engage your senses

A five-pillar strategy supports all our sustainability efforts

Operating a sustainable business model is central to our corporate vision. This means meeting the needs of the planet, including the people living on it, while running a viable, profitable business.

To work towards meeting these needs, we have developed an overarching sustainability vision across five ambitious strategic pillars, representing all aspects of our business. Based on this framework, we have long-term aspirations and strategies for our five pillars. Our ultimate vision includes reaching a point where our business operates with zero carbon, zero waste and zero incidents.

5
4
1
Procurement
Employees
Innovation and development
Operations
Customers and markets

 

Procurement

Our vision – We source materials in ways that preserve our environment, stimulate the development and well-being of communities and safeguard the efficient use of precious resources.

We are amongst the world’s largest purchasers of raw materials in the fragrance and flavour industries and recognise that we have an ethical and commercial responsibility in the supply chains in which we operate. Using over 10,000 different ingredients in our fragrance and flavour products, from more than 100 countries, it is critical that we have a deep understanding of our raw materials supply chains. It is also fundamental that we identify, and mitigate, potential risks to their continued and sustainable supply.

Ultimate aspirations

  • Source materials that can be sustained by nature.
  • Provenance and footprint of raw materials are known.
  • Suppliers selected and audited on sustainability performance.
  • Offer support to suppliers.
  • Committed to preserving biodiversity and culture.

Commitments

  • Expanding our responsible sourcing initiatives ensures security of supply.
  • Working with our suppliers on sustainability throughout our value chains contributes to our customers increasing supply chain requirements.
  • Conducting regular reviews of our portfolio and implementing improvements through our ethical sourcing initiatives.
  • Gather information on the origin of our ingredients to contribute to regulatory requirements, food safety and issue management.

Our KPIs and progress in 2016

Communicate with all suppliers about procurement requirements related to responsible sourcing

The newly published Responsible Sourcing Policy was sent to a selection of more than 300 suppliers engaged in our responsible sourcing processes. At the end of 2016, more than 50% of the recipients had acknowledged the policy.

Reach 100% of audit compliance for our direct suppliers by 2020

In 2016, we continued working on having our top suppliers registered with Sedex. In total, 307 key raw material suppliers are now registered with Sedex. These suppliers represent over 70% of our raw material spend. We worked to ensure that audited suppliers had closed all open non-conformities. At the end of 2016, our compliance rate was 52%.

Assess raw material supply chains from our direct suppliers to primary producers

We replaced the Global Vendor Expectations document with our new Responsible Sourcing Policy, which defines the requirements not only for our direct suppliers but also for all intermediary suppliers down to the farm level. We started the assessment of 15 raw material families and performed our first field visit. This work will be expanded in the coming years.

Continue to develop and expand Sourcing at Origin initiatives to improve the long-term supply security of strategic natural ingredients

In September 2016, Givaudan inaugurated a plant for processing natural ingredients, Natural Extracts Madagascar (NATEMA), in Madagascar. NATEMA will process clove leaf oil from our collection network into derivatives that will be used in our flavour and fragrance creations.

Continue to identify and support communities from which we source key natural raw materials through social and environmental projects

Our project pipeline has continuously evolved and expanded since 2008. For more information please read our 2016 Sustainability Report.

Other key achievements

Givaudan published a position statement on palm oil in which we highlight our ambition to eliminate deforestation from our supply chain and create positive difference for workers, farmers and local communities.

Givaudan is committed to source its palm oil, palm kernel oil and their derivatives in a way that is traceable to known certified sources.

In February 2016, we published a position statement regarding biodiversity and the Nagoya Protocol. Givaudan supports the terms of the Convention of Biological Diversity, being the conservation of biological diversity, the sustainable use of the components of biological diversity and the fair and equitable sharing of the benefits arising out of the utilisation of genetic resources.

 

Employees

Our vision – We attract, develop and retain, talented, creative professionals who feel passionate and proud of the work they do in our company and who are empowered to contribute to a sustainable society.

As the leading employer in our industry, with a workforce of more than 9,000 employees, providing our colleagues a safe and healthy working environment, where people can be given the opportunity to apply their talent and succeed and grow in their roles, is important to us.

Ultimate aspirations

  • An attractive place to work for everyone.
  • Healthy work-life balance for all employees.
  • A representative workforce.
  • Educated and empowered to contribute to a sustainable society.
  • Community engagement.
  • Responsible, transparent and accountable in everything we do.

Commitments

  • Engage employees in sustainability thinking and practices.
  • Reduce incidents by strengthening workplace environment, safety behaviour and awareness.
  • Implement local Green Teams to take local ownership of the Sustainability programme and support local sustainability opportunities.
  • Embrace diversity throughout our organisation and create a diverse and inclusive workforce.
  • Work together with our local communities on projects and causes that benefit the communities where we work.

Our KPIs and progress in 2016

Continued rollout of the Leadership Senses programme courses ‘Begin’ and ‘Evolve’. New launch of the last two levels: ‘Grow’ and ‘Enhance’

In total, approximately 180 employees attended the Leadership Senses courses in 2016..

Investing in Green Team network and collaboration

The 2016 Executive Committee Green Team Awards were distributed in each of the three award categories:
– manufacturing site: Cycling for charity
– commercial site: Project Poshan
– eco-efficiency project: Green Chemistry

For more information please read our 2016 Sustainability Report.

Increase the representation of women in our senior leadership positions

The percentage of women in Givaudan’s senior leadership positions increased to 22.7% in 2016, an improvement on the previous year.

Continue the effective practices we have in place to foster and encourage diversity in our teams and ways of working across the world

In 2016, we appointed a Talent&Diversity Programme Manager, responsible for developing processes and driving different global, regional and functional initiatives around talent management and diversity. The recommendation for the Givaudan approach to diversity and inclusion will be finalised in Q1 2017.

Lost time injury (LTI) rate below 0.1 by 2020

Our LTI rate is reduced by 65% against our 2009 baseline. It has decreased by 14% since 2015.

All populations in scope of annual performance and development discussions by end 2016

At the end of 2016, 7,924 employees used our ‘Engage’ platform for their annual performance and development plans.

Build partnerships with non-profit organisations and work on charitable themes: blindness, family nutrition, supporting local communities

We provided continued support for charitable commitments. For more information please read our 2016 Sustainability Report.

Other key achievements

In September 2016, we ran our second global Employee Engagement Survey. There was an 80% response rate, which meant CHF 86,700 was raised for the Givaudan Foundation.

Feedback from the survey confirmed that:

  • our strengths from the 2013 survey continued as strengths in 2016. We will continue to build on our strengths within the Engagement, Strategic Alignment, Continuous Improvement and Working Environment categories, which remain strong and are well above global high performing benchmarks.
  • we have made strong improvements in each of the three priority areas identified in 2013: Collaboration, Career and Inclusiveness. This includes an improvement in the inclusiveness category of 4% compared to the 2013 survey.

 

Innovation and development

Our vision – Givaudan leads in creating consumer-preferred flavours and fragrances that are designed and developed in line with sustainability principles in order to satisfy current and future needs.

With thousands of flavours and fragrances being developed at Givaudan each year, it is critical to our long-term success that we have sustainable and efficient research and creation processes in place.

Ultimate aspirations

  • 100% sustainable by design.
  • Smart sustainable creation.
  • Number 1 partner on delivering sustainable solutions.
  • Innovation focuses on engaging the senses to contribute to health, hygiene and wellness for a crowded, equitable planet.

Commitments

  • Continue to supply products, which are safe for people and the environment.
  • Ensure Givaudan products are safe for people and the environment when used as intended.
  • Full regulatory compliance of all products.
  • Ensure our products are not persistent in the environment after their use.
  • Reduce animal testing and develop alternative test methods.
  • Create superior products in a sustainable way.
  • Promote health and wellness through our products.
  • Do more with less, promoting innovative design based on concentrated quality and compacted fragrances.

Our KPIs and progress in 2016

Flavour Division and Fragrance Division compliance with European REACH registrations as they become applicable in 2018

We are working to ensure all ingredients within our scope of REACH are registered by the deadline of 2018. Our internal programme covers all our manufactured ingredients and we have a dedicated cross-functional team in place to ensure suppliers have registered ingredients we purchase. For purchased ingredients considered high risk we conduct registration ourselves.

KeratinoSens® to become a globally recognised standard in-vitro test for assessing skin sensitisation, with validation from the Organisation for Economic Co-operation and Development (OECD)

After the OECD validated and adopted our KeratinoSens® test method in February 2015, the methodology continued to be rolled out, and is now used by more than 40 laboratories globally. A further review has been published in ATLA, a leading journal in alternatives to animal testing. In 2016 the ECHA (European Chemicals Agency) released new guidance on skin sensitisation testing, placing nonanimal methods including KeratinoSens® as first choice options, and allowing animal testing only in specific cases.

Other key achievements

A new captive, Nympheal™, was launched in 2016. Nympheal™ is an olfactive replacer for Lilial and an example of green chemistry in action.

Using green chemistry principles, we demonstrated continued progress with Process Mass Intensity (E-factor reduction) across process development.

Givaudan joined the EU ROBOX Consortium Programme which aims to identify and engineer robust enzymes and demonstrate their industrial use, which will lead to new green chemical processes.

The acquisition of Induchem in 2015 has reinforced Givaudan’s capabilities in white biotechnology, specifically in biocatalysis.

The Givaudan Ecotoxicology Laboratory in Vernier commissioned a GC-MS (Gas Chromatography coupled with Mass Spectroscopy) in 2016. This will enable metabolite identification and enhance our understanding of biodegradability pathways.

Using our green technology expertise, Neurophroline™ won gold in the active ingredients category of the in-cosmetics® Innovation Zone awards in Paris in April 2016.

Givaudan has implemented an in vitro test to replace acute toxicity tests for fish and applied it for the first time to fragrance chemicals. Good predictivity was achieved and was presented at the 2016 SETAC (Society for Environmental Toxicology and Chemistry) North America meeting in November 2016.

Our Flavour Division celebrated 10 years of TasteTrek® Citrus. Since the first trek at University of California, Riverside (UCR) in 2006, dozens of treks have been run with UCR, the Sylvio Moreira Citrus Centre in São Paolo, Brazil, and the Oscar Tintori collection in Tuscany, Italy; as well as in Argentina, China, India and Japan. The Company donated USD 1 million to establish the Givaudan Citrus Variety Collection Endowed Chair to support and maintain UCR’s Citrus Variety Collection, helping to preserve biodiversity for generations to come.

 

Operations

Our vision – We continuously drive operational excellence without compromising the environment, the health and well-being of our employees, or the communities in which we operate.

Ultimate aspirations

Incidents: through our 'Zero is possible' behavioural-based safety awareness programme, our aim is to foster an even stronger culture in which every employee is responsible for their own safety and for the safety of the people around them.

Carbon: our focus is on reducing carbon emissions as far as possible. We are determined to achieve year-on-year improvements, with an end goal of zero carbon emissions.

Waste: our philosophy encourages the redesign of resource life cycles so that waste generation is minimised, with any unavoidable waste products being reused or recycled. Our end goal is to achieve zero waste.

Water stewardship: achievable through more efficient water usage and also looking at our water and waste water from a management overview perspective.

Regarded as a good neighbour: we believe in actively listening to the needs and concerns of our neighbours in all communities in which we operate, while designing our processes to minimise noise and odour emissions.

Most efficient product packaging and distribution: we are working with our purchasing and logistics departments to ensure that our packaging and distribution is becoming as efficient as possible.

Commitments

  • Improve eco-efficiency of factory manufacturing sites with a focus on greenhouse gas emissions, waste and water and reduce our overall footprint against a 2009 baseline focusing on eco-efficiency for energy, carbon emissions, incinerated and land-filled waste and municipal and groundwater.
  • Sustainable logistics offers opportunities to improve the efficiency through reduced fuel usage and therefore lower transport costs.

Our KPIs and progress in 2016

Energy consumption

4% reduction, per tonne of product, year on year on average

– 0.3% reduction in energy consumption (baseline 2015)

Water use

15% reduction, per tonne of product, by 2020 (for municipal and groundwater) (baseline 2009)

– 13.3% reduction in municipal and groundwater use

Direct and indirect CO2 emissions

stabilise our absolute carbon footprint

– 1.75% reduction in direct and indirect CO2 emissions (baseline 2015)

Total weight of incinerated and land-filled waste by type and disposal

4% reduction, per tonne of product, year on year on average

– Our total weight of incinerated and land-filled waste increased by 2.6% (baseline 2015)

100% renewable electricity by 2025

48.4% of all electricity purchased in 2016 was produced from renewable sources

Our greenhouse gas emission reduction targets that Givaudan will report against starting from 2018

  • Givaudan commits to reduce absolute Scope 1 and 2 GHG emissions by 30% between 2015 and 2030
  • Givaudan also has a goal to reduce Scope 3 GHG emissions by 20% over the same time period

 

Customers and markets

Our vision – We actively engage with our customers to ensure that our products meet the demand for the health and well-being of people and preserve our planet. We do this by encouraging our business partners to support our goals throughout the complete lifecycle of their products.

An open and committed engagement with our customers on common goals regarding the health and well-being of people and planet is the only way we will successfully progress in the future on our sustainability journey.

Ultimate aspirations

  • No negative impact in customers' products throughout the sustainability life cycle.
  • Customers with a common vision.
  • Socially responsible products and services.
  • Informed consumers.

Commitments

  • Foster customer partnerships to share responsibility through product lifecycle.
  • Engage with customers to develop new technologies for healthier and sustainable products.

Our KPIs and progress in 2016

Establish joint initiatives to further progress towards Givaudan sustainability targets and those of our partners

Givaudan became a member of the World Business Council on Sustainable Development.

We are a recognised member of the American Cleaning Institute’s sustainability programme in North America.

Our partnership with the Natural Resource Stewardship Circle (NRSC) focuses on initiatives around vetiver, ylang ylang, palm oil and styrax.

Givaudan partnered with TFT (The Forest Trust) to develop our Responsible Sourcing Policy and supply chain assessment mechanisms.

We support an IFRA-IOFI initiative to set up an industry sustainable development charter.

As an active member of AIM-PROGRESS, Givaudan is part of a dedicated working group on the updated SMETA protocol, which is expected in early 2017. In October 2016, Givaudan attended an AIM-PROGRESS meeting and supplier workshop in Bangkok to promote responsible sourcing.

All Givaudan manufacturing sites to be SMETA compliant

At the end of 2016, 34 of our production sites were SMETA compliant and 35 registered on SEDEX.

Other key achievements

At the corporate level, we again achieved gold status for EcoVadis online assessment, placing us in the top 2% of EcoVadis suppliers.

Givaudan participated in an expert panel at the RSPO European meeting in Milan.

Givaudan’s position statement on Biodiversity and Nagoya was presented at an NRSC meeting.

We maintained our CSPO Mass Balance certification and segregated ingredients certification for palm-derived ingredients in European Flavours sites.

Our European Flavours manufacturing sites are all RSPO Mass Balance supply chain certified.

Our Naarden manufacturing site still holds the UTZ coffee certification.