An industry leader in climate action We have been working to become climate positive for some years, having been early adopters of the Science Based Targets initiative. Working with experts and joining others in calls for action is important, which is why we signed the UN pledge ‘Business Ambition for 1.5°C’ and take an active role in organisations such as CDP, We Mean Business and WBCSD. In 2021, we were one of over 80 companies taking part in the road test of the world's first Net Zero Standard launched by the Science Based Targets initiative. As we strive to deliver on our purpose and sustainability ambitions, we know that no business can tackle the issue of climate change alone. Action depends on a collective effort, guided by the latest climate science and a shared commitment to creating a positive future. Demonstrating our industry leadership in climate action and the transition to a low-carbon economy, we again took part in the annual CDP Climate Change questionnaire. We received the highest score for the third year in a row: CDP score A for climate action. Reducing emissions of GHG in our operations is a major part of our actions against global warming and we are making good progress towards our targets. In 2021, our absolute total direct (scope 1) and indirect (scope 2) GHG emissions decreased by 75,600 tonnes. The evolution of absolute total scope 1 and 2 GHG emissions in 2021 vs the 2015 baseline has been of -31%. Our scope 1 and scope 2 GHG emissions intensity (GHG emissions/ tonne of product) decreased by 11% in 2021 vs 2020. While cutting GHG emissions is a key part of our climate actions, we are aware that two-thirds of industrial energy consumption relates to heating and cooling processes and is a major environmental challenge. In Spain, we are deploying an innovative approach to integrate renewable thermal energy sources: the HyCool project at our Sant Celoni site will use breakthrough technology by combining solar collectors with absorption chillers to harness solar energy to produce steam, heating and cooling energy with greater efficiency. Installation started in summer 2021 and, once completed, and at full scale, is expected to reduce site GHG emissions by 3%, reduce gas consumption, and deliver refrigeration with 25% greater efficiency. We are on track to complete the project in May 2022. READ MORE Have a look at the interview with the Givaudan HyCool project officer: www.givaudan.com ▸ sustainability ▸ nature ▸ climate action ▸ solar heat for cool innovation ▸ hycool project spain Moving to 100% renewable electricity As part of our industry-leading journey to become climate positive before 2050 and as a proud member of RE100 since 2015, we are converting our entire electricity supply to fully renewable sources by 2025. We are on track to achieve this target, as we attained 84% of renewable electricity supply, with 45 production sites purchasing 100% of electricity from renewable sources by the end of the reporting year as at December 2021. Examples of our moves to renewable electricity can be seen at our Taste & Wellbeing site at Pune in India, where we are fitting more than 2,000 solar photovoltaic panels to rooftops, ground mounts and carports to cut reliance on fossil fuels. We’ve installed and commissioned a total of 746 kWp onsite solar power – 716  kWp in February 2020 and 30 kWp in July 2021. The installation, which dedicates about 5,300 square metres to the solar panels, has resulted in electricity generation of about 971,520 kWh. This enables us to cut by 20% the use of electricity purchased from fossil sources as well reducing our carbon footprint by more than 900 tonnes of CO₂e. In addition, at our site in Melaka, Malaysia we’ve installed a 400  kWp solar PV system to cover a total area of more than 22,40 square metres. The objective is to reduce power purchases from about 100 mkW/month to about 55 mkW/month, avoiding the production of 332 tonnes of CO₂e every year. And in Brazil, our Jaguaré and Botucatu sites have migrated to 100% renewable electricity (wind). While the main aim was to buy renewable energy, there was an added attraction of selling the sites’ unused energy back to the market. The anticipated savings for the move to renewable electricity are CHF 750,000 over five years, with expected sales of unused energy worth more than CHF 72,000 in 2021. These innovative examples are an important part of reaching our targets. In 2020, we set a new renewable electricity strategy prioritising on-site generation, then off-site generation and then the purchase of Electricity Attribute Certificates (EACs). Our stringent procurement strategy helps add more renewable electricity to the grid and in 2021 we purchased electricity that accounted for 32% of the total energy used across the Company but which equated to 15% of our total CO₂ emissions. Our ambition is a bold one, but a n ecessary step to bring about impacts in the years to come. And we need to all work together with a positive, action-oriented mindset. Willem Mutsaerts Givaudan – 2021 Integrated Annual Report 72 Acting as a force for good Nat ure Ac ting on climate change