GRI 203: Indirect economic impacts
Explanation of the material topic and its boundary
Recognising and supporting the broader development goals of local communities where Givaudan operates and sources from, local community development, is how we approach our contribution to indirect economic impacts.
Maintaining a good reputation in communities where we have a manufacturing or commercial presence helps attract the right talent and personnel to the Company. In areas where we source raw materials, and supporting the development of local communities can help secure the long-term supply of these ingredients. Good relations allow us to work together on projects and causes that benefit the community, help to protect local ecosystems and support livelihoods, all of which translates into economic benefits for the local communities.
Communities and neighbourhoods in which we operate or source are critical to our long-term success: our business can affect communities and these local stakeholders may in turn impact our activities. These partners make an important contribution to our business and in return, we are committed to supporting them to build stable lives. We actively develop and sustain relationships with communities and listen to their representatives to take their point of view into account and integrate their feedback into our activities.
The close working relationships we establish with the very people who grow, collect and distil our raw materials are key to our continued success in securing the long-term supply of the ingredients we rely on for our flavours and fragrances. Through direct collection networks and partnerships we work together with the local producers to improve the quality and quantity of the oils and spices we need. Our primary objective is to secure supply while building trust and offering technical advice and collaboration on mutually beneficial improvements in the way we source.
Depending on the challenges identified for a particular supply chain, we develop targeted action plans in cooperation with the producers, suppliers and/or other organisations such as NGOs. We support projects in education, health and nutrition as well as good practices in agriculture and production. We also assist producing communities in safeguarding their environment and natural resources and encourage investment in sustainable development and innovation. We take every precaution to operate safely in these communities while providing social and economic value and reducing our environmental footprint.
Infrastructure investments and services supported
Today, our Sourcing for Shared Value activities cover 40 raw material categories in 29 countries. Through Sourcing at Origin programmes we work with 5,700 local suppliers. Through Communities at Source initiatives we run 18 social and environmental projects in 8 countries that touch more than 30,000 beneficiaries as well as their families and communities
Since 2014, we have announced 15 acquisitions which represent an additional CHF 1.5 billion of annualised sales. Our acquisitions are fully aligned with our 2020 strategic priorities: Naturals, Health and well-being, Active Beauty, Integrated Solutions, local and regional customers.
We inaugurated a new flavour technical and commercial centre in Casablanca, Morocco, a new flavour production facility in Pune, India, and our newest fragrance encapsulation centre in Singapore for the Asia Pacific market. We have also doubled our flavour production capacity in China with the opening of a new extension at our Nantong production facility.
We opened our Digital Factory in Paris, a project accelerator to transform our business and drive opportunities as well as a new flagship innovation centre in Kemptthal, Switzerland.