Better practices, shared value
We are committed to work with suppliers who have strong business ethics, respect people and understand the need to preserve the environment. So, through our Responsible Sourcing programme, we are helping our suppliers to achieve high standards in these areas. Together, we are collaborating to generate value to be shared by our suppliers, customers and all involved in the supply of our key raw materials.
We began delivering on our responsible sourcing commitments in 2012 with audits of our main direct raw material suppliers against common industry standards. Recognising the need for more transparency, we decided to extend the approach to assess entire supply chains for key raw materials with a natural origin. This required a clear articulation of Givaudan’s definition of ‘responsible sourcing’.
As always, partnership lies at the heart of our approach and is the key to developing shared success. Therefore, we consulted our most important customers, NGOs and internal stakeholders, to define a set of standards and requirements in health and safety, social, environmental and business integrity practices. These form the basis of our Responsible Sourcing Policy, which we published in 2016.
The policy is the first of its kind in the flavour and fragrances industry and with its publication Givaudan embarked upon a major Responsible Sourcing programme that takes the following approach:
Main direct supplier audits
We continue to work with our main direct suppliers of raw materials to get their sites audited against the SMETA or an equivalent protocol that covers the requirements of our policy. Givaudan’s target is to ensure that all audited suppliers are compliant by 2020, which means they have closed all non-conformities identified during the audit.
Key raw material supply chain assessments
Meanwhile, we are mapping the supply chains of key raw materials of natural origin to understand how they are organised and to collect information on the role, importance and location of intermediate suppliers, right up to the farm level. The next step is to check the practices in each supply chain against our Responsible Sourcing Policy. Where we find risks or gaps we ensure the relevant suppliers have improvement plans in place. Our target is to ensure that 90% of our raw materials volume of natural origin is responsibly sourced by 2020. We aim to address the remaining volume by 2030.
Givaudan considers as responsibly sourced all raw materials of natural origin as those for which no gaps have been identified during the assessment of their supply chains, or where appropriate improvement plans are in place in cases where gaps have been found.
We recognise there is a long journey ahead, given the large amount and variety of ingredients we source and the complex nature of our supply chains. But we view the road to responsible sourcing as a process of continuous improvement. Where we can work with our suppliers to help them switch to greener methods of production, to make life safer for their employees and improve fairness and social responsibility, we will always try to do so. As such, our Responsible Sourcing programme represents an opportunity to transform our industry, to promote the creation of new value that will be shared by our customers, suppliers and all who participate in producing our raw materials.