2022 Sustainability Report

2022SustainabilityReport FollowingGRIStandards Thisreporthasbeenpreparedinaccordance withtheGRIStandards2021 Scopeandreportingperiod Thisreportispublishedannually. Thescopeforenvironmentalperformance Frameworksapplied ›GRIStandards ›SASBStandards ›TCFDRecommendations ›UNGlobalCompact ›SustainableDevelopmentGoals GRI1:Foundation2021 WehavetakenintoaccountallrequirementsandstandardsfromGRI1:Foundationinthepreparationofoursustainabilityreport,especiallytheGRI’sreportingprinciplesfordefiningreportcontentandquality. Reportingprinciplesfor definingreportcontent ›Sustainabilitycontext ›Completeness Reportingprinciplesfor definingreportquality ›Accuracy ›Balance ›Clarity ›Comparability ›Timeliness ›Verifiability Inlinewiththefinancialreporting,thereportingperiodis1Januaryto31December.Theexceptionistheenvironmentaldatawhichcoversthe 12-monthrollingperiodfrom1October to30September. ThescopeforthefinancialreportingcoversallGivaudanentitiesandthe19acquisitionssince2014. Thescopeforsocialindicatorscovers: NumberoffulltimeemployeesreferstoequivalentfulltimeemployeesinallGivaudanentitiesandthe19acquisitionssince2014.Forsafety,thefollowingacquisitionsareexcluded:DDW, CustomEssence. Head-countisdefinedasthenumberofphysicalpeopleandincludesinternaltemporaryandregularemployeesinallGivaudanentitiesandacquisitionsexcept:DDW,CustomEssence,Ungerer. indicators(operations)coversallGivaudanentitiesandacquisitionsexceptfor:DDW,FragranceOils,CustomEssenceandExpressionParfumée.Forenvironmentalperformanceindicators(supplychain),thescopehasnotchangedfrom2021andcoversallGivaudanentitiesandacquisitionexceptforthefollowing:DDW,FragranceOil,CustomEssence,Expressionparfumée,AlbertVieille,GoldenFrogandUngerer. Beingasustainablebusinessisourpromise,actingasaforceforgoodisourobjective.Inourfourteenthsustainabilityreport,thethirteenthinaccordancewiththeGRIframework,weshowourperformanceandprogresswithrespecttoEnvironment,SocialandGovernance(ESG)-relatedaspects. Wereportagainstourimpactsinouridentifiedmaterialtopics,whicharerootedinourstrategicapproachfor2025 andcontributetoourpurposeof‘Creatingforhappier,healthierliveswithlovefornature.Let’simaginetogether.’ Ourlong-termambition:Ourpurpose Creatingforhappier,healthierliveswithlovefornature.Let’simaginetogether. CreationsNaturePeopleCommunities Ourmid-termpriorities:Our2025strategy growth 4–5% Purpose targets linked >12% FCF CommittedtoGrowth,withPurpose Ourimpactsandmaterialtopics Economic/Governance ›Economicperformance ›Governance&businessconduct/ethics/transparency ›Product/ingredientsenvironmental&socialperformance ›Productquality&safetyandingredientdisclosure ›Innovationcapabilities&management Environment ›Climatechange ›Wastemanagement&circularprinciples ›Waterstewardship ›Biodiversity Social ›Humanrights ›Diversity,inclusion&peopledevelopment ›Employeesafety,health&wellbeing ›Responsiblesourcing&traceability ›Localcommunitydevelopment ›Consumerhealth&wellbeing Oursolidtrack-recordofESGratings Double‘Alist’forclimateandwaterforfourconsecutiveyears CDPleaderboardrecognitionforsupplierengagement AwardedtheEcoVadisGoldmedal,rankingusinthetop3%outof75,000businesses Ratedas‘low-risk’in2022withascoreof19.3andachemicalsindustryranking13outof539 FTSE4GoodIndexSeries Rankedinthetop2%intheFTSE4GoodIndexSeries,amongourpeers IncludedinSXISwissSustainability25Index Since2017GivaudanhasbeenratedAAAbyMSCIESGRATINGS Ayearinreview Economic∕GovernanceEnvironmentSocialAppendix Tableofcontents 114 Ayearinreview Economic/Governance Environment SocialAppendix 2022sustainable performance5Letterstostakeholders6 Ourpurposeisattheheart ofeverythingwedo8 ESGfullyintegrated inourbusiness9Businessmodel10Oursustainabilityjourney12 Innovationembraces sustainability13Stakeholderengagement15Materialtopics18Keypartnerships22 Ourambitions28Economicperformance29 Governance&business conduct/ethics/ transparency35 Product/ingredientsenvironmental&socialperformance44 Productquality&safetyandingredientdisclosure46 Innovationcapabilities& management50 Ourambitions58 Givaudan’senvironmental footprint59Climatechange60 Wastemanagement& circularprinciples78Waterstewardship88Biodiversity99Environmentalperformance106 Ourambitions115Humanrights116 Diversity,inclusion& peopledevelopment121 Employeesafety,health& wellbeing130 Responsiblesourcing& traceability140 Localcommunity development151 Consumerhealth& wellbeing158 Theprinciplesofthe UNGlobalCompact164 TheSustainable DevelopmentGoals165GRIContentIndex168TCFDRecommendations174SASBStandardsmapping175 Independentassurance statement177Ourreportingsuite179 AyearinreviewEconomic∕GovernanceEnvironmentSocialAppendix Ayearinreview 2022sustainableperformance5 Letterstostakeholders6 Ourpurposeisattheheart ofeverythingwedo8 ESGfullyintegratedinourbusiness9Businessmodel10 Oursustainabilityjourney12 Innovationembracessustainability13 Stakeholderengagement15 Materialtopics18 Keypartnerships22 Givaudan–2022SustainabilityReport4 AyearinreviewEconomic∕GovernanceEnvironmentSoci