Our business model: creating sustainable value at Givaudan

Givaudan Story
  • Value creation
  • The capital inputs
  • Our business model
  • The capital outputs
  • Purpose-led company
Value creation
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Our value creation process shows how Givaudan draws on its various resources, called capital 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
  • Manufactured capital
  • Social and relationship capital

Together, these inputs feed directly into our business model.

The capital inputs
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2023 capital inputs

Financial capital

Financial capital

Funds available to the Group

  • A– S&P, Baa1 Moody's Investment Grade Credit Rating
  • CHF million 3,998 of equity
Intellectual capital

Intellectual capital

Technology, patents, know-how, processes

  • 64 creation and research centres
  • CHF million 519 R&D spend
Human capital

Human capital

The skills, motivation, diversity of our people, best-in-class health and safety procedures

  • > 16,260 total FTE employees
  • 80% response rate in the employee engagement survey
Natural capital

Natural capital

Raw materials, indirect materials and services, innovative sourcing models

  • > 11,900 different raw materials sourced
  • 120 countries of sourcing
Manufactured capital

Operations capital

Production sites, infrastructure, end-to-end supply chain solutions

  • 78 production sites supporting our customers' growth globally
  • 3-4% of sales invested annually in Capex
Social and relationship capital

Social and relationship capital

Our relationships with local communities, regulators and industry bodies, brand and reputation

  • > 17,000 suppliers
  • 71 community projects in 32 countries 
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 divisions, 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 capital outputs
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2023 capital outputs

Financial capital

Financial capital

Responsible financial growth and shared profitability

  • CHF million 6,915 sales
  • 22.4% comparable EBITDA


Intellectual capital

Intellectual capital

Differentiating solutions through responsible innovation

  • 5,000 active patents worldwid
  • > 20% of sales resulting from innovations developed over the last five years
Human capital

Human capital

Recruiting, developing and caring for diverse and inclusive workforce

  • 28% of senior leaders from high growth markets
  • –47% total recordable case rate since 2018
Natural capital

Natural capital

Reducing water and energy consumption, emissions and waste, preserving biodiversity and renewable resources

  • –43% GHG reduction scope 1+2
  • –18% water withdrawal rate for sites located in areas facing water stress since 2020
Manufactured capital

Operations capital

New site openings and sustainable products produced and sold

  • 124,120 products sold
  • Openings of the Tropical Food Innovation Lab and a new office in Chengdu, China
Social and relationship capital

Social and relationship capital

Stakeholder engagement and collective action

  • 100% of our production sites are registered on Sedex
  • 100% of our Taste & Wellbeing production sites are GFSI-certified standards


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


+ Impacts

  • Contribute to climate action and resilience
  • Contributing to the preservation and restoration of biodiversity
  • Conserve resources, avoid unrecycled waste and strengthen circularity
  • Increase access to more sustainable products


– Impacts

  • Emission of CO2 and other gases that affect the climate
  • Potential risk of land-use change
  • Water use in water-stressed areas
  • Waste directed to disposal


Our mitigation measures

  • Climate transition plan
  • Assessing our biodiversity risks
  • Sustainable energy and water management
  • Circularity principles


+ Impacts

  • 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

  • Workplace safety and health incidents
  • Personal adjustments 
  • Potential risk of deviation or violation of labour, environmental and social standards


Our mitigation measures

  • 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


+ Impacts

  • Drive inclusive and economic growth
  • 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

  • Slowdown in growth due to the uncertain macroeconomic 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

  • Naturally hedged business (portfolio, geography, customers)
  • Systematic cost management
  • Programme of continuous improvement
  • Automation and leveraging technology
  • Strong governance and risk management