A year in review Economic / Governance Environment Social Appendix Climate change For “other indirect materials and services,” emissions decreased We measure the success of our engagement with suppliers by 9% compared to 2015, representing a decrease of spend in through the CDP Supply Chain Programme via different key ULTIMO measures, this category. With a spend-based model on secondary data, it performance indicators (KPIs): is not yet possible to reflect specific supplier performances in monitors utilities this category. 1. Supplier response rate: In 2021, our supplier response rate consumption rose by 17% to 83% compared to 66% in 2020. This is in real time Supply chain an excellent outcome, considering that we also increased the Our ambition is to drive action through supply chain number of suppliers by 38 in 2021. engagement and to collaborate across the industry. The CDP The ULTIMO platform, installed at our Supply Chain Programme is one of the tools Givaudan uses to Below, points 2, 3 and 4 are a means of measuring how many Vernier site, measures and monitors the engage with suppliers on climate action and gain understanding suppliers are more advanced in their climate action journeys. consumption of utilities in real time, of its supply chain: all the data collected through the CDP These are the suppliers with whom we are working to find allowing operations to proactively address Supply Chain Programme contributes to this. collaborative measures or programmes, for example, anomalies and focus efficiency improving combining several orders into full container loads to reduce efforts with qualitative data. This has The level of the impact of engagement varies depending on the transport emissions, to reduce our common emissions. allowed our Distillation team to identify level of maturity of our suppliers in terms of climate action. Encouraging suppliers to cascade commitments in their own ways of reducing water consumption in With suppliers already leading and managing carbon-related supply chain is another key element of driving action. the cleaning process; another unit is using issues, we seek to create partnerships to put in place it to monitor temperatures while testing collaborative measures or programmes to reduce our common 2. Percentage of suppliers with a leadership (A or A-) or the idea of using heat blankets to keep emissions and cascade action further down the supply chain. management (B or B-) score: 51% of our responding suppliers, various products warm, a move that would For suppliers starting their climate action journey, we work compared with 29% last year. This is a significant gain and is reduce the heating load on the heating towards a shift in behaviour and provide support and guidance. the effect both of supplier improvement and an increase in room. An external company has used data This is aligned with and contributes to our delivering on our the number of suppliers involved. to conduct a Steam and Boiler insulation science-based target for scope 3 emissions. study to confirm insulation savings 3. Percentage of suppliers reporting active targets: 78% vs. 80% and energy reduction benefits. ULTIMO This year we went further and already engaged in last year. The decrease is due to the important increase in has allowed us to realise savings of collaborations regarding potential reductions with our most the number of suppliers involved and is not interpreted as a CHF 106,000 through Q3 2021 and will be advanced suppliers. The key topics are biosourced raw negative development. rolled out to our major production sites as materials, renewable energy in the supply chain and the part of our 2025 Strategy. valorisation of by-products (upcycling). These collaborations 4. Percentage of suppliers engaging their own suppliers: 82% take time to implement, and we will continue to collaborate vs. 66% last year. with our suppliers on these topics in the years to come. Givaudan’s leading work on climate change and water security has once again been recognised with a CDP double A rating. 59 Givaudan — 2021 GRI Sustainability Report