Our business model: creating sustainable value at Givaudan
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Our value creation process shows how Givaudan draws on its various resources, called inputs, and translate them into outcomes – the internal and external consequences of our business activities that impact the Company and its stakeholders.
Our value creation process begins with resources called capital inputs.
We have identified six kinds of capitals that feed Givaudan’s value chain:
- Financial capital
- Intellectual capital
- Human capital
- Natural capital
- Operations capital
- Social and relationship capital
Together, these inputs feed directly into our business model.
The inputs
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2025 Inputs
Financial capital
- Equity CHF 4,568 million
- Credit Ratings A– S&P, Baa1 Moody’s
- Financing costs CHF 113 million
Intellectual capital
- R&D spend CHF 551 million
- >5,000 patents
- 65 creation & research centres
- 2 digital factories
- Innovation partnerships
Human capital
- 17,580 employees
- 34% women in senior management
- CHF 1,649 million wages and benefits
- 2,585 employees completed human rights training
- –48% TRCR since 2018 ¹
Natural capital
- >10,000 raw materials from 114 countries
- Renewable energy investments
- Sourcing4Good programme
Operations capital
- 77 production sites
- CAPEX 3–4% of sales
- Operating costs CHF 4,471 million
- Digital infrastructure
Social and relationship capital
- >18,000 suppliers
- 100% Sedex coverage on our production sites
- Community and humanitarian programmes
- Stakeholder partnerships
The TRCR reduction is based on an adjusted 2018 baseline rate of 1.45, revised to reflect the integration of acquired companies – Naturex, Drom, Albert Vieille, Expressions Parfumées, Golden Frog, and Vika.
Our business model
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Our business model
How we operate
- Our customers are at the heart of our strategy
- Innovation and sustainability drive growth and value
- Strongly focused on protecting and supporting our employees
- Our two businesses, Taste & Wellbeing and Fragrance & Beauty, are aligned with the value chain and address customer needs with differentiated solutions and business strategies
- Addressing ESG topics through our purpose and strategy
Our value chain
Through our value chain we create innovative products and solutions that have a positive impact on nature, people and communities. The corresponding outputs and impacts deliver growth – in partnership with our customers – through creating inspiring products for happier, healthier lives.
Our business model uses these capital inputs for the realisation of our business activities. Taste & Wellbeing, and Fragrance & Beauty, aim to shape the future of food, fragrances and beauty by becoming the innovation and co-creation partner of choice to our customers.
The outputs
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2025 Outputs
Financial capital
Element
OUTPUTS
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- CHF 7,472 million sales
- 24.2% comparable EBITDA margin
- CHF 645 million dividends
- Economic value distributed CHF 7,059 million
OUTCOMES
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- Sustained revenue growth and profitability
- Efficient capital allocation
- Enhanced investor confidence
IMPACTS
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- Inclusive economic growth
- Stable returns for investors
- Fair tax contribution and regional economic resilience
Intellectual capital
Element
OUTPUTS
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- New and sustainable product launches
- Co‑creation projects
- Digital innovation initiatives
OUTCOMES
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- Enhanced innovation leadership
- Strengthened customer experience
- Accelerated digital transformation
IMPACTS
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- Industry‑wide innovation diffusion
- Greater access to sustainable products
- Contribution to knowledge economy
Human capital
Element
OUTPUTS
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- Skilled and diverse workforce
- Higher training hours per FTE
- Improved safety performance
OUTCOMES
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- Safer, inclusive, and engaged organisation
- High employee engagement
- Leadership pipeline strengthened
IMPACTS
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- Improved wellbeing and livelihoods
- Greater employment stability
- Social value through decent work and diversity
Natural capital
Element
OUTPUTS
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- –50% GHG (scope 1+2)
- –32% water withdrawal on sites facing water stress
- Waste recovery and circularity initiatives
OUTCOMES
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- Lower environmental footprint
- More resilient and responsible supply chains
IMPACTS
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- Climate mitigation and biodiversity protection
- Resource efficiency
- Progress towards net‑zero and circular systems
Operations capital
Element
OUTPUTS
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- ~143,800 products sold
- Improved process automation
- Optimised asset utilisation
OUTCOMES
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- Increased operational efficiency
- Enhanced supply reliability
- Reduced production waste
IMPACTS
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- Supply chain resilience
- Global efficiency gains
- Customer satisfaction and continuity of supply
Social and relationship capital
Element
OUTPUTS
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- 820,137 people benefited from community initiatives
- CHF 350,000 total donations
- Supplier engagement and training
OUTCOMES
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- Enhanced supplier accountability
- Improved community relations
- Social inclusion initiatives
IMPACTS
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- Stronger communities and livelihoods
- Improved trust and partnerships
- Contribution to UN SDGs
Purpose-led company
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As a purpose-led Company, our value creation process helps us deliver growth in partnership with our customers and increases our positive impact on nature, people and communities by creating inspiring products for happier, healthier lives.
It enables us to deliver success to our customers and our stakeholders while shaping a better tomorrow for all. Stakeholders that benefit are:
• Customers
• Suppliers
• Employees
• Owners and investors
• Local communities
• Public and regulatory agencies
Environmental
Element
+ Impacts
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- Contribute to climate action and resilience
- Contribute to the preservation and restoration of biodiversity
- Conserve resources, avoid unrecycled waste and strengthen circularity
- Increase access to more sustainable products
– Impacts
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- Emission of CO2 and other gases that affect the climate
- Risk of land-use change
- Water use in water-stressed areas
- Waste directed to disposal
Our mitigation measures
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- Climate transition plan
- Biodiversity programmes
- Sustainable energy and water management
- Circularity principles
Social
Element
+ Impacts
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- Prioritise safety and encourage a culture of care
- Provide attractive jobs and promote diversity
- Pay competitive wages and salaries
- Improve mental and physical health
- Improve livelihoods of farmers, workers and wider communities in areas where we source
– Impacts
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- Workplace safety and health issues
- Personal adjustments
- Potential risk of deviation or violation of labour, environmental and social standards
Our mitigation measures
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- Inclusive health and safety programmes
- Compliance programme, code of conduct
- Projects to improve environmental and social impact in the supply chains
- Selection and evaluation of suppliers
Economic
Element
+ Impacts
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- Drive inclusive and economic growth
- Provide higher incomes and better standards or living
- Offer investors an attractive dividend yield
- Contribute to a fair share of tax contributions where we operate
– Impacts
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- Slowdown in growth due to the uncertain macro economic and geopolitical environment
- Slowdown due to supply chain disruption impacting operations
- Weakening of performance from rising interest rates and foreign currency volatility
Our mitigation measures
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- Naturally hedged business (portfolio, geography, customers)
- Systematic cost management
- Programme of continuous improvement
- Automation and leveraging technology
- Strong governance and risk management
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