2023 Integrated Report on economic and ESG progress

2023IntegratedReport oneconomicandESGperformance Whoweare Humanbynature. Weseektoelevatethehumanexperiencewiththeproductsandsolutionswecraft.Webelieveinthewisdomofnatureanditisourmissiontoprotectit. Wearegrowingwithpurpose. Whatwedo Creatingforhappier,healthierlives withlovefornature. Wearecommittedtodrivinglong-term,purpose-ledgrowthincollaborationwithourcustomers.Withourtwobusinessdivisions, Taste&WellbeingandFragrance&Beauty,weaspiretoincreaseourpositiveimpactontheworld. Thisentailspioneeringsustainablesolutionswhileshowingourlovefornatureandtaking theleadinadvancinginitiativesaimedatimprovingthehappinessandhealthofpeople. Let'simaginetogether. Givaudanataglance Oursizeandoperationalfootprintgiveusuniqueexposuretoavarietyofmarkets. Wecontinuetoinvestwithadditionaltalentandnewfacilitiestoservicethewidediversityofourcustomers. NorthAmericaEurope,AfricaandMiddleEast 24% ofsales 18% ofemployees 22 sites 39% ofsales 46% ofemployees 78 sites LatinAmericaAsiaPacific 12% ofsales 14% ofemployees 17 sites 25% ofsales 22% ofemployees 46 sites 78 productionsites 64 creation&researchcentres >16,260 totalFTEemployees 124,120 productssold 44% global Ourcustomers: 56% localandregional We,theseniorleadershipatGivaudan,acknowledgeourresponsibilityforensuringtheintegrityofourintegratedreport,whichwebelieveaddresses allmattersthathave,orcouldhave,amaterialeffectonourabilitytocreatevalue. CalvinGriederGillesAndrier ChairmanCEO Frameworksapplied –<IR>Framework –GRIStandards –SASBStandards –TCFDRecommendations –SDGs –UNGlobalCompact –IFRS –SIXDirectiveCorporateGovernance –SwissCodeofBestPracticeforCorporateGovernance –Alternativeperformancemeasures Thereportonnon-financialmattersaccordingtotheSwissCodeofObligationscanbefoundonwww.givaudan.com›Investorevents›AnnualGeneralMeeting. GRI1:Foundation2021 WehavetakenintoaccountallrequirementsandstandardsfromGRI1:Foundationinthepreparationofoursustainabilityreporting,especiallythereportingprinciplesfordefiningreportcontentandquality. Reportingprinciplesfor definingreportcontent –Sustainabilitycontext –Completeness Reportingprinciplesfor definingreportquality –Accuracy –Balance –Clarity –Comparability –Timeliness –Verifiability Scopeandreportingperiod Thisreportispublishedannually. Inlinewiththefinancialreporting,thereportingperiodis1Januaryto31December.Theexceptionistheenvironmentaldata,whichcoversthe 12-monthrollingperiodfrom1Octoberto30September. ThescopeforfinancialreportingcoversallGivaudanentitiesandallacquisitionssince2014. Thescopeforthesocialperformanceindicatorsisbasedonheadcount,definedasthenumberofphysicalpeople,includinginternaltemporaryandregularemployeesinallGivaudanentitiesandacquisitionsexceptDDW,CustomEssence,Ungerer,ExpressionsParfumées,FragranceOils,AlbertVielle,VikaandAlderys¹.TotalFull-TimeEquivalent(FTE)employeescoversallGivaudanentitiesandthe19acquisitionssince2014. Oursafetydatacoversallproductionsitesandthenon-operationalsitesover50employeesinallGivaudanentitiesandallacquisitionssince2014. Thescopeforenvironmentalperformanceindicators(operationsandsupplychain)coversallproductionsitesatallGivaudanentitiesandacquisitionsexceptforFragranceOils,CustomEssenceandExpressionsParfumées¹.FiguresjustforthetwoScope3categoriesofotherIndirectmaterials&servicescategories(excludingexistingcategories)andcapitalgoodsdonotincludedatafor theacquisitionsofNaturex,Vika,Drom,UngererandDDW¹. ThescopeforresponsiblesourcingperformanceindicatorscoversallGivaudanprocurementspend,integratedandaccountedforthroughourSAP system.ExpressionsParfuméesprocurementspendisnotconsideredaspartoftheprogramme.Procurementspenddata doesnotincludeDDWandVika¹. 1.Eachyearwecontinuetoworkonintegratingtheacquiredcompaniestoourfullreportingscope. Ourkeyinnovations6Externalrecognitionof ourESGimpact8 Chairman'sletter10CEOinterview12 sustainablevalue16 Valuecreationstory17Givaudan'sbusinessmodel18 Ourdoublematerialitymatrix21Engagingwith stakeholdersin202322 Externalenvironment framingourbusiness24Managingourrisks27 CommittedtoGrowth, withPurpose39 Givaudan's2025strategy40 Deliveringonour2025strategy41 Progressagainstour purposeambitions44 Ourpurposeambitions45 Corepurposetargets46 Creations47Nature53People57Communities62 Ourbusinessperformance in202368 Consolidatedfinancial statements72Non-financialdata76 onourESGagenda84 Oursustainabilityjourney85 Environment86 Ourenvironmentalambitions87Ourenvironmentalfootprint88Ourroadmaptobecoming climatepositive89 Climatechange90Biodiversityandecosystems106Watersecurity113Wastemanagementand circularprinciples122 Social131 Oursocialambitions132 Humanrightsand labourconditions133 Workforcehealth,safety andwellbeing141 Diversity,equityandinclusion151Consumerhealth andwellbeing156 Governance161 Economicperformance162 Governanceand businessconduct165 Dataprivacy177 Productqualityandsafety179 Ingredientsandproducts184 andkeypartnerships196Doublematerialityassessment207Positionstatements Ayearinreview Responsiblevaluecreation Financialandnon-financialperformance ESG