GRI Report 2013 GRI index Profile disclosures Performance Assurance

GRI 3.1 Content Index

Reference UN Reference UN Description Status Page Global Compact Description Status Page Global Compact Part I: Profile disclosures Part II: Disclosures on Management Approach 1 Strategy and analysis 1,2,3,4,5,6,7,8,9,10 EC Economic 21 1.1 Statement from the CEO 4 EN Environmental 25 7,8,9 1.2 Key impacts, risks, and opportunities 6 LA Labour practices and decent work 35 3,6 2 Organisational profile HR Human Rights 41 1,2,4,5,6 2.1 Name of the organisation 8 SO Society 46 1,2,10 2.2 Primary brands, products and services 8 PR Product responsibility 51 2.3 Operational structure 8 Part III: Performance indicators 2.4 Location of headquarters 8 Economic 2.5 Number of countries where the organisation operates 8 EC1 Direct economic value generated and distributed 21 2.6 Nature of ownership and legal form 8 EC3 Coverage of the organisation’s defined benefit plan 21 2.7 Markets served 8 EC6 Locally-based suppliers 22 1,2 2.8 Scale of the reporting organisation 8 EC9 Indirect economic impacts 23 9 2.9 Significant changes during the reporting period 8 Environmental 2.10 Awards received in the reporting period 9 8 EN3 Direct energy consumption 26 7,8,9 3 Report parameters EN4 Indirect energy consumption 26 7,8,9 3.1 Reporting period 9 EN5 Energy saved 27 7,8,9 3.2 Date of most recent previous report 9 EN6 Initiatives to provide energy-efficient products 27 7,8,9 3.3 Reporting cycle 9 EN7 Initiatives to reduce indirect energy consumption 27 7,8,9 3.4 Contact point 9 EN8 Total water withdrawal 28 7,8,9 3.5 Process for defining report content 9 EN13 Habitats protected or restored 29 7,8,9 3.6 Report scope and boundary 11 EN16 Greenhouse gas emissions 30 7,8,9 3.7 Specific limitations on the scope or boundary of the report 11 EN17 Other indirect greenhouse gas emissions 30 7,8,9 3.8 Joint ventures, subsidiaries, leased facilities, outsourced operations 11 EN18 Initiatives to reduce greenhouse gas emissions 30 7,8,9 3.9 Data measurement techniques and the bases of calculations 11 EN19 Emissions of ozone-depleting substances 31 7,8,9 3.10 Changes to the company compared to previous report 11 EN20 NOx, SOx, and other significant air emissions 31 7,8,9 3.11 Changes to the information provided in earlier reports 11 EN21 Total water discharge 31 7,8,9 3.12 Standard Disclosures Table 11 EN22 Total weight of waste by type and disposal method 31 7,8,9 3.13 External assurance for the report 11 EN26 Initiatives to mitigate environmental impacts of products and services 31 7,8,9 4 Corporate Governance EN29 Environmental impacts of transporting products 33 7,8,9 4.1 Governance structure of the organisation 11 Labour Practices 4.2 Independence of the Chairman of the Board 13 10 LA1 Total workforce 35 6 4.3 Members of the Board 13 10 LA2 New employee hires and employee turnover 36 6 4.4 Shareholders and employees recommendations 13 3 LA4 Employees covered by collective bargaining agreements 36 3 4.5 Compensation Policy 13 10 LA7 Rates of injury, occupational diseases, lost days, and absenteeism 37 4.6 Avoidance of conflicts of interest 13 10 LA12 Employees receiving regular performance and career development reviews 38 6 4.7 Expertise of the members of the Board and its committees 13 LA13 Composition of governance bodies and breakdown of employees 39 6 4.8 Mission statements and corporate codes 14 1,2,3,4,5,6,7,8,9,10 Human Rights 4.9 Identification and management of performance, risks and opportunities, and HR2 Screening of suppliers, on human rights 41 1,2,4,5,10 compliance with agreed standards, codes of conduct, and principles 14 1,2,3 HR6 Measures taken to contribute to the abolition of child labour 42 1,2,4,5 4.10 Assessment of the Executive Committee 14 Society 4.11 Implementation of the precautionary principle 14 SO1 Programmes on local community engagement 47 1,4,5,6,8,9 4.12 Support to external initiatives 15 9 SO3 Percentage of employees trained in organisation’s anti-corruption policies 47 10 4.13 Memberships in associations/interest group 16 9 SO5 Public policy positions and participation in public policy development 48 7,8 4.14 Engagement of stakeholder groups 17 1,2 SO6 Total value contributions to political parties and related institutions 48 10 4.15 Selection of stakeholders 18 1,2 Product Responsibility 4.16 Approaches to stakeholder dialogue 18 1,2 PR1 Health and safety impacts of products 52 7,9 4.17 Position on stakeholder concerns 19 PR3 Information on products and services 52 7,9 PR6 Programmes for adherence to laws, standards, related to marketing communications 53 Fully covered Partially covered 02 GRI index Profile disclosures Performance Assurance

Profile disclosures In this section:

04 Strategy and analysis This section is intended to provide a 08 About Givaudan 09 About this report high-level view of Givaudan’s strategy 11 About our governance and governance related to sustainability. 14 Our commitments It also provides context for other sections of this report.

Source: GRI 3.1 Sustainability reporting guidelines – Part 2 – Profile – page 20

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Additionally, our employee engagement Strategy and analysis Our promotion to ‘A’ band, CDP’s latest surveys show that people are proud to Climate Performance Leadership Index OUR KPIs work for Givaudan and recognise that the 1.1 Statement from the most senior recognition, is testament to our • Energy consumption: 20% Company is serious about sustainability. It’s decision-maker of the organisation on-going eco-efficiency programme. reduction, per tonne of product, part of the Givaudan culture, and that also Secondly, our success with Sedex registrations by 2020 impacts positively on our performance. – 248 suppliers and counting – is a major • Water use: 15% reduction, per Sustainability Report 2013 achievement in driving Responsible Sourcing To what degree are partnerships playing tonne of product, by 2020 (for Leadership Q&A practices as far along the supply chain as an increasing role in our efforts to municipal and groundwater) possible. Finally, as a relatively new member be sustainable? In terms of our overall performance, are we of AIM-PROGRESS, the fact that one of our • Direct and indirect CO2 emissions: where we want to be in 2013? JF: There are really two aspects to this. staff has been asked to become a member 25% reduction, per tonne of As vocal members of associations such as Gilles Andrier: I’m very pleased with of the Leadership Team of this eminent product, by 2020 (indirect relates the Natural Resources Stewardship Circle our progress and current position. organisation is truly something to be proud of. to purchased energy and not (NRSC), AIM-PROGRESS and the United Our sustainability approach is integral to the There are myriad achievements this year, but energy used by others, i.e. our raw Nations Global Compact (UNGC), where Company’s global business strategy, and these three are very noteworthy. materials suppliers) we abide by its ten sustainability principles, in some areas we’re ahead of where we • Total weight of incinerated and To what degree has our sustainability we are partnering within movements that expected to be, especially in relation to our land-filled waste by type and progress in 2013 impacted on our make a real difference. However, we are also ambitious 2020 targets. For example, we’ve disposal: 15% reduction, per tonne commercial objectives? partnering commercially with our customers really developed our approach to Responsible of product, by 2020 and suppliers for mutual benefit. It’s clear that Sourcing over the last few years. We’ve also GA: Sustainability impacts our commercial by aligning efforts we can achieve so much made significant progress in terms of our performance in a number of ways. There is PROGRESS IN 2013 more than by acting alone. eco-efficiency targets, which are recorded a direct relationship between Sustainable Per tonne of product against 2009 baseline: below. I’d say the overall picture is very Innovation and new revenue opportunities. How do our efforts in 2013 set us up positive but there is room for improvement These result from increasing demand for 2014? • 13.4% reduction in as we continue on our journey. For example, for products with Health and Wellness energy consumption GA: We want our employees and other I would like to see further progress in benefits, positive social impacts or improved stakeholders to recognise Givaudan as some operational areas and in embedding environmental performance. Across the • 6.4% reduction in municipal and leaders in sustainability, so everything we sustainability requirements when designing organisation, with progress on our eco- groundwater use do has to be concrete. That means looking new capital projects. efficiency targets, we are avoiding additional • 19.9% reduction in direct and critically at our end-to-end processes and operating costs in our manufacturing indirect CO emissions What would you say are the biggest communicating simply and clearly on what 2 operations. These are tangibles, where achievements in 2013? we’re doing, and not being afraid to say we’re driving revenue and reducing energy, • Our total weight of incinerated and how we could be better in certain areas. Joe Fabbri: Along with our own internal waste and water consumption. Through our land-filled waste decreased by 2013 has seen us make significant strides progress, a number of sustainability efforts to secure the supply chain over the 14.4% as a sustainable business and employer, achievements have been translated through long term, we can also help to ensure quality so this allows us to consolidate and build partnering with external entities such as the and availability, which is a challenge in a on these successes in 2014 with ever Carbon Disclosure Project (CDP), Sedex and volatile environment. greater confidence, which will be reflected AIM-PROGRESS. in our employees’ ability to act sustainably, with pride.

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How would you evaluate our Green Teams’ – Responsible Sourcing and Sustainable efforts this year? Innovation. We believe this approach will Our commitment to UNGC principles appeal to customers, suppliers and our own JF: I’m excited to see that more and more people. Presenting the two documents as a sites are participating in the Green Team ‘reporting suite’ gives stakeholders the choice Our Sustainability Report also acts as Awards. We’re continuing to build a positive to access content in a way that really meets our UNGC annual Communication on momentum, and have achieved many great their needs. Progress (COP). This is the third year things locally. Over time, I think we’ve seen a running in which our Sustainability Report maturing of our Green Teams’ approach, from Why have we chosen to focus on Sustainable has met the GRI B+ Application Level purely behavioural responsibilities, such as Innovation and Responsible Sourcing in the and has been independently assured by encouraging our staff to conserve energy in Sustainability Report? Ernst & Young. the workplace, to a broader array of initiatives JF: Sourcing and innovation are two of with a socially responsible dimension, We would like to express our continued the five fundamental themes that make like donation, volunteering and building a strong support for the UNGC. We will up our five-pillar sustainability strategy. vegetable garden for the children’s shelter in continue working to make the UNGC Innovation is critical for Givaudan’s on-going Soweto or the development of a unique Braille and its principles part of the strategy, growth and success and the optimal way to Trail in Mount Olive. Activities demonstrate culture and day-to-day operations of support the business with innovation was to creativity, but more importantly show how a our Company and do the same in the make it part of the Sustainability Programme. mindset of sustainability is now widespread areas covered by our sphere of influence. Sourcing is clearly one of the most significant across the Company. Building on this, we’re We support public accountability and areas of interest that our stakeholders talk now developing a portfolio of areas that the transparency, and therefore commit to to us about – especially our customers. Green Teams can consider in order to further reporting on progress annually according We need to protect how we source our drive value for the business. This will hopefully to the UNGC COP policy. ingredients to ensure a secure supply from provide more structure and guidance on how vibrant, healthy communities of producers. to maximise their efforts. By focusing on these two issues we hope to Why has Givaudan decided to separate the demonstrate that Givaudan leads the industry GRI Report from the Sustainability Report and is at the forefront of the debate on how in 2013? to overcome some of the obstacles facing the fragrances and flavour sector. GA: We’ve developed our reporting approach because we want to provide different stakeholders with the information they are most interested in, and in a format that suits their needs. The GRI Report details our performance and management approach, which will be of interest to socially responsible investors and analysts – especially since the report has been independently assured by Ernst & Young. The Sustainability Report presents our activities in an engaging editorial style, focusing on two key issues

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1.2 Description of key impacts, Procurement Employees risks and opportunities Our vision We source materials in ways that preserve our environment, stimulate the We attract, develop and retain talented, creative professionals who feel As a global company, we face many evolving development and well-being of communities and safeguard the efficient use passionate and proud of the work done in our Company and who are of precious resources. empowered to contribute to a sustainable society. sustainability challenges as well as numerous opportunities that may affect our business. Context • CHF 2,400 million annual procurement spend • 9,331 full-time employees These challenges and opportunities are • More than 10,000 raw materials purchased annually • 82 local communities formally captured in our materiality matrix • More than 2,000 raw material suppliers • More than 14,000 indirect materials and service suppliers (see 3.5). Consequently, our Sustainability Programme is based on a five-pillar strategy, Impacts • Global population is predicted to be 9.6 billion in 2050 in a medium-growth • Every day, 6,300 people die as a result of occupational accidents 1 which extends across the full life cycle of our and trends scenario. This growth will place intense pressures on ecosystems and the or work-related diseases – more than 2.3 million deaths per year. business including Procurement, Employees, supply of natural resources 317 million accidents occur ‘on the job’ annually. Many of these result in • As developing countries industrialise rapidly, global demand for material extended absences from work. The human cost of this daily adversity Innovation & Development, Operations resources is increasing. It includes increased trade restrictions, price is vast and the economic burden of poor occupational safety and and Customers & Markets. These pillars volatility and intense global competition for a range of material resources health practices is estimated at 4% of global Gross Domestic Product • Approximately 24% of the world’s mammals, 12% of the world’s bird each year4 provide us with an overarching framework species and 3% of flowering plants are regarded as globally threatened2 • Companies can be competitive only if they develop, attract and retain to drive sustainability principles right across • In 2010, more than half of the world’s population lived in cities and by 2050, the best talent, both male and female. However, globally, gender gaps and beyond our organisation. Each pillar it is expected that 70% of people on the planet will be living in urban areas. in the economic indicators of unemployment and employment show Moreover, it is estimated that nearly 90% of this addition to the world’s clear trends to the disadvantage of women (the global gender gap in represents one of the five crucial areas of urban population is taking place in developing countries3 the employment-to-population ratio remains high at nearly 25 points)5 our business. For each area, our combined teams have developed a challenging set of Our commitments • Expanding our responsible sourcing initiatives ensures security of supply • Engage employees in sustainability thinking and practices ultimate aspirations, which clearly show our • Working with our suppliers on sustainability throughout our value chains • Reduce incidents by strengthening workplace environment, safety contributes to our customers’ increasing supply chain requirements behaviour and awareness desired end goal. The journey to get there will • Conducting regular reviews of our portfolio and implementing • Implement local Green Teams to take local ownership of the take a considerable amount of time but our improvements through our ethical sourcing initiatives Sustainability Programme and support local sustainability opportunities commitment is a long-term one. • Gather information on the origin of our ingredients to contribute to • Embrace diversity throughout our organisation and create a diverse regulatory requirements, food safety and issue management and inclusive workforce • Work together with our local communities on projects and causes that benefit the communities where we work

Our KPIs • Communicate with all suppliers about procurement requirements • Conduct ‘Zero is Possible’ behavioural safety programme relating to social responsibility SafeStart™, part of ‘Zero is Possible’ programme, rolled out to two and progress Vendor Expectation document revised to reflect UNGC commitment and additional sites, 37 sites now trained in 2013 include the mention of high ethical and social standards regarding Human • 100% sites with Green Teams Rights, Labour Standards and Anti-corruption Further embedded and supported Green Teams • Conduct audits with 200 of our top 400 suppliers by 2015; 200 of • Lost Time Injury (LTI) rate below 0.1 by 2020 our top 400 suppliers to have joined the Sedex programme by 2015 Our LTI rate reduced by 57% against our 2009 baseline 100 suppliers have been audited, and 248 suppliers are now on Sedex • Increase the representation of females in our senior • Identify and develop additional ethical sourcing initiatives leadership positions Farming partnership with GaiaOne and Kebun Rimau SDN BHD to develop The current percentage of female employees in Givaudan’s senior sustainable patchouli plantation in Malaysia leadership positions has increased to 17.9% in 2013, an improvement • Develop third-party certification projects for raw materials on last year’s performance Continued support to a cooperative of three villages and a local distiller to • Build partnerships with non-profit organisations and work on grow and distil certified ESR vetiver charitable themes: Blindness, Family Nutrition and Supporting • Build 14 schools in Madagascar by 2014 Local Communities 12 schools built in Madagascar since our programme began Continued support for charitable commitments

Other key achievements: • Evolution of partnership with AIM-PROGRESS from member in 2012 to 1 UN – Department of Economic and Social Affairs – World Population Prospects: workstream leader in 2013 to Leadership Team member as of January 2014 The 2012 Revision – http://esa.un.org/unpd/wpp/Documentation/pdf/ WPP2012_%20KEY%20FINDINGS.pdf • Continued to source certified sustainable Palm (Kernel) Oil and derivatives 2 Convention of Biological Diversity Outlook – http://www.cbd.int/doc/ • Creation of a dedicated Origination team publications/gbo/gbo-ch-01-en.pdf 3 UN – State of the world’s cities 2012/2013 – http://sustainabledevelopment. un.org/content/documents/745habitat.pdf 4 ILO: Safety and health at work – http://www.ilo.org/global/topics/safety-and- health-at-work/lang--en/index.htm 5 ILO: Global Employment Trends for Women 2012 – http://www.ilo.org/global/ about-the-ilo/newsroom/news/WCMS_195445/lang--en/index.htm

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Innovation & Development Operations Customers & Markets Our vision Givaudan leads in creating consumer-preferred flavours and fragrances We continuously drive operational excellence without compromising We actively engage with our customers to ensure that all of our that are designed and developed in line with sustainability principles in the environment or the health and well-being of our employees and the products promote the health and well-being of people and preserve our order to satisfy current and future needs. communities in which we operate. planet. We do this by encouraging our business partners to support our goals throughout the complete lifecycle of their products.

Context • CHF 406 million invested in R&D in 2013, 9.3% of revenue • 33 production sites • We have more than 6,000 customers • More than 386,000 tonnes of product made in 2013 • We receive in excess of 35,000 briefs each year from customers • 102,000 inbound deliveries • 211,900 outbound deliveries

Impacts • The market for Health and Wellness products is increasing due • Climate change remains a global megaforce that directly impacts • Many organisations are working together in groups and to growing consumer and government awareness of the obesity others. Released in September 2013, the report by the UN’s climate forums to make a positive impact on sustainability aspects like and trends epidemic and other nutrition-related diseases such as diabetes panel details the physical evidence behind climate change1. The two AIM-PROGRESS, NRSC and The Sustainability Consortium. • Climate change and resource depletion demand a proactive key headlines were: For example, AIM-PROGRESS is a forum of consumer goods business response –– Scientists are 95% certain that humans are responsible for the manufacturers and suppliers assembled to enable and promote • Introduction of bans for the use of animal testing (e.g. ‘unprecedented’ warming experienced by the Earth over the last responsible sourcing practices and sustainable production systems 2013 ban on animal testing under the seventh amendment of the EU few decades • Organisations are increasingly searching to understand their full Cosmetics Directive –– Global temperatures are likely to rise by 0.3C to 4.8C by the end supply chains and are requesting suppliers to provide data on • Development of products which are more efficient to make, of the century, depending on how much governments control environmental and social aspects have fewer negative by-products, and minimise impact on carbon emissions the environment • Fossil fuel markets are likely to become more volatile and • Increasing regulations for the fragrances and flavour industry unpredictable because of higher global energy demand as well as changes in consumption patterns • It is predicted that by 2030, global demand on water will exceed supply by 40%. Business will be subject to water shortage, water quality decline and water price volatility2

Our commitments Continue to supply products which are safe for people and • Improve eco-efficiency of factory manufacturing sites with a focus Foster customer partnerships to share responsibility through the environment: on greenhouse gas emissions, waste and water and reduce our product lifecycle • Ensure Givaudan products are safe for people and the environment overall footprint against a 2009 baseline focusing on eco-efficiency • Engage with customers to develop new technologies for healthier when used as intended for energy, carbon emissions, incinerated and land-filled waste and and sustainable products • Full regulatory compliance of all products municipal and groundwater • Ensure our products are not persistent in the environment • Sustainable logistics offers opportunities to improve the efficiency after their use through reduced fuel usage and therefore lower transport costs • 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 • Fragrance Division compliance with European REACH Per tonne of product against 2009 baseline: • Establish joint initiatives to further progress towards registration requirements, as they become applicable, • Energy consumption: 20% reduction, per tonne of product, Givaudan sustainability targets and those of our partners and progress in 2010, 2013 and 2018 by 2020 Leading supplier capability building workstream at AIM‑PROGRESS in 2013 Fragrance Division fully compliant with REACH and successfully 13.4% reduction in energy consumption and received the invitation to become Leadership Team member as completed required registrations • Water use: 15% reduction, per tonne of product, by 2020 (for of 2014 • Flavour’s Health and Wellness programme incremental sales municipal and groundwater) Partnership with Diptyque on sustainable ylang ylang. target of CHF 100 million; incremental growth from 2009 6.4% reduction in municipal and groundwater use Partnership with AkzoNobel on sodium reduction solution to 2013 • Direct and indirect CO2 emissions: 25% reduction, per tonne Surpassed our target to beat our forecast of CHF 100 million of of product, by 2020 (indirect relates to purchased energy and Other key achievements: incremental sales growth for Health and Wellness products not energy used by others i.e. our raw materials suppliers) • All Givaudan sites maintained Sedex Questionnaire and nine SMETA 19.9% reduction in direct and indirect CO2 emissions audits have been conducted Other key achievements: • Total weight of incinerated and land-filled waste by type and • Continued sponsorship of the Cosmetic Executive Women (CEW) • KeratinoSens™ Assay (an invitro method of testing for skin disposal: 15% reduction, per tonne of product, by 2020 Eco Beauty Award in the USA and UK to inspire sustainability action sensitisation) working towards becoming an industry standard as Our total weight of incinerated and land-filled waste decreased in the beauty industry part of the ITS (Integrated Testing Strategy) by 14.4% • External advocacy efforts, including speaking at British Society of Perfumers • Gold Standard achieved for EcoVadis assessment • Partnership with NRSC on the development of a supply chain of palm oil sustainable derivatives

1 IPCC Climate change report 2013 – http://www.ipcc.ch/report/ar5/wg1/ 2 Source: World Economic Forum water initiative – http://www.weforum.org/reports/water-resources-group-background-impact-and-way-forward 07 GRI index Profile disclosures Performance Assurance

About Givaudan 2.5 Number of countries where the More detailed financial information about 2.8 Scale of the reporting organisation organisation operates, and names of the scale of our organisation and our As at 31 December 2013 we had: 2.1 Name of the organisation countries with either major operations or operational structure is available in our operations that are specifically relevant 2013 Annual Report. • 82 locations worldwide; Givaudan SA to the sustainability issues covered in • 25% global industry market share the report (approximately); 2.2 Primary brands, products and/or We have principal companies of the Group For more information on the ‘2013 Annual Report’ please see: • 33 production sites; services that are fully owned unless otherwise www.givaudan.com/Investors/ indicated (percentage of voting rights). Financial+Information/Full+and+Half+Year+Reports • 9,331 full time equivalent staff; We create fragrances for personal and A list of these principal Group companies is home care brands that range from prestige • CHF 4,382 million revenue; and to be found in the Annual Report 2013 on perfumes to laundry care, and in flavours our 2.7 Markets served page 139. • over 6,000 customers. expertise spans beverages, savoury, snacks, Mature markets represent 55% of the annual sweet goods and dairy products. We have 33 manufacturing sites in 18 sales and include North America, Western countries. Details about our sustainability Europe and Japan. Developing markets 2.9 Significant changes during For more information on our brands and activities in Brazil, China, Colombia, France, already account for 45% of our annual sales the reporting period regarding size, products please see: Haiti, Hungary, India, Italy, Laos, Madagascar, in Asia Pacific, Latin America and Eastern structure or ownership www.givaudan.com/Flavours/Our+Brands Mexico, the Comoros, the Netherlands, Europe (this is expected to increase to 50% www.givaudan.com/Fragrances Singapore, Spain, Switzerland, Venezuela, the Givaudan made no acquisitions or disposals by 2015). We are active in over 100 countries www.givaudan.com/staticweb/StaticFiles/ UK and the USA are included in this report. during the reporting period. GivaudanCom/Media/Documents/Giv_ and have sites and branches in more than flavourFacts.pdf 40 countries. Regarding operational changes, since the beginning of 2013 the environmental, 2.6 Nature of ownership and legal form Our Fragrance Division specialises in Fine health and safety (EHS) and social data of Fragrances, Consumer Products and 2.3 Operational structure of the Givaudan SA, the parent company of Givaudan’s new manufacturing location in Fragrance Ingredients – through which we organisation, including main divisions, the Givaudan Group, with its registered Hungary has been included in the scope of create scents for leading brands worldwide. operating companies, subsidiaries and corporate headquarters at 5 Chemin de la our reporting. During the period January to In-depth consumer understanding, a high- joint ventures Parfumerie, 1214 Vernier, Switzerland, is a August 2013 the manufacturing activities of performing research and development ‘société anonyme’, a publicly held corporation our facility at Bromborough in the UK were Our Company comprises two divisions, organisation and an efficient global operations pursuant to art. 620 et seq. of the Swiss transferred to the new Hungarian facility. Flavours and Fragrances. network support our business. Our perfumery code of obligations, and is listed on the SIX Manufacturing activities in the UK facility were team is the largest in the industry. Our Flavour Division has four business units: Swiss Exchange under security number ceased at the end of August. Consequently, Beverages, Dairy, Savoury and Sweet Goods. 1064593. The Company has 54 principal Our Flavour Division works with food and EHS and social data for this facility up to Our Fragrance Division has three business companies of the Group, none of which are beverage manufacturers to develop flavours August 2013 is included in this report. units: Fine Fragrances, Consumer Products publicly listed. Information on Givaudan SA’s and tastes for market-leading products and Fragrance Ingredients. significant shareholders as per art. 20 Swiss across all continents. We are a trusted Stock Exchange Act can be found at: partner to the world’s leading food and www.six-swiss-exchange.com beverage companies, combining our global 2.4 Location of expertise in sensory understanding, analysis organisation’s headquarters Swiss Stock Exchange Act can be found at: and consumer-led innovation in support www.six-swiss-exchange.com of unique product applications and new Vernier, Switzerland market opportunities. 08 GRI index Profile disclosures Performance Assurance

2.10 Awards received in the disclose and manage climate-related risks The Leadership Board Green Team Award About this report reporting period and opportunities. recognises the Green Team’s effort in driving forward the Company’s Sustainability 3.1 Reporting period WWF 2013 Palm Oil Buyers Scorecard Programme, which is a clear contributor to Givaudan is a leading model in the area All data is for wholly-owned Givaudan External awards its success. of using palm oil responsibly and is one companies, and is for the full financial year Unilever Fragrance Awards of the companies with the highest scores The Bob Pellegrino Leadership Award ended December 2013. Givaudan was awarded Best Fragrance (11 out of 12). Laith Wahbi, Global Product Manager, has been Technology (Fragrance Encapsulates in named the first recipient of the Bob Pellegrino Nestlé ‘Creating Shared Value’ Award DIG Laundry Detergent); Best Fragrance Leadership Award for his strong leadership 3.2 Date of most recent previous report Givaudan is a winner of the Nestlé CSV Prize Contribution to Competitive Preference in the commercialisation of TasteSolutions™ for school construction in Madagascan vanilla Our previous report was published in (Fair & Lovely skincare); and Best Unilever Savoury and the impact his efforts have had villages. Through the prize, Nestlé rewards March 2013. Reputational Compliance – Fragrance on the Flavour Division. The award is given initiatives that reflect the spirit of Creating Regulatory Safety. to a selected Flavours employee who has Shared Value by addressing challenges in demonstrated leadership resulting in the FGI Night of Stars Awards nutrition, water or rural development. 3.3 Reporting cycle commercialisation of technology that has had Givaudan’s commitment to sustainability, Belcorp Strategic Commercial Partner Award a significant impact on the Flavour Division’s We have an annual sustainability particularly ethical sourcing and farming Givaudan won the Belcorp Strategic strategic pillars and/or results. reporting cycle. partnerships, has been recognised at the Commercial Partner Award for its prestigious annual Night of Stars event in performance as a supplier in Latin America. New York, organised by Fashion Group Sponsored awards 3.4 Contact point for questions International (FGI). The award was collected 2013 FEMA Excellence in Flavor Science regarding the report or its contents by Gilles Andrier. Award CEW Eco Beauty Award Bob Eilerman won the 2013 FEMA Excellence Givaudan sponsors the CEW Eco Beauty We hope you find this report engaging and US Environmental Protection Agency in Flavor Science Award for 40 years Award in the USA and the UK to encourage informative. We welcome your comments (EPA) graduate of significant scientific contribution to and inspire sustainability progress in the and questions, which can be sent to: Givaudan was recently recognised by the US the industry. beauty industry. [email protected] Environmental Protection Agency (EPA) for its consistent record of developing ingredients The USA Eco Beauty Award 2013 went to that pass the EPA’s Sustainable Futures Nourish Organic, creators of the first organic Internal awards 3.5 Process for defining report content criteria for human and environmental safety. skincare collection to be certified by the Givaudan is now considered a graduate of Green Team Awards United States Department of Agriculture The prioritisation of the issues of highest the Sustainable Futures programme for its The 2013 Leadership Board Green Team (USDA). The UK Eco Beauty Award 2013 material importance to Givaudan and our track record in developing materials that meet Award winners are: was presented to Melvita for the Rose stakeholders is a critical component of our these criteria. Nectar range. Sustainability Programme strategy. In 2013, • Manufacturing Location winner: Mount we revisited our materiality matrix, which Carbon Disclosure Project Olive with the project – Braille Trail maps out the key themes we understand our Givaudan has been recognised as a top, • Commercial Location winner: Mexico stakeholders to be most concerned about, ‘A-band’ performer in the CDP’s FTSE City with the project – Engaging as well as those that are considered most 350 Climate Change 2013 Report for the customers important to Givaudan. Our review confirmed Germany, Austria and Switzerland. The CDP that the same themes remain valid, although ranks companies on how they measure, the climate change theme was combined

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with eco-efficiency, and biodiversity with Traceability HIGHER Product safety responsible sourcing. We use our materiality The ability to track, trace and predict the and regulation matrix, on an on-going basis, to help prioritise location of a batch, its sub-components and Responsible our Sustainability Programme initiatives and raw materials throughout the supply chain. sourcing Workplace the content of our Sustainability Report. It is safety Eco-efficiency also an invaluable tool for focused dialogue Improving the efficiency of operational Sustainable Economic with our internal and external stakeholders. innovation performance activities with regard to harmful emissions, water efficiency and waste disposal. Traceability Corporate Corporate governance governance Ensuring our practices are in alignment with 2013 materiality matrix international standards and safeguard the Eco-efficiency Glossary of material issues effective functioning of the governing bodies Product safety & regulation of the Company. The safety of our products and the processes Diversity of workforce Stakeholder Diversity Transparency that are used to comply with local laws dialogue of workforce Having a diverse workforce which reflects the and regulations. societies in which we operate. Level of importance to stakeholders Community Workplace safety support Stakeholder dialogue Minimising accidents and injuries in the Engaging with stakeholders to build Sustainable Employee workplace, including the training and understanding of their priorities and to logistics engagement systems to ensure the health and safety of find opportunities for collaboration on our employees. sustainability initiatives. Economic performance Community support MEDIUM Level of importance for Givaudan sustainability success HIGHER Operating a Sustainable Business Model. Building relationships for the benefit of the This means respecting the planet, including communities in which we operate. Note: Arrows highlight key themes which have been raised through feedback from stakeholder Dialogue Panels (see 4.17) the people living on it, while running a viable, profitable business. Transparency Being open to sharing data and information; Responsible sourcing disclosure of data. The process of purchasing goods and services without causing harm to, or Sustainable logistics exploiting, humans or the natural environment. Eco-efficient management of product flow including: packaging, warehousing Sustainable innovation and transportation. Development of products which are more efficient to make, have fewer negative by- Employee engagement products, or have a positive impact when Engaging and inspiring employees to be used by the consumer (Health and Wellness/ a motivated workforce. environmentally-friendly innovation).

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3.6 Boundary of the report Reporting of data is aligned to internal The production volume figure has been assessed the application level of our report to definitions, which are based on GRI indicator corrected by a small increase of 0.28%. be at B+. This document represents a full GRI All data is for wholly-owned Givaudan definitions and/or the GHG protocol. For CO Other small baseline corrections concerned content index. companies, and is for the full financial year 2 conversion factors figures available from total water discharge (+0.73%) and SO ended December 2013. Details about our 2 The data and commentary in this report are the supplier are used and, if not available, emission load (–0.5%). environmental, health and safety figures are assured by Ernst & Young in accordance set default values or country grid factors for only referring to our 33 manufacturing sites, Also corrections have been made on 2012 with the principles of the International purchased electricity are used. In a number located in 18 different countries. data provided in last year’s report; these are Standards on Assurance Engagements of instances, environmental data is based slightly larger and are in the range of 0.3 – (ISAE) 3000. For more information please on estimates. This is particularly the case for 2.65%, with the exception of CFC inventory see the Assurance Statement on page 60 waste data where it is sometimes necessary 3.7 Limitations on the scope or data, for which the value has increased by of this document and a UNGC Principles to estimate weight from waste volume. boundary of the report 10% because a particular CFC figure from reference table. Similarly, waste water is sometimes estimated one site was not included. All the corrections Unless otherwise stated, the social and using water input data. made are summarised in the restatement economic data is global. Environmental, table included in the appendix of this report. health and safety data is limited to For more information please see the manufacturing locations only. 3.10 Explanation of the effect of any Assurance Statement on page 60 of restatements of information provided this document. 3.11 Significant changes from previous in earlier reports reporting periods in the scope, boundary 3.8 Basis for reporting on joint Following checking and validation of quarterly or measurement methods applied in ventures, subsidiaries, leased facilities, reported figures, and site audits conducted the report outsourced operations and other entities About our governance against reporting definition sheets, a number Since the beginning of 2013 the Givaudan’s reporting does not include of corrections have been made to the 4.1 Governance structure of the environmental, health and safety (EHS) and joint ventures, subsidiaries and baseline 2009 data we reported in our 2012 organisation, including committees social data of Givaudan’s new manufacturing outsourced operations. Sustainability Report. With a few exceptions, under the highest governance location in Hungary has been included in the the corrections are minor, and for the eco- body responsible for specific scope of our reporting. During the period parameters for which targets are set, are less tasks, such as setting strategy or January to August 2013 the manufacturing 3.9 Data measurement techniques and than or equal to 1%. organisational oversight activities of our facility at Bromborough in the the bases of calculations The energy correction is less than 0.002%. UK were transferred to the new Hungarian According to art. 716a of the Swiss Code We replaced our data collection system, facility. Manufacturing activities in the UK of Obligations, the Board of Directors is The CO load has been corrected with a small Enablon, with BlueSuite at the start of 2012. 2 facility were ceased at the end of August. the highest governance body of Givaudan increase of 0.13%. This allows reported data to be collected Consequently, EHS and social data for this SA. In accordance with Swiss law, the globally using local employees who are Regarding the corrected figure for waste facility up to August 2013 is included in Articles of Incorporation of Givaudan and trained in how to report and document the (incinerated and land-filled), a number of this report. the Board Regulations of Givaudan, the data. Each location is responsible for its own small corrections were made leading to a duties of the Board of Directors include the accuracy and consistency. During 2013 an 1% lower figure. following matters: e-learning training module was developed and 3.13 Policy regarding external assurance The municipal and groundwater baseline • the ultimate management of the rolled out to those involved in the quarterly figure has not changed. This report has been prepared in accordance Company and, in particular, the reporting cycle. with the Global Reporting Initiative’s G3.1 establishment of medium- and long- Sustainability Reporting Guidelines. GRI has term strategies and directives defining

11 GRI index Profile disclosures Performance Assurance

Company policies and the giving of the • the decisions regarding the subsequent effective communication among the Executive Committee necessary instructions; performance of contributions on shares Board, management, the internal audit The Executive Committee (the management not fully paid in; function and external audit. It reviews • the establishment of the organisation; team), under the leadership of the CEO, is and approves the compensation of the • the ascertainment of share capital responsible for areas of management of the • the approval of the annual Company external auditors for the annual audit. increases to the extent that these Company that are not specifically reserved for budget; The Chief Financial Officer attends the fall under the powers of the Board of the Board of Directors. meetings of the Audit Committee on the • the structuring of the accounting system Directors and resulting confirmations invitation of its Chairman. The CEO, subject to the powers attributed to and of the financial controlling as well as and modifications to the Articles of him, has the task of achieving the strategic the financial planning; Incorporation; and • The Compensation Committee: objectives of the Group and determining The primary function of the • the assessment of the Company’s • the verification of the special professional the operational priorities. In addition, he Compensation Committee is to review risk management as reported by the qualifications of the auditors. leads, supervises and coordinates the other and recommend the compensation Audit Committee; members of the Executive Committee, Except as otherwise provided by Swiss law, policies to the Board of Directors. including convening, preparing and chairing • the decision on investments in, or the Articles of Incorporation and the Board It approves the remuneration of the CEO the meetings of the Executive Committee. divestments of, fixed and tangible assets Regulations, all other areas of management and the other members of the Executive of a global amount exceeding the limit set are fully delegated by the Board of Directors Committee as well as all performance- The members of the Executive Committee by the corporate investment guidelines to the CEO, the Executive Committee and its related remuneration instruments and are appointed by the Board of Directors on established by the Board of Directors; members in accordance with art. 716b of the pension fund policies. The Compensation recommendation of the CEO after evaluation Swiss Code of Obligations. Committee consists of three members of by the Nomination Committee. The Executive • the appointment and removal of the the Board. The Committee takes advice Committee is responsible for developing the persons entrusted with the management According to the Articles of Incorporation of from external independent compensation Company’s strategic as well as long-term and representation of the Company, in Givaudan, the Board of Directors may consist specialists and consults with the business and financial plans. Key areas of particular the Chief Executive Officer of between seven and nine members. Chairman and the CEO on specific responsibility also include the management (CEO) and the other members of the The Board of Directors has established matters where appropriate. and supervision of all areas of business Executive Committee; three Committees: an Audit Committee, a development on an operational basis, and • The Nomination and Governance • the ultimate supervision of the persons Compensation Committee and a Nomination approving investment decisions. Committee: The primary function of the entrusted with the management, in and Governance Committee. Nomination and Governance Committee particular with respect to compliance • The Audit Committee: The primary is to assist the Board in applying the with the law, the Articles of Incorporation, function of the Audit Committee is to principles of good corporate governance. regulations and instructions given in any assist the Board in fulfilling its oversight It prepares appointments to the Board of areas relevant to the Company, such responsibilities by reviewing the Directors and the Executive Committee as working conditions, environmental financial information, the systems of and advises on the succession planning protection, trade practices, competition internal controls and the audit process. process of the Company. It consists of rules, insider dealing and ad hoc publicity; It carries out certain preparatory three members of the Board. • the preparation of the annual business work for the Board of Directors as a report, as well as the preparation of the whole. The Audit Committee currently Annual General Meeting of shareholders consists of three members of the Board. and the implementation of its resolutions; The Audit Committee ensures that the Company’s risk management systems • the notification of the court in case are efficient and effective. It promotes of insolvency; 12 GRI index Profile disclosures Performance Assurance

The tasks and powers of the Executive 4.3 Number and gender of members Shareholders will be registered with a right 4.6 Processes in place for the highest Committee include the approval of of the highest governance body to vote in the share register of Givaudan governance body to ensure conflicts of investments, leasing agreements and that are independent and/or non- SA until the record date set by the Board of interest are avoided divestments within the corporate investment executive members Directors. The date for the ordinary general The Board Regulations of Givaudan stipulate guidelines. The Executive Committee meeting is specified in the invitation and is set According to the rules of Swiss law and that in the event of a conflict of interest, the approves important business projects and approximately two weeks before the meeting. Swiss best practice in corporate governance, member concerned shall immediately inform prepares the business plan of the Group Only shareholders who hold shares registered as at 31 December 2013, all members of the Chairman. The Chairman shall either and the budgets of the individual divisions in the share register with a right to vote at the Board of Directors were non-executive decide himself how to resolve the matter or and functions. In addition, it plays a key a certain date, or their representatives, are and independent. Two of the seven Board refer it to the Board of Directors. role – together with the Human Resources entitled to vote. members were female and five were male. organisation – in the periodic review of the talent management programme, including 4.7 Process for determining the succession planning for key positions. 4.5 Linkage between compensation 4.4 Mechanisms for shareholders and composition, qualifications and Alliances and partnerships with outside for members of the highest employees to provide recommendations expertise of the members of the highest institutions, such as universities, think governance body, senior managers or direction to the highest governance governance body and its committees, tanks and other business partners, are also and executives (including departure body including any consideration of gender monitored by the Executive Committee. arrangements), and the organisation’s and other indicators of diversity According to Swiss law, any shareholder performance (including social and The members of the Executive Committee are who, on the day determined by the Board environmental performance) The Nomination and Governance Committee individually responsible for the business areas of Directors, is registered as a shareholder is responsible for determining the assigned to them. We recognise sustainability as a critical with voting rights has the right to attend composition, qualifications and expertise of objective that we proactively manage. and to vote at the shareholders’ meeting. the members of the Board of Directors and its Givaudan does not currently remunerate Shareholders representing at least 10% of Committees. It considers a number of factors 4.2 Indicate whether the Chair of the Board members based on social and the share capital may demand in writing that before proposing candidates for succession highest governance body is also an environmental performance (see our a shareholder meeting be convened, setting to the Board of Directors including diversity executive officer compensation report in the 2013 Annual forth the items to be included on the agenda of experience, professional background, Report on pages 72–80). Our commitment The Chairman of the Board of Directors, and proposals. gender and other areas. The election to sustainability is, however, reflected in Dr Jürg Witmer, is a Non-Executive Director. of Board members as proposed by the Shareholders representing shares for a an ambitious Sustainability Programme He was the CEO of the Company until Board of Directors is the prerogative of the nominal value of at least CHF 1 million may and in particular in our 2020 eco-efficiency 27 April 2005. shareholders meeting. demand in writing at least 45 days before targets. Furthermore, the Board of Directors the meeting that an item be included in receives regular updates from the Executive the agenda, setting forth the item and Committee and from experts within the the proposals. Company regarding Givaudan’s economic, environmental and social performance, including relevant risks and opportunities and adherence or compliance with relevant standards.

13 GRI index Profile disclosures Performance Assurance

4.8 Internally developed statements 4.9 Procedures of the highest information at meetings of the Board use of energy and materials; the minimisation of mission or values, codes of conduct governance body for overseeing of Directors on request. of adverse environmental impact and waste and principles relevant to economic, the organisation’s identification generation; and the safe and responsible • The Head of Internal Audit and the environmental and social performance and management of economic, disposal of residual wastes. Givaudan’s Corporate Compliance Officer report to and the status of their implementation environmental and social performance, Directive on Environmental Protection the Board once per year. The Board also including relevant risks and underlines the Company’s commitment in Givaudan has introduced ‘Principles of receives annual reports on Environment, opportunities, and adherence or this area. Business Conduct’, a code of conduct for the Health and Safety, Sustainability and compliance with internationally entire Givaudan Group. The principles include: Risk Management. Environment, Health and Safety (EHS) agreed standards, codes of conduct regularly carries out comprehensive risk • Compliance with the Law and principles assessments for all of Givaudan’s production • Conflicts of Interest The Board of Directors receives regular 4.10 Processes for evaluating the sites. Any actions identified through such • Bribes, Gifts and Entertainment updates from the Executive Committee highest governance body’s own assessments are managed internally using • Fair Treatment of Employees and from experts within the Company performance, particularly with respect a proprietary EHS Management System with • Working Environment and Child Labour regarding the economic, environmental to economic, environmental and formally documented solutions and closure • Environmental Compliance and social performance of the Company, social performance records. Additionally, Givaudan Operations • Competition Law including relevant risks and opportunities carries out continuous risk assessments and • Insider Dealing The Board of Directors conducts an annual and adherence or compliance with management of all chemical processes in • Protection of Confidential Information self-assessment. relevant standards. This is assured by an accordance with leading industry standards. and Trade Secret information and control system the Board • Conduct in Research, Development Ensuring the safety and regulatory has at its disposal which comprises the • Application and Creation compliance of our products is a priority following instruments: • Implementation Our commitments which at Givaudan relies on a team of • The Chairman of the Board receives in‑house scientific experts and an external The Principles of Business Conduct have invitations and minutes of Executive network of international experts. been translated into all major Company 4.11 Explanation of whether and how Committee meetings on a regular basis languages and compliance training on the the precautionary approach or principle In order to meet the increasing demands and the Chief Executive Officer and the Principles has been provided in all Company is addressed by the organisation and the needs of our customers and Chief Financial Officer report regularly to languages too. consumers, our regulatory compliance the Chairman of the Board of Directors. teams work at both local and global levels. The Principles can be downloaded here: • The CEO and the Chief Financial Officer Our approach We are also advocates for our industry, are present and report at all regular supporting regulatory developments that www.givaudan.com/staticweb/StaticFiles/ Givaudan, as an industry leader, is committed GivaudanCom/Publications/Corporate%20 Board meetings and answer all requests are science-based and in the interests of to adhere to the highest ethical standards in Governance/Giv_principlesBusinessConduct. for information by the Board members customers and consumers alike. pdf business conduct and compliance with laws about any matter concerning Givaudan and regulations, as well as with Company Fragrances that is transacted. Other members of policies, practices and procedures. Europe’s REACH regulations govern chemical the Executive Committee and selected control. After 31 May 2013, all substances senior managers are regularly invited to Givaudan recognises its obligation to carry manufactured or imported in quantities above address specific projects at regular Board out all of its activities in a manner that one tonne per year have to be registered. meetings. All members of the Executive preserves and promotes a safe and clean Givaudan is active as a lead registrant for Committee have a duty to provide environment. While conducting its activities, approximately 20% of our registrations. Givaudan takes into consideration the efficient As such Givaudan is responsible for the

14 GRI index Profile disclosures Performance Assurance

development and completion of the technical Through our commitment to developing guidelines that control the materials that 4.12 Economic, environmental and dossiers for registration to the European sound science, such as the development can be used to create flavour ingredients. social charters, principles or other Chemical Agency (ECHA). We are focused of the invitro KeratinoSens™ Assay for A majority of national regulations follow initiatives to which Givaudan subscribes on ensuring that our registrations contain sensitisers, our experts are working with DG regulations established by either the or endorses incisive risk assessments based on sound Sanco to develop a balanced and pragmatic European Food Safety Authority (EFSA), the We participate in and endorse a number of technical data. approach that will ensure the continued safety US Food and Drug Administration (FDA) or global initiatives which promote sustainable of consumers exposed to fragrances. the United Nations Joint Expert Committee We continue to achieve our REACH business practices: on Food Additives (JECFA) as part of CODEX compliance goals. From the inception of Givaudan strongly supports the development Alimentarious. However, with the further • Global sustainability challenges require REACH, through pre-registration and two of scientific understanding and believes that development of national health authorities global effort. That is why we measure our phase-in registration deadlines, we have fragrance allergens should be controlled in Asia we are seeing an increase in the progress towards sustainability against met our objectives. The latest deadline was if they are shown to present a risk to development of national food additive and the principles of the UNGC. We file 31 May 2013 and was the most challenging human health. We also believe that through flavour regulations in China, India and other our Sustainability Report as our annual yet. We succeeded with our registrations. expanded information to consumers, those rapidly developing markets. Communication on Progress. These required considerable effort on behalf who have a concern over sensitisation can of the REACH Group; the joint registrations effectively manage their use of products to The increase in food additive and flavour • We aim to communicate to external provided perhaps the greatest challenge prevent any risk. regulations and the move towards greater stakeholders in a transparent way our due to the complexities of working within regulatory consistency are having positive strategic direction, motivation, goals, A new SAP-based solution for fragrance substance exchange forums and consortia. impacts in the food industry but are development and progress in the arena compliance checks has greatly increased resulting in an increase in the amount of of sustainability. Givaudan reports REACH compliance has been a valuable Givaudan’s regulatory capabilities, allowing us activity required to register new materials. annually information on greenhouse gas learning process for Givaudan and has to handle the complex product compliance In all markets, whether in Asia, Europe, emissions, energy use and the risks and provided greater insights into our industry and evaluations required by authorities, customers Latin America or North America, Givaudan opportunities from climate change to the how others are coping with the challenges and industry codes of conduct throughout is actively engaged in dialogue with the Carbon Disclosure Project. and increasing demands made by such fragrance development for fine fragrance and regulators to ensure that sound scientific regulation on our industry. The road ahead consumer products. • We also disclose our sustainability methods are being developed to determine will be a greater test for Givaudan, with a achievements through a Sustainability Flavours the safety of food additives. In all cases, predicted yearly registration rate for the Report which follows the international We continue our work to help bring a greater Givaudan meets or exceeds the expectations final phase-in deadline (2018) of more than reporting framework from the Global degree of harmonisation to the regulations of regulatory authorities when conducting double that previously undertaken. It is Reporting Initiative and which is impacting the flavour industry worldwide studies to support the safe use of a challenge we intend to meet to ensure independently assured. through our leadership in trade associations flavour ingredients. REACH compliance for not only Givaudan such as the International Organization of the but also our customers in the EU as our To further enhance our abilities to respond to Flavor Industry (IOFI), the Flavor and Extract downstream users. growing customer and regulatory demands, Manufacturers Association (FEMA) of the USA, the Flavour Division is developing a new We are also playing a lead role in the and the European Flavour Association (EFFA). SAP-based compliance module that will International Fragrance Association (IFRA) Flavourings and flavour ingredients are enable Givaudan to maintain its industry- discussions with the European Commission regulated at the national and regional levels. leading commitment to product quality and (DG Sanco) over developing a regulatory Use of flavour ingredients is controlled customer support in an increasingly complex proposal to expand control over the through a combination of positive lists for business environment while ensuring global use of fragrance materials that could be single component ingredients and regulatory regulatory compliance. potential allergens.

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External commitment or initiative emissions annually and reduction strategy Givaudan’s current report adheres to GRI Since 2012 we have been an active and performance for both investor and supply G3.1 level B+. We are actively working member of AIM-PROGRESS. Through this The UNGC is a strategic policy initiative for chain surveys. on a transition plan to GRI G4 for our membership we are enhancing our supplier businesses that are committed to aligning future reporting. and customer partnerships to help create their operations and strategies with ten In 2013, Givaudan disclosed for the a more responsible supply chain. In 2013 universally accepted principles in the areas CDP investor and supply chain surveys. For more information visit: Givaudan led the supplier capability building of human rights, labour, environment and Company transparency is assessed via a https://www.globalreporting.org/Pages/default. workstream to promote responsible sourcing anti-corruption. Givaudan committed to the disclosure score, for which Givaudan received aspx practices throughout the supply chain, principles of the UNGC in February 2010. 79/100 in 2013 versus 70/100 in 2012. with a particular focus on delivering joint We publish updates in the Communication Givaudan’s performance band was A in 2013 supplier capability events, resources and on Progress (COP) integrated in our versus C in 2012. tools. We have further plans to deepen our Sustainability Report. Engagement engagement with AIM-PROGRESS in 2014. For more information visit: and dialogue In 2013, Givaudan attended the Leaders https://www.cdp.net/en-US/Pages/HomePage. Summit held in New York by the UNGC. aspx 4.13 Memberships in associations and For more information visit: This summit was a call to action to the advocacy organisations www.aim-progress.com business community to find ways to The Global Reporting Initiative (GRI) is collaborate and co-partner with each other, the leading global standard and the standard Sustainability issues are simply too big to Sedex, the Supplier Ethical Data Exchange, and/or with government and NGOs, to most widely adopted for sustainability deal with alone. So we engage in a series is a not-for-profit membership organisation overcome business challenges and scale up reporting. GRI guidelines have been designed of strategic collaborations with relevant dedicated to driving improvements in their contributions to sustainability. One of the to align with other prominent standards, organisations and partners to support responsible and ethical business practices main agenda points of this year’s event was to including OECD guidelines for multinational and inform our work on the most material in global supply chains. unveil a new vision and agenda for the post- organisations, ISO 26000, the United sustainability issues. Collaboration across our 2015 UNGC time frame, ‘Building the Post- Nations ‘Guiding Principles on Business and supply chain, as well as other businesses and Relevance to material issues: 2015 Business Engagement Architecture’. Human Rights: Implementing the United non-profit organisations is key: the more we • Responsible sourcing do, the quicker we drive sustainable solutions. • Traceability As a signatory to the UNGC we are using this Nations “Protect, Respect and Remedy” Last year particular organisations where we • Transparency report to submit our annual Communication Framework’, and the UNGC’s ‘Ten Principles’. have engaged are: • Workplace safety on Progress. Givaudan started to use GRI guidelines in our 2010 Sustainability Report. AIM-PROGRESS is an association of Since 2008 Givaudan has been an active In 2013, Givaudan participated in the consumer goods companies seeking user of the Sedex platform. Since 2010 Please visit www.unglobalcompact.org Organizational Stakeholder Program, a to enable and promote responsible all 33 Givaudan manufacturing sites have network of more than 600 organisations sourcing practices and sustainable been registered on Sedex and completed from over 60 countries committed to production systems. the Sedex Self-Assessment Questionnaire The Carbon Disclosure Project (SAQ) to share information with customers. advancing sustainability reporting. In May Relevance to material issues: (CDP) is an international, not-for-profit Givaudan annually reviews and updates 2013, Givaudan attended the GRI Global • Responsible sourcing organisation providing the only global the SAQ. To date, 16 Givaudan sites Conference in Amsterdam where some 1,600 • Eco-efficiency system for companies and cities to have been audited in accordance with people gathered to discuss how to advance • Workplace safety measure, disclose, manage and share vital SMETA standards. sustainability reporting. The main features of • Transparency environmental information. G4 were presented. • Diversity We fully support our suppliers’ engagement Givaudan started participating in the CDP • Stakeholder dialogue with Sedex and today 248 suppliers are on in 2007 and has disclosed greenhouse gas

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Sedex, with 199 SAQs completed. We also Relevance to material issues: and undertook a GreenPalm audit. From early • Eco Efficiency participate in the Sedex working group on • Responsible sourcing 2014 Givaudan will be sourcing the first • Corporate Governance SAQ review to ensure it reflects current • Transparency palm derived ingredients with Mass Balance In 2008 we filled out the EcoVadis CSR legislation, codes and standards. • Traceability and Segregated certifications. This option assessment for the first time. In 2013 • Eco-efficiency is helping to drive up the scale of physical Givaudan reviewed and updated the Ecovadis sustainable palm. Until global volumes of For more information visit: Givaudan joined RSPO in 2011 to promote CSR assessment. Our CSR engagement is segregated sustainable palm oil grow to a www.sedexglobal.com the production and use of sustainable palm confirmed and we have improved our CSR much higher level, and until entire supply oil. As members of the Roundtable on rating from Silver to Gold. chains from refiners through to end users can Sustainable Palm Oil (RSPO), we continue to switch to only using segregated sustainable For more information on our approach to support the aim of sustainable production of supplier engagement and capacity building, palm oil, there will remain a need to offer For more information visit: palm oil, and palm oil derivatives. Our ultimate see page 46 Book & Claim – especially for products that www.ecovadis.com objective is to obtain all of our palm oil use complex derivatives of palm oil. derived ingredients from certified traceable NRSC, The Natural Resources Stewardship Additional memberships of senior leadership sources once they become technically and ACI, The American Cleaning Institute is Circle is a group of industry leaders in beauty, reported via CVs of Executive Committee commercially available. an association which aims to support the flavours and fragrances taking collective members are in the 2013 Annual Report. sustainability of the cleaning product and action to reduce their impact on biodiversity, oleo chemical industries. taking into account the social and economic For more information visit: www.rspo.org development of local communities. Relevance to material issues: 4.14 List of stakeholder groups • Eco-efficiency Relevance to material issues: engaged by Givaudan • Biodiversity GreenPalm is a certificate trading Since 2012 we have been members of Our key stakeholders are the people who • Community support programme which is designed to tackle the ACI. In 2013 Givaudan participated in the affect our business or who are affected by • Transparency environmental and social problems created ACI’s Sustainability Metrics Project to track it. Listening and responding to them is a • Responsible sourcing by the production of palm oil. GreenPalm is environmental sustainability metrics and to core part of our sustainability management an efficient solution for supporting RSPO- provide a baseline for ACI member operations In 2013, Givaudan engaged in several practices. The feedback we receive from certified palm because it bypasses the supply in the United States. these stakeholders helps us understand working groups about supply chain actions, chain. In this way, GreenPalm opens up the international activities and workshops. their expectations, enables us to prioritise opportunity to support sustainability to a issues effectively and contributes to our much wider audience. For more information visit: www.cleaninginstitute.org overall sustainability strategy, as well as For more information visit: www.nrsc.fr Relevance to material issues: helping deliver against our combined • Responsible sourcing sustainability goals. Givaudan’s key principles EcoVadis, EcoVadis aims at improving • Transparency of sustainability also outline our aspiration environmental and social practices of RSPO, The Roundtable on Sustainable to establish open dialogue: and take a We see GreenPalm as part of the mix companies by leveraging the influence of Palm Oil is an international multi-stakeholder collaborative approach with stakeholders to of options which support the supply of global supply chains. EcoVadis’ reliable organisation and certification model to ensure best understanding of expectations sustainable palm oil and derivatives. ratings and easy to use monitoring tools advance the production, procurement, and interests. Givaudan has adopted GreenPalm certificates allow companies to manage risks and drive finance and use of sustainable palm oil in 2011. eco‑innovations in their global supply chains. For several years, Givaudan has been products. See more at www.rspo.org developing specific stakeholder groups to In 2013, we used GreenPalm certificates to Relevance to material issues: discuss the Company’s critical issues and ‘Book & Claim’ 100% of our palm oil usage • Responsible Sourcing • Sustainable Innovations 17 GRI index Profile disclosures Performance Assurance

strategic priorities, identifying opportunities 4.15 Identifying and selecting Customers Dialogue Groups for improving management and relationships stakeholders to engage with • On-going dialogue Every two years, stakeholders are asked to and co-create projects with Givaudan. • Customer sustainability request Givaudan has been developing specific tools discuss the Company’s critical issues and We have identified six out of the list of our • Customer audits for several years to support stakeholder strategic priorities, identifying opportunities many stakeholder groups which, at the • Customer innovation days dialogue and interaction with the various for improving management and relationships moment, are of primary importance to our • Conferences and events stakeholder panels at both global or and co-creating projects with Givaudan. Sustainability Programme: • At associations and advocacy local level. In 2010, we began a process Targeted categories, such as local organisations (see section 4.14) communities, suppliers and specialists in Customers of reviewing and evaluating the diverse annual reports, are asked to co-create an Including global key accounts for Flavours stakeholder engagement initiatives that Suppliers annual plan for the evolution of relationships and Fragrances and industry associations exist across our Company. The starting • Assessments via Sedex registration with Givaudan. (NRSC, ACI, AIM-Progress). point was the identification of all of our • Issues raised at supplier audits stakeholder groups. Following an internal • Collaborations to improve performance Our main objective is to understand how our Suppliers survey and subsequent analysis, our primary business affects our stakeholders and to Including Tier 1 Naturals and Synthetics Employees sustainability stakeholders are listed in determine what the most material impacts suppliers, partnerships at origin with • European Works Council consultation section 4.14. to be managed are. Sustainability aspects growers and farmers, and supplier events • Internal employee survey listed in the Givaudan materiality matrix at AIM-Progress. • Annual performance dialogue are presented to stakeholders during Employees 4.16 Approaches to Owners & investors engagement to let them confirm the topics Including European Works Council stakeholder engagement • AGM/half year meeting they would rank as the more important for consultations, Givaudan’s Green Teams • Annual investor road show Givaudan has many channels for them, the ones they would like to discuss or Internal Employee Engagement Survey, • Briefings with analysts stakeholder dialogue, spread across would like to know more about. Co-creation and annual performance dialogues. different departments and teams. Often, Local communities of projects and collaboration with mutual benefits are the ultimate goals of stakeholder Owners & investors we already have information and feedback • Community development dialogue – thereby allowing us to focus our Including engagement with the Board of from stakeholders as a consequence of programme survey sustainability efforts in those areas that are Directors, SRIs, institutional investors and on-going business as usual interactions. • Local site community most important to our key stakeholders. pension funds. In such cases, information from previous engagement programme interactions can be used to identify interests Local communities Public & regulatory agencies and priorities. The following list, established Including local site community • Commenting on emerging legislation/ in the 2011 Sustainability Report, formalises engagement programme. regulation dialogue channels: • Membership of working groups/forums Public & regulatory agencies • IFRA/IOFI consultation Including engagement with IFRA, IOFI, • UNGC consultation EFFA and other not for profit international • CDP project workshop organisations such as GRI, UNGC, CDP – • Media see sections 4.12 and 4.13 for more details.

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How Dialogue Groups support our 4.17 Key topics and concerns that • Responsible sourcing is a growing • Traceability is increasingly a business materiality process have been raised through stakeholder concern as developing countries requirement connected with regulatory The Dialogue Groups give stakeholders engagement, and our response industrialise and global demand requirements, food safety and issue a genuine and explicit role in setting the for material resources increases. management. It reflects the growing Every two years we identify sustainability direction of our Sustainability Programme – Responsible sourcing is about knowing need for more information on the origin topics based on their importance for and contribute every two years to prioritising under which social and environmental of our ingredients. Traceability is about Givaudan and our stakeholders and Givaudan’s material issues. Outcomes from conditions Givaudan raw materials and where the product is produced and how prioritise them on the principle of materiality. Dialogue Panel sessions are also fed back products are made. It is now becoming it is produced. In our materiality matrix we highlight key to the Sustainability Steering Team (our main one of the most material aspects for sustainability issues and their significance for • Community support from companies governance body for sustainability) and key stakeholders who are demanding stakeholders. (See materiality matrix in 3.5.) like Givaudan is a requirement. As part management committees to shape strategy more accountability from brands on of our responsible sourcing approach and improve decision making. We analyse stakeholder feedback and identify supplier ethics regarding workers and the Givaudan engages with suppliers, changes that have the greatest effects. environment. Givaudan’s supply chain including producers at source in remote The result is a set of environmental and social is complex and the Company plays a rural communities, to meet environmental trends that we believe influence our business pivotal role with more than 2,000 raw and social standards and support over the mid-term: material suppliers and more than 6,000 community needs. Moreover at Givaudan customers. This is where Sedex provides • Product safety and regulation we act responsibly and constructively value with common requirements. remains a key topic for our stakeholders. in relation to the communities in which Givaudan is committed to conducting There are more regulations and more we operate. We support activities and audits with 200 of our top 400 suppliers public pressure for greater transparency. projects which improve the quality of by 2015. Our primary focus is to continue life of our local and global communities to develop and produce safe and • Sustainable innovation is of growing and that support our divisional focus compliant products. importance as issues such as Health and area: Flavour Division; Family Nutrition; Wellness, climate change and resource Fragrance Division; Blindness. depletion become more pressing for our customers. Transforming these issues into opportunities and researching new See page 10 for 2013 materiality matrix. technologies are key for Givaudan. As the industry leader we invest heavily in research and development. Givaudan is well-placed to respond to these opportunities given our wide spectrum of products, processes and services.

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Economic In this section:

21 Economic performance This section concerns the economic 22 Market presence 22 Indirect economic impact dimension of sustainability and Givaudan’s impacts on the economic conditions of its stakeholders and on economic systems at local, national, and global levels.

Source: GRI 3.1 Sustainability reporting guidelines – Part 2 – Economic – page 25

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Economic performance beverages as well as household and • Targeted customers and segments: creations. We want to build on our personal care products. Our sales in We seek to help our customers drive strategic partnerships with our main Why it’s material to us these markets accelerated in 2013 and growth in their market share, in mature customers and develop our presence accounted for 45% of Group sales. as well as developing markets, through with accounts or product categories It is our fiduciary duty to shareholders bringing innovation, consumer insight, where we are under-represented relative to ensure that Givaudan’s business • Research and Development: market understanding and commercial to our overall industry position and where is financially sustainable in the short, Creative and innovative Research and expertise to the development of more we have an opportunity to expand. medium and long term. Development (R&D) programmes are sustainable fragrance and flavour the bedrock for Givaudan’s continued commercial success. Our investment Our commitments in R&D – CHF 406 million in 2013 – significantly exceeds that of any other • Mid-term, the overall objective is to grow Performance indicators EC3: Coverage of the organisation’s company in the fragrance and flavour organically between 4.5% and 5.5% defined benefit plan obligations industry. We are committed to investing per annum. for the mid and long term to maintain our The Group operates a number of defined EC1: Direct economic value • Givaudan expects to outgrow the competitive edge. benefit and defined contribution plans generated and distributed, including underlying market and to continue to throughout the world, the assets of • Health and Wellness: Consumers revenues, operating costs, employee achieve its industry-leading EBITDA which are generally held in separate continue to demand food and beverage compensation, donations and other margin while achieving an annual trustee-administered funds. The pension products that are not only good for them community investments, retained free cash flow of 14% to 16% of sales plans are generally funded by payments but also taste good. We have made earnings, and payments to capital by 2015. from employees and by the relevant significant investments in recent years providers and governments Group companies, taking account of • Givaudan confirms its intention to that enable us to help our customers the recommendations of independent continue to return above 60% of launch great tasting, healthy food and 2012 2009 (restated) 2013 qualified actuaries. The most significant the Company’s free cash flow to beverage products and meet these plans are held in Switzerland, the USA, the shareholders, while maintaining a consumer expectations. Our investments 3,973 4,307 4,382 Netherlands and the UK. medium-term leverage ratio target of in new ingredient development, Revenue million million million below 25% sensory methodologies and consumer Operating 2,536 2,705 2,678 Non-pension plans consist primarily costs million million million understanding allow us to maintain Payments to 55 150 139 of post-retirement healthcare and life a leading position in the Health and governments million million million insurance schemes, principally in the USA. How we manage this issue Wellness arena. Payments to providers 213 284 416 For full details of our defined benefit and We continue our commitment to outperform • Sustainable sourcing of raw of capital million million million defined contribution plans, in line with the the underlying markets and further expand materials: The sustainable sourcing of Employee requirements on EC3, please see our 2013 our leadership position in the industry. raw materials is an integral part of our wages and 964 963 999 Financial Report, note 6 (p 113-118). benefits million million million The key pillars of our five-year strategy are: operations and is one of our strategic Economic 205 205 150 pillars, as well as being part of our • Developing markets: We continue to value retained million million million Sustainability Programme. Such sourcing All figures in CHF focus on the opportunities for growth is essential to our business success offered by the world’s developing in terms of security of supply, cost of markets, where consumer demand goods, quality, environment, and health remains high for packaged food and and safety.

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Market presence to build on our strategic partnerships with our Indirect our activities on the ground can benefit local main customers and develop our presence communities, such as through additional and Why it’s material to us with accounts or product categories where economic impact more stable income, security for farmers and we are under-represented relative to our local suppliers, and increased awareness of As a global business with operations Why it’s material to us overall industry position and where we have local environmental issues. in over 40 countries, it is imperative an opportunity to expand. As one of the world’s largest buyers that we develop a strong network of in the fragrance and flavour industry, local suppliers and a pool of talented procurement is a strategic pillar employees to meet customer and Performance indicators with a strong positive impact on the consumer demand, and to expand our profitability of the Company – and market footprint. communities around the world. EC6: Policy, practices and Using over 10,000 different ingredients in proportion of spending on locally our fragrance and flavour products, from Our commitments based suppliers at significant more than 100 countries, it is critical that • We aim to increase our total sales in locations of operation we have a deep understanding of our developing markets to 50% by 2015 direct and indirect economic impacts so It is common practice to prefer sourcing across all categories. that we can maximise these accordingly. from locally based suppliers (defined as suppliers who are based in the same country as the Givaudan ‘facility’). How we manage this issue Our commitments This is reflected in the 84.8% by value Growth in developing markets is one of our of non-raw material purchased locally in • Work with our suppliers to contribute strategic pillars (see Economic Performance, 2013. For raw materials, 27.7% by value to sustainability throughout our value page 23). We continue to focus on the were sourced locally in 2013. Several of chain; and opportunities for growth offered by the the raw materials we buy cannot be • Conduct regular reviews of our portfolio world’s developing markets, where consumer sourced in countries other than the and implement improvements through demand remains high for packaged food and ones where it naturally grows. our ethical sourcing programme. beverages as well as household and personal care products. We are committed to building our network throughout developing markets, How we manage this issue as we believe that presence is critical to building the local knowledge necessary to Givaudan’s ability to develop positive exploit our global expertise. partnerships with local communities plays a significant role in its overall performance. We also seek to help our customers drive By increasing our presence in countries of growth in their market share, in mature as raw materials’ origins, and by being directly well as developing markets, by bringing involved at the source, we can better control innovation, consumer insight, market the full supply chain and therefore improve understanding and commercial expertise quality, traceability and price stability/ to the development of more sustainable competitiveness. Furthermore, we are better fragrance and flavour creations. We want placed to improve our understanding of how

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Performance indicators • Improving environmental conditions on a distribution network from farm to Example: in farming communities factory and beyond. In 2010, we announced the closure of the Bromborough factory in the north west By working closely with farmers, Example: EC9: Understanding and describing of the UK. From the announcement in we improve our understanding of the Since 2012 Givaudan is working significant indirect economic impacts, 2010 until the actual closing of the site in environmental risk factors that may on an Ethical Sourcing initiative for including the extent of impacts 2013, 188 jobs were unfortunately made reduce crop yields – such as pests, vetiver in Haiti. Givaudan is working redundant. However, from its opening, • Economic development in areas flooding and drought. Additionally, we with a local vetiver essential oil a new factory in Makó, Hungary, has of high poverty can use our global know-how to apply producer and a cooperative of vetiver created 326 new jobs so far. best agricultural farming practices Ensuring that farming communities are growers spanning three local villages. to increase crop yields and reduce • Growth opportunities for our prosperous is essential to ensuring Growers are supported to improve the environmental impact. Both can have a customers by using our products continuity of supply. This in turn drives environmental and harvesting practices, positive impact on farming communities customer demand, which increases and consequently the quality of the By responding to customer beyond the crops that Givaudan buys. farmer incomes. roots. The vetiver sourced is certified requirements for more sustainable ESR (Fairness, Solidarity, Responsibility) Example: products and ingredients, we Example: according to Ecocert standards, with We have established a three-way support our customers’ own market For four years, Givaudan has sourced the added benefit that the crop is relationship between Givaudan, the expansion plans. Our innovations – organic vanilla from the Henri Fraise organic and fair trade. French growers’ cooperative France often developed in partnership with & Co. plantation in Madagascar. Lavande and CRIEPPAM, a French customers – can substantiate their Through this strong local presence, Through this close partnership, fragrant plants research organisation, to sustainability claims. we ensure complete supply chain Givaudan can secure its vetiver create a collaborative approach across transparency as well as security of supply and enhance quality through Example: the supply chain to combat the spread supply. As we purchase more crops improved farming and refining practices. Our ylang ylang initiative illustrates of the disease that affects Lavender from sustainable sources, we boost The cooperative concentrates on Givaudan’s ‘virtuous circle’ approach plants. Through this alliance, we have the volume of ethical vanilla, which quality. Givaudan, in turn, supports to ethical sourcing: we address an pre-financed the development of four in turn enhances the local economy. their community. For example, we have endangered supply chain and apply plant nurseries to provide certified, To date we have financed the building repaired the village road, financed by responsible practices. We then share healthy lavender plants from CRIEPPAM of 12 schools. We also supported the vetiver Cooperative Development this knowledge with perfumers and to the members of France Lavande. infrastructure projects including a dam, Fund. Not only did this aid quicker, safer customers. They can share the success Thanks to our long-term involvement, a irrigation construction and installation transportation of crop to distillation of our programmes and the resultant significant number of growers have been wells, providing clean water for more units, but the road also links residents quality to achieve brand differentiation encouraged to become members of the than 5,000 villagers, as well as a health to the outside world – thus expanding and bring exciting new fragrances cooperative. By benefiting from healthy, centre. We co-financed locally hired and the growers’ commercial prospects to to market. Eau Mohéli by Dyptique disease-resistant lavender plants, support trained technicians who assist Malagasy other businesses. was launched in 2013 and contains in selecting the best varieties, and our communities to become self-sufficient • Change in location of operations a significant dosage of responsibly advice on the correct processes for oil through a System of Rice Intensification or activities sourced pure ylang ylang essential production and refining, the farmers are (SRI). They demonstrate best practice oil. This is the first time that the floral able to improve product quality. Due to changing global demand and in the use of green fertilisers to improve scent has been showcased in this way operational factors it is sometimes rice yields, and provide agricultural • Jobs supported in the supply chain by Givaudan. With the guarantee of necessary to close factories. training for both school children and distribution chain quality and a reliable supply, customers’ Such decisions are not taken lightly and adults. creative opportunities are flourishing. Givaudan buys over 10,000 raw and we are aware of the personal and materials from over 2,000 raw economic impact this has on the lives material suppliers. The movement of our employees. Where possible we and distribution of these goods rely try to transfer jobs.

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Environment In this section:

25 Materials This section concerns the 26 Energy 28 Water environmental dimension of 28 Biodiversity sustainability and Givaudan’s 29 Emissions, effluents and waste 32 Products and services impacts on living and non-living 32 Compliance natural systems, including ecosystems, 33 Transport land, air, and water.

Source: GRI 3.1 Sustainability reporting guidelines – Part 2 – Environmental – page 27

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Materials Progress in 2013 flavours materials. The initiative introduces How we manage this issue two new sourcing models: Collection Communicate with all suppliers about Givaudan’s Procurement Division monitors Why it’s material to us Networks and Farming Partnerships. procurement requirements relating to and manages supply chain risks arising from The former enables Givaudan to team up Responsible sourcing of raw materials social responsibility raw material purchases. There are three main with local producers and collect crops at is an important element of Givaudan’s ways we raise standards in our supply chain: All suppliers are informed of our sustainability source. Farming Partnerships allow Givaudan Sustainability Programme, and a requirements through a Global Vendor to collaborate with plantation owners to 1. Global Vendor Expectations: As key issue for many of our customers Expectations document, which was develop and purchase unique and exclusive a signatory to the UNGC, we use our who increasingly want assurances of first distributed to all suppliers in 2010. qualities of iconic ingredients. Both scenarios Global Vendor Expectations document responsible supply chain practices, We recently revised this document to reflect are characterised by alliances with local to notify raw material suppliers that traceability and provenance. supply chain risks such as anti-corruption, suppliers, and facilitate the supervision of the they need to comply with its principles. money laundering and human trafficking. production process. All suppliers are informed of our It will be communicated to all suppliers sustainability requirements through Our commitments Patchouli in Malaysia: In 2012 by 2014. this document. Givaudan signed an agreement with Our ultimate sourcing aspirations are to: Conduct audits with 200 of our top GaiaOne and the Kebun Rimau SDN BHD 2. Sedex and SMETA: We encourage • Expanding our responsible sourcing 400 suppliers by 2015; 200 of our top group in the Malaysian state of Sabah, on selected suppliers to improve initiatives ensures security of supply; 400 suppliers to have joined the Sedex the island of Borneo. A key component of performance. One way we do this is programme by 2015 our joint Ethical Sourcing commitment is by inviting suppliers to register with • Working with our suppliers on biodiversity, to ensure that crop cultivation Sedex, which is a data-sharing platform sustainability throughout our value chains In 2013 we surpassed our 2015 objective to methods are in harmony with Borneo’s to improve supply chain practices. contributes to our customers increasing have 200 top suppliers register with Sedex. rich environmental heritage. Some then voluntarily go on to complete supply chain requirements; We now have a total of 248 key suppliers the Sedex Members Ethical Trade Audit registered with Sedex. These suppliers Develop third-party certification projects • Conducting regular reviews of (SMETA) which requires compliance represent 62% of our raw materials spend. for raw materials our portfolio and implementing in four key responsible sourcing pillars improvements through our ethical Identify and develop additional Vetiver in Haiti: Since 2012, Givaudan is including Labour Standards, Business sourcing initiatives; and sustainable sourcing initiatives working on an Ethical Sourcing initiative on Integrity, Environment and Health & vetiver in Haiti. Givaudan is working with Safety. Non-compliance with these • Gather information on origin of our The following are two sustainable sourcing a local vetiver essential oil producer and standards is not an option for Givaudan. ingredients to contribute to regulatory initiatives we developed in 2013: a cooperative of vetiver growers spanning One of the benefits of SMETA is that requirements, food safety and Origination initiative: In 2013, we added three local villages. Growers are supported ‘an audit for one is an audit for all’. issue management. a new dimension to the Ethical Sourcing to improve the environmental and harvesting Across AIM-PROGRESS this process is programme by establishing a dedicated practices, and consequently the quality of known as Mutual Recognition (MR), and Origination procurement team to manage the roots. The vetiver sourced is certified ESR it helps reduce supplier ‘audit fatigue’. the sourcing of selected crops directly in (Fairness, Solidarity, Responsibility) according Internally, these processes are managed the countries of origin. Origination is about to Ecocert standards, with the added benefit by procurement. Our category managers, being as close to the source as possible – to that the crop is organic and fair trade. located around the world, play a vital role gather market intelligence which in turn drives in helping to ensure compliance. security of supply and innovation. It also gives us greater control over the quality and provenance of our unique fragrance and

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3. Ethical sourcing initiatives: Suppliers Energy How we manage this issue that provide our business-critical Performance indicators In 2013, our Eco-Efficiency Leadership natural ingredients are covered by our Why it’s material to us Team (EELT) continued to encourage local own Ethical Sourcing programme. Givaudan’s stated vision is to Green Teams and local site Eco-Efficiency Our pioneering Ethical Sourcing EN3: Direct energy consumption continuously drive operational Management Teams to further develop and initiatives aim to achieve a medium by primary energy source excellence without compromising update site improvement plans. Plans are and long-term supply of unique raw the environment. This is good for the now in place at most sites. Our EELT also materials in Australia, Laos, Venezuela, 2009 2012 environment, and good for business. reconfirmed the need for consideration (restated) (restated) 2013 the Comoros Islands, Haiti, France of the eco-efficiency aspects of planned and Madagascar. Givaudan’s Ethical Direct energy: budgeted investments in the Capital Sourcing programme addresses both from primary Our commitments Expenditure process. sources (GJ) 1,632,545 1,686,925 1,739,829 social compliance and supply risk, and covers materials with a strategic • Improve eco-efficiency of factory Internal monitoring and reporting of role in our supply chain. Supply chain manufacturing sites with a focus on performance via the Givaudan management EN4: Indirect energy consumption solutions for these materials are tailored greenhouse gas emissions, waste and cycle is a continuing key success factor by primary energy source by region but also encompass the water and reduce our overall footprint in our eco-efficiency gains. This involves 2012 four key pillars of Labour Standards, against a 2009 baseline focusing on target setting, developing and documenting 2009 (restated) 2013 Business Integrity, Environment and eco-efficiency for energy, carbon improvement initiatives and performance Health & Safety. Givaudan’s Origination emissions, incinerated and land-filled monitoring through regular reporting by Indirect energy: procurement team, set up in 2013, waste, and municipal and groundwater. individual sites aligned with the requirements purchased takes this commitment to new levels, and principles of ISO 14001 Environmental electricity and Progress in 2013 and is particularly focused on alleviating Management System. To date, five Givaudan steam (GJ) 897,286 962,744 1,003,056 supply risk. Energy consumption: 20% reduction, manufacturing locations have been certified per tonne of product, by 2020 against against the ISO 14001 standard. baseline year 2009 13.4% (against restated 2009 baseline). During 2013 the energy per tonne figure improved from -10.7% to the stated -13.4% as a result of further efficiency improvements implemented by local Green Teams and local engineering activities. Some examples of this are described below.

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Performance indicators Improving environmental performance certificate energy grade and certificate • the Netherlands, with 22% electricity at Jaguaré, Brazil number. The map has already highlighted consumption now green as compared Jaguaré has been measuring its the need for additional utilities metering, to 2012, is saving more than 1,600

EN5: Energy saved due to conservation environmental performance since early as well as irregularities in the readings and tonnes of CO2 per year; and and efficiency improvements 2000. With the introduction of our ambitious differences between our meter readings and • Spain plans to use 100% green Company-wide 2020 eco-efficiency goals, our billed data. This has led to a complete electricity by 2014 which will save a 2012 we recognised the need to develop a review of the accuracy of our meters and (restated) 2013 projected 2,000 tonnes of CO per year. clear plan of action to address areas of the accuracy of our billed meters. It has also 2

Energy saved inefficiency. A multi-functional team of provided an invaluable tool when explaining The CO2 emission load per purchased kWh of (per tonne 12 Givaudan employees, representing our energy use to external contacts and electricity further reduced by 3.3% compared of product) since 2012 -10.7% -13.4% our Flavours and Fragrances Divisions, for raising energy-awareness among to 2012, while against baseline this figure is operations, engineering, procurement staff members. 10.5%. Of all electricity purchased about 24% and EHS began the process by looking is produced from renewable sources, while Improving the efficiency of EN6: Initiatives to provide energy- at the site’s consumption data. Site Eco- 46.5% is carbon free (45% in 2012). manufacturing operations efficient or renewable energy-based Efficiency Plans (SEEP) were then created, products and services, and reductions EN7: Initiatives to reduce Moistening the air with water, rather than outlining potential projects and studies in energy requirements as a result of indirect energy consumption and steam at Naarden, the Netherlands regarding process improvements. these initiatives reductions achieved Bio-filters in the manufacturing process To deliver these projects we formed are essential to minimise odour emissions partnerships with external environmental Buying in green energy to Also in 2013 one of the bought-in services and require a high-humidity environment, services suppliers, local environmental reduce emissions was outbound transport of finished commonly achieved using steam, which agencies and customers. Through the product to our customer. During 2013 the Givaudan Indirect Material & Service Suppliers in turn requires energy to heat the water. improvement programme that followed, so carbon footprint related to shipments in (IM&S) has agreed to buy green energy that At Givaudan’s Naarden facility, in the far we have eliminated and avoided about EAME, NOAM and Singapore was about will meet our electricity needs and reduce Netherlands, the local Green Team CHF 100,000 in operational costs through 39,700 tonnes of CO . This is the second our carbon footprint. Electricity accounts 2 converted the process from steam to a the savings identified. Furthermore, we consecutive year that we are able to report for 33% of the total energy used across the high-pressure water system based on have also increased our understanding a reduction in footprint (8%) despite an Group, but equates to about 50% of our total developing a ‘water fog’. Moistening the air of consumption trends and have created increased sales volume. (See also Products CO emissions. The initiative began in 2011 in this way saves energy because the need strong working relationships across 2 and services section). in Europe, and was rolled out to the US in to heat water to create steam is avoided. the business. 2012. Guidelines enable our purchasing teams The result is also a reduction in CO 2 Eco-efficiency at Ashford, UK to buy greener energy, moving away from emissions. The new process incorporates a At our Ashford factory in the UK, we have electricity produced from traditional fossil fuels, framework, utilising spray nozzles attached developed a site energy map and associated like coal and oil, to natural gas and renewable to a high-pressure pump. With the new building energy displays to allow anyone energy sources. Highlights of the programme nozzle system, near 100% humidity can to easily identify our energy and water use to date include: be achieved. Producing steam requires across the site and use this information as 300,000m3 of natural gas per annum, so this • Germany, which sources 100% of its the basis for suggesting reduction initiatives. innovation is a significant saving on energy electricity from green sources, is saving The map includes quarterly gas, steam, costs and carbon emissions. at least 1,900 tonnes of CO this year; electricity and water use of each building, 2 along with the building’s colour-coded EPC

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Water How we manage this issue Internal monitoring and reporting of bacteria that weakens the plant until it dies performance via the Givaudan management threatened supply of this important natural In 2013, our Eco-Efficiency Leadership Why it’s material to us cycle is a continuing key success factor ingredient. Recent European climate changes Team (EELT) continued to encourage local in our eco-efficiency gains. This involves have caused proliferation of the insect, which Givaudan’s stated vision is to Green Teams and local Site Eco-Efficiency target setting, developing and documenting spreads the disease and further weakens continuously drive operational Management Teams to further develop and improvement initiatives and performance plants through periods of drought. excellence without compromising update site improvement plans. Plans are monitoring through regular reporting by the environment. This is good for the now in place at most sites. Our EELT also As a direct result of the need to find a individual sites aligned with the requirements environment, and good for business. reconfirmed the need for consideration solution to the increasing threat to lavender and principles of ISO 14001 Environmental of the eco-efficiency aspects of planned plants, Givaudan has expanded its Innovative Management System. budgeted investments in the Capital Naturals programme and extended its Our commitments Expenditure process. involvement in the lavender supply chain. Building on relationships that started in 2007 • Improve eco-efficiency of factory Biodiversity with the local growers cooperative, France manufacturing sites with a focus on Lavande, Givaudan has also become a greenhouse gas emissions, waste and Why it’s material to us member of CRIEPPAM, a French fragrant water and reduce our overall footprint Some of the raw materials we use in our plants research organisation, and has built against a 2009 baseline focusing on creations are considered as endangered a three-way partnership in which Givaudan eco‑efficiency for energy, carbon species or at risk – for the longevity finances the supply of certified healthy emissions, incinerated and land-filled of our business we must ensure the lavender plants from CRIEPPAM to the waste, and municipal and groundwater. longevity of these natural ingredients. cooperative members of France Lavande. The partnership works to encourage farmers Progress in 2013 to join the cooperative, and to collaboratively How we manage this issue evaluate and improve lavender quality each Water use: 15% reduction, per tonne year to strengthen this crop in the future. of product, by 2020 (for municipal and Performance indicators We work closely with NRSC (Natural groundwater) against baseline year 2009 Resources Stewardship Circle), who The number of France Lavande promote fair and sustainable cooperation cooperative members continues to grow. –6.4% (against 2009 baseline). During 2013 EN8: Total water withdrawal with indigenous peoples and local Givaudan also continues to financially support the water consumption per tonne figure by source communities while protecting the biodiversity the development of four plant nurseries that deteriorated from -9.0% against baseline and ecosystems of the territories concerned. have supplied part of the plant needs for the to the stated -6.4%. The main reasons are Water Givaudan was a founding member and has 2013 crop in France. In this way Givaudan the increased water consumption at some intake (m3) 2009 2012 2013 been involved since 2008. is able to support the production of healthy sites because of more demanding cleaning Municipal lavender plants and thus protect lavender requirements and the parallel operation of Biodiversity issues are largely managed water 2,286,999 2,513,293 2,615,967 from Provence for the fragrance industry. a factory, for which disclosure was delayed Groundwater 1,070,613 1,073,851 1,318,604 locally. One example of a local partnership because of commissioning problems in a to tackle a biodiversity issue that threatened Municipal and For more information on groundwater 3,357,612 3,587,144 3,934,571 lavender supply is CRIEPPAM in France. new factory. The effect of both aspects did our brands and products not outweigh the efficiency improvements Surface water 7,432,649 5,095,310 5,150,236 Lavender pervades every aspect of life – please see: www.nrsc.fr implemented by local Green Teams and local Total water* 10,790,261 8,682,454 9,084,807 from prestige perfumery through personal engineering activities at other Givaudan sites. * Includes sanitary, cooling and process water care routines to home and fabric care products across the world. In France a

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Emissions, effluents • designing our processes to minimise Performance indicators quality of life of the Aripao community. and waste noise and odour emissions; and Under the agreement signed in 2012, the • reducing the volume of effluents by initial project area of 88,000 hectares Why it’s material to us reducing the intake of water from EN13: Habitats protected or restored (more than 217,000 acres) will expand to municipal and/or groundwater sources. 148,000 hectares (almost 366,000 acres), Givaudan’s stated vision is to Givaudan and Conservation International and the partners will engage at least two continuously drive operational (CI) have been working together since additional indigenous communities and excellence without compromising 2007 through three grant agreements to Progress in 2013 provide income opportunities for at least the environment. This is good for the conserve the Caura Basin of Venezuela 40 additional families. The 64 families environment, and good for business. Direct and indirect CO2 emissions: 25% and improve the collection and of the Aripao community have also reduction, per tonne of product, by 2020 commercialisation of non-timber forest committed to control hunting and illegal (indirect relates to purchased secondary products (tonka beans and copaiba oil). hunting in exchange for patrolling wages, Our commitments energy and not energy used by others, Givaudan and CI’s Conservation Stewards equipment and training, and better access i.e. our raw materials suppliers or Program (CSP) are using conservation • Improve eco-efficiency of factory to markets for tonka beans and other non- transport service providers) agreements to ensure forest conservation manufacturing sites with a focus on timber forest products such as copaiba oil. and support local livelihoods. greenhouse gas emissions, waste and -19.9% (against restated 2009 baseline). Over the next three years, the objective of water and reduce our overall footprint During 2013 the CO per tonne figure The conservation agreement has the partnership is to ensure sustainability 2 against a 2009 baseline focusing on eco- improved from -16.0% to the stated -19.9%, promoted community-based action to by focusing on three pillars: conservation efficiency for energy, carbon emissions, as a result of further efficiency improvements protect biodiversity, and strengthened the of the protected area, community incinerated and land-filled waste and and investments implemented by local Green link between local tonka collectors and empowerment and sustainable use of municipal and groundwater. Teams and local engineering activities. international buyers, while enhancing the natural products. Some examples of this are described on the We want to improve eco-efficiency of factory next page. operations with a focus on greenhouse gas emissions, waste and water. In particular we Total weight of incinerated and land- are focused on: filled waste by type and disposal: 15% reduction, per tonne of product, by 2020 • reducing carbon emissions as far as possible. We are determined to -14.4% (against restated 2009 baseline). achieve year-on-year improvements, During 2013, the waste reduction per tonne with an ultimate aspiration of zero figure improved from -10.7% to -14.4%, as carbon emissions; a result of further efficiency improvements and investments implemented by local Green • encouraging the redesign of resource Teams and local engineering activities. lifecycles so that waste generation is Some examples of this are described on the minimised, with any unavoidable waste next page. products being reused or recycled. Our ultimate aspiration is to achieve zero waste;

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How we manage this issue Biodegradability In 2013, our Eco-Efficiency Leadership Givaudan’s biodegradability programme Performance indicators EN18: Initiatives to reduce Team (EELT) continued to encourage local has been built on the expertise of our greenhouse gas emissions and Green Teams and local Site Eco-Efficiency internationally recognised scientists reductions achieved Management Teams to further develop and who have developed novel methods to EN16: Total direct and indirect Reducing emissions at update site improvement plans. Plans are understand the fate of fragrance raw greenhouse gas emissions by weight Pedro Escobedo, Mexico now in place at most sites. Our EELT also materials in the environment. This has At our Pedro Escobedo site in Mexico reconfirmed the need for consideration resulted in the development and use of GHG emissions 2009 2012 we have switched from heavy fuel oil as of the eco-efficiency aspects of planned biodegradable fragrance materials that (tonnes)* (restated) (restated) 2013 primary energy source to gas, leading to budgeted investments in the Capital today represent over 50% of the total a significant reduction of CO and SO Expenditure process. number of materials used for creation in Scope 1: from 2 2 direct energy emissions. The reductions were achieved 2013. This commitment to environmentally Internal monitoring and reporting of sources 102,465 102,547 103,703 through a contract between MaxiGas responsible materials has enabled Givaudan Scope 2: from performance via the Givaudan management and Givaudan de México, for the supply to meet ever-increasing requirements of indirect energy cycle is a continuing key success factor sources 113,687 110,461 113,247 of natural gas and involved a series of regulators such as REACH in Europe or in our eco-efficiency gains. This involves Total CO 2 technical measures to facilitate the switch the EPA in the USA who are encouraging target setting, developing and documenting emissions 216,152 213,007 216,950 from oil to gas. With the implementation industry to design in safety. As an improvement initiatives and performance 2 of this project, we will eliminate emissions example the US EPA has now recognised * Greenhouse gas data are limited to CO emissions monitoring through regular reporting by of about 375 tonnes of SO2 per annum; Givaudan through their Sustainable Futures individual sites aligned with the requirements EN17: Other relevant indirect of which 106 tonnes already has been Program to be consistently delivering new and principles of ISO 14001 Environmental greenhouse gas emissions by weight realised during 2013. Since the CO2 fragrance materials to the market with high Management System. emissions from natural gas per gigajoule environmentally responsible designs. GHG of heat generated are lower than for heavy Monitoring carbon emissions emissions (approximate fuel oil, we will achieve an annual reduction We participate in the annual CDP survey tonnes) 2012 2013 of 3,700 tonnes per year of CO . This is for investors. Our performance score 2 equivalent to a reduction of 13.5% of the improvement from C to A (the latter Scope 3: emissions of the Pedro Escobedo site, and being the highest on a scale from E-A) Business travel 12,000* 14,950 Scope 3: a reduction of 1.7% of the 2012 emissions demonstrates that we regard the mitigation Outbound of the Givaudan Group. Using natural gas of climate change as a critical issue for our Product 43,300 supplied by pipe instead of heavy fuel business and that we manage our carbon transport** (restated) 39,700 has also eliminated the indirect emissions emissions through rigorous internal data No Scope 3: update generated by the ground transportation of management and the implementation of Commuting 14,700 available the heavy fuel by 100%. improvement initiatives. Scope 3: 49,500 Packaging (restated) 49,875 For further initiatives on greenhouse gas

* The majority of this data was collected through our global travel emissions and reductions achieved, please agent and we added an estimate, based on purchased tickets, to refer to EN5 and EN7. cover the countries in Asia which book business travel locally **The figures include outbound transport by air, ship and road and a significant part of the reduction comes from fewer shipments by air

30 GRI index Profile disclosures Performance Assurance

Performance indicators EN21: Total water discharge by EN22: Total weight of waste by type EN26: Initiatives to mitigate quality and destination and disposal method environmental impacts of products and services, and extent of impact mitigation EN19: Emissions of ozone-depleting Water 2009 2012 Hazardous 2009 2012 discharge (m3) (restated) (restated) 2013 waste (tonnes) (restated) (restated) 2013 Reducing waste across key substances by weight fragrance ingredients To the Incinerated 14,729 16,056 15,827 Starting in 2012, the technical teams at our Ozone- environment Incinerated depleting 2012 without with energy not not three fragrance ingredient manufacturing substances 2009 (restated) 2013 biological recovery * available available 11,039 treatment 7,513,427 5,025,935 4,935,623 sites – Vernier, Sant Celoni and Pedro Land-filled 728 278 376 CFC inventory To the Escobedo – have been tasked with (kg) 15,714 11,644 10,359 environment Recycled 2,656 5,008 5,462 identifying and implementing process CFC 11 after biological Total improvement actions specifically for 20 treatment 1,926,523 1,919,315 1,997,694 hazardous equivalent not key Givaudan ingredients. In addition to inventory (kg) available 674 591 To external waste 18,113 21,342 21,666 CFC loss- treatment cost reduction, we estimate that on a fixed replacement facility without Non-hazardous portfolio basis, these process improvements (kg) 1,393 1,139 1,254 pre-treatment 319,117 407,152 519,419 waste 2009 2012 2013 will yield a 10% reduction in the annual CFC 11 To external waste produced in our ingredients equivalent treatment Incinerated 3,030 3,150 2,974 facility after production units. The initiative is continuing loss/ Incinerated pre‑treatment 1,317,696 1,501,193 1,730,944 replacement not with energy not not in 2014, and further waste reduction and (kg) available 84 70 Total recovery * available available 1,412 benefits aligned with green chemistry discharged Land-filled 6,623 6,820 7,764 water 11,076,763 8,853,594 9,183,679 principles are anticipated. Recycled 16, 370 25,011 28,663 Targeting waste and water reductions at EN20: NOx, SOx, and other significant The slightly higher total volume of discharged water compared to Total non- water intake is caused by the treatment of waste water of a local hazardous Jigani in Bangalore, India air emissions by type and weight community at 1 of our manufacturing sites. waste 26,022 34,981 39,402 Our manufacturing facility at Jigani,

Other * Quantity out of total incinerated waste which is incinerated with an Bangalore, is working towards a 15% by significant air 2009 2012 energy recovery of at least 75% 2020 water reduction target (against a 2009 emissions (restated) (restated) 2013 The % of the total generated waste which is recycled is growing baseline). Additionally, waste programmes from 43% in baseline year to 53% and 56% respectively in 2012 and Nitrogen 2013. The 2013 figures increases to 76% when incineration with are also an ongoing area of focus for the oxides – 75% energy recovery is classified as ‘recycled’. site. In 2013, the Jigani Green Team put NOx tonnes* 104.7 106.9 104.2 in place an eco-efficiency programme Sulphur dioxide – SO2 to further these aims. As a result of the tonnes 358.9 378.6 269.8 programme, Jigani has developed a new Volatile organic waste management system, based on the compounds not principal of waste-type pyramid segregation, (tonnes) available 363.6 436.9 which classifies waste into hazardous and * Quantity is calculated by multiplying the annual fuel consumption non-hazardous materials. As a result the site by the corresponding emission factor for fuel type is able to avoid any land-filling or incineration of waste and the absolute quantity of recycled waste reduced by 85 tonnes.

31 GRI index Profile disclosures Performance Assurance

Products and services (organic, natural, natural identical, etc.), has the Compliance REACH compliance for not only Givaudan potential to be more sustainable over time. but also our customers in the EU as our downstream users. Why it’s material to us In the assessment the impact of more than Why it’s material to us Most of the products we manufacture 10 oral care ingredients were reviewed. The minimum requirement for Givaudan and its partner have more than and sell are used as an ingredient in a Sustainable Business Model is How we manage this issue consumer products. In order to minimise two decades of experience on evaluating to be compliant with local laws and As the leader in our industry, Givaudan is the environmental impact of these environmental impacts, and a total of 11 impact regulations. Givaudan recognises expected to adhere to the highest ethical consumer products, it is important to categories were assessed. Analysed impact the value of operating beyond standards in business conduct. We are understand the impact of our products categories include greenhouse gas and water compliance, including social and committed to complying with all applicable and aim to minimise this impact. emissions, as well as land-use, energy-use environmental compliance. and non-renewable resource-use. laws and regulations in relation to customers, suppliers, shareholders, employees, competitors, government agencies Our commitments Our commitments Product transport and the communities in which it works. • Engage with customers to develop • Full regulatory compliance of all products. These are enshrined in Givaudan’s Principles Also in 2013 one of the bought-in services new technologies for healthier and of Business Conduct and are complemented was outbound transport of finished product sustainable products. by a system of internal policies, procedures, to our customer. During 2013 the carbon Progress in 2013 and guidelines, and overseen by a multi- • Do more with less, promoting innovative footprint related to shipments in EAME, layered compliance organisation. design based on concentrated quality NOAM and Singapore was about 39,700 Fragrance Division compliance

and compacted fragrances. tonnes of CO2. Which is the second with European REACH registration requirements, as they become • Ensure our products are not persistent consecutive year that we are able to report applicable, in 2010, 2013 and 2018 in the environment after their use. a reduction in footprint (8%) despite an increased sales volume. Following on from a We continue to achieve our REACH Our ultimate aspiration is to create products September 2012 started initiative to reduce compliance goals. From the inception of that are designed and developed in line with our reliance on air freight transport, we REACH, through pre-registration and two sustainability principles, and by consequence were successful because the footprint of air phase-in registration deadlines we have are 100% sustainable by design. transport reduced by almost 20% compared met our objectives. The latest deadline was to 2012. Actually, the airfreight footprint 31 May 2013 and was the most challenging changed from just under 55% to 48% of the yet. We succeeded with our registrations. How we manage this issue total footprint. The joint registrations provided perhaps the Our innovation and development teams Eight small transport/packaging related greatest challenge, due to the complexities of regularly conduct sustainability-related incidents have been reported via our external working within substance exchange forums research programmes to design more emergency response provider. With the help and consortia. The process has provided us sustainable products using green chemistry of this provider all incidents were controlled with greater insights into our industry and principles and through sustainability profiling and minor in nature, i.e. limited to minor how others are coping with the challenge studies and lifecycle analysis. For example, leakages or spillages and none led to any and increasing demands made by such in 2013 Givaudan and a strategic supplier negative environmental impact or any regulation. The road ahead will be a greater embarked on a programme to evaluate the occupational hazard. test, with a predicted yearly registration rate sustainability attributes of a typical oral care for the final phase-in deadline (2018) of more flavour formulation. Both companies believe than double that previously undertaken. It is that any product, regardless of its provenance a challenge we intend to meet to ensure 32 GRI index Profile disclosures Performance Assurance

Transport carbon savings through transport and distribution efficiency – in particular through Performance indicators none led to any negative environmental Why it’s material to us shipment consolidation and by changing impact or any occupational hazard. the mode of transport to less carbon Delivery of finished or intermediate Employee commuting: During 2012 intensive forms. Through close cooperation EN29: Significant environmental products to our customers or other an employee survey about commuting with supply chain managers in each of impacts of transporting products Givaudan manufacturing sites is an practices was organised. Based on the the regions, customer care managers and and other goods and materials used important step in our value chain. responses received, the total carbon local site transportation managers, we have for the organisation’s operations, The associated carbon footprint with footprint associated with commuting was consolidated our approach to transportation and transporting members of transport is significant in relation to the estimated at 14,700 metric tonnes of CO . – across air, sea and road freight modes of the workforce 2 footprint of our manufacturing activities. No new survey was done in 2013. transport. The project has also improved Product transportation: With the help consolidation of products distributed between Packaging of finished product: Our of the transport companies we use to production sites and warehouses and SAP systems allow us to retrieve global Our commitments ship products to our customers, we have production sites and customers. data for the different types of packaging established the carbon footprint of our • Sustainable logistics offers opportunities used. Combining these data with outbound transport. In 2013, this figure to improve the efficiency through standard carbon footprint information was approximately 39,700 metric tonnes reduced fuel usage and therefore lower from our suppliers enabled us to estimate which is 8% less than in 2012. This figure transport costs. the 2013 footprint for packaging at includes transport by air, ship and road 49,875 metric tonnes, which is only 0.8% and a significant part of the reduction higher compared to 2012 despite a 6% comes from fewer shipments by air. How we manage this issue production volume increase. Employee air travel: In 2013 employee We monitor the environmental impact air travel was responsible for approximately associated with different transport modes 14,950 metric tonnes of CO emissions. through CO emissions. Contractors who 2 2 Compared to 2012 this is an increase, transport our products are increasingly which in particular featured in the category producing carbon footprint reports, which of long-distance flights. The majority of allows Givaudan to establish a baseline. this data was collected through our global A programme with targets for improvements travel agent and we added an estimate, will be developed from this baseline. In 2013, based on purchased tickets, to cover the we started a programme to reduce reliance countries in Asia which book business on air cargo to transport finished products. travel locally. We continue to investigate ways to reduce our reliance on air freight transport. Eight small transport/packaging related incidents have been reported via our Supply chain project to reduce our external emergency response provider. carbon footprint With the help of this provider all incidents In 2012, we set up a Global Transportation were controlled and minor in nature, i.e. Project to reduce freight spend and share limited to minor leakages or spillages and best practices across the Company. The initiative also focused on identifying

33 GRI index Profile disclosures Performance Assurance

Labour Practices In this section:

35 Employment This section concerns the social 36 Labour/management relations 36 Occupational health and safety dimension of sustainability and 38 Training and education Givaudan’s impacts on, and 38 Diversity and equal opportunity 39 Equal remuneration for women and men responsibilities to, employees of the Company, including how people issues are managed.

Source: GRI 3.1 Sustainability reporting guidelines – Part 2 – Social – page 29

34 GRI index Profile disclosures Performance Assurance

Employment exposure to ensure their career growth, adopting a flexible approach to each person’s Performance indicators Why it’s material to us skills and personal situations, wherever we can. We recently launched ‘Engage’, an Rather than viewing organisational integrated and comprehensive online platform LA1: Total workforce by employment type, employment contract processes as ways of extracting more available to managers and employees that and region, broken down by gender economic value, the best companies centralises the majority of people processes have a purpose beyond creating By employment type related to recruitment, performance economic value. For Givaudan, this and development. Full-time Full-time Part-time Part-time Total Total includes providing meaningful and Region – female – male – female – male – female – male rewarding jobs, and enhancing Compensation and benefits Asia Pacific 937 1,183 7 1 944 1,184 employees’ quality of life. Compensation is a key component of Europe, Middle East, Africa 1,415 2,808 116 40 1,531 2,848 Givaudan’s people management strategy. Latin America 400 765 3 0 403 765 Our philosophy is to provide market- North America 698 1,194 4 0 702 1,194 competitive and fair compensation, while Our commitments TOTAL 3,450 5,950 130 41 3,580 5,991 rewarding employees for individual and • Engage employees in sustainability business achievements. Givaudan’s wide- thinking and practices. ranging benefits package is constantly We are committed to offering a workplace assessed to make sure it is competitive and By employment contract where people are able to achieve their thorough. It includes comprehensive benefits Permanent Permanent Temporary Temporary Total Total Region – female – male – female – male – female – male career aspirations, be rewarded for their to help employees meet their retirement, performance, and be given the best healthcare, income-protection and time- Asia Pacific 926 1,160 18 24 944 1,184 development opportunities. off needs. Europe, Middle East, Africa 1,493 2,775 38 73 1,531 2,848 Latin America 402 757 1 8 403 765 Work-life balance North America 702 1,194 0 0 702 1,194 We published a work-life balance position How we manage this issue TOTAL 3,523 5,886 57 105 3,580 5,991 statement in March 2012. As long-term success is built with the strength Givaudan Engagement Survey of our people, Givaudan aims to equip our Givaudan’s first all-employee Engagement business leaders with the skills they need to Survey aims to measure employee excel while developing and challenging them, engagement across regions and divisions, and rewarding talents in a performance- to understand the key drivers of engagement driven culture which promotes respect, in our Company, and will ultimately openness and diversity. result in focused action plans to work on Recruitment and development identified areas. We are committed to educating our people to achieve their full potential through attractive developmental opportunities, and managing our talent pipeline to ensure the sustainability and leadership position of Givaudan. We give our people the time to learn and the right

35 GRI index Profile disclosures Performance Assurance

Labour/management Performance indicators relations Performance indicators

Why it’s material to us LA2: Total number and rate of new employee hires and employee turnover by LA4: Percentage of employees age group, gender and region Businesses face many uncertainties covered by collective in the rapidly changing global market. bargaining agreements Employment contracts initiated Establishing genuine dialogue with Age range Age range Age range freely chosen workers’ representatives Collective agreement in % Region <30 30-50 >50 Female Male enables both workers and employers Yes 28% Asia Pacific 131 178 14 155 168 to understand each other’s challenges No 72% Europe, Middle East, Africa 239 243 20 174 328 better and find ways to resolve them. Latin America 94 91 3 61 127 North America 65 110 28 66 137 TOTAL 529 622 65 456 760 How we manage this issue Givaudan supports the freedom of employees Occupational health to join trade unions or other employee and safety Employment contracts terminated representative bodies, provided these bodies Age range Age range Age range are properly constituted and in line with Why it’s material to us Region <30 30-50 >50 Female Male local laws and practices. Givaudan does not An essential part of being a responsible discriminate based on employee membership Asia Pacific 47 131 22 98 102 company and employer is the health of, or association with, these bodies and Europe, Middle East, Africa 96 321 145 179 383 and safety of our employees, and the Latin America 52 87 4 52 91 seeks to enter into constructive discussions protection of the environment in which North America 28 108 42 59 119 at all times. One example is the recent we operate. TOTAL 223 647 213 388 695 revision to the European Works Council agreement to take into account the most recent EU directives. Our commitments Turnover rate (%)* We continue to hold regular European • Reduce incidents by strengthening Age range Age range Age range Works Council consultations with a group workplace environment, safety behaviour Region <30 30-50 >50 Total Female Male of employees, which represents work council and awareness. Asia Pacific 13% 8% 10% 9% 10% 9% members from all EU member states where Europe, Middle East, Africa 17% 11% 14% 13% 12% 13% we have operations. The purpose is to Our ultimate health and safety aspiration is Latin America 19% 11% 4% 12% 13% 12% keep employees informed and consulted to eliminate accidents. Our primary means North America 13% 10% 7% 9% 8% 10% about significant structural changes in the to achieving this aspiration is through a TOTAL 16% 10% 11% 11% 11% 12% organisation, and to report any feedback ‘Zero is Possible’ behavioural-based safety to the Executive Committee. Givaudan’s awareness programme designed to develop a * Turnover calculation is based on number of terminations divided by total headcount during the reporting period European Works Council has recently strong culture in which every employee takes established a key sustainability contact/ responsibility for their own safety, the safety of representative in charge of bringing the topic the people around them and the safety of the ‘Sustainability’ to the social dialogue forum. environments in which we operate.

36 GRI index Profile disclosures Performance Assurance

Progress in 2013 • hazardous material compliance (industrial safety, dangerous goods transport, Performance indicators Total recordable cases by Conduct ‘Zero is Possible’ behavioural data compliance management, material region and gender safety programme stewardship, packaging and labelling); Number Number The roll-out of our SafeStart™ personal safety LA7: Rates of injury, occupational • occupational health (identification, of total of total awareness training, which is part of our global diseases, lost days and absenteeism, recordable recordable evaluation and control of potential health behavioural-based safety programme ‘Zero and number of work-related fatalities cases cases hazards in the workplace, medical Region – female – male is Possible’, continued at our manufacturing by region and by gender surveillance and documentation); and commercial locations, as did refresher Asia Pacific 8 12 Health & safety data sessions for those who have already had • process safety management Europe, Middle East, this training. In addition, safety leadership (standardised approaches to process risk 2009 2012 2013 Africa 5 37 Latin America 0 6 coaching continued in 2013. assessment, odour emissions control, Fatalities 0 0 0 North America 2 28 engineering support, internal audits, Number TOTAL 15 83 business continuity planning and global of LTIs 79 36 37 LTI rate below 0.1 by 2020 safety laboratory); and LTI rate 1.03 0.44 0.44 Lost day* rate N/A 9.94 9.61 The 2013 LTI rate remained stable compared • occupational safety (technical safety, Number of LTI rate – Lost day rate by region – to 2012 at 0.44 (very close to our 2013 behavioural-based safety). Restricted Absenteeism target set at 0.43). Significant progress Work Cases With actions visible on a daily basis, the (RWC) 28 19 24 Lost Absen- was recorded for the associated number ‘Zero is Possible’ programme started in Number Region LTI rate day rate teeism of lost days, which was drastically reduced 2009 with the ultimate goal to get to zero of Medical compared to the previous reporting period. Treatment Asia Pacific 0.23 2.50 2.06% occupational incidents. This programme Cases (MT) 28 27 37 Europe, consists of safety leadership training for line Number Middle East, managers and a globally rolled-out employee of Total Africa 0.70 7.43 3.60% How we manage this issue Recordable Latin America 0.25 14.58 1.15% awareness training covering the behavioural Cases (TRC) 135 82 98 North America 0.19 19.07 3.48% Execution of ‘Zero is Possible’, an aspects of occupational health and safety. Total instrumental programme of our Global As part of this programme, we are rolling out Recordable EHS Strategy SafeStart™ training in all our manufacturing Case Rate** 1.76 0.99 1.17 819 803 The execution of our Global EHS Strategy is locations and progressively expanding it to (includes (includes facilitated by our network of local, regional commercial sites. These activities facilitate 184 days 323 days Number of carried over carried over and global EHS professionals, recognised the implementation of proactive behavioural lost days N/A from 2011) from 2012) as valued partners for our operations audits called safety contacts as well as Number of and business teams. Guidance, project periodic workplace inspections. Last but hours worked 15,341,093 16,485,046 16,712,479 *** management support and governance advice not least, every location receives a yearly Absenteeism N/A 2.90% 2.97%**** is provided by our Corporate EHS Centre of pre-defined local safety target aligned with * Number of lost work days resulting from work-related accidents per 200,000 working hours. Calculation based on scheduled Expertise in the field of: and contributing to the global objective in work days lost from the day after the accident accident reductions. ** LTI and TRC are both according to the official OSHA definitions *** 8.4% of these represent external contractors for whom the Company is liable (Temps) **** Compared to the number of normal available working days, includes correction for employees working on a part-time basis

37 GRI index Profile disclosures Performance Assurance

Training and education 1. Culture and onboarding Our commitments Performance indicators 2. People management and leadership • Embrace diversity throughout our Why it’s material to us organisation and create a diverse and 3. Core business skills An employee who receives the inclusive workforce. LA12: Percentage of employees necessary training is better able to 4. Functional excellence receiving regular performance perform his/her job. Continuous training We recently launched ‘Engage’, an and career development reviews, also keeps employees on the cutting Progress in 2013 integrated and comprehensive online platform by gender edge of industry developments. available to managers and employees, which Increase the representation of females Employees who are competent and centralises the majority of people processes in our senior leadership positions on top of changing industry standards related to recruitment, performance and help companies hold a position as a The current percentage of female employees Female 33% development. As part of Engage, a Learning leader and a strong competitor within in Givaudan’s senior leadership positions has Male 26% Management System (LMS) is also now the industry. increased to 17.9% in 2013, an improvement available, which enables Givaudan employees on last year’s performance. to register with courses online. How we manage this issue The Fragrance Division is conducting a Business Master Class to train, educate How we manage this issue We are fostering a learning culture where and develop its Global Sales Force. A similar more and more employees can take stock It is Givaudan’s policy to recruit, employ and initiative is expected to be launched in 2014 of their own skills progress and education promote employees on the sole basis of the within the Flavour Division. needs. Wherever possible, employees deal qualifications and abilities needed for the work with challenging and stretching assignments to be performed, without regard to race, age, and constructive team feedback is becoming sex, national origin or any other non-relevant more widespread. category. We embrace diversity throughout Diversity and equal our organisation and are fully committed to We are keen that Givaudan’s line managers creating a diverse and inclusive workforce. should regard themselves, increasingly, as opportunity ‘talent champions’: they should be committed In particular, we try as much as we can to to offering people flexible and wide-ranging Why it’s material to us promote women into managerial positions, development opportunities so they can and we produce analytics to track progress in Equal opportunity is necessary in maintain and increase their employability this regard (including percentage of women in order to cultivate a set of leaders with and boost their job satisfaction. leadership positions). legitimacy in the eyes of employees. Givaudan continues to work on a Learning It is therefore necessary that the path Our Diversity Position Statement outlines & Development strategy to strengthen to leadership is visibly open to talented our commitment to ensuring a representative capabilities and to develop a high- and qualified individuals of every workforce that reflects the diverse performance culture. This strategy is race and ethnicity. Respecting and communities in which we operate. articulated around four priorities: celebrating diversity also adds value to the experience of working for and with Givaudan.

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Equal remuneration for These elements are reviewed at the senior women and men management level each year. Furthermore, Performance indicators our Principles of Business Conduct state Why it’s material to us that “It is Givaudan’s policy to recruit, employ and promote employees on the sole basis of LA13: Composition of governance bodies and breakdown of employees Companies with a reputation for the qualifications and abilities needed for the per employee category according to gender, age group, minority group compensating men and women equally work to be performed without regard to race, membership and other indicators of diversity may have access to a larger talent pool age, sex, national origin or any other non- Composition governance (Leadership Board and Board of Directors) when recruiting and hiring. Highly- relevant category”. qualified candidates may be more likely Leadership Board/Board % <30 30–50 >50 to consider working for a company if Our Diversity Position Statement they believe opportunities for economic reinforces our commitment to equal pay. Female 2 15% 0 0 2 growth will be available to them as they Male 11 85% 0 1 10 demonstrate their value, regardless of For more information on our Diversity their gender. Once hired, productive Position Statement: workers may be more likely to remain www.givaudan.com/staticweb/StaticFiles/ Employees’ categories and composition of governance bodies GivaudanCom/Publications/Corporate%20 with the organisation if they believe they Male Female Total are being compensated fairly. Governance/Giv_globalDiversityPosStat.pdf <30 30–50 >50 <30 30–50 >50

Senior management 0 69 49 0 15 12 145 How we manage this issue Middle management 27 1,014 353 46 957 157 2,554 Associates 764 2,688 1,021 584 1,435 374 6,866 For Givaudan employees a robust process TOTAL 791 3,771 1,423 630 2,407 543 9,565 is in place to ensure our compensation offering is competitive and enables us to attract, retain and motivate qualified employees. This process includes all markets in which we operate, all job functions and all levels. We achieve this by conducting annual (and in some cases bi-annual) benchmarking studies. Salaries are reviewed and benchmarked at least annually and take into account various macro-economic data (including cost of living) and market evolution. In developing markets and high-inflation environments, we may review compensation more often than annually. We also have a profit sharing scheme which allows our non‑management employees globally to share in Company profits.

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Human Rights In this section:

41 Investment and procurement agreements This section concerns the social 41 Non-discrimination 41 Freedom of association and collective bargaining dimension of sustainability and the 42 Child labour extent to which processes have been 43 Prevention of forced and compulsory labour 43 Indigenous rights implemented by Givaudan to mitigate 43 Assessment incidents of human rights violations, 44 Remediation including how incidents are managed and remediated.

Source: GRI 3.1 Sustainability reporting guidelines – Part 2 – Human Rights – page 32

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Investment and Non-discrimination Freedom of association Performance indicators procurement agreements Why it’s material to us and collective bargaining Why it’s material to us Givaudan strongly believes that fighting Why it’s material to us HR2: Percentage of significant against all forms of discrimination is one As one of the world’s largest buyers in suppliers, contractors and other The fundamental principle of freedom of the most important tasks that any the fragrance and flavour industry, we business partners that have of association and the right to collective organisation can undertake. expect our suppliers to avoid causing, undergone human rights screening bargaining has a positive effect on or contributing to, adverse human rights and actions taken economic development by ensuring impacts as a result of business actions. that the benefits of growth are shared. The number of suppliers that have How we manage this issue We also expect them to address such In a globalised economy, freedom of undergone human rights screening, impacts when they occur. It is important Givaudan is a signatory to the UNGC, which association and the right to collective and corresponding percentage of raw that these expectations are clear, not is a strategic policy initiative for businesses bargaining in particular provide a materials spend from these suppliers- only from a human dignity perspective, committed to align operations and strategies connecting mechanism between Progress in 2013 – 222 and 58% but to manage risk in the supply chain with ten universally accepted principles in the social goals and the demands of the and to protect our reputation. areas of Human Rights, Labour, Environment market place. and Anti-Corruption. Principle 6 seeks the “elimination of discrimination in respect of How we manage this issue employment and occupation”. How we manage this issue Since becoming a signatory of the UNGC, Givaudan’s Principles of Business Conduct Givaudan supports the freedom of Givaudan’s global purchasing function has represent a governing charter for ethical employees to join trade unions or other revised its Vendor Expectation document, behaviour including, amongst others, the fair employee representative bodies, provided specifically stating that as a signatory to the treatment of employees with mutual respect these bodies are properly constituted UNGC, Givaudan holds itself to high ethical and without any form of discrimination. and in line with local laws and practices. and social standards regarding Human Rights, Givaudan does not discriminate based on Additionally, it is Givaudan’s policy to recruit, Labour Standards and Anti-Corruption, and employee membership of, or association employ and promote employees on the that it has the same expectations of its vendors with, these bodies and seeks to enter sole basis of the qualifications and abilities and manufacturers. into constructive discussions at all times. needed for the work to be performed, without One example is the recent revision to the As part of our supplier evaluation process, regard to race, age, sex, national origin or European Works Council agreement to take we are encouraging selected suppliers to join any other non-relevant category. Givaudan is into account the most recent EU directives. the Supplier Ethical Data Exchange (Sedex) furthermore committed to providing a working Our Principles of Business Conduct (section platform. We have now assessed the high-risk environment that is based on mutual 4) state that “It is Givaudan’s policy to recruit, suppliers within our large spend category, of respect among employees, and is free from employ and promote employees on the sole which 248 suppliers joined Sedex (representing harassment based upon categories such as basis of the qualifications and abilities needed 62% of our raw material spend), 199 have race, age, sex and national origin. for the work to be performed without regard completed the Sedex Self-Assessment to race, age, sex, national origin or any other Questionnaire and 100 have been audited. non-relevant category”. Sedex allows us to monitor and validate supplier performance, and are conducted by independent auditors who evaluate suppliers against four pillars: Labour Standards, Health & Safety, Environment and Business Practices. 41 GRI index Profile disclosures Performance Assurance

Givaudan is also a signatory to the UNGC, behaviour including, amongst others, the fair • these policies and procedures shall including ten universally accepted principles treatment of employees with mutual respect conform to the provisions of the relevant Performance indicators in the areas of Human Rights, Labour, and without any form of discrimination. ILO standards. Environment and Anti-Corruption. These Principles also outlaw all forms of Givaudan complies with California Senate exploitation of children, including by suppliers, HR6: Operations and significant Bill 657, the California Transparency in and stipulate that Givaudan will not provide suppliers identified as having Supply Chains Act, which requires retail and employment to children before they have significant risk for incidents of manufacturing companies to disclose the completed their compulsory education. child labour, and measures taken to Child labour precautions they have taken or will take to We will also not knowingly do business with contribute to the effective abolition eliminate slavery and human trafficking from suppliers that use child labour. of child labour Why it’s material to us their supply chains. We select and audit strategic suppliers on All forms of child labour are against Child labour or young workers exposed their sustainability performance to ensure they our Company principles and values For more information on Givaudan’s efforts to to hazardous work can be an issue are in compliance with Givaudan’s high ethical eradicate child labour, human trafficking and and therefore we have a corporate across the entire supply chain covering standards and their own local laws, and that slavery from its direct supply chain see: policy, risk assessment processes and our own operations and our suppliers. they are not using child labour, slaves or those www.givaudan.com/staticweb/StaticFiles/ prevention measures in place to monitor GivaudanCom/Sustainability/Documents/Giv_ subjected to human trafficking. One way this. Eliminating the risk of child labour childLabourHumanTraffickingSlavery.pdf we do this is by participating in the Supplier in our supply chain is of paramount Ethical Data Exchange (Sedex). A core importance to Givaudan. At Givaudan, 100% principle of the Sedex model is the avoidance For more information on our approach to we deeply value the transparent and of operations assessed for risk of unfair or unsafe labour practices, which supplier engagement and capacity building, trusting relationships we have with all see p46 Since 2008 Givaudan has been an includes slavery and human trafficking. our stakeholders, including our raw active user of the Sedex platform which material suppliers, our customers and We respect the Ethical Trade Initiative base incorporates human rights risks in its ultimately our employees, who expect code and audit supplier practices regarding assessments. Since 2010, all Givaudan us to operate at the highest level of child labour using the same code that states manufacturing sites have been corporate social responsibility. ”Child Labour shall not be used”: registered on Sedex and completed Sedex self-assessment questionnaires • there shall be no new recruitment of (SAQ) to share information with child labour; How we manage this issue customers. Givaudan annually reviews • companies shall develop or participate Givaudan is a signatory to the UNGC, which and updates the SAQ. To date, 16 in and contribute to policies and is a strategic policy initiative for businesses Givaudan sites have been audited programmes which provide for the committed to aligning their operations and according to SMETA standards. transition of any child found to be strategies with ten universally accepted Significant suppliers assessed for performing child labour to enable her principles in the areas of Human Rights, risk: In 2013 we surpassed our 2015 or him to attend and remain in quality Labour, Environment and Anti-Corruption. objective to have 200 priority suppliers education until no longer a child; Principle 4 seeks the “elimination of all forms registered with Sedex. These suppliers of forced and compulsory labour”. Principal 5 • children and young persons under 18 represent 62% of our spend. We now seeks the “effective abolition of child labour”. shall not be employed at night or in have a total of 248 key suppliers hazardous conditions; and Givaudan’s Principles of Business Conduct registered with Sedex. represent a governing charter for ethical

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Prevention of forced We audit selected suppliers on their Indigenous rights Assessment sustainability performance to ensure they are and compulsory labour in compliance with Givaudan’s high ethical Why it’s material to us Why it’s material to us standards and their own local laws, and that Why it’s material to us As one of the world’s largest buyers in As the global leader of the fragrance they are not using child labour, slaves or those the fragrance and flavour industry we and flavour industry, it is critical that we We are against all forms of forced and subjected to human trafficking. want to promote fair and sustainable conduct regular workplace assessments compulsory labour. Monitoring and Givaudan is also a participant in the Supplier cooperation with indigenous peoples to have a deep understanding of the eliminating the risk of forced and Ethical Data Exchange (Sedex), a member- and local communities whom we often risks that can be caused by ourselves compulsory labour in our supply chain based organisation whose goal is to drive depend on for a stable and secure or by our suppliers. is important for Givaudan because such improvements in ethical and responsible supply of raw materials. incidents could harm our reputation and business practices in global supply chains. undermine the trusting relationships we A core principle of the Sedex model is the How we manage this issue have with our stakeholders, especially avoidance of unfair or unsafe labour practices. How we manage this issue customers who expect us to operate the We assess selected suppliers to make sure highest supply chain standards. We respect the Ethical Trade Initiative base We realise that our commitment to they comply with local laws and our high code and audit the suppliers’ practices sustainable sourcing must go beyond auditing ethical and business standards, and meet regarding prevention of forced and and the provision of supplier expectations the UNGC and Sedex standards. How we manage this issue compulsory labour using the same code that documentation. We now have several different For example, by 2015, we have committed states Employment is Freely Chosen: ongoing sourcing initiatives, each combining Givaudan is a signatory to the UNGC, which to ask 200 of our 400 top suppliers to security of supply of critical raw materials is a strategic policy initiative for businesses • there is no forced, bonded or involuntary have joined the Sedex programme. We are with delivering benefits for local communities. committed to aligning their operations and prison labour; and also committed to conduct audits of 200 See EC9 for examples of our partnerships to strategies with ten universally accepted suppliers by 2015. So far, 248 suppliers are • workers are not required to lodge deliver direct and indirect economic benefits principles in the areas of Human Rights, already Sedex members and 100 audits have ‘deposits’ or their identity papers with to local communities. Labour, Environment and Anti-Corruption. been conducted. their employer and are free to leave their Principle 4 seeks the “elimination of all forms Givaudan joined NRSC (Natural Resources employer after reasonable notice. of forced and compulsory labour”. Principal 5 Stewardship Circle) in 2008 to help find the seeks the “effective abolition of child labour”. right answers to promote fair and sustainable cooperation with indigenous peoples and For Givaudan the Principles of Business For more information on our approach to local communities, while protecting the Conduct represent a governing charter supplier engagement and capacity building, biodiversity and ecosystems of the territories for ethical behaviour including, amongst see p46 concerned. See Profile Disclosure 4.14 for others, the fair treatment of employees with more details of our involvement in NRSC. mutual respect and without any form of discrimination. These principles also outlaw all forms of exploitation of forced labour.

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Remediation How we manage this issue Internal audits are now complemented by Why it’s material to us audits conducted by third parties relying on As the global leader of the fragrance and the SMETA (Sedex Members Ethical Trade flavour industry, non-respect of human Audit) methodology, which is a compilation rights is unacceptable for Givaudan. of best practices in ethical trade and It is critical that all non-conformities sourcing. The resulting supplier audit reports to our standards are subject to a include observations, non-compliances and remediation plan. examples of good practices to address non- conformances. Any contractors or employees who are found to violate local laws or our high ethical and business standards are subject to a remediation plan.

Supplier selection and risk 1 2 3 4

Givaudan suppliers are categorised and assessed for Inform Assess Audit Improve their potential risk – the extent Global Vendor Supplier Ethical Sedex Members Follow up of to which they have opportunities Expectations Data Exchange Trade Audits Non-Compliances to introduce positive changes in their system. These risks include Document sent to 248 suppliers on Sedex 100 suppliers audited Started in 2013 supply, health and safety all suppliers Representing more than 60% challenges, human rights, of our spend political instability or risk related Major potential risks mitigated to weather, which could destroy a key crop and cripple a community.

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Society In this section:

46 Local communities This section concerns the social 47 Corruption 48 Public policy dimension of sustainability and the 48 Anti-competitive behaviour impacts Givaudan has on the local 49 Compliance communities it operates in, including how interactions are managed and remediated.

Source: GRI 3.1 Sustainability reporting guidelines – Part 2 – Society – page 36

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Local communities the provision of eye medicines for Supporting local communities Other outreach 16 students. • Colombia – Community Forest • Switzerland – Conference on Why it’s material to us Project: Givaudan planted 700 trees to Sustainable Cities: Givaudan’s • United States – Mount Olive reforest nearly 10,000m2 of eroded land head office in Vernier presented its Local communities where we operate Braille Trail clean-up: Givaudan’s at the Ecological Park of Matarredonda, Sustainability Programme to local have the ability to impact our business manufacturing site at Mount Olive, high up in the Andes Mountains. and global audiences at the 7th and they can be impacted by our New Jersey, initiated and funded the European Conference on Sustainable activities. They have therefore been development of a unique walking trail, • Colombia – Olfactive workshop Cities & Towns, held in Geneva on designated as one of the six key called ‘The Braille Trail’, in collaboration for children: Givaudan and the 17-19 April 2013. stakeholders with whom we conduct with members of the Township of Mount Belcorp Foundation sponsored the ongoing stakeholder dialogue. Olive and the State of New Jersey. Canativa Elementary School to provide Build 14 schools in Madagascar by 2014 Givaudan employees actively participated underprivileged children with the At the end of 2013, 12 schools had been built. in the trail’s creation, which enhances opportunity to enjoy perfumery. Our commitments the beauty of the environment, offering a • India – Sustainable care and multi-sensory experience to people with How we manage this issue • Work together with our local communities conservation: The Daman Green Team visual impairments. on projects and causes that benefit the in India raised money for the purchase Actively developing and sustaining communities within which we work. • Singapore – Helping the blind to help of a candle-making machine to help relationships with affected communities and themselves: Givaudan Singapore’s physically and mentally disabled children other stakeholders throughout the life of Green Team collaborated with SAVH learn vocational skills. our operations, and understanding how we Progress in 2013 (Singapore Association of the Visually interact with markets and social institutions, • China – Kidstrong Lighting Project: Handicapped) to incorporate its Mobile are key components of our Sustainability Build partnerships with non-profit Givaudan sponsored the renovation of Massage Team services into our Programme. In particular, we listen to organisations and work on charitable the lighting system in a migrant school in Company events. community representatives to make sure themes: Blindness, Family Nutrition and Pudong, Shanghai. we take their point of view into account, and supporting Local Communities Nutrition • South Africa – Nutrition for children’s integrate this feedback into our sustainability • Brazil – Teaching healthy habits: Givaudan developed a number of home: Givaudan’s Green Team in South activities. On most sites, formal relationships Givaudan organised a series of activities partnerships in 2013 around its three Africa adopted a shelter called the Carl have been established both with local to teach healthy nutrition habits to a charitable themes, including: Sithole Children’s Home. The shelter is authorities and with significant organisations group of 250 students, between the ages situated in Soweto, Johannesburg, and representing neighbours, or working on Blindness of 9 and 13. ‘Meu Pratinho Saudável’ is home to underprivileged children from specific environmental and social issues. • India – Healthy eyes: The Jigani site was created in 2011 by partnering with 2-18 years who are orphans, or have in India sponsored the treatment of 15 a recognised health institution in Brazil, In 2011 we undertook an internal global audit been abandoned or abused by their infants with a disease of the eye affecting called Incor (Instituto do Coração), which to understand the extent of our interaction families. Some are also HIV positive. prematurely-born babies, know as is part of the University of São Paulo. with stakeholder groups such as affected Donations have been given to the home Retinopathy of Prematurity. As a result communities, local government authorities, • China – Kidstrong Nutrition Project: in the form of money, clothing and toys. of the treatment, all of these infants non-governmental and other civil society In partnership with Shanghai Roots Givaudan staff have also volunteered to will have normal eyesight. Jigani also organisations, local institutions and other & Shoots, Givaudan sponsored the assist the home. sponsored eye camps for school children interested or affected parties. The internal purchase and delivery of nutritious of junior schools within a 10km radius of audits included assessments of impacts, and food for around 1,000 children from the site. This included the sponsorship the topics covered environmental and social a migrant school and a kindergarten in of eye checkups for 100 students and programmes and local community complaints Pudong, Shanghai.

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procedures. Every year we monitor this Corruption Conduct. In addition, in 2011 Givaudan programme, in 2013 the results established: introduced a Global Anti-Bribery, Performance indicators Why it’s material to us Gifts, Entertainment and Hospitality • all our sites have on-going interactions Policy addressing the issue in more with local authorities regarding regulatory Ethical behaviour by Givaudan’s detail, including reporting of gifts and SO3: Percentage of employees affairs; and employees, agents and business entertainment. Both documents are trained in organisation’s anti- partners is of utmost priority to • 30 of our 33 manufacturing sites (91%) available to employees in all major corruption policies and procedure Givaudan. We can be held responsible have implemented effective Local Company languages. The policy has not just for our own actions, but also for Basic anti-bribery training as part of Community Development Programmes.* been reconfirmed in 2013; the actions of our agents, consultants our code of conduct training: 96.2% and certain other business partners. • Givaudan has included corruption of all our employees. 96.4% of all our Penalties for violating bribery and and gifts/entertainment in its basic managers and above, including 100% Charitable giving corruption laws are severe, including compliance training for all permanent of our top management (Executive We also monitor charitable spend on every prison sentences and significant fines. Givaudan employees. Moreover, Committee), have completed site. Since 2012 we have implemented In addition, mere allegations of bribery Givaudan has introduced specific the training. an annual budget allocation process for or corruption violations can damage anti-bribery training for employees with charitable giving, for all our sites. Spend is Additionally 4,568 employees including Givaudan’s reputation. material outside stakeholder relations. controlled and consolidated by a sustainability 100% of the top management Both trainings are available in all major controller. Every site manager is responsible (Executive Committee) received Company languages; for the way the site budget is spent. He or additional specific anti-bribery training. How we manage this issue she has some freedom to allocate funding • as part of the monitoring activities, This includes 1,246 managers (92% of to local organisations providing they comply Most countries where we operate have Givaudan has introduced a compliance those invited to take the training as well with Givaudan guidelines and local laws anti-bribery laws, including the UK Bribery helpline to allow employees to report as 100% of our top management). on non‑profit organisations. In 2013 the Act, the US Foreign Corrupt Practices Act compliance issues in confidence. total spend on charitable giving for local and anti-bribery laws and regulations of As at the end of 2013, the compliance communities was CHF 1,342,000. other countries in which Givaudan does helpline has been opened in all countries business or intends to do so. Our actions will worldwide except for France, where be especially scrutinised whenever public Givaudan requires an approval by officials are involved. the competent local authority (CNIL) Performance indicators before it can open its helpline to French Corruption is managed as part of the employees. The helpline is also available Givaudan compliance management system in all major Company languages, and through the following instruments: SO1: Percentage of operations • Givaudan has enacted a procedure for with implemented local community • corruption is one of the risk areas the selection and engagement of agents engagement, impact assessments regularly reviewed by the corporate and distributors, which includes a formal and development programmes compliance officer as part of a due diligence review and minimum compliance risk assessment; 30 of our 33 operations (91%) have requirements for agent contracts implemented effective Local Community • corruption and inappropriate gifts and payments. Development Programmes.* and entertainments are prohibited in Givaudan’s Principles of Business

*Between 2012 and 2013 the scope of our manufacturing sites has changed, with removal of Argenteuil which is no longer a manufacturing site and the addition of Makó as a new manufacturing site 47 GRI index Profile disclosures Performance Assurance

Public policy The Fragrance Division provides leadership For example Givaudan is leading efforts to Anti-competitive to the global industry in regulatory advocacy enhance the regulation of allergens in Europe, Why it’s material to us activities within the International Fragrance as well as to protect the intellectual property behaviour Association (IFRA) – both at the global and of fragrances in both Europe and the USA. As the largest fragrance and flavour Why it’s material to us regional level. company, Givaudan takes responsibility Givaudan believes that lasting to support, and in many cases lead, leadership in the marketplace can only in the development of public policy be achieved in a context of vigorous that impacts the fragrance and competition, characterised by fair and flavour industry. open trade, which is the basis of any free-market economy, and by adhering to high ethical standards throughout How we manage this issue Performance indicators In all cases, Givaudan meets or exceeds the the organisation. In line with Givaudan’s Givaudan supports, and in many cases leads, expectations of regulatory authorities when Principles of Business Conduct, it is industry-wide programmes with international conducting studies to support the safe use therefore in Givaudan’s best interest and industry associations (IFRA and IOFI), and SO5: Public policy positions and of flavour ingredients. its fundamental commitment to ensure many national associations for assuring participation in public policy that at all levels of its organisation The Fragrance Division provides leadership the safe use of flavours and fragrances in development and lobbying any applicable legislation concerning to the global industry in regulatory consumer products. No funds are used to competition, just like any other laws, Givaudan continues to drive advocacy activities within the International benefit organisations of a political nature. should be strictly adhered to. regulatory advocacy activities within Fragrance Association (IFRA) – both at the Givaudan continues to drive the regulatory the International Organization of the Flavor global and regional level. advocacy activities within the International Industry (IOFI). This committee, chaired For example Givaudan is leading efforts How we manage this issue Organization of the Flavor Industry (IOFI). by Givaudan, is working closely with to enhance the regulation of allergens For example, this committee, chaired the European Union (EU) Food Safety Anti-competitive behaviour is managed in Europe, as well as to protect the by Givaudan, is working closely with the Authority and the EU Commission to ensure as part of the Givaudan compliance intellectual property of fragrances in both European Union (EU) Food Safety Authority, a smooth implementation of the most management system through the Europe and the USA. the EU Commission and the European important reforms to flavour regulations in following instruments: Flavour Association (EFA) to ensure a smooth the EU for the past 30 years. SO6: Total value of financial and • anti-competitive behaviour is one of implementation of the most important in‑kind contributions to political The move towards greater consistency in the risk areas regularly reviewed by the reforms to flavour regulations in the EU for parties, politicians and related food additive and flavour regulations are corporate compliance officer as part of the past 30 years. Givaudan also actively institutions by country having positive impacts in the food industry compliance risk assessments; participates in national trade associations in but are resulting in an increase in the No funds are used to benefit organisations the USA (FEMA), Japan (JEFMA) and Europe amount of activity required to register new of a political nature. to respond to questions and issues raised by materials. In all markets, whether in Asia, local and regional health authorities. In each Europe, Latin America or North America, case, Givaudan educates regulators in the Givaudan is actively engaged in dialogue development of sound regulations promoting with the regulators to ensure that sound the safe use of flavourings. scientific methods are being developed to determine the safety of food additives.

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• anti-competitive behaviour is prohibited Compliance 2. Compliance risk assessment: In 2013, Givaudan mandated an expert in Givaudan’s Principles of Business The corporate compliance officer law firm with an independent review of its Conduct. In addition, Givaudan has Why it’s material to us undertakes regular compliance risk compliance management system. The review introduced a Memento of Competition assessment, considering input from confirmed that fundamentally Givaudan’s Ensuring compliance in all our dealings Law addressing the issue in more the local compliance officers and the compliance management system is well – whether in relation to customers, detail including the process to follow central corporate functions, as well as designed, implemented and maintained. suppliers, shareholders, employees, in case of questions. The Memento external developments. Based on the review and in line with the competitors, government agencies or has been reconfirmed in 2013 and concept of continuous improvement, Givaudan communities – protects our reputation, 3. Compliance documents: Based is being translated into all major continues to further develop and strengthen its which has been built upon a rich on the risk assessment, Givaudan company languages; compliance management system. heritage. It also ensures risks are enacts, upholds or amends such • Givaudan has included anti-competitive managed proactively and consistently compliance documents as are deemed behaviour in its basic compliance training wherever we operate in the world. necessary. All major compliance for all permanent Givaudan employees; documents are translated into all major and Company languages. How we manage this issue • as part of the monitoring activities, 4. Awareness and training: Givaudan Givaudan has introduced a compliance Givaudan has created a compliance has introduced a system of compliance helpline to allow employees to report management system to manage compliance training to ensure that employees are compliance issues in confidence. throughout the Givaudan Group. It rests on trained on all relevant compliance areas As at the end of 2013, the compliance five pillars: in accordance with their risk exposure. helpline has been opened in all countries 1. Organisation: Givaudan has appointed 5. Monitoring: As part of the monitoring worldwide except for France, where a corporate compliance officer as well activities, Givaudan has introduced a Givaudan requires an approval by as local compliance officers in every compliance helpline to allow employees the competent local authority (CNIL) country in which it operates. The local to report compliance issues in before it can open its helpline to French compliance officers are the company confidence. As at the end of 2013, the employees. The helpline is also available managers for each local Givaudan compliance helpline has been opened in all major Company languages. company. Besides the general ethical in all countries worldwide except for compliance organisation, there exist France, where Givaudan requires an additional internal organisations for approval by the competent local authority special technical compliance areas (CNIL) before it can open its helpline to such as environment, health and safety French employees. The helpline is also or product regulatory amongst others. available in all major Company languages. The corporate compliance officer reports regularly to the Executive Committee and at least once annually to the Audit Committee of the Board and to the full Board of Directors.

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Product Responsibility In this section:

51 Customer health and safety This section concerns the social 52 Product and service labelling 53 Marketing communications and environmental dimensions of 53 Customer privacy sustainability and the impacts of 53 Compliance Givaudan’s products that directly affect customers, namely, health and safety, information and labelling, marketing, and privacy.

Source: GRI 3.1 Sustainability reporting guidelines – Part 2 – Product Responsibility – page 38

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Customer health How we manage this issue REACH regulation update We continue to achieve our REACH Givaudan has a long history of investment and safety compliance goals. From the inception of in supporting safety evaluation of its raw REACH, through pre-registration and two Why it’s material to us materials for use. Critical data to support use phase-in registration deadlines we have is developed by Givaudan or its suppliers to Ensuring consumer safety for use met our objectives. The latest deadline was enable us to comply with safety regulations of Givaudan’s fragrance and flavour 31 May 2013 and was the most challenging around the world. With our regulatory products is a core responsibility of the yet. We succeeded with our registrations. expertise we not only provide an essential business for ethical and legal reasons. service of advice to our customers, but also The joint registrations provided perhaps the ensure that our products meet or exceed all greatest challenge, due to the complexities of requirements around the world. working within substance exchange forums Our commitments and consortia. The process has provided us Regulatory assessments • Gather information on origin of our with greater insights into our industry and The ingredients we use are subject to ingredients to contribute to regulatory how others are coping with the challenge regulatory assessment by government requirements, food safety and and increasing demands made by such agencies and international organisations issue management. regulation. The road ahead will be a greater worldwide that approve their use based on a test with a predicted yearly registration rate • Ensure Givaudan products are safe for review of their safety profile. For flavours these for the final phase-in deadline (2018) of more people and the environment when used include the US Food and Drug Administration than double that previously undertaken. It is as intended. (FDA); the Flavor and Extract Manufacturers a challenge we intend to meet to ensure Association of the US (FEMA); the European • Promote Health and Wellness through REACH compliance for not only Givaudan Food Safety Authority (EFSA); the International our products. but also our customers in the EU as our Organization of the Flavor Industry (IOFI); downstream users. • Engage with customers to develop new and the Joint Expert Committee on Food technologies for healthier and more Additives of the World Health Organization See also our Principles of Business Conduct – sustainable products. (JECFA). Fragrance materials meet mandatory sections 1, 5 & 9: IFRA requirements for safety in addition www.givaudan.com/Media/Publications/Corp to specific country or regional regulatory orate+Governance+Publications Progress in 2013 requirements such as those of the European Chemicals Agency and US Environmental Fragrance Division compliance Protection Agency. with European REACH registration requirements, as they become We maintain stringent methodologies to applicable, in 2010, 2013 and 2018 assure the safety and quality of our products. To enhance these, and to ensure we meet We continue to achieve our REACH ever-changing regulatory requirements, compliance goals. From the inception of we have developed a SAP-based global REACH, through pre-registration and two Regulatory Compliance Engine (RCE). phase-in registration deadlines we have met our objectives. The latest deadline was 31 May 2013 and was the most challenging yet. We succeeded with our registrations.

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Product and Performance indicators the Compliance Engine is connected with service labelling Performance indicators all commercial systems used for fragrance creation, development and sales. Why it’s material to us PR1: Lifecycle stages in which PR3: Type of product and Marketing and promotion health and safety impacts of Givaudan recognise that health service information required Health and safety is not applicable at this products and services are and safety is key for all of our by procedures, and percentage stage of the product life cycle. assessed for improvement, and stakeholders. Through product labels of significant products and percentage of significant products Use and service and Material Safety Data Sheets we services subject to such and services categories subject to All products delivered to customers can maintain trusted relationships with information requirements such procedures are subject to product information our customers. All products delivered to our customers requirements. Environment and health Product registration/certification are subject to product information and safety information about our products The ingredients we use are subject to requirements and regulations. is made available to the users through How we manage this issue regulatory assessment by government Quality and environmental data product labels and Material Safety Data agencies and international organisations The ingredients used in our formulae are about our products, including safety Sheets. In the Flavour Division additional worldwide that approve their use based evaluated for safety, health and environmental information, is made available to the information is also provided in the format of on a review of their safety profile. impact. This information is disclosed and users through product labels and an Ingredient Declaration and instructions filed with the relevant regulatory bodies. Material Safety Data Sheets. Manufacturing and production for the application. All our products delivered to customers are Our product safety assessment Disposal, reuse or recycling subject to product information requirements programme is designed to ensure that all Finished products are created to comply and regulations. Quality and environmental products are safe for consumer use. At the with all appropriate end consumer product data about our products, including safety core of the programme is a systematic safety and regulations in the markets in information, is made available to the users safety evaluation of the ingredients used which they will be sold. through product labels and Material Safety in our fragrance and flavour products, and Data Sheets. control of their use. All new ingredients are Our programme to establish a evaluated for human and environmental biodegradable palette of fragrance For flavours we can also provide allergen, safety, as required, prior to their use. ingredients began in 2007. We have now nutritional and religious related information. completed the biodegradability screening We maintain stringent methodologies Givaudan operates regional hazardous of all our perfumery ingredients, including to assure the safety and quality of our materials competence centres and in 2012 natural materials. Rich with more than 20 products. To enhance these, and to appointed a global packaging engineer to years’ experience in the biodegradability ensure we meet ever-changing regulatory globally coordinate and reinforce expertise on testing of fragrance ingredients, Givaudan requirements, we have developed a SAP- packaging and labelling activities. has an extensive database on the based global Regulatory Compliance biodegradability of fragrance ingredients. Engine (RCE). The compliance calculation is performed by the Compliance Engine For flavours, all our products are (proprietary technology exclusive to consumed at the end of their life cycle, Givaudan), using calculation technology so should not cause disposal issues. from SAP across all sites and regions;

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Marketing Customer privacy communications Performance indicators See the Principles of Business Conduct – Why it’s material to us section 8 Why it’s material to us Information is one of Givaudan’s most www.givaudan.com/Media/Publications/Corp PR6: Programmes for orate+Governance+Publications valuable assets and we are committed Givaudan recognises the value of having adherence to laws, standards to maintaining strict confidentiality on informed customers and consumers. and voluntary codes related to proprietary customer information and While we are a business-to-business marketing communications, customer projects, as well as to fully (and our marketing communications including advertising, promotion Compliance protect their intellectual property. are not aimed at consumers), Givaudan and sponsorship views the consistency of its marketing Why it’s material to us Marketing communications guidelines communications with the reality of exist to ensure that all marketing How we manage this issue The minimum requirement for a its products and services to be of a communications adhere to all applicable Sustainable Business Model is to crucial importance to ensuring we One of the key aspects of Givaudan’s internal laws and standards and are appropriate be compliant with local laws and maintain trusted relationships with policies and practices is the commitment to and ethical. These Marketing regulations. Givaudan recognises the our stakeholders. maintain strict confidentiality on proprietary Communications guidelines value of operating beyond compliance, customer information and customer projects, comply with ethical standards set aspiring to social and environmental as well as to fully protect their intellectual out by organisations such as the best practice, as well as regulations How we manage this issue property. Information is one of Givaudan’s International Association of Business related to our products. most valuable assets. See PR6, right. Communicators (IABC); the American Marketing Association (AMA) as well In conformity with each employee’s obligation as all codes of advertising standards, of confidentiality, employees must not How we manage this issue which apply to the market where an disclose any confidential information or trade Givaudan ensures that our products meet advertisement appears. These include, secrets acquired during employment with or exceed all requirements around the among others, the guidance of the Givaudan to any third party, unless applicable world. The ingredients we use are subject Federal Trade Commission in the United laws or Givaudan’s business interests to regulatory assessment by government States and the Advertising Standards require such disclosure. In these cases, the agencies and international organisations Authority in the United Kingdom. disclosure of confidential information or trade worldwide that approve their use based on a secrets is subject to the prior conclusion of a review of their safety profile. For flavours these confidentiality agreement with the recipients. include the US Food and Drug Administration Within Givaudan, confidential information (FDA); the Flavor and Extract Manufacturers and trade secrets may be disclosed only to Association of the US (FEMA); the European employees who have a legitimate business Food Safety Authority (EFSA); the International need to know them. To prevent accidental or Organization of the Flavor Industry (IOFI); intentional misuse of confidential information and the Joint Expert Committee on Food or trade secrets, Givaudan’s policy requires Additives of the World Health Organization that computer systems and related services (JECFA). Fragrance materials meet mandatory be appropriately safeguarded. International Fragrance Association (IFRA) requirements for safety in addition to specific country or regional regulatory

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requirements such as those of the European Chemicals Agency and US Environmental Protection Agency. We maintain stringent methodologies to assure the safety and quality of our products. To enhance these, and to ensure we meet ever-changing regulatory requirements, we have developed a SAP-based global Regulatory Compliance Engine (RCE). The compliance calculation is performed by the Compliance Engine (proprietary technology exclusive to Givaudan), using calculation technology from SAP across all sites and regions. The Compliance Engine is connected with all commercial systems used for fragrance creation, development and sales. Givaudan requires that all its employees comply strictly with the applicable laws of the countries in which they operate. Givaudan furthermore expects its employees to adhere to high ethical standards as reflected by these Principles of Business Conduct as well as to any other Givaudan policies that apply to their job.

See also the Principles of Business Conduct – section 1 www.givaudan.com/Media/Publications/Corp orate+Governance+Publication

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Appendix

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Performance Indicators – Environmental

Key performance Indicators 2009 2012 2013 Key performance Indicators 2009 2012 2013 Energy Other data Energy (GJ) Direct energy (from primary sourcesa) 1,632,544.80 1,686,925.30 1,739,828.60 Nitrogen oxides – NOx tonnesg 104.70 106.90 104.21 Indirect energy: purchased electricity & steam 8 97,28 6.10 962,744.40 1,003,056.10 Sulphur dioxide – SO2 tonnes 358.90 378.60 269.80 Total energy 2,529,830.90 2,649,669.70 2,742,884.70 VOC (tonnes) – 363.63 436.90 Energy efficiency Direct energy efficiency 5.29 4.66 4.5036 CFC inventory (kg) 15,714.05 11,643.95 10,358.77 (GJ/tonne Indirect energy efficiency 2.91 2.66 2.60 CFC 11 equivalent inventory (kg) – 674.04 591.19 production) Total energy 8.20 7.32 7.10 CFC loss-replacement (kg) 1,393.14 1,139.38 1,253.64

CO2 emissions CFC 11 equivalent loss/replacement (kg) – 84.12 69.89

CO2 emissions Scope 1: from direct energy sources 102,464.70 102,546.50 103,702.90 Production b (tonnes) Scope 2: from indirect energy sources 113,6 87.0 0 110,460.80 113,247.20 Production quantities 308,466.70 361,949.30 386,319.80

Total CO 2 emissions 216,151.70 213,0 07.3 0 216,950.10 a includes natural gas (0.0345 GJ/m3), light fuel (36.12 GJ/m3), heavy fuel (39.77 GJ/m3), liquid petroleum gas (22.65 GJ/m3), town gas CO2 emissions Scope 1: from direct energy sources 0.3322 0.28 0.2684 (0.0186 GJ/m3) efficiency (tonnes CO2/ Scope 2: from indirect energy sources 0.3686 0.31 0.2931 b tonne of production) Greenhouse gas data are limited to CO2 emissions Total CO 2 emissions 0.7007 0.59 0.5616 c Among the quantity of HW and non-HW incinerated, this is the quantity incinerated with energy recovery in tonnes on condition that at least Waste 75% of energy is recovered Hazardous waste Incinerated 14,728.60 16,055.89 15,827.25 d includes incinerated and land-filled waste (HZ and NHZ) (tonnes) c Incinerated with energy recovery – – 11,038.71 e includes sanitary, cooling and process water Land-filled 728.36 278.24 376.19 f includes municipal and groundwater Recycled 2,655.91 5,008.29 5,462.16 g quantity is calculated by multiplying the annual fuel consumption by the corresponding emission factor for fuel type Total hazardous waste 18,112.87 21,342.42 21,665.60 Non-hazardous Incinerated 3,029.70 3,150.30 2,974.30 waste (tonnes) Incinerated with energy recoveryc – – 1,412.40 Land-filled 6,622.60 6,819.70 7,76 4.10 Recycled 16,370.10 25,011.10 28,663.20 Total non-hazardous waste 26,022.40 34,981.10 39,401.60 Total incinerated and land-filled waste (HZ and NHZ) 25,109.26 26,304.13 26,941.84 One-off waste – 10,295.60 30,944.00 Waste efficiencyd (tonnes of waste/ tonne of production) 0.08 0.07 0.07 Water intake Water intake Municipal water 2,286,998.90 2,513,293.10 2,615,966.80 (m3) Ground water 1,070,612.90 1,073,851.10 1,318,603.70 Total municipal and groundwater 3,357,611.80 3,587,144.20 3,934,570.50 Surface water 7,432,649.00 5,095,310.00 5,150,236.00 Total watere 10,790,260.80 8,682,454.20 9,084,806.50 Water efficiencyf (m3/tonne of production) 10.88 9.91 10.18 Water discharge To the environment w/o biological treatment 7,513,426.80 5,025,934.50 4,935,622.60 (m3) To the environment after biological treatment 1,926,523.00 1,919,314.50 1,997,693.60 To external treatment facility w/o pre-treatment 319,117.0 0 407,152.0 0 519,418.60 To external treatment facility with pre-treatment 1,317,696.40 1,501,192.60 1,730,944.00 Total discharged water 11,076,763.20 8,853,593.60 9,183,678.80

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Performance indicators – Environmental

2009 (as % 2012 (as % published in 2009 change published in 2012 change Key performance indicators 2012 SR) corrected 2009 2012 SR) corrected 2012 Energy (GJ) Total energy 2,529,877.0 0 2,529,830.90 -0.001 2,643,803.00 2,649,669.70 -0.2

Total CO 2 emissions 215,867.0 0 216,151.70 0.33 212,650.00 213,0 07.30 0.2 Waste Hazardous waste (tonnes) Incinerated 14,729.00 14,728.60 0.00 16,047.0 0 16,055.89 0.1 Recycled 3,062.00 2,655.91 -13.30 4,977.0 0 5,008.29 0.6 Total hazardous waste 18,519.00 18,112.87 -2.20 21,302.00 21,342.00 0.2 Non-hazardous waste (tonnes) Incinerated 3,286.00 3,029.70 -7.8 0 3,235.00 3,150.30 -2.6 Land-filled 6,487.0 0 6,819.70 5.1 Recycled 15,962.00 16,370.10 2.60 24,941.00 25,011.10 0.3 Total non-hazardous waste 25,871.00 26,022.00 0.60 34,663.00 34,981.10 0.9 Total incinerated and land-filled waste (HZ and NHZ) 25,366.00 25,109.00 -1.00 26,047.0 0 26,304.00 1.0 Water discharge (m3) To the environment after biological treatment 1,846,091.00 1,926,523.00 4.40 1,824,272.00 1,919,314.50 5.2 To external treatment facility w/o pre-treatment 271,213.00 319,117.0 0 17.70 362,086.00 407,152.0 0 12.4 To external treatment facility with pre-treatment 1,365,601.00 1,317,696.40 -3.50 1,546,259.00 1,501,192.60 -2.9 Total discharged water 10,996,332.00 11,076,763.00 0.73 8,758,552.00 8,853,594.00 -1.1 Other data Sulphur dioxide – SO2 tonnes 360.70 358.90 -0.50 384.60 378.60 -1.6 VOC (tonnes) – – – 370.60 363.63 -1.9 CFC inventory (kg) 15,713.00 15,714.05 0.00 10,585.00 11,643.95 10.0 CFC 11 equivalent inventory (kg) – – – 641.00 674.04 5.1 CFC loss-replacement (kg) 1,393.00 1,393.14 0.00 1,080.00 1,139.38 5.5 CFC 11 equivalent loss/ replacement (kg) – – – 81.00 84.12 3.9 Production Production quantities (tonnes) 307,619.00 308,466.70 0.30 363,157.00 361,949.30 -0.3

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Assurance

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GRI Index/UN COP/Assurance

The principles of the UN Global Compact

The UN Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment, and anti-corruption:

Human rights Principle 1 Businesses should support and respect the protection of internationally proclaimed human rights Principle 2 Make sure that they are not complicit in human rights abuses

Labour Principle 3 Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining Principle 4 The elimination of all forms of forced and compulsory labour Principle 5 The effective abolition of child labour Principle 6 The elimination of discrimination in respect of employment and occupation

Environment Principle 7 Businesses are asked to support a precautionary approach to environmental challenges Principle 8 Undertake initiatives to promote greater environmental responsibility Principle 9 Encourage the development and diffusion of environmentally friendly technologies

Anti-corruption Principle 10 Businesses should work against corruption in all its forms, including extortion and bribery

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