【奇华顿创造】2023_ESG_and_Givaudan_37页_4mb

2023 Givaudan and ESG Summary

Core Purpose and Mission

Givaudan is committed to "Creating for happier, healthier lives with love for nature. Let's imagine together." This purpose drives their sustainability efforts and long-term growth, aiming to increase their positive impact on society and the planet.

Business Divisions and Sustainability Goals

Givaudan operates through two business divisions: Taste & Wellbeing and Fragrance & Beauty, which are aligned with their mission to improve the happiness and health of people while protecting nature.

ESG Integration and Strategy

ESG is fully integrated into Givaudan's business strategy. The 2025 strategy emphasizes growth with purpose, and they have made significant strides in sustainability reporting and performance.

Key ESG Milestones (2010–2023)

• 2010: Support for UN Global Compact.
• 2015: Commitment to RE100 and setting Science-Based Targets.
• 2017: Introduction of the "A Sense of Tomorrow" sustainability approach, setting GHG emissions targets in line with the Science Based Targets Initiative and committing to UN Sustainable Development Goals.
• 2019: Launched the new purpose and aligned with the UN's 1.5°C Business Ambition.
• 2021: Introduced the Sourcing4Good programme, published Human Rights policy, joined Together for Sustainability (TfS), and included TCFD and SASB standards.
• 2022: ESG fully integrated into business strategy.
• 2023: Conducted the first double materiality assessment, joined the LEAD Network, submitted the first CDP Forest questionnaire, and celebrated 10 years of the Givaudan Foundation.

Key ESG Figures (2023)

• Sales: CHF 6,915 million
• Sales growth (LFL): 4.1%
• Free cash flow as % of sales: 13.3%
• Dividend per share: CHF 68.00
• Purchased renewable electricity: 94%
• GHG emissions (Scope 1+2): -43% since 2015
• Water withdrawal rate reduction (water-stressed sites): -18% since 2020
• People benefitted through community initiatives: >440,600
• Women in senior management: 28%
• Total recordable case rate reduction: -47% since 2018
• Responsible sourcing of materials and services: 33%
• Non-executive Board members: 100%
• Base salary difference between men and women: 1.9%
• Employees trained in Principles of Conduct: 73%

Environmental Commitments

• Climate Positivity: Givaudan aims to be climate positive by 2050, removing more GHG emissions than it produces.
• Carbon Emissions (Scope 1+2): Target to reduce by 70% from 2015 baseline.
• Supply Chain Emissions (Scope 3): Target to reduce by 50% from 2015 baseline.
• Plastic Reduction: Replace single-use plastics with eco-friendly alternatives across all operations by 2030.
• Water Stewardship: Act as a role model in water stewardship, protecting water-dependent ecosystems and promoting sustainable resource use.
• Water Consumption: Approx. 223 million m³ in 2023, with 97% of water used on-site.

Sustainability Actions

• Energy Efficiency and Renewable Energy: Implemented 59 best practices across 10 categories to reduce energy and water use, with 87% progress by late 2023.
• Circular Economy: Focus on reducing waste and promoting upcycling.
• Collaboration with Customers: Shared best practices with L’Oréal to help reduce their scope 3 emissions.

Social and Governance Commitments

• Diversity, Equity & Inclusion (DE&I): Aiming for 50% women in senior leadership by 2030.
• Employee Wellbeing: Expanding mental and physical health initiatives, tools, and training.
• Workplace Safety: Reducing total recordable case rate by 50% by 2025.
• Human Rights and Labour Conditions: Ensuring due diligence and transparency for minerals and metals from conflict zones and child labour.
• Community Engagement: Improving lives of millions in sourcing and operating communities, with 100% responsible sourcing target by 2030.

Double Materiality Assessment

In 2023, Givaudan conducted the first double materiality assessment, focusing on:

• Environment: Water security, consumer health, and workforce health.
• Social: Workforce health and safety, diversity, equity, and inclusion.
• Governance: Compliance, transparency, and stakeholder engagement.

ESG Reporting Frameworks

Givaudan uses multiple frameworks to report on ESG matters:

• <IR> Framework
• GRI Standards
• SASB Standards
• TCFD Recommendations
• UN Global Compact
• IFRS
• SIX Directive Corporate Governance
• Swiss Code of Best Practice for Corporate Governance

Climate Ambitions

• Climate Positive by 2050: Based on Scope 1+2+3 emissions.
• Natural Climate Solutions (NCS): Focused on carbon capture, storage, and removal (CCSR) technologies.
• GHG Emissions: 3.2 million tonnes in 2023, with a target to reduce Scope 1+2 emissions by 70% from 2015 baseline.

Contribution to SDGs

Givaudan supports 10 of the 17 SDGs, with a focus on:

• Climate action
• Biodiversity
• Resource conservation
• Sustainable products
• Inclusion and equality
• Human rights
• Community development
• Health and wellbeing

ESG Recognition

• Ranked 5th in the 2023 Nature Benchmark.
• Rated as 'medium risk' with a score of 20.9 in the chemicals industry.
• Achieved AAA rating from MSCI ESG since 2017.
• Recognized as a leader in transparency and action on climate and water issues.

Future Goals

• Before 2025: Achieve 50% women in senior leadership, improve employee care, and be rated among leading employers for inclusion.
• Before 2030: Replace single-use plastics, reduce total recordable case rate by 50%, and improve lives of millions in communities.
• Before 2050: Be a climate-positive business across all scopes.

Conclusion

Givaudan is committed to long-term, purpose-led growth with a strong ESG focus. Through innovative sustainability actions, collaboration with stakeholders, and alignment with global frameworks and goals, they are actively working to create a better future for people and the planet.