GROWING TOGETHERWITH PURPOSE
covid-19

Our purpose at the heartof our response

Creations

The fishless wave
Ensuring sustainability forthe future of perfumery

NaturePutting our ingredients under the
microscope as part of our climate action

PeopleCaring for our people during the crisis

Communities

15,852 employees as a force for good

2020

Integrated
AnnualReportKey figures

Key figures

SUSTAINABLE PERFORMANCE REVIEWFor the year ended 31 December
In millions of Swiss francs, except for environment and social data

2020

2019

PercentagechangeGroup sales

6,322

6,203

1.9%

Like-for-like sales growth

4.0%

5.8%

Economic

Gross profit

2,659

2,530

as % of sales

42.1%

40.8%

EBITDA ¹

1,397

1,275

as % of sales

22.1%

20.6%

Operating income
as % of sales
Income ²
as % of sales

996

920

15.8%

14.8%

743

702

11.8%

11.3%

Operating cash flow

1,133

1,136

as % of sales

17.9%

18.3%

Free cash flow

811

787

5.1%
9.6%
8.3%
5.9%
(0.3%)
3.0%

as % of sales

12.8%

12.7%

Total assets

10,658

10,396

2.5%

Net debt

4,040

3,679

9.8%

Leverage ratio

50%

47%

Share price as of last trading day of December (CHF)

3,730

3,031

23.1%

64

62

3.2%

80.59

76.17

5.8%

Absolute GHG Emissions scope 1 + 2 ⁶(30%)(19%) ⁵

Water efficiency ⁷

(31%)

(28%)

Waste efficiency ⁸

(14%)

(8%)

Renewable electricity

81%

75%

Cash dividend ³ (CHF)
Earnings per share − basic (CHF)
Environmental ⁴

SocialNumber of employees as at 31 December (FTE)

15,852

14,969

Women in total work force

39%

39%

Women in senior management

25%

26%

Turnover rate

9%

10%

Lost time injury rate

0.25

0.22

Main direct suppliers assessed via SEDEX

82%

80%

Givaudan – 2020 Integrated Annual Report

5.9%

4.5%

1. EBITDA defined as Earnings
Before Interest (and otherfinancial income (expense),net), Tax, Depreciation andAmortisation, corresponds
to operating income before
depreciation, amortisation andimpairment of long-lived assets.
2. The income is 100%
attributable to equity
holders of the parent.
3. 2020 dividend subject toshareholder approval at theAGM on 25 March 2021.
4. 2020 figures are for new
12-month reporting period:
Q4 2019–Q3 2020.
5. Assured 2019 figures andrestated in 2020.
6. Compared to baseline year 2015.
7. Municipal and groundwater(m³) per tonne of production,compared to baseline year 2009.
8. Tonnes of incinerated andlandfill waste per tonne ofproduction, compared tobaseline year 2015.
Note: Like-for-like excludes theimpact of currency, acquisitions
and disposals.

Highlights 202020162020
Strategy
SUCCESSFULLYDELIVERED

SALES
CHF
million

6,322

FREE CASHFLOWAVERAGE ORGANICSALES GROWTH

AVERAGE FREE CASH
FLOW AS % OF SALES

4.9%

12.6%

SALES GROWTH
LFL¹

EBITDA MARGIN
AS % OF SALES

+

4.0 %

FREE CASH FLOW
AS % OF SALES

22.1%

PROPOSED DIVIDENDPER SHARE ²

811

12.8%

CHF

WOMEN IN SENIORMANAGEMENTRENEWABLE
ELECTRICITY

GHG EMISSIONSSCOPE 1 + 2 ³

CHF
million

64.00

25%

81%

–

SEDEX COMPLIANCE
RATE OF AUDITED
SUPPLIERS

REDUCTION OF
LOST TIME INJURIESSINCE 2009 ⁴

GHG EMISSIONSSCOPE 3 ³

–

+

85%

76%

30%
11%

1. Like-for-like excludes the impact of currency, acquisitions and disposals.
2. Subject to shareholder approval at the AGM on 25 March 2021.
3. Compared to baseline year 2015.
4. The reduction in lost time injuries is estimated based on the Lost Time Incident Rate (LTIR).

2020

performance
During 2020, the impact
of covid-19 became
global. The Givaudan
purpose was at theheart of our responseto the pandemic as we
focused on supporting
our employees andcommunities and on
maintaining ouroperations and global
supply chain.

About Givaudan

About Givaudan
Growing together with purpose
Givaudan is a global industry
leader creating game-changing
innovations in food andbeverage, and inspiring
creations in the world of scentand beauty. We operate in the
expanded market space offlavour & taste, functional &nutritional ingredients, andfragrance & beauty.

With our heritage stretching back over 250 years, we have along history of creating and innovating scents and tastes. Our
creations inspire every day emotions and delight millions ofconsumers the world over. We are committed to driving
purpose-led, long-term growth with the intention ofincreasing our positive impact on the world by innovating
sustainable solutions while showing our love for nature andleading the way to improve happiness and health for people.
The Company has two business activities, Taste & Wellbeing
and Fragrance & Beauty, reflecting Givaudan’s purpose ofcreating for happier, healthier lives, with love for nature. These
names were evolved in 2020 and are aligned with the divisions’2025 strategic ambitions to shape the future of food,fragrances and beauty by becoming the innovation and cocreation partner of choice to our customers.
.

Taste & Wellbeing

Going beyond great taste tocreate food experiences that dogood and feel good – for body,mind and planet.

Fragrance & Beauty

Craftsmanship, creativity andpassion to bring you inspiring
creations in the world of scentand beauty.

RECOGNITION
Givaudan is recognised by external organisations as a company acting as a force for good:

Committed
to B Corp
Certification,
the goldstandard forgood business.

CDP double 'A' rating forclimate action and water
stewardship for thesecond consecutive year.

Givaudan – 2020 Integrated Annual Report

CDP leader
board
recognition
for supplierengagement.

Inclusion in FTSE4Good
Index Series, ranking
us in top 1% performers
among peers.

Awarded highest
accolade, EcoVadis
Platinum medal,
with score of 75/100,
ranking us in top 1%.

About this report 1

About this report
Integrated thinking and actingThis report marks the successful achievementof our 2020 ambitions. In delivering responsible
growth and shared success for our stakeholders
within and beyond the Company, we arestrongly supported and sustained by our
purpose: ‘Creating for happier, healthier lives
with love for nature. Let’s imagine together.’
It is a compass to guide our choices and set
strategic goals. In the following chapters ournarrative and case studies outline the value
creation in the focus areas of our purpose.
Our senior leadership acknowledges our
responsibility for ensuring the integrity of
our Integrated Annual Report, which we
believe addresses all matters that have, or
could have, a material effect on our ability to create value.
We have applied our collective mind to the preparation andpresentation of information in this integrated report, which
has been prepared in accordance with the International
Integrated Reporting Framework (<IR> Framework).

Calvin Grieder
Chairman

Gilles Andrier
Chief Executive Officer

2020 REPORTING
SUITE▸▸ Integrated Annual Report▸▸ Governance, Complianceand Financial Report▸▸ Integrated Annual Report
Highlights▸▸ Online Integrated Report▸▸ GRI Sustainability Report

FRAMEWORKSAPPLIED▸▸ Integrated Reporting
Framework from the IIRC▸▸ GRI Standards▸▸ IFRS▸▸ SIX Directive Corporate
Governance▸▸ Swiss Code of Best
Practice for Corporate
Governance

REFERENCES USED
References toother pages in thisreport, otherreports, documentsor our websites formore information
Indicates UN
Sustainable
Development
Goals Givaudan
contributes toGivaudan – 2020 Integrated Annual Report

2

Table of contents

4

6

Table of contents
STRATEGYFINANCIALSCREATIONSNATURE

4

Chairman’s introduction

32

6

CEO interview

50 Creating value for ourcustomers

10

Delivering on our2020 ambitions

62 Our journey to
becoming a climate
positive business

15

Value creation
through acquisitions

16

Creating future value
through our purpose17

Our 2025 strategy

18

Creating and sharing
sustainable value

20 Trends, risks andopportunities
24 Operational excellence
26 Stakeholder engagement
and material topics

Givaudan – 2020 Integrated Annual Report

Business performance– Group

36 Business performance– Taste & Wellbeing

51

38 Business performance– Fragrance & Beauty

53

The fishless wave

55

Ensuring sustainability
for the future of
perfumery40 Our natural hedges offer
sustainable return on
investment
42 Consolidated financial
statements

Co-creating withcustomers and partners

58 2020 key innovationachievements

67

Responsibly managing
waste and water

70 Putting our ingredients
under the microscope aspart of our climate action
72

Environmental
performance indicators

Table of contents 3

70
92

82
53
PEOPLECOMMUNITIESGOVERNANCE

APPENDIX

76

People for a better andmore sustainable future

88 Maximising value with
our suppliers

112 Our global presence

82 Caring for ourpeople during the crisis

90 Communities where wesource and operate

96 Leading the way inregulatory complianceand product safety
98 Our code of conduct
for a positive impact
on society

122 Partnerships

92 15,852 employees as aforce for good

102 Effective and transparent
corporate governance

114 Givaudan sites
worldwide
123 Reporting frameworks
125 Glossary
128 Our reporting suite

107 Setting incentives
to create value

Givaudan – 2020 Integrated Annual Report

4Strategy Chairman's introduction

Navigating through an

extraordinary
year

Looking back on the events of 2020, I am struck by the resilience of Givaudan, keeping
our employees safe and well whilst seamlessly serving our customers. I'm proud of
everything we have accomplished over the last five years, delivering on all of theambitions of our 2020 strategy, particularly when faced with the most difficult of
circumstances in the last year.

The global pandemic brought much disruption to our businessand the wider market, but we navigated through and I’d liketo thank our employees, customers, partners and suppliers fortheir great collaboration and commitment in these testingtimes. I’d also like to thank you all for your commitment andinvestment in Givaudan.
For our 2020 strategy, we set out to achieve ambitious financial
targets, creating shared value for all. In 2020 we delivered solid
topline growth of 1.9% in Swiss Francs and free cash flow
generation of CHF 811 million. On the basis of Givaudan’s strong
performance in 2020, and its continued solid financial position,
the Board of Directors will propose an increase in the dividend
to CHF 64.00 at the Annual General Meeting on 25 March 2021.
This is the twentieth increase since our listing on the Swissstock exchange.
2020 was also an important year as we announced our next
five-year plan. ‘Committed to growth, with purpose’ is how
we will deliver ambitious financial targets while also
making progress in the areas of creations, nature, people
and communities. Being a responsible business has
always guided the way we act and behave, and therole we play in advancing on some of the key
issues affecting society such as climate change
and social inequality. This is reflected in ourrecently announced objective to become
B Corp certified and be a business thatacts as a force for a better world.

Givaudan – 2020 Integrated Annual ReportStrategy Chairman's introduction

We noted with interest the recent referendum that took
place in Switzerland called the ‘Responsible Business Initiative’,
which called for Swiss companies to ensure that all theirsubsidiaries, as well as customers and supply chains worldwide,
observe human rights and environmental standards.
Givaudan's ambitions deployed in our purpose and strong
adherence to ethics, human rights and environmental
standards guarantee that we operate well within thecurrent legal frameworks and international standards.
As a Board, we also had to adapt our ways of working for thecircumstances encountered in 2020. Making use of virtual digital
tools ensured we still met regularly and were able to deliberate
and approve the new 2025 strategy. We continued to focus ourefforts on succession planning. We welcomed two new Board
members this year, who were virtually onboarded and havebrought great expertise and value. At the next AGM in 2021,
longstanding Board member Thomas Rufer will retire. I would liketo thank him for his valuable contributions over the last 12 years
as a Board Member and as Chairman of the Audit Committee. No
further Board members are being announced, and aside Thomas,
all other Board members will stand for re-election.

I’d like to thank our employees,
customers, partners andsuppliers for their greatcollaboration and commitmentin these testing times.

5

Looking ahead, we anticipate ongoing disruption from thepandemic in 2021, but I have every confidence that Givaudan
will successfully navigate through this. The Board has actively
participated in designing the 2025 strategy and we all are
confident it will ensure we continue to create sustainable value,
while advancing towards a more sustainable business in theareas of creations, nature, people and communities. Many of
the trends we identified for the 2025 strategy have grown inimportance this year, particularly digitalisation, with the riseof e-commerce and the transformation of the ways we work.
We will continue to advance our agenda in this space.
I’d like to express my heartfelt thanks and gratitude to myfellow members of the Board of Directors, the Executive
Committee and all our employees worldwide for their hard
work and dedication, especially after such a testing year.
It is their contribution and passion that makes Givaudan
a unique place to work.
Finally, I would like to share my thanks to our shareholders
for your trust and continuing support. It is with muchdisappointment that we will again not host an in-person
AGM in March 2021 due to the continuing uncertainty
around COVID-19. Instead, we have decided to donate asum to the Givaudan Foundation to support a number ofworthwhile projects in our communities.
I send my best wishes and health for the year ahead.

Calvin Grieder, Chairman

Calvin Grieder
Chairman

COVID-19

Our purpose at the heart of our response
Throughout the COVID-19 pandemic,
Givaudan has played a critical role insustaining the global supply chain infood and beverage as well as inhousehold, health and personal careproducts.
We take our role as a purpose-led
company very seriously, as our purpose

provides a strong and unified reason for
why we do what we do: 'Creating forhappier, healthier lives with love fornature. Let's imagine together.'Continues on page 6 ▶

Givaudan – 2020 Integrated Annual Report

6Strategy CEO interview

CEO INTERVIEWIn an unprecedented year which also
completed our five-year strategy cycle,
I’m very proud of how we managed toachieve all our 2020 ambitions, delivering’Responsible growth, Shared success’.
CEO Gilles Andrier is interviewed by Alice, Corporate Communications
Manager at Givaudan. They discuss how the business managed throughthe COVID-19 pandemic and what’s in store for the next strategy cycle.

Alice Stevens Gilles, what an extraordinary year.
What are some of your reflections?
Gilles Andrier Yes, the word of the year was certainly‘unprecedented’ and for all of us at Givaudan it was a very
challenging period, but I feel very proud about how wemanaged the year.
Firstly, I want to express how grateful I am to all of ourcolleagues around the world. Overnight, we completelychanged the way we worked and the organisation
really showed its ability to be agile and adapt incredibly
quickly. I’d especially like to highlight those colleagues who

From page 5 ▶

Ensuring we can still deliver theseessential products while also protecting
our people has guided our response to
the crisis.
Our global crisis team worked aroundthe clock to ensure we kept ouremployees safe, our customers served
and the business running as normally as

Givaudan – 2020 Integrated Annual Reportremained working on-site to ensure production andlaboratory continuity so we could play our role in providing
critical products to our customers and so for consumers.
Secondly, it was also special as it was the final year of our2020 strategy. I am delighted that we achieved the financial
ambitions we had set, showing once again our ability todeliver industry leading purpose-led growth with a long-term
perspective. Overall, it was a year none of us could have predicted
but I take many great lessons and opportunities from it.
AS Overall, how did the business manage throughthe pandemic?

possible in the circumstances. From
the outset of the COVID-19 pandemic
we have followed government advice
and WHO guidelines and implemented
comprehensive measures to protect
our colleagues.
We completely and rapidly changed
the way we worked. Our office-based
employees moved to home working ▶

Strategy CEO interview

GA We really saw how resilient our business is. This issomething that has been built over many years through having‘natural hedges’. We are in every single market in the world, intaste and wellbeing and in fragrance and beauty, with thewidest diversity of product categories. And we service a wide
variety of customers. These natural hedges result from thestrategic growth choices we made as well as the 16 acquisitions
we made over the recent past.
Our strong performance throughout the crisis demonstrated
our market leadership and the responsible role we played insustaining the global supply chain in food and beverage, as wellas in household, health and personal care products. I am very▶

and we adopted key measures andpractices to protect all our employees’
health, safety and wellbeing. It required an
extraordinary effort from our production
and supply chain colleagues to ensure we
could continue to meet the increasing
demand for essential products.
As a responsible and purpose-led
business, we also recognised the7

proud of our people throughout the Givaudan organisation for
their dedication during this challenging period and for enabling
us to continue to support our customers to keep criticalproducts available to consumers throughout the COVID-19 crisis.
AS

And what have been some of the key learnings?

GA While the pandemic is not over, we are already looking at
some of the learnings we can take forward. We have a teamreviewing a number of areas such as the future of travel,
flexible working and how we use office space. These are all
topics closely aligned to our 2025 strategic areas of excellenceand simplicity in everything we do. We want to use theenormous impact the pandemic had on
vulnerable communities without theresources needed. We established our
COVID-19 Communities Fund to enable
our sites to support local communities
that had been affected by the pandemic;
at least CHF 1 million was distributed toover 130 communities worldwide. We
also adapted our production to increase

the amount of hand sanitisers, not only
for our employees but also for local
health, community and front-line
services who were in critical need of it.
We are proud that, through close
collaboration with our customers andwith the resilience that has been
demonstrated across the supply chain,
we have helped to ensure productContinues on page 8 ▶

Givaudan – 2020 Integrated Annual Report

8Strategy CEO interview

learnings to continue to enhance working life at Givaudan andhow we can even better serve our customers.
AS We launched our purpose almost a year ago. What role
has that played?
GA I believe our purpose was really strengthened and becamevery much alive through the crisis. ‘Creating for happier, healthierlives’ is what kept us going every day, despite all the challenges,
to ensure our customers – and so consumers – could get the
products they needed on a daily basis. It also came through in theway we cared for our people and communities. Our number one
priority was keeping employees safe and well as well as looking
out for their wellbeing, given the huge impact of the pandemic.
We donated more than CHF 1 million to our COVID-19
Community Fund to enable our sites to support local
communities affected by the crisis. We also adapted our
production processes so we could provide hand sanitiser forour employees and also for local health, community andfront-line services who were in critical need.
Finally, we’ve clearly linked our 2025 strategy with our purpose,showing that we want to deliver performance that is purpose led.
AS Despite the challenges of 2020, we were able to meet our2020 ambitions. What are some of your highlights of the last
five years?
GA There are many. Ambitious financial targets were afundamental part of our 2020 strategy, and we were able tomeet these even with the challenges of the COVID-19 crisis in
2020. Over the period 2016 to 2020, we increased the value of
the Company from CHF 16 billion to CHF 34 billion, while also
returning more than CHF 2 billion in dividends to shareholders.
Since the launch of our last strategy cycle, we have grown fromover 10,000 to close to 16,000 employees, while our culture has
been strengthened and enriched through acquired companies.

From page 7 ▶

availability, even when demand soared.
And as the crisis evolves, we willcontinue to put employee wellbeing at
the heart of everything we do. We are so
grateful for all the hard work from teammembers around the world who
continue to play their part in ourcollective response to this crisis.

Givaudan – 2020 Integrated Annual Report

We expanded our portfolio and capabilities throughtargeted acquisitions, bringing even greater value for ourcustomers. Since 2014, we have made 16 acquisitions which
represent an additional CHF 1.5 billion of annualised sales,with each one supporting our strategic priorities to expand
our offerings in Naturals, Active Beauty and Integrated
Solutions and our reach with local and regional customers.
With each of these acquisitions we are not only combining
our expertise and product portfolios, but also enriching andevolving our capabilities.
Our pioneering heritage and strong innovation culture haveensured we continue to deliver new sustainable solutions forour customers that also tackle the industry’s most pressing
challenges. We contribute to having a positive impact on
people and the planet, from supporting the plant-based protein
revolution with great tasting alternatives to animal products topioneering a biotechnology approach for the most widely usedbiodegradable fragrance ingredient, Ambrofix.

Strategy CEO interview

9

consumers. We aim for continued ambitious financial targets,
while also calling out non-financial targets for the first time,aligned to our purpose ambitions in the areas of creations,nature, people and communities.
It really builds on all that we achieved over the last five years andreflects the continued global megatrends and rapidly changing
consumer behaviours we’ve seen over the last few years.

2020 wascertainly very
challenging
for all of us at
Givaudan, but
I feel very proud
about how
we managed
the year.
Gilles Andrier, CEO

We also successfully implemented our Givaudan Business
Solutions organisation, which integrates a range of corebusiness solutions to improve our agility and reduce thecomplexity of our internal processes to focus entirely ondelivering a superior customer experience.
Responsible growth has also guided the way we manage our
impact through our creations, on our people, communities andnature. We’ve grown even bolder in our actions in the areas ofthe environment, sourcing and innovation, ensuring we meet
today’s needs while building a better tomorrow.

Overall, this strategy is how we will deliver sustainable value
creation for all stakeholders and allow us to act as a force for goodin the world. This is supported by our ongoing journey to becomea B Corp certified company, helping us to live up to the highest
standards of being a responsible and sustainable business.
AS We’ve set some bold ambitions as part of our purpose.
What will it take to get there?
GA Yes, we’ve been deliberate in setting out bold ambitions.
The impact of COVID-19 has been to highlight global crises suchas social inequalities and climate change, so we all need to go
further, faster. It’s about ensuring the business continues tothrive over the longer term. We have close to 16,000 passionate
employees who are guided by our purpose in their day-to-day
actions and they will be crucial to ensuring we can successfully
advance on our ambitions. The Givaudan purpose includes
a call to action ‘let’s imagine together’, and this is an invitation
to our customers, partners and suppliers to work together formutual benefit.
We have also just started out on our journey to become a certified
B Corp, which reinforces our commitment to be a force for goodand demonstrates our purpose in action, every day. It’s a reallyexciting journey for us, one that will provide the independently
verified proof that we are working towards our purpose goals andsuccessfully balancing people, planet and profit.
AS

Finally, how do you see the year ahead?

GA The impact of the pandemic will go on in the short term
but we remain confident we have the right strategy in place forcontinued success over the longer term.

AS Looking at our 2025 strategy – Committed to growth,with purpose – can you explain more?
GA I am really excited about starting out on our next
five-year cycle. Customers remain at the heart of our strategy,
working in partnership with them to provide creative,
innovative and sustainable solutions that are loved by

Givaudan – 2020 Integrated Annual Report10Strategy Delivering on our 2020 ambitions

Delivering on our 2020 ambitions
4,663

I’m proud of our performance overthe last five years in successfully
delivering responsible growth andshared success for all our stakeholders.
Gilles Andrier, CEO

5,051

5,527

6,203 6,322

5.8

5.6
4.9

4.0

4.2
2016

2017

2018

2019

2020

Group sales in millions of Swiss francs% growth LFL

Group sales

4,663

5,051

Free cash flow

5,527

5.6

6,203 6,322

GROUP SALESIN MILLION CHF

6,322

5.8

4.0

4.2
2017

2018

597
12.8

GROWTH
LFL ¹

4.9

2016

703

2019

+

2020

4.0%

2016

787

811

FREE CASH FLOWIN MILLION CHF

811

594

11.8

2017

12.7 12.7 12.8

2018

2019

2020

AS A %OF SALES

12.8%

Group sales in millions of Swiss francs

Free cash flow in millions of Swiss francs% growth LFL% of sales

1. Like-for-like excludes the impact of currency, acquisitions and disposals.

703
597

787

811

594

MARKET CAPACHIEVEMENTS
FROM 2016 TO 2020
12.8

11.8

12.7 12.7 12.8 From
CHF
billion

2016

2017

Nº1

2018

2019

2020

16
>

NUMBER OF EMPLOYEES

to

From

34

15﹐852EXPANDED INTO NEWSPACES OF ACTIVE BEAUTYFree cash flow in millions of Swiss francs% of sales

POSITION IN FINEFRAGRANCE WITH A
2016 – 2020 SALES CAGR
OF 4.7%

Givaudan – 2020 Integrated Annual Report

AND ALTERNATIVEPROTEINS, EACH

CHF
million100

10,476IN HEALTH & WELLBEING
ACHIEVED SALES OF
CHF 1 BILLION AND A
CAGR
ofin sales

to

11﹒4%

SALES TURNOVER

From
CHF
billion

4﹒7

to

6﹒3

WITH CHF 2 BILLIONIN SALES, WE

doubledour naturals
businessStrategy Delivering on our 2020 ambitions

11

PERFORMANCE
2016 – 2020

TARGET2020

OUR 2020 STRATEGY:RESPONSIBLE GROWTH. SHARED SUCCESS.

4 – 5%

12 – 17%AVERAGE ORGANICSALES GROWTH ¹

AVERAGE FREE CASH
FLOW AS % OF SALES ¹

4.9%

12.6%

AVERAGE ORGANICSALES GROWTH

AVERAGE FREE CASH
FLOW AS % OF SALES

Growing with our customers

Delivering with excellenceHigh growthmarkets

Health andwellbeing

Partnerof choiceNew innovative partnerships
Increased strategic networks

Partnering for shared success

Innovators

Suppliers

PeopleCommunities

Excellencein execution

Consumerpreferred products

Integrated
solutions

Strong operational achievements across all areas of the strategic pillars.
This performance recognises the value we bring to our customers, the strengthof our business, and the hard work and dedication of all our employees.

Creating additional value through acquisitions
16 acquisitions since 2014, representing an additional
CHF 1.5 billion of annualised sales.
1. Over the five-year period 2016 – 2020.

Givaudan – 2020 Integrated Annual ReportStrategy Achievements 2016–2020

Achievements

2016–2020

12

Achievements 2
GROWING WITH OUR CUSTOMERSHighlights
Continued investments in high growthmarkets especially China and India
Investments in local & regionalcustomer segment, both organically andvia acquisitions, brings overall share to~50% of Group sales
Expanding product and customer
portfolio in key growth areas (eg.
Naturals, health & wellbeing, Active
Beauty, local & regional customers)
Attained No. 1 position infine fragrance market
Sales growth of 4.9% CAGR (2016–2020)
Incremental sales contribution of
CHF 1.5 billion through acquisitions
Developing further our integrated
solutions business through existing andacquired capabilities

Over the past five years, we have expanded our productportfolio in a significant way, complementing our industryleading flavour and taste capabilities with an outstanding
offer of natural functional and nutritional solutions.
Louie D'Amico, President Taste & Wellbeing

Our market leadershipin the fast growing
segment of local andregional customers
is greatly enhanced
through the acquisitions
that we have made.

Maurizio Volpi, President Fragrance & Beauty

Givaudan – 2020 Integrated Annual Report2016–2020

Strategy Achievements 2016–2020 13

DELIVERING WITH EXCELLENCEOur GBS organisation
is an integral part ofGivaudan, deliveringhigh quality solutions
across the value chain.
Anne Tayac, Head of Givaudan
Business Solutions

Highlights
Successful global implementation ofGivaudan Business Solutions (GBS), withthree delivery centres established in
Budapest, Kuala Lumpur and Buenos Aires
Benefits fully achieved and further
opportunities for scope extensions in
the future identified

Highly dedicated supply chain effort tomanage multiple crises, particularly
impacting raw material supply

Automation and continuous
improvement of our processes and in
production sites, contributed strongly
to sustain competitivenessEarned key sustainability recognitions:
CDP leadership scores for climate action
and water security; a world leader for
supplier engagement on climate change,
EcoVadis Platinum status

Significant investments in new
production facilities in India and China
to support business growthWell-developed business continuity
plans in both divisions to provide agility
and flexibility in all situations

Strong focus on integration of acquiredcompanies to ensure high levels ofservice quality during transition

Strong improvement in safety
performance and culture across theorganisation

Givaudan – 2020 Integrated Annual ReportStrategy Achievements 2016–2020

Achievements

2016–2020

14

We have significantly
expanded ourpartnership networks
in all areas of thebusiness, deliveringvalue for Givaudan andfor the collaboratorsand communities thatwork with us.
Willem Mutsaerts, Head of Global
Procurement and Sustainability

PARTNERING FOR SHARED SUCCESS

Highlights
Strengthening the global innovation
ecosystem by opening our new flagship
Innovation Centre in Switzerland

Deeper engagement with suppliers onsustainability topics as well as extensionof the responsible sourcing initiatives

Extended partnership network ininnovation with academia, start-ups
and established innovators

Development of multiple joint ventures
to secure access to key raw materials inboth divisions

We have doubled sales from innovation
linked to external collaboration

Launch of 'Connect to Win' programme
to accelerate innovation in partnershipwith suppliers

Established the Givaudan Digital Factoryin Paris to drive our digital agenda
Improved employee engagement andstrong focus on diversity and leadershipdevelopment

Strengthened our commitment to enrich
the communities that work with Givaudan

The ambition of our purpose is that Givaudan will be aplace where we all love to be and grow. I am delighted
we've improved our overall engagement level and wecontinue to build on this, focusing on our ambitious
goals for inclusion and care for all of our people.
Simon Halle-Smith, Head of Global HR and EHS

Givaudan – 2020 Integrated Annual ReportStrategy Value creation through acquisitions 15

Value creation
through acquisitions
We seek to create value throughtargeted acquisitions which
complement existing capabilities
in providing winning solutions
for our customers.
Aligned with market trends and our strategic priorities

Naturals

Active Beauty▸▸ Spicetec▸▸ Activ International▸▸ Vika▸▸ Centroflora Nutra▸▸ Naturex▸▸ Albert Vieille▸▸ Golden Frog▸▸ Ungerer▸▸ Indena▸▸ Soliance▸▸ Induchem▸▸ Naturex▸▸ AMSilk▸▸ Indena▸▸ Alderys

Local and regionalcustomers

Integrated
SolutionsIngredients▸▸ Naturex▸▸ Expressions
Parfumées▸▸ drom▸▸ Fragrance Oils▸▸ Ungerer▸▸ Spicetec▸▸ Vika▸▸ Activ International▸▸ Ungerer▸▸ Albert Vieille

EXPANDING OUR PORTFOLIOINVESTED IN ACQUISITIONS
CHF
billion

3.6

INCREMENTAL REVENUES
CHF
billion∼

1.5

ACQUISITIONS FROM 2014 TO 2020

16
Givaudan – 2020 Integrated Annual Report16

Strategy Creating future value through our purpose

Creating future value
through our purpose
As a purpose-led company, we cango even further to make our world ahappier and healthier place.
Our purpose, a guiding star in our 2025 strategy, leads the way
to increasing our positive impact on society and the planet inorder to ensure our sustainable long-term performance. We
hold ourselves accountable to our purpose through bold,measurable ambitions to ensure we live up to being a successful,sustainable business acting as a force for good.
What's more, our journey to being a B Corp certified company will
ensure that we're reaching the highest standards as a responsible
and sustainable business delivering sustainable value creation.

OUR PURPOSE

Creating for happier, healthier lives with love for nature. Let’s imagine together.
CreationsLet’s imagine together thatthrough our creations more people
will enjoy happier, healthier lives.

BY 2030 We will double our business through creations that contribute tohappier, healthier lives. (2018 baseline: CHF 5,527 m sales)

NatureLet’s imagine together that
we show our love for naturein everything we do.

BEFORE 2030 Our operations’ carbon emissions will be cut by 70% and our supply chain

emissions by 20%. (2015 baseline)
BEFORE 2030 We will replace single-use plastics with eco-friendly alternatives acrossour sites and operations. (Baseline in process of setting)
BEFORE 2040 Our operations’ will be climate positive and our supply chain emissions

will be cut by 50%. (Baseline 2015)
BEFORE 2050 Our supply chain will be climate positive.

PeopleLet’s imagine together that
Givaudan is a place where
we all love to be and grow.

BEFORE 2025 Everyone on our sites will have access to mental and physical healthinitiatives, tools and training. (Baseline in progress of setting)
BEFORE 2025 We will reduce our total recordable injuries cases by 50%. (2018 baseline)
BEFORE 2025 We will be rated among the leading employers for inclusion globally.
(Baseline is in progress of setting)
BEFORE 2030 50% of our senior leaders will be from high growth markets. (2018 baseline)
BEFORE 2030 50% of our senior leadership will be women. (2018 baseline)

Communities

Let’s imagine together that
all communities benefit
by working with Givaudan.

BY 2030 We will source all materials and services in a way that protects people

and the environment. (Baseline is in progress of setting)
BY 2030 We will improve the lives of millions of people in communities where

we source and operate. (Baseline is in progress of setting)

Givaudan – 2020 Integrated Annual ReportStrategy Our 2025 strategy 17

Our 2025 strategy
Committed to Growth,with Purpose
Over the next five years
we will continue creating
sustainable long-term value
for all key stakeholders,with customers central
to our strategy. Gilles Andrier, CEO

It is our intention to deliver growth through creating inspiring
products for happier, healthier lives while achieving ourambitious financial targets and longer-term purpose ambitions.
At the core of our business is our relationship with our customers,
and we will continue to work in close partnership with them toprovide creative, innovative and sustainable solutions that are
loved by consumers.

HE PORTF
ND T
OL
PA
IO
X
E

Creations

OM

ER

REACH

Growing
together withour customers

We nurture a place where
we all love to be and grow

RA
TE

C

U

ET

ST

ST

RK

PeopleNatureWe show our love for nature
through impactful actions

F O C U SSE D M A

We create inspiring solutions
for happier, healthier lives

Our 2025 roadmap sets out how we will deliver profitable
growth over the next five years while having a positive,
sustainable impact through our creations, on people, natureand communities.

G IE S

E
EXT

ND

Communities

We bring benefits to allcommunities that work with us

Excellence, innovation, simplicity in everything we do
4 – 5% GROWTH   PURPOSED LINKED TARGETS   > 12% FCF
READ MORE
www.givaudan.com ▸ Our Company ▸ Our 2025 strategy

Givaudan – 2020 Integrated Annual Report

18 Strategy Creating and sharing sustainable value

Creating and sharing
sustainable value
INPUTSOUR BUSINESS MODELFINANCIAL CAPITALOUR ACTIVITIESTaste & Wellbeingc ti o n

odu

Pr

i

Re-invest ininnovation and shared,
responsible growth

Cash
flows

Returns toshareholders andstakeholders

Su

ppBusiness Solut
ion
s

rcing
Sou

D

n
rs s u m
ta e
nd r
sc
in g
ov
er
y

n
uda
va
Gi

s

Creating
shared value
for our key
stakeholders
Co e
d
un

Production sites,
infrastructure, end-to-end
supply chain solutions

ri

Se
rvi
ce

ch

MANUFACTUREDCAPITAL

Through our value chain
we create innovative
products and solutions
that have a positive impact
on nature, people andcommunities. The
corresponding outputs andimpacts deliver growth –in partnership with ourcustomers – throughcreating inspiring products
for happier, healthier lives.

Customer Rawmaorderstegnin
in brief
W eh

R es e ar

NATURAL CAPITAL
Raw materials, indirectmaterials and services,innovative sourcing models

OUR VALUE CHAINsal

HUMAN CAPITAL
The skills, motivation,
diversity of our people,
best-in-class health andsafety procedures▸▸ Consumer products▸▸ Fine Fragrances▸▸ Ingredients and Active Beautyt

INTELLECTUAL CAPITALTechnology, patents,
know-how, processes

Fragrance & Beauty▸▸ Flavour & Taste▸▸ Natural functional ingredients▸▸ Natural nutritional ingredients▸▸ Integrated Solutions

Creat
ion

Funds available to
the Grouply

Finance ouroperations
sustainably

SOCIAL AND
RELATIONSHIP CAPITAL
Our relationships with local
communities, regulatorsand industry bodies, brandand reputation

Givaudan – 2020 Integrated Annual Report

STRATEGY

GOVERNANCE

MANAGEMENT

Strategy Creating and sharing sustainable value 19

EXTERNAL ENVIRONMENT / MEGATRENDS / RISKS AND OPPORTUNITIESOUTPUTSFINANCIAL CAPITALIMPACTSLEADING THE INDUSTRY

Responsible financial growthand shared profitability

Organic sales growth 4%
Free cash flow as % of sales 12.8%

INTELLECTUAL CAPITAL
Differentiating solutions
through responsible
innovation

Creating for happier, healthier lives with love for nature.
Let’s imagine together.

BEING A PURPOSE-LED COMPANY

Creations
HUMAN CAPITAL
Recruiting, developing
and caring for diverse andinclusive workforce

NATURAL CAPITAL
Preserving biodiversity
and renewable resources,
reducing water andenergy consumption,
emissions and waste

MANUFACTUREDCAPITAL
New site openings,
acquisitions, sustainableproducts produced and sold

SOCIAL AND
RELATIONSHIP CAPITALB Movement Builders,Business for Nature call-toaction, WBCSD CEO call toaction on human rights

People

6,322

25%

SALES
IN CHF MILLION>WOMEN IN SENIORMANAGEMENT

0﹒25

122,865

LTI RATE

PRODUCTS SOLD

Nature

–

30%

+

11%

Communities

82%

SCOPE 1+2 GHG
EMISSIONSSINCE 2015

SUPPLIERCOMPLIANCE
RATE

94﹐000SCOPE 3 GHG
EMISSIONSSINCE 2015

BENEFICIARIESOF COVID-19
COMMUNITY FUNDSTAKEHOLDERS BENEFITED

Customers / Suppliers / Employees / Owners and investors /Local commu­nities / Public and regulatory agencies
Our contribution to the United Nations Sustainable Development Goals

Givaudan – 2020 Integrated Annual Report20

Strategy Trends, risks and opportunities

Trends, risks and opportunities
Shaping our value creation
Understanding trends and risks
helps us find new opportunities
and shape our business model tofind new places to win.
Being successful in an ever-changing environment
Global megatrends and rapidly changing consumer behaviours
over the last few years continue to bring new opportunities toour business. In the short and longer term, the COVID-19 crisishas brought the need for an even greater focus on organisational
resilience and flexibility to adapt to a changing environment.

Growing consumer base
The world’s population is expected to continue its rapid growth,with the majority in Asia and Africa. The elderly and the Chineseare expected to account for about half of global consumption
growth in 2015-2030, leading to new product innovation tomeet their needs. Local brands will be even more relevant to –and trusted by – consumers, which will bring strong growth for
local and regional companies in emerging markets.

Health and wellbeing priorities
Consumers are seeking products that support their physical andmental health and are demanding greater transparency oflabels. In food and beverage, we see key health, nutrition andwellbeing trends driving consumer behaviour for food that
supports longer and healthier lives and increases wellbeing andperformance. For fragrances and beauty, consumers are looking
for products that provide essential hygiene protection, support
their wellbeing and allow them to look younger for longer.

Responsible, engaged consumers
As the climate crisis looms and social inequalities rise,consumers are looking to ‘vote with their feet’ and support
businesses they believe act responsibly and address thesesocietal challenges. They are looking for products that are
produced in a way that does not cause harm to the environment.

MEGATRENDS
TRENDS

Consumer baseis growing

Living longer andmore consciously

Sustainability isof high concern

COVID-19: E-commerce, self-careand localisation gain importance

IMPACT▸▸ Asia and Africa
leading the way

Givaudan – 2020 Integrated Annual Report▸▸ Consumer behaviours
are changing▸▸ Consumers will buy more
consciously▸▸ Responsible companies
will act▸▸ Consumers will buy more
online and increasespending on self-care▸▸ Localisation will be evenmore importantStrategy Trends, risks and opportunities

Risk management
Risk taking is core to our innovation capacity, our entrepreneurial
success and ultimately our sustained value creation. In acting in
the interest of both itself and its stakeholders Givaudan reduces
the risks faced from multiple systemic crises through a holistic
approach to risk management.
Enterprise Risk Management (ERM) is the process of assessing,treating and monitoring the effects of uncertainty that may
affect the achievement of Givaudan’s objectives, especially our
publicly stated strategic objectives, or jeopardise long-termbusiness success. We operate a structured system of identifying,assessing and deciding on responses to mitigate key risks. We
seek to consciously take the appropriate amount of risk, tomanage these risks competently at the right level of theorganisation, and to seize related business opportunities.
The Board of Directors is responsible for defining and approving
the ERM approach. Execution of the overall process is delegatedto the Executive Committee.
ERM applies across the business. It reviews all types of risks(threats and opportunities) in terms of their nature, their root
causes/drivers and their consequences. Risks can have aquantitative impact on the EBITDA of the Group or a qualitative
impact preventing Givaudan from reaching its long-term
objectives and ambitions.

Strategic risk refresh for the 2025 strategy cycle
In 2020, ERM was involved in the development of the 2025
strategy to ensure a review of the resilience of the strategy. It
carried out specific risk assessments with regards to the risks
posed by COVID-19, as well as a zero-based strategic riskrefresh for the 2025 strategy cycle.

21

Givaudan’s principle-based
approach to risk management:▸▸ Pragmatic and tailored to the Company▸▸ Aims at sustainable value creation and protection▸▸ Integral part of processes and decision making▸▸ Addresses uncertainty explicitly▸▸ Structured, dynamic, iterative andresponsive to change▸▸ Based on the best available information

Givaudan’s ERM contributes to:▸▸ Safeguarding Company value and assets
and a protection of shareholder interests▸▸ Exploiting strategic opportunities to further
create Company value▸▸ Improving awareness amongst all key internal
stakeholders of the nature and magnitudeof the Company’s risks▸▸ Providing risk-based management informationfor effective decision making▸▸ Improving compliance with good corporate
governance guidelines and practices as well as
applicable laws and regulations

The annual ERM processincludes the following steps:▸▸ A structured and comprehensive identificationand compilation of essential threats andopportunities on the basis of an overall risk universe,
which includes internal and external benchmarks▸▸ Analysis and assessment of the threats andopportunities identified and determination of
their likelihood of occurrence and corresponding
impact to understand the underlying risk drivers▸▸ Formulation of the appropriate measures to exploit
an opportunity and/or respond to a threat, and▸▸ Tracking and reporting of risks and risk
response actions
READ MORE
www.givaudan.com ▸ Our Company ▸ Corporate governance ▸Risk management

Givaudan – 2020 Integrated Annual Report

22 Strategy Trends, risks and opportunities

Managing risks and opportunities
We group risks in five main categories, and in the following
overview we describe the main risks in each category, our risk
mitigation approach and how we use our strengths to turn theserisks into opportunities.

READ MORE
www.givaudan.com ▸ Our Company ▸ Corporate governance ▸ Risk management

STRATEGIC RISKSSUSTAINABILITY RISKSFINANCIAL RISKS

We are exposed to a number of strategicrisks, including:–– The risk that our business model
might become obsolete, in particularthrough digitalisation.

Climate change /Water scarcity

The Group’s activities expose it to avariety of financial risks, including
market risk (principally currency risk,interest rate risk and price risk), credit
risk and liquidity risk. The Group’s overallrisk management programme seeks tominimise potential adverse effects on
the Group’s financial performance.

HOW WE MITIGATE RISKS▸▸ We have clearly defined policies inrelation to the management of Financial
Risks applicable to all Group companies–– The risk of changing consumer
preferences both in terms of productpreferences and in the way theyacquire and experience products
and experiences.
–– The risk that there is a change inthe way our customers and suppliers
work with us.
–– The risk posed by our competitors,
existing ones as well as new market
entrants.
HOW WE MITIGATE RISKS▸▸ We monitor the competitive landscape▸▸ We regularly review ourbusiness model and strategy▸▸ We engage with our
stakeholders, especially with customers
and suppliers
HOW WE TURN RISKSINTO OPPORTUNITIES▸▸ We quickly adapt to fast changing
environments thanks to ourinnovative capabilities▸▸ We expand or adjust our
strategy to unlock new markets
and business opportunities

Climate change may lead to a numberof effects which in turn impact ourability to operate. These may include
water scarcity at one or more of our
production sites or issues with our
supply, in particular the availability of
our key natural resources.

▸▸ We are committed to excellence inclimate action and have built our
climate action agenda on ambitious
GHG emission reduction targets▸▸ We involve our supply chain in efforts
to reduce their GHG emissions▸▸ We find new ways of saving energy tocreate raw materials to reduce the riskof sufficient supply▸▸ We operate water stewardshipprogrammes to ensure water risks aremanaged and monitored
HOW WE TURN RISKSINTO OPPORTUNITIES▸▸ We take action across our operations
and beyond to decrease our negative
impact and align on ambitious climate
action agenda▸▸ We use green chemistry and techniquessuch as biocatalysis to make products
high in purity and yield▸▸ We work on ‘side-stream valuation’enabling us to use a larger part of theexisting raw material▸▸ We carry out risk assessments todevelop water mitigation action plans,
including efficiency improvements andwater reuse opportunities

HOW WE MITIGATE RISKS▸▸ We operate centres of expertise atGroup level to oversee the execution of
the Financial Risk Management Policies▸▸ We maintain a broad network offinancing sources, including bankfinancing as well as debt capital
markets in different geographies▸▸ We have close collaboration within
the various stakeholders with theGivaudan organisation to ensure theappropriate level of understanding
and management of financial risks
related to customers▸▸ We use financial derivatives to hedge theGroup’s key financial risks, most notably
Foreign Exchange and Interest Rate Risk
HOW WE TURN RISKSINTO OPPORTUNITIES▸▸ High level of visibility around financial
risks facilitates informed and timely
decision making▸▸ Investments in technology ensure
efficient and well controlled processes
in managing financial risks▸▸ Centralised management of financial
risks creates the opportunity to assign
dedicated expertise in these areas
READ MORE
2020 Governance, Compensation and Financial
Report ▸ pages 54 – 63 ▸ Financial risk management

Givaudan – 2020 Integrated Annual ReportStrategy Trends, risks and opportunities

OPERATIONAL RISKSAs a company with 77 production
sites worldwide, we are subject to anumber of operational risks.

Operations

A breakdown of our operations may
threaten our ability to produce anddeliver quality products/services atcompetitive prices on a timely basis.
Such breakdown may be caused
by internal or external factors.

Disruption of supply
chains / suppliers

A disruption in the supply of the raw
materials we require for our production
or volatility of raw material prices may
negatively impact our ability to produce
at competitive prices and in a timely
manner. Such disruption may be causedby external factors such as climatechange or a breakdown at one or moreof our suppliers.

Environment, Healthand Safety and operationalrisk management

If Givaudan should operate in a way thatis harmful to the environment and/or
causes community nuisance (odour
emissions, waste water), this could resultin fines, reputational impact or even theloss of the Company’s licence to operate.

Information technology risk

In a fast moving digital world, informationand communication technologies are
critical for Givaudan to address new
consumer behaviours and to collaborate
with its customers to give them thebest experience. However, digitalisation
also creates new threats and requires apermanent monitoring of information
security risks and an extension of the risk
assessment scope.

HOW WE MITIGATE RISKS▸▸ We have instituted a number of processes
including structural architectural
measures, behavioural measures andbusiness continuity planning▸▸ We monitor and manage supply chain
risks arising from raw materials▸▸ Our Environment, Health and Safety(EHS) function regularly carries out
comprehensive risk assessments at our
production and major commercial sites▸▸ The EHS team is involved from the
beginning of projects to support thedesign of all new building activities▸▸ We continually monitor cybersecurity risks
HOW WE TURN RISKSINTO OPPORTUNITIES▸▸ We implement a cross-functional risk
management process that is integrated
with global supply chain management
thus enabling us to mitigate raw
materials sourcing risks▸▸ We developed visual risk portfolios toshow mitigation measures and progresson improvement actions.
▸▸ We successfully installed a numberof new technologies for environmental
protection in the area of odour
emissions control

23

LEGAL, COMPLIANCE AND
REGULATORY RISKS
Product quality / safety risk

A faulty product or one that is notcompliant with regulations or is
non-performing could expose Givaudan
to consumer health issues, customer
complaints, warranty claims, returns
and re-runs, product liability claims or
litigation and lead to loss of revenues,
market share and business reputation.

Legal and compliance risks

Should our employees, especially key
individuals within the organisation(Board members, Executive Committee
members, senior management) display
or tolerate behaviour that is illegal orunethical, or should our contractual
arrangements be inadequate, this could
lead to reputational as well as financial
damage to Givaudan.
HOW WE MITIGATE RISKS▸▸ We systematically evaluate all
ingredients for both humanand environmental safety prior to their
inclusion in our raw material palette▸▸ Our global IT systems control productformulations in order to ensurethat raw materials are used as intended
when products are manufactured in
our production facilities▸▸ We regularly assess Givaudan’s legal
and compliance risks at local and global
levels and take actions to mitigate
these risks in collaboration with thedifferent compliance functions.
HOW WE TURN RISKSINTO OPPORTUNITIES▸▸ We have rigorous product safety
and quality programmes▸▸ We support, and in many cases lead,industry-wide programmes of therespective industry associations.

Givaudan – 2020 Integrated Annual Report

24

Strategy Operational excellence

Operational excellence
Despite the unprecedented
challenges of the covid-19
pandemic, our global operations
were able to continue to supply
our customers while ensuring
our employees were safe.

Our established business continuity plan, which enables us tocope with fluctuations in demand or a crisis that arises in acountry, factory or our supply chain, was hard put to the test.
There was intense pressure on our operations because of thesignificant increase in demand for our products, particularly inhygiene but also in savoury and snacks. Overall, however, thepandemic showed that we are well prepared and equipped to
face challenging environments and to respond to crises.

We are immensely proud of the enormous efforts made by
everyone in our Company in protecting our business andmaintaining operations during the pandemic. We are also
pleased that our business model was able to carry us throughsuch difficult times.

Indeed, we are proud that our products have been part of thesolution to help people around the world cope with the
pandemic. In short, Givaudan played an important part in the
global response to the pandemic because our creations go into
products that are critical to protecting health and containing
the spread of the virus, including soaps, household cleaningproducts and disinfectants.

Our global supply chain, complex and sophisticated at the best oftimes, went swiftly from being predictable to one that was
threatened by the upset caused by the pandemic. Some countries
even closed their borders. Overall, however, we were able tooptimise the flexibility of our global production footprint to help
minimise the impact.

During the crisis, our priority was the safety and health of ouremployees while maintaining our business operational. And
although many were asked to work from home, we still neededpeople to continue working in our production facilities and labs.
Guidance and restrictions were put in place in these areas that not
only helped contain COVID-19 but also helped employees know

Ensuring connectivity across the Company
Many employees moved to home working
because of COVID-19, and it fell to ourglobal IT teams to ensure the best tools
were available to these home-workers
while meeting IT demands in keeping thebusiness operating as normally as possible.
The unique circumstances required
enormous efforts by the IT teams, who
stepped in quickly and ensured that theproper digital tools were in place so thatworking at home was as close as possible
to being in the office. As well as having
the right technologies for these

Givaudan – 2020 Integrated Annual Report

employees, cybersecurity was also a
concern that needed to be addressed for their own protection as well as thebusiness itself. Good practices were
reinforced so that our people understood
the risks and could be fully cybersafe.
A large percentage of the 6,500 people
working from home understandably said
they felt a sense of isolation, so our IT
teams sought the best collaborative digital
tools that allowed employees to stay intouch, fostered teamwork and enabledmanagers to easily contact their teammembers and help
create a sense of unity
and motivation.
This transition
to a virtual company
was achieved
quickly and smoothly
in challenging
circumstances. ‘Every cloud
has a silver lining’ and we know that
opportunities will arise for ways wework and interact in Givaudan, making
it a great place to work.

Strategy Operational excellence

that everything possible wasbeing done to provide a safe
working environment and that
their safety was of prime concern.
Similarly, Givaudan Business Solutions(GBS) was able to continue to deliver
solutions while its teams worked from home tohelp those in operations continue their work.
GBS worked as one team with the business toensure our Company was able to respond tothe crisis in the best possible way.
In our operations worldwide, in our global
supply chains and in GBS, our people are
to be warmly thanked for their courageand commitment, their dedication anddiscipline, during the difficult times
presented by the COVID-19 pandemic.

25

Our global supply chain
teams faced incredible
difficulties and complexities.
In our production sites,
everyone showed courageand discipline. Quite simply,
they all enabled our businessto continue operating.
Rudy Niquille, Head of Operations
Taste & Wellbeing

I’m so proud of our people
working in production andthe whole supply chain toensure we served customers.
It was a great examples of
the Givaudan DNA in action.
John Vernieri, Head of Operations
Fragrance & Beauty

I was hugely impressedwith how we came together
to embrace new ways ofconnecting to keep thebusiness running. Based on
our solid performance andreliability, we embraced
patience, understanding andsolidarity to keep delivering.
Anne Tayac, Head of Givaudan
Business Solutions

Givaudan – 2020 Integrated Annual Report26

Strategy Stakeholder engagement and material topics

Stakeholder engagement
and material topics
Our success as a company thatacts as a force for good lies ininclusive stakeholder engagement.

investors, public and regulatory agencies, local communities andemployees. Every year we regularly gather the views of thesestakeholders by inviting them to discuss critical issues andstrategic priorities, and we create dialogue groups to understandhow our business affects these stakeholders and to determine
the most material impacts to be managed.

In order to ensure we meet today’s needs while building a better
tomorrow, continued and inclusive engagement with our
stakeholders is essential. This helps us understand external trends
and market expectations and enables us to identify opportunities
as well as risks for our business. It increases our transparency andhelps build strong relationships.

This inclusive dialogue ensures we increase our positive impact
on society and the planet, and continue to deliver new sustainable
solutions for our customers that also tackle the most pressing
challenges from the industry, society and the environment.
Together we will build happier, healthier lives.

We have identified six key stakeholder groups from a list of morethan 200 organisations, customers, suppliers, owners and

READ MORE
2020 GRI Sustainability Report ▸ pages 20 – 22 ▸ Stakeholder engagement
2020 GRI Sustainability Report ▸ pages 8 – 13 ▸ External initiatives

WHY WE ENGAGE

HOW WE ENGAGEKEY TOPICS & CONCERNS DISCUSSEDCUSTOMERS

Strong engagement with ourcustomers enables us tounderstand their needs andanticipate market trends.
Through preference discovery
platforms and consumer insightprogrammes we are able tounderstand and anticipate
consumer preferences and adapt
to cultural tastes.

▸▸ Customer sustainability requests▸▸ Audits▸▸ Customer innovation days▸▸ Customer and industry conferences and events▸▸ Key account manager relationships –ongoing dialogue▸▸ Use of consumer insight programmes for
consumer understanding, cultural insights andsensorial decoding▸▸ Leveraging digital capabilities to enhanceinsights in consumer trends▸▸ Climate change▸▸ Consumer health and wellbeing▸▸ Consumer behaviour▸▸ Human rights▸▸ Product environmental and social
impact▸▸ Product quality and safety▸▸ Responsible sourcing▸▸ Transparency and reporting▸▸ Traceability▸▸ Co-creation and innovation

SUPPLIERS

Stakeholder dialogue

Our suppliers are genuine partners
and we work with them towards
mutual value creation: open
dialogue secures a pipeline oftechnological innovation throughsupplier enabled innovation; andsupplier engagement andcollaboration ensures our suppliers
have high standards in businessethics and respect for people andthe environment.

▸▸ Assessments▸▸ Supplier audits▸▸ Collaborations to improve performance▸▸ Multi-stakeholder groups▸▸ Supplier events: capacity building,
discussing issues▸▸ Direct engagement with supplier
relationship managers▸▸ Responsible sourcing▸▸ Raw material availability▸▸ Innovation capabilities▸▸ Human rights

Givaudan – 2020 Integrated Annual ReportWHY WE ENGAGE

HOW WE ENGAGEKEY TOPICS & CONCERNS DISCUSSEDEMPLOYEESWe engage with our people tofoster an environment of open
dialogue to mutually resolve
conflicts, to identify development
initiatives and innovative ideas thatwill help drive our business. We
cannot achieve our goals without atrue sense of unity and a workplace
where we all love to be and grow.

▸▸ Works Council consultations▸▸ Employee engagement surveys▸▸ Annual performance dialogue▸▸ Talent management processes▸▸ Learning and development opportunities▸▸ On-going dialogue with Givaudan Green Teams▸▸ Employee health, safety andwellbeing▸▸ Diversity and inclusion▸▸ Talent management▸▸ Women’s empowerment▸▸ Technology and digitalisation▸▸ Operational excellence▸▸ Innovation capabilities

OWNERS &INVESTORSOur active dialogue with thecapital market ensurestransparency and helps us improve
our reporting practices. Our
relationship with debt investors,
banks, credit rating agencies
ensures we have funding forinvestment opportunities.

▸▸ Annual General Meeting▸▸ Annual investor conferences and investor
road shows▸▸ Briefings with analysts▸▸ Conferences with investors and otherfinancial stakeholders▸▸ Economic performance▸▸ ESG&D topics (Environmental, socialand governance & diversity)▸▸ Raw material availability▸▸ Talent management▸▸ Transparency and reporting▸▸ Technology and digitalisation▸▸ Operational excellence▸▸ Co-creation and innovation▸▸ Consumer behaviour

LOCAL
COMMUNITIES

27

Open dialogue fosters good
relations, and enables us towork together with communities
and neighbourhoods on projects
and causes that benefit local
communities, help protect
local ecosystems and support
livelihoods.

▸▸ Community development programme surveys▸▸ Local site community engagement programmes▸▸ On-going dialogue with local authorities andcommunity organisations▸▸ Employees engaged in social activities
within the communities in which we operate▸▸ Givaudan Foundation▸▸ Local partners (NGOs or cooperatives)
acting as Givaudan agents▸▸ Environmental and social issues▸▸ Product environmental andsocial impact▸▸ Human rights▸▸ Diversity and inclusion▸▸ Transparency and reporting▸▸ Local community development

PUBLIC & REGULATORYAGENCIES

Strategy Stakeholder engagement and material topics

Engagement and collective action
with external partners is essential
in order to inspire and lead byexample as a responsible business.
Only collective action can
influence decisions. We engage
with local governments andregulators to understand thechanges, their concerns and findmutually beneficial solutions.

Selected partners we engage with:▸▸ United Nations Global Compact▸▸ International Fragrance Association▸▸ International Organization of the Flavor
Industry▸▸ WBCSD▸▸ AIM-PROPGRESS▸▸ B Corp and B Movement Builders▸▸ CDP▸▸ EcoVadis▸▸ SIX Swiss Exchange▸▸ Environmental issues such as
climate change▸▸ Product quality and safety▸▸ Responsible sourcing▸▸ Product development andsocial impact▸▸ Human rights▸▸ Transparency and reporting

Givaudan – 2020 Integrated Annual Report

28 Strategy Stakeholder engagement and material topics

Defining our material topics andreporting boundaries
Stakeholder engagement lays out the basis for our materiality
assessment, and we have many channels for dialogue spread
across different departments and teams; this also includes theinformation and feedback we receive during the ordinary courseof business.
As our activities have an impact that goes far beyond economic
results, we need to align our business performance with the
expectations of our stakeholders and with society in general if
we wish to be successful in the long-run. To achieve this goal,a deep understanding of the most relevant topics for thedifferent groups of stakeholders is essential.

Ultimately, we seek to identify
and prioritise the issues of thegreatest material importance toGivaudan and to focus our drivefor greater sustainability in thoseareas that are most importantto our key stakeholders.
As we continue our efforts in integrated reporting, we conduct
comprehensive surveys and interviews of our key stakeholders
every four years, with the most recent being conducted in 2019
when our purpose was defined, and further reviewed in 2020
with the elaboration of our 2025 strategy. In addition, we

STAKEHOLDER ENGAGEMENT AND COLLECTIVE ACTION

A must if we want to accelerate change

We are committed to becoming a
successful, sustainable business as we
strive to be a force for good. As part ofthis commitment, we must engage withkey stakeholders to inspire and lead byexample as a responsible business.
In 2020, we signed the WBCSD CEO
Guide to Human Rights and endorsed
their call to action. In addition, following
our announcement of our ambition
to become a certified B Corporation,
we became a founder member of the
B Movement Builders initiative.
B Movement Builders brings together
a group of purpose-driven publicly
traded businesses and, working
alongside certified B Corporations,will drive a global movement of businessas a force for good, helping to acceleratechange in our global economic systemand spearheading the changing roleof business in society.
Also during the year, we further
reinforced our ambitious commitments
to nature and climate action by joining

Givaudan – 2020 Integrated Annual Reportforces with businesses all over theworld and across all sectors to drivechange. In February we endorsed the
UN Global Compact’s CEO Water
Mandate; an initiative which mobilises
action on water stewardship. In
September we signed up to the Businessfor Nature call-to-action, which brings
together more than 560 companies tourge governments to adopt policies thatreverse nature loss in this decade. It is
the first time that, collectively, so many
companies have stepped forward withthe ambition of influencing discussions
in the run-up to delivering a Post 2020
Global Biodiversity Framework. In
September we also joined 150 businessleaders and investors by signing an
open letter urging the EU to raise its
greenhouse gas emission reduction
target for 2030 to 55% when compared
to 1990 levels. The initiative is led by theEuropean Corporate Leaders Group(CLG Europe), a cross-sectorial group ofEuropean businesses working towards
delivering climate neutrality.

Strategy Stakeholder engagement and material topics

29

MATERIALITY MATRIX 2020
General level of importance

3.33

Product environmental and social impact

3.33

6.

Economic performance

3.16

7.

Innovation capabilities ¹

3.09

8.

Raw material availability

2.96

9.

Technology and digitalisation ¹

2.70

10. Transparency and reporting

2.64

11. Talent management

2.59

12. Employee health, safety and wellbeing

2.54

13. Human rights

2.49

14. Traceability

2.43

15. Diversity and inclusion

2.37

16. Governance and business conduct

2.18

17. Water stewardship2.10

18. Climate change

1.87

19. Waste management

1.78

20. Deforestation

1.60

21. Local community development

1.35

22. Labour/management relations

1.13

23. Women’s empowerment

0.83

24. Biodiversity

0.63

internally reviewed our list of material topics during the year to
make sure it is consistent with the Givaudan purpose, our 2025
strategy, and our analysis of risk categories. From this review,
existing topics remain relevant and three additional topics havebeen added. This ensures an integrated materiality matrix thattakes both sustainability and business aspects into consideration.
In 2020, we started our journey of becoming a certified
B Corporation (B Corp) company. This means we will need tomeet the highest standards of verified performance, public
transparency and legal accountability. As part of becoming
B Corp certified, regular materiality assessments will be required.

10

14

5

8

6

9

13

20

18
21

2

23

12

14

22

MEDIUM 1

16
17

11

21

18

2

0

23

19

24
22

1
MEDIUM
3
HIGH

4● Creations● Nature● People● Communities● Governance2

Level of influence on business succes

Level of influence on business success

MEDIUM

9

20

1

24

LOW

10

15

3

1

0

4

7

4

2

LOW

1. These topics have been added following an internal review and plausibility checkof the Givaudan purpose, the 2025 strategy as well as risk management, and do
not represent a mathematical positioning.

13
15

3

HIGH

Consumer health and wellbeing

5.

Level of importance to stakeholders
MEDIUM

4.

2

HIGH

3.43

MEDIUM

3.63

Consumer behaviour and customer success ¹

LOW

Responsible sourcing

3.

3

HIGH

2.

1

4

Level of importance to stakeholders
MEDIUM

3.92

HIGH

Product quality and safety

MEDIUM

1.

LOW

MEDIUM

HIGH

HIGH

Adding to our material topics
After mapping the existing materiality matrix to our purpose focus
areas and to the pillars and targets of our 2025 strategy, we added
the following topics: consumer behaviour and customer success;innovation capabilities; and technology and digitalisation.
Our material topics and strategic priorities are thus fully aligned
and represent topics relevant to our ability to create value for theCompany and our stakeholders over time and are particularlymaterial to our ambition of go even further in making our world ahappier, healthier place.
READ MORE
2020 GRI Sustainability Report ▸ page 23-28 ▸ Reporting practiceGivaudan – 2020 Integrated Annual ReportFinancials

Creating growth for
the Company and all
our stakeholders.

Material topics covered▸▸ Economic performance▸▸ Transparency and reporting32 Financials Business performance – Group

Business performance – Group
Excellent financial performance2020 guidance delivered
As the COVID-19 pandemic continues to have an impact on a
global level, Givaudan sustained strong business momentum
whilst maintaining its operations and global supply chain withminimal disruption. The good growth was achieved across mostproduct segments and geographies, with particularly strong
performance in the household, health and personal caresegments within Givaudan Fragrance & Beauty, as well as inpackaged foods, savoury, snacks and nutraceuticals in Givaudan
Taste & Wellbeing. In Fragrance & Beauty the product segments
most affected by the COVID-19 pandemic, namely Fine
Fragrances and to a lesser extent Active Beauty, showed a solid
improvement in the second half of the year, despite continued
restrictions on retail and travel retail activity. In Taste &Wellbeing the prolonged restrictions affecting foodservice andout-of-home food consumption impacted the performancethroughout 2020.

Earnings Before Interest, Tax, Depreciation
and Amortisation (EBITDA)
The EBITDA increased by 9.6% to CHF 1,397 million in 2020
compared to CHF 1,275 million in 2019, whilst the EBITDA margin
was 22.1% in 2020 compared to 20.6% in 2019. On a comparable
basis, the EBITDA margin was 22.8% in 2020 compared to
21.5% in 2019.

Operating income
The operating income was CHF 996 million compared to
CHF 920 million, an increase of 8.3% versus 2019. The operating
margin was 15.8% in 2020 compared to 14.8% in 2019.

Financial performance

From the onset of the COVID-19 crisis and in line with theCompany’s purpose, Givaudan continues to be strongly focused on:

Financing costs in 2020 were CHF 86 million versus CHF 79 million
in 2019, largely related to the increase in the net debt of the Groupin connection with the acquisitions that the Group has made.
Other financial expense, net of income, was CHF 34 million in 2020
compared with CHF 33 million in 2019.

–– Protecting and supporting all of its employees, be it those onsite or those who are still working from home;

The income tax expense as a percentage of income before taxes
was 15%, compared to 13% in 2019.

–– Meeting the demands of its customers, particularly for those
products which support consumers throughout the
pandemic around the world;

Net income–– Taking care of the communities in which it operates.

Group sales

The net income was CHF 743 million in 2020 compared to
CHF 702 million in 2019, an increase of 5.8%. This results in a net
profit margin of 11.8%, versus 11.3% in 2019. Basic earnings per
share were CHF 80.59 compared to CHF 76.17 for the same
period in 2019.

Givaudan Group full year sales were CHF 6,322 million, an
increase of 4.0% on a like-for-like basis and 1.9% in Swiss francs
when compared to 2019.

Cash flow

Gross margin

Net working capital as a percentage of sales was 24.4% of sales
compared to 24.0% in 2019.

The gross profit increased by 5.1% from CHF 2,530 million in 2019
to CHF 2,659 million in 2020. Due to continued productivity gains
and strong cost discipline, the gross margin increased to 42.1% in2020 compared to 40.8% in 2019.

Givaudan – 2020 Integrated Annual Report

Givaudan delivered an operating cash flow of CHF 1,133 million
in 2020, compared to CHF 1,136 million in 2019.

Total net investments in property, plant and equipment were
CHF 180 million, compared to CHF 201 million in 2019, as theFinancials Business performance – Group

Group – EBITDA
in millions of Swiss francs

Group – Sales
in millions of Swiss francs

4,663

2016

5,051

2017

5,527

2018

6,203

6,322

2019

2020

Group – Operating income
in millions of Swiss francs
875

33

869

1,275
1,126

1,089

1,145

2016

2017

2018

2019

1,397

2020

Group – Total gross investments
in millions of Swiss francs
883

920

996

1,104
830
600
362

2016

2017

2018

2019

2020

Our excellent financial results are atestament to the robustness of ourbusiness and are a demonstration of
our strength in execution and theability of our employees to adapt tochallenging circumstances.

2016

405

2017

2018

2019

2020

Intangible asset additions were CHF 37 million in 2020,
compared to CHF 45 million in 2019 as the Company continued
to invest in its IT platform capabilities, including those related
to the integration of the acquisitions that the Group has made.

Tom Hallam, CFO

Total net investments in tangible and intangible assets were
3.4% of sales in 2020, compared to 4.0% in 2019. Excluding theimpact of the ZIC transaction, total net investments in tangible
and intangible assets in 2019 would have been 5.1% of sales.

Group continues to invest in expanding its capabilities in highgrowth markets. As a reminder, in 2018 the Group completed anagreement to sell and leaseback the Zurich Innovation Centre(ZIC) for a total consideration of CHF 173 million, of which
CHF 60 million was received in the first six months of 2019.

Operating cash flow after net investments was CHF 916 million
in 2020, versus CHF 890 million in 2019. Free cash flow, defined
as operating cash flow after investments and interest paid, was
CHF 811 million in 2020, versus CHF 787 million for thecomparable period in 2019. As a percentage of sales, free cash
flow in 2020 was 12.8%, compared to 12.7% in 2019.

Givaudan – 2020 Integrated Annual Report34 Financials Business performance – Group

Sales performance
2019
Sales
as reported

like-for-likedevelopment

2020
Sales
like-for-like

Change %on like-forlike basis

Acquisition
impact (net)Currency
effects

2020
Sales
as reported

Change %in Swiss
francs

Group

6,203

247

6,450

4.0%

306

(434)

6,322

1.9%

- Fragrances & Beauty

2,799

151

2,950

5.4%

191

(217)

2,924

4.5%

- Taste & Wellbeing

3,404

96

3,500

2.8%

115

(217)

3,398

(0.2%)

in millions of Swiss francs

Sales per region
Fragrances & Beauty sales ¹

Taste & Wellbeing sales ¹

Group sales ¹

2020

2019

2020

2019

2020

Switzerland

35

34

33

26

68

60

Europe

882

859

833

841

1,715

1,700

Africa and Middle-East

255

226

240

247

495

473

North America

618

559

1,150

1,082

1,768

1,641

Latin America

359

346

315

353

674

699

Asia Pacific

775

775

827

855

1,602

1,630

2,924

2,799

3,398

3,404

6,322

6,203

in millions of Swiss francs

Total geographical segments

2019

1.	Sales are revenues from external customers and are shown by destination.

Financial position

Group sales per regionin millions of Swiss francs

Givaudan’s financial position remained solid at the end of theyear. Net debt at December 2020 was CHF 4,040 million,
compared to CHF 3,679 million at December 2019, with theincrease largely driven by the acquisition of Ungerer in the firstquarter of 2020. At the end of December 2020 the leverage
ratio was 50%, compared to 47% at the end of 2019.

Europe1,715

Value added statement
Asia Pacific1,602North America

1,768
Africa andMiddle-East

495

Givaudan – 2020 Integrated Annual Report

Latin America

674

Switzerland

68

The value added is defined as the value created by the activities ofour business and its employees. Givaudan’s economic value retainedof CHF 185 million is the direct economic value generated of
CHF 6,370 million less economic value distributed to stakeholders
through operating costs, employee wages and benefits, payments
to providers of capitals and payments to governments.

2020 Guidance – Responsible growth.
Shared success.
The Company’s 2020 ambition was to create further value
through profitable, responsible growth. Givaudan’s 2020
ambition was defined around the three strategic pillars of‘Growing with our customers’, ‘Delivering with excellence’ and‘Partnering for shared success’.
As part of the Company’s 2020 strategy, Givaudan also sought
to create value through targeted acquisitions, which
complemented existing capabilities in providing winningsolutions for its customers. Since 2014, Givaudan has completed

Financials Business performance – Group

DIRECT ECONOMIC VALUEGENERATED AND DISTRIBUTED
in millions of Swiss francs

35

REVENUES

6,370

ECONOMIC VALUE DISTRIBUTED
Operating
costs

3,868

Employee wages
and benefits

1,493

Payments toproviders of capital

Payments togovernments

657 167

ECONOMIC VALUE RETAINED

185

sixteen acquisitions, which are fully in line with the growth
pillars within the Company’s 2020 strategy.
Ambitious financial targets were also a fundamental part ofGivaudan’s 2020 strategy, with the Company targeting to
outpace the market with 4 – 5% sales growth and a free cash
flow of 12 – 17% of sales, both measured as an average over the
five-year period of the strategy cycle. Givaudan has successfully
achieved average sales growth of 4.9% on a like-for-like basis
and an average free cash flow of 12.6% of sales for the five-year
strategy period 2016-2020.
As part of its 2020 strategy, it was also Givaudan’s intention tomaintain its dividend practice and with a proposed increase in
the dividend to CHF 64.00 per share for 2020, Givaudan has
increased the dividend each year since its listing at the Swissstock exchange in 2000.

Givaudan's purpose
The Company's purpose, 'Creating for happier, healthier lives
with love for nature. Let's imagine together', is at the heart ofits strategy. Under the purpose, Givaudan has defined bold andambitious goals in four domains, namely creations, nature,people and communities. These ambitions include doubling its
business through creations that contribute to happier, healthierlives by 2030, becoming climate positive before 2050, becoming
a leading employer for inclusion before 2025 and sourcing all
materials and services in a way that protects the environment
and people by 2030.

2025 guidance: Committed to Growth,with Purpose
The Company’s 2025 ambition is to deliver sustainable value
creation for all stakeholders. Givaudan’s 2025 strategy is fully inline with its purpose and places customers at the heart of its
business, supporting them to grow and create products that are
loved by consumers.
The 2025 strategy is focused around three growth drivers,‘Expand the portfolio’, ‘Extend customer reach’ and ‘Focusedmarket strategies’ and is supported by four growth enablers,
which are aligned with the Company’s purpose domains, namely
creations, nature, people and communities. These three growth
drivers and four enablers are all underpinned by a commitment
to ‘Excellence, Innovation & Simplicity – in everything we do’.
Ambitious targets are an integral part of Givaudan’s 2025
strategy, with the Company aiming to achieve organic sales
growth of 4 – 5% on a like-for-like basis and free cash flow of atleast 12%, both measured as an average over the five-year
period strategy cycle. In addition the Company aims to deliveron key non-financial targets around sustainability, diversity andsafety, linked to Givaudan’s purpose.

Givaudan – 2020 Integrated Annual Report

36

Financials Business performance – Taste & Wellbeing

Business performance –Taste & Wellbeing

Beverages

32%

Sales

Savoury38%

Taste & Wellbeing sales were CHF 3,398 million, an increase of
2.8% on a like-for-like basis and a decline of 0.2% in Swiss francs.

From a segment perspective Beverages, Dairy, Sweet Goods,
Savoury and Snacks all contributed to the positive sales
performance driven by increased demand for traditional centreof the store foods.
The EBITDA was CHF 720 million, flat compared to 2019. The
EBITDA margin increased to 21.2% in 2020, from 21.1% in 2019.
On a comparable basis the EBITDA margin of Taste & Wellbeing
was 22.1% in 2020 compared to 21.6% in 2019.
The operating income decreased to CHF 460 million in 2020
from CHF 487 million in 2019, largely due to unfavourable
exchange rate effects. The operating margin decreased to 13.5%
in 2020 compared to 14.3% in 2019.

17%

Dairy

Taste & Wellbeing – Sales
in millions of Swiss francs

13%

The sales performance was impacted by the COVID-19
pandemic across all regions, particularly in relation to the
lockdown restrictions which have been in place in many
countries throughout the year. In this respect, Taste & Wellbeing
experienced weaker demand in foodservice and out-of-homefood consumption categories and an increased demand forexisting products in categories such as immunity products,
juice based beverages, culinary solutions, nutritional bars,
savoury and snacks.
In the key strategic focus areas, sales increased double-digit
in health & wellbeing, plant-based proteins and mid-single-digit
in Naturals.

Sweet
goods

2,433

2016

2,708

2017

3,404

3,398

2019

2020

3,002

2018

Savoury

38%

Beverages

32%

Dairy

Total ofgroup sales

54%

13%

Sweet
goods

17%

Asia Pacific

SALES GROWTH
LIKE-FOR-LIKE

2﹒8%
Givaudan – 2020 Integrated Annual Report

Sales in Asia Pacific decreased by 1.0% on a like-for-like basis. In thehigh growth markets, China delivered strong double-digit
performance, followed by solid single-digit growth in Thailand,
whereas the markets in Indonesia, Malaysia, Philippines and India
were strongly impacted by the COVID-19 crisis. From a segment
perspective growth was achieved in Savoury and Snacks, however
this was more than offset by weaker performance in Beverages,
Dairy and Sweet Goods.

Financials Business performance – Taste & Wellbeing 37

Taste & Wellbeing – Total gross investments
in millions of Swiss francs

Taste & Wellbeing – EBITDA
in millions of Swiss francs
720
603

917

720

637

523

2016

2017

2018

2019

2020

262

290

2016

2017

374

2018

2019

423

2020

Taste & Wellbeing – Operating income
in millions of Swiss francs
473

470

487

2017

2018

2019

460

382

2016

2020

Europe, Africa and Middle East

Latin America

Sales in Europe, Africa and Middle East increased by 2.0% on a
like-for-like basis. The mature markets of France, Germany,
Benelux and Northern Europe achieved good single-digit
growth, whilst in the high growth markets there was continued
excellent business momentum driven by double-digit growth inRussia, Turkey, Maghreb and Egypt. The growth was mainly
achieved in the segments of Dairy, Savoury and Snacks.

Sales in Latin America increased 10.7% on a like-for-like basis, led
by strong double-digit growth in Brazil and Argentina and goodsingle-digit growth in Mexico. The growth was driven by thesegments of Beverages, Dairy, Sweet Goods and Savoury.

North America
On a like-for-like basis, sales in North America increased by
4.3% across all customer segments and the performance was a
result of new wins and the growth of existing business inBeverages, immunity products, Snacks, and Sweet Goods.

Givaudan – 2020 Integrated Annual Report38 Financials Business performance – Fragrance & Beauty

Business performance –Fragrance & Beauty
Sales
Fragrance & Beauty sales were CHF 2,924 million, an increase of
5.4% on a like-for-like basis and 4.5% in Swiss francs.

Fragrance & Beauty – Sales
in millions of Swiss francs

2,230

Sales growth was driven by the particularly strong volume
growth of the Consumer Products business unit, despite the
COVID-19 impact on Fine Fragrance and Active Beauty.
Total sales for Fragrance Compounds (Fine Fragrances andConsumer Products combined) increased by 5.9% on a like-forlike basis. In Swiss francs, sales of compounds increased to
CHF 2,529 million from CHF 2,427 million in 2019.
Fine Fragrances sales decreased by 6.0% on a like-for-like basiswith sales impacted by the global COVID-19 pandemic. Whilst
the months of March through May experienced a strong
reduction in demand due to restrictions in retail and travel retailchannels in the major fine fragrance markets, performance
improved gradually in the second half of the year, with growthof 4.2% compared to the same period in 2019.
Consumer Products sales increased by 9.2% on a like-for-likebasis against a strong comparable growth of 7.8% in 2019, driven
by strong performance of new wins and continuing strong
demand for household, health and personal care products
related to COVID-19. This excellent growth was delivered inboth high growth and mature markets and across all customer
groups and regions.
Sales of Fragrance Ingredients and Active Beauty increased by
2.5% on a like-for-like basis, with low single-digit growth bothin Fragrance Ingredients and in Active Beauty despite theimpact of COVID-19.

SALES GROWTH
LIKE-FOR-LIKE

5﹒4%
Givaudan – 2020 Integrated Annual Report

2016

2,343

2017

2,525

2018

2,799

2019

2,924

2020

Fragrance
Ingredients andActive Beauty

14%

Consumer
Products

70%

Fine
Fragrances

16%

Total ofgroup sales

46%
The EBITDA of Givaudan Fragrance & Beauty was CHF 677 million
in 2020 compared to CHF 555 million in 2019, an increase of
22.0%. The increase is mainly driven by higher sales, thecontribution and synergies of the recent acquisitions and theresult of actions taken to contain operating expenses.
The EBITDA margin was 23.2% in 2020 compared to 19.8% in
2019. On a comparable basis the EBITDA margin of Givaudan
Fragrance & Beauty improved to 23.6% in 2020 compared to
21.3% in 2019.
In 2020 Fragrance & Beauty incurred costs associated with the
GBS project of CHF 6 million, compared to CHF 31 million in 2019.

Financials Business performance – Fragrance & Beauty 39

Fragrance & Beauty – EBITDA
in millions of Swiss francs

Fragrance & Beauty – Total gross investments
in millions of Swiss francs
456

677

603
486

555

508

187

2016

2017

2018

2019

2020

Fragrance & Beauty – Operating income
in millions of Swiss francs

493

2016

413

2017

2018

2016

2017

2018

177

2019

2020

Consumer Products
536

396

100

115

433

2019

2020

The operating income was CHF 536 million in 2020, versus
CHF 433 million for the same period in 2019. The operating
margin was 18.4% in 2020 compared to 15.5% in 2019.

Fine Fragrances
Fine Fragrances sales decreased by 6.0% on a like-for-like basiswith solid growth in the second half of the year not able tocompensate for the significant impact of the COVID-19
pandemic related to restricted retail and travel retail activity
throughout the year.
High growth markets delivered double-digit growth, driven by
Latin America where consumer and customer demand remained
strong. The mature markets recorded double-digit sales
decreases driven by Western Europe which was heavily affectedby the strong reduction in global prestige fine fragrance sales.
North America recorded a low single-digit sales decline as certain
customers and channels were able to partially compensate forweaker sales with retailers directly impacted by lockdowns.

Consumer Products sales increased by 9.2% on a like-for-likebasis against a strong comparable growth of 7.8% in 2019, driven
by strong underlying win rate performance and continuing
strong demand for household, health and personal careproducts related to COVID-19. This excellent growth wasdelivered in both high growth and mature markets and acrossall customer groups and regions.
On a regional basis, Latin America reported double-digit
growth across all customer groups and sub-regions. Asia
modest sales increase was led by local and regional customers.
Europe, Africa and the Middle East delivered high single-digit
sales growth led by local and regional customers and strong
double-digit growth in the African and Middle East sub-region.
North America posted double-digit growth spread across all
products segments and customer groups.
On a product segment basis, sales growth was led by doubledigit increase in Home Care followed by high single-digit
growth in Fabric Care and Personal Care.

Fragrance Ingredients and Active Beauty
Sales of Fragrance Ingredients and Active Beauty increased by 2.5%
on a like-for-like basis. Active Beauty performed well in the difficult
market conditions and closed the year with low single-digit
growth on like-for-like basis against strong comparables, mostnotably driven by double-digit performance of premium active
ingredients. Fragrance Ingredients delivered low single-digit
growth in 2020.

Givaudan – 2020 Integrated Annual Report

40 Financials Our natural hedges offer sustainable return on investment

Our natural hedges offer
sustainable return on investment
Since our listing on the Swiss stock
exchange in 2000 (GIVN), we havecontinuously created shareholder
value through a year-on-yearincrease in the dividend paid toshareholders, as well as throughpositive share price development
and share repurchase programmes.
This history of delivering with excellence is based on strong
financial performance. We invest for future long-term growth
and will continue creating value for shareholders, building on
our heritage of success. As the COVID-19 pandemic continues
to have an impact on a global level, Givaudan sustained strong
business momentum whilst maintaining its operations andglobal supply chain with minimal disruption. This resilience is aclear demonstration of the efficiency of our natural hedges
across geographies, customer types, and product categories.

Sharing value with our shareholders
Since the Company’s IPO in 2000, we have created overCHF 35 billion of total shareholder return, with an averageannual yield of 13.3% compared with 4.1% for SMI Index in the
Swiss market. The dividend has risen year on year, reflecting ourcommitment to returning cash to shareholders.
At the end of 2020, Givaudan had approximately 34,065 registeredshareholders owning 63% of the capital. The top 20 registered andnon-registered shareholders owned 61% of the capital. Swiss andUS shareholders held approximately 57% of all shares.
Givaudan’s free cash flow at the end of 2020 was CHF 811 million.
At the Annual General Meeting on 25 March 2021, the Board of
Directors will propose a cash dividend of CHF 64.00 per share forthe financial year 2020, an increase of 3.2% compared to 2019. If

Givaudan – 2020 Integrated Annual Reportapproved, this will be the 20th consecutive dividend increase
following Givaudan’s listing on the Swiss stock exchange.

Our dialogue with the capital market
We offer timely and responsible information to ensuretransparency and continuously raise awareness about our
Company. To help achieve this and to meet existing andpotential shareholders, roadshows and conferences are held bymembers of our Executive Committee together with ourInvestor Relations team during the year. In the current context
of the Covid-19 pandemic, our interactions with market players
have remained very strong, whilst becoming virtual throughvideoconferences and webcasts.
READ MORE
www.givaudan.com ▸ Investors ▸ Investor events

How the market views us
Currently 24 financial analysts report on Givaudan regularly.
The latest forecast and recommendations can be found online atwww.givaudan.com – investors – analysts coverage and consensus.
This information is reference only.

Givaudan as a highly-rated sustainable
investment
Givaudan’s work in sustainability and ESG has been widely
recognised externally. This includes recent confirmation ofGivaudan’s ESG risk rating by Sustainalytics which categorised
the business as low-risk and amongst industry leaders: 6th outof 400. It also includes CDP double A rating for the second
consecutive year for leadership in climate action and water
stewardship, a platinum EcoVadis medal, inclusion in the SXISwiss Sustainability 25 index, and inclusion in FTSE4Good IndexSeries ranking us in top 1% performers amongst peers.

Our credit ratings
Our credit ratings confirm the Company’s market leadership
position and strong financial profile. In 2020 our ratings were:
S&P global ratings: A- credit rating, with a stable outlook.
Moody’s investors Service: Baa1 rating, with a negative outlook.

Financials Our natural hedges offer sustainable return on investment

41

Key share figures
2020

2019

2018

2017

2016

34,441

27,98721,016

20,794

17,230For the year ended 31 December. In Swiss francs except for number of shares

Market capitalisation (in millions)
Number of issued shares

9,233,586

9,233,586

9,233,586

9,233,586

9,233,586

Share price as at last trading day

3,730

3,031

2,276

2,252

1,866

Share price, highest

4,075

3,052

2,478

2,289

2,106

Share price, lowest

2,681

2,285

2,087

1,716

1,674

Earnings per share – basic (CHF)
Total shareholder return (in %)

80.59
25.11

76.17
35.81

71.92
3.64

78.18
23.69

69.95
7.86

Share price development
in %
1000
900
800
700
600
500
400
300
200
100
0
2000

2001

2002

2003 2004 2005 2006

Givaudan

2007

2008 2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

60

62

54

58

641

56

787

811

2019

2020

SMI

Dividend per share and free cash flowin Swiss francs | in millions of Swiss francs
47

50

36

15.4
7

6.5

340
203

2000

2001

16.3

17.6

18.8

19.5

20

8.1

20.6

2002

Free cash flow

22
662

549

295

2003

289

720
604

512

437

390
273

21.5

703
597

594

2016

2017

262

2004 2005 2006

157

145

2007

2008 2009

117

2010

2011

2012

2013

2014

2015

2018

Dividend

1. Subject to shareholder approval at the AGM on 25 March 2021.

Givaudan – 2020 Integrated Annual Report

42

Financials Consolidated financial statements

Consolidated financial
statements
Consolidated Income Statement
For the year ended 31 December
2020

2019

Sales

6,322

6,203

Cost of sales(3,663)(3,673)Gross profit

2,659

2,530

as % of sales

42.1%

40.8%

Selling, marketing and distribution expenses

(848)

(791)

Research and product development expenses

(536)

(528)

Administration expenses

(218)

(221)

in millions of Swiss francs, except for earnings per share data

Share of results of joint ventures and associates

3

4

Other operating income

45

41

Other operating expense

(109)

(115)

Operating income

996

920

15.8%

14.8%
(79)

as % of sales
Financing costs(86)

Other financial income (expense), net

(34)

(33)

Income before taxes

876

808

Income taxes

(133)

(106)

Income for the period

743

702

Attribution
Income attributable to non-controlling interests––

Income attributable to equity holders of the parent

743

702

as % of sales

11.8%

11.3%

Earnings per share − basic (CHF)

80.59

76.17

Earnings per share − diluted (CHF)

79.96

75.59

READ MORE
2020 Governance, Compensation and Financial Report ▸ page 39 – 101 ▸Consolidated financial report

Givaudan – 2020 Integrated Annual ReportFinancials Consolidated financial statements

43

Consolidated Statement of Comprehensive Income
For the year ended 31 Decemberin millions of Swiss francs

2020

2019

Income for the period

743

702

Items that may be reclassified to the income statement
Cash flow hedges
Movement in fair value, net

(51)

(56)

Gains (losses) removed from equity and recognised in the consolidated income statement

66Movement on income tax

4

4

Exchange differences arising on translation of foreign operations
Movement in fair value arising on hedging instruments of the net assets in foreign operations

58

51

(385)

(99)

5

(6)

Remeasurement gains (losses) of post employment benefit obligations

46

(91)

Movement on income tax

(5)

(3)

Other comprehensive income for the period

(322)

(194)

Total comprehensive income for the period

421

508

Change in currency translation
Movement on income tax
Items that will not be reclassified to the income statement
Defined benefit pension plans

Attribution
Total comprehensive income attributable to non-controlling interests––

Total comprehensive income attributable to equity holders of the parent

421

508

READ MORE
2020 Governance, Compensation and Financial Report ▸ page 39 – 101 ▸Consolidated financial report

Givaudan – 2020 Integrated Annual Report

44

Financials Consolidated financial statements

Consolidated Statement of Financial Position
As at 31 December
31 December
2020

31 December
2019

Cash and cash equivalents

411

452

Derivative financial instruments

54

24

Financial assets at fair value through income statement44Accounts receivable - trade

1,359

1,365

Inventories

in millions of Swiss francs

1,201

1,149

Current tax assets

6650

Prepayments

50

35

Other current assets

154

163

3,299

3,242

Current assets
Derivative financial instruments

65

1

Property, plant and equipment

2,222

2,326

Intangible assets

4,543

4,286

Deferred tax assets

218

211

Post-employment benefit plan assets

20

32

Financial assets at fair value through income statement

180

177

Interests in joint ventures and investments in associates

35

34

Other long-term assets

76

87

7,359

7,154

Non-current assets

10,658

10,396

Short-term debt

Total assets

206

335

Derivative financial instruments49

29

Accounts payable - trade and others

809

833

Accrued payroll & payroll taxes

211

189

Current tax liabilities

157

111

Financial liability - own equity instruments

108

108

Provisions

23

18

Other current liabilities

233

207

1,796

1,830

Current liabilities
Derivative financial instruments
Long-term debt

103

79

4,245

3,796

Provisions

71

69

Post-employment benefit plan liabilities

545

601

Deferred tax liabilities

310

280

Other non-current liabilities

8082

Non-current liabilities

5,354

4,907

Total liabilities

7,150

6,737

Share capital
Retained earnings and reserves
Own equity instruments

92

92

6,133

5,961

(168)

(168)

Other components of equity(2,567)(2,245)Equity attributable to equity holders of the parent

3,490

3,640

Non-controlling interests

18

19

Total equity

3,508

3,659

Total liabilities and equity

10,658

10,396READ MORE
2020 Governance, Compensation and Financial Report ▸ page 39 – 101 ▸Consolidated financial report

Givaudan – 2020 Integrated Annual ReportFinancials Consolidated financial statements

45

Consolidated Statement of Changes in Equity
For the year ended 31 December

2020
in millions of Swiss francs

Balance as at
1 January

Share
CapitalRetainedearnings andreserves

Own equity
instruments

92

5,961

(168)

Income for the period

Cash flow
hedgesCurrencytranslationdifferences

Remeasurement of post
employment
benefitobligations

Equityattributable
to equity
holders of
the parents

Noncontrollinginterests

Total
equity(107)(1,613)

(525)

3,640

19

3,659

743

–

743

743

Other comprehensive
income for the period
Total comprehensive
income for the period

743

Dividends paid

(571)

(41)

(322)

41

(41)

(322)

41

(322)
421

(322)
–

(571)

421
(571)

Movement on own
equity instruments, net
Non-controllinginterests
Net change in other
equity items
Balance as at
31 December

2019
in millions of Swiss francs

Balance as at
1 January

(571)
92

6,133

Share
CapitalRetainedearnings
and reserves

92

5,811

Income for the period

(168)

702
(552)

(571)

(1)

(572)

(1,935)

(484)

3,490

18

3,508

Own equity
instruments

Cash flow
hedgesCurrencytranslationdifferences

Remeasurement of post
employment
benefitobligations

Equityattributable
to equity
holders of
the parents

Noncontrollinginterests

Total
equity

(142)

(61)

(1,559)

(431)

3,710

22

3,732

702

–

702

Other comprehensive
income for the period

Dividends paid

(1)

(148)

702

Total comprehensive
income for the period(1)

Movement on own
equity instruments, net

(46)

(54)

(94)

(46)

(54)

(94)

(26)

(194)
508

Balance as at
31 December

92

(552)

(26)

5,961

(168)

(107)

(1,613)

(525)

–

508

(552)

(552)

(26)

(26)

Non-controllinginterests
Net change in other
equity items

(194)

–

–

(578)

(3)

(581)

3,640

19

3,659

READ MORE
2020 Governance, Compensation and Financial Report ▸ page 39 – 101 ▸Consolidated financial report

Givaudan – 2020 Integrated Annual Report

46

Financials Consolidated financial statements

Consolidated Statement of Cash Flows
For the year ended 31 Decemberin millions of Swiss francs

2020

2019

Income for the period

743

702
106

Income tax expense

133

Interest expense8068

Non-operating income and expense

40

44

Operating income

996

920

Depreciation of property, plant and equipment

201

193

Amortisation of intangible assets

187

161

Impairment of long-lived assets

13

1

Other non-cash items- share-based payments

56

41- pension expense

49

38- additional and unused provisions, net

2012- other non-cash items

(18)

–

Adjustments for non-cash items

508

446

(Increase) decrease in inventories

(68)

(28)

(Increase) decrease in accounts receivable

(76)

(101)

(Increase) decrease in other current assets

(19)

25

Increase (decrease) in accounts payable

27

108

Increase (decrease) in other current liabilities

2

(19)

(Increase) decrease in working capital

(134)

(15)
(106)

Income taxes paid

(125)

Pension contributions paid

(40)

(37)

Provisions used

(16)

(21)

Purchase and sale of own equity instruments, net
Cash flows from (for) operating activities

(56)

(51)

1,133

1,136

Table continued on page 47 ▶

Givaudan – 2020 Integrated Annual ReportFinancials Consolidated financial statements 47▶ Table continued from page 46

in millions of Swiss francs

Increase in long-term debt

2020

2019

1,405

660

(Decrease) in long-term debt

(784)

(184)

Increase in short-term debt

3,044

2,904

(Decrease) in short-term debt

(3,300)(2,919)Cash flows from debt, net

365

461

Interest paid

(53)

(51)

Purchase and sale of derivative financial instruments, net

(19)

–

Lease payments

(52)

(52)

Transactions of non-controlling interest

(7)

(3)

Others, net

(9)

(7)

Cash flows from financial liabilities

225

348

Distribution to the shareholders paid

(571)

(552)

Cash flows from (for) financing activities

(346)

(204)

Acquisition of property, plant and equipment

(188)

(275)

Acquisition of intangible assets

(39)

(45)

Acquisition of subsidiary, net of cash acquired

(629)

(478)

Proceeds from the disposal of property, plant and equipment

874

Proceeds from sales of intangible assets

2–

Proceeds from disposal of investment property

2Interest received

3

Dividends received from jointly controlled entities

1

2

Purchase and sale of financial assets at fair value through income statement, net

(3)

(105)

Impact of financial transactions on investing, net

25

(29)

Others, net

1

(43)

Cash flows from (for) investing activities

(819)

(891)

Net increase (decrease) in cash and cash equivalents

(32)

41

(9)

(12)

Net effect of currency translation on cash and cash equivalents

6

Cash and cash equivalents at the beginning of the period

452

423

Cash and cash equivalents at the end of the period

411

452

READ MORE
2020 Governance, Compensation and Financial Report ▸ page 39 – 101 ▸Consolidated financial report

Givaudan – 2020 Integrated Annual ReportCreations

Let’s imagine together
that through ourcreations more people
will enjoy happier,healthier lives.

Material topics covered▸▸ Consumer behaviour and customer success▸▸ Consumer health and wellbeing▸▸ Innovation capabilities▸▸ Operational excellence▸▸ Product quality and safety▸▸ Product environmental and social impact▸▸ Technology and digitalisation

50

Creations Creating value for our customers

Creating value for our customers
The Givaudan purpose of creating
for happier, healthier lives is a
strategic guide so our creations
and innovations can contribute tothe overall wellbeing of the endconsumer, directly or indirectly.
Our ‘creations’ growth enabler aims to take us to a next level withthe ambition of doubling our business by 2030 through creations
that contribute to happier, healthier lives. In short, we aim to dogood – benefitting people while also doing well, increasing profit
and remaining the industry leader. This means creating meaningful,delightful moments for people while protecting the planet.

Expanding our product offering to our customers
Over the last few years, we have expanded our portfolio in asignificant way across flavours, taste, functional and nutritional
solutions with a deep knowledge of the food ecosystem. This
enables us to provide customers with a broader range of solutions
that match consumer demands for clean label, organic and naturalingredients. In fragrances, we have built our ambitions with local
and regional customers, health and wellbeing as well as increasing
the amount of ingredients we make through vertical integrations.
We expanded as well our portfolio of natural and bio-sourced
products supported by a strong research and development
biotechnology platform.
With this expanded portfolio, in 2020 we evolved the name of ourdivisions. Our Flavour Division is now Taste & Wellbeing, capturing
the value we bring to customers by creating more complete
future-facing food experiences. Our new value proposition is to go
beyond great taste and create experiences that do good and feel
good, for body, mind and planet. We do this through co-creationand collaboration, by leveraging our knowledge of the whole foodecosystem and developing the right solutions for a sustainable
tomorrow. Our Fragrance Division is now Fragrance & Beauty,
highlighting our leadership in fragrances while signalling the
expansion into beauty to become the creative partner of choice
not only in personal, fabric, hygiene and home care but also in finefragrance and beauty overall.

Accelerating our digital ambitions
In seeking ways of bringing value to our customers in all ourbusiness areas, we continue to invest in our digital capabilities
throughout the value chain, including artificial intelligence,
consumer and customer foresight, robotic process automation,
Factory 2.0 and traceability. Of these, Factory 2.0 is how we
identify the technologies that can improve our production
environment via, for example: automation, including robots andprocesses; safety, through training and monitoring; decisionmaking, through forecasting and predictive maintenance; andsustainability, by greener processes.
Our Digital Factory continues to be an accelerator of our digital
ambitions, immersing project teams in an innovative environment
to be better and faster at experimenting transformative digital
opportunities. Opened in 2019, it has had more than 65 visits andworkshops and over 12 digital projects accelerated. And ‘Carto’,
where human and machine meet in playful, multi-sensorialinteraction for the creation of new flavours and fragrances for ourcustomers, is a genuine creative experience that heralds theincreasing role of artificial intelligence. There is more to this thanjust new and clever technology: Carto enables the harnessing ofcenturies of creation data, bringing it to the perfumer’s andflavourist’s fingertips.
We also use technology to learn more about consumer
behaviours. Through advanced analysis of social media andother internal and external data, we can capture consumer
insights and convert them into business foresights. By using
technology in this way, we can offer customer-relevantinnovations that promote collaboration and data exchange at
much earlier stages of the creation process.

We will double our business through creations
that contribute to happier, healthier lives
AMBITION
BY 2030CHF
ACHIEVEDIN 2020

CHF

Givaudan – 2020 Integrated Annual Reportbillion in sales

6,3

billion in sales

Creations Co-creating with customers and partners 51

Co-creating withcustomers and partners
Co-creation and collaboration withcustomers and partners enable us
to innovate and develop gamechanging products and solutions
that shape the worlds of taste,nourishment, scent and beauty.
In broadening and expanding our offerings to customers, we are
creating a global co-innovation network of accelerators andincubators to enable us to leverage the entrepreneurial andinnovative ideas that start-ups have to offer. Examples of what weare doing in this area include a partnership with Bühler to open aunique Innovation Centre in Singapore dedicated to plant-based
food. Based at our Woodlands site, this co-creation hub will bejointly run and supported by experts from both companies, bringing
together extrusion and processing equipment from Bühler and our
kitchen laboratory facilities and flavours expertise. This hub will
accelerate the adoption of alternative protein technology in theregion and help our customers get to market faster.
Through our partnership with MassChallenge in Switzerland, weannounced six start-ups for acceleration – three internal and threeexternal – whose innovative ideas and related technologies wereidentified as having potential for our Company as well as being inline with our strategic innovation pillars. Meanwhile MISTA, ourinnovation platform for the food industry based in San Francisco –for start-ups and as well as established organisations – expanded
its network of members and continues to make significant
innovation contributions. We also invest in fostering innovation infoods through our engagement with academia. We joined as
founding members, together with Bühler, Nestlé, ETH and EPFL,
the FutureFood initiative in Switzerland. The purpose is to drive
innovation in food sponsoring fellowship programmes.

experienced significant growth in recent years. The strong shift
towards plant-based meat alternatives and alternative protein
sources is one of the greatest innovation opportunities in today’s
food industry. And we are pioneering food innovation solutions
for plant-based foods which we see as intersecting sustainability
and health – solutions that are better for the environment aswell as being healthier for people.
For example, working closely with Redefine Meat, we are using
our industry-leading capabilities in taste to ensure the new AltSteak™ offers the satisfying flavours, aromas and eating
experience of real meat. Other partnerships include the Plant
Meat Matters consortium, a global initiative led by Wageningen
University & Research (WUR) of the Netherlands, which is
working to produce plant substitutes for beef and potentiallyother meat types such as pork or chicken.
We are also exploring the protein space with Universityof California, Berkeley through the Product Development
Program in the Department of Chemical and BiomolecularEngineering. The most recent collaboration has been a pioneeringresearch project which identified the top six new up-and-coming
sources of plant-based protein that could be game-changers forthe food industry, in particular nutritional beverages.

Innovative partnerships are crucial indriving business growth and ensuring
a sustainable future.

Advancing innovation in plant-based proteins

In another co-creation project, we unveiled Ultimine™ Zinc in
2020, a new addition to our broad portfolio of clean label
immunity solutions developed with Cura Global Health.
Ultimine™ Zinc is the world’s first fermented wholefood zinc
supplement that can be used in a range of food and nutrition
applications and addresses concerns around immunity as wellas trends for ingredients perceived as natural.

We know that co-creation partnerships can expand and augment
innovative thinking and we are partnering with many of theprominent players in plant-based proteins, a space which has

Co-creation using our VAS (Virtual Aroma Synthesiser) technology
offers numerous benefits for our customers and allows us toGivaudan – 2020 Integrated Annual Report

52 Creations Creating value for our customers

improve our communication, better understand consumers andspeed products to market. During the COVID-19 pandemic
we were able to use VAS to successfully co-create remotely withour customers.
We also established a strategic research partnership with thebiotech company Novozymes for the development of ingredientsand technologies for customers. With Novozymes, we will beworking on the research and development of innovative
sustainable solutions in the areas of food and cleaning. The twocompanies will work on specific projects with the aim of bringing
to their respective customers a differentiating solution offering.
We have the potential to grow with our respective customers
while increasing our positive impact on the world with products
consumers feel good about and which preserve our planet.

Accelerating the pace and quality of ideation
with key suppliers
There is also a rich source of innovation among our suppliers andwith them we can achieve a level of innovation that goes beyond
what we can do on our own. While ‘we know what we need’,
collaboration that is more focused and specific, can help us in‘what we don’t know we need’.
As part of our Supplier Enabled Innovation programme, we havea strategic initiative with a selected number of partners called‘Connect to Win’. Its aim is to unlock value from our existing
supplier relationships and create a pipeline of technologicalinnovations that differentiate us in the market. It is a structured,
open door approach that acknowledges the possibilities ofadding significant value to our existing procurement approaches
while creating value in Givaudan’s innovation agenda.

Through supplier-enabled innovation
we can increase our intellectual
resources and innovation momentum.

While COVID-19 has restricted the full expansion of this initiative,it also created an environment for shorter, more focused andmore numerous contacts with our strategic partners. Before, ourdiscussions with one of our strategic partners would typicallyinvolve multiple face-to-face conversations. The ‘new norm’ ofvirtual meetings intensifies these contacts, increasing intimate
conversation which drives the dialogue.
By 2025, procurement, including ‘Connect to Win’ and the manyother Supplier Enabled Innovation activities, is expected to be asignificant contributor to the innovation agenda. All ourcollaborations with suppliers will ultimately feed and fuel ourinnovation activities in different ways, each contributing to ourefforts of creating together a responsible and sustainable future.

Givaudan – 2020 Integrated Annual Report

Thefishless
wave

Creations The fishless wave

53

The
fishless

wave

Plant-based fish and seafood are
expected to become a top global trend,
according to research conducted by
Givaudan, in collaboration with the
University of California, Berkeley.

Givaudan is well known as a leader in plant-based proteins,formulating natural solutions for meat alternative
products. With the trend towards meat-free products growing
fast, a fishless wave is on the horizon, in which consumers
will be able to enjoy the experience of eating plant-based fishand seafood. To fully explore the size and kinds of opportunity
for plant-based fish and seafood, Givaudan is collaborating
on research with the University of California, Berkeley, and isat the forefront of developing products that mimic a freshfrom-the-sea, holistic eating experience.
Plant-based foods are now mainstream and likely to remain so,
as an increasing number of consumers adopt vegetarian orvegan diets, and many others choose a flexitarian or ‘casualvegetarian’ path. Plant proteins which mimic the fullexperience of eating fish and seafood, with authentic colour,
taste and texture, are a niche in which there is a huge amountof interest from both consumers and the food industry.

Givaudan – 2020 Integrated Annual Report54

Creations The fishless wave

As a global leader in the alternative
protein space, Givaudan collaborates
with the brightest and best minds
from across the industry to help
tackle the complex challenges ofthese products.
we only need to add flavour, because the juiciness is alreadythere. But for plant-based food we have to replicate all thecharacteristics, and each one is important. Take colour as an
example: would you eat a salmon alternative if it was not pink?”
At Givaudan, we are exploring the opportunities and innovations
that will be game-changing for the industry and our business– and while we are at an early stage, there is a certain sense ofurgency. Fish consumption is rising, with consumers eating an
average of 20 kilograms of fish each year, while fish stocks are
decreasing. Farm-raised fish, or aquaculture, has been seen as
one answer and now accounts for about 50% of production, but
is a major cause of pollution in water courses.
Sylvain, Givaudan Global Product Manager for Meat Substitutes,
Fish and Seafood, explains: “Fish is as popular as ever, and a
combination of factors is driving interest in plant-basedalternatives. Consumers have a number of ethical, environmental
and well-being concerns about fish. They are increasingly awareof how fish and seafood are affected by over-fishing, pollution,and climate change. They also have concerns over the health
implications of microplastics and mercury levels in fishand seafood. We see a high level of enthusiasm from the foodindustry for fish and seafood alternatives, and at Givaudan
we are able to bring our expertise in fish and seafood
alternatives to bear to create more complete, future-facing
food experiences for people around the world.”
The fishless wave may be only just beginning, but at Givaudan,
work is advancing to create authentic dishes built around aholistic eating experience that takes into account manyfactors, including fibrosity, bite and mouthfeel, colour andtaste. Whether the end product will be a fish stick, canned
tuna, smoked salmon or another dish, the key is in firstunderstanding the behaviour of the plant protein that will be
used, an area in which Givaudan has tremendous expertise.
“By understanding the protein base, we can generate specificprofiles depending on the protein itself, and work on all aspectsof the product,” Sylvain adds. “The goal is to create fish andseafood that not only tastes good, but is a more complete,future-facing food experience. If you think about cooking meat,

Givaudan – 2020 Integrated Annual Report

Protein sources can range from the more established soy, pea
and wheat to emerging varieties, such as chickpea, faba, lentil,
seaweed and algae. Givaudan’s technology and expertise
allows our experts to tackle the trickier challenges of adapting
the protein. The flaky texture of white fish is not easy to mimic,
but Givaudan is investigating how advanced texturisation
technology can replicate it in an authentic way. Functional
ingredients such as gels and starches are also being used tocreate the feel of fish in the mouth, from a creamy sensationon the tongue to an elastic bite when chewing. Givaudan is
exploring a wide range of colours, as well as flavours andmasking solutions to balance the taste of plant proteins andintroduce a fresh-from-the-sea character. Umami, for example,
can enhance the salivation that we would generally experience
when eating fish and seafood. To add further complexity tothe product, Givaudan experts are working on replicating
different cooking cues – smoked, canned, boiled or raw. And a
final touch to connect consumers to the idea of fresh fish andseafood is to add ingredients like citrus, herbs and vegetables.
Sylvain concludes: “As a result of the research we canrecommend the food industry to target five species which havea positive image with consumers and which face sustainability
challenges - salmon, tuna mainly as a canned product, shrimp,
crab and white fish, in that order. At Givaudan, we are excitedabout the opportunities ahead and we see great potential forthis niche in the plant protein market.”

United Nations Sustainable Development Goals (SDGs)
Through our approach to plant-based fish and seafood wecontribute to solving current sustainability challenges anddirectly promote SDGs 2, 9 and 12.

Creations Ensuring sustainability for the future of perfumery

55

Ensuring
sustainability
for the futureofperfumeryMore and more, consumers are demanding sustainable fragrances in the
products they use every day. A strengthened approach allows us to help
our customers bring joy to people around the globe with love for nature.
Givaudan – 2020 Integrated Annual Report56

Creations Ensuring sustainability for the future of perfumery“People from all walks of life increasingly want to enjoy
the delight of fragrances produced with care for natureand for the local communities who provide the ingredients,”
says Maurizio Volpi, President of Givaudan’s Fragrance &Beauty. “Givaudan has always been driven by our love fornature. This is why we are leading the way in making the futureof perfume more sustainable and ensuring that our customers
can meet the expectations of people everywhere forresponsibly produced fragrances.”
With this in mind, in 2020 we put in place solid foundations
that improve the ways in which fragrances are designed sothat sustainability is at the root of the entire process.
Our pioneering Naturality Platform™ has matured and is our
guiding star for fragrance design, transforming our ingredients
palette and the way we formulate fragrances. In parallel, our
Naturals at Origin strategic approach has been reinforced
to not only source naturals directly in the country of origin,but also develop and innovate locally.
“The future of perfumery is very exciting as our industry finds
new and delightful fragrances which enable more people to live
happier, healthier lives without exacting a price from nature orcommunities involved in supply or production,” continues
Maurizio. “With our new design platform and sourcing strategy,
we can support our customers in meeting growing demand forsustainable products. This is a perfect fit with our ambition to
grow with our customers, and with our purpose to enable
more people to live happier, healthier lives.”
The Naturality Platform™ provides tools and information to
enable our customers to make better decisions about their
future product design, selecting ingredients from renewablesources and which are biodegradable and responsibly sourced.
The platform brings about sustainable creation throughthree pillars: understanding consumers’ wishes, designingsustainably, and measuring the impact of formulas on nature.
The initial step is to help our customers gain deep insights into
what consumers around the world expect. These insights comefrom the first pillar, Understanding: Consumer study programmes,and show how significant the trend towards care for nature is.
In the next step, our customers can gain a clear understanding of
the market, so that creative teams can invent the right fragrance,and design it to be as sustainable as possible. This takes place
under the second pillar, Designing: The Naturality Guide™.

Givaudan – 2020 Integrated Annual Report

The third pillar, Measuring: The Naturality Index™, helps
perfumers to consider the environmental impact of the formula,depending on the ingredients they have chosen, looking atfactors such as biodegradability, renewability, carbon footprint
and sourcing.
Maurizio adds: “Many wonderful and unexpected solutions are
already emerging from the platform, from fine fragrances topersonal care fragrances and fabric care. Feedback from ourcustomers is that it helps them to anticipate and exceed
consumers’ wishes.”Complementing the Naturality Platform™ is Naturals at Origin,
the sourcing strategy supporting our label Orpur®. Building on
our history of responsible sourcing, it limits environmental
impact, brings progress to farmers, producers and the local
communities they live in, and ensures a sustainable supply of
precious natural ingredients.

Creations Ensuring sustainability for the future of perfumery

With our new design platform andsourcing strategy, we can support ourcustomers in meeting the growing
demand for sustainable products.
This is a perfect fit with our ambition
to grow with our customers, and with
our purpose to enable more people tolive happier, healthier lives.
We now source 80% of the natural ingredients we use directlyfrom the country of origin through our own network. This
strategy comes after we have already added around 100 new
natural ingredients into the perfumery palette in the past few
years and will pave the way for many more.

57

As Maurizio concludes, our strategy helps to ensure the future ofsustainable fragrance ingredients and perfumery itself: “Givaudan
has always led the way in protecting and developing naturalingredients with the future of perfumery in mind. We arecommitted to being a force for good in the lives of the communities
who produce our ingredients. Our approach brings us close to thefields, which means we can innovate to enrich the perfumers’
palette in a responsible way. As a result, we can increase ourcapability to create nature-conscious fragrances – supporting ourcustomers to meet the growing demand for sustainable products.”
United Nations Sustainable Development Goals (SDGs)
Our Naturality Platform™ allows us to take into account various
sustainability aspects when designing fragrance innovations,contributing specifically to SDGs 12, 13 and 15.

Givaudan – 2020 Integrated Annual Report

58 Creations 2020 key innovation achievements

2020 key innovationachievements

TurmiPure Gold®

TASTE & WELLBEING
By delivering differentiating
technologies for flavour,
taste, natural functional andnutritional ingredients,
and integrated solutions, our
Science & Technology teambrings long-term andsustainable successto our customers.

Ultimine™ ZincAward winning 100%
natural*, it is the world’s firstclinically proven bioequivalentturmeric extract at a low dose.
(* No artificial or synthetic
ingredients.)

The word’s first wholefood
fermented zinc for immune
health support. Delivering an 11mg
dose in a 200mg serving, it can beused in a wide range of food,beverages and healthsupplements.

Flowens®

Named Ingredient of theYear – Healthy Ageing at
the 2020 NutraIngredientsAwards, this full spectrum
cranberry ingredient has shownpromising results in managing
overactive bladder inwomen in a recently
published study.

Natural nutritional
ingredients

Vegebrite®
Veggies reds

Meatsubstitutes

Fat encapsulation
technology helps reduce up to
75% of the fat and 30% of thecalorie in meat substitutes.
Authentic and real meaty taste
significantly bridges thetaste gap between meatand plant proteins.

VirtualTasteTrek® Citrus

A multi-sensorial virtual reality
tool that transports customers
from anywhere in the world
to the California citrus
groves, enabling flavour
co-creation.

Natural functional
ingredients
New natural
fermentation
derived ingredients

Proprietary and differentiatingprocesses to produce highimpact ingredients, withlow cost and decreased
environmental
footprint.

Sweet taste

Health conscious naturaland organic solutions, to create
satisfying flavours that deliver
full enjoyment, withless sugar.

Givaudan – 2020 Integrated Annual Report

Our natural maskers,
texturisers and emulsifiers help
our customers achieve the desired
mouthfeel experience –with no compromiseon performance.

Sweet andsavoury

Foodstufforange colour

XtraBlend® RN

Natural colour pigment helping
our customers achieve exact
colour targets in foodapplications.

Derived from spinach androsemary, it offers a highperformance natural alternative toEthylenediaminetetraacetic acid
(EDTA) for mayonnaise, salad
dressings and other lipid
emulsions.

Mouthfeeldesigned by nature

Our natural texturisersand emulsifiers help ourcustomers achieve the desired
mouthfeel experience –with no compromise on
performance.

Creations 2020 key innovation achievements

59

Koffee'Up™

A sustainable beauty oil
crafted from upcycled
Arabica spent coffee groundswith remarkable skin carebenefits from hydration
to anti-ageing.

FRAGRANCE & BEAUTY
By exploring unique and innovative ways which aresustainable and safe, the Science & Technology teamin Fragrance & Beauty helps to bring amazing
technology and innovative smelling solutions
to delight consumers in new
and different ways.

From
leftovers to luxury,
pioneering upcycling
in fragrances

Neosalyl™

B-Lightyl™

Our new marine ingredientwith the power to correct dark
spots on all skin complexion
types. Naturally sourced in
Brittany, France.

Ebelia®

MoodScentz™

Obtained from the naturalessential oil of the Wintergreen
plant. Brings all its benefits indermo-purification for skin, andshininess and anti-dandruff
for hair care.

Our new captive ingredient,
standing out for its olfactory
contribution, but also for ourlove for nature as it follows
the principles of Green
Chemistry.

Patented creative guidelines
enabling our perfumers to design
feel-good, mood-enhancing
fragrances.

Fragrance
innovation
enhancingwellbeing
Tomorrow's
ingredients
made today: ourcommitment toa sustainable
futureNew Red 1805

VivaScentz™

Synchronight™

A cosmetic ingredient thatfights the effects of digitalstress. Activated by the skinmicrobiome, it protects skinmelatonin production, improving
sleep quality and preventing
premature ageing.

A ground-breaking
fragrance technology that
influences the way perfumes are
created, helping us to bringconsumers meaningful fragrance
solutions to counterbalance
negative stress.

Crafted by green
fractionation and is the newvegan red pigment for make-up, theeasy way to switch fromsynthetic to a sustainable
alternative.

Givaudan – 2020 Integrated Annual ReportNatureLet’s imagine together
that we show our love
for nature in
everything we do.

Material topics covered▸▸ Biodiversity▸▸ Climate change▸▸ Deforestation▸▸ Product environmental and social impact▸▸ Raw material availability▸▸ Responsible sourcing▸▸ Water stewardship▸▸ Waste management

62

NatureOur journey to becoming a climate positive business

Our journey to becominga climate positive business
The climate crisis highlights anurgent need to accelerate action.

–– Looking at how we formulate, how we continue to innovate andhow we continuously improve our ingredients portfolio with the
maximum respect for nature, for example with Naturality
Platform™ our platform for nature-conscious fragrance creation.

We are proud to be on the journey towards being climate positive
and to be working with our teams, customers, suppliers andpartners to help realise this bold ambition.

We will also be exploring ways to capture carbon through natural
climate solutions including reforestation, ecosystem restorationand through technology solutions such as industrial processes.
The first aim will always be to reduce our energy consumption
through constantly seeking to innovate around new production
infrastructure as well as through overcoming inefficiencies at plants.

Being climate positive means going beyond net-zero: removing
more greenhouse gases (GHG) from the atmosphere than we put
in. To achieve this, we need to tackle our GHG emissions
throughout our supply chain:–– The ones we own or under our control, known as scope 1
emissions, come mainly from our factory processes and officeuse and are all fuels that we use on our sites.
–– Indirect emissions fall under the category of scope 2 andcome from the generation of energy that we purchase forour operations.
–– Scope 3 emissions are all indirect emissions that occur in thevalue chain of the Company, in particular producing our raw
materials. After all, the real footprint of a product includes
every step in the supply chain that gets it to market. This is
why we are also collaborating with our suppliers to reduce
their own footprint, minimising the overall environmental
impact of each product. This has a direct, positive impact on
local producer communities and the supply of the naturalingredients we rely on.
As we move to becoming climate positive, we will accelerateaction given the urgency of tackling climate change. These include:

Below are our important milestones we need to reach to become
climate positive by 2050:
Our RE100 commitment of 100% renewable electricity ¹
AMBITION
BEFORE 2025%–– Rethinking how we move around, from the way we transportmaterials and goods to the way we travel ourselves.

81%

Our operations carbon emissions
AMBITIONSBEFORE 2030

ACHIEVEDIN 2020––%

BEFORE 2040

30%

Our operations will be climate positive.
Our supply chain carbon emissions
AMBITIONSBEFORE 2030

ACHIEVEDIN 2020

–

%

+

–

%

BEFORE 2040–– Moving from fossil fuels towards renewable sources such as
solar, wind, geothermal and biofuels.

ACHIEVEDIN 2020

11%

BEFORE 2050

Our supply chain will be climate positive.
1.	In 2020 we achieved 81% renewable electricity, of which 76% is inline
with the most recent RE100 criteria.

Givaudan – 2020 Integrated Annual ReportNature Our journey to becoming a climate positive business63

Greenhouse gas emissions
driving global warming

GIVAUDAN’SEMISSIONSFOOTPRINT

Scope 2
Indirect

Scope 1
DirectScope 3
Indirect

Scope 3
IndirectTransportationand distribution

Purchased
electricity /steam forown usePurchased goods and services /Capital goods / Fuel and energy
related activities / Transportationand distribution / Waste generated
in operations / Business travel /Employee commuting

Upstream activities

81%

Purchased goods
and services

Company
facilities /Company
vehiclesDownstream activities

4%

Capitalgoods

3%Fuel and energy
related activities

2%

Upstreamtransportationand distribution

1%

Waste generated
in operations

1< %BusinesstravelGREENHOUSE GASESSCOPE 3SCOPE 1 + 2

1< %Employeecommuting

2% 5%

Downstream transportationand distribution

Operations

2%

EnergysupplyGivaudan – 2020 Integrated Annual Report

64

Nature Our journey to becoming a climate positive business

Examplesof actions

Our achievements

Our ambitions

Scope 1 + 2

Renewable
electricity

30% 81%OUR ROADMAPTO BECOMING
CLIMATE POSITIVE

–

100%

Renewable
electricity

11%+

2,000,000

Scope 3

Formulation, innovation, supplierimprovements, ingredientportfolio, mobility solutions,packaging, transportation,
reducing air travel and air
travel emissions offsetting

70%
–20%
–

SCOPE 3

Scope 1 + 2

Scope 3200,000
Renewable electricity:
solar, wind, geothermic
Eliminate: coal, fuel, natural gas

SCOPE 2100,000
Renewable energy: Bio-Gas
certificates, convert boilers
to biomass, electrification
Eliminate: coal, fuel, natural gas

SCOPE 10

Carbon storage solutions:planting trees, carbon capture
in soils, ecosystem restoration-100,000

2009

2015
Baseline

2025

2030

CO₂ emissions(tonnes)

What are we doing already?
Renewable electricity
We have made good progress on our renewable electricity
commitments and are on track to meet our target of converting
our entire electricity supply to fully renewable sources by 2025
as part of our RE100 commitment. In 2020 we achieved 81%
renewable electricity. 28 of our production sites are now
powered 100% by electricity from renewable sources.
Our procurement team is also driving initiatives to help
implement the renewable electricity strategy and support thesourcing of alternative energy solutions. Guidelines enable ourpurchasing teams to buy smarter and greener energy, moving
away from electricity produced from traditional fossil fuels suchas coal and oil to natural gas and renewable energy sources.
Purchased electricity accounts for 35% of the total energy used
across Givaudan but equates to 24% of our total CO₂ emissions.

Givaudan – 2020 Integrated Annual Report

2020
TODAY

GHG emissions scope 1 and 2
We have already strengthened our targets and aim to reduce
absolute scope 1 and 2 GHG emissions by 70% between 2015 and2030, up from a previous target of a 30% reduction. In 2020 wewere well on our way to achieving our target with –30%.
We cannot achieve our ambitious GHG emission reduction
target without evolving our own technology, so we partnerwith experts from diverse fields to find new ways of improving
our environmental performance. We look in particular at theenergy intensive activities of our processes and seek
opportunities to use alternative technologies to achieve thesame performance and reduce our GHG emissions.
Solar heat, for example, offers an energy-efficient way to help
meet our cooling and refrigeration needs and in 2020 we set
out a new renewable electricity strategy that prioritises on-site
generation. At our flavours site at Pune in India, more than
2,000 solar panels have been installed on building rooftops andNature Our journey to becoming a climate positive business

100%
–50%

65

Our targets are aligned with the
Science Based Targets initiative andthe UN's Business Ambition for 1.5°C.

–

Scope 1 + 2

Baseline scope 3

Scope 3Joining others in calls for climate change action
We join other businesses in calling for climate change action aspart of our ambition to be climate positive before 2050 for all
three scopes, in line with our Company purpose.

Net GHG
emissions

For example, in 2019 we signed the pledge ‘Business Ambition
for 1.5°C’ proposed by the United Nations to aim for net-zerovalue chain emissions by 2050. It calls on companies to commit
to setting verifiable science-based targets at 1.5°C and achieve
net-zero emissions economy by 2050.

Baseline scope 1 + 2

Climatepositive(scope 1, 2 + 3)
before 2050

2040

2050

In 2020, we signed up to the CLG Europe CEO letter to the EU
on 2030 GHG emissions targets. The letter is designed as a clear
signal to policymakers and other businesses at a critical policy
moment that it is essential to ramp up climate ambition. We
have also signed the Business for Nature’s ‘Nature is everyone’s
business’ call to action. And our journey to become a B Corp
certified company will be the independently verified proof that
we are living our purpose every day, meeting the highest
standards of environmental and social sustainability.

Helping protect our precious environment
Carbon storage(Clean compensation & insetting)elsewhere. Inaugurated in 2020, the installation means a 20%
cut in the use of fossil fuels and a carbon footprint reduction of
806 tonnes in the site’s operations – the equivalent of planting
about 36,000 trees, supplying electricity to 735 houses per year,
and taking 1,900 cars off the road per year.

GHG emissions scope 3
To address scope 3 emissions, the CDP Supply Chain programme isone of the tools we have chosen to better understand the supply
chain and engage with our suppliers on climate action. The levelof engagement varies on the maturity of our suppliers and theirown climate actions. For suppliers leading the management ofclimate-related issues, we seek to create partnerships forcollaborative measures or programmes to reduce our common
emissions and cascade action further down the supply chain. For
suppliers starting their climate action journey, we work towards ashift in their behaviour and provide support and guidance for
improvements. This approach is aligned with – and contributes to– delivering on our science-based target for scope 3 emissions.

Showing our love for nature in everything we do also means
protecting our precious natural environment. Deforestation,
land use change and land degradation threaten the ecosystems
and biodiversity that underpin the sources of natural ingredientsthat we buy for our products. It is, therefore, important that wetake action to minimise deforestation and preserve biodiversity.
In 2020, we launched our updated palm position statement
where among other things we re-emphasise our commitment
to non-deforestation, including ‘No Deforestation, No Peat, No
Exploitation' (NDPE) principles. We are co-funding landscapeprojects that target sustainability issues at the beginning of ourpalm supply chains in Indonesia and Malaysia, in collaboration
with the Earthworm Foundation and other companies.
These efforts to protect forests operate alongside those topromote good agricultural practices and we have a number of
initiatives in place. Training in good agricultural practices is
included in our patchouli and turmeric sourcing activities, forexample, and the Givaudan Foundation is partnering with Des
Enjeux et des Hommes and one of our jasmine suppliers in a
project where close to 200 smallholder farmers were trained ingood agricultural practices, including safe plant protection
measures and compost management.

Givaudan – 2020 Integrated Annual Report

66

NatureOur journey to becoming a climate positive businessIn addition, our clove leaf oil projects aim at lowering the use of
firewood from natural forests for distillation. As part of a newpartnership with the German development agency GIZ(Deutsche Gesellschaft für Internationale Zusammenarbeit), we
will develop and promote improved distillation equipment withclove farmers. The joint project is aiming to reach 1,000 farmers
and their families and, in addition to providing technical support
on distillation, the clove leaf oil producers will benefit fromtraining in financial management and entrepreneurship.
We also continue to support reforestation efforts with a tree
planting programme in Madagascar through the Givaudan
Foundation, which by the end of 2020 had involved the plantingof more than 680,000 trees to limit the deforestation impactsof clove leaf oil production.

Driving change with ‘Naturals at Origin’
In fragrance creation, our ‘Naturals at Origin’ is a further step todrive changes in our industry towards a more sustainable futurein naturals and align our global commitments to our Company
purpose. This strategic approach aims at limiting impact on theenvironment and bringing progress locally. It also fosters
nature-conscious fragrance design and helps our customers tomeet the growing demand for sustainable products.

Acquisitions such as Centroflora, Naturex and Albert Vieillehave brought specialised expertise in natural ingredients,
including agronomy, and has given us further direct access tolocal production sites and fresh raw materials. This helps us
expand our expertise and innovate with naturals. About 100
new naturals have been entered into the perfumery paletteover the last three years, allowing our perfumers to create new
formulations for customers who are nature conscious.
Thanks to our presence in the field, in the country of origin, weare able to develop the most exquisite qualities of naturals toenhance our unique palette of ingredients and our exclusive
label Orpur® in a sustainable way. This close collaboration with
farmers and producers also enables us to improve supply chains
and reduce our environmental impact by innovating directly
on-site using fresh raw materials and introducing newtechniques in agronomy.
READ MORE
www.givaudan.com ▸ Fragrance & Beauty ▸ Ingredients ▸ Naturals ▸‘Naturals at Origin’ video
2020 GRI Sustainability Report ▸ page 43 ▸ GRI 302: Energy
2020 GRI Sustainability Report ▸ page 48 ▸ GRI 304: Biodiversity
2020 GRI Sustainability Report ▸ page 51 ▸ GRI 305: Emissions

Singapore chiller changes
bring multiple benefits
At many of our sites aroundthe world, employees areliving the Givaudan purposeby acting to reduce the impactof their site’s operations
on the environment. In
Singapore, a multi-function
project at our Woodlands site
has resulted in significant
improvements in energy
use and emissions as wellas cost savings during 2020.
Low efficiency, highenergy consumption

Givaudan – 2020 Integrated Annual Report

air-cooled chillers were
replaced with water-cooled
chillers for much improved
efficiency. Previously, theair-cooled chillers had
consumed 5,570 MWh/year –54% of the total energy used
for the plant and buildings;
the new water-cooled chillers
have reduced this energy
load to 1,884 MWh/year. It has
also brought a 66% energy
reduction in the site’schiller footprint, resulting in

1,725 T/year in carbon savings.
The site is on trackto achieve a total of
CHF 400,000 in savings
based on direct energy
reduction and from runningand maintenance costs; 15%of these savings is planned
for green energy conversions,
helping to meet theCompany’s RE100 and scope 2
emissions commitments.

Nature Responsibly managing waste and water 67

Responsibly managing
waste and waterShowing our love for nature in
everything we do is a commitment
to creating a positive impact on theenvironment. One way to do this is
improving the way we manage ourwaste and water.
We work hard to reduce the amount of waste we produce througha process based on the concepts of ‘reduce’, ‘reuse’, ‘recycle’ and‘recover’: we reduce the amount we create as a by-product of ourprocesses, we then reuse where possible and recycle in an effort tomove away from disposal in landfill or by incineration. Where
waste is incinerated, we recapture the energy.
Our target is to reduce incinerated and landfilled waste
production per tonne of product by an average of 4% year on year
against the 2015 baseline figure. During 2020, the amount ofwaste sent for incineration and landfill per tonne of productdecreased by 14% compared to the 2015 figure. In total, we
diverted from disposal 71% of all our waste in 2020. The absoluteamount of waste diverted from disposal has increased by 20%
since 2015.
The reduction of landfill is also a priority and 15 of our sites (36%)
are without landfill waste. We are encouraged by our progress insome areas but are aware that work is needed in others before
we can achieve our ambitious targets.
AMBITION
BEFORE 2030

We will replace single-use plastics with eco-friendly
alternatives across our sites and operations.

Rethinking plastics
Another important element of our approach is our commitment toreplace all single-use plastics across sites and operations with ecofriendly alternatives before 2030. This requires us to redesign andinnovate the plastics system – in our business models, ourmaterials, packaging design and reprocessing technologies. At theend of 2020, we completed a plastic circularity study at our Verniersite in Switzerland. We identified many improvement opportunities
and engaged with the World Business Council for Sustainable
Development (WBCSD) plastic and packaging project as co-leaderof one work-stream. To strategically position and embed plastic
circularity principles in our sustainability programmes we recruited
a global expert who will guide the organisation on this journey.
Alongside this work, we will continue encouraging our employees
to find initiatives in switching from plastic to more sustainable
alternatives. For example, at our Edison site in Cincinnati, Ohio,
USA, innovative and sustainable waste management processes arebeing implemented to gradually eliminate all food-related waste
sent to landfill. This is accomplished by composting coffee pods
(K-Cups) throughout the site and specific food waste streams in
the cafeteria and application labs.

Responsibly discharging waste water
We are also working to ensure that the wastewater from ouroperations is discharged responsibly, for example, we use on-site
biological treatment of wastewater and subsequent reuse at oursite in the Netherlands. We also monitor its quality especiallythrough Chemical Oxygen Demand (COD) analysis. The total
quantity of COD discharged was measured at 277 tonnes in 2020, a
57% decrease since last year.
Overall, we are working towards a continued reduction of water
use through projects including reduced water withdrawal andwater recycling and are investigating alternative sources such as
rainwater. At our Sant Celoni site in Spain, employees havedeveloped an innovative process to reduce the site’s wastewater, inturn helping to achieve our goals around water, waste and energy/
greenhouse gas emission reductions. By adapting the synthesis
process for a specific product, the project achieved – as well as
cutting water use and costs – a reduction of 4.8%/year in hazardous
waste to external treatment facilities, and a 7.8%/year decrease inenergy consumption.

Givaudan – 2020 Integrated Annual Report68 Nature Responsibly managing waste and water

Upcycling by-products or waste materials
And finally, seeking ways to upcycle by-products or wastematerials into new materials is an innovative solution to waste
management. Upcycling, or creative reuse, concentrates efforts
not on our operations but on the ingredients and solutions wecreate for our portfolio and creative palette. It guides us incontinuing to innovate and improve our ingredients portfolio to
reduce the impact of our products. For example, in 2020 welaunched a new sustainable beauty oil crafted from upcycled
Arabica coffee. Koffee’Up™ has been called the ‘new argan oil’ inthe beauty industry because of its natural, eco-conscious andeffective properties, bringing facial skin care benefits to
consumers such as hydration, protection and anti-ageing. The
product was developed in collaboration with Danish company
Kaffe Bueno, a biotech start-up at MassChallenge Switzerlandthat focuses on upcycling spent coffee grounds/waste into active
and functional ingredients for cosmetics to bring health and skinbenefits to consumers.

Protecting water, a precious resource
Water is essential to Givaudan’s business. We impact water by
withdrawing it to use in our operations, discharging it back into
the environment, and through water consumption by farmers togrow the majority of the raw materials we buy.
Responsibility for our impacts on water is taken by our leadership:
our Responsible Care® Management System (RCMS) is endorsedby our CEO and our Water Stewardship Programme guides our
growth strategy with water impacts in mind, sets Companywide targets and goals and allows us to mitigate water risks.

Givaudan’s water targets contributeto the United Nations Sustainable
Development Goals (SDGs), specifically
SDG 6 (Clean water and sanitation),and SDG 12 (Responsible consumption
and production 12.2 and 12.4).

Furthermore, in 2020, we endorsed the CEO Water Mandate, a
UN Global Compact initiative which brings together a criticalmass of business leaders to address global water challenges. The
endorsement of the mandate further reinforces our commitment
to water stewardship, which earned a CDP A grade in December
2020, for the second consecutive year.
In 2020, Givaudan decreased water intensity (municipal andground water / tonne of product) by 31% since the baseline year
2009. This corresponds to a 4% decrease in water intensity since2019. We continue to show good progress after reaching our2020 target for reducing global water consumption per tonne ofproduction by 15%, against a 2009 baseline, three years ahead ofschedule, and we are working to set new targets. Our targets
aim for a continued reduction in water use, including projects to
cut water withdrawal, water recycling, and investigating
alternative sources such as rainwater.
To mitigate water risks, we carry out periodic corporate risk
assessments of our operations and our supply chain. The
assessments take account of both water- and climate-relatedrisks, recognising the strong interconnectedness between them,and allow us to identify relevant exposures and undertake
analyses specifically related to the watershed-level context.

GIVAUDAN'S WATER FOOTPRINT
BASED ON 2018 CORPORATE WATER FOOTPRINT97%

RAW MATERIALS

Givaudan – 2020 Integrated Annual Report

2%

ONSITE DIRECT WATER
USE AND ENERGY

1%

LOGISTICS &PACKAGING

Nature Responsibly managing waste and water 69

Engagement with suppliers

Action to protect communities

Outside our own operations, our supply chain faces water risks.
We leverage our influence with business partners and suppliers
to promote water management practices in the entire value
chain. Using the CDP Supply Chain programme’s water security
questionnaire, we ask our key (or priority) suppliers for
information on risks and opportunities associated with water tofeed into the supply chain water risk assessment. Information
includes details of suppliers’ water accounting and water
management strategies such as targets and actions to reduce
impact. In 2020, 82% of our respondent suppliers reported active
targets and goals and 81% reported risk assessment procedures.

As part of our purpose to make a positive difference to thecommunities in which we operate, we strive to conserve waterand protect their right to water and sanitation.
In terms of water conservation, our production sites worldwide
use a variety of water-saving approaches. For example, to reduce
the amount of municipal water needed for cooling, we switchedprocesses from using municipal water to our existing cooling
tower loop. In another case, we installed automatic valves tomanage water needed for purging product dust from recirculatingscrubber water, allowing the unit to stop adding water when
product is not being dried. We have also introduced on-site
biological treatment of wastewater and subsequent reuse as wellas rainwater harvesting.

We encourage our strategic suppliers to move beyond reportingwater accounting information and into active management. We
measure the success of our engagement in actions undertaken
by suppliers, demonstrating improvement year on year – forinstance, whether they report a structured target or goal aswell as their CDP score.

We intend to be a role model inwater stewardship by working
to protect water-dependent
ecosystems and encouraging thesustainable use of water resources.
Willem Mutsaerts
Head of Global Procurement and Sustainability

Water efficiency ¹
in m³ tonnes of production
10.91

2009 ²

7.97

7.54

2019

2020 ³

1. Includes municipal and ground water.
2. Baseline.
3. New 12-month reporting period: Q4 2019 – Q3 2020.

Among our actions within communities are educational
campaigns, raising awareness about health risks related to water,
and focusing attention on WASH (Water, sanitation and hygiene)in our workplaces.
READ MORE
2020 GRI Sustainability Report ▸ page 44 ▸ GRI 303: Water and effluents
2020 GRI Sustainability Report ▸ page 56 ▸ GRI 306: Waste

Saving water

A water resource management project at
our East Hanover site in New Jersey, USA,achieved significant water savings througha tweak in the equipment cleaning andsanitisation process. The local Green Team
identified that the water flow rate washigher than necessary and could be
reduced while still ensuring process
quality, efficiency and food safety.
After pilots to optimise the processes,
the water flow rate was reduced, saving fivemillion gallons of water. The team was alsoable to optimise the soap cycle, reducing
soap dosing time by 70%, resulting in asavings of more than 300 work-hours per
year and 70% reduction in discharge to thechemical-to-wastewater treatment plant.
This method of saving water (and soap)
has the potential to be replicated acrossour sites where water flow rates have notyet been optimised.

Givaudan – 2020 Integrated Annual Report

70

NaturePutting our ingredients under the microscope as part of our climate action

Putting our ingredients
under the microscopeas part of ourclimateactionAchieving our ambitious climate target means
identifying where we can make the most significant
reductions in emissions. As our factories progressively
become net zero emitters, we need to put a strong
focus on scope 3 emissions in the value chainof our Company, including those generated by
the ingredients we use.

Givaudan – 2020 Integrated Annual ReportNature Putting our ingredients under the microscope as part of our climate actionIn our journey to become climate positive, we look at both how
to reduce emissions and increase carbon storage along our
supply chain. In our natural raw materials supply chain, one
important lever is the promotion of a more sustainable andefficient use of land, along with restoring ecosystems throughregenerative agriculture practices.

Understanding land use is key to climate action
Land use change and rapid intensification of agriculture havecontributed to desertification, degradation of soil anddeforestation, and ultimately helped to accelerate climatechange. Increasingly, climate scientists are focusing on healthy
land to combat climate change, as both fertile soil and natural
ecosystems have the ability to store carbon, reducing theamount of greenhouse gases in the atmosphere.
Around the world, there is a growing focus on using land
more wisely, balancing human needs and what nature cansustain, as well as on the interconnectedness of land andclimate change. Givaudan sees the increase in sustainable land
use as an indicator of our progress in reducing scope 3
emissions, which covers all indirect emissions that occur inthe value chain of our Company.

Using land more sustainably is one
way we develop a more sustainable
palette for our creations and isessential to responsible innovation.
Sandra, Global Head of Environmental Sustainability, explains:“Scope 3 accounts for more than 93% of our emissions, witharound 46% from the natural raw materials we use in ourcreations. This is why we are constantly putting our ingredients
under the microscope. Scope 3 emissions are a very complex
area, so we work with internal experts and external partners
to constantly refine our understanding of these emissions’sources and the best actions. We look at the full picture of ouringredients supply chain and identify optimal solutions androadmaps for responsible innovation, making the best use of
our learnings and discoveries.”

71

Understanding carbon is essential
Carbon atoms are the universal building blocks of life, and thevital role they play in our industry is at the centre of our
FiveCarbon Path™ and biotechnology processes. Givaudan
employs green chemistry methods for efficient carbon use,
meaning that all carbon atoms in the bio-based starting material
end up in the final product, resulting in zero carbon waste andthus limiting carbon emissions.
Ambrofix, a long-lasting, amber-scented molecule and one of
the most widely used biodegradable perfume ingredients, is an
example of our breakthrough technology to meet the demandsof our industry and consumers’ expectations. The new
biotechnology, starting by fermenting sustainably sourced sugar
cane, allows us to make one kilogram of product using 100 times
less land than the old method, which relied on an ingredientfrom the clary sage plant. Ambrofix is biodegradable and 100%
naturally derived while maintaining 100% renewable carbon.
Laurent, Global Environment Sustainability Manager, says:“We knew the fundamental benefits of this new biotech routeand that it would help ease pressure on land. Now we are also
gaining a good understanding of how important a part it canplay in cutting scope 3 emissions over the long term. Using
100 times less land is very significant for our climate positive
journey, and we are now working to quantify the reductionin emissions and more importantly understand how this caninspire other innovations.”

Challenges and opportunities ahead
Work is under way to build an inventory of all the key drivers of
our naturals value chain emissions, such as use of fossil fuelduring extraction processes, use of mineral fertilisers, and land
use change. Givaudan has also set up a dedicated working
group to explore the breadth and depth of the challenges andthe related opportunities and solutions in reducing theseelements of our scope 3. Laurent adds: “While we know thatthe task ahead is a challenging one, it will also bring very
diverse opportunities for Givaudan to leverage our innovation
capabilities and expertise to reduce scope 3 emissions. Our goal
is to innovate in ways that recognise land use as an opportunity
to create an extraordinary carbon sink, which will help combat
and mitigate climate change.”

United Nations Sustainable Development Goals (SDGs)
We put a strong focus on sustainable land use and sourcing of our
natural ingredients in order to become climate positive across ourvalue chain, so contributing significantly to SDGs 13 and 15.

Givaudan – 2020 Integrated Annual Report

72

Nature Environmental performance indicators

Environmental
performance indicators
Key performance indicators

2009(restatedin 2020)2015(restatedin 2020)2019 ¹(restatedin 2020)

2020 ²

EnergyEnergy (GJ)

Direct energy consumption primary sources ³

1,710,865

1,819,826

1,729,511

Indirect energy: purchased electricity & steam

957,103

1,042,227

1,038,479

Total energy
Energy efficiency(GJ/tonne of production)

2,667,968

2,862,053

2,767,990

Direct energy efficiency

4.44

3.80

3.58

Indirect energy efficiency

2.48

2.18

2.15

Total energy

6.93

5.98

5.73

100,023

103,140

98,180Emissions
GHG emissions (tonnes)
Scope 1

From direct energy sources ⁴
From biogenic sources

Scope 2

From indirect energy sources

89,787

Total scope 1 + 2 GHG emissions
Scope 322

51,42934,492

189,810

154,569

132,671

Purchased good and services–

1,443,720

1,535,966

1,622,390

Raw materials–

1,234,136

1,326,732

1,412,100

Other Indirect materials & services categories(excluding existing categories)–

146,856

135,249

132,686

Packaging–

62,72873,98577,604

Capital goods ⁵–51,722

107,548

72,797

Fuel and energy related activities–

79,38550,261

52,375

Upstream transportation and distribution–

23,51431,54637,784

Waste generated in operations–

15,443

16,882

19,510Business travel–

19,85723,437

10,915

Employee commuting–

15,417

14,92013,820Downstream transportation and distribution

43,27747,40747,750Outbound product to customers

31,30232,75732,133

Outbound intercompany deliveries–

Total scope 3 GHG emissions
Total GHG emissions
GHG emissions efficiency ⁶(tonnes of GHG/tonne ofproduction)

7

11,975

14,65015,617

1,692,335

1,827,968

1,877,341

1,882,145

1,982,537

2,010,013

Scope 1: from direct energy sources

–

0.26

0.22

0.20

Scope 2: from indirect energy sources

–

0.23

0.11

0.07

Total GHG emissions

–

0.49

0.32

0.27

15,152

19,23015,114

Total hazardous waste recovered

15,152

19,23020,869Incinerated ⁹

10,762

12,73912,276

Incinerated with energy recovery ¹⁰

6,337

7,227

6,704

318

130

167

Total hazardous waste disposed

11,08012,86912,443

Total hazardous waste

26,232

32,10033,312

Waste
Hazardous waste (tonnes)

Preparation for reuse ⁷
Recycling ⁸

1,079

Other recovery operations

Landfilled

Givaudan – 2020 Integrated Annual Report

4,677

Nature Environmental performance indicators

2009(restatedin 2020)2015(restatedin 2020)2019 ¹(restatedin 2020)

2020 ²

27,82630,71629,342

Total non-hazardous waste recovered

27,82630,71630,600Incinerated ⁹

2,230

2,467

2,295

Incinerated with energy recovery ¹⁰

1,076

1,442

1,457

Landfilled

6,412

7,163

6,586

Key performance indicators

Non-hazardous waste(tonnes)73

Preparation for reuse ⁷

174

Recycling ⁸
Other recovery operations ¹¹

1,085

Other disposal operations ¹¹
Total non-hazardous waste disposed

8,642

9,629

8,881

Total non-hazardous waste

36,46840,34539,481

19,722

22,49821,323

Total incinerated andlandfilled waste(HZ and NHZ, tonnes)
Waste efficiency ¹²(kg/tonne of production)

51.2

47.0

44.1

One-off waste (tonnes) ¹³

2,219

3,631

1,599

Total waste (tonnes)

64,92076,07574,391

Water
Water intake (m³)

Surface water

7,432,649

5,006,361

5,261,101

4,504,312

Groundwater

1,074,035

1,390,267

1,329,357

1,252,495

Seawater ¹⁴
Third-party water
Total water ¹⁵Water effciency ¹⁶(m3/tonne of production)
Water discharge (m³)

2,604,860

2,619,545

2,674,657

2,665,631

11,111,544

9,016,173

9,265,114

8,422,438

10.91

9.74

7.82

7.54

To the environment w/o biological treatment

4,640,582

3,430,989

To the environment after biological treatment

2,003,464

2,032,189

To external treatment facility w/o pre-treatment

523,398

479,526

To external treatment facility with pre-treatment

1,550,891

1,545,871

Total discharged water

8,718,334

7,488,576

546,780

933,861

Water consumption (m³)

Water consumption

COD (tonnes)

COD load of water discharged to the environment

–  

–

648

277

Other data

Nitrogen oxides – NOₓ (tonnes) ¹⁷

–

–

69.92

67.25

Sulphur dioxide – SO₂ (tonnes) ¹⁷

–

–

0.09

0.07

Volatile organic compounds (tonnes)

–

–

1,238

1,018

CFC inventory (kg)

–

–

9,314

6,785

CFC ¹¹ equivalent inventory (kg)

–

–

743

378

CFC loss-replacement (kg)

–

–

298

676

CFC ¹¹ equivalent loss/replacement (kg)

–

–

37.24

37.18

308,060

385,189

478,707

483,094

Production

Production quantities (tonnes)

1.	Assured 2019 full year figures.
2.	New 12–month reporting period: Q4 2019 – Q3 2020.
3.	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 (0.0186 GJ/m³), waste used as energy
source (22.5 GJ/m³), geothermal energy (0.0036 GJ/kWh), deducting steam sold
(2.9 GJ/Tonnes).
4.	Excluding emissions from CH4 and N2O from usage of biofuel in one production site.
5.	Doesn't include Induchem data.
6.	Includes only scope 1 and scope 2.
7.	This data was not collected in 2015 and 2019. We started to include this category in ourreporting in 2020. In the past this treatement was included in the recycling processes.
8.	Including the split into 3 categories (recycling + composting and biogas production
which are 2 particular types of recycling according to GRI).
9.	Among the quantity of HW and non-HW incinerated, this is the quantity incinerated
with and without energy recovery (in tonnes).

10.	Among the quantity of HW and non-HW incinerated, this is the quantity
incinerated with energy recovery (in tonnes).
11.	This data was not collected in 2015 and 2019. We started to include thiscategory in our reporting in 2020. In the past this treatement was includedin the recycling processes.
12.	Includes incinerated and landfilled waste (HZ and NHZ).
13.	This indicator measures the total quantity of waste which is not directly related
to the daily operations, but is categorized as one-off waste. Examples of waste
in this category are waste materials coming from demolition or remediation activities
or waste or raw materials following an unusual incident, for instance a fire.
14.	We do not withdrawal seawater.
15.	Includes sanitary, cooling and process water.
16.	Includes municipal and groundwater.
17.	Quantity is calculated by multiplying the annual fuel consumption
by the corresponding emission factor for fuel type.

Givaudan – 2020 Integrated Annual ReportPeopleLet’s imagine together
that Givaudan is aplace where we all love
to be and grow.

Material topics covered▸▸ Diversity and inclusion▸▸ Employee health, safety and wellbeing▸▸ Human rights▸▸ Talent management▸▸ Women’s empowerment

76

PeoplePeople for a better and more sustainable future

People for a better andmore sustainable future
We are best equipped to achieve
our business goals through asense of unity and a workplace
where all our employees love to
be and grow.

in our Discover programme (11 of these participated in a virtual
pilot when COVID-19 hit) and 345 in our Begin, Grow and Evolve
programmes – all done virtually. We launched a new learning
programme during the year for managers, with 379 participants.
This is a learning resource to help managers obtain information
and build skills required to become an effective line manager. An
easily accessible, online tool that can be managed at the learner’s
own pace, it is aimed at new or newly promoted managers andthose from companies acquired in the past 12–36 months.

We want our Company to be a place with purpose and we aim
to do well and to do good. This means that a better and moresustainable future must incorporate decent work and economic
growth, gender equality and good health and wellbeing for all.
To reach these goals we have the ambition of making Givaudan:–– a place where we love to be and grow,–– an even more balanced and inclusive company, and–– a company that continues to improve how we care forour people.

Despite the COVID-19 restrictions, we continued to recruit asignificant number of new employees; the number ofapplications remained stable. Our digital channels allowed us totransition smoothly from on-site to video interviews, of which
there was a total of 3,242 by the end of the year. In addition,with student career fairs being cancelled during 2020, we
hosted a digital event with 90 students through a live-stream.

To help us ensure that Givaudan is a place we all love to be andwhere our employees grow, we have a wide range of global andlocal programmes in place. Despite restrictions because of
COVID-19 we were able to successfully continue to developthese programmes through virtual channels during the year.
Our global learning courses which have been successfully
running for the past six years were made available virtually.
These courses were designed to simulate a similar style as if it
was in a classroom setting. This year we have delivered
122 courses globally.
There were a large number of new employees from acquiredcompanies, totalling about 900, whose onboarding to Givaudan
had begun remotely. This approach presented challenges, but
we have a dedicated workstream driving the integration ofpeople processes, ensuring that colleagues joining throughacquisitions fully understand and embrace our global processes,
ways of working and culture at large.
Since the launch of our leadership programmes in 2015, a total of
1,837 of 2,300 targeted managers have been trained – of which
50% are in our leadership pool. In 2020, there were 85 participants

Givaudan – 2020 Integrated Annual Report

Embracing diversity in all its forms
As a company with operations across the globe and a creative,
professional pool of diverse cultures and nationalities, we need toensure Givaudan reflects the diverse communities in which we
operate. We have set ambitious objectives so we can accelerate
our journey of being more balanced and inclusive, and progress inthese objectives will be measured against the baseline of 2018.
AMBITION
BEFORE 2025

We will be rated among the leading
employers for inclusion globally.

Senior leaders to be women
AMBITION
BEFORE 2030

ACHIEVEDIN 2020%

25%

AMBITION
BEFORE 2030

ACHIEVEDIN 2020

Senior leaders from high growth markets%

25%

PeopleGivaudan employees

People for a better and more sustainable future

77

Board
members: 9

2020

2019

Total number of full-time employees ¹

15,852

14,969Total head count ²

12,807

12,218

Total number of employees(head count)

12,807

12,218

Women

5,026

4,704

Men

7,781

7,514

New employee hires

1,632

1,827

Women

684

735

Men

948

1,092

Turnover rate

9%

10%

Women

8%

10%

Men

9%

10%

33%

67%

men

women

Executive Committee
members: 7

86%

14%

men

women

1.	This is defined as the equivalent full-time regular employees and includes acquisitions(Activ International, Vika B.V., Centroflora Nutra, Expressions Parfumées, Naturex,
Albert Vieille, drom, Fragrance Oils, Golden Frog, Ungerer and Alderys).
2. 	This is defined as the number of physical people and includes internal temporary &regular employees including Activ International. All other acquisitions excluded.


We have a lighthouse for inclusion and have started on ourjourney that will ensure we will be a more balanced andinclusive company and reach our targets. Our diversity andinclusion approach, Better Balance, is about how we will evolve
our leadership mix to better reflect consumer and market
demographics, while embracing diversity in all its forms. The
specific sessions, called Better Balance dialogue, consist of two

discussions, each two hours in length, which provide an
opportunity for senior leaders to connect with colleagues andenhance their understanding of our Better Balance approach.
Unlike many of our programmes, the Better Balance dialogues
are not meant to be ‘skills’ training; the aim is rather to create aforum for participants to express and share perspectives. In
2020, 255 people took part in these sessions.

Employees ¹ categories and composition of governance bodies
Women

Men

Asia Pacific

Europe, Asia &Middle East

Latin America

North America

45

134

21

108

18

32

179

-in %

25%

75%

12%

60%

10%

18%

100%

Middle managers

1,788

1,884

1,036

1,595

422

619

3,672

-in %

49%

51%

28%

43%

11%

17%

100%

Associates

3,193

5,763

2,190

3,803

1,328

1,635

8,956

-in %

36%

64%

24%

42%

15%

18%

100%

5,026

7,781

3,247

5,506

1,768

2,286

12,807

Senior leaders ²

Total 2020

Total

1. This is defined as the number of physical people and includes internal temporary & regular employees including Activ International. All other acquisitions excluded.
2. Including the Executive Committee.

Givaudan – 2020 Integrated Annual Report

78

PeoplePeople for a better and more sustainable future

Better Balance also means creating a mindset in the Givaudan
workplace and in our recruitment tools. During the year we
worked on a programme to reduce implicit bias that might exist
in people’s behaviour in the workplace. In the third quarter of
2020, we began introducing an unconscious bias training tool toa pilot group. The tool covers the fundamentals of unconscious
bias and how it affects us at our work. We plan to implement a
full roll-out in 2021. And as part of our recruitment efforts wehave been working more with a talent acquisition innovation
tool to make our job ads more inclusive and access a wider poolof talented people.
It is also important to look at remuneration. Decent work andgender equality will be positively impacted by ensuring equalpay for equal work and also remuneration for work done. Since
the beginning of the COVID-19 crisis, our people have shown
great resilience and commitment to ensure we continue toprovide essential products to sustain the global supply chain infood and beverage as well as in household, health and personalcare. In recognition of this, a gross bonus amount was granted
to our employees and temporary staff who were required towork regularly on-site to ensure delivery to our customers.
We monitor gender pay equity to identify any outstanding pay
gaps and ensure they are promptly addressed. These annual
global studies are conducted in our key markets and according
to the methodology of the Swiss Federal Office for Gender
Equality. Results for the Company show the average base salarydifference between men and women is 1.5% for equivalent roles
and skill sets. For the Givaudan Group globally, our results showthat the average base salary difference between men andwomen is 1.5% for equivalent roles and skills sets. For total cash
compensation (fixed and variable pay) the difference is 1.5%. The
results for our headquarters in Switzerland are similar, showing
differences of 1.3% for base salary and total cash compensation.
One of the ways we can measure our progress in becoming aneven more balanced and inclusive company is through our
Employee Engagement Surveys, which we conduct every three
years. The surveys allow all employees to give their views,
anonymously, on what the Company does well and what can be
improved, and we develop and implement initiatives as a resultof the findings.

Givaudan – 2020 Integrated Annual Report

Caring for our employees
If someone feels great and has the support they need, they are
better able to engage, be productive and succeed, on and off
the job. By taking care of our people through all aspects of theirlives, we are helping them to have the physical energy, mental
focus and emotional drive necessary to power our business aswell as to take the same energy to their activities outside ofwork. That is why, before 2025, we will improve how we care forall of our people by offering everyone on our sites access tomental and physical health initiatives, tools and training, and by
reducing our total recordable injury cases by 50%. This ambitionis part of our 2025 strategy and we will begin tracking ourachievement in 2021.
Enormous efforts were made during the year to protect andmaintain our business in unfamiliar and difficult times due tothe COVID-19 pandemic. Our first priority was to ensure thesafety of those who needed to work at our production sites andlabs, where we supplied not only face masks, gloves and handsanitisers but also guidance. We made sure as many people aspossible worked from home, and here our priority was to give
guidance on how to stay physically and mentally healthy whileworking remotely. In addition, our IT teams worked quickly andefficiently to ensure that from one day to the next such a large
number of people had the correct digital tools in place to workfrom home and that teamwork and collaboration could
continue seamlessly.
COVID-19 protection measures inevitably took priority overother occupational safety and health programmes and we
re-prioritised some of our safety improvement projects due tothe high number of employees working from home. We did
continue our focus on safety awareness programmes at newly
acquired businesses and good progress was made here.

AMBITION
BEFORE 2025

We will reduce our total recordable injuries cases by 50%.
AMBITION
BEFORE 2025

We will improve how we care for all of our people by offering
everyone on our sites access to mental and physical healthinitiatives, tools and training.

PeopleOur flagship EHS Facilitator programme was maintained, withfacilitators continuing to support production sites and often
acting as champions for COVID-19 protection. We started two
new train-the-trainer programmes online, increasing thegeographical scope to India and China as well as improving
coverage in Europe, Africa and the Middle East, North America
and Latin America.
Safety leadership training was also moved on-line with asuccessful pilot of the IOSH ‘Managing Safely’ course and aseries of three Human and Organization Performance (HOP)
sessions for Operations and Environment Health and Safety
leaders in Europe, Africa and the Middle East.
We launched our global Employee Assistance Programme (EAP)
during the year to support employees with personal problems
that might adversely impact their work performance, healthand wellbeing. Employees and family members, including thosein newly integrated companies, can access EAP for support inareas such as personal wellbeing, mental health, relationships,
and family and workplace challenges. EAP is offered inpartnership with a global provider and is available through an
online tool with additional services such as personal consulting
available via phone and video.
We supported World Mental Health Day in October with a
Happier, Healthier Habits campaign that included a 21-day
challenge to support employees in making a focus on their mental
health a fixture in their lives. With the help of external experts andinternal leaders as well as campaign managers, the campaign
aimed to inspire people to pay attention to their mental wellbeing
and create engagement with the EAP. There was an added benefitof helping create a close-knit feeling of ‘unity in adversity’ – afeeling of being part of a real global community.

People for a better and more sustainable future

79

Caring for our people also includes our ambition to ensure eachand every employee returns home safe every day, and we have anumber of programmes already in place that are aimed at
improving the long-term health of our people. In 2020 the focus
shifted to how to protect our employees in their home. With somany employees working from home because of COVID-19, we
introduced a global Healthy Home Working initiative. These
one-hour webinars trained our people in how to reduce themental and physical risks associated with the home office,offering advice on topics such as sitting posture, positioning acomputer, time keeping and the need for breaks from thescreen. We were able to provide these sessions in 8 languages,
and we deployed 18 trainers and 7 in stand-by to host moresessions per request. As planned, the Healthy Home Working
initiative ended in July, by which time more than 1,700 employees
in 23 countries had undertaken the training.
We continue promoting ergonomic programmes to manage
physical health risks. Through the use of the Humantech
Industrial Ergonomics Software, sites can focus on assessing
activities and identifying ergonomic risks with the aim of
improving performance and reducing risk in the different
workplaces. A total of 184 ergonomic assessments werecompleted at 32 production sites by the end of 2020. Examples ofimprovement implementation can be found at Makó in Hungary
with the installation of pneumatic lifting equipment, at Dortmund
in Germany where vacuum lifts have been installed for handlingcans or cardboard boxes, and at Ashford in the UK where a lift
device was installed to position drums on a pallet.
The implementation of the Humantech Office Ergonomics
Software (formerly Ergopoint) provides all Givaudan employeeswith a training module and a platform to perform self-assessments
of individual computer workstations, resulting in recommendations
for correct workplace set-ups and office habits that help in theprevention of musculoskeletal disorders. About 1,846 employees
have completed the e-learning course and more than 2,186 selfassessments were entered throughout 2020. The roll-out of the
Office Ergonomics Software was affected by the COVID-19
pandemic, however it is planned to continue in 2021 and include
Naturex and other acquisitions, as well as remaining Givaudan
legacy sites. The roll-out is expected to be completed by
December 2021.

Givaudan – 2020 Integrated Annual Report

80

PeoplePeople for a better and more sustainable future

Reaching new heights:
LTI-free sites set the pace

Our sites have come a long way from 1.03 LTIR in 2009 to 0.25
in 2020, and our achievements across our sites around theworld reflect our success in having good behavioural safety.

There are many examples of achievements in this area in
Givaudan, but here is a small selection of success stories fromdifferent regions of the world.

LAKELAND, FLORIDA, USA

NANTONG, CHINA

A behaviour-based safety programme has been central
to lowering health and safety risks on site and achieving
eight years without an LTI.

A positive safety culture has been promoted since
production started in 2015, with over 1.2 million hours
of work without an LTI.

PEDRO ESCOBEDO, MEXICOPOMACLE, FRANCE

Consistent engagement by the leadership team has
accelerated a good health and safety culture.
This, together with empowering employees to act,
has resulted in five years of work without an LTI.

A real turnaround has been achieved through focused
efforts to improve safety behaviour at the site.
From eight LTIs in 2015 to four in 2016, three in 2018
and 0 in 2019 and 2020 – a success story indeed.

Givaudan – 2020 Integrated Annual ReportPeople2020 Safety performance – ‘Everyone Home Safe everyday’

People for a better and more sustainable future

81

Health and safety indicators

1.2

2020

2009

2019

1.0

Fatalities

0

0

0

0.8

Number of LTIs

79

26

32

0.6

LTI rate

1.03

0.22

0.25

0.4

Lost day rate ¹

N/A

7.62

7.65

0.2

Number of Restricted Work
Cases (RWC)

28

38

46

Number of Medical
Treatment Cases (MTC)

28

32

37

0.0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
LTI Rate

LTI Target

Number of Total Recordable
Cases (TRC) ²

135

96

115

Total Recordable Case Rate

1.76

0.81

0.88

N/A

909

998

As a purpose-led company, we will be focusing on our safety
culture and behaviour and looking more broadly to those cases
when medical treatment is needed in recording injuries. This is
why we are committed, as mentioned above, to reducing our
total recordable injury rate by 50% before 2025, which should
also result in a reduction in the number of lost time injuries.
With a Lost Time Injury Rate (LTIR) of 0.25 in 2020, we regretthat we did not achieve our ambitious LTIR target of under 0.1
before 2021. This target was challenging and should be seen in
the context of the significant progress we have made over the
past ten years. For example, in 2009 when the target was set
our LTIR was 1.03, and the Total Recordable Case Rate has been
reduced from 1.76 in 2009 to 0.88 in 2020. LTI-free sites haveincreased from 47% in 2009 to 84% in 2020. We will work hard
to extend our safety culture to employees joining us with newly
acquired businesses and include these in our focus on reducing
total recordable injuries.

Number of lost days ³

Ways of working: looking to the future
Our Company rapidly adapted to new and different ways of working
during the year, and we now have a unique opportunity to takethe time and learn from the experience. We are re-examiningsome fundamental ideas about our ways of working – startingwith the introduction of Flexible Work Arrangements Frameworkacross the Company. Our aim is to develop an agile programme
which will be led and implemented locally.
READ MORE

Number of hours worked ⁴

15,341,093 23,846,803 26,094,174

Absenteeism ⁵

N/A

2.9%

2.9%

1.	Number of lost work days resulting from work-related accidents per
200,000 working hours. Calculation based on scheduled work days lost fromthe day after the accident.
2.	TRC is according to the official OSHA definition.
3.	2019 includes 208 days carried over from previous year. 2020 includes 73 days
carried over from previous year.
4.	9,2% of these represent external contractors for whom the Company is liaible.
5.	Compared to the number of normal available working days, includes correction
for employees working on a part-time basis.

Total recordable cases by region and gender
RegionWomen

Men

Asia Pacific314Europe, Africa & Middle East

3

48

Latin America

04North America

538

Total 2020

11

104

Total 20191284

LTI rate, lost day rate, absenteeism – by region
RegionLTI rate

Lost day rate

Absenteeism

Asia Pacific

0.15

2.38

1.68%

Europe, Africa & Middle East

0.38

10.34

3.91%

Latin America

0.00

0.00

2.22%

North America

0.27

15.23

2.90%

2020 GRI Sustainability Report ▸ page 70 ▸ GRI 401: Employment
2020 GRI Sustainability Report ▸ page 73 ▸ GRI 403: Occupational healthand safety2020 GRI Sustainability Report ▸ page 79 ▸ GRI 404: Training and education
2020 GRI Sustainability Report ▸ page 80 ▸ GRI 405: Diversity andequal opportunity
2020 GRI Sustainability Report ▸ page 81 ▸ GRI 406: Non-discrimination

REDUCTION OF LOST TIME
INJURIES SINCE 2009 ¹

76%

1. The reduction in lost time injuries is based on the Lost Time Incident Rate (LTIR).

Givaudan – 2020 Integrated Annual Report

82

People Caring for our people during the crisis

Givaudan – 2020 Integrated Annual ReportPeopleCaring for our people during the crisis

83

Caring forour people
during the crisis

Caring for employees is a key pillar of our
purpose. When the COVID pandemic hit
in early 2020, this took on a new urgency,
and we are committed to continuing to
put our people first.

One fundamental part of our purpose is improving how wecare for our people. From the beginning of the COVID-19
pandemic in China, we focused on making sure our people were
safe and had the necessary guidance to help them adapt. As it
spread, we set up a dedicated crisis team to care for people
working in different situations.
A first priority was ensuring safety for those whose criticalroles meant they needed to be on-site at our production sites
and labs. Production employees not only fulfil our vital role in
the food chain, they also produce ingredients for pandemiccritical hygiene products. Hygiene at sites was increased, andGivaudan – 2020 Integrated Annual Report

84

PeopleCaring for our people during the crisis

ways of working were changed to do everything we could toprevent coronavirus transmission, such as splitting employees
into smaller teams and minimising interaction throughmanaging the flow of people. We also enabled as many people
as possible to work from home and gave guidance on how tostay physically and mentally healthy while working remotely.
Business travel was halted, and meetings with external
partners were severely limited.
In April, we deepened our activities to help employees deal withthe enormous stress, anxiety and uncertainty of the pandemic.
Two corporate initiatives, Happier Healthier You and Happier,Healthier Habits, provided advice on all aspects of employees’
wellbeing and fostered virtual connections between colleagues.
Local campaigns sprung up across the world. Employees in the
Netherlands were invited to join an outdoor walking challenge
for charity in virtual teams, aiming for 10,000 steps a day. Barbra,
Quality Lab Team Lead, appreciated connecting with others:“I enjoyed being part of a team with colleagues who I didn’tknow or had never spoken to,” she says.

The session really impressed me –I had never thought that 'happiness'
could start with a small change.
Angela, Quality Control Manager

In China, the local team ran workshops to help employees
develop a growth mindset, which brought both personal andbusiness benefits. Seeing challenges in a different light was one
helpful outcome. As Angela, Quality Control Manager, describes
it: “I was able to see how to change the way I felt about ‘failure’
and reframe it as a way of learning and growing. The session
really impressed me – I had never thought that ‘happiness’ could
start with a small change.”
A virtual yoga programme for employees and families at oursites in India recognised that relatives’ wellbeing is equallyimportant in helping employees keep positive and achieve better
work-life balance. And virtual salsa dance classes were organised
for those working in the application and creations labs in Punto
Planco to create a good mood as people were anxious about
returning to work after the pandemic hit Mexico City.
Many other employees became involved in the Company-wide
conversation about health and wellbeing after senior leaders
shared their own experiences. It was a reminder of our collective
responsibilities and to make personal commitments to reach out
to those who are struggling.

Givaudan – 2020 Integrated Annual Report

TOP A 'Happier, Healthier Habits' webinar with Mark Josephfrom Mindful Revolution.
BELOW Yoga for physical and mental wellbeing.

More than 1,700 employees from 23 countries also joined
Healthy Home Working, a webinar available in different
languages. As John, Head of our Environment, Health and Safety
Field Organisation, says: “Increasing the number of people
working remotely has been the way to protect all of us, and soit’s essential employees have a safe and comfortable home officeand learn how to stay connected with colleagues. The HealthyHome Working training has been incredibly valuable andsuccessful in helping us all adjust.”
Throughout 2020, we continued running regular surveys tolisten to our employees, enabling us to find ways to provide
more support. With this sudden shift to remote work, stressfrom COVID-19 and extended isolation, it was critical to ask
and understand people’s needs. People were encouraged toPeopleCaring for our people during the crisis

85

LEFT 'Happier, Healthier You' video series – in conversation
with Simon Halle-Smith, Head of Global Human Resources and
EHS, Anne Tayac, Head of Givaudan Business Solutions andLouie D'Amico, President of Taste & Wellbeing.

From a business perspective, this reduced stress and otherillnesses, helping people stay more productive and take lesstime away from work.
Throughout 2020, our IT organisation made enormous efforts
to support home working and to keep our entire businessconnected. They ensured that teams had the proper digital
tools to stay in touch, fostering teamwork and enabling
managers to easily reach out to team members and create asense of unity and motivation.

take part in many types of virtual learning and development,with online courses on a wide range of business and personal
development topics, including how to motivate teams andcultivate inclusion remotely.
In October, we launched a global Employee Assistance
Programme (EAP) to help employees get support confidentiallywith any problem that might affect their health, wellbeing andwork. An online help point, in over 200 languages, was opened
24/7, along with telephone advice from local consultants.

Simon Halle-Smith, Head of Global HR, reflects: “When welaunched our purpose in 2019, our goal was to nurture a place
where we all love to be and grow. This unifying ambition in ayear of unprecedented challenges drove us to care for ourpeople in many different ways and our positive experiences will
give us confidence as we face new uncertainties together in
2021 and beyond.”
United Nations Sustainable Development Goals (SDGs)
A top priority in our COVID-19 response has been protecting our
employees, ensuring a safe working environment and promoting healthand wellbeing, contributing specifically to SDGs 3 and 8.

Innovation and technology help protect us all
The crisis has boosted our innovation,
helping us to change ways of working,protect and care for our people, andimprove our business. One good example
was the installation of new equipment at
our Changzhou site in China, our largest
capital expenditure project of 2020.
Previously, European expert technicians
would have travelled to carry out thecomplex work. During the pandemic, ourteams faced the challenge of carrying it out

remotely – something we had never done.
Our engineering Centre of Expertise
identified e-glasses as a technology
solution. Worn by employees on site, thee-glasses fed back images to the experts
who were able to guide the installationfrom afar. We’re now looking at how we canharness the benefits of this technology
more widely to work remotely, keep our
people safe, improve ways of working andreduce environmental impact.

Givaudan – 2020 Integrated Annual ReportCommunities

Let’s imagine together
that all communities
benefit by working
with Givaudan.

Material topics covered▸▸ Human rights▸▸ Local community development▸▸ Product environmental and social impact▸▸ Responsible sourcing▸▸ Traceability

88 Communities

Maximising value with our suppliers

Maximising value
with our suppliers
As a global business, we seek todevelop and maintain a strong
network of suppliers to respond toincreased consumer demand formore sustainable, healthier anddifferentiated products.
We want to source materials in ways that preserve theenvironment and stimulate the development and wellbeing ofcommunities from where we source. We are also improving theways that we assess, select and partner with our suppliers sothey employ the right environmental and social practices.
Understanding the supply chain and tracing the raw materials
we use allows us to assure customers about the provenance ofraw materials and their production. It also shows that we
adhere to responsible supply chain practices. Mapping our
supply chains helps us to understand how they are organised
and to collect data on the number of intermediary suppliers
involved, their role, importance and geographical location.
We can leverage technology to enable source-to-consumer
traceability of raw materials and track the impact on biodiversity,
our carbon footprint and water use. To help in this we are using our

Our I-Source application: leveraging
technology for improved traceability.

I-Source application for some of our raw materials. In 2020, we took
a further step in traceability with an update of this app that offers
an in-depth insight into our local producers in even the most remoterural areas of the world and into our collection networks for iconic
raw materials. Through a detailed digital map which uses GPS data,
we can see the exact locations from where we are sourcing as wellas the journey of our products through our supply chain. This means
we can follow materials all the way from the individual farm to thewarehouse. The mobile version of the I-Source app, which can beused on any web browser in any country, enables our teams toliterally walk through and map individual farms and sites on theirdevices to build a comprehensive picture of our supply chain, helping
efficiency and allowing us to inform our customers more fully about
where specific ingredients come from and how they are produced.

Doing business with suppliers in a responsible way
Since 2008, Givaudan has been an active member of Sedex, aglobal platform enabling companies to manage their performancearound labour rights, health and safety, the environment andbusiness ethics. We continue to work with our main direct
suppliers of raw materials for their sites to be audited according
to Sedex Member Ethical Trade Audit (SMETA), and in 2020 a
total of 334 key raw material suppliers were registered with
Sedex; these suppliers represented more than 59% of our spend.
We also worked to ensure that audited suppliers closed all open
non-conformities; at the end of 2020, our supplier compliance
rate was 85%.
Givaudan depends on natural resources and the people who
produce them, and we seek to expand relevant initiatives toreduce our environmental and social impact. Working with our
suppliers to help them meet our sourcing standards also helps us
mitigate the risks inherent in our complex supply chains. Our

PROCUREMENT SPEND
CHF
billionCHF
billion

1﹒4
2﹒2

in indirect materials& services
in raw materials

Givaudan – 2020 Integrated Annual Report

TOTAL
CHF
billion

3.6

NUMBER OF DIFFERENTRAW MATERIALS SOURCED
FROM > 100 COUNTRIES

11﹐491

Communities

Working with our suppliers to help
them meet our sourcing standards
also helps us mitigate the risks
inherent in our complex supply chains.
sourcing promotes stability for producers and the local
environment, and our initiatives bring new value to those involvedin the sourcing of natural raw materials.
Our programmes are based on ensuring we source responsibly,
secure the long-term supply of natural ingredients, and initiate
projects to ensure we bring benefits to the communities where
we source:–– For Givaudan, to source responsibly means working with our
suppliers to ensure they are aware of our expectations andthat they are able to demonstrate adherence and complianceto our Responsible Sourcing Policy. Where deemed necessary
this involves auditing suppliers and assessing their supply
chains to work on driving compliance and continuous
improvements against international norms in health andsafety, social, environmental and business integrity practices.
By the end of 2020 we had mapped 50 raw material
categories and were sourcing 33 raw material categories aspart of our responsible sourcing program.
–– We focus on helping to organise direct collection networks andpartnerships with farmers, distillers and producer groups. It
secures the long-term and balanced supply of natural ingredientsfrom fragile ecosystems while boosting the local economy

Maximising value with our suppliers

89

through knowledge transfer and more stable incomes. Our
initiatives involve the direct sourcing of raw materials by working
with local smallholder farmers, intermediate suppliers andpartners to secure the long-term supply of these ingredients. The
initiatives strengthen the fabric of the local economy bycontributing to more stable incomes for thousands of farmers.
–– Social and environmental projects help build more secure futures
for the communities where we source and their environments.
AMBITION
BY 2030

We will source all materials and services in a way that
protects people and the environment.
After several acquisitions in 2019–2020, we have been reviewing
individual responsible sourcing programmes and are working on acommon approach that will fit all. We have also been working inrecent years to develop better awareness among our suppliers of
the importance of increased traceability and good social andenvironmental practices. We have come to realise that the scopeof 90% volume responsibly sourced was neither relevant nor agood measure of our progress to source responsibly. In 2020, we
reviewed our evolving business and implemented a major project
designed to strengthen our responsible sourcing programme toensure it is able to cover the right materials and supply chains, at
the right depth, with the right levels of traceability and compliance.
This updated programme will be launched in 2021.
READ MORE
2020 GRI Sustainability Report ▸ page 36 ▸ GRI 204: Procurement practices
2020 GRI Sustainability Report ▸ page 59 ▸ GRI 308: Supplier environmental
assessment
2020 GRI Sustainability Report ▸ page 87 ▸ GRI 414: Supplier social assessment

TOTAL NUMBER OFSIGNIFICANT SUPPLIERSIDENTIFIEDKEY RAW MATERIAL
SUPPLIERS REGISTEREDWITH SEDEXTOTAL PERCENTAGE
OF SUPPLIERS ASSESSEDTO DATESUPPLIERCOMPLIANCE
RATE

400

334

82%

85%
Givaudan – 2020 Integrated Annual Report90

Communities

Communities where we source and operate

Communities where
we source and operate
It is important that we havea positive impact on thecommunities from where wesource our raw materials aswell as on those around ourfactories and sites.
Our business affects surrounding communities andneighbourhoods and we take measures to operate safely andsustainably with these communities while also ensuring we
generate economic, social and environmental opportunities fortruly mutually beneficial relationships. We can do this throughlocal community initiatives, by using the latest technologies tomanage our environmental impact on communities’ air, water,and noise and odour aspects, and by working with farmer
communities to reduce their fuelwood consumption in, forexample, patchouli and ylang ylang growing areas.
Employees also have the opportunity to play a part in making a
positive impact on local communities. In the fight against
COVID-19 during 2020, for example, at our Jigani site in India we
responded proactively to community hygiene needs. We wereable to partner in producing, packaging, labelling and donatingnearly six tons of hand sanitiser to neighbouring communities in
the Bangalore region. With a short turnaround time, our teamacquired the necessary permits, identified local partners to
produce the sanitiser, packaged and labelled the bottles inhouse and delivered them to local hospitals, police stations andcommunities. Sanitiser stock was also provided to all our
employees and their families, including contractors.

Employees have the opportunity
to play a part in supporting local
communities and our
producer communities.
Givaudan – 2020 Integrated Annual Report

In Australia, employees at our Norwest site in Sydney used an
on-site kitchen-lab facility to provide healthy meals forcommunities affected by the pandemic. Using the site’s savoury
lab in between projects and other day-to-day tasks, volunteers
prepared meals for delivery to a not-for-profit organisation,
Giving Back Australia.
We also supported our producer communities, some of whichwere deeply affected by the COVID-19 crisis during the year. In
Indonesia, for example, those in remote locations such as ourpatchouli partners in Sulawesi and our vetiver partners in Garut,West Java, also faced further challenges which included
widespread road closures and travel restrictions. We worked tosupport them by encouraging good hygiene practices andproviding soap and running water outside warehouses andasking those arriving on site to wash their hands before
entering, providing face masks for every producer or driverentering the warehouse, and supporting our drivers during selfquarantine periods on their return home.
AMBITION
BY 2030

We will improve the lives of millions of people incommunities where we source and operate.
Support for local communities by our employees is often
coordinated by our Green Teams, which are cross-functionalgroups of employees who find new ways of improving theenvironmental and social performance of their local sites. Around
500 active members today undertake diverse community
projects that focus on the broad themes of blindness, health,nutrition, education, plastics and general local community
engagement opportunities, aligned to our purpose. In 2020, over
25 projects were initiated by Green Teams.
All employees can work in association with the Givaudan
Foundation in supporting local communities. In Colombia, ourBogotá site employees run a family welfare programme at a
local care home to promote better alimentary and healthpractices in the daily lives of small children and their families innearby communities. The Givaudan Foundation funds the
programme and provides guidance, while it is run and managed

Communities

The Givaudan Foundation is a
non-profit organisation createdin 2013 with the purpose of
initiating and supporting projects
as well as granting donationsin the areas of education, healthand environment preservation.

Communities where we source and operate 91

Native to the Amazonian basin, guarana is mostly used in energy
drinks and sodas and has a high natural caffeine content. With ateam of agronomists supervising this initiative, we are helping
farmers improve the productivity and quality of guarana seeds.
With Brazbio, we are training these farmers and cooperative
workers in responsible practices, for example through teachingsoil conservation and developing handbooks on good agricultural
practices. This approach has benefits for the communities
involved as well as for the environment. In addition, the Givaudan
Foundation has started a community literacy programme which
benefits more than 140 guarana farmers.

Charitable givingby the employees. The main focus of the project is abouttransmitting knowledge and promoting personal growththrough workshops. In 2020, the Givaudan Foundation funded
six employee-driven projects in Brazil, Colombia, Hungary,
Lebanon, Nigeria and the UK, while eight existing projects in
Brazil, Italy, Jordan, Switzerland, the United Arab Emirates andthe United States were extended.
Our COVID-19 Communities Fund contributed more than
CHF 1 million to enable Givaudan sites to support local
communities affected by the pandemic. Across the Company,
many projects were initiated and made a real impact on local
communities, and in 2020 we created Purpose Live!, a social
innovation programme that has the potential to enable every
one of our 15,852 employees to work for good in theirlocal community.

In addition to the community projects run by us and theGivaudan Foundation, our associated local communities benefit
from charitable giving. We monitor this spend at every site andhave had an annual budget allocation process for all our sites
since 2012. Our internal policy on charitable giving andcommunity support excludes any direct or indirect political
donations or support and we do not fund any political party inany country.
In 2020, the total financial contribution from Givaudan tocommunities was CHF 3.15 million.
READ MORE
2020 GRI Sustainability Report ▸ page 86 ▸ GRI 413: Local communities

With a strong presence ‘on the ground’, we have a clear view ofthe different supply chains that not only helps efficiency but
also allows us to inform our customers more fully about where
our ingredients come from and how they are produced, as wellas to foster local value creation.
Because we work in this way with the farmers and communities
from whom we source, we can understand their needs and direct
our actions to the benefit of local communities. In Brazil, together
with our local partner Brazbio, we have developed a fully
traceable supply chain for guarana, the seeds of which are known
to fight tiredness and to boost physical and mental performance.

Givaudan – 2020 Integrated Annual Report92 Communities

15,852 employees as a force for good

15,852
employees
as aforce forgood
Supporting the communities in which we source
and operate took on a new importance in 2020.
Saulo, Head of Delivery Excellence, Givaudan
Business Solutions, shares how the pandemic
helped accelerate and extend our efforts.

"O

ur Company and our employees are passionate about
the ambition of making sure that all communities
benefit by working with us. Before the pandemic began, we
had committed to improving millions of lives in thecommunities in which we source and operate. COVID-19
brought a new sense of urgency and focus to this purpose.
As countries went into lockdown, we responded swiftly to thepressing need for hand sanitiser for medical, community andfront-line workers. We began production to contribute to theglobal effort, including opening a new, dedicated line at our site
at Vernier in Switzerland.
Givaudan then quickly set up a COVID-19 Communities Fund,contributing over CHF 1 million. I have been fortunate enough to
support the organisation in identifying urgent cases which
would benefit from the fund, alongside my role of leading theGivaudan Business Solutions Delivery Centres. The idea was for
employees who are on the ground in the community to take theGivaudan – 2020 Integrated Annual Reportlead, identifying where vulnerable communities struggling toweather the storm needed help or protection, and then acting
quickly. Through the fund, we have supported 137 communitiesin 69 locations, benefiting about 94,000 people.
The focus was on providing food, medical and other supplies orexpertise. In Brazil, for example, employees were concerned
about local people who were already living on low incomes
before the pandemic, and how lockdown would impact them.
They decided to provide regular deliveries of fresh andnutritious food to families in great need. In Vietnam, employees
wanted to make sure disadvantaged children could continue inschool and supported their families to make it possible.
Across the Company, many projects made a real impact on local
communities. It inspired us to think about how we could buildon the quick, targeted help and enable communities to bringabout permanent and sustainable change themselves. This was
the catalyst for Purpose Live!, a social innovation challenge.

Communities

15,852 employees as a force for good 93

LEFT The global Givaudan community is large and together we
can improve millions of lives. This montage captures some ofthese efforts during 2020, and you can watch a video of employee
testimonials at www.givaudan.com/our-company/about-givaudan/
our-purpose/our-covid-response

create a colour-changing soap which encourages children towash their hands for longer. The technology, which will bepiloted in Brazil, will not only improve hygiene long-term, but
may well also offer a business opportunity.
What we also see is that a very large number ofpeople working at Givaudan want to contribute tocommunity needs. But often, they do not know
where to begin or how much time they can giveout of their working day. Our experience with
Purpose Live! gives a strong signal of how we are
empowered to identify causes and contributewhere we can make a difference, and will help
employees make our purpose part of theireveryday working lives.

Purpose Live! is a path to innovation
with social responsibility which is goodfor employees, good for communities
and good for our business.
In 2021, we will scale up Purpose Live! through a global
community network to foster connections between employees
and give them the information they need to start. In this way,
anyone who wants to contribute will be able to do so. We will
explore how we can look more deeply into communities’ needs
and together create solutions aligned with our purpose goals
and our strategy.
The first step was inviting ‘intrapreneurs’ to come up withideas. We encouraged people to think big about using our corebusiness expertise. It eventually involved 156 employees from47 locations who have crafted sustainable business solutions to
support communities in need in the areas of nutrition,
sanitation and hygiene, mental health and income generation.
More than 400 ideas came out of the first meetings, with
15 tangible projects now under way. One employee group, forexample, decided to repurpose used, one-tonne packaging
containers to provide basic facilities for schoolchildren in India
who had nowhere to wash their hands. The idea is to instil
permanent hygiene habits and reduce waste long-term. Anotherteam is working with partners on a sustainable technology to

The Givaudan community is large and together we are able toimprove millions of lives. I personally find that Givaudan’s
purpose is strongly connected to my own purpose to takeresponsibility for – and make an impact on – the world’s big
problems, a feeling which is echoed across our business.

United Nations Sustainable Development Goals (SDGs)
We support local communities through numerous employee
initiatives that contribute to SDGs 2, 3, 6 and 8.

Givaudan – 2020 Integrated Annual ReportGovernanceOur governancesystems ensure theCompany is a force forgood for the business,
society and the planet.

Material topics covered▸▸ Diversity and inclusion▸▸ Good governance and business conduct▸▸ Human rights▸▸ Labour/management relations▸▸ Transparency and reporting▸▸ Women’s empowerment

96

GovernanceLeading the way in regulatory compliance and product safety

Leading the way in regulatorycompliance and product safety
Regulatory compliance ofour products is essential, andwe work with customers to help
them understand changes in theregulatory environment andhow these changes will impact
consumer products.
Our experts, who range from scientists and toxicologists tospecialists in regulatory affairs, are able to serve customers
from our locations around the world. It is also important for us
to lead efforts in shaping the landscape of our industry throughadvocacy and membership of industry organisations.

Taste & Wellbeing: extending our scopeWith our strong regulatory capabilities, we are ideally placed to
anticipate and meet the regulatory needs of our customers.
The changing shape of our portfolio through recent acquisitions
saw a corresponding expansion of product offerings – and, inturn, of regulatory activities – during 2020. While maintaining
efforts in our traditional flavours arena, there were additional
requirements in supporting customers in adjacent spaces suchas botanicals, preservatives, colourings and naturals.
We increased the number of people in our teams to meet these
new and different demands and reorganised our structure torelease support for the broader range of categories as we
expand into the wider area of taste and wellbeing such as
natural functional and nutritional solutions. Dedicatedexpertise was needed across all the new categories and there
was a corresponding need for increased support in productsafety as well. We now have more than 200 people working inthis expanded scope of our business, with more from aroundthe Company helping align policies and data, for example in
SAP integration.

Givaudan – 2020 Integrated Annual Report

In 2020, we achieved particular success in helping customers
meet demands in product labelling: in Latin America with frontof-pack labels arising from healthy eating expectations, vitaminlabelling in the USA and energy reduction in Europe.
In our continuing and expanding advocacy efforts, in India we
led a local task force of IOFI (International Organization of the
Flavor Industry) together with local industry associations
during the year to establish a food ingredients reference list.
These efforts were acknowledged by the authorities in India.

Fragrance & Beauty: helping ensure transparency
In Fragrance & Beauty we continued our engagement withexternal regulatory bodies and maintained an industry-leading
position in working closely with customers to ensure thetransparency of product information to consumers. Our teams
address a range of important issues for the industry and in 2020
we were particularly active in the US advocating fortransparency in cosmetics. We supported the California Bill
SB312 that was passed during the year and requires cosmetic
producers to disclose the presence of certain ingredients ofconcern. This was a real ‘win’ for the industry in protecting
formula intellectual property while enabling consumers to beaware of ingredients that may be of concern.
With continuing concerns raised by stakeholders about thepotential safety of consumer products emitting fragrance
materials into the air, we completed a ground-breaking study to
examine the potential exposure of consumers to fragrance
ingredients inhaled in the home. This was part of a study on themeasurement of volatile organic chemicals in the home, andprovides valuable conclusions showing very limited exposure atvery low levels that do not pose any concern for consumer health.
This research is part of Givaudan's commitments to research into
new ways of supporting fragrance safety evaluation.
During the year we also continued our long track record ofresearch into the safety of our raw materials for consumer use,in particular in the area of potential impacts concerning
reproductive toxicity. Using non-animal test methods, ourteams are showing that several key ingredients in the lily of theGovernancevalley muguet group do not pose concern for consumers. The
most recent data have been accepted for publication in therespected journal Archives of Toxicology.
As part of our commitment and strategy to end the need foranimal testing for raw material safety assessment, Givaudan
will join the Animal Free Safety Assessment (AFSA)
Collaboration coordinated by Humane Society Internationalin 2021. The society has an international track record in
advocating and supporting research and responsible legislationthat will eliminate the need for animal testing.
We also made good progress in strengthening our support for
the use of biodiversity ingredients through ongoing work inlocal countries to meet biodiversity law requirements. These
countries included Brazil, India and Indonesia. As this area oflaw continues to evolve, we consider it critical that the use andsupply of naturals support access and benefit-sharing laws.

Making sure our products are safe
Product safety is of prime importance and in providing safe
products to our customers we also want to ensure the healthand safety of consumers when our products are used as intended.

More than 100 food safety experts
in all regions are forming a global
network aiming to bring food safety
in Givaudan to the next level.
Customers need to manage any environmental, health andsafety risks associated with the use of our ingredients and so it
is vital we supply the necessary information for the proper
handling of our products. We invest in environmental safety
expertise and research to ensure that our workers and theenvironment are not harmed in the production of our products.
Givaudan has a long history of investing in safety evaluation of
its raw materials and we develop critical data to support these

Leading the way in regulatory compliance and product safety97

evaluations along with our suppliers. We are the industry leader
in the development of novel non-animal test methodologies tosupport both human and environmental safety assessment ofour materials, enabling us to comply with safety regulations
around the world.
Alongside continuous improvement in our standards, systems
and programmes, we seek to further strengthen our food safety
culture. More than 100 food safety experts in all regions,
including those in recently acquired businesses, are forming a
global network aiming to bring food safety in Givaudan to thenext level. As part of our risk mitigation strategy, we haveassessed the food safety compliance levels of newly acquired
businesses and created improvement roadmaps.
During the year we strengthened sanitation protocols at our
production sites and offices to combat the spread of the
COVID-19 virus – a mandatory enhancement which not only
kept our workforce safe but also reinforced good hygienic
practices to further help protect our products. To increase
people's risk awareness and our food safety culture, we launched
two global communication campaigns – on Global Handwashing
Day and the World Food Safety Day – to engage everyone inlearning activities and drive the right behaviours to protect
employees, their families and the consumers of our products.
All the ingredients used in our formulas are evaluated for any
environmental, health and safety impact and this information isdisclosed and filed with the relevant regulatory bodies
whenever necessary. Quality and environmental data about our
products, including safety information, are available throughproduct labels and safety data sheets. The safety data sheets
are available in more than 40 languages and are attached toevery consignment.
All these efforts are aimed at ensuring that the products weprovide to our customers are safe, and we also know thatmanaging and encouraging our people while protecting theirhealth and safety is an essential part of being a responsible
employer and critical to meeting our goals.

Givaudan – 2020 Integrated Annual Report98 GovernanceOur code of conduct for a positive impact on society

Our code of conduct for apositive impact on society
As a purpose-led company,
we can go even further inmaking our world a happier,healthier place.
Our creations inspire emotions and touch millions of lives, andwe have the potential to increase our positive impact on theworld through sustainable solutions while showing our love
for nature.
These purpose commitments guide us in our choices and in our
way of doing things. We adhere to high ethical standards in theway we interact with all our stakeholders – customers, suppliers,
shareholders, employees, competitors, government agencies andthe communities in which we operate. Being open, transparent
and honest in our dealings with these stakeholders allows us togrow responsibly and share our success.
The Givaudan Principles of Conduct express our ethicalcommitment and are the cornerstone of our Company culture.
They are available in all major Company languages, and were last
reviewed in 2018.
The ethical commitments in our Principles of Conduct aredeveloped around three pillars: Legal & Ethical Business Dealings,
Responsible Corporate Citizenship and Protecting Givaudan’s
Assets. An additional section, ‘How we live the Principles’, restates
our employees’ responsibility for ethics and integrity and explainsways of reporting any violation of the Principles, including aworldwide Compliance Helpline.
While our Principles of Conduct guide our employees in ethicalstandards, our Responsible Sourcing Policy is a code of conduct
for our suppliers to ensure our partners’ commitments arestrong and ethical. Our Responsible Sourcing Policy includes amechanism to report grievances.

Givaudan – 2020 Integrated Annual Report

Givaudan’s Principles of Conduct

Legal & ethicalbusiness
dealings

Compliance with the law and Givaudan policies
Bribery and corruption
Gifts and entertainment
Competition law
Insider dealing
Conflicts of interests
Ethical conduct

Responsible
corporate
citizenship

Human rights
Preserving the environment
Diversity and fair treatment
Fair employment standards and safe work
environment
Child labourProtecting
Givaudan’sassetsFraud against Givaudan
Open communication
Protection of confidential informationand trade secrets, intellectual property
Conduct in research, development,
application and creation

READ MORE
www.givaudan.com ▸ Our Company ▸ Corporate governance ▸ Code of conduct
www.givaudan.com ▸ Our Company ▸ Corporate governance ▸ Ethics andcompliance ▸ Responsible sourcing policy

Ethics and Compliance Programme:
prevent – detect – respond
Our Ethics and Compliance Programme is based on the complianceand fraud prevention concept of ‘prevent – detect – respond’. The
Corporate Ethics & Compliance Officer oversees the administrationof this programme and coordinates with other dedicated functions
for effective compliance management. This is further enhanced bya global compliance team and network of local compliance officers
and regional compliance coordinators.
Regular compliance risk assessments are carried out by the
Corporate Ethics & Compliance Officer with local complianceofficers and corporate functions. In 2020, we used external
support to review the methodology for those compliance risk
assessments and carry out the assessments to ensure newGovernance

PREVENTOur code of conduct for a positive impact on society

DETECTRESPOND

Appropriateorganisation andleadership

Ongoing
assessment ofcompliance risks

Due diligenceprocess

Investigationof compliancecases

Reportingto seniormanagement

Documents,
processes andsystems

People andtraining

CompliancereportingDisciplinary
actions

Process
improvement

Monitoring and audit

anti-bribery guidance and regulations (including the French Loi
Sapin 2 or the updated guidance on “Evaluation of Corporate
Compliance Programs” of the US Department of Justice) were
properly reflected.
We have a Group-wide Compliance Helpline system whichallows employees to report suspected or actual misconduct orviolations of the Company’s policies on a confidential basis andwithout fear of retaliation. We also have a mechanism as part of
our Responsible Sourcing Policy to allow suppliers to bringgrievances to our attention.
We also have a compliance incident investigation procedure andprocess in place for investigations of compliance allegations
received through any channel. Depending on the nature of theallegations, these cases are handled either locally or centrally.
Where required, external specialist support is sought.

99

Continuous improvement

Other compliance processes include the selection andengagement of third-party agents and distributors and the global
supplier selection process of the Procurement organisation. The
Corporate Ethics & Compliance Officer reports regularly to theBoard of Directors, the Audit Committee of the Board, theExecutive Committee and the CEO.
Dedicated corporate functions ensure the management ofcompliance with specific areas of operational compliance risksuch as product safety/regulatory, procurement, trade affairs,
environment, and occupational health and safety. The Group
Data Protection Officer oversees the implementation of theGroup Data Protection programme.

Givaudan – 2020 Integrated Annual Report

100

GovernanceOur code of conduct for a positive impact on society

Tackling corruption through anti-bribery andcorruption management
Adhering to high ethical standards means protecting ourbusiness for the risks of corruption and bribery. Givaudan has
zero tolerance towards bribery and corruption, including
facilitation payments, as stated in our Principles of Conduct.
Most countries where we operate have strict anti-bribery laws.
These include the UK Bribery Act, the US Foreign Corrupt
Practices Act, the French Loi Sapin 2 and anti-bribery laws andregulations of other countries where Givaudan either plans oralready does business. Anti-corruption compliance is managed
as part of the Givaudan compliance management system:–– Corruption is one risk domain regularly reviewed by the
Corporate Ethics & Compliance Officer as part of thecompliance risk assessment.
–– Corruption and inappropriate gifts and entertainments areprohibited in our Principles of Conduct. They are addressed in
more detail in our Global Anti-Bribery, Gifts, Entertainmentand Hospitality policy, including the reporting of gifts andentertainment. Both documents are available to employees
in all major Company languages.
–– Givaudan has included corruption and gifts/entertainment in
its basic compliance training for all permanent employees andissues specific anti-bribery training to selected employees.
–– We disclose charitable contributions and sponsorship.
–– As part of monitoring activities, the Compliance Helpline
allows employees to report compliance issues in confidence.
The helpline is open in all sites, and available in all major
Company languages.
–– Givaudan has a procedure for the selection and engagementof agents and distributors, which includes a formal due
diligence review and minimum requirements for agent
contracts and payments.
–– We conduct pre-signing due diligence on acquisition targets
and integration of acquired companies into our Ethics andCompliance Programme system post-closing.
We have training and monitoring programmes in place to ensure
our social responsibility. Mandatory compliance training on the
updated Principles of Conduct was launched in 2017 to all
employees. The training material is available as online training in
all major Company languages and includes material on antibribery, corruption and corporate social responsibility. The
completion rate for Givaudan employees, including Naturex
employees, currently stands at 87%.

Givaudan – 2020 Integrated Annual Report

Specific anti-bribery training continues, with 6,979 senior
managers of Givaudan having been invited to complete thistraining since the launch in 2013. This group includes all membersof the Executive Committee and other employees whose work
involves regular and direct contact with external stakeholders. At
the end of October 2020, the completion rate was 97%. In Q4
2020, we started the roll-out of a new anti-bribery training to all
managerial employees.
With further acquisitions in recent years we have continued toroll out our Ethics and Compliance Programme, which includes
training for employees in the acquired companies. Depending on
the integration status of the acquired company, the training
programme is available either online or offline, but in both cases
in all relevant languages. The basic training includes essentiallythe same material on anti-bribery, corruption and corporatesocial responsibility as the basic training for Givaudan employees.
Additional compliance training may be introduced as a result of
pre-acquisition due diligence.
READ MORE & DOWNLOAD
www.givaudan.com ▸ Our Company ▸ About Givaudan ▸ Our position
statements ▸ UK slavery act, Social responsibility position statement,
California Transparency Act
2020 GRI Sustainability Report ▸ page 38 ▸ GRI 205: Anti-corruption

Givaudan, a business acting as a force for goodIn pursuing socially responsible growth we go beyond financial
due diligence and establish leading ethical, social andenvironmental practices at our sites and areas of operations.
Issues such as respect for human rights and child labour become
part of our internal and external behaviours. In this way we canmake a positive impact on all stakeholders we work with andthe communities in which we are present, helping to make ourworld a happier, healthier place.
Social responsibility and human rights are deeply ingrained in our
culture; we consider them as a part of a basic licence to operate
our business. We endorse the UN Guiding Principles on Businessand Human Rights and base our human rights commitment on
the International Bill of Human Rights consisting of the Universal
Declaration of Human Rights and the International Labour
Organization’s Fundamental Conventions on Rights at Work. To
strengthen our commitment in this area, we endorsed the
WBCSD’s CEO call-to-action on Human Rights in October 2020.
The basis of our ethical standards, specifically Responsible
Corporate Citizenship, can be found in our Principles of Conduct,
which is supported by policies and guidelines. We expect every
employee to be accountable for upholding our Principles in daily
actions within their own sphere of influence and with business
partners and stakeholders.

GovernanceFor transparency and to ensure Givaudan works against thehighest standards of ethical practice, we are an active memberof Sedex, a global platform that enables companies to manage
their performance around labour rights, health & safety, theenvironment and business ethics. Since 2010, we are committed
to register all our production sites on the Sedex platform andundergo associated due diligence process. At the end of 2020,55 of our production sites were registered on Sedex, havecompleted Sedex self-assessment questionnaires and are being
assessed as per their set standard, i.e. Sedex Members Ethical
Trade Audit (SMETA). As we acquire companies, we integratethem into our processes and platforms including under Sedex
SMETA programme.
We also participate in the EcoVadis CSR assessments, disclosing
detailed information around our business practices on humanrights and labour aspects besides environment, ethics andresponsible procurement. In the 2020 assessment, we received
an overall score of 75/100, earning us the new Platinum medal
and placing us in the top 1% of all companies assessed.
All forms of child or forced labour are against our principles. Our
Principles of Conduct stipulate we do not practice or tolerate
any form of child exploitation or forced labour and that we do
not provide employment to children before they have completed
their compulsory education.
For business partners and suppliers, our Responsible Sourcing
Policy specifies that suppliers must not use child labour (or forced
labour) and are expected to comply with all reporting obligations
regarding the abolition of child labour and human trafficking.
READ MORE
www.givaudan.com ▸ Our Company ▸ Corporate governance ▸ Ethics andcompliance ▸ Responsible sourcing policy
2020 GRI Sustainability Report ▸ page 36 ▸ GRI 204: Procurement practices
2020 GRI Sustainability Report ▸ page 83 ▸ GRI 408: Child labour2020 GRI Sustainability Report ▸ page 84 ▸ GRI 409: Forced orcompulsory labour2020 GRI Sustainability Report ▸ page 85 ▸ GRI 412: Human rights assessment

Our code of conduct for a positive impact on society

101

Establishing leading labour relations practices
Genuine open dialogue with freely chosen employee
representatives, we believe, improves understanding between
employees and employers and helps find ways to mutuallyresolve potential conflicts. We respect every employee’s right tofreedom of association and collective bargaining, and we follow
commonly recognised best practices with all of our employees
globally. In addition, it is necessary to support the freedom ofindividuals to join trade unions, and regular union / Works
Council consultations are held with a group of employees
representing union / Works Council members at all applicablesites around the world. The purpose of these consultations is toinform and consult employees about significant changes in theorganisation, ensure the right to freedom of association andcollective bargaining is not put at risk, and to report any feedback
to our Executive Committee to take any suitable action as
required. In this matter, we respect all legal local notice periods
prior to the implementation of changes that could affect ouremployees, either through direct communication to affected
employees or through their elected representatives, unions /works councils or other groups. In countries where there arecollective agreements and where it is mandatory, minimum
notice periods regarding operational changes are specified. These
range from no notice to three months, depending on the country
and based on local laws and practices.
To ensure working hours at our sites are not excessive and do not
generally exceed the 60 hours a week limit as defined under the
Ethical Trade Initiative (ETI) principles, we are committed to the
ETI Base Code principles and are a member of Sedex and AIMProgress forums. Where local regulation and the ETI’s international
working hours rule differ, we follow the higher standard, and if
there is a conflict then we follow the national regulation with theaim of aligning with the ETI’s international standard. Here we put
all our sites through the Sedex SMETA assessments under which
the working hours as defined by national regulation and ETI
principles are regularly checked. The same applies for our suppliers
as we encourage and support them to become part of Sedex
platform and undergo SMETA assessments.
Our position around fair employment practices, respectful work
environments, freedom of association and fair wages concerning
our workforce are all highlighted in our Principles of Conduct.
READ MORE
2020 GRI Sustainability Report ▸ page 72 ▸ GRI 402: Labour/management
relations safety2020 GRI Sustainability Report ▸ page 82 ▸ GRI 407: Freedom of associationand collective bargaining

Givaudan – 2020 Integrated Annual Report102 Governance

Effective and transparent corporate governance

Effective and transparent
corporate governance
A good governance system
supported by responsible
management and effective
supervision is essential for sharedsuccess and for the continued
creation of value for the Company.
Assuring value creation throughgood corporate governance

At Givaudan we pride ourselves in transparent governance,
which ensures we manage and supervise our operations in a
responsible way. Our structures and processes for the direction
and control of our Company allow for a continued focus on value
creation for all our stakeholders as well as nature, in line with our
Purpose. They include internal and external controls andmonitoring systems.
Our Board of Directors ensures the Company operates according
to Swiss and international business standards and practices.
The Board of Directors is responsible for the ultimate direction,
strategic supervision and control of the management of theCompany, as well as other matters which, by law, are its

BOARD MEMBERS

AVERAGE TENURE
IN YEARS9

5﹒6

Givaudan – 2020 Integrated Annual Report

responsibility. Each of our nine Board members has an in-depth
knowledge of his or her relevant areas of expertise andcontributes to the Board competencies. The Board of Directors
has delegated the day-to-day operational management of theCompany to the Executive Committee. The Executive
Committee, under the leadership of the Chief Executive Officer,
is responsible for areas of operational management of theCompany that are not specifically reserved to the Board of
Directors such as the ethical operation of the Company.
Our governance systems enable the Company to live andimplement its Purpose, which ensures that the Company is a force
for good for the business, society, and the planet. One element of
this is the governance for our sustainability efforts, which are ledby the Head of Global Procurement and Sustainability, who is amember of the Executive Committee. He ensures the Board is kept
up to date on our efforts and actions on bringing shared value toour stakeholders and on matters pertaining to sustainability ingeneral. He is supported by a dedicated sustainability leadershipteam made up of internal specialists and deals with dedicatedbusiness partners to ensure the implementation of our sustainablebusiness approach. In addition, risks related to Environmental,
Social and Governance (ESG) and sustainability issues are also
assessed as part of the Company’s Enterprise Risk Management
process and were included in the discussions during thedevelopment of the 2025 corporate strategy.

NATIONALITIESREPRESENTED ON
THE BOARD

5WOMEN ON
THE BOARD

3

Governance

Assuring stable governance during
unprecedented times
The COVID-19 pandemic has shown the resilience of theCompany and its governance and leadership. Existing crisis
management and business continuity procedures allowed theCompany to institute crisis management teams very quickly on
local and on global levels. The global crisis management team
was made up of members of the Executive Committee andfunctions with special expertise in dealing with crises and worked
together with the business continuity teams in both divisions.
Thanks to the governance established, the Company was able tokeep production open and to ensure that our own people andsupporting communities were protected and customer andconsumer demand for essential products met. The Company isprepared for the longer-term impact, especially in the areas ofdigitalisation and employee health and wellbeing. Everybody
whose presence was not essential on site was sent to work from
home, meetings changed to virtual at all levels of the Company
and strict travel and visiting rules enforced. The team kept theBoard of Directors and in particular the Chairman fully updated.

Effective and transparent corporate governance103

The strong leadership and governance even enabled the Company
to develop and announce its new five-year strategy as planned
despite the COVID-19 pandemic. The strategy development
process had started before the pandemic and was able to becompleted in a series of virtual meetings of the Board of Directors.
During the process, the impacts of the pandemic and its projected
aftermath, in terms of threats as well as opportunities, wereassessed with the help of the Enterprise Risk Management
function, which was part of the strategy development team.
READ MORE
2020 Governance, Compensation and Financial Report ▸ page 4 - 21 ▸Governance Report

The Company is prepared for the
longer-term impact, especially inthe areas of digitalisation andemployee health and wellbeing.

EXECUTIVE COMMITTEEMEMBERSAVERAGE TENURE
IN YEARS7

4﹒6

NATIONALITIESREPRESENTED ON
EXECUTIVE COMMITTEE

6WOMEN ONTHE EXECUTIVECOMMITTEE

1

Givaudan – 2020 Integrated Annual Report104 Governance

Effective and transparent corporate governance

BOARD COMMITTEES ¹

ACAudit Committee

Thomas Rufer (Chairman) /Lilian Biner / Victor Balli /Olivier Filliol▸▸ Assists the Board in its oversight
responsibilities with respect tofinancial reporting▸▸ Ensures effectiveness and efficiency
of internal control, risk management
and compliance systems▸▸ Assesses and overviews the internaland external audit processes

Calvin Grieder
Engineer /  Swissnational, born in 1955
in the USA / Nonexecutive / First
elected in 2014 /Chairman since 2017

CC, IC

Victor Balli

IC

Innovation Committee

Michael Carlos (Chairman) /Calvin Grieder / Prof. Dr-Ing.
Werner Bauer / Olivier Filliol▸▸ Assists the Board in scientific mattersrelating to the flavours, fragrancesand cosmetics Industry▸▸ Identifies opportunities,
proposes and screens potential
innovation partner
1. All committee members were part of their respective
committee(s) for the entire year of 2020, except
the new members: Olivier Filliol from 25 March 2020,and Sophie Gaperment from 1 September 2020.

Givaudan – 2020 Integrated Annual Report

Businesswoman /Swedish national,
born in 1962 / Nonexecutive / First
elected in 2011

AC, CC

Prof. Dr-Ing. Werner Bauer Chairman) /Ingrid Deltenre / Victor Balli▸▸ Reviews and recommends thecompensation policies to the Board▸▸ Approves the remuneration for the
Executive Committee▸▸ Prepares the Compensation Report

Calvin Grieder (Chairman) /Ingrid Deltenre / Michael Carlos /Sophie Gasperment▸▸ Assists the Board in applying principles
of good corporate governance▸▸ Prepares appointments to the Boardand the Executive Committee

Lilian Biner

Businessman / Swissnational, born in 1957 /Non-executive /First elected in 2016

CC

NGC

VICE-CHAIRMAN

Businessman /German and Swissnational, born in 1950 /Non-executive /First elected 2014

NGC, IC

Compensation Committee

Nomination and GovernanceCommittee

Prof. Dr-Ing.
Werner Bauer

CHAIRMAN

Michael Carlos

Businessman / Frenchnational, born in 1950 /Non-executive /First elected in 2015

NGC, ICAC

Ingrid Deltenre
Businesswoman /Dutch and Swissnational, bornin 1960 / Nonexecutive / First
elected 2015

CC, NGC

Governance

The Board of Directors consists of nine Board members, headed by
our Chairman Calvin Grieder and currently comprises six men andthree women representing five nationalities, The Board of
Directors is responsible for the ultimate direction, strategic
supervision and control of the management of the Company. In
general, Board members are elected each year at the Annual
General Meeting for a mandate of one year. In 2020, one exception
was made for governance reasons to allow Sophie Gasperment,
who joined the Board in September 2020, to step off anotherboard beforehand and avoid being over-boarded.

Businessman /Swiss national,
born in 1967 /Non-executive /First elected 2020

AC, IC

Sophie Gasperment
Businesswoman /French national,
born in 1964 /Non-executive /First elected 2020

NGC

Certified Public
Accountant /Swiss national,
born in 1952 /Non-executive /First elected 2009

AC

105

Board of Directors

Olivier Filliol

Thomas Rufer

Effective and transparent corporate governanceMembership of the Board is composed in such a way as to ensure
it possesses all the competencies required to execute its strategic
oversight and control over Givaudan. The Board has formed four
Board committees to support the preparation of discussions anddecisions in certain areas in accordance with Swiss law.

Each of the nine Board members has
an in-depth knowledge of his or her
relevant areas of expertise. Together,
they ensure that the Company has all
the competencies required.
Board expertise
Given the Company’s business and its current 2020 strategy of‘Responsible growth. Shared success.’, the most relevant andimportant required competencies include:–– in-depth knowledge of the flavour and fragrance industry–– international senior business leadership–– strategy setting and implementation and risk management–– financial expertise–– innovation and technology (including digital)–– sales and marketing–– regulatory affairs.
The Board’s knowledge and diversity of experience are important
assets in leading a company of Givaudan’s size in a complex andfast-changing environment.
The Board regularly reviews the list of competencies, including
with the help of external expert advisors, and uses existing andrequired competencies as a basis for its succession planning.

Givaudan – 2020 Integrated Annual Report106 Governance

Effective and transparent corporate governance

EXECUTIVE COMMITTEE

Gilles Andrier

Tom Hallam

French national,
born in 1961 /Appointed in 2005

British and Swissnational, born in1966 / Appointed
in 2017

CHIEF EXECUTIVEOFFICERCHIEF FINANCIAL
OFFICER

Louie D’Amico

Maurizio Volpi

Simon Halle-Smith

US national,
born in 1961 /Appointed in 2018

Italian national,
born in 1969 /Appointed in 2015

British national,
born in 1966 /Appointed in 2015

PRESIDENTTASTE &WELLBEING

Willem Mutsaerts
HEAD OF GLOBALPROCUREMENT ANDSUSTAINABILITY

Dutch national,
born in 1962 /Appointed in 2015

PRESIDENTFRAGRANCE &BEAUTY

Anne Tayac
HEAD OFGIVAUDAN
BUSINESSSOLUTIONS

French national,
born in 1968 /Appointed in 2016

Executive Committee
The Executive Committee is composed of seven members under
the leadership of Gilles Andrier, Chief Executive Officer and consistsof six men and one woman, representing six nationalities.
Dedicated to the overall day-to-day management of Givaudan,
each Executive Committee member capitalises on an average of
20 years' experience in the Company to bring a wealth of industry
knowledge and have all been promoted to the Executive
Committee from inside the Company. Gilles Andrier is one of thelongest-standing CEOs in the industry, being in office since 2005.

Givaudan – 2020 Integrated Annual Report

HEAD OF GLOBALHUMAN RESOURCES
AND EHSGovernance

Setting incentives to create value

107

Setting incentives to create value
Our compensation programmes
reflect the performance of thebusiness and of individuals andare aligned to our strategy ofensuring that Givaudan is a place
where everyone feels welcome,valued and inspired.
It is our aim to attract, motivate and retain a diverse pool ofhighly talented people to sustain our leadership position in our
industry. Our compensation policies are an essential componentof this strategy and as such a key driver of organisational
performance. We have rigorous governance policies andprocesses to ensure that our compensation practices are alignedwith our principles of integrity, fairness and transparency.
Benchmarking studies are conducted regularly and salaries arereviewed taking into account macroeconomic data such as costof living and market evolution.
Our Compensation Committee supports the Board of Directors
in establishing and reviewing compensation policies. It regularly
reviews Company-wide programmes in regard to base salary,pension and benefit plans. The Compensation Committee alsoannually reviews and approves the performance targets andrelated payouts under the annual incentives and share-based
long-term incentives, while the applicable performance criteria
are set by the Board.
For executives and all employees, our competitive compensation
policy is based on the following principles:–– Pay for performance: through our variable pay plans,
employees participate in the Company’s overall success andare rewarded for their contribution to business results.

–– External competitiveness: overall compensation positioning
should enable Givaudan to attract and retain highly talented
individuals critical to its success.
–– Internal consistency and fairness: internal pay scales reflect
job level, function and geographic market.
The impact of the COVID-19 pandemic on all aspects of theGivaudan business was reviewed, and the Compensation
Committee determined that compensation decisions made at
the beginning of 2020 would not be modified. In particular:–– the 2020 salary review for employees and executives took
place according to the pre-established budgets and no
reduction in salary took place; and–– no adjustments to pre-defined incentive targets or
achievements were made for the performance year 2020.
In addition, a special bonus was paid to workers required tocome on site during the lockdown period in recognition of theiroutstanding commitment and efforts in ensuring the continuityof Givaudan operations. An amount was set for each country
according to respective economic environments.
In 2019, Givaudan defined its purpose to articulate its sustained
contribution to people, nature and communities, and set thefoundation for all strategic choices and business decisions. In
relation to this exercise, the Compensation Committee reviewed
the Company compensation plans during 2020. Accordingly,
certain aspects of the Performance Share Plan (PSP) will changewith effect from 1 January 2021. The financial metrics traditionallyused to calculate the PSP will be retained but will becomplemented by non-financial criteria linked to the focus areasof the Givaudan purpose.
READ MORE
2020 Governance, Compensation and Financial Report ▸ pages 23 – 37 ▸Compensation Report–– Alignment of interests: Givaudan seeks to align management
and shareholders’ interests by rewarding long-term value
creation through share-based programmes.

Givaudan – 2020 Integrated Annual Report108 Governance

Setting incentives to create valueCompensation of the Board of Directors
The compensation paid to the Board members for the period
between the 2019 and 2020 Annual General Meetings(CHF 2,817,450) is again within the amount approved byshareholders at the 2019 Annual General Meeting(CHF 2,950,000). Amounts approved at the 2020 Annual
General Meeting (CHF 3,400,000) will be paid by the end of theyear in office and validated in the 2021 Compensation Report.
Such approved and paid amounts may differ from those shownin the Board compensation summary table which, according to
the Ordinance against Excessive Compensation at Listed Stock
Companies (OaEC), must include compensation paid in thereporting year.

Compensation of Board members consists of Director fees,
Committee fees and Restricted Share Units (RSUs). Fees arepaid at the end of each year in office completed. RSUs give
participants the right to receive Givaudan shares (or a cash
equivalent in countries where securities laws prevent theoffering of Givaudan securities) at the end of a three-year
blocking period. During this period Board members must hold
RSUs (accordingly are restricted from trading RSUs or theunderlying Givaudan shares), thereby aligning with shareholderinterests over the longer term. Board members are entitled toreceive Givaudan shares regardless of membership status sothat, for example, if re-election does not occur during the
restriction period, awarded RSUs are retained by the respective
Board member. Such practice has been implemented in linewith best practice in support of Givaudan’s commitment toensuring Board independence.
Board of Directors compensation summary
2020
in Swiss francs

CalvinProf. Dr-Ing.
Grieder
WernerChairman ⁵ Victor Balli ⁵
Bauer ⁵ Lilian Biner ⁵

MichaelCarlos ⁵

IngridDeltenre ⁵

ThomasRufer ⁵

Olivier
Filliol ⁵,⁶

SophieGasperment ⁵,⁷33,333 1,108,333

Director fees ²400,000

100,000

100,000

100,000

100,000

100,000

100,000

75,000Committee fees ²

65,00050,00065,00025,00065,00050,00055,00037,500Total fixed (cash)

465,000

150,000

165,000

125,000

165,000

150,000

155,000

112,500

Number of RSUs granted ³
Value at grant ⁴
Total compensation

8,333

Total
2020 ¹

420,833

41,666 1,529,166

208

52

52

52

52

52

52

39

581,256

145,314145,314145,314145,314145,314145,314108,986

47,507 1,609,633

17

576

1,046,256

295,314

310,314

270,314

310,314295,314300,314

221,486

89,173 3,138,799

1.	Represents total compensation for the Board of Director paid in respect of the reporting year, reported in accordance with the accrual principle.
2.	Represents Director and Committee fees paid in respect of the reporting year, reported in accordance with the accrual principle.
3.	RSUs blocking period ends on 15 April 2023.
4.	Economic value at grant according to IFRS methodology, with no discount applied for the blocking period.
5.	The function of each member of the Board of Directors is indicated on pages 7–9 in the 2020 Governance report.
6.	Represents compensation from April to December 2020.
7.	Represents compensation from September to December 2020.

2019
in Swiss francs

CalvinProf. Dr-Ing.
Grieder
WernerChairman ⁵ Victor Balli ⁵
Bauer ⁵ Lilian Biner ⁵

MichaelCarlos ⁵

IngridDeltenre ⁵

ThomasRufer ⁵Total
2019 ¹

Director fees ²400,000

100,000

100,000

100,000

100,000

100,000

Committee fees ²

65,00050,00065,00025,00065,00050,00055,000Total fixed (cash)

465,000

150,000

165,000

125,000

165,000

150,000

155,000 1,375,000

Number of RSUs granted ³
Value at grant ⁴
Total compensation

252

63

63

63

63

63

144,245

144,245

144,245

144,245

144,245

144,245 1,442,450

1,041,980

294,245309,245

269,245309,245294,245299,245 2,817,450

Estimated social security charges based on 2020 compensation
amounted to CHF 259,230 (2019: CHF 233,000).

63

375,000

576,980

1.	Represents total compensation for the Board of Director paid in respect of the reporting year, reported in accordance with the accrual principle.
2.	Represents Director and Committee fees paid in respect of the reporting year, reported in accordance with the accrual principle.
3.	RSUs blocking period ends on 15 April 2022.
4.	Economic value at grant according to IFRS methodology, with no discount applied for the blocking period.
5.	The function of each member of the Board of Directors is indicated on pages 5–6 in the 2019 Governance report.

Givaudan – 2020 Integrated Annual Report

100,000 1,000,000630

Governance Setting incentives to create value

109

Compensation of the Executive Committee
Total Executive Committee compensation reported in 2020
remained stable compared to 2019, representing full year
compensation for seven members (including the CEO). The
compensation paid is within the amounts approved byshareholders at the respective Annual General Meeting. The

fixed and long term variable compensation approved for 2020
was CHF 15,300,000 (2019: CHF 15,000,000). The annual
incentive, short term variable compensation amount for 2020
was CHF 4,812,783 and will be submitted for approval at the2020 Annual General Meeting (2019: CHF 4,269,632).

Executive Committee compensation summary

in Swiss francs

Gilles Andrier
CEO 2020

Gilles Andrier
CEO 2019

Executive
Committee
members(excluding CEO) ¹
2020- Base salary

1,211,084

1,167,910

3,336,973

3,191,433

4,548,057

4,359,343

574,237

577,527

1,036,769

1,005,412

1,611,006

1,582,939- Pension benefits ²- Other benefits ³

Executive
Committee
members(excluding CEO) ¹
2019

Total
2020

Total
2019

145,344

141,730

433,184

562,795

578,528

704,525

Total fixed compensation

1,930,665

1,887,167

4,806,926

4,759,640

6,737,591

6,646,807- Annual incentive ⁴

1,636,536

1,438,925

3,176,247

2,830,707

4,812,783

4,269,632- Number of performance shares
granted ⁵

895

1,092

2,077

2,448

2,972

3,540

- Value at grant ⁶2,501,078

2,500,243

5,804,177

5,604,941

8,305,255

8,105,184

Total variable compensation

4,137,614

3,939,168

8,980,424

8,435,648

13,118,038

12,374,816

Total compensation

6,068,279

5,826,335

13,787,350

13,195,288

19,855,629

19,021,623

504,728

471,214

1,029,178

989,482

1,533,906

1,460,696

Employer social security ⁷

1.	Represents full year compensation of six Executive Committee members.
2.	Company contributions to broad-based pension and retirement savings plans and annualised expenses accrued for supplementary executive retirement benefit.
3.	Represents annual value of health and welfare plans, international assignment benefits and other benefits in kind.
4.	Annual incentive accrued in reporting period based on performance in the reporting period.
5.	2020 Performance shares vest on 15 April 2023, 2019 Performance Shares vest on 15 April 2022.
6.	Value at grant calculated according to IFRS methodology and based on 100% achievement of performance targets.
7.	2020 estimated social security charges based on 2020 compensation; 2019 estimated social security charges based on 2019 compensation.

Ownership of Givaudan securities
As per 31 December 2020, the Chairman and other Board
members, including persons closely connected to them held
6,501 Givaudan shares in total , the Chief Executive Officer andother members of the Executive Committee, including persons
closely connected to them, held 6,312 Givaudan shares.
Board of Directors: ownership of Givaudan securities
2020
in numbers

SharesExecutive Committee: ownership of Givaudan securities
Blocked RSUs

Calvin Grieder, Chairman

655

752

Victor Balli

175

188

1,355

188

662

188

Michael Carlos

1,187

188

Ingrid Deltenre

292

188

Thomas Rufer

975

188

Olivier Filliol

1,200

52

–

30

Total 2020

6,501

1,962

Total 2019

4,501

2,260

Prof. Dr-Ing. Werner Bauer
Lilian Biner

Sophie Gasperment

Unvested
Performance
Shares2020
in numbers

SharesGilles Andrier, CEO

3,900

3,433

584

1,362

Louie D'Amico

431

1,358

Maurizio Volpi

350

1,715

Simon Halle-Smith

452

1,023

Willem Mutsaerts

269

1,023

Anne Tayac

326

1,023

Total 2020

6,312

10,937

Total 2019

5,265

13,073

Tom Hallam	
Givaudan – 2020 Integrated Annual ReportAppendix

112 Appendix

Our global presence

Our global presence

12

PRODUCTION SITES

2,879
EMPLOYEESGIVAUDAN SITESWORLDWIDE181

PRODUCTION SITESCREATION &APPLICATION SITES

69

Givaudan – 2020 Integrated Annual Report

L ATIN

A

77

NOR
TH

M

ER

IC A

11

PRODUCTION SITES

2﹐142
EMPLOYEES

ERICA
AM

Our expanding market presence
brings us closer to our local andregional customers and gives
us greater capability to serve
these customers through a global
workforce that is dedicated toestablishing and maintainingtrue partnerships.

Appendix

Our global presence 113

EMPLOYEES

15,852CUSTOMERS

E

12﹐850PRODUCTS SOLD PER YEAR

32

EA

M

>
>

PRODUCTION SITES

7﹐205

122,685

EMPLOYEES

P

C
IFI
AC

22

A SI APRODUCTION SITES

3,625
Givaudan sites
	G ivaudan headquarters, Vernier, Switzerland

EMPLOYEES

Givaudan – 2020 Integrated Annual Report114 Appendix

Givaudan sites worldwide

Givaudan sites worldwide
Taste & Wellbeing   Fragrance & Beauty

Tour A – 4 étage, Business Centre Dar El Madina, Micro Zoned’activité Hydra Lot No. 20, 16035 Algers

Givaudan International SA (Suisse)
Bureau de Liaison Algérie

Argentina

San Lorenzo 4759, Esquina Ave Mitre, Munro, Prov.
Buenos Aires B 1605 EIO

Givaudan Argentina SA

Ruta 9 Panamericana Km 36.5, Partido Malvinas Argentinas,
Buenos Aires B1667KOV

Givaudan Argentina SA

Tronador 4890, 8° piso, Buenos Aires C 1430 DNN CABA

Givaudan Argentina Servicios SA ²

12 – 14 Britton Street, Smithfield, Sydney NSW 2164

Givaudan Australia Pty Ltd

Unit 36, 5 Inglewood Place, Baulkham Hills, Sydney NSW 2153

Givaudan Australia Pty Ltd

Suite West 11A, ground fl., 215 Bell Street, Preston VIC 3072

Givaudan Australia Pty Ltd

9 Garling Road, Kings Park, NSW2148,
PO Box 4165, Marayong NSW 2148, Sydney

Naturex Australia Pty Ltd.

Parkview business centre suite 2, 1 Maitland place,
Baulkham HIlls, Sydney, NSW 2153

drom international Pty Ltd.

P.O. Box 2143, Taren Point NSW 22229

Ungerer Australia Pty. Ltd

Austria

Twin Tower Vienna, Wienerbergstrasse 11, 1109 Vienna

Givaudan Austria GmbH

Belgium

Lausbedstraat 4, 3630 Maasmechelen

Naska Ingredients NV

Val d’Or, Gulledelle, 96 BE-1200 Woluwe Saint Lambert, Brussels

Naturex SPRL

Avenida Engenheiro Billings 2185, Jaguaré, São Paulo, 05321-010

Givaudan do Brasil Ltda

Avenida Engenheiro Billings 1653 & 1729, Jaguaré, São Paulo,
05321-010

Givaudan do Brasil Ltda

Rodovia Eduardo Zuccari, Km 21,5, Chácara Recreio Vista
Alegre, Botucatu, São Paulo, 18603-970

G Nutra (Givaudan)

Av. Buriti, no. 5391, Distrito Industrial, CEP: 69.075-000, Manaus

Naturex Ingredientes Naturais Ltda

BrazilCreation &application

Algeria

Australia

Legal Entity nameèmeGRI Scope ¹

Address

Production

Country

Business
activity

1. Locations taken into account for GRI scope: R health & safety performance or P environment, health & safety indicators.
2. GBS centre.

R
P P P
P P P
R
P P
R P
R
P
P
R P
P
P P P
P P
P
P

Rua George Ohm, 230, Conj. 22 (Torre B), 04576-020 Brooklin Novo, Naturex Ingredientes Naturais Ltda
São Paulo
Via Natalino Verdi 120, 13515-000 Charqueada, São Paulodrom internacional Fragrâncias ind. ecom. ltda.

Maj. Gustavo Adolfo Storch 125, 13209-080 Vila Virginia,
undiaí, São Paulodrom internacional Fragrâncias ind. ecom. ltda.

Canada2400 Matheson Blvd. East, Mississauga, Ontario L4W 5G9

Givaudan Canada Co.

Chile

Avda Del Valle 869, oficina 202, Ciudad Empresarial,
Comuna de Huechuraba, Santiago de Chile

Givaudan Chile Ltda

Avenida Suecia 0142 – oficina 303, Providencia, Santiago de Chile

Chile Botanics SA

Panamericana sur Kilometro 297, Linares

Naturex Chile SPA

Givaudan – 2020 Integrated Annual Report

P
R
R P
P

115

Creation &application

GRI Scope ¹

Production

Givaudan sites worldwide

Business
activity

Appendix

Country

Address

Legal Entity name

China

15F, Tower 2, Kun Sha Center, no. 16 Xin Yuan Li Road,
Chao Yang District, 100027 Beijing

Givaudan Flavors (Shanghai) Ltd
Beijing Branch

R P

15F, Tower 2, Kun Sha Center, no. 16 Xin Yuan Li Road,
Chao Yang District, 100027 Beijing

Givaudan Fragrances (Shanghai) Ltd
Beijing BranchR

668 Jing Ye Road, Jin Qiao Export Area, Pu Dong New Area,
201201 Shanghai

Givaudan Flavors (Shanghai) Ltd

298 Li Shi Zhen Road, Zhangjiang High-Tech Park,
Pudong New Area, 201203 Shanghai

Givaudan Fragrances (Shanghai) Ltd

222, Jiang Tian East Road, Songjiang Development Zone,
201600 Shanghai

Givaudan Specialty Products(Shanghai) Ltd

No. 7 Jianghai Road, Nantong Economic and Technological
Development Area, 226017 Nantong, Jiangsu Province

Givaudan Flavours (Nantong) Ltd

Unit 5, 15F Shuion Center, no. 374 – 2 Beijing Road, Yue Xiu
District, 510030 Guangzhou

Givaudan Flavors (Shanghai) Ltd
Guangzhou Branch

R P

Unit 6 – 7, 15F Shuion Center, no. 374 – 2 Beijing Road, Yue Xiu
District, 510030 Guangzhou

Givaudan Fragrances (Shanghai) Ltd
Guangzhou BranchR

Room 2001, 20F Funian Plaza-2, no. 666 Jitai Road,
Gaoxin District, 610041 Chengdu, Sichuan Province

Givaudan Flavors (Shanghai) Ltd
Chengdu Branch

R P

Room A1301, Bldg 2, no. 80 Jin Shui Road (East), New Green
City, Zhengzhou, He Nan Province

Givaudan Flavors (Shanghai) Ltd
Zhengzhou Branch

R P

Shanghai Juke Biotech Park, 6 Floor, Bdg 4, no.333 Guiping
Road, Xuhui District, 200233 Shanghai

Naturex Trading Shanghai Co, Ltd

Unit 1001, 10 F Miramar Tower, 132 Nathan Road, Tsim Sha Tsui

Givaudan Hong Kong Ltd

8 Sham Shing Road, Cheung Sha Wan, new Kowloon

drom Hong Kong

Room.237, building 7, Zhong Tian Hi-Tech Park ,787 Kangqiao road, Pudong New Area, 201315 Shanghai

drom Shanghai

no. 66, Hongjing Road, 510760 Guangdong

drom fragrances international(Guangzhou) Ltd.

P

#1-2 Building No. 508, Lane 2655 Fengzhe Road, Fengxian,
Shanghai 201407

Ungerer Fragrance & Flavor(Shanghai) Co. Ltd.

P

Colombia

Carrera 98 no. 25 G – 40, 151196 Bogotá D.C.

Givaudan Colombia SAS

Czech
Republic

Klimentská 10, Praha 110 00

Givaudan CR, s.r.o.

Egypt

Piece 37, Industrial Zone 3, 6th of October City

Givaudan Egypt SAE

46 El Thawra st., 3 floor, Appt 304, Heliopolis

Givaudan Egypt Fragrances LLC

Niemenkatu 73, 15140 Lahti

Givaudan International SA,
Branch in FinlandthrdFinland

P P

P
P

P P
P P
P P

R
P
P

P
R P
R
P P
R P
R

Givaudan – 2020 Integrated Annual Report116 Appendix

Givaudan sites worldwide

Taste & Wellbeing   Fragrance & Beauty

France46 avenue Kléber, 75116 Paris

Givaudan France SAS

4 rue Lord Byron, 75008 Paris

Expressions Parfumées

4 Rue Lord Byron, 75008 Paris

Expressions Parfumées

4 et 6 rue Curie, 92150 Surenes, Paris

drom international S.A.R.L.

55 rue de la Voie des Bans, 95102 Argenteuil Cedex

Givaudan France SAS

19 – 23 rue de la Voie des Bans, 95102 Argenteuil Cedex

Givaudan France SAS

16 rue Henri Becquerel, BP 525 – ZI Mitry Compans, 77295 Mitry Mory

Activ International SAS

Route de Bazancourt, 51110 Pomacle

Givaudan France SAS

Anse du Pors Gelin, 22560 Pleumeur Bodou

Givaudan France SAS

3 Rue des Satellites, 31400 Toulouse

Givaudan France SAS

136 Chemin de Saint-Marc, 06130 Grasse

Expressions Parfumées

250 rue Pierre Bayle – BP 81218 – 84911 Avignon Cedex 9

Naturex SA

Actiparc de Pont de Vaux /Les Chapelles Sud – 01190 Reyssouze

Naturex SA

St Jean Baptiste 629 Route de Grasse, 6220 Vallauris

Albert Vieille SAS

Bátiment Mélèze, 86 rue de Paris, 91400 Orsay

Alderys

Giselherstrasse 11, 44319 Dortmund

Givaudan Deutschland GmbH

Lehmweg 17, 20251 Hamburg

Givaudan Deutschland GmbHIm Zollhafen 24, Kranhaus Süd, 50678 Köln

Naturex GmbHGermany

Oberdiller str. 18, 82065 Baierbrunn

drom fragrances GmbH & Co. KG

Guatemala

Boulevar Los Proceres 18, Calle 24 – 69 Zona 10, Empresarial
Zona Pradera, Torre 1, Oficiana 1201-01010

Givaudan Guatemala SA

Hungary

Királyhegyesi út 3, 6900 Makó

Givaudan Hungary Kft

Bence utca 1. , Váci Greens B, 1138 Budapest

Givaudan Business Solutions Kft ²

Givaudan – 2020 Integrated Annual ReportCreation &application

Legal Entity name

GRI Scope ¹

Address

Production

Country

Business
activity

1. Locations taken into account for GRI scope: R health & safety performance or P environment, health & safety indicators.
2. GBS centre.

R P
P
P P
P P
P P
P P
P P
R P
P
P
P
P P P
R
P

P

R
P P
R P

Legal Entity name

India

Plot No. 30, Survey no. 168, Dabhel Industrial Estate, Daman 396210 Givaudan (India) Pvt Ltd
Survey no. 57/3 (2) & 3, Village Dunetha, Daman 396 210

Givaudan (India) Pvt Ltd

Plot no. 26, 2nd Cross Jigani Industrial Area, Anekal Taluk, Jigani,
Bangalore, Karnataka 560 105

Givaudan (India) Pvt Ltd

13th Floor Prestige Meridian 1, 29 MG Road, Bangalore, 560001

Givaudan (India) Pvt Ltd

401 Akruti Centre Point, 4 Floor, MIDC Central Road,
MIDC, Andheri (East), Mumbai 400093

Givaudan (India) Pvt Ltd

406 – 410, 4th Floor, JMD Pacific Square, Sector 15, Part II,
Gurgaon 122001, Haryana

Givaudan (India) Pvt Ltd

H-2 Ranjangaon Industrial Area Phase II, Pune 412209

Givaudan (India) Pvt Ltd

Star Hub, Building no. 02, 3 Floor,302, Sahar Airport Road,
Near ITC Grand Maratha, Andheri (E), 400 059 Mumbai

Naturex India Pty Ltd

Plot no. 15/2, Dhatav, Roha, District, Raigad, 402116 Mumbai

Naturex SA

Plot No. F-366, Phase - Viii-B, Ind. Focal Point, Mohali, Punjab

Ungerer Flavours India Private Limited

Jl. Raya Jakarta-Bogor Km 35, Cimanggis Depok, 16951 West Java

PT. Givaudan Indonesia

Capital Place, 9th floor, Jl. Jend. Gatot Subroto Kav. 18, 12710 Jakarta

PT. Givaudan Indonesia

Rukan Permata Senayan blok B-22. Jalan Tentara Pelajar, Senayan,
12210 Jakarta

PT Fragrance Oils Indonesia

German Center Building, 6th floor, suites 6120-6130, jl. kapt.
subijanto dj., 15321 South Tangerang City, Banten

PT drom fragrances Indonesia

Iran

P.O. Box 15175/534 – no.202 – 204, Gol Bld., Gol Alley,
After Park Saei, Vali Asr, Tehran

Givaudan International SA, Iran
BranchItaly

Via XI Febbraio 99, 20090 Vimodrone (MI)Givaudan Italia SpA

Via Valassina 24, 2015 Milan

drom international Italia S.R.L.

Via Varesina 162, 20156 Milan

Expressions Parfumées

Via Galileo Ferraris, 44, 21042 Caronno Pertusella (VA)

Naturex SpA

Immeuble RMO, 5ème étage, rue du Docteur Blanchard
Zone 4C, Abidjan

Givaudan International. SA Côte
d’Ivoire

Abidjan Yopougon, Chaumière du Banco, 04 BP 1682, Abidjan

ITRAD3014 – 1 Shinohara-cho, Yokohama-shi, Kanagawa 222-0026

Givaudan Japan K.K.

3056 Kuno, Fukuroi-shi, Shizuoka 437-0061

Givaudan Japan K.K.

thrdIndonesia

Ivory Coast

Japan

117

Creation &application

AddressGRI Scope ¹

Country

Production

Givaudan sites worldwide

Business
activity

Appendix

P P
P
P P
R
R P
R
P P
P
P
P P
R P
P
R
R P
P
R
R P
P P
R P

3 – 6 – 6 Tokiwa New Building, Osaki, Sinagawa-Ku, Tokyo 141-0032 Givaudan Japan K.K.
NBC MITA Building 7F, 5 – 29 – 18, Shiba, Minato-ku, Tokyo 108-0014 Naturex KK
Kenya

Vienna Court, Ground floor, West Wing Building, State House
Crescent Road, P.O. Box 44168-00100 Nairobi

Givaudan MEA FZE - Kenya

Korea(Republicof)

11/F Trust Tower Bldg, 60 Mabang-ro, Seocho-Gu, Seoul 06775

Givaudan Korea Ltd

12/F Trust Tower Bldg, 60 Mabang-ro, Seocho-Gu, Seoul 06775

Givaudan Korea Ltd

Room 503, 14, Hwangsaeul-ro 311beon-gil, Bundang-gu,
Seongnam-si, Gyeonggi-do 13590

Naturex (Korea)

R
R P
R P

Givaudan – 2020 Integrated Annual Report

118

Appendix

Givaudan sites worldwide

Taste & Wellbeing   Fragrance & Beauty

A-901 Menara 1, Kelana Brem Towers, Jalan SS 7/15 (Jalan Stadium), Givaudan Flavours & Fragrances
47301 Petaling Jaya Selangor Darul Ehsan
Malaysia Sdn. Bhd

MoroccoMyanmarR P

No. 121, Jalan Usaha 10, Kawasan Perindustrian Ayer Keroh,
75450 Malacca

Givaudan Flavours & Fragrances
Malaysia Sdn. Bhd

P P

1 First Avenue, Banda Utama, level 12, Bandar Utama, PJU 6, 47800
Petaling Jaya, Selangor

Givaudan Business Solutions Asia
Pacific Sdn Bhd ²

R

Suite 733, Block B2, Level 7, Leisure Commerce Square 9,
Jalan PJS 8/9, 46150 Petaling Jaya, Selangor

Fragrance Oils (Malaysia) Sdn Bhd

Av. Eje Norte-Sur No. 11 Civac, 62578 Jiutepec Morelos

Givaudan de México SA de CV

Lago Alberto 319, Piso 12, Col. Granada, 11520 Del. M. Hidalgo,Ciudad de México

Givaudan de México SA de CV

Av. San Jerónimo 369 P-9, Tizapán San Ángel, 01090 Álvaro
Obregón, CDMX

Givaudan de México SA de CV

Corredor Industrial Quetzalcoatl, No. 6, San Baltazar Temaxcalac,
74126 Puebla

Oxiquimica, Sapi de CV

Carr. Costera del Pacifico Km. 63, Villa de Tututepec de Melchor
Ocampo, 71803 Tututepec, Oaxaca

Ungerer Mexico S. de R. L. de C.V.

8 rue Ibnou Binna Aladdadi, Bourgogne, 20053 Casablanca

Givaudan MEA FZE Morocco Branch

Technopole ONDA – BP 42 – 20240 Nouasser – Casablanca

Naturex Maroc SA

46A – 2C Excellent Condo, Pantra Street, Dagon Township, Yangon

Givaudan Singapore Pte Ltd(Myanmar Branch)

Netherlands Huizerstraatweg 28, 1411 GP Naarden

Givaudan Nederland B.V.

Nijverheidsweg 60, 3771 ME Barneveld

Givaudan Nederland B.V.

Nizolaan 4, 6718 ZC Ede

Vika B.V.

New
Zealand

Level 1, The Lane, Botany Town Center, Te Irirangi Drive,
Botany 2010

Givaudan NZ Ltd

Nigeria

Plot 2 and 4, Block D, Amuwo Odofin Industrial scheme, Apapa/
Oshodi Expressway, Lagos

Givaudan (Nigeria) Limited

Suite 4, 7th floor, Nestoil tower, 41-42 Akin Adesola Street, Victoria
Island, Lagos

Givaudan (Nigeria) Limited

A2 Billings Way, Oregun, Lagos

Fragrance Oils (West Africa) Limited

Pakistan

25th floor, Ocean Tower, Block 9, Clifton,
Karachi - 75600

Givaudan International SA Pakistan

Peru

Av. Victor Andrés Belaúnde 147, Centro Empresarial Real,
Torre Real 1 Piso 11, San Isidro 27, Lima

Givaudan Peru SAC

Philippines

37/F Robinsons Equitable Tower, ADB Avenue corner
Poveda Street, Ortigas Center, Pasig City 1605

Givaudan Singapore Pte Ltd,Regional Operating Headquarter

PolandUl. Puławska 182, IO-1 Building, 02-670 Warszawa

Givaudan Polska Sp. z o.o.

Ul. Postępu 17A, 06-676 Warszawa

Naturex Polska Sp. z o.o Biuro
Handlowe

Givaudan – 2020 Integrated Annual ReportCreation &application

Malaysia

MexicoLegal Entity name

GRI Scope ¹

Address

Production

Country

Business
activity

1. Locations taken into account for GRI scope: R health & safety performance or P environment, health & safety indicators.
2. GBS centre.

P R P
P R P
R
P
P
R
P
R P
P P P
P P
P
P
R
R P
R
R P
R P
R P
R

Russian
Federation

Riverside Towers Business Centre, Kosmodamianskaya
Naberezhnaya 52/5, 115054 Moscow

Givaudan Rus LLC

Delovoy dom B-5, floor 9, Botanicheskiy pereulok 5,
129090 Moscow

Givaudan Rus LLC

Shuhova Str, 14, building 9, Office 201, 115162 Moscow

Naturex LLC

Korpus 2, office 201, Dmitriya Ulianova str. 16, 117292 Moscow

drom fragrances GmbH & Co. KG

1 Woodlands Avenue 8, Singapore 738972

Givaudan Singapore Pte Ltd

1 Pioneer Turn, Singapore 627576

Givaudan Singapore Pte Ltd

19 Chin Bee Road, Singapore 619833

Givaudan Singapore Pte Ltd

R P
R P

510 Thomson Rd, #04-01 SLF Building, Singapore 198135

Fragrance Oils (Far East) Pte.Ltd

South
Africa9 – 11 Brunel Road, Tulisa Park, Johannesburg 2197

Givaudan South Africa (Pty) Ltd

51A Galaxy Avenue, Linbro Business Park,Frankenwald,
Sandton 2065

Givaudan South Africa (Pty) Ltd

Spain

Pla d’en Batllé s/n, 8470 Sant Celoni, Barcelona

Givaudan Ibérica, SA

Edificio Géminis, Bloque B 1° 2a, Parque de Negocios Mas
Blau, 8820 El Prat de Llobregat, Barcelona

Givaudan Ibérica, SA

Sant Cugat Bbusiness Park, Planta 5a, office 15; av. via Augusta,
15-25, 8174 Sant cugat del vallès, Barcelona

drom spain S.L.

Plaça Europa 9-11; Plta 17, Torre Inbisa,
8908 L’hospilalet de Llobregat

Expressions Parfumées Iberica

Autovía A3, salida 343. Camino de Torrent s/n –46930 Quart de Poblet

Naturex Iberian Partners, S.L.U

Carretera Santa Olalla, KM 1; 41240 Almaden de la Plata, SevilleAromasurHyllie Vattenparksgata 12, 215 32 Malmö

Givaudan North Europe ABBåtafjordsvägen 12, 432 63 Bua

Swedish Oat Fiber AB

SwedenSwitzerland c/o Python, Baarerstrasse 21, 6300 Zug

Taiwan,PR China

119

Creation &application

Legal Entity name

GRI Scope ¹

Address

Production

Country

Singapore

Givaudan sites worldwide

Business
activity

Appendix

P P P
P P P
P P
P P P
R P
P P
R

P
P
P R
P

Givaudan SA

Zweigniederlassung Dübendorf 138, Neugutstrasse 46 ,
8600 Dübendorf

Givaudan Schweiz AG

Zweigniederlassung Dübendorf 138, Neugutstrasse 46 ,
8600 Dübendorf

Givaudan International AG

Kemptpark 50, 8310 Kemptthal

Givaudan Schweiz AG

Kemptpark 50, 8310 Kemptthal

Givaudan International AG

Chemin de la Parfumerie 5, 1214 Vernier

Givaudan Suisse SA

Chemin de la Parfumerie 5, 1214 Vernier

Givaudan International SA

Industriestrasse 8A, 8604 Volketswil

Givaudan Suisse AG

Kirchbergstrasse 211, 3400 Burgdorf

Naturex AG

Industriestrasse 8, 9220 Bischofszell

Naturex AG

7/F, no. 303, Hsin Yi Road, Sec 4, Taipei City, Taiwan 106

Givaudan Singapore Pte Ltd,
Taiwan Branch

P P
P
P P P
P
P P
P
P P P
P
P
R P

Givaudan – 2020 Integrated Annual Report

120

Appendix

Givaudan sites worldwide

Taste & Wellbeing   Fragrance & Beauty

Creation &application

GRI Scope ¹

Production

Business
activity

1. Locations taken into account for R health & safety performance or P environment, health & safety indicators.

Country

Address

Legal Entity nameThailand719 KPN Tower, floor 16 & 25, Rama 9 Road, Bangkapi Huaykwang,
Bangkok 10310

Givaudan (Thailand) Ltd

Bangkok Business Centre Building, 19 floor, Unit 1903, 29
Sukhumvit 63 Road, Klongton Nua,Wattana, Bangkok 10110

Naturex AG

25 Bangkok Insurance Building, 23rd Floor, Sathon Tai Road, Kwang
Thung Maha Mek, Khet Sathon, Bangkok 10120

Expressions Parfumées

Ebulula Cad. Lale Sok., Park Maya Sitesi Barclay 19A Daire 6 – 7,
Akatlar, Besiktas / Istanbul 34335

Givaudan Aroma ve Esans Sanayi ve
Ticaret Ltd. SirketiR

Büyükdere Cad. Telpa Plaza., no. 195 K.3, Levent, Istanbul 34394

Givaudan Aroma ve Esans Sanayi ve
Ticaret Ltd. Sirketi

R P

ms. cise osmanoglu, Istanbul

drom fragrances GmbH & Co. KG

Edin&Suner Plaza, Meydan sok n°14/2B, 34335 Akatlar Istanbul

Expressions Parfumées, Turkey Liason
OfficeConcord Tower, floor 20 & 36, Media City, Dubai

Givaudan Gulf Trading LLC

Jafza Views 18, Office NO LB180502, PO Box 33170, Jebel Ali, Dubai

Givaudan Middle East & Africa FZE

Building P6 – 132, Post Box – 121873, SAIF Zone, Sharjah

Naturex S.A (Middle East)

Hamsa-A Bldg, Office 210, Khalid Bin Al Waleed St., Dubai

Expressions Parfumées

Magna House, 76 – 80 Church Street, Staines, Middx. TW18 4XRGivaudan UK Ltd

Chippenham Drive, Kingston, Milton Keynes MK10 OAEGivaudan UK Ltd

Kennington Road, Ashford, Kent TN24 0LT

Givaudan UK Ltd

Eton Hill Industrial Estate, Eton Hill Road, Radcliffe,
Greater Manchester M26 2FR

Fragrance Oils (International) Ltd

Higham Business Park, Bury Close, Higham Ferrers,
Rushden NN10 8HQ

Major International Limited

Park Road, Overseal, Swadlincote, Derbyshire DE12 6JXNaturex Ltd

Sealand Road, Sealand Industrial Estate, Chester, England CH1 4LP

Ungerer Ltd

Pimonenko Str. 13 6B/18, 04050 Kiev

Givaudan International SA,
Representative OfficethTurkeyUAE

UnitedKingdomUkraineGivaudan – 2020 Integrated Annual Report

R P

R P
R
R
R P
P P P
P
P
P
P
P
R

Legal Entity name

UnitedStates ofAmerica

880 West Thorndale Avenue, Itasca, IL 60143

Givaudan Flavors Corporation

580 Tollgate Road, Suite A, Elgin, IL 60123

Givaudan Flavors Corporation

1199 Edison Drive 1 – 2, Cincinnati, OH 45216

Givaudan Flavors Corporation

245 Merry Lane, East Hanover, NJ 07936

Givaudan Flavors Corporation

9500 Sam Neace Drive, Florence, KY 41042

Givaudan Flavors Corporation

4705 U.S. Highway 92 East, Lakeland, FL 33801-3255

Givaudan Flavors Corporation

100 East 69th Street, Cincinnati, OH 45216

Givaudan Flavors Corporation

195 Alexandra Way, Carol Stream, IL 60188

Givaudan Flavors Corporation

6 Santa Fe Way, Cranbury, NJ 08512

Givaudan Flavors Corporation

256 Lackland Drive East, Middlesex, NJ 08846

Givaudan Flavors Corporation

808 ConAgra Drive, Omaha, NE 68102

Givaudan Flavors Corporation

895 Dove Street, Newport Beach, CA 92660

Naturex USA California

39 Pleasant Street – Sagamore, MA 02561

Naturex DBS

375 Huyler Street, South Hackensack, NJ 07606

Naturex Inc.

7400 S Narragansett Ave, Bedford Park, IL 60638

Vegetable Juices Inc

10000 Highway 55, Minneapolis, MN 55441

Activ International

International Trade Center, 300 Waterloo Valley Road,
Mount Olive, NJ 07828

Givaudan Fragrances Corporation

40 West 57 St. 11 and 17 floors, New York, NY 10019

Givaudan Fragrances Corporation

717 Ridgedale Avenue, East Hanover, NJ 07936

Givaudan Fragrances Corporation

5 Jacksonville Road, Towaco, New Jersey 7082

Fine Fragrance Studio - dromfragrances, Inc. USA

144 Duane Street, NewYork, New York 10013

drom fragrances, Inc. USA

110 North Commerce Way, Bethlehem, PA 18017

Ungerer & Company

4 Ungerer Way, Lincoln Park, New Jersey 07035

Ungerer & Company

Léman Luxury Building, 6th Floor, 117 Nguyen Dinh Chieu St.,
Dist. 3,, Ho Chi Minh City

Givaudan Singapore Pte Ltd,
Vietnam Representative Office

31 Road No.8, Vietnam-Singapore Industrial Park , Binh Dang
Quarter, Binh Hoa Ward , Thuan An Town, Binh Duong Province

Golden Frog Flavour-Fragrance
Manufacture Company Ltd

VSIP II-A, Road no 31, Vietnam-Singapore II-A Industrial Zone,
Vinh Tan Commune, Tan U yenTown, Binh Duong Province

Golden Frog Flavor-Fragrance
Manufacture Corporation - Branch 3

Tan Hoa Hamlet , Tan Hoi Dong Commune Chau Thanh District,Tien Giang Province

Branch of Golden Frog FlavorFragrance Manufacture CorporationthVietnam

th

th

121

Creation &application

AddressGRI Scope ¹

Country

Production

Givaudan sites worldwide

Business
activity

Appendix

P P
R P
P P
P P P
P P
P P
P P
P P
P P
P R
R
P
P
P
P P
R P
R P
P
P
P
P
R P
P
P

Givaudan – 2020 Integrated Annual Report

122

AppendixPartnerships

Partnerships
We engage in numerous external initiatives and strategic
collaborations with relevant organisations and partners to
support and inform our work on the most material sustainability
issues. Collaboration is essential; the more we do together, thequicker we drive sustainable solutions.

Key partnerships
COMMITMENTS
What we want to achieve
CEO
WATER
MANDATEMEMBERSHIPS AND
COLLABORATIONSWith whom we partner toachieve our commitments

Givaudan – 2020 Integrated Annual Report

REPORTING

How we communicate
about our progress

ASSESSMENTS
AND RATINGS

External evaluationof our performanceAppendix

Reporting frameworks 123

Reporting frameworks
Global Reporting Initiative (GRI)
Givaudan prepares its sustainability reporting in accordancewith the GRI Standards, Core option. For the 2020 reporting
period we have transitioned to the newly required 2018
standards version for GRI 303 Water and effluents and GRI 403
Occupational health and safety, and voluntarily as an earlyadopter already to the 2020 standards version of GRI 306
Waste. All other standards versions used date from 2016.
The most important sustainability information, including
information about stakeholder engagement and material topics

is integrated in our Annual Report. The complete set and detailsof our selected GRI disclosures, the GRI Content Index and theexternal assurance statement can be found in the 2020 GRI
Sustainability Report. The reporting period for our environmental
data is from Q4 2019 to Q3 2020. Our different reports and thewebsite are closely connected and reference between each other.
All are published at the same time end of January 2021.
READ MORE
www.givaudan.com ▸ Publications ▸ 2020 GRI Sustainability Report

International Integrated Reporting
Framework (<IR>)
Givaudan bases its integrated reporting on the framework
published by the International Integrated Reporting Council (IIRC)
and takes the following guiding principles and content elements
into account.
Guiding principles

Location / information

Strategic focus and future orientation

Integrated Annual Report pages 4 – 29

Connectivity of information

Throughout the Integrated Annual Report, especially pages 18 – 19

Stakeholder relationships

Integrated Annual Report pages 26 – 27, GRI Sustainability Report pages 21 – 23

Materiality

Integrated Annual Report pages 28 – 29, GRI Sustainability Report pages 24 – 29

Conciseness

The Integrated Annual Report outlines the key information for the Company’s value creation.
Additional details can be found in the complementary reports. A Highlights reportsummarizes the main takeaways from the Integrated Annual Report.

Reliability and completenessCompleteness is sought through the application of a materiality approach. Reliability is
granted through internal audits and the external assurance of our financial and non-financial
information.

Consistency and comparability

The content of our reporting suite is presented in a consistent and comparable way throughclear navigation, multiple year overviews and links and references to relevant pages,
documents or online information.

Content elements

Organisational overview and external
environment

Integrated Annual Report pages cover flap, 10 – 25, 112 – 113;GRI Sustainability Report pages 6 – 14

GovernanceIntegrated Annual Report pages 102–106;
Governance, Compensation and Financial Report pages 4 – 21

Business model
Risks and opportunities

Integrated Annual Report pages 18 – 19
Integrated Annual Report pages 20 – 23; www.givaudan.com/our company/corporate
governance/ risk management
Governance, Compensation and Financial Report pages 54 – 63

Strategy and resource allocation

Integrated Annual Report pages 10 – 17

Performance

Integrated Annual Report pages cover flap, 10–17, 32–93

OutlookBasis of presentation

Integrated Annual Report pages 6 – 9, 16 – 17, 34 – 35, 50, 62 – 67, 76 – 78, 88 – 91
Integrated Annual Report pages 26 – 29, GRI Sustainability Report pages 21 – 29

Givaudan – 2020 Integrated Annual Report124

Appendix

Reporting frameworks

Sustainable Development Goals (SDGs)
Givaudan embraces its role as a corporate leader in global efforts
to safeguard the future of the planet, meeting today’s needs
without compromising the interests of future generations. The
SDGs designed by the UN guide us in making positive impacts on
the environment and wider society, helping us secure ourbusiness future.

We actively support the delivery of those SDGs where webelieve can make the greatest impact and so focus on 10 of the
17 global goals.

Goal 2: End hunger, achieve food security andimproved nutrition and promote sustainableagriculture

Goal 9: Ensure sustainable consumption andproduction pattern

Goal 3: Ensure healthy lives and promote
well-being for all at all ages

Goal 12: Build resilient infrastructure,promote sustainable industrialization andfoster innovation

Goal 5: Achieve gender equality and empower
all women and girls

Goal 13: Take urgent action to combat climatechange and its impacts

Goal 6: Ensure access to water andsanitation for all

Goal 15: Sustainably manage forests, combat
desertification, halt and reverse land degradation,
halt biodiversity loss

Goal 8: Promote inclusive and sustainableeconomic growth, employment and decent
work for all

Goal 17: Revitalize the global partnership forsustainable development

United Nations Global Compact (UNGC)
Givaudan adheres to the 10 principles of the UNGC in its
business practices, comprising the four areas of human rights,
labour standards, environment and anti-corruption.

Principle 4: The elimination of all forms of forced andcompulsory labour
Principle 5: The effective abolition of child labour

Our sustainability reporting sets the basis for ourannual Communication on Progress (CoP).

Human rights

Principle 1: Businesses should support and respect theprotection of internationally proclaimed human rights
Principle 2: Make sure that they are not complicit in humanrights abusesLabourPrinciple 3: Businesses should uphold the freedom of
association and the effective recognition of the right tocollective bargaining

Givaudan – 2020 Integrated Annual Report

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 ofenvironmentally friendly technologies

Anti-corruption

Principle 10: Businesses should work against corruption in allits forms, including extortion and bribery

Appendix

Glossary

125

Glossary
Business modelGivaudan’s chosen system of transforming inputs, through its
business activities, into outputs and outcomes that aims to fulfil
the Company’s strategic purpose and create value over the
short-, medium- and long-term.

Earnings per share
Earnings per share are calculated by dividing the Group result
attributable to the shareholders of Givaudan SA by the weighted
average of the number of shares outstanding during thereporting period.

Capitals
Capitals are stocks of value that are increased, decreased ortransformed by the activities and outputs of an organisation.
Givaudan has identified six kinds of capitals that feed its value
chain: Financial capital, Our innovation capabilities (intellectual
capital), Our people & culture (Human capital), Sourcing(Natural capital) , Operations (Manufactured capital) and Good
governance (Social and relationship capital).

EBITDA
Defined as Earnings Before Interest (and other financial income(expense), net), Tax, Depreciation and Amortisation, corresponds tooperating income before depreciation, amortisation and impairmentof long-lived assets. See page 113 in the 2019 Financial report.

CDP
Formerly known as Carbon Disclosure Project, CDP possesses
the world’s most comprehensive collection of environmental
data from companies, organisations and governments andevaluates this data systematically for investors.
Climate positive
Givaudan’s commitment to do more than reducing or eveneliminating emissions: the Company will also develop initiatives
to remove carbon from the atmosphere.
Communication on Progress (COP)The UN Global Compact requires participating companies to
produce an annual COP that details their work to embed theTen Principles into their strategies and operations, as well as
efforts to support societal priorities.
Convention on Biological Diversity (CBD)The Convention on Biological Diversity is a multilateral treaty
with three main goals: the conservation of biological diversity (orbiodiversity); the sustainable use of its components; and the fairand equitable sharing of benefits arising from genetic resources.
Delivering with excellence
Second pillar of Givaudan’s 2020 strategy ‘Responsible growth.
Shared success.’ Embracing a mindset of excellence in execution
and incorporate it into all processes, services and businessprocesses to deliver a superior customer experience.

EcoVadis
EcoVadis aims at improving environmental and social practicesof companies by leveraging the influence of global supply
chains. EcoVadis’ reliable ratings and easy-to-use monitoring
tools allow companies to manage risks and drive ecoinnovations in their global supply chains.
Enterprise Risk Management (ERM)
The process of assessing, treating and monitoring the effects ofuncertainty that may affect the achievement of Givaudan’s
objectives, especially its publicly stated strategic objectives, or
jeopardise Givaudan’s long-term business success.
Free Cash Flow (FCF)
FCF refers to operating cash flow after net investments, interest
paid and lease payments. Free cash flow allows companies topay dividends or buy back shares.
GHG emissions
Greenhouse Gas emissions.
GHG emissions scope 1
Direct emissions from sources owned or controlled by Givaudan.
GHG emissions scope 2
Energy indirect emissions resulting from the generation ofenergy that Givaudan purchases, such as electricity.
GHG emissions scope 3
Other indirect emissions that relate to the emissions produced
by Givaudan's entire value chain.

Givaudan – 2020 Integrated Annual Report

126

Appendix Glossary

Givaudan Business Solutions (GBS)
Implemented in 2017, GBS is the foundation of Givaudan’scommitment to deliver with excellence and is designed to
improve internal efficiencies, leverage best practices from acrossthe organisation and increase the Company’s agility.
Global Reporting Initiative (GRI)
A non-profit organisation that has developed the most widelyused frameworks for the creation of sustainability reports.
GRI Standards
The latest version of frameworks for sustainability reporting
issued by GRI in 2016. Givaudan prepares its sustainability
reporting in accordance with the GRI Standards, core option.
Growing with our customers
First pillar of Givaudan’s 2020 strategy ‘Responsible growth.
Shared success.’ It consists of focusing resources in further
building the Company’s presence in high growth markets,
capturing growth from consumer preferred products, targeting
demands for health and well-being, and looking beyond its coreflavours and fragrances to integrated solutions that enhance
the Company’s value proposition to its customers and create
new avenues for growth.
Integrated Reporting
An integrated report is a concise communication about how anorganisation’s strategy, governance, performance and prospects,
in the context of its external environment, lead to the creation ofvalue in the short, medium and long term. The Integrated
Reporting Framework is proposed by the International Integrated
Reporting Council (IIRC).
International Fragrance Association (IFRA)
IFRA is the global representative body of the fragrance industry.
It seeks to represent the collective interests of the industry andpromote the safe use of fragrances.
International Organization of the Flavor Industry (IOFI)IOFI is the global association representing the industry thatcreates, produces and sells flavourings worldwide.
Lost Time Injury (LTI)
LTI refers to the number of accidents on the job involving an
absence from the workplace for a minimum of one day.
Lost Time Injury Rate (LTIR)
LTIR is the measure of the number of occupational incidents withat least one day of work lost relative to 200,000 hours of work.

Givaudan – 2020 Integrated Annual ReportMarket capitalisation
Share price on the reporting date multiplied by the number ofshares issued.
Materiality
This is a fundamental principle commonly used for defining
report content. In the GRI Standards, material topics for acompany are those that can significantly influence theassessments and decisions of stakeholders, or have a significant
impact on the economy, environment or society. This defines acompany’s sustainability strategy and therefore its sustainability
reporting. In Integrated Reporting, material topics are thosethat substantively affect the organisation’s ability to create
value over the short, medium, or long term. In financial
reporting it determines the topics that influence stakeholders’assessments and decisions if omitted or misstated.
Ordinance against Excessive Compensation at Listed Stock
Companies (OaEC)
The provisions of this Ordinance apply to joint-stock companies
pursuant to Articles 620 – 762 of the Swiss Code of Obligations(OR) whose shares are listed on a stock exchange in Switzerland
or abroad. The Ordinance allows companies to specify theamount of additional remuneration that could be paid to any
member of executive management who joins after theshareholder resolution on aggregate remuneration.
Partnering for shared success
Third pillar of Givaudan’s 2020 strategy ‘Responsible growth.
Shared success.’ It comprises continuing its industry-leading
investment and strategic partnerships as innovators, fostering
a great place to work for its people, strengthening thecollaboration with suppliers by optimally managing supply risks
and costs and enhancing responsible sourcing practices, andtaking responsibility for its impact on the environment and thecommunities in which it operates.
RE100 initiative
RE100 is a collaborative, global initiative uniting more than
100 influential businesses committed to 100% renewableelectricity, working to massively increase demand for – anddelivery of – renewable energy.
Responsible growth. Shared success.
Givaudan’s five-year 2020 strategy announced in 2015. Its threepillars are ‘Growing with our customers’, ‘Delivering withexcellence’ and ‘Partnering for shared success’. Ambitious
targets to be achieved over the five-year period are related tothem: an average organic sales growth of 4 – 5%, an average
free cash flow as % of sales of 12 – 17% and the ambition to be
the partner of choice.

Appendix

Responsible Sourcing Policy
The Responsible Sourcing Policy is a code of conduct for Givaudan’s
suppliers that requires them to adhere to the same high ethicalstandards. It was launched in 2016 and was the first in the industry.
Restricted Share Units (RSUs)
An RSU offers employees the prospect of acquiring a certain
number of shares at a later date, either in return for payment oron preferential terms. RSUs are subject to a vesting clause.
Between allocation and vesting, RSUs are therefore considered
as entitlements to employee shares. They are subject to one ormore conditions precedent during the vesting period and are
therefore not irrevocably vested until the vesting date if theconditions are met.

Glossary

127

United Nations Global Compact (UNGC)
The UNGC is a strategic policy initiative for businesses that arecommitted to aligning their operations and strategies with
10 universally accepted principles in the areas of human rights,
labour, environment and anti-corruption.
Value Creation
Fundamental concept of Integrated Reporting. Value created by
a company over time manifests itself in increases, decreases ortransformations of the capitals caused by the company’sbusiness activities and outputs. Value is created both for theorganisation itself and other stakeholders.

Science Based Targets (SBTs)
The Science Based Targets initiative is a collaboration between
CDP, the United Nations Global Compact (UNGC), World
Resources Institute (WRI), and the World Wide Fund for Nature(WWF), and is one of the We Mean Business Coalitioncommitments. The initiative enables companies to set targets
in line with the Paris Agreement of limiting global warming to a
maximum of 2°C and transitioning to a low-carbon economy.
Sedex Members Ethical Trade Audit (SMETA)SMETA is an audit methodology that provides a compilation ofbest practice ethical audit techniques. It is designed to help
auditors conduct high quality audits that encompass all aspectsof responsible business practice, covering Sedex’s four pillars ofLabour, Health and Safety, Environment and Business Ethics.
Supplier Ethical Data Exchange (Sedex)
Sedex is a not-for-profit membership organisation dedicated todriving improvements in responsible and ethical businesspractices in global supply chains. Givaudan engages with Sedex
both for the assessment of its production sites and for theassessment of its suppliers.
Sustainable Development Goals (SDGs)
The SDGs are a set of 17 global goals defined by the United
Nations in 2016 to replace the Millennium Development Goals(MDGs). The goals comprise several sub-targets and indicators tomeasure progress and are to be met by 2030. Nations andbusinesses are called to action to end poverty, protect the planet
and ensure that all people enjoy peace and prosperity. Swiss
Code of Best Practice for Corporate Governance The ’Swiss Code’issued by economiesuisse in 2006 provides guidelines andrecommendations for good governance in public companies.
Total shareholder return (TSR)
Total return of a stock, including change in stock price andshareholder distributions.

Givaudan – 2020 Integrated Annual Report

128

Appendix

Our reporting suite

Our reporting suite
The 2020 Integrated Annual Reportoffers a holistic explanation of ourvalue creation, financial and nonfinancial capitals and performance.

diversity in the workplace, anti-corruption and human rights.
Our website hosts the online Integrated Annual Report.
Readers are advised to consult our entire reporting suite to get
a complete overview.

The full Governance, Compensation and Financial reports areavailable in one PDF. The GRI Sustainability Report features
disclosures on a wide range of topics such as energy use,

The full suite can be found on:
www.givaudan.com ▸ Investors ▸ Online integrated annual
report ▸ Download centre

To order publications:www.givaudan.com ▸ Media ▸ Publications

Online version

2020 Integrated
Annual Report

AVAILABLE IN ENGLISH

AVAILABLE IN ENGLISH

from 29 January 2021

PDF from 29 January 2021
Print from 25 March 2021

2020 GRI Sustainability
ReportAVAILABLE IN ENGLISH

2020 Integrated
Annual Report
Highlights

PDF from 29 January 2021

AVAILABLE IN ENGLISH,

AVAILABLE IN ENGLISHFRENCH AND GERMANPDF from 29 January 2021

PDF in English from 29 January 2021
Print and language versions
from 25 March 2021

Givaudan – 2020 Integrated Annual Report2020 Governance,
Compensation and
Financial ReportGivaudan SA
Chemin de la Parfumerie 51214 Vernier, Switzerland

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T + 41 22 780 90 53

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T + 41 62 205 77 00

Share information
Symbol: GIVN
Security number: 1064593
ISIN: CH0010645932

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The 2020 Integrated Annual Report is published in English.
All trademarks mentioned enjoy legal protection.
Printed in Switzerland by Neidhart + Schön Print AG, www.nsgroup.ch
This report may contain forward-looking information. Such information is subject toa variety of significant uncertainties, including scientific, business, economic andfinancial factors. Therefore actual results may differ significantly from those presented
in such forward-looking statements. Investors must not rely on this information forinvestment decisions.
Picture credits: Givaudan, Getty Images, iStockphoto.
© Givaudan SA, 2021

www.givaudan.com