2023 Double Materiality Assessment

Doublematerialityassessment Excerptfromthe2023IntegratedReportoneconomicandESGperformance Doublematerialityassessment Ourfirstmaterialityassessment,conductedin2011inalignmentwiththeGRISustainabilityReportingStandards,markedourcommitmenttomeaningfuldialoguewithourstakeholdersandservedasafoundationforidentifyingkeyenvironmental,social,andgovernance(ESG)materialtopics.Overthecourseof11years,wehavecontinuouslyupdatedthisassessmentthroughinternalreviewsandcomprehensiverevisionsinresponsetoevolvingregulations. In2023,Givaudanconducteditsfirst-everdoublematerialityassessment,acomprehensiveframeworkemployedbycompaniestoevaluateanddisclosetheirESGimpactsandrisks.Thisassessmentgoesbeyondthetraditionalapproachbyconsideringimpactsontheenvironment,society,andtheeconomy(outward-looking)aswellasrisksandopportunitiesforourbusinessrelatedtosustainability(inward-looking). ConductingadoublematerialityassessmentallowsGivaudantogaindeeperinsightsintotherisksandopportunitiesassociatedwithsustainability,fosteringinturnenhancedtransparency,accountability,and long-termvaluecreationforboththeCompanyandsociety.Itenablesustofocusonareasthatinfluenceourvaluepropositionanddemonstrateourcommitmenttosustainabledevelopment. Finally,ouractivitiesclearlyextendbeyondeconomicoutcomesanditisimperativetoalignourbusinessperformancewiththeexpectationsofourstakeholdersandsocietyatlarge.OurdoublematerialityassessmentprovidesaprofoundunderstandingofthemostrelevantESGmaterialtopicsfordifferentstakeholdergroups,informationthatiscriticaltoaccomplishingthisgoal. AnoutlineofourcomprehensiveprocessforidentifyingandprioritisingESGmaterialtopicsisgivenbelow. Establishingscopeandboundaries –identificationofrelevanttopics Thedoublematerialityassessmentprocessstartedwiththeessentialstepofdefiningitsscope.Weinitiatedthisphasebydescribingtheboundariesoftheassessment,identifyingrelevantESGmaterialtopicsthroughoutourextensivevaluechainthatareimportanttoourstakeholders.Thisyear,weemphasisedtheidentificationofthematerialtopicsratherthanmanagementapproachestoavoidpotentiallyoverlappingareas,resultinginsomechangestoourmatrix. Theapproachallowedustocovertheintricaciesofthesupplychain,operationalaspects,andthewidearrayoftheproductsandservicesweoffer. Ourapproachdrewfromvarioussourcesandincorporatedmeticulousanalysis,includingathoroughreviewofinternalandexternaldocumentation,industryinsights,regionaltrends,andchallenges.Wealsoscrutinisedexistingcommitmentsandadherencetoindustry-leadingframeworkssuchastheGRISustainabilityReportingStandards,TaskForceonClimate-relatedFinancialDisclosures(TCFD),andCorporateSustainabilityReportingDirective(CSRD)toensurealignmentwithbestpracticesandindustrystandards. Theoutcomeofthisanalysis,whichwassupportedbyexternalexperts,wasalonglistofpotentiallymaterialtopicsthatthenservedasthestartingpointforsubsequentassessment. Theeffortsalsoproducedalistofstakeholdersrelevanttotheassessment,acrucialaspect.TheseelementsthenunderwentrigorousvalidationwithGivaudan’sprojectteam,ensuringalignmentwiththeCompany’sstrategicobjectivesandsustainabilitygoals. Impactmateriality(inside-out) Thenextphaseinvolvedconductinganindependent,expert-basedimpactassessmentevaluatingthescale,irremediability,andlikelihoodofbothpositiveandnegative,actualandpotential,intendedandunintendedimpactsthroughoutGivaudan’svaluechainforeachlonglisttopic.Thisthoroughanalysisensuredawell-roundedunderstandingoftheimpactsassociatedwitheachESGmaterialtopicidentified. Givaudan’sSustainabilityLeadershipTeamvalidatedtheimpactassessmentandprioritisationofESGmaterialtopics,withtheirexpertiseandinsightsfurtherconfirmingthesignificanceandrelevanceoftheidentifiedimpacts. TheresultsofthisassessmentarepresentedbelowasanoverallrankingoftheimpactsandasanoverviewofthepointsalongthevaluechainwhereGivaudanhasthebiggestpositiveornegativeimpacts. Financialmateriality(outside-in) Assessmentandmethodology Theprimarygoalofthefinancialmaterialityassessmentwastoidentifyandvalidatethemostsignificantsustainability-relatedrisksandopportunitiesforGivaudan. OurdoublematerialityassessmentaimedtoidentifyESGmaterialtopicslikelytoaffectourstrategy,operations,and long-termbusinesssuccess.Weconductedanin-depthanalysisofhowexternalfactorsinfluencedusfinancially,andassessedourcapacitytomanagerisksandcapitaliseonopportunities. Impactalongthevaluechain UPSTREAMDOWNSTREAM Climatechange Biodiversity&ecosystems Humanrights&labourconditions Watersecurity Productquality&safety Wastemanagement&circularprinciples Economicperformance Workforcehealth,safety&wellbeingGovernance&businessconductIngredients&products Diversity,equity&inclusionConsumerhealth&wellbeing Dataprivacy veryhighhighmediumlowN/A Toensureacomprehensiveandinclusiveassessment,wecarriedoutaworkshopwithseniorleadersrepresentingallareasofthebusinessandinternalstakeholdergroups.InternalexpertssystematicallyassessedtheseverityandlikelihoodofrisksandopportunitiesassociatedwithrelevantESGmaterialtopics,subsequentlyallowingforthoroughconsiderationofthefinancialimplications.