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Glossary

A B | C | E | F | G | H I | J | K L | M | N O | P Q R | S | T | U | V | W | X | Y | Z 

A
B
Business model 
Givaudan’s chosen system of transforming inputs, through its business activities, into outputs and outcomes that aims to fulfil the Company’s strategic purpose and create value over the short-, medium- and long-term.

C
Capitals
Capitals are stocks of value that are increased, decreased or transformed by the activities and outputs of an organisation. Givaudan has identified six kinds of capitals that feed its value chain: Financial capital, Intellectual capital, Human capital, Natural capital, Manufactured capital and Social and relationship capital.

CDP
Formerly known as Carbon Disclosure Project, CDP possesses the world’s most comprehensive collection of environmental data from companies, organisations and governments and evaluates this data systematically for investors.

Climate positive
Givaudan’s commitment to do more than reducing or even eliminating emissions: the Company will also develop initiatives to remove carbon from the atmosphere.

Committed to Growth with Purpose
Givaudan’s 2025 strategy, announced in 2020, is derived from the Company’s purpose and sets out the roadmap to deliver sustainable value creation over the next five years for all its stakeholders. It outlines Givaudan’s intention to deliver growth in partnership with its customers, achieve ambitious financial targets, while also making progress on its longer term purpose ambitions in the areas of creations, nature, people and communities.

Communication on Progress (COP)
The UN Global Compact requires participating companies to produce an annual COP that details their work to embed the Ten Principles into their strategies and operations, as well as efforts to support societal priorities.

Comparable EBITDA* 
Comparable EBITDA is the reported EBITDA, as adjusted for significant items of a non-recurring nature which have an impact on the understanding of the underlying normal operating activities. 

Convention on Biological Diversity (CBD)
The Convention on Biological Diversity is a multilateral treaty with three main goals: the conservation of biological diversity (or biodiversity); the sustainable use of its components; and the fair and equitable sharing of benefits arising from genetic resources.

Creating for happier, healthier lives with love for nature. Let’s imagine together
Givaudan’s purpose announced in 2019: the Company’s guiding star to drive sustainable long-term performance while leading the way to improve happiness and health for people and nature. It is supported by bold, measurable ambitions in the areas of creations, nature, people and communities. 

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D
E
Earnings per share
Earnings per share are calculated by dividing the Group result attributable to the shareholders of Givaudan SA by the weighted average of the number of shares outstanding during the reporting period.

EBITDA*
EBITDA defined as Earnings Before Interest (and other financial income (expense), net), Tax, Depreciation and Amortisation, corresponds to operating income before depreciation, amortisation and impairment of long-lived assets.

EcoVadis
EcoVadis aims at improving environmental and social practices of companies by leveraging the influence of global supply chains. EcoVadis’ reliable ratings and easy-to-use monitoring tools allow companies to manage risks and drive eco-innovations in their global supply chains.

Enterprise Risk Management (ERM)
The process of assessing, treating and monitoring the effects of uncertainty that may affect the achievement of Givaudan’s objectives, especially its publicly stated strategic objectives, or jeopardise Givaudan’s long-term business success.

Excellence, Innovation, Simplicity in everything we do
Focus area supporting all growth drivers and enablers in the 2025 Strategy. It is the Company’s commitment to delivering excellence, innovation and simplicity across the value chain, from operational and financial performance to the delivery of a superior customer experience.

Expand the portfolio
One of the three growth drivers powering the Company’s 2025 strategy: Bringing enhanced value proposition to Givaudan’s customers while nurturing and building on its core offering. The focus is to leverage the Company’s existing capabilities and innovation pipeline and further expanding beyond the current portfolio of flavours and fragrances, naturals and delivery systems into nutrition, food ingredients and beauty.

Extend customer reach
One of the three growth drivers powering the Company’s 2025 strategy: With a more fragment customer landscape the Company will extend its customer reach in all market segments and geographies and asserting its market leadership position with large international and global customers as well as with fast growing local and regional customer segment. 

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F
Focussed market strategies
One of the three growth drivers powering the Company’s 2025 strategy: Maximising mature market opportunities and extending its high growth market leadership.

Free cash flow (FCF)* 
FCF refers to operating cash flow after net investments, interest paid, lease payments and purchase and sale of own equity instruments.

G
GHG emissions
Greenhouse gas emissions.

GHG emissions scope 1
Direct emissions from sources owned or controlled by Givaudan.

GHG emissions scope 2
Energy indirect emissions resulting from the generation of energy that Givaudan purchases, such as electricity.

GHG emissions scope 3
Other indirect emissions that relate to the emissions produced by Givaudan's entire value chain.

Givaudan Business Solutions (GBS)
Implemented in 2017, GBS is the foundation of Givaudan’s commitment to deliver with excellence and is designed to improve internal efficiencies, leverage best practices from across the organisation and increase the Company’s agility.

Global Reporting Initiative (GRI)
A non-profit organisation that has developed the most widely used frameworks for the creation of sustainability reports.

GRI Standards
The latest version of frameworks for sustainability reporting issued by GRI in 2016. Givaudan prepares its sustainability reporting in accordance with the GRI Standards, core option. 

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H
I
Integrated Reporting
An integrated report is a concise communication about how an organisation’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value in the short-, medium- and long-term. The Integrated Reporting Framework is proposed by the International Integrated Reporting Council (IIRC).

International Fragrance Association (IFRA)
IFRA is the global representative body of the fragrance industry. It seeks to represent the collective interests of the industry and promote the safe use of fragrances.

International Organization of the Flavor Industry (IOFI) 
IOFI is the global association representing the industry that creates, produces and sells flavourings worldwide. 

J K 
L
Leverage ratio*
Leverage ratio is defined as net debt divided by the sum of net debt and equity.

Like-for-Like (LFL)*
LFL is defined as: (a) sales calculated using the invoicing exchange rates of the prior year, (b) excluding sales of businesses acquired from the acquisition date until the period end date, up to 12 months from the acquisition date, and (c) excluding sales of the businesses disposed of from the disposal date until the period end date of the comparable prior period.

Lost Time Injury (LTI)
LTI refers to the number of accidents on the job involving an absence from the workplace for a minimum of one day.

Lost Time Injury Rate (LTIR)
LTIR is the measure of the number of occupational incidents with at least one day of work lost relative to 200,000 hours of work. 

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M
Market capitalisation
Share price on the reporting date multiplied by the number of shares issued.

Materiality 
This is a fundamental principle commonly used for defining report content. In the GRI Standards, material topics for a company are those that can significantly influence the assessments and decisions of stakeholders, or have a significant impact on the economy, environment or society. This defines a company’s sustainability strategy and therefore its sustainability reporting. In Integrated Reporting, material topics are those that substantively affect the organisation’s ability to create value over the short-, medium-, or long-term. In financial reporting it determines the topics that influence stakeholders’ assessments and decisions if omitted or misstated.

N
O
Ordinance against Excessive Compensation at Listed Stock Companies (OaEC)
The provisions of this Ordinance apply to joint-stock companies pursuant to Articles 620-762 of the Swiss Code of Obligations (OR) whose shares are listed on a stock exchange in Switzerland or abroad. The Ordinance allows companies to specify the amount of additional remuneration that could be paid to any member of executive management who joins after the shareholder resolution on aggregate remuneration. 

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P Q
R
RE100 initiative
RE100 is a collaborative, global initiative uniting more than 100  influential businesses committed to 100% renewable electricity, working to massively increase demand for – and delivery of – renewable energy.

Responsible Sourcing Policy
The Responsible Sourcing Policy is a code of conduct for Givaudan’s suppliers that requires them to adhere to the same high ethical standards. It was launched in 2016 and was the first in the industry.

Restricted Share Units (RSUs)
An RSU offers employees the prospect of acquiring a certain number of shares at a later date, either in return for payment or on preferential terms. RSUs are subject to a vesting clause. Between allocation and vesting, RSUs are therefore considered as entitlements to employee shares. They are subject to one or more conditions precedent during the vesting period and are therefore not irrevocably vested until the vesting date if the conditions are met. 

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S
Science Based Targets (SBTs)
The Science Based Targets initiative is a collaboration between CDP, the United Nations Global Compact (UNGC), World Resources Institute (WRI), and the World Wide Fund for Nature (WWF), and is one of the We Mean Business Coalition commitments. The initiative enables companies to set targets in line with the Paris Agreement of limiting global warming to a maximum of 2°C and transitioning to a low-carbon economy.

Sedex Members Ethical Trade Audit (SMETA)
SMETA is an audit methodology that provides a compilation of best practice ethical audit techniques. It is designed to help auditors conduct high quality audits that encompass all aspects of responsible business practice, covering Sedex’s four pillars of Labour, Health and Safety, Environment and Business Ethics.

Supplier Ethical Data Exchange (Sedex)
Sedex is a not-for-profit membership organisation dedicated to driving improvements in responsible and ethical business practices in global supply chains. Givaudan engages with Sedex both for the assessment of its production sites and for the assessment of its suppliers.

Sustainable Development Goals (SDGs) 
The SDGs are a set of 17 global goals defined by the United Nations in 2016 to replace the Millennium Development Goals (MDGs). The goals comprise several sub-targets and indicators to measure progress and are to be met by 2030. Nations and businesses are called to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity. Swiss Code of Best Practice for Corporate Governance The ’Swiss Code’ issued by economiesuisse in 2006 provides guidelines and recommendations for good governance in public companies.

T
Total shareholder return (TSR)
Total return of a stock, including change in stock price and shareholder distributions. 

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U
United Nations Global Compact (UNGC) 
The UNGC is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with 10 universally accepted principles in the areas of human rights, labour, environment and anti-corruption.

V
Value creation
Fundamental concept of Integrated Reporting. Value created by a company over time manifests itself in increases, decreases or transformations of the capitals caused by the company’s business activities and outputs. Value is created both for the organisation itself and other stakeholders.

X Y Z

Definitions and further information and reconciliations of the Group’s Alternative Performance Measures can be found in the Appendix ‘Alternative Performance Measures’ found in Givaudan’s annual and half year financial reports

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