Key impacts, risks and opportunities
Global megatrends express societal shifts and rapidly changing consumer behaviours. Overall, we are seeing a growing consumer base living longer and more environmentally responsible lives in an increasingly interconnected world.
The impacts on our business are numerous. Having higher levels of disposable income leads people to spend more on processed and ready-made foods as well as personal care and household products. Increased demand for transparency means a sharper focus on organic, natural ingredients and flavours as well as natural and sustainably sourced raw materials. More interconnectivity and faster exchange of information leads to higher consumer power and to a demand for new products, quicker. Givaudan is embracing these global shifts as opportunities to ensure resilience and our sustainable business model is creating new value.
Risk taking is indeed core to our innovation capacity, our entrepreneurial success and ultimately to sustained value creation – managing it is therefore an integral part of Givaudan’s business.
Enterprise Risk Management (ERM) is how we assess, treat and monitor the effects of uncertainty. We operate a structured system of identifying, assessing and deciding on responses to mitigate key risks. Overall, our principle-based approach is pragmatic and tailored to the Company and aims at value creation and protection. It is an integral part of processes and decision making, addressing uncertainty explicitly and remaining structured, dynamic, iterative and responsive to change. It is based on the best available information
Our ERM is structured to safeguard Company value and assets and to protect shareholder interests, to allow us to exploit strategic opportunities to further create Company value and also to improve awareness amongst all key internal stakeholders of the nature and magnitude of risks. It helps us to provide risk-based management information for effective decision making and to improve compliance with good
corporate governance guidelines and practices as well as applicable laws and regulations.