GRI 413: Local communities
Explanation of the material topic and its boundary
Communities and neighbourhoods where we operate are critical to our long-term success. Our business can affect communities and these local stakeholders may in turn impact our activities. We actively develop and sustain relationships with communities and listen to community representatives to take their point of view into account before integrating their feedback into our sustainability activities.
Recognising and supporting the broader development goals of local communities is essential to our business. Maintaining a good reputation in communities where we have a manufacturing or commercial presence helps to attract the right talent and personnel to the Company. In areas where we source raw materials, we can help secure the long-term supply of those ingredients by supporting the development of local communities. Fostering good relations allows us to work together on causes that benefit the community, help to protect local ecosystems and support livelihoods.
We work with local communities on projects and causes that benefit them to support these goals.
The producers of raw materials of natural origin we rely on make an important contribution to our business. In return, we are committed to supporting them to build stable lives.
We have supported local producer communities for more than a decade through a variety of social and environmental projects. Since 2014, we have been working through a partnership with the Givaudan Foundation, a not-for-profit organisation that funds projects to help build more secure futures for communities and their environments. In these joint projects, we work with NGOs to identify local needs and then work together to implement them. In addition, the Givaudan Foundation has its own initiatives in three specific focus areas: communities at source, blindness and family nutrition. The Givaudan Foundation works closely with and relies on resources provided by Givaudan to conduct and monitor these projects. We are also involved in charitable giving.
We work with producers, suppliers and/or other organisations to support projects in education, health and nutrition as well as good practice in agriculture and production. We also help communities safeguard their environment and natural resources.
Every precaution is taken to operate safely in these communities while providing social and economic value and reducing our environmental footprint. We also believe that each and every employee has the potential to make a change for the well-being of the communities in which we work and live. The opportunity to make such contributions is available through our Green Teams which are active in the majority of our sites. Members of these teams are involved in voluntary sustainability projects in local communities as well as in internal programmes.
Operations with local community engagement, impact assessments, and development programmes
Communities at Source
Our Communities at Source initiatives encompass 18 ongoing projects in 8 countries. They touch more than 30,000 people worldwide, including immediate beneficiaries, their families and communities as well.
In addition to the community projects mentioned above, our associated local communities benefit from our charitable giving. We monitor this spend at every site and have had an annual budget allocation process for charitable giving for all our sites since 2012. This spend is controlled and consolidated by a sustainability controller. Every site manager is responsible for how the site budget is spent, and each of these managers has some freedom to allocate funding to local organisations, providing they comply with Givaudan guidelines and local laws on non-profit organisations. This spend is annually reviewed as part of our financial assurance, and information is disclosed as part of the P&L statement.
In 2019, the total spend on charitable giving for local communities was two million Swiss francs.