GRI Sustainability Report
2021 | 134 pages
2021 GRI SUSTAINABILITY REPORT
About this report Being a sustainable business is our promise, acting as a force for good is our This report has been prepared in accordance objective. In our thirteenth sustainability report, the twelfth in accordance with the GRI Standards: Core option. with the GRI framework, we show our performance and progress with respect Frameworks applied to Environment, Social and Governance (ESG)-related aspects. • GRI Standards • SASB Standards We report against our impacts in our identified material topics, which are • TCFD Recommendations • UN Global Compact rooted in our strategic approach for 2025 and contribute to our purpose of • Sustainable Development Goals ‘Creating for happier, healthier lives with love for nature. Let’s imagine together.’. GRI 101: Foundation We have taken into account all requirements and guidelines from GRI 101: Foundation in the preparation of our sustainability report, Our long-term ambition: Our purpose Our impacts and material topics especially GRI’s reporting principles for Creating for happier, healthier lives with love for nature. Economic/Governance defining report content and quality. Let’s imagine together. • Economic performance • Governance & business conduct / ethics / transparency Reporting principles for defining CREATIONS NATURE PEOPLE COMMUNITIES • Product / Ingredients environmental & social performance report content • Product quality & safety and ingredient disclosure • Stakeholder inclusiveness • Raw materials availability • Sustainability context • Innovation capabilities & management • Materiality Our mid-term priorities: Our 2025 strategy • Completeness Committed to Growth, with Purpose Environment • Biodiversity Reporting principles for defining 4 – 5% PURPOSE • Climate change report quality GROWTH LINKED > 12% FCF • Waste management & circular principles • Accuracy TARGETS • Water stewardship • Balance • Clarity Social • Comparability • Diversity, inclusion & people development • Reliability • Employee safety, health & wellbeing • Timeliness • Consumer health & wellbeing • Human rights • Responsible sourcing & traceability • Local community development 1 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Table of contents A year in review Environment Appendix 4 Letters to stakeholders 49 Our ambitions 117 The principles of the UN Global Compact 5 Conversation with our new Head of B Corp 50 Givaudan’s environmental footprint 118 The Sustainable Development Goals 6 Our impact in 2021 51 Climate change 120 GRI Content Index 7 Our purpose is at the heart of everything we do 63 Waste management & circular principles 128 TCFD Recommendations 8 ESG fully integrated in our business 68 Water stewardship 129 SASB Standards mapping 9 Our sustainability journey 75 Biodiversity 130 Independent assurance statement 10 How ingredients help us protect the environment 78 Environmental performance indicators 132 Our reporting suite and care for communities 11 Stakeholder engagement 14 Material topics Social 18 Key partnerships 86 Our ambitions 87 Diversity, inclusion & people development Economic / Governance 93 Employee safety, health & wellbeing 101 Consumer health & wellbeing 27 Our ambitions 104 Human rights 28 Economic performance 108 Responsible sourcing & traceability 31 Governance & business conduct / 113 Local community development ethics / transparency 38 Product / Ingredients environmental & social performance 40 Product quality & safety and ingredient disclosure 42 Innovation capabilities & management References used References to other pages in this report, other reports, documents or our websites for more information Link to a website 2 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix A YEAR IN REVIEW In this section 4 Letters to stakeholders 5 Conversation with our new Head of B Corp 6 Our impact in 2021 7 Our purpose is at the heart of everything we do 8 ESG fully integrated in our business 9 Our sustainability journey 10 How ingredients help us protect the environment and care for communities 11 Stakeholder engagement 14 Material topics 18 Key partnerships 3 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Letters to stakeholders Our purpose and It is through our Governance issues are fully integrated ambitious goals in the purpose and strategy into our 5-year strategy and therefore domains of creations, that we address our business – we are committed to growth, with purpose. We also continue nature, people and Environment, Social and to express our support for the ten communities underpin Governance (ESG) issues, principles of the UN Global Compact with respect to human rights, labour, our B Corp certification fully integrating them environment and anti-corruption. These journey. into our business. commitments allow us to pursue Calvin Grieder, Chairman Gilles Andrier, CEO ambitious financial targets through the creation of inspiring products for happier, healthier lives, all while moving Living our purpose through the associated Our company purpose of ‘creating for towards our longer-term purpose bold, ambitious goals allows us to continue happier, healthier lives with love for ambitions in terms of creations, nature, being a successful, sustainable business. We nature’ drives our 2025 strategy and people and communities. They allow us are committed to being a company that acts acts as a roadmap for delivering to increase our positive impact on as a force for good and to living our purpose sustainable value creation for all society and the planet in order to ensure in our actions every day. This will allow us to stakeholders. Environment, Social and sustainable long-term performance. pursue sustainable value creation for all stakeholders, ensure that we act on our purpose goals and successfully balance people, the planet and profit. Our purpose and goals also support our quest Sustainability is not a We are proud of our track record of ESG performance. As the world to become a certified journey we can undertake faces urgent societal and environmental challenges, we must B Corporation, the gold continue to work together to accelerate action; through teamwork, standard for responsible alone. Collaboration and through pioneering initiatives and through continued collaboration businesses and a designation teamwork are vital to achieving with our partners. In 2021 we joined the Renewable Carbon that will serve as our highly ambitious targets. Initiative as an Advisory board member, and we became a member independently verified proof of Together for Sustainability. We launched our flagship of our commitment. We are Willem Mutsaerts, Head of Global Sourcing4Good programme; a vital part of delivering on our proud to be the first in our Procurement and Sustainability ambition to responsibly source all materials and services in a way industry and one of the that protects people and the planet by 2030. Our high-performing largest businesses to commit READ MORE team has been recognised with a World Sustainability Award. These to this journey. 2021 Integrated Annual Report ▸page 10 ▸ Chairman’s introduction efforts and achievements reflect our bold ambitions, show how far we have come and demonstrate our commitment to continuing to 2021 Integrated Annual Report ▸page 12 ▸CEO interview be a successful, sustainable business. 4 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Conversation with our new Head of B Corp WM Going after B Corp certification shows that we’re that will be assessed through the Business Impact Assessment. About B Corp leading the way in reshaping how business is done. We’ve It will also be looking at the areas of Governance, Community, B Corp certification will measure Givaudan’s entire already done quite a bit of work in many critical areas, but Workers and Customers. social and environmental performance and provide what do you see as the next steps in our certification journey? independent verification. We have committed to the AS B Corp certification is awarded by an independent WM Those five areas have been integral to our sustainability B Corp Declaration of Interdependence and we are a non-profit, B Lab, who will work with us, guiding us through work for some time. We’re accelerating our progress and founding member of the B Movement Builders. the process. The first few months will serve to prepare for looking to maximise our impact by integrating all of this work the assessment and define our certification roadmap. All of into our purpose ambitions. Things are speeding up. How long our business will undergo comprehensive assessments in the will it take to achieve B Corp certification? Willem Mutsaerts Our efforts to increase sustainable areas of workers, customer stewardship, communities, AS This won’t be a quick process. We’re one of the largest sourcing, our passion for innovation and our deep concern environment and governance – there is a minimum score B2B organisations to undertake B Corp certification and we for the environment have driven Givaudan’s success for a required to certify. On completing the assessment, can’t put a timeframe on our journey right now. We’ll long time. Now, the climate crisis has shown that we all companies must meet specific transparency, reporting and measure our success by the achievement of certification need to step up our efforts and work together to build governance requirements and pass final background checks. rather than how quickly we get there. As we strive for inclusive, equitable societies and sustainable economies excellence in everything we that benefit all of humankind. You’re going to be a lead WM Climate change is a critical challenge for society. do, our journey towards figure in helping us along this path to become a certified We’re looking to contribute positively with our new B Corp certification will B Corporation. How do you see your role? #climatepositivity campaign: we think that optimism help us live up to the Anna Segura First of all, I’m really excited to be heading up about what’s possible for our future is hugely important. highest standards of Givaudan’s B Corp certification journey. It’s true that I’ll be What are the climate requirements linked to the B Corp being a responsible and leading us along the path to certification process? sustainable business. certification, but all of us have a AS Our climate positive goal, and interim targets, aligned role to play. I see our journey with science-based targets, as well as our management towards B Corp certification approach towards achieving those targets are areas that will as a truly collective effort. be assessed as part of the B Corp certification process. Our We’ll work together as ongoing reporting already provides a transparent view of colleagues, but also with progress towards these targets and this is very much in line our customers, partners with the B Corp certification requirements. We do have to and suppliers to realise remember though that Environment is just one of the areas this ambition and use our business as a force for good in the world. 5 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Our impact in 2021 Renewable L Women in senior / Sales T 84%electricity A 26%management 7.1% growth LFL² N C CE I GHG emissions CI Average base salary difference N CHF Sales ME –31% scope 1 + 2 since 2015 O 1.4% between men and women¹ A million6﹐684 N –4% GHG emissions S –22% Reduction of recordable 12.6% Free cash flow O scope 3 since 2015 injury rate since 2018 RN as % of sales R ONOM E I 82%Production sites >16﹐800Employees C V 20%non-financial targets V registered on Sedex E in Performance Share N O Plan compensation E G 1. Results for the Givaudan Group globally 2. L ike-for-like excludes the impact of for equivalent roles and skill sets. currency, acquisitions and disposals. Our solid track-record of ESG ratings FTSE4Good Index Series Double ‘A rating’ CDP leader board Awarded the EcoVadis Rated as ‘low-risk’ Ranked in the top 2% Included in SXI Since 2017 for climate and recognition for Gold medal, ranking us in 2021 with a score in the FTSE4Good Swiss Sustainability Givaudan has been water for three supplier engagement in the top 5% out of of 19.1 and a chemicals Index Series, among 25 Index rated AAA by MSCI consecutive years 75,000 businesses industry ranking our peers ESG RATINGS 13 out of 480 6 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Our purpose is at the heart of everything we do Our guiding star to drive Creating for happier, sustainable growth healthier lives with love We have translated our purpose into four focus areas that Creations for nature Communities set out specific, measurable ambitions that allow us to Let’s imagine together Let’s imagine Let’s imagine gauge our progress over time. They also support the ten with our customers that together together that all United Nations Sustainable Development Goals where we through our creations communities can deliver the greatest impact. more people will enjoy benefit by working happier, healthier lives. with Givaudan. Our B Corp certification will be the independently verified proof that we are living this purpose every day. Nature People Let’s imagine together that Let’s imagine together that we show our love for nature Givaudan is a place where we in everything we do. all love to be and grow. Working to Living our purpose become a through the associated bold, ambitious goals allows us to continue being a successful, sustainable business. Working towards sustainable development Calvin Grieder, Chairman 7 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix ESG fully integrated in our business Committed to Growth, 2025 Strategy with Purpose As a purpose-led company, we can go even further to Creations Nature make our world a happier and healthier place. Our E S G E G purpose, a guiding star in our 2025 strategy, leads the way to increasing our positive impact on society and the planet We create inspiring solutions We show our love for nature in order to ensure our sustainable long-term performance. for happier, healthier lives through impactful actions It is our intention to deliver growth through the creation Growing of inspiring products for happier, healthier lives while together with achieving our ambitious financial targets and longer-term People our customers Communities purpose ambitions. S G E S G We nurture a place where We bring benefits to all we all love to be and grow communities that work with us It is through our purpose Excellence, innovation, simplicity in everything we do and strategy that we address 4 – 5% GROWTH PURPOSED LINKED TARGETS > 12% FCF Environment, Social and Governance issues. Gilles Andrier, CEO Environment Social Governance 8 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Our 2021 sustainability Givaudan introduces the new journey 2020 Sourcing4Good programme Givaudan announces Givaudan publishes its 2019 its 2025 strategy Human Rights policy “Committed to New approach to growth, with Givaudan joins Together 2017 shaping a sustainable Purpose” for Sustainability (TfS) future through the New approach to newly defined purpose Givaudan sets the Givaudan engaged as advisory sustainability “A Sense “Creating for happier, ambition to become board members in the of Tomorrow” healthier lives with B Corp, the gold Renewable Carbon Initiative introduced love for nature” standard for good business Givaudan includes Commitment to GHG Givaudan aligns target TCFD recommendations emissions target in line to 1.5°C and signs the with Science Based UN’s Business Givaudan includes 2015 Targets Initiative Ambition for 1.5°C, SASB standards mapping reinforcing our Givaudan commits to Givaudan commits commitment to RE100 and to set a to contribute to the become climate- 2010 Science Based Target UN’s Sustainable positive before 2050 Development Goals Support for UN Global Compact pronounced Working to become a 9 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix How ingredients help us protect the environment and care for communities THANKS TO We build infrastructure THANKS TO We research THANKS TO We help and provide access to preservation and communities VETIVER water and electricity LAVENDER resilience to climate SANDAL- preserve the in Haiti change in France environment WOOD in Australia We preserve THANKS TO We reduce our THANKS TO Distillation units THANKS TO 150,000 hectares impact on the are energy-efficient; of Amazonian TONKA environment VANILLA pickers receive YLANG- Rainforest BEANS and have planted and CLOVE education YLANG in Venezuela 700,000 trees in Comoros in Madagascar LEAF OIL We are partnering THANKS TO We build THANKS TO We train farmers THANKS TO to implement the schools and help their SOURCING4GOOD BENZOIN in Laos PATCHOULI businesses grow JASMIN programme and in Sulawesi FLOWER auditing our floral ingredients supply chain in India 10 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Stakeholder engagement Disclosure 102 – 40, 102 – 44 List of stakeholder groups and key topics and concerns raised The engagement channels as well as key topics and concerns raised per stakeholder group are listed in the diagram below. Stakeholder dialogue Why we engage How we engage Key topics & concerns discussed Customers • Customer sustainability requests • Climate change Strong engagement with our customers enables us • Audits • Consumer health & wellbeing to understand their needs and anticipate market trends. • Customer innovation days • Governance & business conduct / ethics / transparency Through preference discovery platforms and consumer • Customer and industry conferences and events • Human rights insight programmes we are able to understand and • Key account manager relationships – ongoing dialogue • Innovation capabilities & management anticipate consumer preferences and adapt to cultural tastes. • Use of consumer insight programmes for consumer • Product / ingredient environmental & social performance understanding, cultural insights and sensorial decoding • Product quality & safety and ingredient disclosure • Leveraging digital capabilities to enhance insights in • Responsible sourcing & traceability consumer trends Suppliers • Assessments • Climate change Our suppliers are genuine partners, and we work with them • Supplier audits • Human rights towards mutual value creation: open dialogue secures a • Collaborations to improve performance • Innovation capabilities & management pipeline of technological innovation through supplier enabled • Multi-stakeholder groups • Raw material availability innovation; supplier engagement and collaboration ensure • Supplier events: capacity building, discussing issues • Responsible sourcing and traceability our suppliers have high standards in business ethics and • Direct engagement with supplier relationship managers respect for people and the environment. Employees • Works Council consultations • Climate change We engage with our people to foster an environment of open • Employee engagement surveys • Diversity, inclusion & people development dialogue to mutually resolve conflicts, to identify development • Annual performance dialogue • Employee health & safety & wellness initiatives and innovative ideas that will help drive our • Talent management processes • Governance & business conduct / ethics / transparency business. We cannot achieve our goals without a true sense • Learning and development opportunities • Human rights of unity and a workplace where we all love to be and grow. • On-going dialogue with Givaudan Green Teams • Innovation capabilities & management • Imagine – employee community management platform 11 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Stakeholder engagement Why we engage How we engage Key topics & concerns discussed Investors and shareholders • Annual General Meeting • Climate change Our active dialogue with the capital market ensures • Annual investor conferences and investor • Diversity, inclusion & people development transparency and helps us improve our reporting road shows • Economic performance practices. Our relationship with debt investors, banks and • Briefings with analysts • Environmental, Social & Governance credit rating agencies ensures we have funding for • Conferences with investors and other • Governance & business conduct / ethics / transparency investment opportunities. financial stakeholders • Innovation capabilities & management • Raw material availability Local communities • Community development programme survey • Biodiversity Open dialogue fosters good relations and enables us to work • Local site community engagement programme • Climate change together with communities and neighbourhoods on projects • Ongoing dialogue with local authorities and • Diversity, Inclusion & People Development and causes that benefit local communities, help protect local community organisations • Governance & Business Conduct / ethics / transparency ecosystems and support livelihoods. • Employees engaged in social activities within the • Human rights communities in which we operate • Local community development • Givaudan Foundation • Product / Ingredient Environmental & Social Performance • Local partners (NGOs or cooperatives) acting • Responsible Sourcing & Traceability as Givaudan agents Public & regulatory agencies Amongst those we engage with: • Climate change Engagement and collective action with external partners • United Nations Global • B Lab and • ESG topics (Environmental, Social & Governance) are essential in order to inspire and lead by example as a compact B Movement Builders • Governance & business conduct / ethics / transparency responsible business. Only collective action can influence • International Fragrance • CDP • Human rights decisions. We engage with local governments and regulators Association (IFRA) • Ecovadis • Product / ingredient environmental & social performance to understand the changes, their concerns and find mutually • International Organization • Renewable Carbon Initiative • Product quality & safety and ingredient disclosure beneficial solutions. of the Flavor Industry (IOFI) (RCI) • Responsible Sourcing & Traceability • WBCSD • Together for • AIM-PROGRESS Sustainability (TfS) Innovators and partners • Global network of accelerators and incubators • Climate change We engage in innovative partnerships to go beyond our own • Partnerships with innovators, accelerators • Consumer health and wellbeing internal capabilities and seek out the extended possibilities and with academia • Innovation capabilities & management and opportunities that collaboration can bring. This allows us • Plugged into disruptive and digital trends • Product / ingredient environmental & social performance to access the latest trends in innovation, to extend our • Co-creation and co-innovation opportunities • Product quality & safety and ingredient disclosure innovation ecosystem to the global level and to accelerate our efforts in this domain. 12 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Stakeholder engagement Disclosure 102 – 42 size of groups; impact on our sustainability approach; risks Identifying and selecting stakeholders and benefits. Based on the outcome, we decide whether to Working systematically with interested parties and evaluating pursue a current engagement or seek opportunities with new their perspectives on economic, social, environmental, ethical organisations. We then suggest actions to be taken within the and governance issues helps us strengthen dialogue. It allows engagement for the next three years. us to better address their concerns and manage the direct or indirect impact on Givaudan. This approach can be used as a Disclosure 102 – 43 strategic management tool, it helps build stronger and lasting Approach to stakeholder engagement relationships with key stakeholders, allows us to manage our Listening to our stakeholders is a core element of our business successfully and also lays out the basis for our sustainability management practice. Their feedback helps us materiality assessment. understand expectations and it contributes to the development of our overall sustainability approach. We gather the views of When we set out to develop a materiality matrix in 2011, we our stakeholders by inviting them to discuss critical issues and carried out a wide-ranging assessment of our stakeholders to strategic priorities. We create dialogue groups to understand determine who had the greatest impact on us and on whom how our business affects stakeholders and to determine the we had the most effect. We identified seven key stakeholder most material impacts to be managed. groups from a list of more than 200 organisations: customers, suppliers, owners and investors, public and regulatory agencies, The sustainability aspects listed in the Givaudan materiality local communities, employees and innovators and partners. matrix are presented to stakeholders to allow them to confirm which they see as the most important topics, and which they Givaudan has developed specific tools to support interaction would like to discuss or know more about. The process gives with the various stakeholder panels at both global and local stakeholders a genuine role in setting the direction of our levels. We also review and evaluate diverse stakeholder sustainability approach and prioritising the issues. engagement initiatives existing across the Company and continuously monitor their relevance in a two-stage process. Ultimately, through stakeholder dialogue, we seek to identify opportunities to improve management and our relationships, First, we map each direct engagement with an external as well as create projects for our mutual benefit. This allows organisation by considering its relevance to several areas us to focus our drive for greater sustainability in those areas including our stakeholder groups; the key issues in our that are most important to our key stakeholders. Givaudan materiality matrix; our initiatives in sourcing, innovation and has many channels for stakeholder dialogue spread across environment, and the Sustainable Development Goals on different departments and teams; this also includes the which we have an impact. Then we look at every current or information and feedback we receive during the ordinary potential external engagement and assess it against several course of business. criteria: local or global engagement; membership criteria and membership fees; participating customers and suppliers; participating competitors; participant profiles; type of sessions; 13 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Material topics Disclosure 102 – 46 substantial influence on the decisions of our stakeholder Defining report content and topic boundaries groups or that represent Givaudan’s significant economic, Our materiality assessment helps us to align our business environmental and/or social impacts. Our last comprehensive with the expectations of our stakeholders and with society in materiality assessment including external stakeholder general. Our materiality assessment process aims to identify interviews was done in 2019. In 2020, we internally reviewed and prioritise the issues of the greatest material importance; our list of material topics to make sure it is consistent with it is also the basis for defining our GRI reporting content and our newly defined Purpose, our Strategy 2025 and our analysis the boundaries of the topics. The process follows the of risk categories. principles of stakeholder inclusiveness, environmental and social context, materiality and completeness according to the In 2021, we refreshed our materiality assessment with the GRI Standards. help of a third-party expert. Starting from desk research, a review of peers, ESG reporting frameworks, internal reviews Materiality assessment with selected Givaudan leaders as well as ratings and trend Our activities have an impact that goes far beyond economic reports (e.g., GRI Standards, SASB Standards, MSCI ESG results. To be successful in the long run, we need to align our Rating, Dow Jones Sustainability Index), we developed an business performance with the expectations of our stakeholders initial long list of material topics that might be relevant to our and with society in general. To achieve this goal, a deep stakeholders. We then reduced this to a short list by assessing understanding of the most relevant topics for the different the importance of each and clustering overlapping material groups of stakeholders is essential. topics. We also excluded purely financial and operational issues, as well as hygiene factors, as we expect these topics to Our first materiality assessment was undertaken in 2011 in line be actively managed to such an extent that they do not with the GRI framework to strengthen our commitment to require explicit inclusion. dialogue, and to support our assumptions and identify the most important topics for our sustainability reporting content. We use These short list topics were assessed for their importance, taking the Givaudan materiality assessment to prioritise aspects potential impacts, risks and opportunities as well as the identified as being of most concern to our customers and other significance for Givaudan’s business into account. The topics key stakeholders. The matrix is reviewed through discussion were then discussed and ranked in detail through internal with the main stakeholders, and we aim to conduct a workshops with selected Givaudan leaders, who both brought in comprehensive assessment of surveys and interviews on a the perspectives of key stakeholders and evaluated the potential regular basis. We address critical issues and strategic priorities, environmental and social impact of Givaudan’s business on each look for opportunities to improve management and topic. The result of this exercise was validated by our Executive relationships, and identify possible projects to work on together. Committee and is reflected in our list of 15 topics. We are planning to update our assessment using direct inputs from In the middle of each business strategic cycle, we conduct a external stakeholders over the next two years. review to acquire meaningful information about changes and emerging topics. Our material topics are those that have a 14 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Material topics Disclosure 102 – 47 Material topics Our list of material topics is mapped against the GRI Standards Development Goals (SDGs) to show that they are fully consistent topics, our purpose pillars, the United Nations Global Compact with the most commonly used sustainability frameworks. The (UNGC) Principles and the United Nations’ Sustainable list of all material aspects identified in this process is as follows: Materiality topic Equivalent GRI topic Purpose pillar* UNGC Principles SDGs mapping Biodiversity GRI 304: Biodiversity Principle 8 Climate change GRI 201 – 2: Financial implications and other risks and opportunities due to climate change Principle 7, 8, 9 GRI 301: Materials GRI 302: Energy GRI 305: Emissions Consumer health & GRI 416: Customer health and safety wellbeing Diversity, inclusion & GRI 102 – 8: Information on employees and other workers Principle 6 people development GRI 202: Market presence GRI 401: Employment GRI 404: Training and education GRI 405: Diversity and equal opportunity GRI 406: Non-discrimination Economic performance GRI 201: Economic performance Employee safety, GRI 403: Occupational health and safety health & wellbeing Governance & business GRI 102 – 11: Precautionary Principle or approach Principle 10 conduct / ethics / GRI 102 – 16: Values, principles, standards, and norms of behaviour transparency GRI 102 – 17: Mechanisms for advice and concerns about ethics GRI 102 – 18: Governance structure GRI 205: Anti-corruption * Creations Nature People Communities 15 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Material topics Materiality topic Equivalent GRI topic Purpose pillar* UNGC Principles SDGs mapping Human rights GRI 102 – 41: Collective bargaining agreements Principle 1, 2, 3, 4, 5 GRI 402: Labour/management relations GRI 407: Freedom of association and collective bargaining GRI 408: Child labour GRI 409: Forced or compulsory labour GRI 412: Human rights assessment GRI 414: Supplier social assessment Innovation capabilities & Principle 8, 9 management Local community GRI 203: Indirect economic impacts Principle 1 development GRI 413: Local communities Product / ingredients GRI 301: Materials Principle 7, 8, 9 environmental & social GRI 302: Energy performance GRI 305: Emissions GRI 416: Customer health and safety Product quality & safety GRI 416: Customer health and safety and ingredient disclosure GRI 417: Marketing and labelling Raw materials availability GRI 301: Materials Responsible sourcing & GRI 102 – 9: Supply chain Principle traceability GRI 204: Procurement practices 1, 2, 4, 8, 10 GRI 308: Supplier environmental assessment GRI 407: Freedom of association and collective bargaining GRI 408: Child labour GRI 409: Forced or compulsory labour GRI 412: Human rights assessment GRI 414: Supplier social assessment * Creations Nature People Communities 16 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Material topics Materiality topic Equivalent GRI topic Purpose pillar* UNGC Principles SDGs mapping Waste management & GRI 306: Waste Principle 8 circular principles Water stewardship GRI 303: Water and effluents Principle 8 Even though purely financial issues have been excluded in our materiality * Creations Nature People Communities update, we still report on the topic “Economic performance”, which we consider fundamental to our social licence to operate and to our efforts to be a good corporate citizen, by using GRI 201: Economic Performance. Disclosure 102 – 49 Changes in boundaries Changes in reporting A detailed overview of the sites in GRI scope for environmental, Changes in material topics health and safety data can be found in the 2021 Integrated We reduced the list of material topics to 15 from 24 following Annual Report. our 2021 materiality assessment update. Previous content is still included, but it has been better clustered and tailored to READ MORE Givaudan’s context. The material topic definitions have also 2021 Integrated Annual Report ▸ pages 152–159 ▸ Givaudan sites worldwide been clarified. The report’s chapters now directly follow our material topics, Disclosure 102 – 50 with GRI 103 used for each Management Approach. We feel that Reporting period this will better reflect Givaudan’s material topics in the reporting, The reporting period covers the full year 2021 which includes avoid duplications in content and facilitate reader understanding. employee numbers and safety data. Environmental data GRI topic-specific disclosures are integrated into the relevant concerns 12 months, the fourth quarter of 2020 through the material topic chapters. Even though it is no longer explicitly third quarter of 2021, which is now the regular reporting mentioned in our list of material topics, we continue to report period for environmental data for the reporting cycles. This on Economic performance. We consider this fundamental to our enables the publication of the reporting suite with full data social license to operate and to our efforts to be a good assurance process. corporate citizen. Our list of material topics is included in both our Integrated Report and in our Sustainability GRI Index. 17 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Key partnerships Disclosure 102 – 12 Commitments / Reporting External initiatives Calls to action How we communicate about our progress We engage in numerous external initiatives and strategic What we want to achieve collaborations with relevant organisations and partners to support and inform our work on the most material sustainability issues. Collaboration across our supply chain as well as with other businesses and non-profit organisations is essential; the more we do together, the quicker we drive sustainable solutions. This chapter details some external initiatives and some of the most relevant strategic partners: it is not meant to be exhaustive. CEO WATER United Nations Global Compact (UNGC) MANDATE What it is The United Nations Global Compact (UNGC) is a strategic policy initiative for businesses committed to aligning their Working operations and strategies with 10 universally accepted to become a principles in the areas of human rights, labour, environment and anti-corruption. Memberships and Assessments / Why we engage collaborations Ratings The UNGC looks to drive business awareness and action in support of achieving the Sustainable Development Goals by 2030. With whom we partner to achieve our commitments External evaluation of our performance How we engage We have been a signatory since February 2010, and we measure our progress towards sustainability against its principles. Our GRI reporting also serves as communication on progress towards the implementation of these principles and to achieving our sustainability targets. We are also involved with the UNGC Swiss Network, allowing us to participate in conferences and share best practices with other members. www.unglobalcompact.org 18 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Key partnerships UN CEO Water Mandate How we engage MSCI Index What it is Givaudan discloses its climate change and water security What it is The CEO Water Mandate mobilises a critical mass of business impacts through CDP. This year, Givaudan has once again MSCI is a leading provider of critical decision support tools and leaders to address global water challenges through corporate been recognised for the third year in a row with a CDP double services for the global investment community. With more than water stewardship, in partnership with the United Nations, A rating. 50 years of expertise in research, data and technology, MSCI governments, civil society organisations, and other stakeholders. powers investment decisions by enabling clients to understand READ MORE and analyse key drivers of risk and return and confidently build Why we engage www.givaudan.com ▸ Media ▸ Media releases ▸ 2022 ▸ Givaudan recognised more effective portfolios. Givaudan has been working on ambitious targets on water and will with CDP double A rating continue to do so. Water stewardship is an important part of our Our CDP questionnaires are found on givaudan.com ▸ investors ▸ ESG ▸ MSCI ESG Ratings aim to measure a company’s resilience to CDP report on climate change and CDP report on water security purpose goal of showing our love for nature in everything we do. www.cdp.net long-term ESG risks. Companies are scored on an industry- relative AAA-CCC scale across the most relevant key issues How we engage based on a company’s business model. Givaudan endorsed the CEO Water Mandate in March 2020. WBA (World Benchmarking Alliance) ceowatermandate.org What it is Why we engage WBA is a multi-stakeholder alliance that developed a series of With our purpose at the core of our business, we recognise the benchmarks to assess 2,000 of the world’s most influential value of external feedback. This is why we appreciate every CDP companies based on seven transformations that need to take opportunity to be measured and rated by independent agencies What it is place to put society and the worldwide economy on a more and other organisations. We believe that it is an excellent way CDP is a global non-profit that runs the world’s leading sustainable path to achieve the SDGs. to learn and to develop further to strengthen our long-term environmental disclosure platform. CDP drives companies and commitment to being a successful, sustainable business. governments to reduce their greenhouse gas emissions, Why we engage safeguard water resources and protect forests. We recognise the urgent need to transform the food system to How we engage avoid severe environmental and human risks for all people, our In 2021, Givaudan was rated as a leader in managing ESG Why we engage planet and business. Our purpose commitments across related risk and in capitalising ESG related opportunities in its Over 13,000 companies with more than 64% of global market Creations, Nature, Communities and People contribute to this industry. Givaudan was recognised with an overall AAA rating capitalisation disclosed environmental data through CDP in transformation. by MSCI for the fifth time in a row. 2021. This represents 35% more than last year and the number www.msci.com/our-solutions/esg-investing/esg-ratings has more than doubled since the Paris Agreement was signed in How we engage 2015. CDP’s questionnaires are fully aligned with the Givaudan participated to the WBA Food and Agriculture recommendations of the TCFD. Benchmark, which was published in September 2021 and assessed Science Based Targets initiative (SBTi) 350 of the world’s biggest food and agriculture companies. What it is www.worldbenchmarkingalliance.org The Science Based Targets initiative defines and promotes best practice in science-based target (SBT) setting, offers resources and guidance to reduce barriers to adoption, and independently assesses and approves companies’ targets. It is a collaboration 19 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Key partnerships between CDP, World Resources Institute (WRI), the World including the OECD guidelines for multinational organisations; EcoVadis Wide Fund for Nature (WWF), and the United Nations Global ISO 26000; the United Nations Guiding Principles on Business What it is Compact (UNGC). It is also one of the We Mean Business and Human Rights: Implementing the United Nations ‘Protect, EcoVadis provides a holistic sustainability ratings service for Coalition commitments. Respect and Remedy’ Framework; the UNGC’s Ten Principles companies, delivered via a global cloud-based SaaS platform. The and the United Nations’ Sustainable Development Goals. EcoVadis assessment evaluates how well a company has integrated Why we engage the principles of CSR into its business and management systems. It Givaudan has long recognised the urgency of the climate How we engage examines categories including environment, labour and human challenge and the natural next step was to confirm our alignment We have used the GRI frameworks, the leading and most widely rights, ethics and sustainable procurement and assesses the with the SBTi’s approved 1.5°C trajectory, the minimum required adopted global frameworks for sustainability reporting, since performance of companies across multiple sectors. to mitigate the most damaging effects of climate change. 2010. We have applied the GRI Standards, the newest evolution of the GRI frameworks, since the reporting period 2017. Why we engage How we engage www.globalreporting.org As we strive to be a force for good, our teams continue to work We sought and gained validation from the SBTi of our target to hard to achieve our ambitious sustainability and purpose goals. reduce absolute scope 1 and 2 GHG emissions by 70% between EcoVadis is a stringent, independent assessment of this work. 2015 and 2030 as being consistent with levels required to meet Sedex (Supplier Ethical Data EXchange) the goals of the Paris Agreement. The Company’s value chain What it is How we engage emission target (scope 3), aiming for a reduction of 20% over Sedex is a not-for-profit membership organisation dedicated to Givaudan has completed the EcoVadis CSR assessment every the same period, also meets the SBTi’s criteria. This is in line driving improvements in responsible and ethical business year since 2008 and has been recognised for its leadership for with what the latest science considers necessary to meet the practices in global supply chains. the past six years. Givaudan was ranked in the top 5% of the goals of the Paris Agreement (from the publication of the EcoVadis Corporate Social Responsibility (CSR) assessment in Intergovernmental Panel on Climate Change (IPCC) 2018 Why we engage 2021, achieving the gold medal. Special Report on Global Warming of 1.5°C.) Givaudan engages with Sedex to better assess both its www.ecovadis.com sciencebasedtargets.org production sites and suppliers in terms of responsible and ethical business practices. RE100 The Global Reporting Initiative How we engage What it is What it is We register our production sites with Sedex as part of an RE100 is an initiative uniting more than 100 influential The Global Reporting Initiative (GRI) helps organisations be ongoing process related to acquisitions and the opening of new businesses committed to 100% renewable electricity and to transparent and take responsibility for their impacts to create a production sites. We are committed to starting the registration working to increase demand for and the delivery of renewable sustainable future. GRI creates the global common language for process soon after an acquisition has been announced or a new energy. It is organised by The Climate Group, an international organisations to report their impacts, enabling informed dialogue facility has been commissioned to ensure high standards. non-profit organisation, in partnership with CDP (see above). and decision making. Givaudan has been an active user of the Sedex platform since 2008 and reviews and updates the SAQ every year. Why we engage Why we engage www.sedexglobal.com RE100 shares the compelling business case for renewables GRI Standards allow for better comparability, greater with factors such as greater control over energy costs, transparency and accountability and align with other standards increased competitiveness, and delivery on emissions goals. It 20 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Key partnerships also highlights business action on renewables and encourages Our involvement Our involvement supplier engagement while working to address barriers to Following an independent review earlier in 2021, Givaudan has Givaudan was included on this list. companies reaping the benefits of turning to 100% renewable been included for the sixth consecutive year in the globally- www.six-group.com electricity. Our RE100 commitment is an important part of recognised FTSE4Good Index Series. The inclusion recognises our ambition to become climate positive before 2050. realised achievements as well as ambitious purpose and sustainability commitments. Givaudan ranked in the top 2% of B Corp Certification ambition How we engage performers among its peer group in the FTSE4Good Index Series. What it is As part of its ‘Road to Paris’ commitments in 2015, Givaudan www.ftse4good.com B Corp certification recognises organisations who meet the committed to procuring 100% electricity from renewable highest verified standards of social and environmental sources by 2025, in line with RE100 membership. In 2021, we performance, public transparency, and legal accountability and reached 84% of purchased renewable electricity. Sustainalytics who balance profit and purpose. there100.org What it is Sustainalytics is the leading independent global provider of ESG Why we engage and corporate governance research and ratings to investors. Becoming a B Corp will put us at the heart of a global FTSE4Good movement of organisations leading the way in reshaping the What it is Our inclusion future of business. The B Corp movement is an excellent Created by the global index and data provider FTSE Russell, the Givaudan was rated as ‘low-risk’ in 2021 with a score of 19.1 example of what can be achieved when businesses come FTSE4Good Index Series measures the performance of and a chemicals industry ranking 13 out of 480. together for the greater good. Our journey towards B Corp companies demonstrating strong Environmental, Social and certification will help us to live up to the highest standards of Governance (ESG) practices. These indexes are used by a wide Our involvement being a responsible and sustainable business. variety of market participants to create and assess responsible Inclusion in the rating. investment funds and other products. FTSE Russell evaluations www.sustainalytics.com How we engage are based on performance in areas such as Corporate We are pursuing B Corp certification. Our qualification will Governance, Health & Safety, Anti-Corruption and Climate stand as independently verified proof that we are acting on Change. Businesses included in the FTSE4Good Index Series SXI Switzerland Sustainability 25 Index our purpose goals and successfully balancing people, planet meet a variety of environmental, social and governance criteria. What it is and profit. The SXI Switzerland Sustainability 25 Index® includes 25 stocks bcorporation.net Our inclusion from the SMI® Expanded Index with the best sustainability scores. Being included in the FTSE4Good Index Series shows that we have delivered strong performance in five areas that are critical Our inclusion Business for Nature to promoting sustainability. We must show that we are working The Annual Review process involves selecting eligible What it is towards environmental sustainability; developing positive companies made up of SMI Expanded index companies that Business for Nature is a global coalition bringing together relationships with stakeholders; upholding and supporting are not subject to the exclusionary criteria according to influential organisations and forward-thinking businesses. universal human rights; ensuring labour standards and working Sustainalytics’ research. The top 25 companies in terms of the The coalition demonstrates business action and amplifies a against bribery. Companies must also be in the FTSE All-Share highest sustainability scores are selected to compose the SXI powerful business voice calling for governments to adopt Index (UK) or the FTSE Developed Index (Global). Switzerland Sustainability 25 Index®. policies to reverse nature loss in this decade. 21 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Key partnerships How we engage How we engage Why we engage The coalition’s aim ties closely to our purpose goal of showing We actively participate across WBCSD initiatives, helping to We have been an active member of AIM-PROGRESS since 2012 our love for nature in everything we do, reflecting the scale of drive and shape the agenda. We collaborated closely with and regularly attend conferences that focus on responsible our ambitions and the need for urgent action on nature. WBCSD on the development of the refreshed Vision 2050, sourcing practices. which launched in March 2021, and we co-lead a WBCSD www.aim-progress.com How we engage plastic and packaging workgroup that will define a transition Givaudan became a signatory of the Business for Nature call- for B2B chemical products. In 2020, we endorsed WBCSD’s to-action in September 2020. CEO call-to-action on Human Rights and signed WBCSD’s Roundtable on Sustainable Palm Oil www.businessfornature.org CEO Guide to Human Rights, a document that sets out the What it is actions businesses must take to meet their corporate The Roundtable on Sustainable Palm Oil (RSPO) is an responsibility to respect human rights and acts as call-to- international, multi-stakeholder organisation and certification Disclosure 102 – 13 action to encourage others to join these efforts. We are active model to advance the production, procurement, finance and Membership of associations members of FReSH, supporting the shift towards dietary use of sustainable palm oil products. The strategic organisations we are currently engaged with include: patterns that are nutritionally healthy and environmentally sustainable. The FReSH programme was launched in Why we engage WBCSD – World Business Council for November 2016 by the WBCSD together with the EAT Givaudan joined the RSPO in 2011 to promote the production Sustainable Development Foundation with the purpose of accelerating transformational and use of sustainable palm oil, supporting our commitment to What it is change in global food systems. eliminate deforestation from our supply chain; to address key The World Business Council for Sustainable Development www.wbcsd.org issues such as traceability and to create a positive difference for (WBCSD) is a global, CEO-led organisation of businesses and workers, farmers and local communities. Our engagement partners working together to accelerate the transition to a with RSPO addresses the material topics of biodiversity; sustainable world by focusing on the maximum positive AIM-PROGRESS consumer health and wellbeing; deforestation; economic impact for shareholders, the environment and societies. What it is performance; product environmental and societal impact; AIM-PROGRESS is an association of consumer goods companies product quality and safety; responsible sourcing; traceability Why we engage seeking to enable and promote responsible sourcing practices and transparency and reporting. Our engagement with the WBCSD addresses the material topics and sustainable production systems. of biodiversity; climate change; consumer health and wellbeing; How we engage deforestation; diversity & inclusion; economic performance; Why we engage T&W RSPO certification: During 2021, in the Taste & Wellbeing human rights; local community development; product Through our membership, we enhance our supplier and division, we were successful in broadening strategic responsible environmental and societal impact; responsible sourcing; customer partnerships to help create a more responsible supply procurement and the supply chain through the Palm Oil RSPO traceability; transparency and reporting; waste management; chain. Our engagement with AIM-PROGRESS addresses the MB certification of six factories: Naarden (Netherlands), water stewardship; and women’s empowerment. As active material topics of deforestation; diversity and inclusion; Smithfield (Australia), Dortmund (Germany), Dübendorf members of WBCSD’s programme FReSH (Food Reform for employee health, safety and wellbeing; governance and business (Switzerland), Mako (Hungary) and Avignon (France). Sustainability and Health), we contribute to transforming global conduct; human rights; responsible sourcing; traceability and food systems for improved sustainability and health. transparency and reporting. 22 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Key partnerships F&B RSPO certification: Nine Fragrance & Beauty sites were Why we engage B Movement Builders successfully audited and received certification in 2021: Jigani ACI members are committed to innovating and marketing What it is (India), Mt. Olive and Towaco (USA), São Paulo (Brazil), cleaning products and oleochemicals that are effective, B Movement Builders is a programme for multinational, public Malvinas (Argentina), Singapore (Singapore), Cimanggis sustainable, and safe for human health and the environment. companies to come together to lead systems change alongside (Indonesia), Changzhou and ZhangJiang (China). In 2021 China Our engagement with ACI addresses the material topics of and in support of the B Corp community, building a new (Guangzhou) is in process of the certification. climate change and product quality and safety. narrative about the purpose of business. Traceability (T&W & F&B): We also aim to increase How we engage Why we engage transparency of our palm oil supply up to mill level, encourage Givaudan has been an ACI member since 2012 and is a We are committed to helping drive a global movement of positive change in our supply chains and support the inclusion recognised member of the ACI sustainability programme in business as a force for good, accelerating change to our global of smallholders in the supply chain. North America. economic system and giving business a new role in society. www.cleaninginstitute.org Overall, we aim to reach supply chain transparency to mill level How we engage with our top suppliers, equivalent to 80% of our palm products Givaudan became a founding member of B Lab’s B Movement purchased by volume, by 2025. Earthworm Foundation Builders in 2020, joining forces with other purpose-led What it is companies. Maintaining B Lab’s commitment to strict criteria In 2021, we continued to work with our suppliers on our The Earthworm Foundation is a global non-profit organisation and transparency, Givaudan and other B Movement Builders traceability progress and achieved a level of 73% of palm focused on transforming supply chains for the benefit of nature commit to taking action in three key areas – leadership, impact volume traceable to the mill level. and people. and collaboration. www.rspo.org www.rspo.org/members/882/Givaudan-SA Why we engage READ MORE The Earthworm Foundation supports Givaudan in implementing www.givaudan.com ▸ Media ▸ Media releases ▸ 2020 ▸ Givaudan becomes American Cleaning Institute its Responsible Sourcing Programme through supply chain founding member of B Lab’s B Movement Builders What it is assessments and, where needed, co-designing innovative bcorporation.eu/b-movement-builders The American Cleaning Institute (ACI) is an association that solutions like landscape projects with supply chain partners to aims to support the sustainability of the cleaning product and create value for all. This engagement addresses the material oleochemical industries. It is committed to driving issues of product environmental and societal impact; raw Together for Sustainability (TfS) improvements in sustainability across the industry and material availability; responsible sourcing and traceability. What it is throughout the supply chain. An industry platform focused on CSR/Sustainability/RS topics How we engage using both EcoVadis assessments and third-party audits in the Givaudan became a member of the Earthworm Foundation members’ supply chain. The purpose is to build capability in the (formerly The Forest Trust) in 2017. chemical supply chain and to share pre-competitive RS data www.earthworm.org among the members. 23 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Key partnerships Why we engage The International Organization of the Flavor Industry (IOFI) is SAI Platform Our synthetics and Indirect Materials & Services (IM&S) the global association representing the industry that creates, What it is categories are integrated into the Sourcing4Good programme produces and sells flavourings worldwide. With regional and Sustainable Agriculture Initiative Platform (SAI Platform) is one through our membership of TfS. Because existing activities within national associations and major global companies as members, of the primary global food & drink value chain initiatives for that organisation are focused on the sustainability performance IOFI interacts with relevant stakeholders around the world. sustainable agriculture. and improvement of the related supply chains, many of which we IOFI supports the safety and proper use of flavourings and source from, it makes sense for us to benefit from and contribute helps members identify and address global challenges. It is a non-profit network that brings together more than to this organisation through the assessment and auditing of our 130 member companies and organisations leading the way in selected synthetics or IM&S suppliers. A Sustainability Committee has been instituted by IFRA and sustainable agriculture worldwide. This includes farmer IOFI as an effort to show F & F industries’ sense of responsibility cooperatives, manufacturers, processors, retailers and traders. How we engage and commitment to making a difference. They launched a SAI Platform provides the tools and network for the members Givaudan has nominated a “TfS Coordinator” whose responsibility Sustainability Charter covering five Focus Areas around the to advance their programmes on sustainable agriculture. is to ensure that the different stakeholders within our organisation flavour and fragrance value chain and 17 specific Commitments. are made aware of the tools and activities within TfS and of how The Charter aims to complement individual company Why we engage to maximise our membership. Our Head of Global Procurement sustainability programmes, helping the industry as a whole to SAI Platform tools help us make progress on sustainable and Sustainability is also heavily involved in the organisation from make advances in sustainability by sharing best practices and agriculture with our suppliers. This platform also allows us to a steering committee perspective. In addition to the Coordinator benchmarking progress. develop expertise and interact with our peers, both customers role, representatives from Procurement and Sustainability are also and our suppliers, in this journey, involved in the different TfS workstreams such as audit, Why we engage assessment and scope 3. As we move forward and integrate the IFRA and IOFI form an industry body in which some projects are How we engage sustainability performance management of our suppliers using temporary and other forums are permanent. Of those that have Farm Sustainability Assessment (FSA) by SAI Platform is our the tools of TfS (e.g., EcoVadis and third-party audits), direct a link to sustainability, there are several temporary workshops/ standard protocol for assessing and verifying our suppliers at involvement of Procurement will increase. projects. Of interest for the programme, permanent groups farm level. We are also an active member of SAI Dairy Working tfs-initiative.com include the Scientific Committee (SC), the Regulatory Affairs and Group as we understood this to be the platform for Advisory Committee (RAAC), the EH&S Committee, the contributing to a more sustainable dairy sector: by partnering Communication Working Group (CWG), the Green TF (not active with other companies in this industry, we can contribute to IFRA – IOFI Sustainability Task Force the last year), the Environmental Task Force as a subset of the finding solutions for common issues that are not only specific What it is SC (ETF) and the Sustainability Committee. to Givaudan. Together with the industry’s scientific centre RIFM (the Research saiplatform.org Institute for Fragrance Materials), the International Fragrance How we engage Association (IFRA) team endeavours to ensure that the usage Fragrances and Flavours houses nominate their board standards for fragrance materials are put into practice according members for the boards and RAPS, EHS, sustainability and to the available scientific recommendations and that member responsible sourcing team members for technical Committees. companies comply with those standards. This voluntary ifra-iofi.org approach enables the IFRA standards to be adopted rapidly by fragrance houses worldwide and by the industry as a whole. 24 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Key partnerships UEBT many positive initiatives and interventions within its vanilla How we engage What it is supply chain in the country, it also makes sense to work with Givaudan has been engaged as an advisory board member with UEBT is a non-profit association that promotes ethical sourcing industry peers to ensure an aligned approach on issues such two seats since July 2021. We are also participating in different of ingredients from biodiversity, supporting and verifying as traceability, deforestation and the professionalisation of working groups. companies’ commitment to sourcing with respect for people the vanilla industry. renewable-carbon-initiative.com and biodiversity. UEBT members commit to gradually implementing practices defined in the UEBT standard. How we engage Givaudan has been represented on the SVI Steering Committee Why we engage since 2017, with meetings generally on a monthly basis. We are UEBT has a depth of experience in many of the fragrance also involved in the whole member forums as well. related supply chains in which we operate and offers tools www.idhsustainabletrade.com/sustainable-vanilla-initiative-svi and guidance on how to navigate the challenges therein. A number of our customers work very closely with UEBT, so it is an important stakeholder in our responsible sourcing and RCI (Renewable Carbon Initiative) biodiversity programmes. What it is The aim of the Renewable Carbon Initiative (RCI) is to support How we engage and speed up the transition from fossil carbon to renewable Givaudan works closely with UEBT, and their responsible carbon for all organic chemicals and materials. sourcing standard is one of the protocols we use for assessing and verifying our suppliers at farm level. Why we engage www.ethicalbiotrade.org We reconsider carbons from waste (recycled, CO2 or biomass based) as a new source of building blocks for new materials, which should be in the longer term be recognised as renewable The Sustainable Vanilla Initiative (SVI) a source of carbon. What it is The Sustainable Vanilla Initiative (SVI) is a voluntary industry This initiative is expected to help us create cross-industry initiative that aims to promote the long-term stable supply of platforms that will demonstrate the feasibility of renewable high-quality, natural vanilla produced in a socially, environmentally carbon in tangible activities; advocate for legislation, taxation and economically sustainable way. It is made up of a range of and regulation changes to give renewable carbon an adequate vanilla supply chain actors and is run by the NGOs IDH and commercial playing field to play on; and create a wider pull for Sustainable Food. sustainable options by raising awareness and understanding of renewable carbon level amongst the business community and Why we engage the wider public. Vanilla is a key product sourced by Givaudan, and the challenges of the Madagascan market and environment around it are well known. Although Givaudan undertakes 25 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix ECONOMIC / GOVERNANCE In this section 27 Our ambitions 28 Economic performance 31 Governance & business conduct / ethics / transparency 38 Product / Ingredients environmental & social performance 40 Product quality & safety and ingredient disclosure 42 Innovation capabilities & management 26 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Our ambitions Our contribution to SDGs CREATIONS OUR AMBITION By 2030, we will double our business through creations that contribute to happier, healthier lives. Focus area Targets Status 2021 Actions and measures Sales growth Average organic sales growth of 4–5% on a like-for-like basis 7﹒1% • Focusing our strategic growth drivers between 2021–2025 • Focusing on renewable, biodegradable and viable natural solutions Free cash flow Average free cash flow of at least 12% of sales between 2021–2025 • Addressing health and wellbeing issues 12﹒6% • Expanding our portfolio • Greater collaboration and co-creation • Exploiting AI and digital opportunities • Increasing operational efficiencies Strong governance systems are the cornerstone of a successful, sustainable business and help us to live and implement our purpose, as we strive to be a force for good for business, society and the planet. Calvin Grieder, Chairman of the Board 27 Givaudan — 2021 GRI Sustainability Report
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
A year in review Economic / Governance Environment Social Appendix Economic performance high level, despite ongoing challenges in certain parts of the Disclosure 201 – 1 Disclosure 204 – 1 supply chain. The strong sales growth was achieved across all Direct economic value generated Proportion of spending on local suppliers product segments and geographies, with the mature markets and distributed Givaudan prefers to source from local suppliers (defined as growing at 6.3% and the high growth markets at 8.3% on a Our value added is defined as the economic value created by suppliers who are based in the same country as the Givaudan like-for-like basis. In Fragrance & Beauty the product the activities of our business and its employees. This value is facility). This is reflected in the fact that 82% of non-raw segments most affected in the first phases of the COVID-19 distributed to our operating costs including the supply chain, material, by value, was purchased locally in 2021. For raw pandemic, namely Fine Fragrances and to a lesser extent employees through wages and benefits, providers of capital materials, 27% by value was sourced locally in 2021. Several of Active Beauty, delivered excellent double-digit growth in and governments. Our 2025 strategy “Committed to Growth, the raw materials we buy cannot be sourced in countries 2021, demonstrating strong consumer demand for these with Purpose” contributes to our ability to increase this value. other than the ones where they grow naturally. This local product categories. In Taste & Wellbeing, there was excellent sourcing policy has a significant contribution to the direct sales growth in the beverage, savoury and snacks categories, Givaudan’s economic value retained of CHF 235 million is the economic value we create in the local economies. as well as in the strategic focus areas of plant-based proteins, revenue of CHF 6,727 generated less the economic value of health and wellness and naturals. In addition, there was a CHF 6,492 distributed to stakeholders through operating progressive recovery in the foodservice segment, as costs, employee wages and benefits, payments to providers restrictions in relation to out-of-home food and beverage of capitals and taxes. consumption started to be eased in certain markets. Direct economic value generated and distributed in millions of Swiss francs REVENUES6,727 ECONOMIC VALUE DISTRIBUTED ECONOMIC VALUE RETAINED 6,492 235 1,596 83 1 4,024 6 89 Operating Employee wages Payments to Current taxes costs and benefits providers of capital 29 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Economic performance Disclosure 201 – 2 most in operations, the supply chain and communities. Our Financial implications and other risks targets are aligned with the United Nations Sustainable Committment to TCFD and opportunities due to climate change Development Goals and our attention is focused specifically on The scale of the climate crisis is more visible than ever, and activities related and contributing to SDGs 6 and 12. Financial markets need clear, thorough the effects of climate change threaten people, business information on the impacts of climate operations and economies around the world. Looking ahead, Taking action to decrease our negative impact and aligning change including risks and opportunities we are already acutely aware of the issues at stake: ourselves with an ambitious climate agenda also helps us turn presented by rising temperatures, climate- uncontrolled warming could pose numerous potentially risks into opportunities. Our expertise in green chemistry and related policy and emerging technologies. negative impacts on our company and limit our ability to techniques such as biocatalysis enable us to make products that The Financial Stability Board’s TCFD aims to operate. For example, a scarcity of water could have a severe are high in purity and yield, using less energy and fewer bolster the reporting of such climate- impact on our business because it is needed to grow most of hazardous materials. Our innovation teams are working on side- related financial information and Givaudan our natural raw materials and also as an essential input in our stream valuation, which enables us to use a larger part of is committed to the initiative. We largely manufacturing activities. Raw materials that are already existing raw materials or to reuse food waste from our partners’ address it through our extensive reporting scarce today risk becoming even more scarce in the future, facilities. This allows us to create raw materials with less energy through the CDP, a not-for-profit charity depending on the evolution of climate change. and reduces the risk of insufficient supply – it allows Givaudan that runs the global disclosure system for to do more with less. Our Water Stewardship Programme investors, companies and governments to As a business potentially affected by climate change, Givaudan ensures water risks are managed and monitored, and we manage their environmental impacts. has been carefully considering many of the topics addressed by prioritise places where water challenges are expected. We carry the TCFD disclosures for several years and with increasing out risk assessments in these areas to develop water mitigation READ MORE scrutiny since the 2015 Paris Agreement. Though we have not action plans that include efficiency improvements and water TCFD Recommendations ▸ page 128 yet completed the full quantitative analysis required by the reuse opportunities at our manufacturing operations. TCFD, we are in alignment with its principles. This is largely demonstrated by the disclosures we submit through the As we go forward in our journey to becoming climate positive, framework of the CDP questionnaire and our subsequent we will continue to make important changes to our business. reporting, included as a table p127. We will scrutinise how we formulate, how we continue to innovate and how we continuously improve our ingredients Disclosure 201 – 3 To this end, we are addressing climate change risk through a portfolio to reduce the impact of our products. We will be Defined benefit plan obligations comprehensive programme that aims to both mitigate it and to rethinking movement – from the transportation of materials and other retirement plans turn it to our advantage. We are looking, for example, to minimise and goods to how we travel ourselves – and considering how The Group operates a number of defined benefit and defined our contribution to climate change and promote the transition to to reduce our use of fossil fuels in favour of renewable sources contribution plans throughout the world and the corresponding a low carbon economy. We have committed to excellence in such as solar, wind, geothermal and biofuels. We will be assets are generally held in separate trustee-administered climate action, basing our own agenda on ambitious GHG exploring ways to capture carbon through natural climate funds. The pension plans are generally funded by payments emission reduction targets and encouraging our supply chain in solutions such as reforestation as well as through industrial from employees and by the relevant Group companies, taking efforts to reduce their own emissions. Our Water Policy processes offered to us by technology. We will look to reduce into account the recommendations of independent qualified emphasises our long-standing commitment to water stewardship our energy consumption through innovations in production actuaries. The most significant plans are held in Switzerland, and outlines how we are focusing on where and what matters infrastructure and increased efficiencies at our plants. the United States of America and the United Kingdom. 30 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Governance & business conduct / ethics / transparency Material topic definition Adhering to high ethical standards is not only the right thing to Disclosure 103 – 2, 103 – 3, 102 – 16 Governance & business conduct / ethics / do, it also protects our business from the risks of corruption MANAGEMENT APPROACH transparency and bribery, a critical concern at Givaudan. We can be held Ethics and integrity responsible for our own actions as well as those of people We are committed to adhering to high ethical standards in the Ensuring that business practices are in alignment with associated with us and penalties for violating bribery and way we interact with all our stakeholders: customers, suppliers, international standards, local laws and Givaudan standards corruption laws are severe. Most of the countries in which we shareholders, employees, competitors, government agencies (Code of Conduct) in countries of operation. Safeguarding operate have anti-bribery laws. Some of these countries claim and the communities in which we operate. Being open, the effective functioning of the governing bodies of extraterritorial jurisdiction with, for example, laws such as the transparent and honest in our dealings with these stakeholders Givaudan. Disclosing an adequate level of information and UK Bribery Act, the US Foreign Corrupt Practices Act and the allows us to grow responsibly and share our success. data and fostering constructive dialogue with the French Loi Sapin II. Mere allegations of bribery or corruption company’s stakeholders. can damage our reputation, and noncompliance with anti- Our Principles of Conduct set out this commitment and corruption laws may additionally expose us to fines. Either may underline our ambition to create an environment where trust Purpose pillars lead to a loss of customers and confidence. and confidence is integral to all our endeavours. CREATIONS NATURE PEOPLE COMMUNITIES A good governance system that is supported by responsible Last reviewed and updated in 2018, the Principles of Conduct management and supervision is essential for shared success consist of three pillars: Legal & ethical business dealings, Disclosure 103 – 1 and for the continued creation of value for the Company and Responsible corporate citizenship and Protecting Givaudan’s EXPLANATION OF THE MATERIAL TOPIC all its stakeholders. assets. The Principles also include a section on ‘How we live AND ITS BOUNDARY the Principles’, which reiterates each employee’s responsibility Givaudan has built its excellent reputation and name over a Being transparent by disclosing an adequate level of information for ethics and integrity and explains the channels for reporting long and rich history thanks to our commitment to high ethical and data fosters strong relationships and constructive dialogue any violation of the Principles (“helpline”). We expect every standards, good governance and transparency in all our with the company’s stakeholders, creates trust and underpins employee to take personal accountability for upholding our interactions. Continuing to ensure that all of our best business our reputation. Continued and inclusive engagement with our Principles in daily actions within their own sphere of influence practices are in alignment with international standards, local stakeholders is essential as it helps us understand external and with business partners and stakeholders. laws and Givaudan standards helps to provide enhanced value trends and market expectations and allows us to identify to customers, shareholders and other stakeholders including opportunities as well as risks for our business. Our Ethics and Compliance Programme is based on the suppliers, employees, competitors, government agencies and Boundary compliance and fraud prevention concept of ‘prevent – detect the communities in which Givaudan operates. • Givaudan – respond’. The Corporate Ethics & Compliance Officer • Business partners oversees the administration of this programme supported by • Suppliers a global compliance team and a network of local compliance officers and regional compliance coordinators. Regular compliance risk assessments are carried out by the Corporate 31 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Governance & business conduct / ethics / transparency Ethics & Compliance Officer with local compliance officers Anti-bribery & anti-corruption Disclosure 205 – 2 and corporate functions. Anti-bribery and anti-corruption compliance are managed as Communication and training about focus compliance risk areas within our Compliance anti-corruption policies and procedures Other compliance processes include the selection and Management System. The approach is anchored in our Basic compliance training on the updated Principles of engagement of third-party agents and distributors and the Principles of Conduct, which state that Givaudan has zero Conduct, mandatory for all permanent employees once every global supplier selection process of the Procurement tolerance for bribery and corruption and does not make two years, includes sections on bribery and corruption and organisation. The Corporate Ethics & Compliance Officer reports facilitation payments. This principle is further detailed in two the ethical handling of issues linked to gifts, entertainment regularly to the Board of Directors, the Audit Committee of the policies: Givaudan’s Global Anti-Bribery, Gift, Entertainment and hospitality. Board, the Executive Committee and the CEO. and Hospitality policy, first enacted in 2011 and last amended in 2019, includes prohibitions on corruption, bribery, inappropriate We have also introduced specific anti-bribery training for We monitor for compliance via numerous measures. We ask all gifts as well as mechanisms for the approval and reporting of employees with significant contact to external stakeholders. Local Compliance Officers to certify the compliance of their gifts, entertainment and hospitality. Givaudan’s Global This group of senior managers includes all members of the country organisations with the laws and with Givaudan’s Charitable Giving and Community Support policy, also last Executive Committee and other employees whose work policies once annually. amended in 2019, provides mandatory guidelines on permitted involves regular and direct contact with external stakeholders. charitable causes, due diligence on recipients, and reporting. Givaudan senior managers have been invited to complete this Disclosure 102 – 17 The Principles of Conduct and the two policies are available to specific anti-bribery training since 2013. The latest training Mechanisms for advice and concerns employees in all major Company languages. was rolled out from Q4 2021 onwards. The completion rate about ethics for Givaudan employees, including Naturex employees, Givaudan’s various mechanisms for advice and concerns about The Corporate Ethics & Compliance Officer regularly reviews currently stands at 85%. ethics also contribute to monitoring activities. We have a corruption and bribery risks as part of compliance risk Group-wide Compliance Helpline system that allows assessment, which is done at both the local and corporate With further acquisitions over the past years, we have continued employees to report suspected or actual misconduct or levels. The results are presented to the Executive Committee, to roll out our ethics and compliance programme, which includes violations of the Company’s policies on a confidential basis and the Audit Committee and the Board of Directors. Given that training for employees in the acquired companies. Depending on without fear of retaliation. The helpline consists of a telephony they present a specific risk group, Givaudan has a process for the integration status of the acquired company, the training and a web intake. It is serviced by a third-party provider and is the selection and engagement of sales agents and distributors programme is available either online or offline in all relevant available at all sites worldwide 24/7 and in all major languages that includes a formal due diligence review and requirements languages. The basic training includes essentially the same spoken at the Company. We also have a dedicated grievance for agent contracts and payments. material on anti-bribery, corruption and corporate social email channel that allows third parties to report alleged non- responsibility as the basic training for Givaudan employees. compliance or other issues. This mechanism is mentioned in In the case of acquisitions, we conduct pre-signing due Additional compliance training may be introduced as a result of our Responsible Sourcing Policy. All reported cases are diligence and full integration of acquired companies into the pre-acquisition due diligence. reviewed and investigated as appropriate in accordance with Compliance and Ethics Management system upon closing. Givaudan’s Global Compliance Incident Investigation Procedure. Depending on the nature of the allegations, these cases are handled either locally or centrally. Where required, external specialist support is sought. 32 Givaudan — 2021 GRI Sustainability Report
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
A year in review Economic / Governance Environment Social Appendix Governance & business conduct / ethics / transparency Governance controls and monitoring systems. Our rigorous governance Givaudan’s Board of Directors is responsible for the ultimate Strong governance systems are the cornerstone of a policies and processes ensure that our compensation direction, strategic supervision and control of Givaudan and its successful, sustainable organisation and help us to live and practices are aligned with our principles of integrity, fairness management. Our Board of Directors ensures the Company implement our Purpose, the overarching guidelines that and transparency. operates according to Swiss and international business ensure that the company is a force for good for business, standards and practices. Each of the eight Board members has society, and the planet. Disclosure 102 – 18 an in-depth knowledge of his or her relevant areas of expertise Governance structure and contributes to the Board’s competencies at the level of the At Givaudan, we pride ourselves on transparent governance, Our governance structure and processes aim to engage all full Board and in the Board’s four committees: Audit; which ensures we are managed and supervised in a stakeholders transparently and contribute to the creation of Compensation; Nomination and Governance; and Innovation. responsible way. Our structures and processes for the a fair, inclusive business. Robust standards, policies and The Board’s knowledge and diversity of experience are direction and control of our Company allow for a continued management systems provide a framework for addressing risks important assets in leading a company of Givaudan’s size in a focus on value creation and include internal and external and opportunities through operations and allow us to measure complex and fast-changing environment. our performance and meet our commitments to stakeholders. BOARD OF DIRECTORS Calvin Grieder Prof. Dr-Ing. Victor Balli Lilian Biner Michael Carlos Ingrid Deltenre Olivier Filliol Sophie Gasperment Chairman Werner Bauer Swiss national German and Swiss national Swedish national French national Dutch and Swiss national, French national Born in 1955 Swiss national Born in 1957 Born in 1962 Born in 1950 Swiss national born in 1967 born in 1964 Non-executive Born in 1950 Non-executive Non-executive Non-executive Born in 1960 Non-executive Non-executive First elected 2014 Non-executive First elected 2016 First elected 2011 First elected 2015 Non-executive First elected 2020 First elected 2020 Chairman since 2017 First elected 2014 First elected 2015 EXECUTIVE COMMITTEE Gilles Andrier Tom Hallam Louie D’Amico Maurizio Volpi Anne Tayac Simon Halle-Smith Willem Mutsaerts Chief Executive Chief Financial President Taste & President Fragrance & Head of Givaudan Head of Global Human Head of Global Procurement Officer Officer Wellbeing Beauty Business Solutions Resources and EHS and Sustainability French national British and US national Italian national French national British national Dutch national Born in 1961 Swiss national Born in 1961 Born in 1969 Born in 1968 Born in 1966 Born in 1962 Appointed in 2005 Born in 1966 Appointed in 2018 Appointed in 2015 Appointed in 2016 Appointed in 2015 Appointed in 2015 Appointed in 2017 34 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Governance & business conduct / ethics / transparency The seven-member Executive Committee (EC), led by the Chief Executive Officer (CEO), is responsible for all areas of operational management that the Board has delegated to it. BOARD OF DIRECTORS The CEO is appointed by the Board and has the task of achieving the strategic objectives of the Company and Regularly reviews overall progress determining operational priorities. The CEO also leads, and direction in purpose / sustainability supervises and coordinates the EC, which meets monthly to discuss Company business, strategy and sustainability. Disclosure 102 – 20, 102 – 31 EXECUTIVE COMMITTEE Purpose / sustainability governance Reviews progress and pending decisions in specific purpose / sustainability ambitions Our purpose drives our sustainability agenda. on a regular basis. Dedicated sessions are held twice a year to review the overall purpose / The Executive Committee (EC) leads Givaudan’s overall strategic sustainability agenda, including progress and decisions on strategic direction and commitment direction and is accountable for our purpose and Sustainability ambitions. Topics related to purpose / sustainability ambitions form part of the regular EC meeting agenda so that progress Engaged to define and drive the purpose / sustainability agenda and pending decisions can be discussed. Each purpose ambition Sustainability Purpose Divisions is allocated to a specific EC member who leads the regular briefs Leadership Team Management Office and functions to the Board of Directors. In addition, sessions dedicated to reviewing the overall progress and strategic direction of our Led by the Global Head of Led by the purpose project lead. Integrate purpose / purpose / sustainability ambitions are held twice a year. Sustainability, it meets twice a Is responsible to both support sustainability goals and month for a regular progress review the embedding of the purpose commitments into strategic plans The Sustainability Leadership Team (SLT), led by the Global Head and to jointly discuss direction and identify ways of cascading and embed them into daily business of Sustainability, is made up of internal experts on topics linked and progress in key purpose / it down through the organisation decisions and operations to purpose / sustainability. The team supports the organisation sustainability topics throughout the Company in reaching relevant goals, working closely with Division and functional leaders and managers to drive the agenda forward. The SLT meets on a regular basis to review progress and agree Management tools Stakeholders Partners and advisors key recommendations for the EC. • Ambitions • Constant engagement with internal • Partner with experts and • Policies / Principles of Conduct and external stakeholders nurtures our external bodies for • Risk management / purpose / sustainability agenda collaboration on key purpose / Precautionary principle • Allow us to direct our business efforts sustainability matters • Corporate Governance towards the broader needs of our • External assessments relevant stakeholder groups 35 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Governance & business conduct / ethics / transparency The Purpose Management Office (PMO), led by the purpose and employee safety in People. The PSP is thus designed to World project lead, is responsible for both supporting the embedding reward executives and key talent who significantly influence of the Purpose within the business agenda at the EC and the long-term success of the business and our purpose Sustainability leadership team levels as well as for helping identify ways of ambitions. Award cascading it down the organisation. Such targets underpin our purpose aspirations, and a clear winners The divisions and functions leadership teams integrate the methodology and sufficient data will ensure that the targets are purpose / sustainability ambitions into strategic plans and appropriate. All the non-financial metrics used in the new PSP Givaudan won the allocate the resources that will make the difference in will be rigorously measurable and audited, increasing world Sustainability delivering on our purpose / sustainability agenda. transparency. The chart below reflects the proportion of Team Award from contribution from the three focus areas of the Givaudan purpose. Sustainability Leaders, a Disclosure 102 – 35 global community- Compensation Transparency intelligence network for Chief Givaudan aims to attract, motivate and retain a diverse pool of Transparency and openly sharing information isn’t just about Sustainability Officers and ESG highly talented people to sustain our leadership position in our compliance; it’s a means of bolstering accountability and executives. Judges awarded us the prize, industry. Our compensation policies are an essential component engagement, and, ultimately, trust. Transparency and clear, which recognises teams who have of this strategy and as such a key driver of organisational open communication are essential to inclusive stakeholder demonstrated creativity, determination performance. Our compensation programmes reflect the engagement and building solid long-term relationships. These and resilience to drive positive change, performance of the business and of individuals and are aligned relationships give us a deep understanding of the most due to the breadth of the team working with our ambition of ensuring that Givaudan is a place where relevant topics for different groups of stakeholders, on sustainability, including many people everyone feels welcome, valued and inspired. We have rigorous permitting us, in turn, to align our business performance with whose roles incorporate sustainability governance, policies and processes to ensure that our the expectations of our stakeholders and with society in outside of the core team; the many compensation practices are aligned with our principles of general, adding to our long-term success. projects the team has implemented and integrity, fairness and transparency. The Compensation the tens of thousands of people Committee supports the Board of Directors (Board) in Performance Share Plan for top 500 employees positively impacted. establishing and reviewing compensation policies. From 1 January 2021, we introduced a new Performance Share 20% 80% Plan (PSP) aligned with the Givaudan purpose focus areas. Non-financial Financial While we have retained the financial metrics traditionally used targets targets to calculate the PSP, they have been complemented by 10% nonfinancial criteria linked to three of the focus areas of the Givaudan purpose. Within the three focus areas, calculation Social targets criteria in the new PSP are: sales and free cash flow in 10% Creations; net greenhouse gas (GHG) emissions reduction in Environmental scope 1, 2 and 3 in Nature, and gender diversity, nationality mix targets 36 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Governance & business conduct / ethics / transparency Collaboration is essential to delivering on our bold ambitions and promoting transparency. We engage with a broad range of external partnerships and initiatives from the entire ESG spectrum, helping us accelerate our progress. In 2020, we started our journey of becoming a certified B Corporation (B Corp) company. This means we will need to meet the highest standards of verified performance, public transparency and legal accountability. Part of this process involves regular materiality assessments, and transparency facilitates the stakeholder engagement that is at the core of these assessments. We otherwise pursue transparency through the full scope of our activities, from the communication of financial information and performance, product information, our corporate social and environmental impact, workforce demographics and data, information on our supply chain and on charitable partners. READ MORE For more information on how we interact with our stakeholders, external partnerships and initiatives, see chapters stakeholder engagement and key partnerships. Please also consult our reporting suite. 37 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Product / Ingredients environmental & social performance Material topic definition Disclosure 103 – 1 Social impacts are felt from the earliest stages of the supply Product / Ingredients environmental EXPLANATION OF THE MATERIAL TOPIC chain in terms of the people who grow our natural raw & social performance AND ITS BOUNDARY materials and people who manufacture ingredients, to the Our company Purpose, at the very heart of our strategy, calls effects on the consumers that use or consume them. We Optimising the impact of our products within our whole on us to create products that support happier, healthier lives must make sure that human rights are respected throughout supply chain, in the way they are designed, sourced, with love for nature. The impact of our products on both the supply chain and production chain and that products are manufactured and ultimately used by the consumer, both society and the environment are of critical importance in our safe, both for the people who produce them and for the in terms of environmental impact (by reducing the continuing to be a successful, sustainable business. We look consumer. We aim to go further than these bare minimum environmental footprint of our product formulas, by to minimise any negative impacts while maximising benefits requirements though to develop products and services that sourcing raw materials in a responsible, sustainable way, throughout the entire lifecycle of our products. promote health and wellbeing. by optimising packaging) and in their ability to positively affect societal issues (by promoting the health and Our products have wide-ranging and varied environmental and Making a positive impact on the environment and society is wellbeing of consumers). social impacts from the very beginning of their creation to their central to our strategy, is a primary concern for our customers end use by the consumer. In terms of impact on the and their consumers and is key to improving our performance. Purpose pillars environment, our inputs include both non-renewable and CREATIONS NATURE PEOPLE COMMUNITIES renewable materials and our activities may affect the Boundary • Givaudan environment through contamination of air, soil or water that • Suppliers could result from the sourcing and processing of raw materials, • Customers and consumers product development, production and logistics. Our energy use and downstream / upstream activities lead to the generation of scope 1, 2 and 3 GHG emissions, which affect the environment through climate change. 38 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Product / Ingredients environmental & social performance Disclosure 103 – 2, 103 – 3 MANAGEMENT APPROACH Our products Our efforts Our overall approach to optimising the impact of our products within our whole supply chain considers the potential impact INGREDIENTS ENVIRONMENTAL HOW WE MANAGE of our processes and products on the environment as well as AND SOCIAL IMPACTS THESE IMPACTS the impact on society in a broader sense. This allows us to be a responsible corporate citizen and pursue our ambition to Minimise negative impacts • Innovation in new technologies double our business by 2030 with creations that contribute to • Non-renewable materials and processes happier, healthier lives. • Air contamination • Improving energy efficiency • Soil • Reusing and reclaiming materials, Our efforts to minimise our environmental impact are wide • Water products and packaging ranging. They include investigating new technologies and • Energy and emissions • Optimising approaches to recycling processes; optimising approaches to recycling, reusing and • Responsible sourcing policy / reclaiming materials, products, packaging as well as Maximise benefits Sourcing4Good programme improving energy efficiency and tackling deforestation. We • Renewable materials • Eradicate inequality and unfair labour look to assure consumer and worker health and safety • Circularity conditions wherever we do business through efforts including investment in toxicology expertise • Respect of human rights • Investment in toxicology expertise and research to ensure that our workers are not harmed in • Product safety and research the production of our products. We also strive to avoid • Promotion of health and wellbeing causing or contributing to any human rights abuses linked to the manufacture of our products. We expect similar efforts from our supply chain partners and are committed to ensuring that our inputs are sourced responsibly in terms of both people and the environment. READ MORE For additional information on topics addressed in this chapter, please read: ▸ Givaudan’s Responsible Sourcing Policy ▸ This report’s chapter on Responsible sourcing & traceability ▸ This report’s Environment section ▸ This report’s Social section ▸ This report’s Economic / Governance section ▸ This report’s chapter on Innovation capabilities & management 39 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Product quality & safety and ingredient disclosure Material topic definition of our products helps customers manage environmental, Through the investment in toxicology expertise and research Product quality & safety & ingredient health and safety (EHS) risks associated with the use of our into the safety of our products, we are committed to leading disclosure ingredients and products. the industry in ensuring that our consumers can safely use Boundary our products in their day-to-day lives. We also invest in Ensuring our products are safe and comply with high • Givaudan environmental safety expertise and research to ensure that our quality standards and all applicable laws, regulations and • Customers and consumers workers and the environment are not harmed in the production customer requirements (for example, customer of our products. Givaudan has a long history of investing in requirements on ingredient disclosure). safety evaluations of its raw materials, and we develop critical Disclosure 103 – 2, 103 – 3 data to support these evaluations along with our suppliers. Purpose pillars MANAGEMENT APPROACH CREATIONS NATURE PEOPLE COMMUNITIES Globally, we ensure that our products are safe for intended Givaudan is the industry leader in the development of novel consumer use and comply with all applicable laws and non-animal test methodologies to support both human and regulations. Quality is paramount to our success. environmental safety assessment of our materials. This enables Disclosure 103 – 1 us to comply with safety regulations around the world. EXPLANATION OF THE MATERIAL TOPIC We are a business-to-business organisation and as such we AND ITS BOUNDARY do not sell products directly to the end consumer, but we are With our regulatory expertise, we not only provide essential Our company purpose calls on us to develop products that will responsible for providing safe products to the businesses we advice to our customers, but also ensure that our products allow more people to enjoy happier, healthier lives. The quality sell to, and we seek to ensure health and safety for consumers meet or exceed all requirements. Customers need to manage and safety of these products is then a fundamental element of when using our products. We are also committed to ensuring any environmental, health and safety risks associated with our continuing to be a successful, sustainable business. that our products are safe for our employees and the the use of our ingredients and so it is vital we supply the environment when used as intended, and that these products necessary information for the proper handling of our products We must clearly provide customers with products and are compliant with all local laws, as a minimum requirement, and label them sufficiently. Details are provided in the services that meet all agreed requirements and applicable in the markets in which we sell. These considerations are of disclosures below. legislation. We otherwise run the risk of extra costs and may course the bare minimum: the chapter on Consumer health damage our reputation. At the same time, the quality of our and wellbeing outlines how we strive to go well beyond, To help ensure the safe use of flavours and fragrances in products is the key to our success and that of our customers. creating products that improve peoples’ lives. consumer products, we also support, and in many cases lead, the Supplying the necessary information for the proper handling development of public policies that impact products developed in taste and wellbeing, and fragrance and beauty. We also work 40 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Product quality & safety and ingredient disclosure with associations such as the International Fragrance Disclosure 416 – 1 Association (IFRA) and the International Organization of the Assessment of the health and safety impacts Flavor Industry (IOFI). Product safety is of prime importance to of product and service categories Givaudan in ensuring the safety of employees, customers and All the ingredients used in our formulas are evaluated for any consumers, as well as the environment. environmental, health and safety impact and this information is disclosed and filed with the relevant regulatory bodies In our pursuit of excellence, we have defined our approach to whenever necessary. Quality and environmental data about enhancing Givaudan’s food safety culture over the years to our products, including safety information, are available come. We will focus on engaging our workforce to take full through product labels and safety data sheets. The safety ownership and display leadership in food safety, increasing data sheets are available in more than 44 languages and are knowledge and raising risk awareness to foster best attached to every consignment and are readily available to operational practices. This leadership-led initiative customers on request. For Taste & Wellbeing products, complements our efforts in maintaining and continuing to information related to allergen, GMO, organic, nutritional and invest in hygienic infrastructures. At the same time, we are religious criteria can be provided. driving both the full implementation of Givaudan’s global food safety standards in our acquisitions and the continuous Disclosure 416 – 2 improvement of core programmes at all our manufacturing Incidents of non-compliance concerning sites. Today, 100% of our Taste & Wellbeing manufacturing the health and safety impacts of products sites that are supplying ingredients and solutions for food and services applications to third-party customers are already GFSI- There have been no incidents of non-compliance concerning certified, confirming adherence to the highest food safety the health and safety impacts of products and services. standards also within most recent acquisitions. Disclosure 417 – 1 Sophisticated toxicological science is used in the Fragrance & Requirements for product and service Beauty division to ensure the safety of list materials, deployed, information and labelling for example, in the REACH programme. We do not use animal The following product and service information is required by testing for safety assessments unless required to do so by law the organisation’s procedures for product and service – REACH, for example, required certain products to be tested information and labelling. 100% of sold products delivered to in this way. Givaudan is also committed to further developing our customers are subject to product information non-animal test methods such as our KeratinoSens™ assay and requirements and regulations. the development of a fish gill assay for toxicity assessment in aquatic species. We continue to invest in this important area. Sourcing YES / NO Content YES / NO Safe use YES / NO Disposal YES / NO 41 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Innovation capabilities & management Material topic definition Disclosure 103 – 2, 103 – 3 Taste & Wellbeing Innovation capabilities & management MANAGEMENT APPROACH Innovation through collaborations and co-creation Innovation is at the heart of our business. We take an end-to- The market increasingly recognises the urgent need to Innovating in terms of developing ingredients, products and end approach and continually seek new ways to address transform the food system into one that is regenerative and processes with minimal and/or positive environmental consumer desires and our customers’ challenges, all while equitable and aims to provide healthy, safe and nutritious impact by using renewable raw materials, eco-efficient developing creations that have a minimal and/or positive food for all: this means that proactivity and partnerships are manufacturing, green chemistry, upcycling / circular designs. impact on the environment and contribute to happier, healthier essential. We aspire to become the go-to partner for our Effectively leveraging digital innovation to support this work. lives. Collaboration and co-creation with customers and customers to co-create consumer preferred food experiences. partners, the use of renewable raw materials, eco-efficient We are well supported in these endeavours by our expertise, Purpose pillars manufacturing, green chemistry and upcycling are some of the technologies and eco-systems. CREATIONS NATURE PEOPLE COMMUNITIES approaches that help us meet this goal. Supplier-based innovation and new digital tools powered by artificial Our co-creation approach is holistic and aims at truly multi- intelligence and big data round out our approach to this topic. dimensional give and take with our partners. It starts with Disclosure 103 – 1 understanding consumers at their core, looking to discover not EXPLANATION OF THE MATERIAL TOPIC only what they enjoy, but why they enjoy it. From this AND ITS BOUNDARY foundation, we embark on the development path together, It is our ambition to double our business by 2030 through from brainstorming to production, and are supported along the creations that contribute to happier, healthier lives. Achieving Investments in Research way by ingenuity, creativity, speed, efficiency and the this and creating meaningful, delightful moments for people fundamental belief that we are stronger together. while protecting the planet is not possible without innovation. & Development In 2021, we formalised a co-creation platform to address A strong culture of innovation, in all its forms, is critical to CHF 562Million R&D spend customer needs and accelerate development of their products, maintaining a sustainable competitive advantage, to supporting our collaborative development process in partnership guaranteeing differentiated solutions for our customers and, with our customers. Assigning a global lead and regional experts ultimately, new products for end consumers. It allows us to representing 8﹒4% of sales and establishing the process from design thinking to prototyping develop products that minimise negative impacts on the will allow us to efficiently approach projects that need to reach environment and society and maximise potential benefits. the market quickly as well as address complex or significant technical challenges. A tested, constantly evolving process that Boundary leverages a wide range of resources, from digital tools to • Givaudan operations, has been created and rolled out in all regions. • Suppliers • Customers • Innovators and partnerships Co-creation takes many forms, from working directly with customers on projects to the creation of sites or facilities designed for co-creation, to external partnerships and Front- End Innovation efforts. 42 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Innovation capabilities & management Co-creation platforms, fermentation and protein. Finally, digital is also an area During the challenge, start-up companies who registered and Examples of sites designed for co-creation include the Protein of interest where we have seen many potential disruptors. submitted their projects gained visibility in the larger Innovation Centre (PIC) in Singapore and the new Protein Hub sustainable, plant-based protein ecosystem and were able to at our flagship Zurich Innovation Centre in Kemptthal, Givaudan offers technical and market knowledge, science at network and collaborate with others on a similar journey. The Switzerland. The PIC welcomes food processing companies, scale and all the capabilities for development and top 15 start-ups selected in the first round pitched their start-ups and university researchers from across the Asia Pacific commercialisation. Start-ups are nimble and can tap other proposals to partner companies virtually, with 5 companies region keen to co-create plant-based food experiences. The resources from the ecosystem, accelerating their journey and gaining access to the partner companies’ testing and scale up Centre combines the pilot technology of Bühler’s extrusion and execution. Front End Innovation is here to combine these two piloting facilities in Minneapolis. The six-month contest processing equipment with Givaudan’s new culinary facilities worlds for specific innovation areas. involved more than 130 people from 22 companies. and its world-leading expertise in flavour, taste, ingredient and product development. One example is our Cultured Food Innovation Hub, an entity The winner, Nowadays, is a company creating large, label- formed in collaboration with Bühler and Migros to accelerate friendly cuts of plant-based meat that resemble the taste, The Protein Hub builds on Givaudan’s industry leading expertise the development and market penetration of cellular agriculture appearance, and mouth feel of poultry when rehydrated. Using in taste, texture, colours, proteins and ingredients, and provides products. There are many arguments supporting the mass sustainable pea protein and produced via dry extrusion, their the experts, technologies and equipment to help accelerate the suitability of cultured meat, fish and seafood including meat chicken-like full cuts would have a two-year shelf life at development of alternative proteins. Customers can come to the without slaughter or factory farming, a significantly better ambient temperature and would be comparatively priced to Protein Hub to work on all types of applications and every aspect climate impact, no use of antibiotics, and contribution to food poultry counterparts. Plant Ranch was selected as First of the product development process, from initial ideation and security. The Cultured Food Innovation Hub will start Runner-up for their line of flavoured and sustainable Mexican consumer insights to hands-on prototyping sessions – all with operations next year. It will be a self-sustained, standalone plant-based proteins. They will receive three months of the aim of getting products to market quickly. company wholly owned by Givaudan, Bühler, and Migros, mentorship from the partner company of their choice. located in The Valley in Kemptthal, a hotbed of innovation and Front End Innovation technology just outside of Zurich. Front End Innovation (FEI) allows us to expand our innovation capacity. To drive our innovation efforts, we have deployed a Our Scale It Up! challenge with Cargill, Bühler and Puris is worldwide network of partners who are diligently looking for another example of this kind of innovation. In 2021, these four the most promising technology and ingredient opportunities companies teamed up to create an innovation challenge for for Givaudan. We tap into the best innovation hubs in the start-ups in North America focused on alternative protein world, such as San Francisco, Switzerland, Israel, Netherlands, products in the form of plant-based meat and dairy alternatives. China and Singapore. We see an average of 50 opportunities The ‘Scale it up!’ innovation challenge is meant as an per month and will pursue at least 20% through follow-up opportunity for start-ups to get first-class support from leaders conversations and further assessment. in the food value chain. It accelerates and scales their project, product or solution with the support of Bühler, Cargill, This portfolio of potential collaborations gives us opportunities in Givaudan and Puris and their expertise, networks and first- potential new masking tools, new ingredients delivering health class facilities. It is meant to help these companies bring benefits, the next generation of food colorants, texturisers and healthy and planet-friendly products to market more quickly. natural preservatives. We also see opportunities in technology 43 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Innovation capabilities & management Biotechnology partners Fragrance & Beauty Givaudan has been working for a number of years in Innovation through creation biotechnology, implementing a strategy that includes co- Today’s consumers increasingly seek fragranced products creation and development with third-party experts. Significant made from natural and renewable ingredients that are advancements in development in 2021 include: sourced responsibly. The demand for products with wellbeing and emotional benefits is also rising. We place a special emphasis on these two areas, all while working to reduce the carbon footprint of our fragrance molecule development MANUS BIO BIOSYNTIA process. We look to develop cutting-edge, science-backed scent solutions for all product categories that have a positive • Leading US manufacturer of sustainable natural • Danish biotech company, considered world impact on consumers’ lives. products leader within the development of fermentation • Focus on additional new ingredients processes for select small molecules One example includes our Naturality Index™ tool. It is a one- • Commercialising the ingredients on an exclusive • Their fermentation processes and experience assure of-a-kind assessment tool that allows perfumers to factor in worldwide basis a consistent and dependable supply of ingredients the environmental impact of their ingredient selection, • Expected commercialisation of the that have a reduced environmental impact. bringing a new, differentiating dimension to the creative product in early 2022 process. The tool encourages nature-conscious fragrance design by assessing ingredients and formulas against a Biotechnology number of measures that affect fragrance sustainability such partners as biodegradability, renewability and sourcing. The index covers four pillars: Environmental Positive Impact, Ingredient GINGKO BIOWORKS Origin, Energy Efficiency, and Responsible Sourcing. These measures align with Givaudan’s nature and community goals • Building the leading horizontal platform for • Extensive platform to accelerate development and also support customers who are searching for more long- cell programming and enhance Givaudan’s portfolio of ingredients term sustainable solutions for their brands. • Recently announced a business combination with • Givaudan will be able to sustainably deliver Soaring Eagle Acquisition Corp. (Nasdaq: SRNG) products such as those that are only available Another important tool in our suite of responsible innovations • Expertise in enabling companies to develop bio- in minute quantities in nature, using the is FiveCarbon Path™, a vision that considers the potential based products to produce a number of innovative natural world as inspiration for an expanded impact of our processes and products by maximising our and sustainable ingredients through fermentation creative palette carbon efficiency. In Active Beauty, we believe innovation is not simply about inventing something new – it’s also about making it better, both for people and the environment. 44 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Innovation capabilities & management We use, for instance, blue, green and white biotechnology Animal-free testing techniques where possible. This involves creating ingredients In addition to these pillars, we are also looking to abolish the use PLANETCAPS™ using living organisms or enzymes, allowing us to create of animals in cosmetic testing. Givaudan was the first fragrance Cutting edge fragrance products that are eco-responsible, use less energy and company to invest in exploring animal-testing alternatives, and generate less waste. Givaudan’s expertise in blue we continue to lead in this area, researching and developing technology biotechnologies draws on molecules and active ingredients non-invasive ways to test new molecules and ensure the safety found in the ocean, highly sustainable resources offering of our products, all while speeding up the testing process. Givaudan scientists have been striving for powerful beauty properties. White biotechnology allows the last six years to ensure fragrances scientists to create active cosmetic ingredients through the The programme includes our OECD validated KeratinoSens®, a capsules both deliver outstanding scent use of microorganisms or enzymes, which are natural leading non-animal test for skin sensitisation, and PebitoSens™, release and are kind to nature. processes that result in the use of eco-friendly solvents. Green a combination of in vitro methods for bioaccumulation and PlanetCaps™, a result of their work, are biotechnology and advanced extraction techniques allow us acute fish toxicity which involves testing fish cells and enzymes based on an industry-leading to reduce waste by using all parts of the plant. A recent rather than living fish. encapsulation innovation that enables partnership with Bio FD&C, a leader in plant cell culture, long-lasting fragrance in a biodegradable allowed us to explore ways of leveraging the untapped This year, the world’s first toxicology testing strategy without and bio-sourced delivery system for fabric properties of plants through stem cell cultures and animal testing, developed and validated in a joint effort by softeners. A combination of high phytopeptides. This has already allowed us to introduce Givaudan and BASF, was approved by the OECD (Organisation biodegradability and renewable carbon unique new active ingredients for hair and skincare such as for Economic Co-operation and Development). The strategy source material, PlanetCaps™ deliver K-Phyto™ Camelia and K-Phyto™ GHK. consists of three alternative methods that can be used to long-lasting fragrance experience that is predict whether a substance causes allergic reactions in the appreciated by both customers and We also look to optimise the use of the renewable biomass skin. We also developed the Kinetic DPRA, another alternative consumers. Their introduction allows available locally, for example at our unique biorefinery method that allows researchers to predict how intense an Givaudan’s customers to achieve the platform in Pomacle, France. This biocatalysis plant helps us allergic reaction in the skin might be without animal testing. complex balance between greenness and prevent waste, be more economical, use less hazardous, safer Validated in partnership with the chemical company BASF and performance in fabric softeners, one of chemicals and solvents, rely on renewable feedstocks, and be other institutions, the test received OECD approval this year. the consumer goods’ applications that more biodegradable in the environment. As an example, the This battery of tests complements the now approved testing relies most on capsules. The introduction enzymes that lie at the core of biocatalysis can transform strategy and allows us to create new molecules that are safe of PlanetCaps™ makes Givaudan the first leftover residues and are a prime source of renewable raw for customers without animal testing. fragrance house to offer a fully scaled materials. The result is a suite of authentically ‘green’ active solution ahead of the European Chemicals cosmetic ingredients that can be used by customers Givaudan also took its commitment to animal-free testing to Agency’s proposed restriction on committed to sustainably developing their products. the next level by joining the Animal-Free Safety Assessment microplastics, due for ratification in 2022. Collaboration. The AFSA brings together corporations with non- The cutting-edge fragrance technology profit organisations such as Humane Society International (HSI), will be expanded to other categories, who share the vision of a non-animal approach to product helping us boost sustainability. safety assessment to better protect people and our planet. 45 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Innovation capabilities & management Upcycling us to align needs with solutions. Areas that we’re actively We look for all supplier collaborations to ultimately feed and A key differentiator that pushes us to rethink how we access, investigating include food texture and technologies and fuel our innovation activities in different ways, each develop and invent ingredients for our portfolio and creative solutions that contribute to renewability and biodegradability, contributing to our efforts of creating together a responsible palette is upcycling. This involves transforming co-products, two clear focus areas in helping us meet our nature ambitions. and sustainable future. waste materials, useless or unwanted products into new ingredients for products that are of improved quality and One example of successful co-creation is our partnership with Leading the industry’s digital innovation sustainable for the environment. Upcycled materials are supplier Chr. Hansen. It started out with our bringing them into An emerging ecosystem of digital and AI tools is transforming obtained from the re-use of natural or synthetic materials that MISTA, which features a product development facility in San our industry. Pioneering tools open new doors to creative are normally disposed of or downgraded. These materials are Francisco and member-based online innovation platform. development can dramatically cut the time to market for new then transformed into ingredients used by Givaudan in, for Established by Givaudan, we set up MISTA to help start-ups and products. The Company’s 2025 strategy includes leading the example, our creative palette or in our ingredient portfolio. well-known corporations collaboratively optimise ideas, way in digitalisation, ultimately allowing Givaudan teams in Upcycling is a cross-divisional, cross-functional programme products and people. Chr. Hansen joined to accelerate its all regions of the world to streamline the end-to-end creation that supports our Purpose and Nature goals. Sponsored by the activities in fermented plant-based products. This led to a cross- process from conception to rollout. With this, we aim to Executive Committee, the programme is a great example of company project team with Givaudan and other partners significantly shorten the product development cycle, increase how we strive to use our business as a force for good. getting together to develop state-of-the-art, clean label, dairy- the chances of successful launch, and at the same time like, stirred yoghurt concepts. Combining the deep technical provide consumers with personalised recommendations and A recent example is NeoPeach Orpur® - the result of innovative expertise from each organisation and giving partners a chance market products. collaboration between Givaudan’s flavourists and perfumers. to learn from each other allowed the team to meet the challenge Developed sustainably by our Naturals Innovation team by with market-ready, fully developed, innovative ingredients. To lead our industry’s digital transformation, a dedicated upcycling side streams from juice production, NeoPeach innovation team works with the business divisions and Orpur® is an exquisite and natural peach ingredient, the first In our strategic partnership with the biotech company functions, exploring opportunities to enable our strategy. The natural peach extract of its kind. This sustainable process Novozymes, we work on the research and development of work is organised around three pillars: inspiring the allows both divisions to benefit from the low carbon natural innovative sustainable solutions in the areas of food and cleaning. organisation by stimulating and encouraging new ideas; extract, using it as an ingredient in both fragrances and food. Novozymes brings innovation with extensive know-how in Executive Committee-level governance to prioritise topics; a enzymes and microorganisms with substantial investments in ‘digital factory’, which is an internal incubator for fast-paced Supplier enabled innovation technology and R&D. Being the world leader within biological experimentation of the most promising ideas. Another approach to innovation involves mobilising the solutions, Novozymes drives sustainable solutions. supply chain to foster innovation through co-creation. This Generally, we take every opportunity to harness the opportunities allows us to go beyond what we can do on our own. As part of our Supplier Enabled Innovation programme, we have available in our increasingly interconnected world. We continue a strategic initiative with a selected number of partners called to invest in our digital capabilities throughout the value chain, Innovation with suppliers has multiple facets, from creating ‘Connect to Win’. Its aim is to unlock value from our existing including AI and big data, robotic process automation and new ingredients, getting access to newness for co-creation supplier relationships and create a pipeline of technological traceability. Some of the strategic areas we are exploring include and advancing with best-in-class ingredients to deliver better innovations that differentiate us in the market. It is a structured, how AI and big data can transform our creations and reduce our product performance. Of our numerous suppliers, we engage open door approach that acknowledges the possibilities of environmental footprint. We also use technology to learn more some 300, from large to small and from global to local, in adding significant value to our existing procurement approaches about consumer behaviours and thus offer customer-relevant discussions about innovation. Selective matchmaking allows while creating value in Givaudan’s innovation agenda. innovations that promote collaboration and data exchange. 46 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Innovation capabilities & management Taste & Wellbeing’s Advanced Tools for Modelling (ATOM), for In Active Beauty, we used AI to support the new active ingredient example, use AI to optimise food and flavour formulation and Chronoglow™. Crafted by green fractionation from Haberlea facilitate co-creation and collaboration with customers. Building rhodopensis, also known as the resurrection plant, it can mimic New Digital Space on more than two decades of research, ATOM uses AI and data botanical epigenetic mechanisms for skin care benefits. Here, we to drive innovation science techniques to minimise trial and error in the process. The used AI to better represent clinical results and demonstrate the tools can identify positive and negative flavour drivers and visual benefits of the product with a beauty avatar that in China in 2021 explore ingredient synergies to generate new options and represents the significant results of the ingredient. insights aligned with consumer preferences. The results are then Designed to spark creative, ground- displayed in graphically rich and interactive dashboards that breaking ideas through face-to-face allow Givaudan to co-create with its customers. interactions, co-creation and incubation experiences, our new Digital Space in The new Aroma Kiosk from the Taste & Wellbeing division is a Shanghai will allow us to pursue digital sensory tool that makes use of the ATOM technology. transformation opportunities and support Designed to connect with consumers in environments such growth with local and regional customers. as grocery and department stores, universities and shopping From multiplying possibilities through malls, it gathers valuable consumer insights and recommends Smart Creation to using AI to foresee products in real time. Compact and mobile, it combines a market opportunities, Digital Space will simple, user-friendly touch screen linked to ATOM 2.0 and enable us to identify opportunities and proprietary VAS technology. Consumers smell and rate leverage technologies to co-create different aroma profiles, and the data are then translated into products and services, take advantage of personalised flavour preferences using an AI-based algorithm. digital opportunities and manage evolving customer trends. We also entered into an industry-first partnership with Tmall, the Alibaba group’s open business-to-consumer (B2C) platform. This will allow us to launch the T-Lab source innovation laboratory and capture digital opportunities for fragrance creation in China. Powered by Tmall’s consumer behaviour data capabilities and ecosystem of partners, the T-Lab source innovation laboratory will leverage Givaudan’s leading creative fragrance solutions and production capabilities in the country. 47 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix ENVIRONMENT In this section 49 Our ambitions 50 Givaudan’s environmental footprint 51 Climate change 63 Waste management & circular principles 68 Water stewardship 75 Biodiversity 78 Environmental performance indicators 48 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Our ambitions Our contribution to SDGs OUR AMBITION Before 2050, we will be a climate-positive business based on scope 1, 2 and 3 emissions according to the greenhouse gas (GHG) protocol. Focus area Targets Status 2021 Actions and measures Emissions OPERATIONS: Our operations' carbon emissions –31% • Setting an internal carbon price • Signing the UN pledge ‘Business (scope 1+2) will be cut by 70% before 2030 and will be • Fixing site environmental targets and Ambition for 1.5°C’ climate positive before 2040 (baseline 2015) assessments • Promoting energy efficiency • Switching to renewable energy sources SUPPLY CHAIN: Our supply chain emissions (scope 3) –4% • Sourcing ingredients responsibly • Optimising packaging, logistics, will be cut by 20% before 2030 and will be climate positive • Developing low-carbon creations transport of goods, business travel and before 2050 (baseline 2015) • Driving circularity and upcycling employee commuting Electricity 100% of our sites will be powered with renewable 84% • Committing to RE100 since 2015 • Generating on site renewable electricity electricity by 2025 • Setting site renewable electricity targets We act as a role model in water stewardship, working to protect water-dependent ecosystems and encouraging the sustainable use of resources. Focus area Targets Status 2021 Actions and measures Water Improve water efficiency by 25% on sites facing water stress –4% • Driving continuous improvement using • Implementing our wastewater standard by 2030 (baseline 2020) the 3R approach: ‘reduce, reuse and • Carrying out water risk assessments We will continuously improve water efficiency on all other sites flat recycle’ • Tracking site water quantity and quality 100% of our wastewater discharge will meet or exceed In progress • Identifying shared water challenges and • Exploring water stewardship activity regulatory and industry standards by 2030 local stakeholder priorities in the watershed opportunities OUR AMBITION Before 2030, we will replace single-use plastics with eco-friendly alternatives across our sites and operations. Focus area Targets Status 2021 Actions and measures Plastics 100% plastics circularity by 2030 In progress • Becoming members of the advisory board of • Co-leading a WBCSD plastic and the Renewable Carbon Initiative (RCI) packaging workgroup defining a • Reducing our plastic usage and consumption transition for B2B chemical products Waste Reduce waste by 4% per tonne of product, year-on-year –2%¹ • Applying circular principles in product design, • Upcycling to reuse materials normally average (baseline 2015 – acquisitions not included) sourcing, manufacturing and packaging disposed of • Acting on the principle of ‘no waste by design‘ 1. Absolute reduction since 2015 49 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Givaudan’s environmental footprint CLIMATE CHANGE GHG EMISSIONS GHG EMISSIONS GHG EMISSIONS C P Y U C L I G N N G I L C Y C C E CIR INPUTS Materials + Energy supply + Water supply R U OUTPUTS Products + Waste + Effluents RAL Upstream activities Y TI Downstream activities IMPACTS / FOOTPRINTS GHG EMISSIONS – Approx. 2,300,000 tonnes SCOPE 3 Other indirect GHG Emissions SCOPE 1 Direct GHG Emissions SCOPE 3 Other indirect Purchased goods and services 82% 90% Operations 6% GHG Emissions 3% Capital goods 2% Downstream transportation and Fuel and energy related activities 2% SCOPE 2 Energy indirect distribution Upstream transportation and distribution 2% GHG Emissions 1% Waste generated in operations 1% Energy supply Business travel <1% Employee commuting <1% WATER CONSUMPTION – Based on 2018 Corporate water footprint Raw material 97% Onsite direct water use 2% Logistics and packaging 1% and energy 50 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Climate change Material topic definition Impact Living our purpose and showing our love for nature in Climate change We generate GHG emissions through energy use (combustion everything we do also means protecting our precious natural in our own processes as well as the use or purchase of environment and the resources it provides. There is an urgent Mitigating effects on climate change by reducing electricity and steam) and activities in our supply chain. need to accelerate action in many areas of our business and GHG emissions and supporting adaptation and actions Specifically, Scope 1 emissions are direct emissions from we have adopted global standards and ambitious goals. We along Givaudan’s value chain (for example, by ensuring sources we own or control, including, for instance, fuel wish to be accountable for our climate action and support sustainable use of land to address deforestation). combustion in our factories. Scope 2 emissions are indirect global efforts such as the UN’s Sustainable Development Goal emissions related to the use of purchased energy (electricity 13 on climate action. Purpose pillars or steam). Scope 3 emissions are all indirect emissions that CREATIONS NATURE PEOPLE COMMUNITIES occur in our value chain. In terms of synthetic ingredients, we must consider the energy needed to create them, and SBTi’s Net-Zero Standard whether they are made from fossil feedstock. With naturals, Disclosure 103 – 1 we need to consider land use change, deforestation, We were among the companies taking part EXPLANATION OF THE MATERIAL TOPIC agricultural practices and animal-derived products. in the 2021 road test of the SBTi’s Net-Zero AND ITS BOUNDARY Standard. The world-first common Climate change and related shifts in weather patterns and sea These are all major components of climate change and we framework recognises the urgency of the levels are disrupting people, business operations and economies must ensure that our raw materials are produced sustainably. climate crisis and the need for businesses around the world. The direct consequences of man-made climate Our efforts in these areas necessarily extend beyond Givaudan to respond robustly and credibly, aligning change, that is, an increase in the concentration of greenhouse to include the supply chain. Details on how we encourage action across industries and geographies. gases in the atmosphere, include rising temperatures, rising sea suppliers to observe our rigorous standards are described in the We strive to deliver on purpose and levels, higher ocean temperatures, an increase in heavy chapter on Responsible Sourcing & Traceability. sustainability ambitions, knowing that no precipitation and floods, a decrease of precipitation, shrinking one business can tackle the issue alone. glaciers and thawing permafrost. Indirect consequences are Boundary Action depends on a collective effort and wide-ranging, spanning from an increase in hunger, water crises, • Givaudan shared commitment to creating a future poverty and political unrest, to loss of biodiversity. • Suppliers we can be positive about. Risk Disclosure 103 – 2, 103 – 3 As such, climate change is a driver for a number of effects that MANAGEMENT APPROACH may in turn affect Givaudan’s ability to operate. A continued The latest climate science says that temperature increase must build-up of GHG emissions is expected to lead to changed not exceed 1.5°C compared to pre-industrial levels if we are to weather patterns and an even greater threat to supplies of avoid the most catastrophic effects of climate change. natural raw materials. This may translate into disruptions in the Reaching this goal requires that emissions fall by half by 2030 supply of natural raw materials or to operations because of a and that we reach net-zero emissions no later than 2050. water supply shortage, for example. It therefore poses significant There is therefore limited time for action and the private sector risks to our operations and supply chain: our business depends has a crucial role to play. on these natural resources and continuity of supply is critical. 51 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Climate change We are committed to becoming climate positive – removing all of our suppliers to support our efforts by working more greenhouse gases from the atmosphere than we put in collaboratively to provide data and information about their HYCOOL – before 2050 as part of our purpose. One element of this is carbon footprint when required, and to work to reduce their Solar heat for that Givaudan will cut GHG emissions from operations (scope 1 overall impact over time. and 2) by 70% between 2015 and 2030 and is working towards cool innovation operations becoming climate positive by 2040. The Science Our overall roadmap focuses first on reduction and then on Based Targets initiative (SBTi) has approved Givaudan’s scope 1 balancing remaining/unavoidable emissions with neutralisation/ Our site in Sant Celoni, Spain hosts a pilot and 2 GHG reduction target as being in line with 1.5° C. We also compensation measures. for HyCool, a groundbreaking technology aim to achieve our RE100 commitment to convert our entire for industrial cooling systems. Funded by electricity supply to fully renewable sources by 2025. The Our operations (scope 1 and 2) the European Union, the aim of the Company’s value chain emission target (scope 3), aiming for a In our operations, we are primarily focused on renewable energy innovative energy technology project is to reduction of 20% over the same period, also meets the SBTi’s sources and increasing energy efficiency to reach our goals. develop cost-effective solutions using solar criteria and is in line with current best practice. heat for industrial purposes. Installation Energy efficiency started in summer 2021 and, once In 2019, we signed the UN Pledge Business Ambition for 1.5°C, Here, our primary focus is on reducing consumption and we completed, and at full scale, is expected to which was proposed by the United Nations to aim for net- are leading significant energy consumption reduction projects reduce site GHG emissions by 3%, reduce zero value chain emissions by 2050. Helping to validate our across operations. Energy site assessments, for example, help electricity and gas consumption, and climate positive ambition, our engagement means we commit us identify opportunities to improve efficiency and identify deliver refrigeration with 25% greater to having net-zero targets in line with the new SBTi net-zero conservation measures. In 2021, we conducted four such efficiency. This will help us deliver on our standard, introduced in October 2021 and road tested by assessments. Other investments and efforts in terms of energy goals to reduce our Scope 1 and 2 GHG companies including Givaudan. In September 2020, we signed efficiency plans and targeted projects have also allowed us to emissions and lessen our overall carbon the CLG Europe CEO letter to the EU on 2030 GHG emissions make improvements. footprint through the use of high targets. The letter is designed, at a critical policy moment, to innovation technologies. If it proves cost send a clear signal to policymakers and other businesses that Ambitious GHG emission reduction is not possible without an effective, we will be able to use it in it is essential to ramp up climate ambition. We have also evolution of the technologies we use. We seek opportunities to countries with even more favourable signed the Business for Nature ‘Nature is everyone’s business’ partner with experts from diverse fields in finding new ways to weather conditions such as Mexico, South call-to-action. The call-to-action brings together more than improve our environmental performance. In particular, we look at Africa or Singapore. 500 companies with combined revenue of USD 4 trillion and energy-intensive steps in our processes, for example, cooling and urges governments to adopt policies now to reverse nature refrigeration needs, and seek opportunities to use alternative loss in this decade. technologies to achieve the same performance and jointly reduce our GHG emissions. We have found that solar energy, for instance, We constantly assess and mitigate the risks posed by climate offers an energy-efficient way to power industry’s needs for change and drive adaptation and remediation in our own cooling and refrigeration. The opportunity is in developing the operations and across our supply chain, from the raw material technology that will be able to efficiently and reliably respond to suppliers to indirect materials and service providers. We expect variable needs across a range of processes and sites. 52 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Climate change Our roadmap to becoming CLIMATE POSITIVE OUR ACTIONS TO REACH TODAY OUR AMBITIONS OUR ACHIEVEMENTS Baseline scope 3 2,000,000 –31% Scope 3 Scope 1 + 2 ¹ • Sustainable procurement IN 2030 IN 2040 of ingredients OUR AMBITIONS OUR AMBITIONS BEFORE 2050 4 IN 2025 OUR AMBITION • Low-carbon creations – % OUR AMBITION –70% –100% • Driving circularity and upcycling Scope 3 ¹ CLIMATE • Optimising packaging, logistics Scope 3 Scope 1 + 2 Scope 1 + 2 POSITIVE and transport of goods 84% 100% • Optimising business travel –20% – % (Scope 1, 2 + 3) Renewable Renewable 50 and employee commuting electricity electricity Scope 3 Scope 3 250,000 Baseline scope 1 + 2 Scope 2 Net GHG Our operation emissions NET-ZERO (scope 1 + 2) • Renewable energy sources • Energy efficiency Scope 1 0 2009 2015 2021 2025 2030 2040 2050 Neutralisation / Baseline TODAY compensation CO₂ emissions • Carbon capture technology -100,000 (tonnes) Neutralisation / clean compensation • Natural climate solutions Enablers to reach our ambitions • Supplier engagement • Budget and financial mechanisms • Advocacy and promotion • Partnership and governance 1. Compared to baseline year 2015. 53 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Climate change Renewable energy sources Disclosure 302 – 1, 302 – 4 Disclosure 302 – 3 Innovative sourcing strategies are an important part of reaching Energy consumption and reduction within the organisation Energy intensity our targets. In 2020, we set a new renewable electricity strategy Change to 2020 2015 2020 prioritising first on-site generation, then off-site generation and (restated) ¹ 2021 ² 2020 in % (restated)¹ (restated) ² 2021 ³ finally the purchase of Electricity Attribute Certificates (EACs). Direct energy: from Energy intensity Our stringent procurement strategy helps add more renewable primary sources (GJ) (GJ per tonne of product) 6.98 6.57 6.52 electricity to the grid. In 2021, we purchased electricity that Natural Gas 2,121,738 2,166,714 2% 1. Assured 2015 full-year figures. accounted for 32% of the total energy used across the Company Town Gas 172 257 49% These values are excluding the acquisitions done of Naturex, Vika and drom sites. but which equated to 15% of our total CO₂ emissions. LP Gas 10,119 10,827 7% 2. A ssured 12-month rolling figures (Q4 2019 to Q3 2020) for values excluding the acquisitions of Naturex, Vika and drom sites. These latter figures have not Light fuel oil 34,381 40,592 18% been assured by the third-party auditor. Heavy fuel oil 91,367 93,664 3% See the "Restatements of information" section for restatements. We are proud to be a member of RE100, a collaborative, global 3. A ssured 12-month rolling figures (Q4 2020 to Q3 2021) for values including initiative organised by the Climate Group in partnership with Biofuel 217 397 83% the acquisitions of Naturex, Vika and drom sites. CDP. It unites more than 300 influential businesses committed Biogas 0 76 to 100% renewable electricity and is part of our strategy to fully Biomass 23,776 22,626 (5%) convert our electricity supply. Steam sold from steam produced on site 25,294 30,735 22% Scope 1 and 2 emissions progress 2021 Replacing our fossil-based energy with renewable fuels like Geothermal 6,294 8,107 29% We made good progress towards our targets in 2021 with biofuels is also part of the strategy to reduce emissions, Waste used as energy 181,324 199,330 10% absolute total direct (scope 1) and indirect (scope 2) GHG particularly those related to the production of heat. Total direct energy 2,444,093 2,511,855 3% emissions decreasing by 75,600 tonnes. The evolution of Indirect energy: purchased absolute total scope 1 and 2 GHG emissions in 2021 vs. the 2015 electricity and steam (GJ) Energy – Progress 2021 Electricity purchased 1,231,837 1,217,506 (1%) baseline was –31%. Though we do not have a formal target in terms of energy Electricity purchased intensity – the quantity of energy required per tonne of product covered by Energy Attribute Our scope 1 and 2 GHG emissions intensity (GHG emissions/ – we have recorded a decrease of 0,7% for 2021 vs. 2020. Certificates – 1,026,918 tonne of product) decreased by 11% in 2021 vs 2020. Electricity sold 4,499 7,487 66% We have also made considerable progress in terms of Electricity self-produced Climate action leadership recognised by CDP renewable electricity supply (scope 2 GHG emissions) and are from renewable sources 5,135 8,528 66% Demonstrating our industry leadership in climate action and the on track to meet our target of converting our entire electricity Electricity self-produced transition to a low-carbon economy, we once again participated supply to fully renewable sources by 2025. We attained 84% from non-renewable sources 44,236 60,343 36% in the annual Climate Change CDP questionnaire for investors as renewable electricity supply in 2021 and 45 production sites Steam purchased 75,053 80,838 8% well as in the Climate Change Supply Chain questionnaire at the were powered 100% by electricity from renewable sources by Total indirect energy 1,307,527 1,299,385 (1%) request of a number of customers. This allows us to showcase our the end of the reporting year. Total energy 3,751,620 3,811,240 2% efforts to reduce GHG emissions and also provides a basis of 1. Assured 12-month rolling figures (Q4 2019 to Q3 2020) for values excluding comparison against other companies. Our CDP score was this the acquisitions of Naturex, Vika and drom sites. These latter figures have been We also reduced the GHG emission load per purchased KWh included in the reported values, but have not been assured by the third-party year an A (on a scale of A to D, with A being the highest) for of electricity by 45% for 2021 vs. 2020. auditor. See the "Restatements of information" section for restatements. Climate, at the leadership level once again. 2. Assured 12-month rolling figures (Q4 2020 to Q3 2021) for values including the acquisitions of Naturex, Vika and drom sites. 54 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Climate change Givaudan has already been recognised as a world leader in Disclosure 305 – 1, 305 – 2, 305 – 5 Disclosure 305 – 4 supplier engagement on climate change, earning a position Direct and energy indirect GHG emissions¹ GHG emissions intensity on the Supplier Engagement Leaderboard by CDP for 2020 GHG emissions (tonnes) GHG emissions (kg) per tonne of product (2021 score published at end of Feb. 2022), the non-profit global environmental disclosure platform, in recognition of , – 31% our actions and strategies to reduce emissions and lower climate-related risk across our supply chain. In 2021, just 2% of companies that participated and were scored in CDP’s , , questionnaire for investors made the A List. , , , Scope 2 One project, at our Taste & Wellbeing site at Pune in India, involved fitting more than 2,000 solar photovoltaic panels to 7 rooftops, ground mounts and carports to significantly cut , , , – 0% reliance on fossil fuels. The installation, which dedicated by 2030 about 5,300 square metres to the solar panels, resulted in electricity generation of about 971,520 KWh and represents a 20% cut in the use of fossil fuels and a carbon footprint 2015 2020 2021 2020 2021 reduction of 1,000 tonnes. Scope 1: from direct energy sources Scope 1: from direct energy sources Scope 2: from indirect energy sources Scope 2: from indirect energy sources Brazil example In Brazil, we aimed to migrate to 100% renewable electricity 1. Compared to baseline year 2015. Excluding biogenic emissions. Assured 12-month rolling figures (Q4 2020 to Q3 2021) for values including the Assured 12-month rolling figures (Q4 2020 to Q3 2021) for values acquisitions of Naturex, Vika and drom sites. on our sites by 2025. Our Brazil teams migrated our Jaguare including the acquisitions of Naturex, Vika and drom sites. and Botucatu sites to renewable electricity generated by wind. Migration was achieved in just 6 months, five years ahead of the 2025 target. No additional investment was needed and we anticipate we will deliver CHF 750,000 in savings over five years. 55 Givaudan — 2021 GRI Sustainability Report
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
A year in review Economic / Governance Environment Social Appendix Climate change Renewable carbon is all carbon sources that avoid or innovative processes, we also look at how we can reuse and Scope 3 model substitute the use of any additional fossil carbon from the recover process & waste side streams (upcycling). geosphere. Plants do this naturally and some technologies are evolution now able to do so as well. By increasing the use of renewable One excellent example is that of previously discarded solvents carbon, we drastically reduce the extraction of carbon from and oils that are now being reused in future production The modelling of scope 3 GHG emissions is the ground and limit the increase of CO₂ concentration in the stages. The project had an impressive impact, upcycling an iterative process based on science that atmosphere. This is well aligned with our journey towards 200,000 kg of solvent/oil in a 12 -month period, saving costs is still evolving. We started our efforts here nature-conscious creations. on raw materials and waste disposal fees and saving in 2017 with our first full scope 3 inventory 108 metric tonnes of carbon dioxide. based on financial activity data (input/ We employ green chemistry principles for efficient carbon output model) using the so-called ESHER use, meaning that all carbon atoms in the bio-based starting In designing innovative processes, we also look at how we can model. The model has since gone through material end up in the final product, resulting in zero carbon reuse and recover process side streams. By following green several evolutionary steps. We have begun waste and thus limiting carbon emissions. chemistry principles, we ensure ingredients are safe by design modelling our raw material with a and that our processes make efficient use of energy and process-based approach that applies the Biotechnology also holds enormous potential for carving out a materials while reducing water consumption and waste. As best available proxy data from verified more sustainable future for perfumery and for our planet. At an example, our latest sustainable ingredient is KoffeeUp™, a generic databases. We add granularity and Givaudan, it has already led to some extraordinary innovations. beauty oil crafted from upcycled Arabica coffee. KoffeeUp™ accuracy through the inclusion of For example, we can now use green chemistry including a has been called the “new argan oil” in the beauty industry additional packaging categories and new biotransformation step to produce the biodegradable ingredient because of its natural, eco-conscious and effective properties, classes of business travel. These Ambrofix®, an iconic molecule in perfumery, from sustainably which bring facial skin care benefits such as hydration, modifications imply potentially important sourced sugar. This results in 100% renewable carbon, in line with protection and anti-aging to customers. The product was increases or decreases in the data and our FiveCarbon Path™, the new Givaudan sustainability ambition developed in collaboration with Danish company Kaffe Bueno, modelling of our scope 3 emissions. This is for molecules, and uses 100 times less land compared to the a biotech start-up at MassChallenge Switzerland. This a necessary part of the journey and we will traditional production method starting from the clary sage plant. groundbreaking ‘upcycling’ approach helps us to reduce recalculate our baseline accordingly, as waste and minimise our environmental impact. required by GHG protocol to ensure Driving circularity and upcycling progress is diligently reported. We actively Upcycled materials are in essence low-carbon materials Optimising packaging, logistics and advocate for more transparency and because they are considered to be valorised waste streams. transport of goods alignment in this area by participating in With an allocation system based on value, the waste streams Packaging is a focus for many companies, including Givaudan, several relevant initiatives. are almost carbon-neutral materials and valorising them into and we work to reduce the impact of packaging on our CO₂e new products is beneficial: it both reduces the carbon footprint through several approaches. We plan to bring more footprint of our products and increases circularity in our circularity in our packaging, to use more renewable solutions, supply chain and reduces waste. This well-known practice to work on making packaging lighter and optimising it for has been applied for years in the industry because the same transport solutions, and to investigate reusable and recyclable principle applies to reducing costs and lowering stress on solutions, all while keeping safety and regulatory considerations scarce resources or unstable supply chains. In designing a top priority. 57 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Climate change keep travel to a minimum. We are continuing to invest in these remained stable compared to the previous year. This good The subject of packaging must be seen in the broader context of our own operations and our active participation in the capabilities, with our travel management team working on performance is the result of a global change in portfolio content, WBCSD plastics stream supports both our efforts to reduce the better tools to manage and reduce business travel emissions, with fewer carbon-intensive substances such as dairy products, overall impact of plastics and the environmental impacts of and it is an essential part of the GBS & IM&T 2025 strategy. and a decoupling of business growth and carbon emissions in packaging. We have several local initiatives to valorise that category. This number has to be considered with caution as packaging after it has been cleaned and this has a direct impact We also foster ideas and propose new commuting solutions the modelling is very sensitive to changes and potential on reducing our footprint and creating additional circular flow. directly to employees via our Green Team network. This tool developments in the field of carbon accounting and modelling. raises awareness and drives new ideas and solutions for local We nonetheless continue engaging internal stakeholders in the The optimisation of transportation is a complex topic for entities. Over the last few years we have been finding ways to scope 3 journey, aligning internal governance and building companies. We investigate current opportunities in alternative encourage everyone to reduce the GHG emissions of their scenarios for quantifying benefits. Raw materials are a prioritised fuels and optimised engines that can result in the reduction of daily commutes. We continue, for instance, to promote a category for carbon emission reduction as they represent about emissions and try to evaluate the impact of these initiatives. bike-to-work initiative at our Swiss sites, facilitating a carpool 78% of our scope 3 emissions. We will also work on optimising the network and switching the service internally and introducing charging stations at some maximum possible freight from high- (i.e., air) to low-emission of our sites to support the transition to electric vehicles. For example, RSPO certification from our palm oil sourcing (i.e., sea) modes of transport. This will also require a change in ensures that the sustainability claim at the end of the supply our operation processes and the way we manage customer Scope 3 progress in 2021 chain is credible. It also includes a beneficial impact on carbon demands to always keep customers highly satisfied. In 2021, we saw a slowdown in our scope 3 GHG emissions with emissions because RSPO-certified Palm Oil Production has a a decrease of 4% against the 2015 baseline figure. A detailed reduced carbon intensity of approximately 36% in kgCO₂e per We are working with suppliers to find collaborative measures explanation on progress per category is given below. For the kg of palm oil. As Givaudan covers part of its supply chain with or programmes to reduce our common emissions. One calculation methodologies please see page 84. certified palm oil, it also impacts our scope 3 inventory. In 2020, example of such a proposal is combining several orders into we were able to reduce the average CO₂e emission per kg of full container loads to reduce transport emissions. Cascading Compared to last year’s report, we have integrated some palm oil and palm oil derivatives by 5% compared to 2015 and commitments in the supply chains of suppliers is also a key recent acquisitions that have an important impact on the our efforts continued throughout 2021. element to driving action. overall performance of the company and have therefore modified our emissions profile. We also have to consider the For packaging, despite business growth, the estimated 2021 Finally, these two topics combine perfectly when packaging is impact of the COVID-19 pandemic situation in the analysis: as footprint is 92,000 tCO₂e, with a decrease of 0.1% compared optimised to reduce transport needs. Working on compacting an example, some 17,000 tCO₂e of the reduction are related to with the 2020 footprint. This stabilisation reflects both a more products and making sure that trucks are as full as possible is a decrease in business travel and employee commuting, efficient use of packaging and the reuse of some packaging how logistics efforts can drive reduction in our emissions. despite the growth of the company. While in this instance the items that then do not need to be purchased. It is also linked to a effects of the pandemic helped reduce emissions, in some reduction in certain product volumes in some factories: this Optimising business travel and employee other cases, such as distribution and logistics, it rather enabled us to reduce the amount of packaging, which offsets commuting contributed to an increase in emissions. Givaudan business growth and the related increased demand for The pandemic has drastically reduced the amount of business packaging. We are assessing ways of reducing our footprint, for travel and office-based employee commuting. Having the right Purchased goods and services example, by reducing the weight of our packaging and using technology and digital collaboration tools in place has meant For the raw materials category, the 2021 figure decreased by alternative packaging with more sustainable and renewable that we have been able to maintain business productivity and 0.8% in absolute terms compared with our 2015 baseline and materials content. 58 Givaudan — 2021 GRI Sustainability Report
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
A year in review Economic / Governance Environment Social Appendix Climate change Capital goods Disclosure 305 – 3 Capital goods figures increased by 8% in 2021 compared to Other indirect (scope 3) GHG emissions the base year 2015 despite an important reduction of 23% GHG emissions (tonnes) 2015 (restated) 2020(restated) 2021 between 2020 and 2021. This reflects changes in the amount Purchased good and services 1,917,037 1,901,374 1,902,794 of capital expenditure modelled. With a spend-based model Raw materials 1,691,701 1,676,242 1,677,400 on secondary data, it is not yet possible to reflect specific Other Indirect materials & services categories (excluding existing categories) ¹ 146,856 132,686 133,055 supplier performances in this category. Packaging 78,480 92,446 92,339 Fuel- and energy-related activities Capital goods ¹ 51,722 72,797 56,003 (not included in scope 1 or 2) Fuel and energy related activities 105,744 68,001 36,349 Upstream transportation and distribution 29,674 42,320 39,990 In fuel- and energy-related activities, we have made good Waste generated in operations 19,321 22,644 24,084 progress since 2015 with an absolute reduction of 66% due to the Business travel 24,461 12,587 1,794 increase in the supply of renewable electricity. This is excellent Employee commuting 21,516 20,454 13,277 progress, and we are continuing efforts to reach 100% renewable Downstream transportation and distribution 54,615 56,099 65,297 energy sources, which will again reduce our scope 3 in this Outbound product to customers 39,503 38,172 42,343 category. We can also mention that the reduction of intensive Outbound intercompany deliveries 15,112 17,927 22,954 electricity energy sources like coal supports the reduction of scope Total 2,224,090 2,196,276 2,139,587 3 emissions and is aligned with our overall climate journey. 1. These two categories do not include data for the recent acquisitions of Naturex, Vika and drom. Upstream and downstream transportation and distribution In 2021, we increased the total absolute emissions for transport by 25% compared to 2015. An important increase of 7% took Disclosure 305 – 6 Disclosure 305 – 7 place between 2020 and 2021. This is related to the COVID-19 Emissions of ozone-depleting substances (ODS) Nitrogen oxides (NOX), sulphur oxides (SO₂), and other pandemic and the logistics situation, which required the use of significant air emissions 2020 carbon-intensive modes of transport to mitigate potential (restated in 2021) ¹ 2021 ² 2020 disruption in supply. With about 5% of our total scope 3 CFC inventory (kg) 7,639 3,881 (restated in 2021) ¹ 2021 ² emissions coming from transport, this is a topic we integrate CFC 11 equivalent inventory (kg) 783 574 Nitrogen oxides – NOₓ (tonnes) ³ 66.71 69.28 into our carbon reduction management approach. CFC loss-replacement (kg) 765 526 Sulphur dioxide – SO₂ (tonnes) ³ 96.84 98.37 CFC 11 equivalent loss/ Volatile organic compounds We are assessing ways to reduce our footprint through, for replacement (kg) 42.08 28.91 (tonnes) 1,018 1,069 example, consolidation and distribution network design. We 1. Assured 12-month rolling figures (Q4 2019 to Q3 2020) for values 1. Assured 12-month rolling figures (Q4 2019 to Q3 2020) for values are also assessing opportunities to switch modes of transport, excluding the acquisitions of Naturex, Vika and drom sites. These latter excluding the acquisitions of Naturex, Vika and drom sites. These latter figures have been included in the reported values, but have not been figures have been included in the reported values, but have not been but such changes impact the whole value chain and operation assured by the third-party auditor. assured by the third-party auditor. strategy. Time and careful assessment are needed to make See the "Restatements of information" section for restatements. See the "Restatements of information" section for restatements. 2. Assured 12-month rolling figures (Q4 2020 to Q3 2021) for values 2. Assured 12-month rolling figures (Q4 2020 to Q3 2021) for values sure improvements are implemented to last and show long- including the acquisitions of Naturex, Vika and drom sites. including the acquisitions of Naturex, Vika and drom sites. 3. Q uantity is calculated by multiplying the annual fuel consumption by the term reduction. The challenge is to integrate these actions into corresponding emission factor for fuel type. 60 Givaudan — 2021 GRI Sustainability Report
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
A year in review Economic / Governance Environment Social Appendix Climate change Budget and financial mechanisms climate. The Sustainability Leadership Team, led by the Global modelling. We also contributed to the WBCSD Value Chain Budget and financial mechanisms are also important enablers, Head of Sustainability, is made up of internal experts on topics Carbon Transparency Pathfinder initiative dedicated to and we have a dedicated budget for energy efficiency. linked to purpose / sustainability. enabling standardised exchange of information or carbon Accordingly, and compared to the standard, extra capital is emissions data between companies. allocated to the design and construction of new greenfield Still, we know that we cannot achieve this alone. Externally, we facilities with higher energy-saving design standards. seek to partner with our suppliers, customers and communities. For example, we work together with local communities on We have also identified and agreed on an internal price of projects and causes that benefit the communities where we carbon mechanism to employ for our scope 1 and 2 emissions work. We define local communities as persons or groups of reduction projects. We are currently running proof of people living and/or working in any areas that are economically, concepts with representative real projects before rolling out socially or environmentally impacted (positively or negatively) the process globally. by Givaudan’s operations. The local community can range from people living adjacent to operations to isolated settlements at Advocacy and promotion a distance from operations that may experience the impacts of Givaudan’s involvement in numerous engagement activities these operations. On most sites, formal relationships have demonstrates our ambition to help mitigate climate change been established with local authorities and with significant and our desire to work in a broad global partnership of organisations representing neighbours, or working on specific proactive companies dedicated to making a positive difference. environmental and social issues. Examples include our membership of the International We built partnerships with non-profit organisations and Fragrance Association (IFRA) and the International support these local communities through a variety of social Organization of the Flavor Industry (IOFI); RE100, an initiative and environmental projects. This includes climate-related uniting more than 100 influential businesses committed to projects, from working with farmers on reforestation in 100% renewable electricity; Business ambition 1.5°, an urgent Indonesia to supporting schools in Madagascar, Laos, the call to action from a global coalition of UN agencies, business Comoros islands and Haiti. and industry leaders; the UN Global Compact, a strategic policy initiative for businesses committed to aligning their operations Internally, we are getting organised with cross-functional and strategies with 10 universally accepted principles in the teams delivering training on specific topics related to carbon areas of human rights, labour, environment and anti-corruption management, CO₂e emission modelling or supplier engagement and, finally, the Renewable Carbon Initiative. to internal stakeholders. Partnership and governance In addition, Givaudan joined the Together for Sustainability In terms of governance, the Executive Committee leads organisation this year and, more specifically, engaged in their Givaudan’s overall strategic direction and is accountable for scope 3 workstream, which is developing partnerships our purpose and Sustainability ambitions, including those on between chemical companies on scope 3 management and 62 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Waste management & circular principles Material topic definitions Pursuing a culture of waste elimination by adequately Our efforts in all of these areas extend beyond Givaudan to managing all of Givaudan’s waste streams through, for include the supply chain, as detailed in the chapter on This chapter addresses our following two material topics: example, recycling and reuse or ensuring recovery or disposal Responsible Sourcing & Traceability. Waste management & circular principles in an environmentally sustainable way, helps us limit our impact on the environment; reducing waste also allows us to Boundary Pursuing a culture of waste elimination by adequately lower the costs of production. Making better choices about • Givaudan managing all Givaudan’s waste streams, from product what natural resources to use in the manufacturing and • Suppliers design and manufacturing processes to packaging and use. packaging of our products helps us protect the precious natural environment and not squander the resources it provides. Disclosure 103 – 2, 103 – 3, 306 – 1, 306 – 2 Purpose pillars MANAGEMENT APPROACH CREATIONS NATURE PEOPLE COMMUNITIES We have set a waste management target to reduce incinerated Protecting the environment means acting on waste and our and landfilled waste production per tonne of product by an goal is to continually reduce the waste generated by our Raw materials availability average of 4% year on year. We are currently working on a business activities including product and process development, new target. manufacturing, formulation, packaging, marketing and Ensuring a stable supply of raw materials used in distribution. Our decisions about what materials to use also Givaudan’s products by strengthening partnerships with Careful waste management and the application of circular have consequences in terms of waste and we strive to reuse or strategic suppliers and diversifying our portfolio through principles also help us meet stakeholder expectations. As an recycle materials where possible. new technologies (for example, upcycling, or innovation to example, plastic waste is a topic that has drawn considerable create alternative ingredients) and sources of supply. public attention in recent years. Applying the principles of a We work hard to limit the amount of waste we produce through circular economy here is no longer seen as a mere trend, but a three-pronged process based on the key concepts of ‘rethink,’ Purpose pillars rather as an essential activity and we are committed to 100% ‘reduce,’ and ‘recycle’. We are rethinking how processes are done CREATIONS NATURE PEOPLE COMMUNITIES plastic circularity by 2030. We also see plastic as a business currently and challenging our ways of working. We are reducing opportunity, an enabler to grow and show our leadership in the amount of waste we create as a by-product of our processes; sustainability. We are convinced by the value of renewable then we reuse where possible and recycle in an effort to move carbon, whether it comes from recycled, bio- or GHG-based away from disposal in landfill or incineration. Where waste is Disclosure 103 – 1 sources: the carbon that can be recuperated serves as the incinerated, we make sure energy is recovered. EXPLANATION OF THE MATERIAL TOPIC building blocks of new renewable materials. Givaudan is AND ITS BOUNDARY supporting this concept through its involvement with the One of the ways we are getting closer to our waste management Waste management and circular principles that support us in Renewable Carbon Initiative, which aims to speed up the targets is by putting more emphasis on notions ingrained in the minimising the extraction of natural resources and the transformation from fossil fuel carbon to renewable carbon. idea of the circular economy, a generic term for an industrial generation of waste, in fostering waste prevention and economy where waste should not exist anymore, and closed optimising environmental, material and economic values loop uses are favoured. We apply circular principles in sourcing, throughout the life cycles of our products are critical elements product design, manufacturing and packaging. to living our purpose and showing our love for nature in everything we do. Another important element of our approach is our new commitment to replacing all single-use plastics across sites 63 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Waste management & circular principles and operations with eco-friendly alternatives before 2030. Optimising our approach to packaging in respect to ecological opportunities that result from technical innovation and/or For Givaudan it means concretely moving towards 100% and economic criteria also helps us reduce our impact. For availability of recycling options are to be evaluated on a regular plastic circularity. example, in India we have turned to local sources for glass basis as a part of the environmental programme of each site. We sampling bottles instead of continuing to import them from are also tackling single-use plastics across our sites and More generally, we approach waste management in the Europe. This has helped us reduce costs, lead times as well as operations with an ambition to replace them with eco-friendly following ways: our carbon footprint as the bottles are no longer being alternatives before 2030. imported. At our Vernier, Switzerland site we have replaced Procurement some metallic drums, generally used once, with cardboard Upcycling In procurement, we give preference to options that avoid boxes for uses including shipping. This new packaging is six We look to minimise waste by using recycled materials and hazardous waste, result in reduced quantities of waste or in times less expensive than the drum and much lighter, reducing incorporating elements of the circular economy, reusing the increased recycling. We prefer to use raw materials of higher our carbon footprint even more. We should be able to use by-products of our processes to create additional products quality or with less impurity when this leads to reduced these cartons with about 70% of the annual volume. The other when we can. Upcycling, or creative reuse, guides us in amounts of unwanted by-products. We favour reusable 30% is made up of products that can only be shipped by drums. packaging and transport systems. If reusable packaging is not More generally, reusability and recyclability are other important feasible, we prefer to select packaging materials that are factors to consider when looking to minimise waste in new recyclable and for which a recycling option exists. We give product and transport packaging concepts. EAST HANOVER, USA preference to equipment with an extended lifetime, that is, Upcycling discarded which offers features such as robust construction, Production and operations upgradeability, repair friendliness, and with a reduced need for In terms of production and operations, we develop and solvents auxiliary material such as filters and oils. Please see the chapter guarantee a safe and environmentally sound waste on Responsible Sourcing & Traceability for more information. management approach before new processes and activities Our site at East Hanover, USA produces are started. This is managed through each site’s obligatory both liquids and naturals and our aim was Products and processes and packaging waste management system, which is uniformly applied to reduce both waste and greenhouse gas In the research and development of products and processes, we throughout the site or organisational unit. The system must emissions. For liquids, the team created a prioritise solutions that avoid waste, result in reduced waste ensure that there is an unbroken chain of responsibility and process that recovers and reuses oils from quantities or in increased recycling. We seek an increase of yield or documentation for all waste from generation to final disposal washed extracts so that the discarded in material productivity, a reduction of material input/consumption, (cradle to grave) and that we comply with applicable national citrus oils can be reused for future in-process recycling and possibilities for the segregation of and local legislation on waste. Various relevant responsibilities products. In naturals, the team identified hazardous components from waste streams. We give preference to are covered, respectively, by the site manager, the waste how solvents such as alcohol and ethyl raw materials with a reduced environmental footprint, for example producer, the site EHS manager, the Product and Process acetate can be recovered and reused. These those that are less hazardous or that have a lower environmental Development function, the Corporate and Site Procurement modifications resulted in 190,000 kgs of impact in their production, and to those that come from renewable function and Divisional Management. upcycled solvent/oil in a 12-month period, sources. Finally, we take into consideration the different possible saving $30,000 on waste disposal fees and direct and indirect pathways of the products (including disposal of Production planning must consider all options of preparation for $616,000 on raw materials. This also saved unused products) into various waste streams at the end of their reuse and recycling (e.g., of solvents) to increase material us 108 metric tons of carbon dioxide. lives already during product development. productivity and to minimise waste streams. Waste optimisation 64 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Waste management & circular principles continuing to innovate and improve our ingredients portfolio This gave us the idea to upcycle the seeds into a natural to reduce the negative impact of our products. Externally, we ingredient to address skin dryness, irritation, and desquamation of all our waste in 2021 was engage with customers to develop new products and caused by lipid barrier damage. 76% diverted from disposal. technologies that are more sustainable in this way. Rethinking plastics – plastic circularity For example, in 2021 we introduced Omegablue®, a cosmetic We are determined to manage our use of plastics in a Anticipation is key to doing good things in a good way and we will ingredient created from upcycled wild bilberries. Traditionally responsible, sustainable way. While we believe that plastic is a be guided by a strategy that supports our long-term vision for used in the food industry for their juice and sugar, bilberries are useful and necessary material that presents many advantages, sustainable plastics. This strategy is articulated around three main also an excellent source of anthocyanidins, which are extracted we are concerned about its end of life and are determined to axes: designing our packaging to be more circular, increasing the from the pulp and fruit skin for the supplement and improve it. Though we intend to use plastics in our operations renewable materials content and improving the system for the pharmaceutical industries. The tiny seeds of the berries contain for the foreseeable future, we need to ensure that our approach end-of-life of our plastics. The first step, which is integrated into up to 20% of linoleic acid (omega-6) and α-linolenic acid is sustainable. Our long-term vision for sustainable plastics each axis, is to reduce plastic usage and consumption in all our (omega-3) in an optimal ratio. Both are known for their involves applying the principles of the circular economy and actions. Our partnerships and system tools will also be powerful capabilities to improve hydration and skin barrier functionality. focusing on the key principles of Rethink, Reduce, Recycle. enablers. We will use plastic circularity to engage employees and also as a common platform for speaking with customers. Our plastics We are committed to replacing all single-use plastics across sites and operations with eco-friendly alternatives before 2030. For our Progress in 2021 strategy REDUCE business, this means moving towards 100% plastic circularity. This Waste requires us to be innovative in terms of plastics type, processes During the course of 2021, the amount of waste sent for and technologies, as well as to rethink our business models. incineration with and without energy recovery and landfill per tonne of product increased by 9% compared to last year’s figure. When talking about plastics, we are small in quantity and high in This is mostly due to an evolution in the product mix as well as Design for complexity compared to the packaging industry. Our main to specific liquid discharges being separated from the circularity challenges are that our plastics are complex due to their required wastewater flows and being treated separately. If we compare functionality and that the products they contain may make 2021 waste for disposal (waste sent for incineration with and 100% them difficult to recycle in conventional ways. In addition, there without energy recovery and landfill) per tonne of product vs. Increase are few relevant sources of food-grade recycled plastics available the 2015 figure, we see a reduction of 2%. If we were to compare CIRCULARITY renewable materials for our applications. the same metrics in 2021 and 2015 with a like-for-like approach, performance would be even better with a reduction of 6%. There is a sense of urgency in solving environmental issues, Improve especially the ones in relation with plastics, and urgent solutions In total, we diverted 76% of all our waste from disposal in 2021. the system are required, but achieving 100% plastic circularity will be a long- The amount of waste diverted from disposal per tonne of term journey. The way forward will require business agility and product has increased by 44% since 2015. The reduction of the anticipation of trends. It may also require investments. This is landfill is also a priority and half of our sites (31 out of 62) are why it is important to remain positive and resilient on the topic. without landfill waste. PARTNER & SYSTEMS 65 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Waste management & circular principles Plastics Disclosure 301 – 1 Disclosure 306 – 3 Now at the beginning of our journey to 100% plastic circularity, Materials used by weight or volume Waste generated we have a strategy and a roadmap for replacing all single-use 2020 plastics by eco-friendly alternatives by 2030. We have appointed Waste (tonnes) 2015¹ (restated)² 2021³ a Global Head of Plastic Circularity, set up a cross-functional Hazardous waste 26,219 34,085 43,026 team and have drawn up new governance to facilitate the TOTAL Non-hazardous waste 36,758 69,152 81,021 implementation of solutions in our operations. During 2021, this WEIGHT OF One-off waste⁴ 2,219 2,509 2,354 enabled us to develop guidelines to help our teams on the 57% PURCHASED 43% Total waste 65,197 105,746 126,401 ground. We are also developing educational tools to share RAW renewable MATERIALS ¹ non-renewable 1. Assured 2015 full-year figures. These values exclude the acquisitions of knowledge, learnings and information. Naturex, Vika and drom sites. raw materials raw materials 2. Assured 12-month rolling figures (Q4 2019 to Q3 2020) for values excluding the acquisitions of Naturex, Vika and drom sites. These latter figures have One of the first things we did was to increase the plastic been included in the reported values, but have not been assured by the third- party auditor. knowledge of our teams and equip them on the topic of 1. The figures refer only to the volume of ingredients from the Cardex and the See the "Restatements of information" section for the restatements. understanding plastics, how they are produced, used and Palette used for fragrance and flavour products as shown in 2021 table below. 3. A ssured 12-month rolling figures (Q4 2020 to Q3 2021) for values including the acquisitions of Naturex, Vika and drom sites. managed at the end of the life cycle. In June 2021, at our 4. This indicator measures the total quantity of waste that is not directly related headquarters in Switzerland, we organised a booth on plastics Weight of purchased raw materials (tonnes) 2020 2021 to the daily operations, but is categorised as one-off waste. Total 568,554 591,088 Examples of waste in this category are waste materials coming from to spread knowledge and support teams on the best way to act demolition or remediation activities or waste or raw materials following an at every level. With our sites worldwide, we are now preparing unusual incident, e.g., a fire. a toolkit on plastic that will help them to share important Weight of purchased packaging (tonnes)¹ 2020 2021 information on the matter. A detailed ‘Plastic Book’ is being Plastic 8,734 9,253 prepared to better understand our detailed plastic footprint: Steel/Metal 15,347 14,613 this is essential for setting priorities, being ready for new Fibre 627 226 regulations or compliance schemes, and following our progress. Paper/Board 2,986 2,985 External partnerships can also play a role in speeding up Wood 8,906 10,438 transformation and generating benefits. Total 36,600 37,515 1. Those figures do not include Naturex, Vika and drom. READ MORE 2021 integrated report ▸ Our purpose commitment to responsible sourcing ▸ pages 101–103 66 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Waste management & circular principles Disclosure 306 – 4 Disclosure 306 – 5 Waste diverted from disposal Waste directed to disposal 2020 2020 In tonnes 2015 ¹ (restated) ² 2021 ³ In tonnes 2015 ¹ (restated) ² 2021 ³ Hazardous waste Hazardous waste Preparation for reuse ⁴ – 12,495 Incinerated without energy Onsite – 3,003 recovery offsite 4,412 5,853 5,917 Offsite – 9,492 Incinerated with energy Recycling – 9,150 recovery 6,337 7,042 8,225 Onsite – 36 Onsite – – 1,529 Offsite – 9,114 Offsite – – 6,695 ⁴ – 7,103 Landfilled (offsite) 318 221 137 Other recovery operations Total hazardous waste 11,067 13,116 14,279 Total hazardous waste 15,152 20,969 28,748 Non-hazardous waste Non-hazardous waste Incinerated without energy ⁴ – 1,621 Preparation for reuse recovery (offsite) 1,153 1,318 1,256 Onsite – 19 Incinerated with energy Offsite – 1,601 recovery 1,076 2,336 3,610 Recycling – 63,814 Onsite – – 0.02 Onsite – 1,101 Offsite – – 3,610 Offsite – 19,315 Landfilled 6,412 9,635 10,233 ⁴ – 16,420 Composted (offsite) Total non -hazardous waste 8,642 13,289 15,099 Biogas production (offsite) ⁴ – 26,978 Total waste 19,709 26,405 29,378 Other recovery operations ⁴ – 487 1. Assured 2015 full-year figures. These values exclude the acquisitions of Total non-hazardous waste 28,117 55,863 65,921 Naturex, Vika and drom sites. 2. Assured 12-month rolling figures (Q4 2019 to Q3 2020) for values 1. Assured 2015 full-year figures. These values exclude the acquisitions of excluding the acquisitions of Naturex, Vika and drom sites. These latter Naturex, Vika and drom sites. figures have been included in the reported values, but have not been 2. Assured 12-month rolling figures (Q4 2019 to Q3 2020) for values assured by the third-party auditor. excluding the acquisitions of Naturex, Vika and drom sites. These latter See the "Restatements of information" section for restatements. figures have been included in the reported values, but have not been 3. Assured 12-month rolling figures (Q4 2020 to Q3 2021) for values assured by the third-party auditor. including the acquisitions of Naturex, Vika and drom sites. See the "Restatements of information" section for restatements. 3. Assured 12-month rolling figures (Q4 2020 to Q3 2021) for values including the acquisitions of Naturex, Vika and drom sites. 4. This data was not collected in 2015. We started to include this category in our reporting in 2020. In the past, this treatment was included in the recycling processes. 67 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Water stewardship Material topic definition We also recognise that access to fresh water and sanitation driven by our Purpose. The policy emphasises our commitment Water stewardship services are an essential human right. Therefore, we strive to to water stewardship: we strive to drive a positive impact in protect water resources and promote global access to Water, watersheds where we source and operate. In our operations, we Optimising the use of intake water and ensuring the Sanitation and Hygiene (WASH) principles, seeking to guarantee are looking to secure water supply and optimise water use and quality of discharged water. Assessing and addressing access to water to all our employees and to vulnerable continuously improve how we manage effluent discharge. In our water risks at owned operations and in our supply chain communities in the areas where we source and operate. supply chain and in our communities, we are mitigating water to minimise impact on the environment and society in the risk and improving water quality management aspects. We look areas where we source and operate. We are confident that managing water as a precious resource to foster sustainable water use at the watershed level and and reusing it as much as possible will allow us to mitigate improve access to water, sanitation and hygiene, thus supporting Purpose pillars watershed challenges and to improve the lives of everyone along communities to thrive. The policy is also used to guide our CREATIONS NATURE PEOPLE COMMUNITIES our value chain. growth strategy in terms of location, technology and procedures. We put emphasis on places where water stress is expected, Driven by our purpose, we must lead the way by delivering on carrying out detailed risk assessments to develop water Disclosure 103 – 1 our own ambitious commitments while harnessing the power of mitigation action plans, including efficiency improvements and EXPLANATION OF THE MATERIAL TOPIC collaboration across sectors to drive change. Givaudan is striving water reuse opportunities. AND ITS BOUNDARY to be an industry leader in conservation and stewardship, and Shared water challenges associated with climate change and we look to use water in a socially equitable, environmentally Specifically, we act as a role model in water stewardship, working extreme weather events are likely to increase in frequency and sustainable and economically beneficial manner. to protect water-dependent ecosystems and encouraging the intensity in the coming decades. Declining water quality, long- sustainable use of resources. In our operations, our targets are, by lasting droughts and increased water stress are all elements Boundary 2030, to improve water efficiency by 25% on sites facing water identified as material water risks faced by some of our operations • Givaudan stress - defined as the ability, or lack thereof, to meet human and and supply chains. We need to work collaboratively with our • Suppliers ecological demand for fresh water - compared to 2020 levels and neighbours - including suppliers, local partners and communities continuously improve water efficiency on all other sites. A full - to address challenges at the watershed level so we can Disclosure 103 – 2, 103 – 3, 303 – 1, 303 – 2 100% of our wastewater discharge will meet or exceed regulatory regenerate stressed watersheds and mitigate water risks. MANAGEMENT APPROACH and industry standards by 2030. In our supply chain and in our Responsible use of water is essential to the company’s leadership communities, our goals are to improve and protect water quality Water is essential to our production activities and to our entire and we believe that our business model must be fully aligned and quantity in our priority natural supply chains and improve value chain. In operations, we use water primarily for hygiene with, and contribute to, sustainable water management in the access to water, sanitation and hygiene (WASH) in vulnerable and cleaning, cooling and processing. Additionally, our use of key water basins where we source and operate, particularly in communities where we source and operate. These latter goals water generates wastewater, and we need to ensure that it is high water-risk basins. We intend to champion water contribute towards the Communities goals of our purpose. treated appropriately before being discharged to the stewardship, working to protect water-dependent ecosystems environment. In our supply chain, water use is related to the raw and encouraging the sustainable use of water resources. materials that rely on agricultural irrigation and to the synthetic raw materials that require water in production. Our overall strategy for monitoring and reducing water Water is a local issue and needs consumption is embodied in our Water Policy, an approach based on the UN Global Compact’s CEO Water Mandate and to be addressed locally. 68 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Water stewardship Our response to increasing water challenges SHARED WATER CHALLENGES OUR OPERATIONS Droughts / Water stress / Declining water quality / WASH Targets Means • We will improve water efficiency by • Drive continuous improvement to site 25% on sites facing water stress water use by applying the 3R approach: compared to 2020 levels Reduce, reuse, recycle • We will continuously improve water • Implement wastewater standard in efficiency on all other sites addition to the regulatory requirements • 100% of our wastewater discharge • Conduct annual contextual water risk will meet or exceed regulatory and assessment using the Aqueduct Water industry standards Risk Atlas • Track site water quantity and quality KPIs within our operations both for water withdrawal and water effluents SUPPLY CHAIN AND COMMUNITIES ¹ Goals Means OUR LOCAL • We will improve and protect water • Work in partnerships with experts and OPERATIONS PARTNERS quality and quantity in our priority communities natural supply chains • Assure all manufacturing facilities provide • We will improve access to water, adequate WASH services sanitation and hygiene (WASH) in • Engaging with suppliers regarding their SUPPLIERS vulnerable communities where we employees’ access to WASH services through our COMMUNITIES source and operate Responsible Sourcing programme, Sourcing4Good and promote the use of CDP Supply chain programme to share water stewardship data and monitor suppliers’ performances • Promote regenerative agricultural practices Water is a precious natural resource that and better use of irrigation we are committed to protecting. 1. These goals contribute towards the Communities ambition of our purpose. 69 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Water stewardship Our targets and goals are aligned with the United Nations Water use Source of water withdrawal in our operations Sustainable Development Goals, and we focus our attention Our water footprint indicates that 97% of our water use can specifically on activities related and contributing to SDG 6 be accounted for by consumption in the supply chain. This is 14% 50% (Clean water and sanitation) and SDG 12 (Responsible primarily linked to the agricultural irrigation of the natural Ground Surface consumption and production) to ensure we contribute to raw materials we source. The availability and quality of water water water safer and more sustainable company development. Our policy is then highly important to our sourcing as it has an impact on also follows best practices from the UN Global Compact’s the quality and the availability of certain raw materials. In 36% CEO Water Mandate, which we endorsed in 2020. order to manage this impact, we leverage our engagement beyond our own operations and address the issue in our Municipal We carry out periodic corporate risk assessments that include supply chains. water both water- and climate-related risks as we recognise the strong link between the two topics. This allows us to identify Onsite direct water use and energy accounts for an additional relevant exposures and perform analyses that are specifically 2% of our consumption, while the final 1% is linked to logistics million m³ related to the watershed-level context. and packaging. The diagram below shows the distribution of 1Water consumed We report annually to the CDP Water Security questionnaire our global water footprint. 10 million m³ ~ and strive for continuous improvement as part of our water ~ Water withdrawed resources management and stewardship commitments. 9million m³ ~ Water discharged Givaudan's water consumption Operations Based on 2018 Corporate water footprint In our operations, we want to set clear objectives to optimise water efficiency, with a focus on water stressed areas and Upstream activities Downstream activities wastewater treatment. Our business operations are fully aligned with and contribute to the sustainable management of water in the key watershed basins in which we work. We intend to be a role model in water stewardship by working to Raw material Onsite direct water use Logistics and packaging protect water-dependent ecosystems and encouraging the 97% and energy 2% 1% sustainable use of water resources. The majority of the water withdrawal in our operations is taken from surface water; other sources are municipal supplies and groundwater. 70 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Water stewardship Our use of water generates wastewater, and we ensure that Our sites in water stressed areas this water is treated appropriately before being discharged to the environment. Such treatment can range from full primary Extremely high (>80%) High (40-80%) Medium high (20-40%) Medium low (10-20%) Low (<10%) and/or secondary on-site treatment before discharge to the Arid and low water use No data environment, to partial primary and/or secondary pretreatment Taste & Wellbeing Fragrance & Beauty before the wastewater is sent to third-party sewage, to direct discharge into the environment because of its flawless quality, etc. We ensure that our wastewater meets or exceeds regulatory and industry standards by monitoring parameters such as pH, chemical oxygen demand (COD), biochemical oxygen demand (BOD), fat, oil and grease (FOG), total nitrogen, total phosphorus, total organic carbon, temperature, heavy metals, etc., at least as frequently as requested by local legislation and industry standards. On sites that are not deemed to face particular water stress, we will in any case drive continuous improvement to site water use through the 3R approach. Casablanca Cairo On all sites, we will implement our wastewater standard, Pedro Escobedo Cuernavaca highlighting requirements to be fulfilled by all sites in addition to Pune Jigani regulatory requirements. We will also conduct annual contextual water risk assessments using the Aqueduct Water Risk Atlas developed by the World Resources Institute, and review and update the list of sites in water stress areas accordingly. We will Jaguaré Johannesburg also track site water quantity and quality KPIs within our Linares operations for both water withdrawal and water effluents. Our sites continually review hotspots and introduce technical Source: WRI Aqueduct 2019 Baseline Water Stress improvements that drive our water efficiency strategy. We put a special focus on places facing water stress to develop mitigation action plans that include efficiency improvements cleanings and utilities-related consumption including water and reintroduced as water inputs whenever possible in terms and water reuse opportunities. In terms of improvements in treatment, steam and cooling that use water. Once all of quality, safety and cost. Our new water strategy has efficiency, we first focus on the basics, looking to avoid any continuous improvement opportunities have been tackled, the identified 9 sites as being in water-stressed areas. leakages and ensuring preventive maintenance. The next step next move involves a step change, moving towards semi- is to look at the production processes such as CIP, overall closed or closed loops wherein the discharged water is cleaned 71 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Water stewardship Operations water risk management We continue to work to ensure that the wastewater from our In addition to updated water risk assessments for sites located operations is disposed of responsibly and to monitor its HUMA in water stress areas and the review of wastewater discharge quality, especially through Chemical Oxygen Demand (COD) Water management compliance to regulatory and industry standards, we manage analysis, an indicator of water quality or pollution. The total improvement water risk in our operations through periodic corporate risk quantity of COD discharged was measured at 245 tonnes in assessments. They allow us to identify relevant exposures and 2021, a 14% decrease over 2020. In Hungary, we first used statistical data perform analyses at the watershed level. Assessments include analysis and a detailed study of the all Givaudan production facilities and consider indicators In 2021, Givaudan’s overall water intensity (municipal and on-site water network to identify where covering aspects related to physical scarcity, quality, reputation, ground water/tonne of product) remained flat against 2020. water use was highest. The local team regulation and flooding risk. We use internal knowledge as well Focusing on the key sites located in water-stressed areas, then implemented specific projects to as criteria linked to production volume and risks in terms of there was important improvement with a decrease of 4% optimise existing technologies in the water withdrawal to prioritise the facilities. since 2020 for the same indicator. washing process and reduce water consumption, allowing us to improve the In our sites facing water stress, we drive continuous cleaning process of equipment on site, all improvement in water use through a number of measures. Water efficiency ¹ while using less water. By the end of the This includes applying the 3R, or reduce, reuse and recycle In m³ per tonne of production third quarter of 2021, this water approach; assessing opportunities and implementing projects . . consumption translated to an estimated to reduce our water withdrawal; applying water circularity 6.2 m³/ton, a further 6.6% reduction in principles in and around our production sites as well as specific water volume compared to the implementing new technologies to reuse and recycle water in 6.6 m³/ton in 2020. our operations. Our actions and progress Some practical approaches to improving site water use have 2020 2021 included switching processes that currently use municipal 1. Includes third-party water (municipal supplies / purchased water) and water to our existing cooling tower loop, meaning we were groundwater. able to reduce the amount of municipal water required for cooling. Another is the installation of automatic valves to manage water needed for purging product dust from In 2021, CDP again recognised our leadership in water security by recirculating scrubber water. There are many water-saving giving Givaudan the highest ‘A’ score for the third year in a row. initiatives ongoing at Givaudan sites worldwide, from on-site This recognition follows a leadership score for climate action and biological treatment of wastewater and subsequent reuse in places the Company in the double ‘A’ category of best performing the Netherlands to rainwater harvesting in India. businesses in terms of mitigating environmental impact. 72 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Water stewardship Disclosure 303 – 3 Disclosure 303 – 4 Water withdrawal Water discharge 1. Assured 12-month rolling figures (Q4 2019 to Q3 2020) for values 2020 2020 excluding the acquisitions of Naturex, Vika and drom sites. These latter Water intake (m³) ¹ (restated) ² 2021 ³ (restated figures have been included in the reported values, but have not been Surface water 4,923,265 5,088,104 Water discharge (m³) in 2021) ¹ 2021 ² assured by the third-party auditor. Fresh water ⁴ – 5,088,104 To the environment See the "Restatements of information" section for restatements. w/o biological treatment 3,832,499 4,414,878 2. Assured 12-month rolling figures (Q4 2020 to Q3 2021) for values Other water ⁴ – 0 Surface water – 4,368,133 including the acquisitions of Naturex, Vika and drom sites. Groundwater 1,561,661 1,390,612 Fresh water – 3,853,411 Fresh water ⁵ – 1,353,985 Other water – 514,722 We cannot report data on water discharge per destination Other water ⁵ – 36,627 Groundwater – 33,126 because we do not currently measure it this way, but rather Seawater – 547 Fresh water – 33,126 by treatment method and by distinguishing between what is Third-party water – purchased water 3,205,348 3,495,105 Other water – 0 discharged to the environment and what is sent to an external Rainwater collected directly and stored Seawater – 13,619 treatment facility. by the reporting organization 13,200 14,099 Fresh water – 13,619 Third-party water – wastewater from Other water – 0 Disclosure 303 – 5 another organisation 275,828 248,004 Water consumption Total water ² 9,979,302 10,236,472 To the environment after biological treatment 2,131,546 2,076,603 2020 1. Assured 2015 full-year figures. These values exclude the acquisitions Surface water – 1,623,716 (restated of Naturex, Vika and drom sites. Fresh water – 301,124 In m³ in 2021) ¹ 2021 ² 2. Assured 12-month rolling figures (Q4 2019 to Q3 2020) for values Water consumption ³ 1,343,328 1,006,734 excluding the acquisitions of Naturex, Vika and drom sites. These latter Other water – 1,322,592 figures have been included in the reported values, but have not been Groundwater – 45,127 1. Assured 12-month rolling figures (Q4 2019 to Q3 2020) for values assured by the third-party auditor. excluding the acquisitions of Naturex, Vika and drom sites. See the "Restatements of information" section for restatements. Fresh water – 45,127 These latter figures have been included in the reported values, but have 3. Assured 12-month rolling figures (Q4 2020 to Q3 2021) for values Other water – 0 not been assured by the third-party auditor. including the acquisitions of Naturex, Vika and drom sites. See the "Restatements of information" section for restatements. 4. This data was not collected in 2015. We started to include this category Seawater – 407,761 2. Assured 12-month rolling figures (Q4 2020 to Q3 2021) for values in our reporting in 2020. In the past, this category was included in the including the acquisitions of Naturex, Vika and drom sites. surface water category. Fresh water – 406,578 3. I ncludes sanitary, cooling and process water. 5. T his data was not collected in 2015. We started to include this category Other water – 1,183 in our reporting in 2020. In the past, this category was included in the groundwater category. To external treatment facility w/o pre-treatment 790,277 751,256 Fresh water – 551,127 Other water – 200,128 To external treatment facility with pre-treatment 1,881,652 1,987,000 Fresh water – 1,321,521 Other water – 665,479 Total discharged water 8,635,974 9,229,737 73 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Water stewardship Supply chain and communities Supply chain water risk management Our actions and progress Givaudan is acting as a role model in water stewardship, working We will conduct contextual watershed risk assessments using We engage with our suppliers to advance the water to protect water-dependent ecosystems and encouraging the the Aqueduct Water Risk Atlas platform developed by the World stewardship journey. We ask for information on their relevant sustainable use of resources. In our communities, we want to set Resource Institute. We will promote regenerative agricultural accounting systems, for details on their water management goals that develop watershed strategies and collaborative practices and better use of irrigation and include water aspects strategy such as governance and targets, and for examples of actions in our priority sourcing areas. in our sourcing criteria. We will also engage our suppliers actions they have taken to reduce their impact. This around water stewardship through Sourcing4Good and promote information can be used by our procurement team to better Here, we will work in partnership with experts and the use of CDP Supply chain programme to collect water understand the challenges the suppliers are facing and make communities in our priority natural supply chains – defined by stewardship data and monitor supplier performance. sure they implement the appropriate mitigation measures. our Responsible Sourcing programme, Sourcing4Good – to This can also help less advanced companies identify risks to improve and protect water quantity and quality by first Our supply chain water risk assessment is a metric-based avoid disruption and these questionnaires indirectly impact identifying those that are exposed to water risks. For those methodology that characterises our corporate water their water management. At any level of maturity, we expect identified, we will define shared water challenges and local footprint in terms of water risks. This assessment allows us to the supplier to improve in the following years. stakeholder priorities in the watershed; explore water identify hot spots in our main supply chains and gives us a stewardship activity opportunities, including nature-based clear understanding of the risks and impacts encountered. In Overall, Givaudan looks to champion best practices across the solutions and potential project partners and then develop an addition to quantifying the total water consumption of our value chain, leveraging our influence with business partners activity implementation roadmap. activities, this study also quantifies the water scarcity and suppliers to promote good water management. We want footprint along the Givaudan value chain. This data is our strategic suppliers to move beyond simply reporting We also look to improve access to water, sanitation and consolidated with internal expertise from our sourcing team water accounting information and into active management. hygiene to positively impact the lives of communities where to make sure we integrate specific contextual aspects that This is why we work together to help them understand their we operate and source through a number of measures. For can influence the risk level in some specific watersheds. This water impact and then take action to reduce it. We measure instance, our EHS policy aims to safeguard adequate access to assessment allows us to set priorities for reducing water use the success of our engagement in terms of supplier actions safe drinking water, sanitation and hygiene for all employees and develop a mitigation plan. that demonstrate improvement year on year. in locations under company control. We also implement our goal of ensuring all our manufacturing facilities provide To better understand our supply chain water risk, Givaudan For instance, we participated in the CDP Supply Chain adequate WASH services, including all those facilities acquired collects primary data information from our main suppliers to programme, using its water security questionnaire to request a in recent years. We engage suppliers regarding their be used with the supply chain water risk assessment. We variety of information from our key suppliers on relevant risks employees’ access to water, sanitation and hygiene via foster an improvement in water management and enhanced and opportunities. Our supplier response rate this year was 67% Sourcing4Good. We also engage with communities around water risk identification through the promotion of data (80/120 responded), up by 16% from 2020. In 2021, an additional company operations to identify those without safe and reporting in our supply chain. Our Responsible Sourcing policy 12 suppliers have shown engagement by responding to the adequate access to water, sanitation and hygiene and guides suppliers to comply with local wastewater treatment programme at our request. In 2021, 95% of our respondents establish local partnerships to provide this access by 2030, regulations, urging them to reduce their impact on reported having a companywide water policy, but only 6.1% including long-term maintenance. watersheds where they operate in terms of aspects including report an active basin level target. This is part of our potential water scarcity, quality and stress. focus for engagement with suppliers along with other information extracted from the CDP Supply Chain programme. 74 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Biodiversity Material topic definition We believe that our activities can have the greatest impact on natural resources, in particular Givaudan’s Principles of Biodiversity biodiversity in terms of SDG 15, “Life on Land,” SDG 2 “Zero Conduct, Givaudan’s EHS Policy on Safety and Environmental Hunger” and SDG 17, “Partnerships for the Goals.” Our efforts in Protection and Responsible Sourcing. Contributing to the conservation of biodiversity and the biodiversity help protect, restore and promote sustainable use preservation of a rich diversity of natural ingredients (for of terrestrial ecosystems and promote food security and Biodiversity has therefore been integrated into the company’s example, through reforestation programmes) as well as a sustainable agriculture. Our partnerships serve to strengthen global approach, is supported by management through the balanced ecosystem in and around related growing and the means of implementation. purpose, and is gradually being deployed throughout the harvesting communities. organisation. Generally, our approach to biodiversity in our Boundary day-to-day work can be summed up in the steps of avoiding Purpose pillars • Givaudan negative impacts, or reducing them when this is not possible, CREATIONS NATURE PEOPLE COMMUNITIES • Raw material suppliers regenerating the environment, and inspiring the different stakeholders we work with. We take the global life cycle of our Disclosure 103 – 2, 103 – 3 products into account, from sourcing our raw materials Disclosure 103 – 1 MANAGEMENT APPROACH responsibly and sustainably, to treating our waste and water EXPLANATION OF THE MATERIAL TOPIC Givaudan is a purpose-driven company and our approach to the and managing our consumption and emissions. AND ITS BOUNDARY topic of biodiversity is embedded in these guiding principles. Biodiversity is essential for the survival of all species and it is Nature is an integral part of our purpose, expressed in the Internally, Environmental sustainability teams, EHS and Green the natural heritage we leave as a legacy for future generations. statement “Imagining together that we show our love for nature Teams carry out projects that support climate action, water Experts highlight an unprecedented rate of biodiversity loss, in everything we do.” Moreover, Givaudan has set an ambition to stewardship and waste management all over the world. noting that a million species of plants and animals are now become a certified B Corporation (B Corp), a designation close to extinction. We are fully aware of this urgency, the reflecting the highest standards of environmental performance. Externally, we work with our supply chain through Responsible direct consequences for humanity and, consequently, our Sourcing and Procurement actions as well as through the industry. We are actively working to reduce our impact or even Givaudan supports the terms of the Convention of Biological Regulatory Affairs & Product Safety Department. We continually nullify it by assessing and monitoring each step of our activity Diversity: the conservation of biological diversity; the assess the potential impact of biodiversity laws worldwide, throughout the life cycle of our products. sustainable use of the components of biological diversity, and including access- and benefit-sharing legal frameworks inspired the fair and equitable sharing of the benefits arising out of the by the Nagoya protocol principles. We have implemented key Givaudan could not exist without a steady supply of more than utilisation of genetic resources. The Nagoya Protocol programmes to manage the assessment of our procured, 11,000 ingredients from across the globe, natural resources implements Article 15 of the convention, which covers access to manufactured and research & development raw materials used in the creation of our Taste & Wellbeing and Fragrance & genetic resources – and associated traditional knowledge – activities to ensure we comply with regulations on conservation, Beauty products. Our activities depend on biodiversity, as do and the sharing of monetary and nonmonetary benefits linked sustainable use and fair and equitable sharing of benefits arising the many communities we work with and look to support. A to their use. We are identifying the potential implications of the from the use of genetic resources. We also discuss aspects of combination of protection, sustainable management and, Nagoya Protocol and its access and benefit sharing (ABS) sustainability, including biodiversity, with our customers and where necessary, restoration is then needed to ensure the framework on our activities in order to comply with all our surround ourselves with experts particularly well versed in specific future of a diverse, living planet. obligations. Givaudan has developed comprehensive policies issues. Participating in industry platforms and think tanks allows that recognise the need to protect the environment and its us to act together on certain aspects related to biodiversity. 75 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Biodiversity It is part of our business, as well as our responsibility, to join Disclosure 304 – 1 especially birds, and forest habitats, from natural forests to the forces with local stakeholders to preserve the equilibrium of Operational sites owned, leased, managed in, actual “dehesas”, agrosilvopastoral systems, where trees, native the landscapes from which we source. This year, we have or adjacent to, protected areas and areas of grasses, crops, and livestock interact positively under launched a strengthened responsible sourcing programme, high biodiversity value outside protected areas management. These forests are subject to an ancestral method Sourching4Good, which outlines our commitments in favour of Aromasur, one of our extraction and distillation sites, is located of management that makes use of natural resources and promoting biodiversity even more clearly. We look, for example, in a protected area in the Sierra Norte Natural Park, to the north diversification of land use compatible, without undermining to “Reduce environmental impacts and promote biodiversity” of Seville, Spain. The production factory, which is approximately ecosystem processes and natural values in the broadest sense. in areas including land use and soil health, good stewardship 26,000 m² in area, opened in 1974 and was acquired by Albert and limitation of hazardous substances, water management, Vieille in 1991. Aromasur is located within, but on the edge of, a Disclosure 304 – 2 waste management and animal welfare. Sourcing4Good space recognised by several protection figures as sharing Significant impacts of activities, products, requires all suppliers of raw materials to conserve biodiversity. geographical boundaries with the following areas (the biosphere and services on biodiversity reserve is an exception as there is more extensive overlap): Our significant impacts are likely to be linked to our ingredient Approaches to conserving species include verification in the supplies and indirectly through our activities. field via third-party audits. They examine the preservation and – Sierra Norte de Sevilla “Natural Park” (Andalusian regional sustainable use of biodiversity and support best management network of protected natural areas – RENPA). Water, effluents, waste and GHG practices and climate adaptation strategies that can help We strive to meet the twin challenges of climate change and preserve yield and income as well as sustain the long-term – Sierra Norte de Sevilla “Special Area of Conservation” biodiversity loss because they are intimately linked. Biodiversity viability of complex or simple value chains of smallholder -SACs- (EU Red Natura 2000; under Habitat Directive). is impacted by the effects of climate change, but can also serve farmers, big players, traders and transformers. The recent as a means of mitigation and adaptation to its consequences. integration of the Agronomy Department into the Origination – Sierra Norte de Sevilla “Special Protection Areas” -SPAs High biodiversity can help with the capture and storage of team will also help us to achieve these goals and promote (EU Red Natura 2000; under Birds Directive). greenhouse gases by increasing the productivity of systems nature-based solutions, scaling their implementation through over the long term, by regulating air and water quality, soil selected supply chains. – Sierra Norte de Sevilla “Global Geopark” & “European fertility, fighting against diseases and reducing the impacts of Geopark Network” (UNESCO & EU). extreme climatic events. We can already point however to a transversal tool in the launch of the Naturality platform, meant to help facilitate – Dehesas de Sierra Morena “Biosphere Reserve” (UNESCO). Land use, agricultural and collection practices responsible fragrance design and promote the use of fragrances The establishment of factory, agricultural plots, cultivation and that are respectful to nature. The historical development of regional, national and collection practices are also likely to impact biodiversity. We community environmental policy has established this series of encourage practices that promote and preserve soil fertility, Surrounding ourselves with experts, exchanging with our protection categories, which go beyond the criteria defined by preserve and enhance soil biodiversity and improve soil water customers on aspects of sustainability and being part of the International Union for Conservation of Nature. This management including sustainable management of hazardous industry platforms, we strive to strengthen our approach and protected area constitutes one of the best and most extensive substances. We promote animal welfare as well. Thanks inspire players in the industry. representations of Mediterranean ecosystems in Europe. Forms notably to our Agronomy team, we work with our suppliers on of agro-livestock and forestry management coexist and the these aspects in order to ensure and support them if necessary regions are characterised by a high degree of sustainability. in the implementation of good practices through various There are a multitude of threatened and protected species, actions as explained in the following paragraphs. 76 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Biodiversity Disclosure 304 – 3 Caura basin in Venezuela. The local communities are part of a 5. French Alliance pour la Préservation des Forêts Habitats protected or restored conservation agreement by which they receive support and Since 2013, Givaudan has been a member of APF, a food sector Our best practices approach from field to process has inspired guidance on techniques for the handling and selling of beans. initiative that addresses the challenge of deforestation and initiatives to preserve biodiversity in different areas and they In exchange, they commit to actions preserving the flora and ecosystem conversion within raw material supply chains. have resulted in significant improvement. Work with our the fauna of their ecosystem. They patrol the 150,000 hectares Missions of APF include communicating issues associated with suppliers on our sourcing policy, appropriate land use and of the conservation area and control the expansion of the deforestation and development within the concerned sectors; good agricultural, collection and process practices have agricultural frontier in the forest. They also survey several serving as a platform for interaction and collaboration between contributed to this progress as have biodiversity enhancing animal species such as the American tapir, jaguar, or private players and other stakeholders and, finally, supporting programmes in specific and prioritised supply chains as spectacled caiman because they serve as key indicators of the its members in the practical implementation of their detailed below by core topic. ecosystem’s health. commitments by facilitating the pooling of tools and the conciliation of approaches both up- and downstream. Promoting good agricultural and collection practices 2. Palm oil position statement We have dedicated projects in materials such as patchouli, In 2020, we introduced our palm position statement in which, Supporting the conservation of diversity of species turmeric, guarana and jasmine that include training in good among other things, we emphasise our commitment to non- We have been collaborating for about a decade with the agricultural practices, safe plant protection measures and deforestation, including “No Deforestation, No Peat, No University of California, Riverside (UCR) to support the care compost management. Such projects have an impact on Exploitation (NDPE)” principles. We are also co-funding and preservation of one of the world’s most extensive, unique several thousand smallholders. projects targeting sustainability issues at the beginning of our and diverse citrus collections from the impending threat of palm supply chains in Indonesia and Malaysia in collaboration citrus greening disease, also known as Huanglongbing, or HLB. Domestication of wild resources to with Earthworm Foundation and other companies. The collection includes 1,000 varieties of citrus fruits from mitigate our impact around the globe. The Agronomy department works on the cultivation of raw 3. Dairy Working Group materials generally taken from the wild such as rosemary, To best cover our cheese and butter supply chains, we are reducing our impact and ensuring good cultivation practices. members of the SAI Platform’s Dairy Working Group and so collaborate with dairy supply chain actors. This includes Addressing deforestation and ecosystem Givaudan, as well as some of our suppliers and customers. This conversion year, this group has launched the SDP, which is an approach Most biodiversity loss is taking place in tropical forests, that buyers will use to ask suppliers to report on their progress including rainforests. We address specific issues of biodiversity in sustainability at farm level. This SDP covers multiple preservation such as those related to deforestation through a sustainability topics including deforestation. number of approaches. 4. Preserving natural resources through efficient process 1. Forest conservation with tonka bean collectors We continued work on reducing fuelwood consumption and The Givaudan Foundation, through an agreement with replanting fuelwood trees in the distillation of key ingredients Conservation International, supports a programme aimed at such as ylang ylang and patchouli. improving local livelihoods and protecting the forest in the 77 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Environmental performance indicators 2015 2020 Key performance indicators (restated in 2021) ¹ (restated in 2021) ² 2021 ³ Energy Energy (GJ) Direct energy consumption primary sources ⁴ 1,710,865 2,444,093 2,511,855 Indirect energy: purchased electricity & steam 977,021 1,307,527 1,299,385 Total energy 2,687,886 3,751,620 3,811,240 Energy efficiency (GJ/tonne of production) Direct energy efficiency 4.44 4.28 4.30 Indirect energy efficiency 2.54 2.29 2.22 Total energy 6.98 6.57 6.52 Emissions GHG emissions (tonnes) Scope 1 From direct energy sources ⁵ 139,374 133,707 139,608 From biogenic sources ⁶ 4,700 3,925 3,574 Scope 2 From indirect energy sources ⁵ 106,879 54,075 31,090 From biogenic sources ⁶ 0 1,333 397 Total scope 1 + 2 GHG emissions direct and indirect 246,253 187,782 170,698 Total scope 1 + 2 GHG emissions biogenic 4,700 5,257 3,971 Scope 3 Purchased good and services 1,917,037 1,901,374 1,902,794 Raw materials 1,691,701 1,676,242 1,677,400 Other Indirect materials & services categories (excluding existing categories) ⁷ 146,856 132,686 133,055 Packaging 78,480 92,446 92,339 Capital goods ⁷ 51,722 72,797 56,003 Fuel- and energy-related activities 105,744 68,001 36,349 Upstream transportation and distribution 29,674 42,320 39,990 Waste generated in operations 19,321 22,644 24,084 Business travel 24,461 12,587 1,794 Employee commuting 21,516 20,454 13,277 Downstream transportation and distribution 54,615 56,099 65,297 Outbound product to customers 39,503 38,172 42,343 Outbound intercompany deliveries 15,112 17,927 22,954 Total scope 3 GHG emissions 2,224,090 2,196,276 2,139,587 Total GHG emissions (excluding biogenic emissions) 2,470,343 2,384,058 2,310,285 GHG emissions efficiency(tonnes of GHG/tonne of production)⁸ Scope 1: from direct energy sources (excluding biogenic) – 0.23 0.24 Scope 2: from indirect energy sources (excluding biogenic) – 0.09 0.05 Total GHG emissions – 0.33 0.29 78 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Environmental performance indicators 2015 2020 Key performance indicators (restated in 2021) ¹ (restated in 2021) ² 2021 ³ Waste Hazardous waste (tonnes) Preparation for reuse ⁹ – – 12,495 Recycling – – 9,150 Other recovery operations ⁹ – – 7,103 Total hazardous waste diverted from disposal by recovery operation 15,152 20,969 28,748 Incinerated without energy recovery offsite 4,412 5,853 5,917 Incinerated with energy recovery 6,337 7,042 8,225 Landfilled 318 221 137 Total hazardous waste directed to disposal by disposal operation 11,067 13,116 14,279 Total hazardous waste 26,219 34,085 43,026 Non-hazardous waste (tonnes) Preparation for reuse ⁹ – – 1,621 Recycling – – 63,814 Recycling – – 20,416 Composted – – 16,420 Biogas production – – 26,978 Other recovery operations ⁹ – – 487 Total non-hazardous waste diverted from disposal by recovery operation 28,117 55,863 65,921 Incinerated without energy recovery 1,153 1,318 1,256 Incinerated with energy recovery 1,076 2,336 3,610.02 Landfilled 6,412 9,635 10,233 Total non-hazardous waste directed to disposal by disposal operation 8,642 13,289 15,099 Total non-hazardous waste 36,758 69,152 81,021 Total incinerated and landfilled waste (HZ and NHZ, tonnes) 19,709 26,405 29,378 Waste efficiency (kg/tonne of production) ¹⁰ 51.2 46.2 50 One-off waste (tonnes) ¹¹ 2,219 2,509 2,354 Total waste (tonnes) 65,197 105,746 126,401 79 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Environmental performance indicators 2015 2020 Key performance indicators (restated in 2021) ¹ (restated in 2021) ² 2021 ³ Water Water intake (m³) Surface water 5,006,361 4,923,265 5,088,104 Groundwater 1,390,267 1,561,661 1,390,612 Seawater – – 547 Third-party water - purchased water 2,359,818 3,205,348 3,495,105 Rainwater collected directly and stored by the reporting organisation 13,249 13,200 14,099 Third-party water - wastewater from another organisation 259,727 275,828 248,004 Total water withdrawal¹² 9,029,422 9,979,302 10,236,472 3 Water efficiency (m /tonne of production) ¹³ 9.74 8.35 8.36 Water discharge (m³) To the environment w/o biological treatment – 3,832,499 4,414,877.87 To the environment after biological treatment – 2,131,546 2,076,603.46 To external treatment facility w/o pre-treatment – 790,277 751,255.64 To external treatment facility with pre-treatment – 1,881,652 1,987,000.33 Total water discharge – 8,635,974 9,229,737.30 Water consumption (m³) Water consumption – 1,343,328 1,006,734.44 COD (tonnes) COD load of water discharged to the environment – 284.50 245.19 Other data Nitrogen oxides – NOₓ (tonnes) ¹⁴ – 66.71 69.28 Sulphur dioxide – SO₂ (tonnes) ¹⁴ – 96.84 98.37 Volatile organic compounds (tonnes) – 1,018.46 1,069.22 CFC inventory (kg) – 7,639 3,881.41 CFC ¹¹ equivalent inventory (kg) – 783 574.00 CFC loss-replacement (kg) – 765 525.62 CFC ¹¹ equivalent loss/replacement (kg) – 42 28.91 Production Production quantities (tonnes) 385,189 571,141 584,154.76 1. Assured 2015 full-year figures. 6. Including emissions from CO₂ from usage of biomass/biofuels. For Scope 1, 2 and 3 these values include the acquisitions of Naturex, Vika and drom sites. 7. This two categories do not include data for the recent acquisitions of Naturex, Vika and drom. See the "Restatements of information" section for restatements. 8. Includes only scope 1 and scope 2. For all other figures, these values exclude the acquisitions of Naturex, Vika and drom sites. 9. This data was not collected in 2015. We started to include this category in our reporting in 2020. 2. Assured 12-month rolling figures (Q4 2019 to Q3 2020) for values excluding the acquisitions of Naturex, Vika and drom sites. In the past this treatment was included in the recycling processes. These latter figures have been included in the reported values, but have not been assured by the third-party auditor. 10. Includes incinerated with and without energy recovery and landfilled waste (HZ and NHZ). See the "Restatements of information" section for restatements. 11. This indicator measures the total quantity of waste which is not directly related to the daily operations, 3. Assured 12-month rolling figures (Q4 2020 to Q3 2021) for values including the acquisitions of Naturex, Vika and drom sites. but is categorised as one-off waste. 4. For 2021 includes natural gas (0.0336 GJ/m³), light fuel (39.5904 GJ/m³), heavy fuel (40.1759 GJ/m³), Liquid Petroleum Gas Examples of waste in this category are waste materials coming from demolition or remediation activities (24.6719 GJ/m³), town gas (0.0254 GJ/m³), waste used as energy source (22.5000 GJ/m³), biofuel (33,1080 GJ/m³), biogas (0,0342 or waste or raw materials following an unusual incident, for instance a fire. GJ/m³), biomass (0,0116 kg/GJ), geothermal energy (0.0036 GJ/kWh), deducting steam sold (3.0750 GH/tonnes). 12. Includes sanitary, cooling and process water. 5. Including emissions from CH₄ and N₂O from usage of biomass/biofuels. 13. Includes third-party water (municipal supplies / purchased water) and groundwater. 14. Quantity is calculated by multiplying the annual fuel consumption by the corresponding emission factor for fuel type. 80 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Environmental performance indicators Disclosure 102 – 48 Reasons for change Packaging & Upstream and downstream transportation Restatements of information General This year we recalculated the 2015 baseline for Packaging & Explanation The majority of the changes are due to the impact of integrating Upstream and downstream transportation using the production Over the year we may face changes in data or calculation information from recently acquired companies Vika, Naturex tonnage of our acquisitions as a proxy indicator based on the methods that impact data that has already been published. We and drom into our baseline and past-year data. We also restate performance in 2015 of CO₂e/production tonnage per category. therefore restate the data, both to provide a meaningful data when we identify corrections that must be reflected in the We applied the same principle for the 2020 data. comparison between years for environmental performance past performance or when we use a new calculation or and to monitor key performances indicators. measurement methodology for certain indicators. This is done Waste treatment with the aim of keeping the data consistent and comparable This year we recalculated the 2015 baseline for scope 3 emissions Baseline recalculation over time. from waste treatment using the production tonnage of our In order to enable a meaningful comparison of environmental acquisitions as a proxy indicator based on the performance in performance over time, Givaudan has established a standard Business travel 2015 of CO₂e/production tonnage for this category. process, based on the GHG Protocol, to recalculate its baseline This year we recalculated the baseline for Business travel & indicators in case of structural changes such as acquisitions, employee commuting using the number of employees of our For 2020, we used the waste data collected directly from the changes in calculation methodology or inventory boundaries. acquisitions as a proxy indicator based on the performance in acquisitions and integrated them in the model. 2015 of CO₂e/employee. We applied the same principles for This allows us to compare performance on a like-for-like basis 2020 data. Raw materials over time. The process includes definitions of recalculation This year we recalculated the baseline for our Raw materials triggers and the process of reporting the information. Thanks Fuel- and energy-related activities category including all acquisitions since 2015 on our scope 3 to this guidance, Givaudan is able to track its environmental This year, we recalculated the baseline for fuel and energy calculation model. We used the proportion of raw materials performance in a transparent manner and with confidence that related activities using the total amount of energy consumed by volumes purchased through the acquisitions as a ratio for the data are accurate despite changes related to business growth. our recent acquisitions as a proxy indicator based on the calculating their impact on the baseline. We specifically applied performance in 2015 of CO₂e/GJ for the whole category. our average dairy category emission factor for part of our Baseline years portfolio as it best reflects the nature of the material purchased. In this report we use two baseline years to show our Employee commuting We otherwise used the average Givaudan 2015 CO₂e/kg of raw performance indicators, 2015 and 2020. The GHG emission This year we recalculated the baseline and improved our model. materials. We applied the same principle for the 2020 data. science-based targets were set against a 2015 baseline and We recalculated the baseline using the number of employees of water targets have a baseline of 2020. Our waste ambition our acquisitions as a proxy indicator based on the performance Direct energy (from primary sources) and has a baseline of 2020. in 2015 of CO₂e/employee per category. In parallel, we integrated Direct energy efficiency new emission factors from DEFRA data base for 2015, 2020 and Since 2015, data for primary and indirect energy has been shown In this report, the baseline recalculation applies only to GHG 2021 to best reflect the performances of our employees. This without the acquisitions. The change for 2020 is mostly due to emission numbers as these are the only absolute targets new modelling led to minor changes in terms of performance the integration of the values from the acquired sites of Naturex, published by the Company. To consider the impact of 2015 and and this category continues to reduce its impact every year. Vika and drom. Some spontaneous corrections of past reported all subsequent acquisitions, we recalculated the 2015 baseline. data for Givaudan historical sites have also been included. 81 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Environmental performance indicators Indirect energy (purchased electricity & steam) and For both years, there has also been a minor change due to the Water discharge to external treatment facility with and Indirect energy efficiency improvement of biogenic vs. non-biogenic emissions reporting. without pre-treatment Since 2015, data for primary and indirect energy has been shown CH₄- and N₂0-related emissions are now in the scope of non- The change for 2020 is mostly due to the integration of the without the acquisitions. The change for 2020 is mostly due to biogenic emissions, whereas CO₂ related emissions are included values from the acquired sites of Naturex, Vika and drom. Some the integration of the values from the acquired sites of Naturex, in the biogenic category. spontaneous corrections of past reported data for Givaudan Vika and drom. Some spontaneous corrections of past reported historical sites have also been included. data for Givaudan historical sites have also been included. Hazardous waste, Total incinerated and landfilled waste and Waste efficiency NOₓ and SO₂ GHG emissions (Scope 1) and GHG emissions efficiency The change for 2020 is mostly due to the integration of the The change for 2020 is mostly due to the integration of the (Scope 1) values from the acquired sites of Naturex, Vika and drom. Some values from the acquired sites of Naturex, Vika and drom. Some The change for 2015 is mostly due to the integration of the spontaneous corrections of past reported data for Givaudan spontaneous corrections of past reported data for Givaudan values from the acquired sites of Naturex, Vika and drom. historical sites have also been included. historical sites’ energy consumption have also been included. The change for 2020 is mostly due to the integration of the Non-hazardous waste (Recycling, Incinerated and In addition, we have used the NOₓ and SO₂ emission factors values from the acquired sites of Naturex, Vika and drom. Some Landfilled) related to new fuels, updated in 2021, for 2020 to ensure better spontaneous corrections of past reported data for Givaudan The change for 2020 is mostly due to the integration of the data comparability. historical sites’ fuel consumption, which impact the emissions values from the acquired sites of Naturex, Vika and drom. Some calculation directly, have also been included. spontaneous corrections of past reported data for Givaudan Volatile organic compounds historical sites have also been included. The change for 2020 is mostly due to the integration of the For both years, there has also been a minor change due to the values from the acquired sites of Naturex, Vika and drom. Some improvement of biogenic vs. non-biogenic emissions reporting. One-off waste spontaneous corrections of past reported data for Givaudan CH₄- and N₂0-related emissions are now in the scope of non- The change for 2020 is mostly due to the integration of the historical sites have also been included. biogenic emissions, whereas CO₂ related emissions are included values from the acquired sites of Naturex, Vika and drom. in the biogenic category. Some spontaneous corrections of past reported data for CFC inventory and CFC loss-replacement Givaudan historical sites have also been included. The change for 2020 is mostly due to the integration of the GHG emissions (Scope 2) and GHG emissions efficiency values from the acquired sites of Naturex, Vika and drom. Some (Scope 2) Water intake Third-party water spontaneous corrections of past reported data for Givaudan The change for 2015 is mostly due to the integration of the The change for 2020 is mostly due to the integration of the historical sites have also been included. values from the acquired sites of Naturex, Vika and drom. values from the acquired sites of Naturex, Vika and drom. Some spontaneous corrections of past reported data for Givaudan The change for 2020 is mostly due to the integration of the historical sites have also been included. values from the acquired sites of Naturex, Vika and drom. Some spontaneous corrections of past reported data for Givaudan historical sites’ fuel consumptions, which impact the emissions calculation directly, have also been included. 82 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Environmental performance indicators Emission calculation methodologies Purchased goods and services Capital goods Scope 3 model evolution Raw materials The figures are calculated through the ESCHER model on the The modelling of scope 3 carbon emissions is an iterative process For Natural and Synthetic raw materials, figures are estimated basis of financial values of hardware purchased during 2015. The based on science that is still evolving. We started our efforts in according to process-based modelling using individual modelling 2021 GHG emission figure was calculated by using the 2015 ratio this area in 2017 with our first full scope 3 inventory based on per substance and considering all physical inputs (energy, between spend and GHG emissions and extrapolating to the financial activity data using the so-called ESHER model. This is fertilisers, etc.). The model allows us to identify the carbon 2020 spend figure. an extended multi-regional input-output model based on Global footprint of each substance using its weight (kg) and the most Trade and Analysis Project (GTAP) data in addition to internal accurate emission factors. Emission factors are based on data Fuel-and-energy-related activities modelling for categories like business travel, packaging, waste from global generic Life Cycle Inventory databases (ecoinvent, (not included in scope 1 or 2) and transport. World Food LCA Database) and internal primary data. Specific The calculation considered the primary energy carriers for the emission factors are used for substances representing the production of heat, electricity and steam, and the technology Since then, the model has gone through several evolutionary highest volume purchased. Proxies have been extrapolated for standard in the countries of the respective sites. The data basis steps. We have begun modelling our raw material with a others. The model has been applied on purchased data from for the life-cycle inventory is the ecoinvent database 3.6 process-based approach that applies the best available proxy 2015, 2020 and 2021, which allows us to establish the current (method: IPCC 2013, 100 years). The scope 3 emissions were data from verified generic databases like ecoinvent or our performance and the 2015 baseline. The baseline is recalculated estimated directly through the analysis of the respective own LCA data. We have also added granularity and accuracy for the acquisition according to the GHG protocol standard using ecoinvent datasets by subtracting scope 1 and 2 emissions from through the inclusion of additional packaging categories and the amount of raw material purchased by the acquired entity. overall emissions. Scope 3 emissions for the delivery of electricity new classes of travel for business trips. We are continuing (infrastructure, grid losses and direct emissions) have also been with the evolution of our model by implementing more details Indirect material and services accounted for. on the concentration of our product, integrating allocation For other Indirect materials & services categories (excluding principles and taking dedicated proxies for the main processes existing categories), figures are calculated through the ESCHER Upstream transportation and distribution in our supply chain into account. model – an extended multi-regional input-output model based We monitor the environmental impact of transportation (air, on Global Trade and Analysis Project (GTAP) data – on the basis ship and road) by calculating the associated GHG emissions. These modifications all imply potentially important changes, of financial values of materials purchased during 2015 and the We do this through a model that tracks all transport either increases or decreases, in the data and the modelling of country of origin. The 2021 GHG emission figure was then movements through our SAP system (by mode of transport), our scope 3 emissions. This is a necessary part of the journey and calculated by using the 2015 ratio between spend and GHG from delivery to receipt locations of raw materials. To we will be sure to recalculate our baseline accordingly, as emissions and extrapolating to the 2021 spend figure. calculate the GHG footprint, we use emission factors per required by the GHG protocol. mode of transport according to the Cefic (European Chemical Packaging Industry Council) guideline. We actively advocate for more transparency and alignment in For packaging materials, the figure was calculated by this area, as was done decades ago for financial reporting, by extracting the number of units used for each type of packaging We have integrated recent acquisitions for which we did not participating in several relevant initiatives such as the WBCSD used at Givaudan from the Company’s ERP database. This have data in SAP by using production tonnage proxy to pathfinder of the TfS (Together for Sustainability) workstream number was multiplied by the carbon footprint figure for the extrapolate their impacts. on scope 3 emissions. type of packaging (as received from suppliers or in publicly available databases). The totals for each type of packaging were consolidated to give a total Givaudan figure. 83 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Environmental performance indicators Downstream transportation and distribution the category are calculated by multiplying the distance per We monitor the environmental impact of transportation (by air, dedicated mode of transport emission factors (according to ship and road) by calculating the associated GHG emissions. We Defra’s GHG conversion factor). The total emissions are then do this through a model that tracks all transport movements extrapolated for all employees including the recent acquisitions through our SAP system (by mode of transport), from delivery to integrated in the report. In light of the COVID-19 pandemic receipt locations of intercompany deliveries and deliveries to situation, we included parameters allowing us to collect customers. To calculate the GHG footprint, we use emission information on commuting restrictions so we can compare factors per mode of transport according to the Cefic guideline. regular performance and include the impact of the pandemic in this category. The next survey is planned for 2024. We have integrated recent acquisitions for which we did not have data in SAP by using production tonnage proxy to extrapolate their impacts. Waste generated in operations Emission factors on a per tonne waste basis (as extracted from scope 3 guidance documents from WBCSD + WRI) have been multiplied with the total weight of waste generated at our manufacturing locations. The scope of the calculation covers waste to landfill and to incineration. Business travel Data on distance travelled are collected through our global and local travel agencies. To calculate the GHG footprint, emission factors per haul and class are used according to the 2021 Department for Environment, Food and Rural Affairs (Defra, UK) definition. We use the Emission factor including the RF effect. Employee commuting The reported 2021 figure is based on our new employee commuting survey/questionnaire, which was conducted for the fourth time. This year we also adapted our model so it includes the Defra emission factors for 2015, 2020 and 2021 for the respective survey. We collected information from about 7000 employees on commuting habits by including mode of transport and distance covered. The GHG emissions related to 84 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix SOCIAL In this section 86 Our ambitions 87 Diversity, inclusion & people development 93 Employee safety, health & wellbeing 101 Consumer health & wellbeing 104 Human rights 108 Responsible sourcing & traceability 113 Local community development 85 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Our ambitions Our contribution to SDGs OUR AMBITION Before 2030, we will be an even more balanced and inclusive company. Focus area Targets Status 2021 Actions and measures Diversity We will be rated amongst the leading employers In progress Building more inclusive hiring practices: and inclusion for inclusion globally before 2025 • Inclusive job ads • Balanced slates for hiring and promotion 50% of our senior leaders will be from high • Hiring Manager Training growth markets before 2030 (baseline 2018) 26% Fostering inclusive leadership development: 50% of our senior leaders will be 26% • Evolving our Leadership Development programmes women before 2030 (baseline 2018) • Better Balance Approach • Managing unconscious bias at work OUR AMBITION Before 2025, we will improve how we care for all of our people. Caring for We will reduce our total recordable injury rate • Investing in our plant and technical equipment employee by 50% before 2025 (baseline 2018) –22% • Further developing our Responsible Care Management System safety, health • Conducting periodic assessment of risk and control on-site and mental • Expanding our behavioural safety programme: advanced safety leadership training and wellbeing comprehensive worker trainings on health and safety Everyone on our sites will have access to mental In progress Providing access to mental and physical health initiatives, tools and training for all employees such as: and physical health initiatives, tools and training • Employee assistance programme before 2025 • Happier, healthier habits circles; health and wellbeing communities of practice OUR AMBITIONS By 2030, we will source all materials and services in a way that protects people and the environment. By 2030, we will improve the lives of millions of people in communities where we source and operate. Communities 100% of materials and services will be sourced In progress Implementation of our Sourcing4Good programme, Responsible Sourcing policy benefit by working responsibly by 2030 with Givaudan Ambition to improve the lives of millions of people In progress Through employee activities, Green Teams and the Givaudan Foundation, develop initiatives that: in communities where we source and operate by 2030 • Respond to needs within communities – targets are being determined • Support activities ranging from health and education to enhancing environmental and agricultural practices 86 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Diversity, inclusion & people development As the leading employer in its field with a global workforce At Givaudan, the path to leadership is open to all motivated, Material topic definition of more than 16,800 employees, Givaudan depends on its talented and qualified people and we are committed to equal Diversity, inclusion & people development people. Working in a wide variety of roles, they help transform opportunity. Our Principles of Conduct state that it is our policy Having a balanced workforce that reflects the societies in the original creations of Givaudan’s talented perfumers and to recruit, employ and promote people solely on the basis of which Givaudan operates, including the elimination of all flavourists into products that are designed to satisfy the most the qualifications and abilities needed for the work to be discrimination to ensure that people from all backgrounds demanding requirements. These innovative, creative professionals performed without regard to race, age, gender, national origin and gender have the opportunity to succeed. Effectively are fundamental to our success. or any other non-relevant category. This is fundamentally the recruiting, developing, engaging, deploying and retaining right way of doing things and makes sense from an operational talent that meets future business imperatives. Managing talent and encouraging people is therefore another perspective. We provide opportunities for people of all critical element of meeting our business and sustainability goals. backgrounds, gender and origin. We support women’s Purpose pillars People who are passionate about our work and committed to empowerment and the associated economic growth and CREATIONS NATURE PEOPLE COMMUNITIES creating a sustainable society make significant contributions to development of societies through compensation policies the success of our business. Effectively recruiting, developing, including the ratio of remuneration of women to men. We also engaging, deploying and retaining a balanced workforce that focus on employee development to improve skills and Disclosure 103 – 1 meets future business imperatives is critical to improving staff productivity, to constantly adapt skills to requirements and to EXPLANATION OF THE MATERIAL retention, reducing costs and increasing our revenue. It helps us offer the best opportunities to our people. TOPIC AND ITS BOUNDARY attract and keep the best and the brightest. Having a diverse workforce that reflects the societies in Diversity and inclusion which we operate, with multiple perspectives, backgrounds Boundary Our approach to diversity and inclusion involves efforts to and points of view, improves business decisions because of • Givaudan eliminate all discrimination and to give people from all the breadth and depth of experience brought to the table. • Suppliers backgrounds the chance to succeed. We seek to attract local Eliminating discrimination and providing equal opportunities talent and industry experts to support growth in all markets. to people from all backgrounds and genders empowers Disclosure 103 – 2, 103 – 3 We embrace diversity throughout our organisation and people to seize the opportunities they deserve, boosting MANAGEMENT APPROACH recruit to build a representative and inclusive workforce. morale and loyalty and cultivating leaders with legitimacy. We believe that diversity and inclusivity add strength and Diversity and inclusivity are then critical to our business and balance to our workforce and we look to contribute to full We implement policies and programmes that are consistent help us manage our complex operating environment and and engaged employment and decent work for all. We want with promoting equal opportunities for everyone, without serve our customers in the best possible way. to accelerate our journey in these directions and have set discrimination. We ensure that Givaudan respects human rights three ambitious objectives to help us along the way. by acting with due diligence, as defined in the UN Guiding As an example, equal treatment of women and men is not just Principles for Business and Human Rights, which include a right the right thing to do – it is also good for business. The full We intend, before 2025, to be rated globally among the leading to non-discrimination. We also expect our suppliers to recruit, participation of women at Givaudan, including equal pay, makes employers for inclusion. Before 2030, 50% of our senior leaders employ and promote employees on the sole basis of the sound business sense and embracing women’s empowerment will be from high growth markets and 50% of our senior qualifications and abilities needed for the work to be performed, as a key goal will benefit us all. Looking beyond the company, leadership will be women. Progress in these objectives will be without regard to race, age, gender, national origin, religion or women’s empowerment is also essential to expanding economic measured against the baseline year of 2018. any other category not relevant to performance. growth and promoting social development. 87 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Diversity, inclusion & people development We assess and review the numbers of our workforce, Employees ¹ by employment type Givaudan Mexico particularly relating to gender and nationality, and track Full-time Part-time Total progress in this regard, including the percentage of women Women Men Women Men Women Men recognised as a ‘super and high growth market nationalities in leadership positions. Asia Pacific 1,422 1,582 11 1 1,433 1,583 company for women’ Our Diversity Position Statement outlines our commitment Europe 2,093 3,302 151 49 2,244 3,351 to ensuring a representative workforce that reflects the SAMEA 305 737 1 0 306 737 TH diverse communities in which we operate. One way we will RANKED 13 OUT OF 100 Latin America 758 1,291 2 0 760 1,291 continue to promote a representative workforce is through North America 832 1,587 4 0 836 1,587 I feel safe here. Gender equality is our Better Balance approach: this is how we evolve our Total 2021 5,410 8,499 169 50 5,579 8,549 promoted as part of our culture. leadership mix to reflect consumer demographics while Total 2020 4,864 7,732 162 49 5,026 7,781 Daniela ensuring that everything that we do is inclusive and without unconscious bias. Employees ¹ by employment contract Givaudan has been evolving to achieve the diversity and inclusion that it has Disclosure 102 – 8 Permanent Temporary Total and to ensure that everyone has a voice Information on employees and other workers Women Men Women Men Women Men that can be heard. Enrique The following tables give a breakdown of employees by Asia Pacific 1,393 1,556 40 27 1,433 1,583 category, region and gender. Europe 2,167 3,239 77 112 2,244 3,351 This Company is unique because it Total Givaudan employees SAMEA 300 725 6 12 306 737 inspires me; I can be who I am within a Latin America 740 1,243 20 48 760 1,291 place that gives me infinite options to 2021 2020 North America 836 1,587 0 0 836 1,587 create, inspire and learn. Paulina Total number of full-time employees ¹ 16,842 15,852 Total 2021 5,436 8,350 143 199 5,579 8,549 Total head count ² 14,128 12,807 Total 2020 4,935 7,681 91 100 5,026 7,781 1. This is defined as the equivalent full-time employees and includes acquisitions 1. This is defined as the number of physical people and includes internal (Activ International, Vika B.V., Naturex, Centroflora, Expressions Parfumées, temporary and regular employees. In 2020, it included Activ International, Albert-Vieille, Golden Frog, Ungerer, drom, Fragrance Oil, Alderys, DDW and but all other acquisitions excluded. In 2021, it includes Activ International and Custom Essence). drom integrated entities; all other acquisitions are excluded. 2. This is defined as the number of physical people and includes internal temporary and regular employees. In 2020, it included Activ International, but all other acquisitions excluded. In 2021, it includes Activ International and drom integrated entities; all other acquisitions are excluded. 88 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Diversity, inclusion & people development Disclosure 405 – 1 We produce analytics to assess and review the numbers of our conduct studies in each of our key markets where we operate Diversity of governance bodies and employees balanced workforce. We are committed to providing and to monitor gender pay equity, identify any outstanding pay contributing to a work environment that is based on mutual gaps and ensure they are promptly addressed. These studies Composition of governance respect among people and is free from harassment. Our are conducted according to the methodology of the Swiss (Executive Committee and Board of Directors) Responsible Sourcing Policy calls on suppliers to treat all their Federal Office for Gender Equality with a view to ensuring <30 30–50 >50 Women Men Total employees with respect and dignity. Diversity in the workplace equal pay for equal responsibilities. Results for the Givaudan Headcount 0 0 15 4 11 15 is respected. Harassment and abuse are not tolerated. Group globally show that the average base salary difference - in % 0% 0% 100% 27% 73% 100% between men and women is 1.4% for equivalent roles and skill Disclosure 406 – 1 sets. For total cash compensation (fixed and variable pay) the Employees ¹ categories and composition of governance Incidents of discrimination and corrective difference is 1.4%. In 2021, our sites in Switzerland received an actions taken equal pay certification, recognition as a fair employer. The Women Men <30 30-50 >50 Total We expect our people to comply with all local laws against Swiss Fair-ON-Pay certificate was received following a review Senior Leaders ² 51 148 – 71 128 199 discrimination, but Givaudan’s ethical values go beyond legal by quality controller SGS, in accordance with the recognised -in % 26% 74% 0% 36% 64% 100% requirements. All our employees have a responsibility to statistical methods. Middle support and promote our Principles of Conduct. We take all managers 1,967 1,941 101 2,821 986 3,908 allegations very seriously and conduct appropriate Disclosure 202 – 1 -in % 50% 50% 3% 72% 25% 100% investigations. This process is managed locally in all locations Ratios of standard entry level wage by gender Associates 3,561 6,460 2,161 5,971 1,889 10,021 Givaudan operates. The numbers are not captured globally. compared to local minimum wage -in % 36% 64% 22% 60% 19% 100% With our commitment to an empowered workforce comes Equal pay our commitment that all employees are paid at least – and in Total 2021 5,579 8,549 2,262 8,863 3,003 14,128 We support women’s empowerment and the associated most cases well above – the minimum salary stipulated by Total 2020 5,026 7,781 2,014 8,002 2,791 12,807 economic growth and development of societies through law or collective agreements. Wages are managed locally 1. This is defined as the number of physical people and includes internal compensation policies including the ratio of remuneration of with a global oversight to ensure competitive and equitable temporary and regular employees. In 2020, it included Activ International, but all other acquisitions were excluded. In 202,1 it includes Activ International women to men. This is a priority at Givaudan and every year we practices. In all cases, Givaudan pays above minimum wages and drom integrated entities; all other acquisitions are excluded. as stipulated by law or applicable collective agreements. 2. Including the Executive Committee. Disclosure 405 – 2 Non-discrimination Ratio of basic salary and remuneration Highly qualified candidates may be more likely to consider Equal pay certification of women to men working for a company if they believe opportunities for For the Givaudan Group globally, the average base salary economic growth will be available to them as they As part of its commitment to being difference between men and women is 1.4% for equivalent demonstrate their value, regardless of their gender or an inclusive and balanced employer, roles and skill sets. For total cash compensation (fixed and nationality. Companies who compensate men and women Givaudan in July, 2021 obtained the variable pay) the difference is 1.4%. and people from all backgrounds equally will have access to a equal pay certification for all sites larger talent pool when recruiting and hiring, and are more in Switzerland. likely to retain these highly talented people. 89 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Diversity, inclusion & people development People development Staff ¹ turnover by age group, gender and region Attracting and retaining talents Age range Gender Our business is about our people and their talent. It is their <30 30-50 >50 Women Men Total passion that continues the Company’s long history of Asia Pacific 15% 9% 11% 11% 10% 10% delivering with excellence and ensures the best possible Europe 12% 6% 8% 8% 7% 7% customer experience. South Asia, Middle East and Africa 15% 6% 9% 8% 8% 8% Latin America 15% 10% 7% 12% 10% 11% We insist on fair compensation, labour rights and good labour North America 30% 15% 15% 15% 19% 17% and management relations as well as continuous Total 2021 16% 9% 10% 10% 10% 10% development of the skills of our talented workforce. Our Total 2020 12% 8% 9% 8% 9% 9% approach results in an engaging and inspiring environment for employees and allows them to realise their career New employee ¹ hires by age group, gender and region aspirations. We foster proactive talent development, offer targeted technical and functional support and work to Age range Gender strengthen our leadership capabilities. We also underpin the <30 30-50 >50 Women Men Total growth of a strong workforce by nurturing a pipeline of Asia Pacific 176 248 14 199 239 438 industry experts and future leaders to develop skills for Europe 290 417 27 306 428 734 sustained success; similarly, we seek to attract local talent South Asia, Middle East and Africa 61 80 3 52 92 144 and industry experts to support growth in all markets. Latin America 216 274 10 179 321 500 North America 184 252 80 142 374 516 Finally, fair and competitive compensation is essential to Total 2021 927 1,271 134 878 1,454 2,332 attract, motivate and retain the best talent in the industry. Total 2020 629 914 89 684 948 1,632 Our remuneration policy is based on the principles of pay for 1. This is defined as the number of physical people and includes internal temporary and regular employees. In 2020, it included Activ International, but all other performance, external competitiveness, internal consistency acquisitions were excluded. In 2021, it includes Activ International and drom integrated entities, all other acquisitions are excluded. and fairness. Disclosure 401 – 1 New employee hires and employee turnover We have reinforced our inclusive hiring strategy to attract and hire the right people for the future. In recruitment marketing, we piloted tools that will help us create more impactful and inclusive job advertisements to attract, engage and assess top talent faster, in line with being a more balanced and inclusive company. 90 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Diversity, inclusion & people development Disclosure 401 – 3 We focus on employee development to improve skills and Customised initiatives were also pursued at the local level. In Parental leave productivity, constantly adapt skills to requirements and offer India, HR teams designed and introduced a training plan and Guided by our people ambition to create a place where we the best opportunities to our people. Talent development calendar customised to employees. In China, the local team love to be and grow, and in line with Sustainable Development involves developing leadership capabilities and ensuring we ran workshops to help employees develop a growth mindset, Goal 8 of supporting decent work, we are committed to have the people who can deliver on the needs of tomorrow. It resulting in both personal and business benefits. In addition nurturing a supportive work environment for our people and also enables us to retain and motivate qualified people. to workshops, employees were provided videos, audio books their families. We wish to contribute to a happier and and live streams on relevant topics including self-awareness, healthier life, especially for new parents and their children. Our internal programmes focus on proactive talent enhancing capacity and cultivating learning as a habit. development and nurturing a well-balanced workforce. All This year, we have enhanced our parental leave policy in the programmes offer challenging and inspiring learning In the Asia Pacific region, Fragrance & Beauty introduced an U.S. Under the updated policy, new parents will have an environments where employees are encouraged to explore ‘Upskilling Yourself’ programme to equip employees with skill additional six weeks of paid leave. This is in addition to the six and experience new ways of thinking and working. This often sets to help them succeed in changing environments. A survey weeks provided to birth mothers through the current involves a blend of digital tools, self-reflection, coaching, in the region showed that employees wished to focus on ‘pregnancy disability benefits. In addition to the official classroom sessions and virtual teamwork, providing a safe communication in a virtual environment, influencing stakeholders parental leave introduction in the U.S., we are also looking environment to apply and test what employees learn. There is remotely and engaging teams virtually. Nearly 400 training seats into a global parental leave alignment in 2022. This involves a strong focus on applying what has been learned back into were provided to F&B employees in the region. designing a global parental leave framework that will define the work environment. minimum standards to be applied across our company to Our long-established Leadership Senses curriculum, which support employees as new parents. This helps provide a For example, we have specific mentoring initiatives and aims to nurture and develop talent from within the Company, healthy start in the life of their children, and promotes their flavourist, operations and management trainee programmes; was redesigned during 2021. We used feedback from 300 own wellbeing as working parents. a sales academy in Taste & Wellbeing and the Givaudan managers and participants, integrated our purpose and 2025 Perfumery School in Fragrance & Beauty. In 2021, we also strategy, and looked at case studies from leading In addition to this leave, and within our global flexible working introduced the ‘Sharpist Coaching’ programme in Zurich. In this organisations to redesign the programmes to accelerate framework, employees have the option to pursue flexible pilot, about 10 employees benefited from one-to-one video effective leadership behaviour development in key talent. The working arrangements in line with the local rules and guidelines. calls with a professional coach and from tailored learning five programmes of Leadership Senses – Discover, Begin, content that complemented many of our programmes. Grow, Evolve and Enhance – offer sequential steps in building Disclosure 404 – 2 leadership skills at every stage of a person’s career journey. Training and education We provide an engaging and inspiring environment for Since the launch of our leadership programmes in 2015, a total employees to realise their career aspirations. This involves of 1,292 of 2,300 targeted managers have been trained – of proactive talent development, targeted technical and During 2021, we also added LinkedIn which 50% are in our leadership pool. Our foundational functional support and work to strengthen leadership manager programmes which are designed for front-line capabilities. We also underpin the growth of a strong Learning to offer ‘just-in-time’ workforce by nurturing a pipeline of industry experts and training to more of our employees, future leaders to develop skills for sustained success. across all our locations. * This programme was piloted in late 2014 with 35 participants, and in 2021 we redefined and focused the scope of the targeted population. 91 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Diversity, inclusion & people development leaders, new or newly promoted managers, in total had 1,105 Disclosure 404 – 3 participants since the initial launch. Percentage of employees receiving regular performance and career development reviews ¹ Our global learning courses, which have been successfully 2020 2021 running for the past six years, were made available virtually Women 94% 92% and designed to stimulate a classroom setting. We delivered Men 83% 82% 147 courses globally this year. 1. This is defined as the number of physical people and includes internal temporary and regular employees. In 2020, it included Activ International, but During 2021, we also added LinkedIn Learning to offer ‘just-in- all other acquisitions were excluded. In 2021, it includes Activ International and drom integrated entities; all other acquisitions are excluded. time’ training to more of our employees, across all locations, when and where they need it. We also introduced the role of Learning Champions, who facilitate training for their entire The discrepancy between ratios for male and female team. By December 2021, there were already 2,066 activated employees is due to the fact that more men are under users and 71 Learning Champions. We are following a phased collective agreements. plan to reach even more employees over time. Our drive to develop and engage our talented professionals is further reflected in projects such as our regional ONE Givaudan onboarding initiative, a programme that allows new employees to acquire fundamental knowledge about our Company and its rich heritage, our business and our DNA. We also have a set of customised management training programmes called Leadership Senses, a yearly performance cycle that includes talent reviews and career discussions, all embedded in a culture of continuous learning, curiosity and feedback. 92 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Employee safety, health & wellbeing the authority to translate the EHS Policy into processes that framework for implementing this engagement on a day-to- Material topic definition are mandatory throughout Givaudan – our Directives, day basis, driving continuous improvement and helping us Employee safety, health & wellbeing Standards and Guidelines. These documents describe and achieve excellence in EHS performance throughout Givaudan. Providing a safe and healthy working environment, define responsibilities and processes for all areas of the encouraging responsible employee behaviours and organisational structure. All workplaces within Givaudan fall under the management maintaining a work-life balance. system, whether used by Givaudan employees or not. With Disclosure 403 – 1 the growth of the Company through recent acquisitions, we Purpose pillars Occupational health and safety are gradually bringing new businesses into the Givaudan EHS CREATIONS NATURE PEOPLE COMMUNITIES management system reporting system. We expect this to be completed for all Givaudan is committed to driving continuous improvement in recent acquisitions in 2021. EHS performance. This commitment is underlined by our Disclosure 103 – 1 Responsible Care Management System (RCMS), which Disclosure 403 – 2 EXPLANATION OF THE MATERIAL provides the framework within which our EHS policy, Hazard identification, risk assessment, TOPIC AND ITS BOUNDARY procedures and daily activities operate. This framework is and incident investigation Ensuring the safety, health and wellbeing of our staff is an structured around the International Council of Chemical Our management system includes Process Risk Analysis, essential part of being a responsible company and employer Associations’ Responsible Care® Global Charter, a voluntary which aims to identify the risks associated with chemical and and we actively promote safe and secure working commitment by the global chemical industry to drive non-chemical processes and to limit them to a tolerable level. environments for all. We look to reduce the number of health continuous improvement and achieve excellence in EHS The approach is meant to ensure the protection of employees, and safety incidents by improving the workplace environment, performance. Our approach is also based on the International visitors, contractors and the surrounding neighbourhood safety behaviour and awareness through a number of Chamber of Commerce’s Business Charter for Sustainable from health hazards associated with work or the working measures. We strive to manage risks associated with working Development as well as guidance from internationally environment. It also protects the safety of operations by in industrial environments and with hazardous chemicals. recognised associations including IFRA (International preventing incidents that might harm people, the community Fragrance Association), IOFI (International Organization of or the environment, damage property or jeopardise Boundary the Flavor Industry) and ISO (International Organization for Givaudan’s reputation and goodwill. This process has been • Givaudan Standardization). RCMS is an established and successful rolled out in all regions and is complemented by risk portfolios initiative to improve performance in occupational health and for each site. Disclosure 103 – 2, 103 – 3 safety and builds on existing EHS policies and procedures, MANAGEMENT APPROACH providing a coherent framework to bind them together. The risk portfolio is an EHS management tool that serves to Givaudan’s Executive Committee defines our Environment, identify the main risks on manufacturing sites. They are Health and Safety (EHS) Policy and determines the As a signatory to the charter, Givaudan commits to actively meant to define which control measures need to be organisational structures responsible for its implementation. strengthening Responsible Care worldwide by dedicating its implemented to manage the main risks. All the manufacturing A member of the Executive Committee is appointed to take people, technologies and business practices to the charter’s six sites are required to have up-to-date risk portfolios covering responsibility for EHS as well as the Responsible Care elements: Corporate Leadership Culture; Safeguarding People risks including fire, explosion, process safety, occupational Management System (RCMS). Givaudan’s Corporate EHS and the Environment; Strengthening Chemicals Management health, etc. The risk portfolio, first introduced in 2018, has function monitors policy implementation and submits policy Systems; Influencing Business Partners; Engaging Stakeholders proven to be an effective EHS management tool. proposals to the Executive Committee. Corporate EHS has and Contributing to Sustainability. The RCMS provides a solid 93 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Employee safety, health & wellbeing Givaudan’s company and site managers are responsible for Internal audits ensure that sites apply our EHS management safety, health and environmental protection in all areas under system. In 2019, the internal EHS audit programme finished All incidents or non-compliances are their control. They have the authority to establish local EHS the first cycle with 34 sites, with a focus on EHS Management. reported, recorded and investigated organisational structures and to allocate responsibilities and The expansion of the programme has since been delayed by to establish the causes. resources as required to support the local organisation. The COVID-19 but is scheduled for relaunch in Q1 2022. We have individuals responsible for EHS at each site are clearly also developed a five-year plan to incorporate new sites and identified. Site management also has the authority to acquisitions. The external audit programme from our insurers introduce local standards and guidelines to ensure compliance (Zurich) was restarted in October. As with internal audits, the with local laws and regulations. Company Managers and /or programme scope has been reviewed to incorporate Site Managers are fully supported by Givaudan’s group and acquisitions and new sites. divisional management. We continue to successfully drive EHS contacts, which are report unsafe conditions and activities. Employees are able to More generally, Givaudan’s Health and Safety directives quality conversations correcting environment, health and report to supervisors/site EHS/global EHS. The EHS reporting require that all Givaudan sites carry out adequate periodic safety issues and reinforcing good safety behaviour, we had system can be found through multiple platforms, including on assessment of risks and control measures within the 39,686 such contacts this year. our intranet, via SAP, via mobile and tablet apps. Reports can workplace. These reviews, led by an EHS professional trained be made online and offline using a form. Employees can also in the execution of workplace assessments, serve to give a Though our health and safety activities have traditionally use the compliance helpline to report in confidence either by comprehensive and valid judgment regarding the protection focused on production sites, in January we expanded our phone or by web intake in all company languages. It is level of occupational health and safety accomplished at the scope to include non-production sites such as commercial important to note that our principles of conduct state that workplace. It documents the protection status attained and offices and laboratories. This will mean the reporting of we do not tolerate retaliation. whether or not control measures are adequate. The standard health and safety data from all Givaudan sites (please note is valid for all workplaces within Givaudan worldwide and that Givaudan regularly acquires companies and that they All incidents or non-compliances are reported, recorded and other sites operated under the Company’s responsibility. Joint may not be included in this scope at the time of writing) and investigated to establish the causes. In keeping with the ventures and toll manufacturers may also be subject to this the subsequent public disclosure of performance. magnitude of the problem and its potential effect, corrective standard, where agreed by both parties. action is taken to eliminate the cause. Any necessary changes Risk analyses are to be reviewed whenever relevant changes, to processes or working practice are implemented, checked, The review team draws conclusions, discusses appropriate identified by our Management of Change (MOC) standard, are recorded in documented procedures and reviewed for control measures, and determines objectives and deadlines made or at an interval dictated by local law or regulations effectiveness as part of scheduled reviews. for any foreseen remedies. Where control is judged as being (e.g. US PSM) or at least every five years, though longer inadequate or not enough information is available, workplace revision time may be obtained with the formal agreement of Our approach to incident investigation is based on root cause assessment has to identify ways of correcting the situation. the Global EHS. analysis. This approach includes gathering facts, performing All the information and facts gathered in the course of the an investigation, identifying immediate and root causes assessment are documented. Every Givaudan employee is required to take reasonable care and building an action plan based on the hierarchy of controls. in the workplace for their own health and safety, and for that We then validate the report with relevant peer review and of others. Employees are empowered to challenge any clearly assigned accountability in terms of implementing situation they believe to be dangerous and are encouraged to control measures. 94 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Employee safety, health & wellbeing Relevant global experts are part of the investigation team for Through the use of the Humantech Industrial Ergonomics certain events. Their role is to ensure adequate learning, Software, sites can focus on assessing activities and identifying Excelling in health consistency and the proper sharing of what has been learnt, ergonomic risks with the aim of improving performance and at the site, regional and global levels when required. These reducing risk in the different workplaces. Rollout of the global and safety everywhere, learnings are also used to improve occupational health and programme for the acquisition sites is going as planned and every day process safety programmes and are shared with the relevant commercial site expansion is scheduled for 2022. We held virtual expert networks. Important findings are shared with all sites. workshops in April for sites in Naturals EAME region, in June for Impressive safety records have been set at the engineering community, covering advanced ergonomic two of our production sites in India, with Disclosure 403 – 3 design concepts and in September for sites in the APAC region. no recordable case injuries at Jigani for Occupational health services A total of 257 ergonomic assessments were completed at more than nine years and none at Daman Our Occupational Health Programme is based on the pillars of 35 production sites in 2021. We also started trials of the for over twelve years. Health Surveillance, Hazard Recognition, Hazard Management, wearable SoterSpine device to improve physical wellbeing in the This success is the result of a positive Hazard Assessment and Workplace Controls. A three-year workplace. The device and the associated app-based training health and safety culture that stems from implementation plan based on the “plan-do-check-act” programme allows employees to improve ergonomic practices the engagement of leaders and team- approach – an iterative management method used for the and avoid physical injury. Our first pilot programmes were at focused efforts addressing people, training control and continuous improvement of processes and products our sites in Devon and Avignon, and we plan to extend the use and processes. Creating awareness is also a – has involved site preparation, training and implementation of this technology in 2022. Our Devon and Carol Stream sites priority. Both sites organise engagement support for occupational health programmes on ergonomics also implemented a Fit for Work initiative to complement the events for employees, including activities and exposure control. traditional assessment approaches. Fit For Work personnel for families and the community, extending identify and correct minor ergonomic issues before they the culture of care beyond the sites. The chemical exposure control programme helps us better become injuries. This safety behaviour has been applied protect our people. Based on new tools for workplace at our site in Pune where we had no lost assessment, which help find the limit of exposure for each The implementation of the Humantech Office Ergonomics time injuries since the production at this chemical and facilitate the development of engineering or software (formerly Ergopoint), provides to all Givaudan factory started in 2019. other techniques to lessen such exposure, the programme employees a training module and platform to perform self- has been rolled out to 48 production sites. We plan to begin assessments of individual computer workstations, resulting in roll-out at additional sites in 2022. recommendations for correct workplace set-up and office habits that help in the prevention of musculoskeletal disorders. We have been extending the Ergonomic initiative, introduced In 2021, about 943 employees completed the e-learning course to flavours and fragrance production sites in 2015, now to and more than 829 self-assessments were entered throughout commercial and office sites. Such measures allow us to reduce the year. Since the programme launched in 2020, more than incidents and improve the long-term health and wellbeing of 2740 employees have completed the e-learning course and all employees. Ergonomic assessment in operations is carried more than 3000 self-assessments have been entered. The roll- out by experts, while self-assessment in the office is carried out of the Office Ergonomic software was affected by out via digital training. COVID-19 pandemic and will continue in 2022. 95 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Employee safety, health & wellbeing Disclosure 403 – 4 Communication Spain, U.K, Brazil, France and Switzerland. In 2021, 52 new Worker participation, consultation, Good communication demonstrates commitment, deals with facilitators were trained in 9 countries, and an additional and communication on occupational concerns and questions, raises awareness, provides information, 13 trainers were trained through our online train-the-trainer health and safety motivates and drives improvement. Lines of communication are sessions. There has been a delay in the accreditation of 11 new Each Givaudan site must have an EHS Committee (SEC). defined, internally and externally to ensure a good flow of trainers because of the pandemic. As a consequence, Convened regularly, it governs and provides a forum for information within the organisation and to communicate implementation has been delayed in the affected sites. We plan exchange on EHS topics relevant to the site. The members of necessary information on occupational health and safety. to complete these accreditations and continue implementation the SEC represent all site activities and perform high-level in APAC in 2022. reviews of EHS requirements, assess options, costs and Internal communication processes are established and maintained consequences of potential measures and decide on measures throughout the organisational structures. Programmes are in Generally, training is provided on a site-to-site basis and is and activities to be taken to improve EHS performance where place to enable employees to ask questions about the available in a range of local languages such as Bahasa, required or recommended. organisation, express opinions and stimulate a dialogue while Hungarian, Japanese and Italian. addressing concerns and sharing information. Knowledge-sharing The committee must meet at least once a quarter and should be with peers, internally and externally at all levels, is essential to our Employees are trained in all of the relevant EHS standards and made up of the site head as the Chair, the EHS Manager as the success and is actively supported and promoted. we ensure that people are able to perform according to these secretary and members composed of other relevant site standards. Our approaches also include safety leadership functions such as the production manager, engineering manager Decisions, actions and outcomes of any and all reviews are training for line managers and a set of Safety Ground Rules. and other employee representatives that are either appointed or recorded and communicated to all stakeholders involved or Every location receives a yearly pre-defined local safety target elected, depending on local law. In the Europe Africa and Middle affected by the review or incident and, where required, that is aligned with and contributes to the global objective in East region, for example, in some countries including France, regulatory and/or legal bodies are informed. accident reductions. Our EHS Excellence Programme aims to Germany and the UK, the works council or a dedicated team of develop the EHS culture across Givaudan and it has been works council members (delegated by the trade unions) needs Disclosure 403 – 5 introduced to 38 sites in 23 different countries. This year has to be informed. In other countries such as Hungary and India, Worker training on occupational health been focused on reviewing the model, the maturity model and the safety committee is represented by Company/Site Manager, and safety the implementation approach. No additional sites were added, representatives from line management, representatives from Our goal at Givaudan is to eliminate accidents and get everyone but after pilot projects in Vernier and Pomacle, both started in the works council, and other production and non-production home safe every day. We engage our employees in actively October, we will finalise the programme and move on to the employees. Similar legal requirements also exist in some contributing to this target through awareness campaigns and next phase of implementation. This will involve repeat countries in the APAC region. In Indonesia, for example, it is specific training programmes and look to ingrain these reflexes workshops at the 38 sites and rollout to the acquisition sites. legally required to have an EHS Committee Team. This into our very culture. Overall, our programmes help embed a Committee Team consists of representatives from each culture of health and safety at work and at home, and include In this way, our EHS mission goes beyond rules and processes department and meets monthly. In Malaysia, and as required by workshops, awareness campaigns and engagement events. by aiming to empower all employees to take shared law for every workplace with more than 40 employees, we have Our EHS Facilitators play a key role in engaging their peers responsibility. Our goal is to enhance this EHS mindset in the a Safety & Health Committee in Melaka and for the GBS office. through hazard awareness, risk reduction and toolbox talks. So daily activities of all employees so it becomes second nature The committee involves employer representatives and far, we have trained over 200 facilitators. In 2021, we started as well as the right thing to do. Safety underlies everything employees from different departments. rolling out the programme in China and India as well as we do and we are now building on our commitments with reinforcing the role in other countries including in the U.S., two recently introduced purpose goals – before 2025, we will 96 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Employee safety, health & wellbeing reduce our total recordable injury rate by 50% and ensure For contract work, both the contracted party and Givaudan U.K., Singapore, France, Indonesia, Malaysia and Hungary, to access to mental and physical health initiatives, tools and must be fully aware of and prepared for associated hazards. give a few examples) we provide company health plans in training for everyone on our sites. Contractors are required to demonstrate a full understanding addition to basic government health plans. This is our overall of the job/task/activities being performed and have a system approach to facilitating access to medical services and care Our health and safety activities have focused exclusively on our to understand and control the risks in place. The contractor is on a social and complementary health basis. production sites, but we are now expanding our scope to inducted into site policies and procedures and mandatory include non-production sites such as commercial offices and Contractor Safety Orientation/Training is performed before More specifically, our promotion of worker health and wellbeing laboratories. It is important to educate and equip all our the contractor is allowed on site. Refresher training is is based on a framework inspired by the Warwick-Edinburgh employees with appropriate safety information and access to performed annually. Training content is tailored according to Mental Wellbeing Scale, which was developed to aid in the support. This will mean the reporting of health and safety data assessed risk level and can range from basic safety guidelines measurement of mental wellbeing in the general population and from all recently acquired businesses and the subsequent public to topics such as hazardous energy isolation. Training is with the evaluation of projects, programmes and policies that aim disclosure of performance. The programme, which included currently provided on a site-by-site basis. to improve mental wellbeing. Our approach is built on the three training EHS people at our non-production sites, continued in bases of physical and mental wellbeing, as well as a sense of 2021, helping us meet our aim to provide EHS coverage for the Disclosure 403 – 6 purpose, supported by appropriate ways of working and whole organisation, including acquisition sites. Promotion of worker health leadership behaviours, to ensure that we can all take responsibility Overall, we review our employee benefits every year to see to care for our own health as well as that of our colleagues. In terms of specific programmes, the EHS group this year whether they are in line with the market. We first consider continued its global fire safety campaign. Fire represents a local social programmes and then build on them with specific Physical health threat to our people, assets and business and the campaign company benefit plans. For instance, in many countries (U.S., With the term “physical health,” we refer to the overall physical was launched to improve employee awareness of fire safety condition of the body. Key drivers of our physical wellbeing are and to minimise risks. The aim is to build a proactive, sleep, recovery, nutrition and exercise. We are not always preventative fire safety culture and to fill any technical gaps in aware of the importance of recovery/relaxation and often find fire prevention measures. This year’s phase of the campaign, Warwick-Edinburgh little time for recovery in the workplace, even though it is which focuses on the top three causes of fire in a workplace critical to maintaining good physical health. Tools for – waste, electrostatic charges and electric risk – centred on Mental Wellbeing Scale addressing physical health at Givaudan include our local electrostatic charges, building awareness and competences occupational health and fitness programmes. Programmes through a train-the-trainer model. In 2021, we conducted offered vary by region, but include, for instance, employee-led 28 sessions, with more than 200 employees trained at our fitness groups and running clubs in many of our sites as well as operations sites. We expect this third phase of the campaign PURPOSE activities such as the yoga courses. At some sites, we also offer to be completed in 2022. Ways of Leadership the seasonal flu vaccine to active employees. working behaviours We were able to carry out some in-person interactions such MENTAL as site visits, site-specific demonstrations or face-to-face meetings as allowed by the evolution of the pandemic PHYSICAL situation, though others were either postponed or organised as virtual meetings. 97 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Employee safety, health & wellbeing This approach of building connections is also seen in our purpose can have a negative impact on your overall wellbeing. Our global Employee Assitance ‘Health & Wellbeing Communities of Practice’ programme, Motivation can be increased by how much time you spend on Programme offers a 24/7 online which was launched globally during the year as a forum for activities that involve giving to others rather than receiving help-point in over 200 languages sharing common interest and best practice in health and from them. We look to boost employee motivation through a wellbeing initiatives. Involving employees from North number of actions including our continuing programme as well as telephone advice with America, Latin America, the UK and Dubai, topics included Imagine; a dedicated channel “Let’s Imagine Together” on Ollie, local consultants. strategies for better sleep, demonstrations of cooking to aid our community-driven employee communications platform, mental health, and the benefits of family activities. Many where we share more about Givaudan’s Purpose and why we additional local initiatives focusing on physical and mental do what we do; local Green Team activities as well as local health and wellbeing took place: this included badminton charity committees. Mental health tournaments in China, health coaching in North America, and We use the term “mental health” in relation to our feelings and a ‘workout for good’ challenge in Singapore. Our continuing programme Imagine helps employees thought processes. It is about our ability to concentrate, make understand our purpose, and gives them space to personally good judgments or remember details. If we are feeling stressed, In line with our purpose ambition, we are committed to ensuring connect to it. In 2021, we invited everyone to Imagine. This anxious or depressed, we will find it harder to concentrate, or that we continue to provide more tools that support our programme is an invitation for all colleagues at Givaudan to make a decision. At Givaudan, we support our employees in employees’ mental and physical health. Employee Assistance come together to explore our purpose. We took the looking after their mental health through our global Health & Programmes are a commonly offered benefit designed to help opportunity of new, virtual ways of working to invite colleagues Wellbeing programme, local mental wellbeing webinars, a employees deal with personal problems that might adversely to co-create the programme. More than 150 employees took global employee assistance programme hotline, local employee impact their work performance, health and wellbeing. We have part in its development, suggesting stories, examples and support groups as well as local mental health first aiders. While introduced a confidential tool to support the mental, physical, different ways to bring our purpose to life. This approach also programmes vary by location, overall we look to make sure social and financial wellbeing of our employees. allowed us to cross language barriers, translating the content that people are aware of signs of feeling unwell and we place a into the 18 most commonly spoken languages at Givaudan. big emphasis on prevention. Our EAP partner offers a 24/7 online help-point in over 200 languages as well as telephone advice with local consultants. These three bases need to be supported by ways of working and We launched our ‘Happier, Healthier Habits’ campaign in 2020 It offers support on a variety of topics such as personal wellbeing, by leadership behaviours. Being conscious of how we work is to foster connections between colleagues and offer guidance mental health, relationships, family matters and workplace critical during this time. Pressures involving deadlines, on physical and mental health. Mental wellbeing impacts all challenges. All employees can access EAP including those from responsibilities, task complexity, challenge, relationships and areas of life and influences how we think, feel, and behave in newly integrated companies. Family members of Givaudan supervision can seriously reduce our wellbeing, especially if we daily life. It also affects our ability to cope with stress, overcome employees can also use the EAP services. Employees can connect fail to recognise and manage it well. At the same time, good challenges, build relationships, and recover from setbacks. This to services by phone, app or by web platform using country leadership behaviours are key enablers to building and initiative was continued in 2021 through ‘Happier Healthier specific log-in details. maintaining workplace wellbeing and resilience. By modelling Habits Circles’. A second series called ‘Connecting for wellbeing behaviours, demonstrating good work-life integration, #climatepositivity’ invited employees to explore how building Sense of purpose strong working relationships and a healthy lifestyle, we can lead connections with each other and nature can lead to positive A sense of purpose, or motivation, is another significant and champion wellbeing. outcomes such as better relationships, more positive element of wellbeing. It is important to have things in our lives conversations and the ability to find calm and build resilience. that give us meaning – living without motivation or a sense of 98 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Employee safety, health & wellbeing We approach and help employees with ways of working We also continue to ensure the compliance of our Disclosure 403 – 9 through our Spark your Senses Learning and Development classification and labelling for all products (raw materials, Work-related injuries Newsletter, our Humantech Office Ergonomics tool, our IT intermediates and finished products) that we sell, produce In helping meet our ambition to reduce our total recordable collaboration tool guides as well as local HR and EHS team and ship. We harmonise and optimise packages and labels. injury rate (TRCR) by 50% by 2025 compared to the 2018 support. We continued to provide support and resources for baseline, we are expanding our focus to take into account all employees in 2021. Many regions held training sessions to help We review our labelling in relation with industry association medical cases as well as lost time injuries (LTIs). Our TRCR is employees to be more effective with virtual working and a flex standards annually. The labelling manual is a coordinated the total of lost time injuries, restricted work cases and medical working toolkit is also being introduced locally to support effort of the Fragrance and Flavour industry and results from treatment cases per 200,000 hours worked. The number of employees and managers. This year we published three issues a review of classification and labelling information for our actual cases increased relative to previous years because of the of the Spark your Senses Learning and Development newsletter ingredients, covering both synthetics and natural complex inclusion of cases from recently acquired companies, yet the to support colleagues during COVID-19. They focused on how substances. Internal and external stakeholders impacted by reduction in our recordable injury rate points to our success in listening is a great way to support each other and help each changes were informed in advance and the new classification embedding a positive and long-term culture of health and other during this time; finding balance and staying connected, and labelling information was updated in June. We have seen safety. We are well on track to reaching our target. with a focus on addressing Webex fatigue and, finally, an issue very smooth and successful implementation. on embracing digital learning, where we celebrated a year as we transitioned to remote/virtual learning because of the The Product Stewardship Team also reviews Safety Data Sheets In 2021, we have reduced our pandemic. In addition, we continue to support our colleagues (SDS) and is continuously improving this documentation in with the Humantech office ergonomics tool that works both at relation with industry association standards, new regulations recordable injury rate by –22% work and in the home office. We also provided IT collaboration or additional information. The Safety Data Sheets (SDS) mainly since 2018. tools for continuous development and tips and hints. provide information on chemical identity & physical/chemical properties; hazards for health, safety, environment; preventive Disclosure 403 – 7 and emergency response measures, disposal instructions as Prevention and mitigation of occupational well as medical advice. SDS of raw materials are provided to Disclosure 403 – 10 health and safety impacts directly linked by our employees, while those of finished goods are supplied to Work-related ill health business relationships our customers. We have a number of measures for helping our employees avoid We look to prevent and mitigate occupational health and safety work-related ill health. The exposure control programme helps impacts linked by business relationships through a number of We look to prevent and mitigate occupational health and find the limit of exposure for each chemical and facilitate the approaches. We ask, for example, certain suppliers to carry out safety impacts linked by business relationships through a development of engineering or other techniques to lessen it. an audit – the Sedex Members Ethical Trade Audit, SMETA – as number of approaches. We continue, for instance, to ensure validation of their commitment to our key responsible sourcing the compliance of our classification and labelling for all We have been extending industrial and office ergonomics pillar of Health & Safety. More information can be found in the products (raw materials, intermediates and finished products) initiatives as described above. Such measures allow us to reduce chapter on Responsible Sourcing & Traceability. that we sell, produce and ship. We harmonise and optimise incidents and improve the long-term health and wellbeing of all packages and labels. employees. Ergonomic assessment in operations is carried out by experts, while self-assessment in the office is carried out via digital training. 99 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Employee safety, health & wellbeing We also look to support the mental health and wellbeing of our Health and safety indicators employees. Our EAP partner offers support on topics such as 2018 2020 2021 personal wellbeing, mental health, relationships, family matters Number of Total Recordable Cases (TRC) ¹ 130 115 180 and workplace challenges. All employees can access EAP Fatalities 0 0 0 including those from newly integrated companies. Family Number of LTIs 24 32 59 members of Givaudan employees can also use the EAP services. Number of Restricted Work Cases (RWC) 56 46 63 We continued to foster connections between colleagues Number of Medical Treatment Cases (MTC) 50 37 58 and offer guidance on physical and mental health in 2021 Total Recordable Case Rate 1.33 0.88 1.04 through our ‘Happier Healthier Habits Circles’ programme. A LTI rate 0.25 0.25 0.34 second series called ‘Connecting for #climatepositivity’ Number of lost days ² 645 998 855 invited employees to explore how building connections with Lost day rate ³ 6.61 7.65 4.95 each other and nature can lead to better relationships, more Number of hours worked ⁴ 19,503,663 26,094,174 34,544,283 positive conversations and the ability to find calm and build Absenteeism ⁵ 2.7% 2.9% 3.6% resilience. Givaudan does not have an illness reporting 1. TRC is according to the official OSHA definition. The 2021 figure increased with the inclusion of our acquisitions. 2. 2020 includes 73 days carried over from previous year. 2021 includes 21 days carried over from previous year. system for occupational diseases that covers all group and 3. Number of lost work days resulting from work-related accidents per 200,000 working hours. external employees. Calculation based on scheduled work days lost from the day after the accident. 4. 8.9% of these represent external contractors for whom the Company is liable. 5. C ompared to the number of normal available working days, includes correction for employees working on a part-time basis. With regards to COVID-19, only absences due to positive tests are in scope. Total recordable cases by region 2021 Safety performance – ‘Everyone Home Safe everyday’ 2,020 2,021 . Asia Pacific 17 15 Europe, Middle-East & Africa 51 74 . Latin America 4 9 North America 43 82 . Total 115 180 . TRC Rate TRCR Target 100 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Consumer health & wellbeing Disclosure 103 – 2, 103 – 3 Our Nutri TasteSolutions® programmes enable the reduction of Material topic definition MANAGEMENT APPROACH undesirable ingredients such as sugar, salt or fat. For example, Consumer health & wellbeing Being a truly sustainable business includes developing Nutri TasteSolutions® Sugar provides nutritionally balanced Developing products that promote the health and products with health and wellness benefits. This is why we alternatives that cut sugar but do not compromise on taste: the wellbeing of people as they experience our ingredients aim, by 2030, to double our business through creations that products are just as satisfying and complex as their full-sugar and formulations in everyday consumer products. contribute to happier, healthier lives. We are committed to counterparts, helping consumers with their sugar reduction driving purpose-led, long-term growth with the intention of needs. The Nutri TasteSolutions® Sodium programme helps Purpose pillars increasing our positive impact on the world by innovating tackle the issue of ‘hidden salt,’ which is salt added in the CREATIONS NATURE PEOPLE COMMUNITIES sustainable solutions. manufacturing process as a taste enhancer to packaged foods: it accounts for more than 70% of our sodium intake. Products We are a business-to-business organisation and do not sell developed through this programme help our customers create Disclosure 103 – 1 products directly to the end consumer. We do however work food experiences that meet consumer demand for salt reduction EXPLANATION OF THE MATERIAL with customers in the food, beverage, consumer goods and while maintaining great flavour. Similarly, Nutri TasteSolutions® TOPIC AND ITS BOUNDARY fragrance industries to create products that are integrated into Fat and TasteSolutions® Mouthfeel can provide a rich and The creation of innovative, sustainable solutions is at the core drinks and meals, fine perfumes and laundry care. As detailed in rounded taste sensation on the tongue while also addressing of our company purpose. We strive to develop products and the chapter on Innovation capabilities & management, we look health and wellness concerns by reducing fat and calorie levels. services that inspire emotions and touch millions of lives, to integrate sustainability into all of our innovation, developing improving our world and making it a happier, healthier place. products that benefit society and the environment. Our Nutri Essentials offering adds desirable nutrients, derived As a key player in taste and wellbeing and fragrance and from natural ingredients. Our acerola is a highly standardised beauty, we are in an optimal position to influence both the Taste & Wellbeing source of naturally sourced vitamin C derived from acerola health and wellbeing of consumers. For example, by Today, more than ever, consumers are seeking holistic food cherries grown sustainably in Brazil. The cherries are harvested developing great tasting plant-based foods and solutions for experiences. Going beyond great taste, they look to shift to manually and processed carefully to preserve the fruit’s naturally foods with lower levels of sugar, fat and salt we can encourage more mindful diets. From reduced-sugar chocolate bars to high vitamin C content. The resulting ingredient is so rich in the uptake of healthier diets. Fragrance contributes to the functional foods and vitamin and mineral-rich nutritional vitamin C that a low dose is needed to achieve 100% of the sense of wellbeing and can be used around the world to drive beverages, they want their foods and beverages to be both recommended daily intake. Another example is our oat extract consumers to choose products with desired health benefits. delicious and nutritious. At Givaudan, we enable our SWEOAT®. Rich in fibre and high in protein, it delivers an customers to deliver unforgettable food experiences that exceptional nutritional profile and a range of proven benefits, Our product portfolio allows us to meet the needs and empower consumers to make more nutritious choices. including lowered risk of cardiovascular diseases ¹, reduced blood expectations of our customers and their consumers, while sugar increase after eating ², good digestion ³ and satiety ⁴. contributing to human health and wellbeing. With our Nutrition and Health pillars, part of the “Does Good” experience space, we provide solutions that enhance the 1. Ferguson et al, 2019, Clinical Nutrition, Volume 39, Issue 1. Boundary nutritional value of food and support healthy living, bringing 2. Tosh SM, 2013, The European Journal of Nutrition, • Givaudan https://doi.org/10.1038/ejcn.2013.25. • Customers and consumers more of the natural wellbeing benefits that consumers want. 3. Poeker et al, 2018, Scientific reports, https://doi.org/10.1038/s41598-018-22438-y. 4. Hlebowizc et al, 2008, Journal of the American C ollege of Nutrition, Volume 27, Issue 4. 101 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Consumer health & wellbeing Health Canada and one from the Colombia National Food and Fragrance & Beauty Our oat extract SWEOAT® is rich in Drug Surveillance Institute (INVIMA). Promoting health and wellbeing also means helping people feel fibre and high in protein, delivering better and lead happier, healthier lives. Consumers want to an exceptional nutritional profile. With our Wellness Essentials and Health Essentials portfolios look good and feel good, and look for products that promote we are looking to provide intuitive wellbeing benefits designed mental and bodily health and wellbeing. They seek, for example, to meet food & beverage expectations as well as clinically fresh scents that can get rid of bad odours in clothing and the Our Wellness Essentials botanical ingredients and infusions proven benefits through innovative bioactive ingredients environment, boosting self-confidence and in turn improving are rooted in traditional uses that offer an authentic-tasting specifically developed for the supplements market. They social inclusivity. They want fragrances that positively influence wellness experience while addressing growing consumer include a selection of natural solutions that address common how they feel as well as products that contribute to their sense interest in supporting wellbeing through clean, natural health needs such as immune system support, relaxation and of self-esteem and are good for the environment. functional food and beverages. energy, cognitive performance, or digestion and gut health. In Fragrance & Beauty, we aim to develop products that smell Amongst our Health Essentials offering, one example is our Plant-based diets are recognised as being ‘planet friendly’ diets as great, but also bring wellbeing benefits to consumers and are award-winning turmeric extract, TurmiPure Gold®. Results well as beneficial for human health. Through our Plant Attitude good for the planet. Wellbeing is a significant concern to from a proprietary study indicate TurmiPure Gold® delivers platform and an entire ecosystem of experts, we co-create diverse customers and we carry out extensive scientific research at superior curcuminoids bioavailability at a low dose ¹. Across the food choices and plant-based food experiences that meet our Health and Wellbeing Centre of Excellence in Ashford, UK 24-hour study period, a small dose of TurmiPure Gold® (300mg) consumer needs and contribute to lowering the environmental to help us understand it and how it relates to fragrance. This was shown to deliver as many curcuminoids to the blood as footprint of consumer diets. We have technologies and an gives us deep insight into how fragrances are perceived and 1,920mg of standard turmeric extract. Completely natural* and integrated portfolio specifically designed for meat, fish or dairy how they affect the way we think, feel and act. 100% organic, the product can be used in a wide range of alternatives. We offer a holistic portfolio of ingredients and nutraceutical applications, including new formats such as shots solutions to deliver on taste, colour, nutrition and health. We have We have, for example, used in-depth neuroscience research to or gummies thanks to its instant water dispersibility. built a global community of innovators, including industry develop our portfolios of Scentz technologies, which are partners, academia, and start-ups to augment our world-class designed to provide holistic or specific wellbeing benefits for Other examples include our Cereboost® American ginseng, a capabilities in alternative proteins. consumers. Our patent-pending technology DreamScentz™ is natural adaptogen that delivers scientifically substantiated 1. Fança-Berthon et al, 2021. The Journal of Nutrition, Volume 151, Issue 7. now using our understanding of the link between fragrance, cognitive health benefits. We have recently published a study 2. Bell et al, 2021. The European Journal of Nutrition, positive mood states and good sleep to explore how fragrances that has demonstrated promising effects on cognitive function https://doi.org/10.1007/s00394-021-02654-5. can be used to help people sleep better and longer. Our patented and mood, potentially via gut microbiome modulation ². 3. Vidlar et al. 2016, World Journal of Urology, MoodScentz™ guidelines enable perfumers to harness the https://pubmed.ncbi.nlm.nih.gov/26049866. 4. Cho et al. 2021, Journal of Urology, https://doi.org/10.1097/JU.0000000000001384. power of fragrances to evoke positive moods. MoodScentz™ is Last but not least, Flowens®, produced from a full-spectrum * No artificial nor synthetic ingredients. backed by solid scientific research, giving our perfumers cranberry blend, is an award-winning ingredient that meets confidence in the emotional impact of their compositions and growing consumer demand for natural solutions supporting DISCLAIMER making it possible for customers to create unique products that urinary health. It has been clinically shown to improve lower This section is intended to provide business-to-business information on our deliver genuine wellbeing benefits. VivaScentz™ is a solutions. As it can be accessible from many locations, the information provided urinary tract symptoms (LUTS) in men ³ and overactive bladder might not be applicable, or is not intended to satisfy the requirements of all revolutionary technology that measures consumer wellbeing (OAB) in women ⁴. It is further supported by seven approved countries: the information and its uses must be checked for compliance under holistically in the context of perfume or oral care. Rigorous appropriate local regulations. Any communication to end consumers must be done testing involving 2,000 consumers showed that fragrances health claims related to lower urinary tract health – six from according to the appropriate local regulations/guidance. 102 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Consumer health & wellbeing created with VivaScentz™ enhanced the user’s overall state of Inspired by the Japanese art of forest bathing, Phytogaia™ being, with consumers reporting that they felt more optimistic captures the wellbeing benefits of molecules called and better equipped to face their everyday lives. phytoncides, which are emitted by forest trees and are proven to have a positive effect on people. The molecules provide We are also developing products that address malodour, wellbeing benefits when used in fragrances by improving which can have a negative effect on self-confidence, mood consumers’ moods and by reducing stress and fatigue. The and wellbeing. Our Zap portfolio, the first ever patented success of this product led our Science and Technology team malodour technologies platform for specific product to study oceanic atmospheres and coastal environments, categories, is designed to enhance the consumer experience leading in turn to the creation of Thalassogaia™. Drawing and hygienic performance of our customers’ products. This from the inspiring surroundings of the beach, our scientists year, we launched a new addition to the portfolio, Natzap™, developed a collection of Thalassogaia™ perfumery accords to address demand within differentiated naturality segments that mimic the composition of the marine environment and globally. Oral care is another important area in emotional are meant to trigger the calming feeling of being near or in wellbeing. From toothpaste to mouthwash, we look to water. They can be used in all fragrance categories. develop solutions that smell and taste great, and contribute to freshness and confidence all day long. Another key focus for our Fragrances team is creating products to enhance wellbeing and self-esteem, and to promote a positive mindset. We are already leading the industry in researching the effects of odours on emotion. Our studies have revealed how scents can increase positive emotions, decrease negative mood states, disrupt cravings and reduce physiological signs of stress such as inflammation. Two examples of such innovative fragrance technologies are Phytogaia™ and Thalassogaia™, which allow perfumers to Phytogaia™ and Thalassogaia™ bring the natural benefits of forests and the oceans into perfumes. They were developed according to our Naturality allow perfumers to bring the Guide™ principles and Company purpose, and designed in a natural benefits of forests and the nature-conscious way to bring multiple health and wellbeing benefits to consumers in all fragrance categories. oceans into perfumes. 103 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Human rights Global Compact’s Ten Principles and the WBCSD’s CEO Guide to Sourcing & Traceability, help them to do so. Givaudan strives to Material topic definition Human Rights, to which we are signatories. It also forms part of be a force for good in the world and looks to act with empathy Human rights our contribution to realise the Sustainable Development Goals, and humility wherever we are present. Ensuring that Givaudan respects human rights by acting especially Goals 2, 3, 5, 6, 8 and 17, and furthers our journey with due diligence, as defined in the UN Guiding Principles towards obtaining B Corp certification. Boundary for Business and Human Rights and International Labor • Givaudan Organization’s Declaration on Fundamental Principles Beyond this general commitment to human rights, we have a • Suppliers and Rights at Work. number of focus areas that have been identified as particularly relevant for Givaudan through ongoing engagement with Disclosure 103 – 2, 103 – 3 Purpose pillars internal and external stakeholders. In this chapter, we address MANAGEMENT APPROACH CREATIONS NATURE PEOPLE COMMUNITIES Freedom of Association and Collective Bargaining; No Child We respect, protect, and fulfil human rights within our sphere Labour, and No Forced Labour, Compulsory Labour or Human of influence and contribute to eradicating inequality and Trafficking. Good relations between management and unfair labour conditions wherever we do business. We strive Disclosure 103 – 1 employees are necessary, for example, to the operation of a to make a positive impact on the communities in which we EXPLANATION OF THE MATERIAL sustainable and viable business. This is particularly critical to are present. Our commitment is based on the International TOPIC AND ITS BOUNDARY Givaudan, where our global workforce operates in an Bill of Human Rights, which consists of the Universal Human rights are inherent to all human beings, regardless of international market and must be capable of adapting to Declaration of Human Rights, and the International Labour race, sex, nationality, ethnicity, language, religion, or any other rapid change. Children have the right to an education and we Organization’s Fundamental Conventions on Rights at Work. status. As expressed in the International Bill of Human Rights are against all forms of child, forced and compulsory labour. and the International Labour Organization’s Declaration on We fully endorse and support the UN Guiding Principles for Fundamental Principles and Rights at Work, they range from Five additional areas of Human Rights that are particularly Business and Human Rights, the OECD Guidelines for the very right to life and liberty to rights to education and work relevant to Givaudan are: Right to Decent Work and Multinational Enterprises of June 2011, the Tripartite Declaration and cover a wide spectrum of human experience. Occupational Health and Safety; Consumer Health and of Principles concerning Multinational Enterprises and Social Safety; Equality and Non-Discrimination; Free, Prior and Policy of March 2017 as well as WBCSD’s CEO Guide to Human We believe that everyone is entitled to these rights and that Informed Consent (FPIC) and Land Rights and Rights of Rights. Where our own principles and practices are stricter than upholding them, and, where applicable, promoting them, is Communities Where We Operate. Our position and efforts in applicable legislation and in alignment with applicable human the right thing to do. It is fundamental to the best way of these areas are covered by our Human Rights and Responsible rights frameworks, we apply our higher internal standards. doing business and living our company purpose. Sourcing Policies and are addressed in chapters on Diversity, Inclusion & Human capital development, Employee Health & Our explicit commitment to respect human rights, including A commitment to respect human rights, to act with due diligence Safety & Wellness. labour rights, is outlined in our Group-wide Principles of to avoid causing or contributing to human rights abuses through Conduct. In January 2021, we also published a new Human our own activities, and to prevent and address abuses linked to Our human rights efforts are relevant to the whole organisation Rights policy, which expands on this commitment. It applies to our operations, products or services around the world enables us but we also look beyond to our partners throughout the supply Givaudan’s direct operations, the entities we own and the to be a responsible corporate citizen. Specifically, these efforts chain. We aim to ensure that they adhere to our principles and, facilities we manage. We expect every employee to take help us to live up to our commitments under the United Nations as explained in more detail in the chapter on Responsible personal accountability for upholding our principles in daily 104 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Human rights All issues are handled confidentially, consistent with We continue to hold regular Union/Works Council consultations actions within their own sphere of influence and with business partners and stakeholders. Information on our efforts and Givaudan’s need to investigate, in compliance with legal with a group of employees who represent Union/ Works Council commitments around social responsibility, human rights and requirements and in cooperation with law enforcement members at all applicable sites around the world, including for ethical business aspects can also be found in our Commitment authorities, where required. Givaudan does not tolerate any all European Union member states where we have operations. to Social Responsibility Position Statement, and in our annual form of retaliation against anyone who seeks advice or The purpose is to inform and consult employees about UK Slavery Act and California Transparency Act statements. reports misconduct in good faith. significant changes in the organisation, ensure that the right to freedom of association and collective bargaining is not put at Putting our policies into practice means working continuously to Beyond these general commitments, we have a number of risk, and to report any feedback to the Executive Committee so identify human rights impacts, avoiding and addressing them, focus areas within the topic of human rights. Some are that it may take suitable action if required. continuously monitoring the effectiveness of our measures and discussed below and others can be found in additional periodically reporting on our performance. We are on a journey chapters as detailed above. Due to COVID-19, the European Works Council did not take of continuous improvement and in a constantly changing place in 2021 and the meeting has been postponed until early operating environment we need to regularly review the way we Freedom of association Q2 2021. respond. We are implementing a Group-wide human rights We respect every employee’s right to freedom of association programme, which will also include human rights assessments and collective bargaining and follow commonly recognised We call on suppliers, including smallholders, to allow workers and measures to identify and engage with vulnerable or best practices with all of our employees globally. Our positions to exercise their rights to freedom of association and marginalised groups as part of the stakeholder dialogue. concerning freedom of association are highlighted in our collective bargaining. We ask for their collaboration in Principles of Conduct, a document available on our website. supporting the policy and disclosing information that could We also recognise that human rights is not a subject that we We aim to provide and promote an environment where help drive improvements. More details are available in the can address alone: we work with all relevant stakeholders. employer and employee can engage in open dialogue on all chapter on Responsible Sourcing & Traceability. Suppliers are a particular focus and we help them adhere to work-related aspects, allowing each to better understand the our principles through our Responsible Sourcing Policy, as other’s challenges and find ways of resolving them. This is Disclosure 102 – 41 detailed in the chapter on Responsible Sourcing & Traceability. done by establishing genuine dialogue with freely chosen Collective bargaining agreements employee representatives. 29% of employees are covered by collective bargaining We have zero tolerance for any form of human rights abuse agreements. and follow strict governance, grievance and remediation We regularly consult with employee representatives, looking to mechanisms to ensure compliance with our principles and inform and consult about changes in the organisation and to Disclosure 402 – 1 commitments. We also provide various mechanisms for report any feedback to the Executive Committee (EC). We pride Minimum notice periods regarding raising concerns. Employees can do this in confidence with a ourselves on our history of constructive dialogue with employee operational changes Local Compliance Officer, the Corporate Compliance Officer, representatives and support the freedom of individuals to join We respect legal local notice periods prior to the the Legal Department or through our internal Compliance trade unions or other employee representative bodies. Givaudan implementation of changes that could affect our employees, Helpline. Third-parties can raise issues in confidence to the does not discriminate based on employee membership of, or either through direct communication to these employees or Head of Group Ethics and Compliance by email to: global. association with these bodies and seeks to enter into constructive through their elected representatives, Union/Works Councils [email protected]. discussions when issues arise. or other groups. In countries where there are collective agreements and where it is mandatory, minimum notice 105 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Human rights periods regarding operational changes are specified. These We apply a combination of mechanisms within our business range from no notice to three months, depending on the and in our supply chains as part of our due diligence review Training and country and based on local laws and practices. for these aspects. They are regularly assessed through various interventions related to our Social Responsibility, Sourcing4Good, vigilance module No child labour, no forced labour, compulsory Ethic & Compliance, Human Rights and Vendor Management labour or human trafficking programmes, among others. In 2021, we developed a dedicated training Our positions on child labour, forced labour, compulsory and vigilance module on Givaudan’s labour and human trafficking are rooted in our Principles of We have also developed a dedicated training and vigilance expectations on child labour and work in Conduct and in our new Human Rights policy. These, in turn, module around Givaudan’s expectations on child labour and our supply chains. It is aimed at better reflect initiatives including the United Nations Global work in our supply chains. It is aimed at better informing and informing and equipping our own Compact, a framework that targets, among other goals, the equipping our own procurement colleagues and supply chain procurement colleagues and supply chain elimination of forced, compulsory and child labour. stakeholders. We started rolling this out in the second half of stakeholders. We started rolling this out in 2021 and have already covered some key raw material supply the second half of 2021 and have already We are also committed to the Ethical Trade Initiative Base chains including, among others, thaumatococcus in the Ivory covered some key raw material supply Code, which states that there shall be no recruitment of child Coast, cistus in Spain and vanilla in Madagascar. chains including, among others, labour; that companies shall develop or participate in and thaumatococcus in the Ivory Coast, cistus contribute to policies and programmes that provide for the We expect the same standards from business partners and in Spain and vanilla in Madagascar. transition of children from labour to quality education; and suppliers. Details on how we manage this are available in the that people under 18 shall not be employed at night or in chapter Responsible sourcing & traceability. hazardous conditions. Disclosure 407 – 1, 408 – 1, 409 – 1, 412 – 1 We do not practice or tolerate any form of child exploitation, Operations assessment and we do not provide employment to children before they Human Rights Impact Assessment in our operations and have completed their compulsory education and in any supply chain, detailed in the following chapter, is managed event not before they reach the age of 15. This applies to through continuous engagement and diverse interventions employment within Givaudan, and we expect the same from embedded in many of our standard operating procedures and our partners and suppliers with whom we work. Where we practices. The focus of these assessments ranges from high- observe young workers engaged in business activities, but level due diligence to more salient aspects, in particular those not legally qualifying as child labour, we still work towards relating to health, safety or child labour. training and education with the aim of ensuring that young workers are always protected and that their right to Givaudan is an active member of Sedex, a global platform that education is not infringed. Similarly, we do not practice or incorporates human rights risks in its assessments. Since 2010, tolerate any form of exploitation or forced or compulsory all Givaudan production sites have been registered on Sedex labour including prison labour, indentured labour, bonded and have completed Sedex self-assessment questionnaires labour, slave labour or any form of human trafficking. (SAQ) aimed at continuous self-improvement and the sharing of information with customers. Givaudan annually reviews and 106 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Human rights updates the SAQ for all of our registered sites and plans audits In 2021, there were no findings or notifications of any violation Disclosure 412 – 3 for sites due for inspection with recognised third-party of the right to freedom of association and collective bargaining Significant investment agreements and auditors. At the end of 2021, 82% of our production sites were at any of our locations worldwide. contracts that include human rights clauses registered on Sedex and have completed Sedex self-assessment or that underwent human rights screening questionnaires. The remaining 18% are new acquisitions and In 2021, we did not observe any cases of forced labour in our Our Responsible Sourcing Policy outlines the principles and we plan to integrate them onto the Sedex platform within two business and supply chains in our due diligence review. standards that we require all of our suppliers to meet. years of their acquisition. Disclosure 412 – 2 READ MORE In addition to manufacturing sites, the same standards are Employee training on human rights For more information about our supplier assessments please read the next chapter also applied internally for all other Givaudan locations, e.g., policies or procedures on Responsible sourcing and traceability offices, R&D facilities, warehouses, etc. They are regularly Today we already cover basic human rights aspects as part of assessed through programmes such as internal audits. our Principles of Conduct training, which is mandatory for all our employees worldwide. We also participate in EcoVadis Corporate Social Responsibility (CSR) assessments, disclosing detailed information on our Additionally, dedicated human rights and modern slavery business practices in Human Rights and Labour aspects in training is conducted for employees in countries with specific addition to those linked to the environment, ethics and regulations such as UK and Australia. responsible procurement. The EcoVadis methodology framework assesses companies’ policies and actions in relation We have also developed a dedicated training and vigilance to these areas using a team of international sustainability module around Givaudan’s expectations on child labour and experts that analyse and cross-check company data such as work in our supply chains. This aims to better inform and equip supporting documents, 360° Watch Findings, etc., to create our own procurement colleagues and supply chain reliable ratings. Each company’s industry, size and geographic stakeholders. We started rolling this out in the second half of locations are also considered. 2021 and have already covered some key raw material supply chains including thaumatococcus in Ivory Coast, cistus in Spain, This year, Givaudan ranked in the top 5% of more than and vanilla in Madagascar. 75,000 companies participating in the 2021 EcoVadis CSR assessment. This result earned Givaudan the gold rating. We are now in the process of developing dedicated human rights expectations and commitment training for all Givaudan employees. This training is being developed with support from 82% of our production sites have external experts and we aim to release it in 2022. been registered on Sedex and have completed Sedex self- assessment questionnaires. 107 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Responsible sourcing & traceability convey information about the raw materials and services we A strong network of responsible suppliers allows us to both Material topic definition source, as well as their transformation throughout the value mitigate the risks inherent in our supply chain and respond to Responsible sourcing & traceability chain. This helps to ensure good practices and respect for increased consumer demand for more sustainable, healthier, Fostering compliance with high standards in health, people and the environment in supply chains. differentiated products. Sourcing materials in ways that safety, social, environmental and business integrity in the preserve the environment and stimulate the development and way we source. Understanding the supply chain and Beyond these considerations, and as detailed in the previous wellbeing of the communities that provide them is a critical tracing the provenance of raw materials we use from their chapter, we are committed to respecting human rights element of our business. These activities permit us to assure origin to the final formulation. wherever we do business. We strive to make a positive impact customers about the provenance of raw materials and their on the communities in which we are present and we recognise production. It also shows that we adhere to responsible supply Purpose pillars that we have an important obligation to contribute to chain practices, allowing us to reduce our environmental and CREATIONS NATURE PEOPLE COMMUNITIES preserving the environment and the planet’s biodiversity for social impact. future generations. Boundary Disclosure 103 – 1, 102 – 9 • Givaudan EXPLANATION OF THE MATERIAL • Suppliers TOPIC AND ITS BOUNDARY Givaudan spends more than CHF 3.8 billion per year sourcing Disclosure 103 – 2, 103 – 3 11,000 different raw materials and indirect materials and MANAGEMENT APPROACH services from across the globe. With over 3,000 raw material Givaudan is a purpose-driven company and our approach to suppliers in more than 100 countries and 13,000 additional the topic of sourcing is embedded in these guiding principles. global partners supplying indirect materials and services, Raw materials Sourcing is an integral part of our purpose: indeed, one of our procurement and the supply chain are strategic to Givaudan’s purpose ambitions is to source all materials and services in a responsible and shared growth. way that protects people and planet by 2030. Moreover, We source >11,000 different raw Givaudan has set an ambition to become a certified Responsibly managing supply chains at this scale is complex, B Corporation (B Corp), a designation reflecting the highest but we are committed to working with our suppliers for materials in countries standards of responsible sourcing. > 100 greater transparency and to improve practices in the areas of health and safety, environmental, social and business integrity. Supplier management The first in the flavours and fragrances industry to publish a Responsible sourcing is an active and conscious commitment specific policy in 2016, Givaudan has always been a leader in by Givaudan to consider social and environmental aspects responsible sourcing, traceability and transparency, helping us when managing the relationships with, and performance of, 3,000 raw material suppliers to meet customer, consumer and environmental needs and suppliers. This means that we will ensure our business practices expectations. Our Responsible Sourcing Policy, available on our – both within our business and across our supply chain, from 13,000indirect Materials website, details the principles and standards that we require all farm to our Company – do not have a negative impact but & Services suppliers 16,000 suppliers to meet. Suppliers are defined as anyone, foster positive impacts on people and the environment. individual or company, who supplies us with any goods or Traceability is also a critical concern. We must gather and services. It includes any primary producers of raw materials, 108 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Responsible sourcing & traceability suppliers of raw materials, intermediate materials, intermediary suppliers and service providers. The policy is applicable to all h e sites and workers and employees of any supplier (including The four levels of ept nc a i permanent, temporary, contract agency and migrant workers), SOURCING4GOOD D l as well as subcontractors, agents and subsidiaries. omp We implement collaborative and transformative c ond activities with our suppliers and customers. The policy contains overarching requirements that apply to all y ADVANCED Developing flagship projects together. Be areas of the supply chain, as well as some specific requirements pertaining to Naturals, Synthetics and Indirect Materials & Services Suppliers, which provide more depth and clarity on COMMITTED Suppliers are committed to our RS practices certain topics. and we work with them to secure the essential materials and services we need. This year, we have further strengthened and expanded our Responsible Sourcing programme into an umbrella programme ocus f called Sourcing4Good, our approach to implementing our e The supplier is engaged in our Responsible Sourcing Policy. It reflects our ambition to become B anc ENGAGED due diligence process and risk Corp certified and our desire to source all materials and services in pli & impact assessment. om a way that protects people and the environment by 2030. c & ing Sourcing4Good th uild ACTIVE The supplier made aware of Sourcing4Good is based on collaboration and knowledge- d b our responsible sourcing rea ust sharing, experience and expert input from suppliers, customers B r practices and expectations. and partners. It is based on industry criteria ranging from T environmental and social benchmarks to improved supply chain Materials and services begin the "sourced responsibly" journey at the Active level, and security, greater transparency, and more relevant supply chain this is further embedded when assurance proof-points are gathered at the other levels. information. It offers suppliers more visibility and partnership opportunities and gives customers increased access to safe, high-quality products sourced in a responsible way, as well as greater oversight and detailed knowledge of their supply chains. through an integrated operating model. The ultimate aim is to this end, Sourcing4Good includes the status of our suppliers Created in partnership with multidisciplinary teams of experts, ensure that our full portfolio of ingredients, materials and and materials and the levels of rigour and partnerships in place. Sourcing4Good covers all 16,000 of our active suppliers and services is sourced responsibly. There are four levels of supplier status, ranging from those just applies to all natural and synthetic materials as well as indirect starting on their responsible sourcing journey to those involved materials and services. The programme will be powered by We expect suppliers to share our commitment to clean and in in-depth, transformational partnerships. This is meant to cutting-edge internal technology, providing increased supply safe working conditions, good agricultural and collection increase transparency, reduce risk and generate greater chain transparency and information access and will be delivered practices, animal welfare and environmental stewardship. To traceability and data. The four levels help us define the right 109 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Responsible sourcing & traceability level of supplier engagement, activities and efforts across our full portfolio of spend in Naturals, Synthetics and Indirect Prioritisation of Naturals Materials & Services (IM&S) APPLIED CRITERIA Materials begin their ‘sourced responsibly’ journey at the Active ADVANCED level. Here, the supplier is made aware of our responsible Risks sourcing practices and expectations. • Social Approx. 150 Naturals Raw • Environmental Prioritisation COMMITTED material families Further along, suppliers may enter the Engaged level, which implies involvement in our due diligence process and risk & Business relevance impact assessment. At the Committed level, suppliers are • Customer focus ENGAGED committed to our responsible sourcing practices. We work with • Iconic them to secure the essential materials and services we need. • Usage in formulation Finally, at the Advanced level, we implement collaborative and transformative activities with our suppliers and customers, Spend ACTIVE developing flagship projects together. • Top 80% The launch of the Sourcing4Good programme gave us the opportunity to review our key responsible sourcing targets All Naturals Raw Materials Families & ~2,500 Tier 1 suppliers and KPIs. We will pursue them based on focused efforts that (excl. Synthetics and IM&S) are targeted to the different levels of Sourcing4Good activity: it is a progressive approach based on prioritised action. The Sourcing4Good levels are assigned through an integrated With Naturals, prioritisation is indispensable. We source a large In 2021, we joined the Together for Sustainability (TfS) operating model that embeds responsible sourcing processes number of natural ingredients derived from hundreds of raw organisation to collaborate with other members to drive and within the day-to-day work of Procurement. Our ambition for materials, and the work is already well underway. We applied accelerate our integration of responsible sourcing to the 2021 was to begin the process of transitioning certain tasks and six criteria in the prioritisation process, consulting various categories of global synthetics and indirect Materials & responsibilities to allow the Naturals Procurement team to departments and using data from both an external database Services (IM&S) suppliers. Following a thorough onboarding better manage the trust and supplier compliance element of the and SAP. This resulted in a list of 158 natural materials process, we have set initial targets for audits and assessments Sourcing4Good programme. To this end, we have implemented warranting prioritised action: our aim is for them to reach, at a for some global synthetics and IM&S suppliers for 2022, and Standard Operating Procedures (SOPs), developed tools, and minimum, the Sourcing4Good Committed level in the coming will begin the implementation of the programme to cover built capability through various training sessions: to date, we years. Though all raw materials of a natural origin are in scope these categories in Q1 2022. have carried out 5 training modules spread over 8 sessions for for our 2030 target, the 158 raw materials families will receive 52 colleagues, representing 48% of the Naturals team. We will accelerated and deeper-level activity between now and 2025. continue this work next year and beyond to include the This is a significant increase from the 51 materials families that synthetics and IM&S procurement teams. formed the basis of our 2021 targets. 110 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Responsible sourcing & traceability documentation, which may be reviewed by Givaudan upon The Due Diligence Questionnaire Making our policy reasonable notice; communication of the policy to all relevant Due Diligence Questionnaire is our in-house questionnaire that employees; deployment of the principles in their facilities and allows us to obtain primary traceability and risk information on more accessible throughout their supply chains, working with their suppliers to the supply chain; to sharpen our implementation strategy, and the source of the material or service. Where possible, Givaudan support our suppliers as part of a continuous improvement We know that our Responsible Sourcing will aim to provide support to suppliers in this journey. approach. We have developed an IT interface that is accessible Policy and process will have to evolve to be to our suppliers and our Procurement teams to make the increasingly inclusive and adapted to the Our previous Responsible Sourcing (RS) Policy has been sent to questionnaire easy to use. context of the supply chain. To this end, we more than 14,000 of our raw material and indirect materials & have introduced a practical guide targeted services (IM&S) suppliers. Since the update of the policy with Committed Level to a specific supply chain in order to make the 2021 launch of the Sourcing4Good programme, we have At the Committed Level of the Sourcing4Good programme, the policy more accessible to producers. sent this document to more than 2170 of raw material suppliers, we request a supplier third-party audit at factory and/or farm This helps our team explain the policy and representing 96% of the spend. We aim to reach our remaining level. Givaudan also retains the right to recognise certain makes it easier for suppliers to understand active suppliers with the updated RS Policy in 2022. We will supply chain certification standards that will be accepted in our requirements. We expect to use the continue this action in the years to come so that each new lieu of a third-party audit. tool in additional strategic supply chains active supplier is included in this process. after completion of this pilot project. At factory level, the sites of direct suppliers are audited Engaged level according to Sedex Members Ethical Trade Audit (SMETA). For suppliers at the Sourcing4Good level Engaged and above, Incorporating labour practices, social, environmental and Givaudan will also use a range of due diligence and verification human rights aspects into its assessments, SMETA is one of tools to ensure they meet both our expectations and the the most widespread ethical audit formats in the world. Disclosure 308 – 1, 407 – 1, 408 – 1, 409 – 1, 414 – 1 principles laid out in the Responsible Sourcing Policy. These Auditing suppliers accordingly allows them to benefit from a 2021 Progress include sending our Due Diligence Questionnaire (DDQ) to mutual recognition agreement among the members of the Active Level selected suppliers and requesting it to be completed. AIM-PROGRESS platform: they can avoid audit duplication All Active suppliers, that is, even those at the start of their because suppliers are encouraged to share audit reports with ‘sourced responsibly’ journey, are required to acknowledge This year, we aimed to complete our Due Diligence Questionnaire the largest number of customers. and adhere to the Responsible Sourcing Policy. on 53 of the 158 prioritised Naturals materials families. Our 2021 target was to engage the suppliers included in the top 80% of At farm level, we ask our suppliers to seek verification through Givaudan expects its suppliers to use this policy as a guidance spend and/or defined as strategic by the Procurement Team on the Farm Sustainability Assessment (FSA) from the SAI Platform tool to help them demonstrate compliance to it through their each of these 53 material families. We reached all suppliers in for cultivated raw materials, and through the Union for Ethical continuous improvement activity. Givaudan also expects all scope for this year and had an 89% response rate as of December BioTrade (UEBT) for wildcrafted raw materials. These standards suppliers at the Active level to implement management 31, 2021. Our new Due Diligence Questionnaire digital tool played are recognised in the industry and cover all our ethical, social systems that allow compliance with this Responsible Sourcing a central role in allowing us to engage ~226 suppliers defined as and environmental requirements. Policy. This includes at least mechanisms to identify, assess and strategic by the procurement team. manage risks in all areas addressed by this policy; adequate 111 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Responsible sourcing & traceability This year, we aimed to cover 53 of the 158 prioritised Naturals progress of this through our regular supplier review process Advanced Level materials families for further verification by the end of 2021. We and through specific assessment and audit activity. Where At the Advanced level, we select a small number of key supply approach this through factory- and farm-level third-party Givaudan sees that a supplier cannot, or will not, take the chains from our prioritised list for a deeper level of activity. Within audits in supply chains selected in collaboration with necessary actions to demonstrate compliance, over an agreed this context, we develop flagship and transformational projects Procurement. For now, we have reached 38% of this target. timeline, then Givaudan may take the necessary steps to seek through collaboration with external stakeholders. We currently Some audits had to be postponed, either because certain alternative supply of a particular material or service. have 24 projects ongoing in our Naturals supply chains. Our goal harvest periods had already passed before the launch of is to increase this number by starting new projects in collaboration Sourcing4Good in April 2021 or because of the continued with our customers and suppliers in the years to come. COVID-19 situation. Due to business needs, we also added two additional raw materials families to the list in 2021. This year should be seen as a transition year: a period of acclimatisation is needed for our teams and suppliers to implement this new Palm oil - Earthworm Foundation approach. Audits that could not be carried out have been postponed and integrated into the 2022 roadmap. Aceh, Indonesia’s northernmost cropland. Through the Earthworm farmers, improving their resilience, province, had lost 300,000 hectares Foundation landscape programme and at the same time protecting Givaudan reserves the right to periodically request and of its forest since 2001, with the in Aceh, Givaudan’s support the forest from destructive undertake social and environmental audits at any supplier’s primary drivers being the expansion contributes to developing agricultural practices. facilities, in any part of their extended supply chain, including at of palm oil plantations and other alternative livelihoods for palm oil Following a feasibility study in farm level. This may be through the use of an internal protocol June 2021, Earthworm identified or a third-party ethical audit. Suppliers are expected to pay nutmeg, corn, and chilies as when third-party audits are requested as this allows them to potential crops for intercropping in own the data and share reports with other customers without palm oil plantations. As an initial having to undergo further similar audits within the same or step in piloting the alternative similar timeframe. Givaudan expects to discuss the results of livelihood programme, the such audits with the supplier: areas for improvement will be participatory land-use planning clearly identified and a corrective action plan agreed. (PLUP) process was completed in Bawan village, Subulussalam district. Givaudan expects any supplier who has been audited to resolve Based on PLUP, the community any major or critical non-conformities within a timescale agreed to allocate 675 hectares for agreed with the supplier and to provide supporting livelihood and 650 hectares for documentation as requested. Any audits conducted, whether conservation. Corn will be the first through internal or third-party means, will normally need to be crop to be intercropped on repeated within a three-year timeline. Givaudan will work with 30 hectares of palm oil plantations their suppliers to ensure this process is maintained. We know starting in 2022. that some challenges can take time to overcome and this will be considered where applicable. We monitor and measure 112 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Local community development economic or social benefits such as improving access to This year, we introduced our new sustainable sourcing Material topic definition education or mental or physical health for the local communities approach, Sourcing4Good. Created in partnership with expert Local community development as well as sustainable success for Givaudan. multidisciplinary teams, Sourcing4Good encompasses all 16,000 Recognising and supporting the broader development of our active suppliers and applies to all materials, both natural goals of local communities where Givaudan operates and Boundary and synthetic as well as indirect materials and services. The sources from. We especially strive to improve the quality • Givaudan progress and success of the programme will be measured in of life in vulnerable communities. • Local communities terms of four goals, two of which are particularly relevant to local community development: we aim to improve working Purpose pillars Disclosure 103 – 2, 103 – 3, 413 – 1 conditions in factories, farms and at the collector level and will CREATIONS NATURE PEOPLE COMMUNITIES MANAGEMENT APPROACH strive to improve the lives of the communities where we source. Responding to the needs within communities and using our More information on our programme and relevant policies can business expertise as a force for good allows us to improve lives be found in the chapter on Responsible Sourcing & Traceability. Disclosure 103 – 1 through projects that support everything from health and EXPLANATION OF THE MATERIAL education to enhancing environmental and agricultural We believe too that each and every employee has the potential TOPIC AND ITS BOUNDARY practices. This, in turn, aids us in realising our ambition to to make a change for the wellbeing of the communities in The communities and neighbourhoods in which we operate improve the lives of millions of people in the communities which we work and live. This opportunity is available through and source our materials are critical to our long-term success. where we source and operate by sourcing all materials and our Green Teams, which are active at the majority of our sites. Our business can affect these communities, and local services – naturals, synthetics and indirect materials and Members of these teams are involved in voluntary sustainability stakeholders can in turn have an impact on our activities. services (IM&S) – in a way that protects people and the projects in local communities as well as in internal programmes. Recognising and supporting the broader development goals of environment by 2030. This is one of the focus areas of our The projects empower and encourage groups of employees to these local communities is essential to acknowledging their company purpose and central to our strategy. identify local opportunities to support our sustainability and important contributions and we are committed to supporting purpose ambitions. They also raise awareness of existing them to build stable lives. Overall, we actively develop and sustain relationships with sustainable operations across Givaudan and deliver results. communities and listen to their representatives and understand The close working relationships we establish with the very their needs, allowing us to take their points of view into This year, achievements included our GBS site in Buenos Aires people who grow, collect and distil our raw materials are key to account and integrate their feedback into our activities. We winning the bronze certification “Certified Conscious Office our continued success in securing the long-term supply of the have also supported local producer communities for more than space” from Eco House, a non-profit organisation specialising ingredients we rely on for our flavours and fragrances. a decade through a variety of social and environmental in education, politics, economics and volunteering for Maintaining a good reputation in communities where we have projects. Our field teams, for instance, travel to remote sustainability. The designation came after two years of a manufacturing or commercial presence is also essential as it sourcing regions all over the world, cultivating relationships preparation, implementation of actions, training sessions and helps attract the right talent and personnel to the Company. with producers. This enables us to build trust and work awareness-raising amongst all employees. It included the together to ensure the long-term future of raw materials. Our introduction of an onsite waste separation and treatment Overall, good relations allow us to work together on projects work also contributes to more stable incomes to help improve system as well as updated signage indicating sustainable and causes that benefit the community, help to protect local the lives of these communities. behaviour and additional measures. At our Smithfield, Australia ecosystems and support livelihoods. This translates into site, employees worked with customer and supplier partners in the fight against COVID-19 to promptly supply sanitisers to 113 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Local community development Western Australia’s local indigenous aboriginal communities, soap to encourage children to learn how to wash their hands who are considered high risk and more prone to health issues. through play. The team also worked with a digital agency to Community The team, supported by Australian Government’s COVID-19 create an online game, Challenge 20, teaching the key steps of Remote Indigenous Community Task Force, subsequently hand-washing routines. Players have 20 seconds to kill as many development in delivered nearly 250,000 sanitiser products during 2020 and ‘germs’ on the hands as possible to progress to the next level. Madagascar 2021, impacting the lives of thousands of community members. Our employees also contribute through our work with the Our work in Madagascar helps mitigate At our Cuernavaca and Mexico City sites, where the local teams Givaudan Foundation, a not-for-profit organisation that has our environmental impact and support are working on ‘single use plastics’ and ‘community care’ funded projects to help build more secure futures for community development. In the Analanjirofo agendas as part of a project with a local NGO partner, the communities and their environments since 2014. A full half of region, we help small-scale producers of recycling of more than four tons of their single use plastic waste the foundation’s projects are directly proposed and designed clove leaf oil establish sustainable sources in the form of bottle caps both helped Givaudan meet its global by employees who wish to make a change in communities of firewood and improve distillation waste target. A partnership with the Mexican NGO Banco de where Givaudan sources natural ingredients and communities equipment. This year, we planted more than Tapitas AC, which uses the proceeds from its bottle cap where our employees work. The foundation also works with 117,000 trees and continued developing collection and recycling to help children and young adults local organisations to identify and respond to local needs and and promoting environmentally friendly suffering from cancer, means that the efforts also contributed then carry out projects in three main areas: education, health, agricultural skills. In the vanilla supply chain, significantly towards building happier and healthier communities and preservation of the environment. The foundation works we built and equipped a new health centre through the provision of medical and food support. closely with and relies on resources provided by Givaudan to offering vanilla farmers from eight villages conduct and monitor its projects. Such initiatives encompass health care access. We also started A related programme, Imagin8, is meant to encourage our 27 ongoing projects in 12 countries, touching more than construction of a new school. Our people to explore their personal connection to the company 40,000 beneficiaries as well as their families and communities. efforts have had an impact on more than purpose. It contributes to the scale-up of our efforts in social 11,000 beneficiaries. innovation by prompting employees to see themselves as In certain supply chains, we develop targeted action plans in changemakers. With a focus on small, simple ideas that can cooperation with the producers, suppliers and/or other accelerate improvements in, for example, social conditions, organisations such as NGOs. This allows us to support projects positive climate action, mental health or access to affordable, in education and health as well as good practices in agriculture healthy products for more communities, the programme has and processing. We also assist in safeguarding the environment generated hundreds of ideas. and natural resources, and encourage investment in sustainable development and innovation. More information can be found In keeping with the mindset of ‘think small with a big impact,’ in the chapter on Responsible Sourcing & Traceability. one very simple but effective idea was to promote hand- washing among children. At the height of the COVID-19 We additionally support local communities with charitable pandemic in 2020, our employees saw the need to improve giving. We work with producers, suppliers and/or other hygiene among children in poorer countries. Colleagues in Brazil, organisations to bolster projects in education, health and Malaysia, Nigeria, Singapore, UK and the USA collaborated and nutrition as well as good practices in agriculture and by 2021 we were able to pilot a sustainable, colour-changing bar production. We help communities safeguard their environment 114 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Local community development and natural resources. Every precaution is taken to operate Disclosure 203 – 1 safely in these communities, all while providing social and Infrastructure investments and services economic value and reducing our environmental footprint. supported The island of Haiti, where we grow vetiver, a scented, golden This spending, governed by an annual budget allocation oil highly prized in the fragrance industry for its intensity and process for charitable giving that has been in place at all of our natural synergy with other raw materials, is an example of a sites since 2012, is controlled and consolidated by a challenging environment where we support the island’s sustainability controller and closely monitored. Each site producer communities and safeguard supply of the ingredient. manager is responsible for how the relevant budget is spent Since 2012, Givaudan has been collaborating with a local and has some freedom to allocate funding to local supplier to support a cooperative of 250 vetiver root organisations, providing they comply with Givaudan guidelines producers from three villages. The cooperative and our local and local laws on non-profit organisations. The spending is supplier have achieved the Ecocert Fair for Life Certification, reviewed annually as part of our financial assurance, and which ensures minimum prices, improved working conditions information is disclosed as part of the P&L statement. for everybody in the local supply chain, and validates the social and environmental responsibility of vetiver production. In March 2020, we established a COVID-19 community fund to The certification also ensures full traceability of the raw enable our sites to support local communities that had been material. The cooperative benefits from a premium on the affected by the pandemic. By the end of 2021, we were able to price of its vetiver roots, feeding a development fund used to help almost 100,000 people in 137 communities around the support community projects and the local supply chain. The world. We also adapted our production to increase the amount fund has paid for repairs to a road linking producer villages of hand sanitiser for our employees, but also for local health, and the vetiver distillery. The new road makes it much easier community and front line services who were in critical need of it. to transport the roots and has also opened up better access to healthcare and other essential amenities. The fund has also In 2021, the total financial contribution from Givaudan to brought electricity to the villages, and cooperative members communities was more than CHF 2 million. receive training on good agricultural practices as well as health and safety measures to consider in the field. 115 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix APPENDIX In this section 117 The principles of the UN Global Compact 118 The Sustainable Development Goals 120 GRI Content Index 128 TCFD Recommendations 129 SASB Standards mapping 130 Independent assurance statement 132 Our reporting suite 116 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix The principles of the UN Global Compact The United Nations Global Human rights Environment Compact asks companies to Principle 1 Principle 7 Businesses should support and respect the protection of Businesses are asked to support a precautionary approach to embrace, support and enact, internationally proclaimed human rights environmental challenges within their sphere of influence, Principle 2 Principle 8 a set of core values in the areas Make sure that they are not complicit in human rights abuses Undertake initiatives to promote greater environmental responsibility of human rights, labour Labour Principle 3 Principle 9 standards, the environment Businesses should uphold the freedom of association and the Encourage the development and diffusion of environmentally and anti-corruption. effective recognition of the right to collective bargaining friendly technologies Principle 4 Anti-corruption The elimination of all forms of forced and compulsory labour Principle 10 Businesses should work against corruption in all its forms, Principle 5 including extortion and bribery The effective abolition of child labour Principle 6 The elimination of discrimination in respect of employment and occupation 117 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix The Sustainable Development Goals Sustainable development Zero hunger Gender equality calls for concerted efforts Givaudan is committed to helping end hunger, We are a leading employer in the industry, with a achieving food security and improved nutrition, global staff of around 16,000, including more than towards building an inclusive and promoting sustainable agriculture. We believe 90 nationalities. We reflect the societies and that through game-changing innovation in food and beverages cultures in which we operate by providing opportunities for and sustainable future we can encourage an uptake of healthier dietary choices, people of all backgrounds, gender and location. Driven by our for people and the planet. contributing to addressing global food challenges. By enabling purpose, before 2030 we aim to be a more balanced and access to plant-based protein ingredients, for example, our inclusive company. For example, before 2025, we will be rated innovations are possible steps towards sustainably nourishing among the leading employers for inclusion globally, and before the growing global population. Givaudan relies on thriving local 2030, 50% of our senior leaders will be women. Our policies and The Sustainable Development Goals (SDGs), adopted by the communities to source many natural ingredients and we work programmes keep us on track with these important United Nations and entered into force on 1 January 2016, build closely with our supply chains to encourage better nutrition commitments. on the success of the Millennium Development Goals (MDGs). among local producers. The ambitious goals shall be achieved by 2030 through Clean water and sanitation effective action taken through both the public and private Good health and well-being Water is an essential element in our operations sector in all countries. One of the key ambitions of our purpose is that by and supply chain, and is managed within the www.un.org/sustainabledevelopment 2030, we will double our business through framework of our Responsible Care Management creations that contribute to happier, healthier System. For Givaudan, water stewardship means optimising lives. We are working hard to achieve this. For example, by the use of intake water through reuse and efficiency, and developing solutions for food and beverage products with less ensuring the quality of discharged water through analysis and sugar, fat or salt, we enable people to make healthier food treatment. In the workplace, we ensure the availability of clean choices. Our focus on good health and wellbeing is also water, sanitation and hygiene. By 2021, we had reduced our supported by our people goals. We strive to improve how we water intensity by 31% (vs. 2009). In 2020, we endorsed the care for our people by 2025 through access for everyone on our UN’s CEO Water Mandate. This UN Global Compact initiative sites to mental and physical health initiatives, tools and training. brings together business leaders to address global water We aim to reduce our total recordable injury rate by 50%. challenges and in 2021 we were awarded the CDP A rating for Through our Responsible Sourcing Policy, we set high standards our actions on water preservation. for health, safety, social and environmental practices for both our Company and our suppliers. Through all of this, we are building a culture in which safety, health and environmental commitments are the personal responsibility of every employee. 118 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix The Sustainable Development Goals Decent work and economic growth Responsible consumption and Life on land Our 2025 strategy, derived from our purpose of production Givaudan is committed to sourcing all materials ‘creating for happier, healthier lives with love for As our purpose guides us to show our love for and services in a way that protects people and the nature’ is our five-year roadmap for how we will nature in everything we do, we have set clear environment by 2030. As an industry leader with deliver sustainable value creation for all our stakeholders. ambitions to help reduce our own environmental impact and that 250 years of heritage, we work in partnership with producers Nurturing a place where our people love to be and grow is an of our products. Our goal to become climate positive before 2050 and suppliers to transform the way we source and create important driver of this strategy. We value our employees and and our bold ambitions on water and waste are two examples. As new value to be shared by all as part of our Sourcing4Good provide them with opportunities for growth and career we grow together with our customers, we continue to work programme. We recognise that we have an important obligation development through training programmes, and we promote towards reducing waste and water consumption across our to contribute to preserving the environment and the planet’s a multi-generational and diverse workforce that operates in operations, and we have set stringent science-based targets for biodiversity for future generations. Through our Responsible an agile and collaborative way. Through our human rights absolute greenhouse gas reduction. We innovate responsibly to Sourcing Policy we request that suppliers comply with all policy, we commit to respect human rights, to act with due offer sustainable new solutions based on green chemistry, to applicable environmental regulations and always aim to reduce diligence to avoid causing or contributing to human rights provide alternatives to animal testing, and to leverage biotechnical their impacts on nature and landscapes. Suppliers must abuses through our own activities, and to prevent and address techniques and advanced fermentation methods to create new implement environmental management principles that avoid human rights abuses that are linked to our operations, and existing molecules. Our new Sourcing4Good programme any pollution of air, soils and water and, in parallel, conserve products or services around the world. guides us in our approach to sourcing responsibly and is linked to biodiversity and nurture biodiversity. our goal to source all materials and services in a way that protects Industry, innovation and infrastructure people and planet by 2030. Partnerships for the goals In line with our strategy to deliver profitable Collaboration is essential in delivering on our bold growth while having a positive, sustainable impact Climate action ambitions. The more we do together, the quicker through our creations on people, nature and Givaudan is working towards an ambition to we drive sustainable solutions and the faster communities, our approach to innovation considers the potential become climate positive before 2050. This means we meet our targets. Our collaborations with an ecosystem impact of our processes and products on the environment. Our reducing our absolute scope 1 and 2 GHG emissions of partners, from UN Global Compact to the World Business research into new solutions utilises green chemistry and by 70% before 2030 and becoming climate positive in our Council for Sustainable Development, RE100 and The opportunities derived from traditional and novel forms of operations by 2040. Our scope 3 GHG emissions will be cut by Earthworm Foundation, help to inform and support our work biotransformation, biodegradability and upcycling. We identify 20% before 2030 and our supply chain will be climate positive on our most material sustainability issues. We have strategic novel technologies such as automation or greener processes before 2050. Givaudan’s climate action targets have been relationships with suppliers, start-ups and partners allowing that can improve our production environment. We continue approved by the independent Science Based Targets initiative in for even greater collaboration and co-creation to develop investments in high growth markets, especially China and India. alignment with the global effort to keep a temperature increase innovative solutions for the future. Examples of this include our We are also developing infrastructure in remote areas such as below the two-degree threshold, a key goal of the 2015 Paris Connect to Win programme for supplier-enabled innovation, the Amazonian basin in Brazil where, for example, we have a Agreement. We assess every aspect of our activities and those of our strategic collaboration to increase opportunities in joint venture in a programme to train farmers and cooperative our suppliers to find opportunities to limit our environmental biotechnology and our co-creation partnerships with many workers in responsible practices for guarana. impact, including our target for 100% renewable electricity prominent players in plant-based proteins that caters to the by 2025. Our Responsible Sourcing Policy highlights our strong shift towards plant-based meat alternatives and commitment to removing commodity-driven deforestation alternative protein sources. from our supply chains. 119 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix GRI Content Index For the Materiality Disclosures Service, GRI Services reviewed that the GRI content index is clearly presented and the references for Disclosures 102 – 40 to 102 – 49 align with appropriate sections in the body of the report. AR = 2021 Integrated Annual Report GCFR = 2021 Governance, Compensation and Financial Report www.givaudan.com ▸ Media ▸ Publications SASB UNGC SDG GRI Standard and Disclosure Publication year Page/Information Code Principles Goals GRI 101: Foundation 2016 1 GRI 102: General Disclosures 2016 Organizational profile Disclosure 102 – 1 Name of the organisation Givaudan SA Disclosure 102 – 2 Activities, brands, products, and services AR p 1 Disclosure 102 – 3 Location of headquarters Vernier, Switzerland Disclosure 102 – 4 Location of operations AR pp 152–159 Disclosure 102 – 5 Ownership and legal form GCFR pp 4, 5 Disclosure 102 – 6 Markets served AR pp 150, 151 Total number of sites: 185; Total number of employees: > 16,800 (FTE); Group sales: CHF 6.8 billion; Total assets: CHF 11.4 billion; Equity Disclosure 102 – 7 Scale of the organisation ratio: 34.5%; Products sold per year: > 126,460. Disclosure 102 – 8 Information on employees and other workers 88 6 8 Disclosure 102 – 9 Supply chain 108 We had no changes in the share capital structure and no significant changes in our supply chain Disclosure 102 – 10 Significant changes to the organisation and its supply chain in 2021. For new site openings see AR pp 8–9. Disclosure 102 – 11 Precautionary Principle or approach 33 12, 13 Disclosure 102 – 12 External initiatives 18 1 Disclosure 102 – 13 Membership of associations 22 Strategy Disclosure 102 – 14 Statement from senior decision-maker 4 Disclosure 102 – 15 Key impacts, risks and opportunities 6 120 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix GRI Content Index SASB UNGC SDG GRI Standard and Disclosure Publication year Page/Information Code Principles Goals Ethics and integrity Disclosure 102 – 16 Values, principles, standards, and norms of behaviour 31 10 5 Disclosure 102 – 17 Mechanisms for advice and concerns about ethics 32 Governance Disclosure 102 – 18 Governance structure 34 Disclosure 102 – 19 Delegating authority GCFR pp 14–16 Disclosure 102 – 20 Executive-level responsibility for economic, environmental, and social topics 35 Disclosure 102 – 22 Composition of the highest governance body and its committees GCFR pp 7–16 Disclosure 102 – 23 Chair of the highest governance body Non-executive Disclosure 102 – 24 Nominating and selecting the highest governance body GCFR pp 7, 10 Disclosure 102 – 25 Conflicts of interest GCFR pp 7–9 Disclosure 102 – 26 Role of highest governance body in setting purpose, values, and strategy 35, GCFR p 14 Disclosure 102 – 27 Collective knowledge of highest governance body GCFR p 7 Disclosure 102 – 31 Review of economic, environmental, and social topics 35 Disclosure 102 – 35 Remuneration policies 36, GCFR pp 22–36 Disclosure 102 – 37 Stakeholders’ involvement in remuneration GCFR pp 33, 36 Stakeholder engagement Disclosure 102 – 40 List of stakeholder groups 11 Disclosure 102 – 41 Collective bargaining agreements 105 3 8, 17 Disclosure 102 – 42 Identifying and selecting stakeholders 13 Disclosure 102 – 43 Approach to stakeholder engagement 13 Disclosure 102 – 44 Key topics and concerns raised 11 Reporting practice Disclosure 102 – 45 Entities included in the consolidated financial statements This report covers the whole scope of consolidation, unless otherwise stated. The list of consolidated companies can be found in GCFR p 95. Disclosure 102 – 46 Defining report content and topic boundaries 14 Disclosure 102 – 47 List of material topics 15 Disclosure 102 – 48 Restatements of information 81 Disclosure 102 – 49 Changes in reporting 17 Disclosure 102 – 50 Reporting period 17 Disclosure 102 – 51 Date of most recent report January 2021 Disclosure 102 – 52 Reporting cycle Annually Disclosure 102 – 53 Contact point for questions regarding the report [email protected] 121 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix GRI Content Index SASB UNGC SDG GRI Standard and Disclosure Publication year Page/Information Code Principles Goals Disclosure 102 – 54 Claims of reporting in accordance with the GRI Standards This report has been prepared in accordance 12 with the GRI Standards: Core option. Disclosure 102 – 55 GRI content index 120 12 Disclosure 102 – 56 External assurance 130 12 Topic-specific disclosures Economic performance 8, 9, 13 GRI 103: Management Approach 2016 Disclosure 103 – 1 Explanation of the material topic and its boundary 28 Disclosure 103 – 2 The management approach and its components 28 Disclosure 103 – 3 Evaluation of the management approach 28 GRI 201: Economic performance 2016 Disclosure 201 – 1 Direct economic value generated and distributed 29 Disclosure 201 – 2 Financial implications and other risks and opportunities due to climate change 30 Disclosure 201 – 3 Defined benefit plan obligations and other retirement plans 30 GRI 204: Procurement Practices 2016 Disclosure 204 – 1 Proportion of spending on local suppliers 29 Governance & business conduct / ethics / transparency 10 12, 17 GRI 103: Management Approach 2016 Disclosure 103 – 1 Explanation of the material topic and its boundary 31 Disclosure 103 – 2 The management approach and its components 31 Disclosure 103 – 3 Evaluation of the management approach 31 GRI 205: Anti-corruption 2016 Disclosure 205 – 2 Communication and training about anti-corruption policies and procedures 32 Product / Ingredients environmental & social performance 7, 8, 9 2, 3, 9, 12, 13 GRI 103: Management Approach 2016 Disclosure 103 – 1 Explanation of the material topic and its boundary 38 Disclosure 103 – 2 The management approach and its components 39 RT-CH-410b.2 Disclosure 103 – 3 Evaluation of the management approach 39 122 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix GRI Content Index SASB UNGC SDG GRI Standard and Disclosure Publication year Page/Information Code Principles Goals Product quality & safety and ingredient disclosure 3, 9, 12 GRI 103: Management Approach 2016 Disclosure 103 – 1 Explanation of the material topic and its boundary 40 Disclosure 103 – 2 The management approach and its components 40 RT-CH-410b.2 Disclosure 103 – 3 Evaluation of the management approach 40 GRI 416: Customer Health and Safety 2016 Disclosure 416 – 1 Assessment of the health and safety impacts of product and service categories 41 RT-CH-410b.2 Disclosure 416 – 2 Incidents of non-compliance concerning the health and safety impacts of products and services 41 RT-CH-410b.2 GRI 417: Marketing and Labeling 2016 Disclosure 417 – 1 Requirements for product and service information and labeling 41 Innovation capabilities & management 8, 9 8, 9, 12, 17 GRI 103: Management Approach 2016 Disclosure 103 – 1 Explanation of the material topic and its boundary 42 Disclosure 103 – 2 The management approach and its components 42 RT-CH-410b.2 Disclosure 103 – 3 Evaluation of the management approach 42 Climate change 7, 8, 9 12, 13, 15 GRI 103: Management Approach 2016 Disclosure 103 – 1 Explanation of the material topic and its boundary 51 Disclosure 103 – 2 The management approach and its components 51 RT-CH-110a.2 Disclosure 103 – 3 Evaluation of the management approach 51 GRI 302: Energy 2016 Disclosure 302 – 1 Energy consumption within the organisation 54 RT-CH-130a.1 Disclosure 302 – 3 Energy intensity 54 RT-CH-130a.1 Disclosure 302 – 4 Reduction of energy consumption 54 RT-CH-130a.1 GRI 305: Emissions 2016 Disclosure 305 – 1 Direct (Scope 1) GHG emissions 55 RT-CH-110a.1 Disclosure 305 – 2 Energy indirect (Scope 2) GHG emissions 55 Disclosure 305 – 3 Other indirect (Scope 3) GHG emissions 60 Disclosure 305 – 4 GHG emissions intensity 55 Disclosure 305 – 5 Reduction of GHG emissions 55 Disclosure 305 – 6 Emissions of ozone-depleting substances (ODS) 60 Disclosure 305 – 7 Nitrogen oxides (NOX), sulphur oxides (SO2), and other significant air emissions 60 T-CH-120a.1 123 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix GRI Content Index SASB UNGC SDG GRI Standard and Disclosure Publication year Page/Information Code Principles Goals Waste management & circular principles / Raw materials availability 8 2, 9, 12, 15, 17 GRI 103: Management Approach 2016 Disclosure 103 – 1 Explanation of the material topic and its boundary 63 Disclosure 103 – 2 The management approach and its components 63 Disclosure 103 – 3 Evaluation of the management approach 63 GRI 301: Materials 2016 Disclosure 301 – 1 Materials used by weight or volume 66 GRI 306: Waste 2020 Disclosure 306 – 1 Waste generation and significant waste-related impacts 63 Disclosure 306 – 2 Management of significant waste-related impacts 63 Disclosure 306 – 3 Waste generated 66 RT-CH-150a.1 Disclosure 306 – 4 Waste diverted from disposal 67 RT-CH-150a.1 Disclosure 306 – 5 Waste directed to disposal 67 Water stewardship 8 6, 8, 12, 17 GRI 103: Management Approach 2016 Disclosure 103 – 1 Explanation of the material topic and its boundary 68 Disclosure 103 – 2 The management approach and its components 68 RT-CH-140a.3 Disclosure 103 – 3 Evaluation of the management approach 68 GRI 303: Water and Effluents 2018 Disclosure 303 – 1 Interactions with water as a shared resource 68 RT-CH-140a.3 Disclosure 303 – 2 Management of water discharge-related impacts 68 RT-CH-140a.3 Disclosure 303 – 3 Water withdrawal 73 RT-CH-140a.1 Disclosure 303 – 4 Water discharge 73 RT-CH-140a.1 Disclosure 303 – 5 Water consumption 73 RT-CH-140a.1 Biodiversity 8 2, 15, 17 GRI 103: Management Approach 2016 Disclosure 103 – 1 Explanation of the material topic and its boundary 75 Disclosure 103 – 2 The management approach and its components 75 Disclosure 103 – 3 Evaluation of the management approach 75 GRI 304: Biodiversity 2016 Disclosure 304 – 1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas 76 Disclosure 304 – 2 Significant impacts of activities, products, and services on biodiversity 76 Disclosure 304 – 3 Habitats protected or restored 77 124 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix GRI Content Index SASB UNGC SDG GRI Standard and Disclosure Publication year Page/Information Code Principles Goals Diversity, inclusion & people development 6 5, 8, 17 GRI 103: Management Approach 2016 Disclosure 103 – 1 Explanation of the material topic and its boundary 87 Disclosure 103 – 2 The management approach and its components 87 Disclosure 103 – 3 Evaluation of the management approach 87 GRI 202: Market Presence 2016 Disclosure 202 – 1 Ratios of standard entry level wage by gender compared to local minimum wage 89 GRI 401: Employment 2016 Disclosure 401 – 1 New employee hires and employee turnover 90 Disclosure 401 – 3 Parental leave 91 GRI 404: Training and Education 2016 Disclosure 404 – 2 Programs for upgrading employee skills and transition assistance programs 91 Disclosure 404 – 3 Percentage of employees receiving regular performance and career development reviews 92 GRI 405: Diversity and Equal Opportunity 2016 Disclosure 405 – 1 Diversity of governance bodies and employees 89 Disclosure 405 – 2 Ratio of basic salary and remuneration of women to men 89 GRI 406: Non-discrimination 2016 Disclosure 406 – 1 Incidents of discrimination and corrective actions taken 89 Employee safety, health & wellbeing 3, 8 GRI 103: Management Approach 2016 Disclosure 103 – 1 Explanation of the material topic and its boundary 93 Disclosure 103 – 2 The management approach and its components 93 RT-CH-320a.2 Disclosure 103 – 3 Evaluation of the management approach 93 GRI 403: Occupational Health and Safety 2018 Disclosure 403 – 1 Occupational health and safety management system 93 RT-CH-320a.2 Disclosure 403 – 2 Hazard identification, risk assessment, and incident investigation 93 RT-CH-320a.2 Disclosure 403 – 3 Occupational health services 95 RT-CH-320a.2 Disclosure 403 – 4 Worker participation, consultation, and communication on occupational health and safety 96 RT-CH-320a.2 Disclosure 403 – 5 Worker training on occupational health and safety 96 RT-CH-320a.2 Disclosure 403 – 6 Promotion of worker health 97 RT-CH-320a.2 Disclosure 403 – 7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships 99 RT-CH-320a.2 Disclosure 403 – 9 Work-related injuries 99 RT-CH-320a.1 Disclosure 403 – 10 Work-related ill health 99 125 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix GRI Content Index SASB UNGC SDG GRI Standard and Disclosure Publication year Page/Information Code Principles Goals Consumer health & wellbeing 2, 3, 9, 17 GRI 103: Management Approach 2016 Disclosure 103 – 1 Explanation of the material topic and its boundary 101 Disclosure 103 – 2 The management approach and its components 101 Disclosure 103 – 3 Evaluation of the management approach 101 Human rights 1, 2, 3, 4, 5 2, 5, 8, 17 GRI 103: Management Approach 2016 Disclosure 103 – 1 Explanation of the material topic and its boundary 104 Disclosure 103 – 2 The management approach and its components 104 Disclosure 103 – 3 Evaluation of the management approach 104 GRI 402: Labor/Management Relations 2016 Disclosure 402 – 1 M inimum notice periods regarding operational changes 105 GRI 407: Freedom of Association and Collective Bargaining 2016 Disclosure 407 – 1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk 106 GRI 408: Child Labor 2016 Disclosure 408 – 1 Operations and suppliers at significant risk for incidents of child labor 106 GRI 409: Forced or Compulsory Labor 2016 Disclosure 409 – 1 O perations and suppliers at significant risk for incidents of forced or compulsory labor 106 GRI 412: Human Rights Assessment 2016 Disclosure 412 – 1 Operations that have been subject to human rights reviews or impact assessments 106 Disclosure 412 – 2 Employee training on human rights policies or procedures 107 Disclosure 412 – 3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening 107 126 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix GRI Content Index SASB UNGC SDG GRI Standard and Disclosure Publication year Page/Information Code Principles Goals Responsible sourcing & traceability 1, 2, 4, 8, 10 2, 8, 12, 15, 17 GRI 103: Management Approach 2016 Disclosure 103 – 1 Explanation of the material topic and its boundary 108 Disclosure 103 – 2 The management approach and its components 108 Disclosure 103 – 3 Evaluation of the management approach 108 GRI 308: Supplier Environmental Assessment 2016 Disclosure 308 – 1 New suppliers screened using environmental criteria 111 GRI 407: Freedom of Association and Collective Bargaining 2016 Disclosure 407 – 1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk 111 GRI 408: Child Labor 2016 Disclosure 408 – 1 Operations and suppliers at significant risk for incidents of child labor 111 GRI 409: Forced or Compulsory Labor 2016 Disclosure 409 – 1 O perations and suppliers at significant risk for incidents of forced or compulsory labor 111 GRI 414: Supplier Social Assessment 2016 Disclosure 414 – 1 N ew suppliers that were screened using social criteria 111 Local community development 1 2, 8, 9, 17 GRI 103: Management Approach 2016 Disclosure 103 – 1 Explanation of the material topic and its boundary 113 RT-CH-210a.1 Disclosure 103 – 2 The management approach and its components 113 RT-CH-210a.1 Disclosure 103 – 3 Evaluation of the management approach 113 RT-CH-210a.1 GRI 203: Indirect Economic Impacts 2016 Disclosure 203 – 1 Infrastructure investments and services supported 115 RT-CH-210a.1 GRI 413: Local Communities 2016 Disclosure 413 – 1 O perations with local community engagement, impact assessments, and development programmes 113 RT-CH-210a.1 127 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix TCFD Recommendations We have been carefully considering and managing – with Report, we are already addressing many of the recommended DOWNLOAD increasing scrutiny since the 2015 Paris Agreement – many of the disclosures by TCFD. Alignment is also achieved through our yearly Our CDP questionnaires are found on givaudan.com ▸ investors ▸ ESG ▸ topics addressed by the Task Force on Climate-related Financial submissions of the CDP questionnaire on Climate Change, as CDP report on climate change and CDP report on water security Disclosures (TCFD). Through our comprehensive reporting, shown in the table below. We are increasing our efforts to further including our Integrated Annual Report and our GRI Sustainability enhance the quality and robustness of our analysis and reporting. Thematic area Description Recommended disclosures CDP questionnaire references 2021 Governance Disclose the organization’s a. Describe the board’s oversight of climate-related risks and opportunities. Climate change: C1.1a, C1.1b, C1.2, C1.2a, C1.3a governance around climate-related b. Management's role in assessing and managing climate related risks and opportunities risks and opportunities. Strategy Disclose the actual and potential impacts a. Describe the climate-related risks and opportunities the organization has identified Climate change: C2.1a, C2.2a, C2.3, C2.3a, C2.4, of climate-related risks and opportunities over the short, medium, and long term. C2.4a, C3.1, C3.1b, C3.1d, C3.1e, C3.1f, C3.2, C3.2a, on the organization’s businesses, b. D escribe the impact of climate-related risks and opportunities on the organization’s C3.3, C3.4 strategy, and financial planning where businesses, strategy, and financial planning. such information is material. c. Describe the resilience of the organization’s strategy, taking into consideration Water security: section W4 different climate-related scenarios, including a 2°C or lower scenario. Risk Disclose how the organization a. Describe the organization’s processes for identifying and assessing climate-related risks. Climate change: C2.1, C2.1a, C2.2, C2.2a Management identifies, assesses, and manages climate-related risks. b. Describe the organization’s processes for managing climate-related risks. Water security: section W3.3, W3.3a, W3.3b, W3.3c, W3.3d c. Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management. Metrics and Disclose the metrics and targets used to a. Disclose the metrics used by the organization to assess climate-related risks and Climate change: C2.1a, C2.1b, C2.3a, C2.4a, C4.1, Targets assess and manage relevant climate opportunities in line with its strategy and risk management process. C4.1a, C4.2, C4.2a, C6.1, C6.3, C6.5, C9.1 related risks and opportunities where b. Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions such information is material. and the related risks. Water security: section W4.1a, W8 c. Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets. 128 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix SASB Standards mapping The following Sustainability Accounting Standards Board (SASB) sustainability issues. The table maps the relevant metrics pertaining Standards mapping table, is especially tailored to the information to the SASB Chemicals Standard to our sources of information. The needs of investors and other capital market players related to SASB accounting metrics are highly aligned with our GRI reporting. Topic Accounting Metric Code Location / Information Greenhouse Gas Emission – Gross global Scope 1 emissions, percentage covered under emissions-limiting regulations – RT-CH-110a.1 Pages 51–55 – Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction – RT-CH-110a.2 targets, and an analysis of performance against those targets Air Quality Air emissions of the following pollutants: (1) NOX (excluding N₂O), (2) SOX, (3) volatile organic compounds (VOCs), – RT-CH-120a.1 Page 60 and (4) hazardous air pollutants (HAPs) Energy Management (1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable, (4) total self-generated – RT-CH-130a.1 Pages 52–54 energy Water Management – (1) Total water withdrawn, (2) total water consumed, percentage of each in regions with high or extremely high – RT-CH-140a.1 Pages 68–74 baseline water stress – RT-CH-140a.3 – Description of water management risks and discussion of strategies and practices to mitigate those risks Hazardous Waste Management Amount of hazardous waste generated, percentage recycled – RT-CH-150a.1 Pages 66–67 Community Relations Discussion of engagement processes to manage risks and opportunities associated with community interests – RT-CH-210a.1 Pages 113–115 Workforce Health & Safety – (1) Total recordable incident rate (TRIR) and (2) fatality rate for (a) direct employees and (b) contract employees – RT-CH-320a.1 Pages 93–100 – Description of efforts to assess, monitor, and reduce exposure of employees and contract workers to long-term – RT-CH-320a.2 (chronic) health risks Safety & Environmental Discussion of strategy to (1) manage chemicals of concern and Discussion & analysis (2) develop alternatives with – RT-CH-410b.2 Pages 38–47 Stewardship of Chemicals reduced human and/or environmental impact Activity Metric – Production by reportable segment – RT-CH-000.A – 584,155 tonnes of production – Percentage of production as: (1) paper/wood, (2) glass, (3) metal, and (4) plastic – RT-CP-000.B – Materials see page 66 – Number of employees – RT-CP-000.C – 14,128 employees (headcount) 129 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Independent Assurance Statement Ernst & Young Associates LLP Golf View Corporate Tower-B Sector-42, Sector Road Gurgaon-122002 Haryana, India Tel: +91 124 464 4000 Fax: +91 124 464 4050 ey.com Ernst & Young Associates LLP (EY) has been engaged by Givaudan International S. A. (the on page 150-157 of Integrated Annual Report 2021. We conducted review and verification of ‘Company’) to provide independent assurance to its GRI Sustainability Report 2021 (the data collection/ estimation methodology and general review of the logic of inclusion/ omission ‘Reportʼ) covering the Company’s sustainability performance during the period 1st October of necessary relevant information / data and this was limited to: 2020 to 31st December 2021. – Review of the standard disclosures regarding the company’s material sustainability aspects The development of the Report, based on GRI Sustainability Reporting Standards (GRI Standards) contained in the report; of the Global Reporting Initiative, its content and presentation are sole responsibility of the management of the Company. EYʼs responsibility, as agreed with the management of the – Review of consistency of data / information within the report; Company, is to provide independent assurance on the report content as described in the scope of assurance. Our responsibility in performing our assurance activities is to the management of the – Carry out assurance review remotely including verification of the sample data and information Company only and in accordance with the terms of reference agreed with the Company. We do reported at the following manufacturing units and corporate headquarter at Vernier, Switzerland. not therefore accept or assume any responsibility for any other purpose or to any other person or organization. Any dependence that any such third party may place on the Report is entirely at 1. Naturex Bischofszell, 6. Vika, UK 14. Mako, Hungary TH its own risk. The assurance statement should not be taken as a basis for interpreting the Switzerland 7. 6 OF OCTOBER, Egypt 15. Malvinas, Argentina Company’s overall performance, except for the aspects mentioned in the scope below. 2. Naturex Casablanca, 8. Carol Stream, USA 16. Munro, Argentina Morocco 9. Cuernavaca, Mexico 17. Dortmund, Germany Assurance standard 3. Naturex Milano, Italy 10. Devon, USA 18. Cimanggis, Indonesia Our assurance is in accordance with International Federation of Accountants’ International 4. Naturex South Hackensack, 11. Fukuroi, Japan 19. Ashford, UK Standard for Assurance Engagements Other than Audits or Reviews of Historical Financial USA 12. Jaguare, Brazil 20. Sant Celoni, Spain Information (ISAE 3000), and our conclusions are for ‘limited’ assurance as set out in ISAE 3000. 5. Naturex Valencia, Spain 13. Johannesburg, South Africa Scope of assurance and methodology – Review and execution of audit trail of selected claims and data streams to determine the The scope of our work for this engagement was limited to review of information pertaining to level of accuracy in collection, transcription and aggregation processes followed; environmental performance for the period 1st October 2020 to 30th September 2021 and social performance (human resources and safety parameters) for the period 1st January 2021 to – Interview of select representatives of Company’s management to understand the current 31st December 2021. The scope of reporting boundary was limited to the operations indicated processes in place for capturing sustainability performance data as per GRI Standards, the Company’s sustainability vision and the progress made during the reporting period; 130 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Independent Assurance Statement – Review of Company’s plans, policies and practices, so as to be able to make comments on Observations and opportunities for improvement the completeness of the reporting and degree to which EY believes the report provides a During the review process, we observed that: fair and honest representation of the Company’s activities. – Our assurance team, comprising of multidisciplinary professionals, has been drawn from our Limitations of our engagement Climate Change and Sustainability network, and undertakes similar engagements with The assurance scope excludes: various multi-national companies. As an assurance provider, EY is required to comply with the independence requirements set out in International Federation of Accountants (IFAC) – Data and information outside the defined reporting period (environmental performance for Code of Ethics for Professional Accountants. EY’s independence policies and procedures the period 1st October 2020 to 30th September 2021 and social performance (HR and Safety ensure compliance with the Code. parameters) for the period 1st January 2021 to 31st December 2021); – The Company has been working towards enhancing robustness of data management – Data and information outside the defined GRI reporting boundary defined on page 150-157 systems reporting sustainability performance. The Company may further strengthen its of Integrated Annual Report 2021; system for improving the accuracy of data pertaining to overall GHG emissions, water, and human resources indicators. – Review of the ‘economic performance indicators’ included in the Report which, we have been informed by the Company, are derived from the Company’s audited financial records; Conclusion On the basis of our procedures for this limited assurance, nothing has come to our attention – The Company’s statements that describe expression of opinion, belief, inference, aspiration, that causes us to believe that the Company has not reported on material sustainability expectation, aim or future intention; disclosures significant to its business and its stakeholders. – Data, statements and claims already available in the public domain through Annual Report, Ernst & Young Associates LLP Corporate Social Responsibility Reports, or other sources available in the public domain; – Review of the Company’s compliance with regulations, acts, guidelines with respect to various regulatory agencies and other legal matters. Chaitanya Kalia Our assurance team and independence Partner Our assurance team, comprising of multidisciplinary professionals, has been drawn from our 24th January 2022, Mumbai India Climate Change and Sustainability network, and undertakes similar engagements with various multi-national companies. As an assurance provider, EY is required to comply with the independence requirements set out in International Federation of Accountants (IFAC) Code of Ethics for Professional Accountants. EY’s independence policies and procedures ensure compliance with the Code. 131 Givaudan — 2021 GRI Sustainability Report
A year in review Economic / Governance Environment Social Appendix Our reporting suite The 2021 Integrated Annual 2021 Integrated Report is the primary report to Annual Report Available in English shareholders offering a holistic PDF from 28 January 2022 explanation of our value creation, Print from 24 March 2022 financial and non-financial capitals and performance. The full Governance, Compensation and Financial reports are available in PDF. The GRI Sustainability Report features disclosures on a wide range of topics such as energy use, 2021 Integrated Annual diversity in the workplace, anti-corruption and human Report Online version rights. Our website hosts the online Integrated Annual Available in English Report. Readers are advised to consult our entire reporting from 28 January 2022 suite to get a complete overview. To order publications: www.givaudan.com ▸ Media ▸ Publications The full suite can be found on: www.givaudan.com ▸ Investors ▸ Online annual report ▸ Download centre 2021 Governance, Compensation 2021 GRI Sustainability and Financial Report Report Available in English 2021 In a Nutshell Available in English READ MORE PDF from 28 January 2022 Available in English, French and German PDF from 28 January 2022 ▸ GRI Content Index PDF in English from 28 January 2022 ▸ SASB Standards Print and language versions ▸ TCFD Recommendations from 24 March 2022 132 Givaudan — 2021 GRI Sustainability Report
Givaudan SA Chemin de la Parfumerie 5 1214 Vernier, Switzerland General information T + 41 22 780 91 11 Media and investor relations T + 41 22 780 90 53 [email protected] [email protected] Share registry Computershare Schweiz AG Postfach 4601 Olten, Switzerland T + 41 62 205 77 00 Share information Symbol: GIVN Security number: 1064593 ISIN: CH0010645932 Concept, design, consulting and realisation: PETRANIX AG, Corporate and Financial Communications www.PETRANIX.com The 2021 GRI Sustainability Report is published in English. All trademarks mentioned enjoy legal protection. This report may contain forward-looking information. Such information is subject to a variety of significant uncertainties, including scientific, business, economic and financial factors. Therefore actual results may differ significantly from those presented in such forward-looking statements. Investors must not rely on this information for investment decisions. Picture credits: Givaudan, Shutterstock, iStockphotos. © Givaudan SA, 2022 www.givaudan.com