Global deforestation and conversion-free supply chain policy
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This Policy outlines Givaudan’s commitment, expectations and management approach to source in-scope raw materials which are deforestation and conversion-free.
This Policy applies to all Givaudan’s business units, subsidiaries, affiliates, and joint ventures where the Group has operational control. We expect our suppliers of in-scope materials, as defined in the ’scope of application’ section to, meet, or exceed, the requirements laid out in this Policy and to engage their own suppliers towards the same.
This Policy is aligned with the principles and definitions of the Accountability Framework Initiative guidance (AFI) as well as sectoral approaches where they exist.
Related Company policies
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Related Company policies
This Policy is in line with Givaudan’s purpose and the following applicable corporate policies.
Principles of Conduct Responsible Sourcing Policy Human Rights Policy
Background
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Background
Forest and non-forest ecosystems such as grasslands, peatlands, and savannahs, are essential to our planet. Hosting most of the terrestrial biodiversity, these natural ecosystems also play a critical role in regulating the climate, acting as carbon sinks, and providing our societies with food, timber, medicine, clean water, and inspiration.
The degradation and conversion of natural ecosystems are key drivers of greenhouse gas (GHG) emissions and biodiversity loss. Agriculture remains the main driver of deforestation, forest degradation and non-forest ecosystem conversion.
34% of tree cover losses worldwide from 2001 to 2024 are primarily the result of permanent land use change, meaning trees won’t grow back naturally.
This percentage nearly doubles in tropical primary rainforests, with 61% of loss likely associated with permanent land use change. Approximately 95% of this was permanent agriculture, which was associated with the loss of 168 million hectares of trees from 2001-20241
The biggest agricultural commodities driving natural ecosystem conversion globally are cattle, oil palm, soy, cocoa, rubber, coffee, and wood products.
We acknowledge the critical role of protecting remaining existing natural ecosystems from further conversion and degradation linked to human activities, especially for agricultural purposes.
Givaudan is committed to protecting and regenerating biodiversity by 2030 and beyond, and has also set ambitious climate targets, in line with the Science Based Targets initiative’s (SBTi) Net-Zero Standard trajectory. Our deforestation and conversion-free supply chains (DCF) commitment is a key enabler for these two connected ambitions and our progress will contribute to our net-zero target by addressing land use change emissions within our scope 3.
In line with industry best practices and Accountability Framework Initiative (AFI) principles, through this Policy, we are specifying our commitment, requirements to our direct suppliers, and management approach to meet our goal of sourcing our commodities without contributing to deforestation or natural ecosystems conversion by 2030.
Key terms
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Key terms
Deforestation and Conversion: Loss of natural ecosystems as a result of their replacement with agriculture or another land use, or due to a profound and sustained change in a natural ecosystem species composition, structure, or function. Deforestation is one form of conversion – the conversion of natural forests.
Cut-off date: The date after which deforestation or conversion of a natural ecosystem renders a given area or sourced material produced on this area non-compliant with this Policy.
Natural ecosystem: A natural ecosystem is one that closely resembles the species composition, structure, and ecological functions that would exist in an area without major human impacts. It includes pristine, regenerated, managed, or partially degraded systems that retain or can recover most of their natural characteristics and functions.
Deforestation and conversion-free: Material derived from a commodity whose production and sourcing is not linked with deforestation and the conversion of natural ecosystems.
In-scope materials: Raw materials derived from the commodities targeted by this Policy.
Critical agricultural commodities: Primary agricultural crops produced and traded in global markets and targeted by our DCF commitment as laid out in this Policy because of their link with global conversion of natural ecosystems, including natural forests, and assessed as relevant to our sourcing portfolio: oil palm, cocoa, coffee, soy, sugarcane, corn and timber (herein referred to as wood products).
Our Policy
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Our Policy
Our commitment
Scope of application
Our management approach
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Our commitment
Givaudan sources thousands of raw materials every year worldwide to create unique fragrances, flavours, cosmetic and other functional ingredients for our Taste & Wellbeing and Fragrance & Beauty activities. Globally, our direct use of agricultural Commodities and derived products associated with deforestation and natural ecosystem conversion is limited.
Nonetheless we are aware that the production of these commodities may be linked to forest and non-forest conversion, and therefore take responsibility for ensuring that our supply chains for these critical agricultural commodities are not associated with such impacts.
Taking stock and building upon the commitments and progress made under our responsible sourcing programme − Sourcing4Good − and as a key enabler to our corporate biodiversity ambition, we are committed to promoting transparency in these raw materials in our supply chains, and to take pragmatic and adapted measures to mitigate the risk of deforestation and conversion associated with our sourcing of in-scope raw materials.
We will source our critical agricultural commodities without contributing to deforestation or natural ecosystem conversion by 2030 with a cut-off date no later than 31 December 2020.
We will ensure that all our in-scope sourcing and operations comply with local and international laws.
We will also continue to contribute to the conservation and restoration of natural ecosystems within and beyond our raw material supply chains.
With respect for human rights
Preserving natural ecosystems in our supply chains whilst ensuring the respect of communities and people depending on these ecosystems goes hand in hand.
Details of our commitments, requirements to suppliers and management approach to ensuring the protection of human rights, workers’ rights, rights of indigenous people and local communities, and the Free Prior Informed Consent (FPIC) are covered in our corporate policies. These reference the UN Guiding Principles for Business and Human Rights and the International Bill of Human Rights.
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Scope of application
Givaudan sources various types of raw materials, from simple ingredients to complex compounds and derivatives, leading to different levels of complexity in the supply chain.
We have identified in our sourcing of raw materials the commodities which are global drivers of deforestation and conversion of natural ecosystems, and which are significant to our business activities. Our commodity supply chains may involve several tiers with multiple players at each tier, which leads to increased complexity in building transparency and tracing our raw materials to the production area.
Given this context, we will phase our approach to reaching our DCF target by 2030 considering the materiality and complexity of each commodity supply chain.
Phase 1
COMMODITY | DERIVED MATERIALS IN SCOPE (subject to change) | ECOSYSTEM CONVERSION ADDRESSED |
|---|---|---|
Oil palm | Palm oil, palm kernel oil and derivatives | Deforestation and peat conversion |
Cocoa | Beans, liquor, powder, butter, extracts, absolutes | Deforestation |
Coffee | Beans, ground, instant coffee, extracts, absolutes, natural caffeine | Deforestation |
Soy (direct) | Directly sourced soy ingredients2: oils, flours, proteins | Deforestation and conversion |
We will primarily focus on the above commodities and derived materials for the scope of this DCF Policy considering the contribution of these commodities to the global risk of deforestation and conversion, and their materiality in our sourcing portfolio.
Beyond the critical agricultural commodities listed above, we will expand our implementation scope to include additional commodities identified as material to our sourcing, following a phased and risk-based approach.
Phase 2
COMMODITY | DERIVED MATERIALS IN SCOPE (subject to change) | ECOSYSTEM CONVERSION ADDRESSED |
|---|---|---|
Sugarcane | Sugar, alcohols, other derivatives | Deforestation and conversion |
Corn | Maltodextrin, dextrose, corn syrup, starch, caramel, oil, flour | Deforestation and conversion |
Wood products | Crude Sulphate Turpentines (CST) | Deforestation |
Soy (direct) | Embedded forms of soy3: Soy used in animal feed for livestock and livestock derived materials such as animal proteins and dairy products | Deforestation and conversion |
Given this context, we will phase our approach to reaching our DCF target by 2030 considering the materiality and complexity of each commodity supply chain.
The scope of commodities, list of derived materials and implementation phasing of this Policy is subject to ongoing adaptation based on new risk identification, evolving business activities, acquisitions, and new regulations.
Our approach to managing natural ecosystem conversion risks is grounded in our existing commitments to responsible sourcing across our raw material supply chains.
In line with our Responsible Sourcing Policy, all suppliers are required to prevent and address deforestation and conduct risk-based due diligence across our supply base. However, we have identified certain supply chains that present higher risks. These will be subject to enhanced management and targeted actions as outlined in this Policy.
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Our management approach
Our approach relies on building supply chain transparency, engaging with our suppliers and collaborating with industry, technical and not-for-profit organisations to find and achieve effective and scalable solutions to ensure that natural ecosystems are preserved, and communities’ rights protected.
We are developing specific commodity roadmaps, in line with industry standards, to further define the implementation pathways towards DCF supply chains.
We will communicate our ambition, targets, and expectations to all direct suppliers and business partners covered by this Policy, and we expect them to endorse and actively support our efforts throughout this journey.
Specifically, our management approach towards avoiding natural ecosystem conversion in our critical agricultural Commodities supply chains revolves around four axes.
1. Improving transparency and traceability in supply chains
We recognise the inherent complexity of Commodity supply chains which operate across multiple tiers and geographies. To improve transparency, we expect our direct suppliers to support us with:
- Supply chain mapping and data sharing to trace our in-scope raw materials to the relevant level5 to ascertain compliance.
- Use findings to assess risks, prioritise action where most relevant, and define targeted action plans collaboratively.
2. Assessing conformity of raw materials in alignment with industry best practices
We will require evidence from in-scope suppliers that the in-scope raw materials we source are aligned with this Policy through the following means:
- Third party supply chain certification or verification with associated chain of custody (e.g. RFA SG, RSPO SG, RTRS)5.
- Traceability to an area assessed as negligible risk for deforestation and conversion.
- Traceability to a production unit assessed remotely and/or on the ground as DCF since applicable cut-off date.
- DCF management system in place in the supply chain relying on one or more or the above mechanisms.
3. Supplier engagement, remediation, and action plans
We recognise that achieving DCF supply chains is a progressive journey, with varying levels of maturity across different supply chains. Collaboration with supply chain partners is essential in this journey. As part of our due diligence process, we commit to engaging with our suppliers, developing action plans where non-conformities and improvement areas are identified, and working collectively toward the achievement of our targets.
We will continuously monitor progress and take appropriate measures to address identified cases of deforestation or conversion, including remediation when necessary. We further reserve the right to perform or commission supply chain audits to verify compliance with this Policy.
In instances of persistent non-compliance or failure to align with our requirements, we reserve the right to take stricter actions including suspension or termination of sourcing relationships with the suppliers concerned.
4. Contributing and collaborating beyond our value chain and driving change
We recognise the importance of sector-wide collaboration to eliminate deforestation and conversion of natural ecosystems and therefore we will continue to extend our efforts beyond our direct supply chains by supporting and contributing to landscape projects which support conservation, restoration and regeneration of natural habitats, as well as the livelihood and resilience of independent smallholder farmers and communities in key sourcing regions.
Ensuring compliance with applicable legislation
Givaudan supports the evolving legislative frameworks and efforts to address deforestation, such as the European Union Deforestation Regulation (EUDR). We recognise that effective public policy is essential in accelerating collective action to protect forest and non-forest ecosystems, safeguard biodiversity, and mitigate climate change.
A dedicated Compliance Management Framework has been established to ensure Givaudan’s compliance with EUDR requirements, outlined in a ‘EUDR Policy’.
Read more on our position statement on the EU Regulation on Deforestation-Free products (EUDR).
Grievance mechanisms
We provide several mechanisms and channels for raising concerns and report breaches of compliance with the principles laid out in this policy. Employees can raise their concerns in confidence with a Local Compliance Office, the Group Legal and Compliance Office or through our compliance helpline. We have a Group-wide compliance helpline which allows employees and third parties to report suspected or actual misconduct or violations of the Company’s policies on a confidential basis and without fear of retaliation. The helpline consists of a web intake and telephone reporting option. We also have a dedicated grievance email channel (global.compliance@givaudan.com) that allows a reporting person to report alleged non-compliance or other issues. All reported cases are reviewed and investigated as appropriate in accordance with applicable laws.
Governance
Responsibility for implementing our commitment to Deforestation and Conversion Free Supply Chains lies with internal management roles. Overall accountability for ensuring we uphold our DCF commitment lies with the Chief Executive Officer, supported by our Executive Committee.
This broad governance structure for biodiversity and DCF management ensures every part of the business understands their responsibility and upholds their contribution towards meeting our ambition and commitment.
This Policy may be reviewed periodically to ensure its requirements remain relevant with emerging regulations, newly identified risks, or industry best practices.
Reporting on progress
We acknowledge that transparently sharing our journey towards DCF supply chains is an important element in demonstrating progress and enabling collaboration with our partners. Our progress will be communicated publicly through:
- Givaudan’s Integrated Report – published annually.
- CDP Forests disclosure report – published annually.
- United Nations Global Compact (UNGC) Communication on Progress.
Our downloadable Policy
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Our Policy
Downloadable in English
WRI, June 2025
In line with Consumer Goods Forum Soy Measurement Ladder v4 (2015). We may also source complex soy in the form of derivatives. We are reviewing our portfolio to define our exposure and whether this form of soy is material.
Ibid
Supply chain mapping and traceability level requirements may vary by commodity. We will further detail these requirements in commodity specific roadmaps in line with available sectoral guidelines.
This can include supply chain verification and certification schemes that comply with our DCF criteria including cut-off dates, definitions and verification mechanisms. Givaudan reserves the right to enquire supporting evidence from suppliers.