG emissions. We are collaborating is involved. Givaudan is well-positioned to take advantage of deforestation and land conversion for agriculture and ask them with our main suppliers to encourage them to increase their preferences for low-carbon products because of our responsible to commit to the “No Deforestation, No Peat, No Exploitation use of renewable electricity or fuels. This allows them to sourcing and sustainable innovation initiatives including reuse and (NDPE)” principles as part of our Responsible Sourcing Policy, reduce their scope 1 and 2 emissions and us to reduce scope 3. recovery of process side streams and waste. As our customers supporting us in our aim to source products that are As an example, in 2021 we benefited from a collaboration with become more environmentally aware, Givaudan has the deforestation and conversion free. Our involvement in standards a supplier who allocated 100% renewable electricity to the opportunity to differentiate itself from competition by staying such as the Roundtable on Sustainable Palm Oil (RSPO) helps us product we purchased. This led to a 5% reduction in CO₂e ahead in terms of eco-design and ensuring that our marketing to move our supply chain to deforestation-free sourcing. emissions for this product. and sales reflect the progress we make in eco-efficiency. 56 Givaudan — 2021 GRI Sustainability Report