2023 Givaudan and ESG
Purpose and performance
Who we are
Human
by nature.
We seek to elevate the human experience with the products and solutions we craft. We believe in the wisdom of nature and it is our mission to protect it.
We are growing with purpose.
2023 Givaudan and ESG 2
What we do
Creating for happier,
healthier lives
with love for nature.
We are committed to driving long-term,
purpose-led growth in collaboration with our customers. With our two business divisions, Taste & Wellbeing and Fragrance & Beauty, we aspire to increase our positive impact on the world.
This entails pioneering sustainable solutions while showing our love for nature and taking
the lead in advancing initiatives aimed at improving
the happiness and health of people.
Let's imagine together.
2023 Givaudan and ESG 3
Our sustainability journey
2010 -2015
2010
Support for UN Global Compact pronounced
2015
Givaudan commits to RE100 and to set a Science Based Target
2016 -2019
2016
- Beginning of Givaudan's integrated reporting journey
2017
- New approach to sustainability "A Sense of Tomorrow" introduced
- Setting our GHG emissions target in line with Science Based Targets Initiative
- Givaudan commits to contribute to the UN Sustainable Development Goals
2019
- New approach to shaping a sustainable future through the newly defined purpose 'Creating for happier, healthier lives with love for nature. Let's imagine together.'
- Givaudan aligns target to 1.5°C and signs the UN's Business Ambition for 1.5°C, reinforcing our commitment to become climate-positive before 2050
2020 -2023
2020
- Givaudan announces its 2025 strategy "Committed to growth, with Purpose"
2021
- Givaudan introduces the new Sourcing4Good programme
- Givaudan publishes its Human Rights policy
- Givaudan joins Together for Sustainability (TfS)
- Givaudan engaged as advisory Board members in the Renewable Carbon Initiative
- Givaudan includes TCFD recommendations
- Givaudan includes SASB standards mapping
2022
- ESG fully integrated in Givaudan's business strategy
- Acceleration of our sustainability digital journey
2023
- We conducted our first double materiality assessment
- Givaudan joins the LEAD Network
- Submission of the first CDP Forest questionnaire
- Celebrating the 10 years of the Givaudan Foundation
2023 Givaudan and ESG 4
Accelerating progress on our ESG agenda
Collaborating with suppliers, customers, and partners, we drive progress towards bold sustainability ambitions together.
Willem Mutsaerts, Head of Global Procurement and Sustainability
Hand in hand, we can navigate the complex ESG environment, drive growth and accelerate positive change for society.
Simon Halle-Smith, Head of Global Human Resources and EHS
In 2023, ESG matters were a major theme the world over and a catalyst for change in Switzerland. More stringent regulations bring new challenges, yet allow us to show our solid position in terms of reporting and environmental and social KPIs.
We developed for the first time a double materiality assessment, allowing us to re-evaluate our ESG impacts and risks comprehensively. These efforts confirmed the direction we have taken, notably in terms of the material topic Climate Change, and underscored the relevance of areas where we have been placing more emphasis, including Biodiversity, Diversity, Equity & Inclusion.
Efforts to increase energy efficiency and use of renewable energy sources are propelling us towards climate positivity while a thorough review of our water footprint has identified scope for optimising efficiency, an integral element of our environmental protection efforts.
With our people, we are striving to become even more balanced and inclusive, improving how we care for all. In our ongoing efforts towards equality, we target equal pay and active management of unconscious bias. Removing workplace barriers and
pursuing dedicated initiatives allows us to foster a more inclusive environment.
To ensure the safety and wellbeing of our workforce, we are expanding our behavioural safety programme to create a culture of safety and reduce workplace incidents. Providing access to mental and physical health initiatives, tools, and training allows us to support the wellbeing of our workforce.
ESG efforts extend not only to our employees, but also to the communities where we source and operate. Respecting human rights and appropriate labour conditions is essential to being a responsible corporate citizen. In 2023, we ensured that our due diligence and transparency related to minerals and metals from conflict zones and child labour meet the newest regulations, including Switzerland′s Code of Obligations.
By focusing on these goals, we can improve the lives of millions and promote a company culture that values the wellbeing of its employees and the communities it serves, all while caring for the environment.
Finally, we would like to express our thanks to our colleagues, customers, partners and suppliers for their continued commitment
2023 Givaudan and ESG 5
ESG fully integrated in our business
Committed to Growth, with Purpose
As a purpose-led Company, we can go even further to make our world a happier and healthier place. Our purpose leads the way to increasing our positive impact on society and the planet in order to ensure our sustainable long-term performance. It is our intention to deliver growth through the creation of inspiring products for happier, healthier lives while achieving our ambitious financial targets and longer-term purpose ambitions.
It is through our purpose and strategy that we address Environment, Social and Governance issues.
Gilles Andrier, CEO
CREATIONS E S G We create inspiring solutions for happier, healthier lives
PEOPLE S G
We nurture a place where we all love to be and grow
2025 Strategy
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Excellence, innovation, simplicity
in everything we do
NATURE E G
We show our love for nature through impactful actions
COMMUNITIES E S G
We bring benefits to all communities that work with us
Impact on Environment, Society and Governance
2023 Givaudan and ESG 6
Our double materiality matrix
Givaudan's double materiality assessment overview
In 2023, we conducted our first-ever double materiality assessment, signifying notable progress in our strategic approach, further elevating our commitment to sustainability.
This advanced framework goes beyond the traditional approach, examining not only our impacts on the environment, society, and the economy, but also offering an understanding of the risks and opportunities for our business related to sustainability. This comprehensive approach also facilitates heightened transparency and accountability. It enables us to focus on critical areas, aligning our business performance with stakeholder expectations and fostering long-term value creation.
Our assessment addresses financial performance, but also reflects our commitment to sustainable development and provides essential insights into pertinent topics for various stakeholder groups ¹.
READ MORE
Our process for finalising and prioritising material topics, along with the definitions of these topics, can be found on www.givaudan.com › Investors › Investor publications › Digital Integrated Report › Download centre
HIGH | Product quality& safety | Climate | ||||
Ingredients & products | Biodiversity & | |||||
change | ||||||
Consumer health | Governance | ecosystems | ||||
Water security | ||||||
& wellbeing | & business | |||||
onGivaudan | Human rights & | |||||
conduct | ||||||
labourconditions | ||||||
Data privacy | Workforce health, | |||||
Economic performance | ||||||
impacts | safety & wellbeing | |||||
Education & training | Diversity, equity | Waste management | ||||
ESG | & inclusion | & circular principles | ||||
Animal resources | Local community | |||||
materiality | development | |||||
Other air emissions | ||||||
Financial | Political influence | |||||
Social engagement | ||||||
LOW | ||||||
LOW | Impact materiality | Givaudan's impact on environment & society | HIGH |
1. With regards to the reporting on non-financial matters according to the Swiss Code of Obligations, the impact on air pollution and human health & safety in relation to the environment are not deemed to be material and thus not treated as separate topics. Related topics and indicators that are material are water security, consumer health & wellbeing, and workforce health & safety.
Our material topics identified by:
Environment Social Governance
2023 Givaudan and ESG 7
2023 key figures
Economic
CHF 6,915million
Sales
4.1%
Sales growth LFL ¹
13.3%
Free cash flow as a % of sales
CHF68.00
Dividend per share ²
Environment
94%
Purchased renewable electricity
- 43%
GHG emissions scope 1+2 since 2015
- 18%
Water withdrawal rate reduction on sites facing water-stress since 2020
CDP AA
Leadership in transparency and action on climate change and water security
Social
28%
Women in senior management
- 47%
Total recordable case rate since 2018
33%
Of our total materials and services sourced responsibly ³
> 440,600
People benefitted through community initiatives
Governance
100%
Non-executive and independent Board members
20%
Non-financial targets in Performance Share Plan compensation
1.9%
Average base salary difference between men and women ⁴
73%
Of employees have completed the Principles of Conduct training
- LFL: Like-for-like excludes the impact of currency, acquisitions and disposals.
- Subject to shareholder approval at the AGM on 21 March 2024.
- % by procurement spend, flagged as sourced responsibly upon completion of basic due diligence as defined in our Sourcing4Good programme.
- Results for the Givaudan Group globally for equivalent roles and skill sets. For Switzerland's private sector, the average regressed pay gap is 8%.
2023 Givaudan and ESG 8
Our commitment to sustainable business
Being a sustainable business is our promise, | - SASB Standard | We are also committed to the Sustainable | |||||||||||||||
acting as a force for good our goal. | - TCFD Recommendations | Development Goals (SDGs). Through our | |||||||||||||||
Guided by our purpose of 'Creating for | - UN Global Compact | ambitious purpose and sustainability | |||||||||||||||
happier, healthier lives with love for nature. | - IFRS | goals, we actively support the delivery of | |||||||||||||||
Let's imagine together', we will continue to | - SIX Directive Corporate Governance | those SDGs where we believe can make | |||||||||||||||
deliver sustainable value creation that | - Swiss Code of Best Practice for | the greatest impact and so focus on 10 of | |||||||||||||||
benefits all. We apply various frameworks | Corporate Governance | the 17 goals. | |||||||||||||||
to report on our business activities. | - Alternative performance measures | ||||||||||||||||
- Transparency on Non-financial | |||||||||||||||||
- Framework | Matters according to the Swiss Code | ||||||||||||||||
- GRI Standards | of Obligations |
A solid ESG track-record
A LIST 2023
CLIMATE WATER
Double 'A list' | CDP leader board | Givaudan named | Awarded the EcoVadis | Givaudan ranked 5th | Rated as 'medium risk' | Since 2017 Givaudan |
for climate and | recognition for supplier | 'Enterprising | gold medal, ranking | in the 2023 Nature | in 2023 with a score | has been rated AAA |
water for five | engagement. | Leader' at 2023 | us in the top 4% out | Benchmark. | of 20.9 and a | by MSCI ESG ratings. |
consecutive years. | RE100 Awards. | of 75,000 businesses. | It demonstrates | chemicals industry | ||
A- | Givaudan has been | leadership amongst | ranking in the top 7%. | |||
recognised in EcoVadis' | industry peers, ranking | |||||
for forest for our | top performing | first among peers | ||||
first time reporting | categories for the | in the agricultural | ||||
on forests. | past 9 years. | products and | ||||
commodities segment. |
2023 Givaudan and ESG 9
Core purpose targets
Creating for happier, healthier lives with love for nature.
Let's imagine together.
Our operations' carbon emissions (scope 1+2) will be cut by 70% (baseline 2015) p14
Our supply chain emissions (scope 3) will be cut by 20% (baseline 2015) p14
We will replace single-use plastics with eco-friendlyalternatives across our sites and operations p14
We will double our business through creations that contribute to happier, healthier lives (baseline 2018) p30
Our operations' carbon emissions (scope 1+2) will be climate positive p14
Our supply chain emissions (scope 3) will be cut by 50% p14
We will be a climate- positive business (scope 1+2+3) p14
BEFORE 2025 | BEFORE 2030 | |
BY 2030
BEFORE 2040 | BEFORE 2050 | |
We will be rated among the leading employers for inclusion
globally p19
Everyone on our sites will have access to mental and physical health initiatives, tools and training
(baseline 2023) p20
We will reduce our total recordable case rate by 50%
(baseline 2018) p20
50% of our senior leaders will be from high growth markets p19
50% of our senior leaders will be women p19
We will improve the lives of millions of people in communities where we source and operate p21
100% of materials and services will be sourced responsiblyp24
Our bold, ambitious goals allow us to address critical topics and make us a responsible company.
2023 Givaudan and ESG 10
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Givaudan SA published this content on 12 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 March 2024 10:47:11 UTC.