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GRI 300 Environmental

GRI 305: Emissions

UNGC Principles
7Businesses are asked to support a precautionary approach to environmental challenges
8Undertake initiatives to promote greater environmental responsibility
SDG Goal
Industry,Innovation an Infrastructure
Responsible Consuption and Prodution
Climate Action
GRI 103-1

Explanation of the material topic and its boundary

We produce scope 1, 2 and 3 emissions through direct emissions, indirect emissions related to energy use and other indirect emissions such as those in our supply chain and so affect climate change. This, in turn, directly impacts the availability of our key natural resources. Climate change causes fundamental changes in ecosystem functioning and as such, poses a significant risk to our operations. We also want to make a positive impact on the environment and society. The topic of Emissions is related to our material topics Climate Change and Product Environmental and Social Impact.

We work to improve the eco-efficiency of our production sites, with a focus on reducing greenhouse gas emissions, and this includes seeking electricity from renewable sources. We constantly assess and mitigate the risks posed by climate change and drive adaptation and remediation in the affected areas. We also involve our supply chain, from the raw material suppliers to indirect materials and service providers, in an effort to reduce GHG emissions and the impact on the ecosystem.

Making a positive impact on the environment and society is a central concern for our customers and their consumers and it is key to improving our own performance. In doing so, we must also anticipate and influence change. Our approach to responsible innovation considers the potential impact of our processes and products on the environment and also where we can have a positive impact on society. We engage with customers to develop new products and technologies that are more sustainable.

GRI 103-2, 103-3

Management approach

We are committed to reducing absolute direct and indirect (scope 1 and 2) emissions by 70% by 2030 compared to 2015 levels and aim to reduce indirect (scope 3) emissions – those produced by our entire value chain – by 20% over the same period.

Scope 1 emissions are defined as those generated by Givaudan’s production such as through the combustion of fossil fuels consumed to produce heat and steam at our facilities or to operate our vehicles. Scope 2 emissions come from the production of electricity, steam, or other sources of energy (e.g. chilled water) generated upstream by another organisation using fuels such as coal, fuel oil, natural gas, waste, and others, to do so.

Transition to a low-carbon economy

We are also committed to becoming a climate-positive business before 2050 based on scope 1, 2 and 3 emissions according to the GHG protocol. We have an interim goal of achieving climate-positive operations in terms of scope 1 and 2 emissions before 2040.

Converting our entire electricity supply to fully renewable sources by 2025 is a critical element of this approach. We are at the same time leading significant energy consumption reduction projects across operations and making improvements through investment and effort in energy saving workshops, eco-efficiency plans that cover a range of topics including a switch to renewable energy as well as targeted projects, all of which contribute to reduced emissions.

We are proud to be a member of RE100, a collaborative, global initiative organised by the Climate Group in partnership with CDP. It unites more than 150 influential businesses committed to 100% renewable electricity and is part of our strategy to fully convert our electricity supply.

We are targeting a decrease in scope 3 emissions through a joint effort with suppliers to reduce the carbon footprint of purchased goods and services and associated transport. We are members of the CDP Supply Chain programme, which will enable us and our suppliers to identify ways to do so, focusing especially on opportunities in the purchasing of raw materials, transport and packaging.

Progress scope 1 and 2 in 2019

This year, we took decisive actions to help us move towards our goals. We strengthened our targets, now aiming to reduce absolute scope 1 and 2 GHG emissions by 70% between 2015 and 2030, up from a previous target of a 30% reduction. The Science Based Targets initiative (SBTi has deemed this new target consistent with levels required to meet the goals of the Paris Agreement.

We made good progress towards these targets this year, with absolute total direct and indirect GHG emissions decreasing by 36,254 tonnes (i.e. 19%) against the baseline figure for 2015. Our scope 1 and 2 GHG emissions intensity (GHG emissions/tonne of product decreased by 35% against baseline and by 11% against 2018 figures.

We also signed the pledge “Business Ambition for 1.5°C” proposed by the United Nations to aim for net-zero value chain emissions by 2050 and have incorporated becoming climatepositive by 2050 into the Company’s newly defined purpose.

Demonstrating our industry leadership in climate action and the transition to a low-carbon economy, we once again participated in the annual Climate Change CDP questionnaire for investors as well as in the Climate Change supply chain questionnaire at the request of a number of customers. This allows us to showcase our efforts to reduce GHG emissions and also provides a basis of comparison against other companies. Our CDP score was this year an A (on a scale of A to D, with A being the highest) for GHG emissions, at the leadership level once again.

Givaudan has already been recognised as world leader in supplier engagement on climate change, earning a position on the Supplier Engagement leader board by CDP, the non-profit global environmental disclosure platform, in recognition of its actions and strategies to reduce emissions and lower climate-related risk across its supply chain. Only 3% of the 5,000 companies that participated in CDP's supply chain programme in 2018 were included on the A-list.

We also made considerable progress in terms of renewable electricity (scope 2) and are on track to meet our target of converting our entire electricity supply to fully renewable sources by 2025. We attained 75% renewable electricity in 2019, with 24 of our 44 production sites powered by 100% electricity from renewable sources.

Progress scope 3 in 2019

During 2019, scope 3 GHG emissions increased by 17.7% against the 2015 baseline figure, and decreased by 1.4% against 2018. A detailed explanation on progress per category is given below. 

Purchased goods and services
For packaging of finished products, the estimated 2019 footprint is 73,985 tonnes, a decrease of 14% compared with the 2018 footprint, showing an improvement in our packaging practices. We are assessing ways to reduce our footprint, for example by reducing the weight of our containers and using alternative packaging with more sustainable materials. 

For raw materials, the 2019 figure remained similar to the 2018 figure. Our efforts this year were focused on refining our calculation methodology, going from an input-output model to a process-based modelling approach, as described in the emission methodology section.

Overall, our ambition is to drive action through supply chain engagement. In 2019, we participated for the third year in the CDP Supply Chain Programme, asking our key suppliers to provide data on climate change through the supply chain module of the CDP’s Climate Change questionnaire. The survey asks suppliers to identify risks and opportunities associated with climate change, report their emissions and give details on the relevant management strategy including targets and actions being taken to reduce them. We chose suppliers according to a given set of criteria. All the data collected through the CDP Supply Chain programme contributes to an understanding of our supply chain. The extent of our engagement then varies depending on the level of a supplier’s maturity in terms of climate action. We seek to create partnerships with suppliers who already have experience in leading and managing climate related issues. This enables us to initiate collaborative measures or programmes to reduce our common emissions, which can then have a follow-on effect further down the supply chain. With suppliers starting their climate action journey, we work with them, providing support and guidance to help them along their way. This approach is aligned with and contributes to our ability to deliver on our science-based target for scope 3 emissions. In 2019, our supplier response rate improved to 68%, up from 54% last year. 

Capital goods
Capital goods figures increased due to the estimated emission calculation methodology. 

Fuel- and energy-related activities (not included in scope 1 or 2)
In fuel- and energy-related activities, we have made good progress due to the increase in the supply of renewable electricity.

Upstream and downstream transportation and distribution
We are assessing ways to reduce our footprint, for example through consolidation and choice of engine type.

Waste generated in operations
This figure has remained stable since last year, even with growth in production volume. Progress towards our waste target (reduction in incinerated and landfill waste) is contributing to this.

Business travel
This figure has remained stable since last year.

Employee commuting
The ratio of GHG emissions per employee fell to 1.23 tCO2e in 2019 (same as 2018) from 1.5 tCO2e in 2015. Givaudan actively encourages its employees to reduce the GHG emissions of their daily commute, supporting a range of schemes including a bike-to-work initiative at our Swiss sites, the facilitation of carpooling through our intranet platform and the provision of recharge stations to support the transition to electric cars at some sites.

2019 Integrated Annual Report, Acting for our environment, pages 58-61

Our Sustainability Approach, pages 22, 23, 48, 51

GRI 305-1, 305-2

Direct and energy indirect GHG emissions

 

GRI 305-3

Other indirect (scope 3) GHG emissions

GHG emissions (tonnes)

2015
(restated)

2018
(restated)

2019

Purchased goods and services

1,309,814

1,583,168

1,535,966

Packaging of finished products ¹, ²

80,556

86,486

73,985

Indirect materials & services (excluding packaging) ¹

143,569

167,387

135,249

Raw materials ¹

1,085,689

1,329,295

1,326,732

Capital goods ¹

48,696

82,464

107,548

Fuel and energy related activities

79,110

58,262

50,261

Upstream transportation and distribution ¹

23,196

29,523

31,296

Waste generated in operations

15,369

17,099

16,882

Business travel

10,056

12,889

12,249

Employee commuting

15,296

14,172

15,601

Downstream transportation and distribution

42,692

45,783

47,031

Outbound product to customers ¹

30,879

31,656

32,497

Outbound intercompany deliveries ¹

11,813

14,127

14,534

Total

1,544,229

1,843,359

1,816,834

1. These numbers do not include data from our production site in Volketswil, Melaka & Mittry Morry. 

2. The scope has changed this year including pallets, so the base year has been recalculated based on weight proportion over the whole packaging materials.

GRI 305-4

GHG emissions intensity

 

GRI 305-5

Reduction of GHG emissions

Target

Progress 2019

-70% absolute scope 1 + 2 GHG emissions between
2015 and 2030

-19% ¹

1. Compared to baseline year.

 
GRI-6

Emissions of ozone-depleting substances (ODS)

 

2018
(restated)

2019

CFC inventory (kg)

10,111

9,285

CFC 11 equivalent inventory (kg)

563

741

CFC loss-replacement (kg)

1,055

298

CFC 11 equivalent loss/replacement (kg)

58

37

GRI 305-7

Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions

 

2018
(restated)

2019

Nitrogen oxides – NOₓ (tonnes)¹

83

77

Sulphur dioxide – SO₂ (tonnes)

1

0

Volatile organic compounds (tonnes)

465

405

1.The quantity is calculated by multiplying the annual fuel consumption by the corresponding emission factor for fuel type.

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