Integrated
AnnualReportGROWING 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

Highlights

About Givaudan

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

TASTE & WELLBEING

Going beyond great taste tocreate food experiencesthat do good and feel good
– for body, mind and planet.

Givaudan – 2020 Integrated Annual Report Highlights

With our heritage stretching back over 250 years, we have a long
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 purposeled, long-term growth with the intention of increasing ourpositive impact on the world by innovating sustainable solutions
while showing our love for nature and leading the way to improvehappiness and health for people.
The Company has two business activities, Taste & Wellbeing and
Fragrance & Beauty, reflecting Givaudan’s purpose of creating forhappier, 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 co-creation partner of choice to
our customers.

FRAGRANCE & BEAUTY

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

Table of contents 1

Table of contents
19 26

STRATEGY
2
Introduction
4
Highlights 2020
6
Delivering on our 2020 ambitions
8
Achievements 2016–2020
11 Value creation through acquisitions
12	Creating future value through our purpose
13 Our 2025 strategy
14 Creating and sharing sustainable value
16	Board of Directors
17 Executive Committee

36

CREATIONS
18 Highlights
19 The fishless wave
21	Ensuring sustainability for the future of perfumery

NATURE
24 Highlights
26	Putting our ingredients under the
microscope as part of our climate action

PEOPLE
28 Highlights
29	Reaching new heights: LTI-free sites set the pace
30 Caring for our people during the crisis

COMMUNITIES
34 Highlights
36 15,852 employees as a force for good
38 Key figures
THIS HIGHLIGHTS REPORT OFFERS ASYNTHESIS OF ALL OUR OTHER REPORTS.
See Our reporting suite ▸ page 39

30
Givaudan – 2020 Integrated Annual Report Highlights

2Strategy Introduction

Navigating throughan extraordinary year
CALVIN GRIEDER
I am very proud of our accomplishments over the last five
years, particularly when faced with the difficult
circumstances of 2020. We remained resilient, deliveringon all the ambitions under our 2020 strategy while
ensuring we kept our employees safe and well. Our new
2025 strategy ‘Committed to growth, with purpose’ will
ensure we continue to create sustainable value for all our
stakeholders while advancing towards our purpose
ambitions in the areas of creations, nature, people andcommunities. My heartfelt thanks and gratitude go to myfellow members of the Board, the Executive Committee
and all our employees for their hard work anddedication, especially after such a testing year. It istheir contribution and passion that makes
Givaudan a unique place to work. Finally, I would
like to share my thanks to our shareholders foryour trust and continuing support.

Our accomplishments,
resilience and ability
to keep employees safe
give me great pride.
Calvin Grieder, Chairman

COVID-19

Our purpose at the heart of our response
Throughout the COVID-19
pandemic, Givaudan has
played a critical role in sustaining
the global supply chain in foodand beverage as well as inhousehold, health and personalcare products.
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 for happier,healthier lives with love fornature, let's imagine together.
Ensuring we can still deliver

these essential products, while
also protecting our people, hasguided our crisis response.
Our global crisis teamworked around the clock toensure we kept our employees
safe, our customers served andthe business running as normallyas possible in the circumstances.
From the outset of the COVID-19
pandemic we have followed
government advice and WHO
guidelines and implemented
comprehensive measures toprotect our colleagues.
We completely and rapidly

Givaudan – 2020 Integrated Annual Report Highlights

changed the way we worked.
Our office-based employees
moved to home working and weadopted key measures andpractices to protect all our
employees’ health, safety andwellbeing. It required an
extraordinary effort from our
production and supply chain
colleagues to ensure we could
continue meet the increasing
demand for essential products.
As a responsible andpurpose-led business, we also
recognised the enormous impact
the pandemic had on vulnerable

communities without theresources needed. We establisheda COVID-19 community fund toenable our sites to support local
communities that had been
affected by the pandemic; at least
CHF 1 million was distributed
to over 130 communities
worldwide. We also adapted
our production to increase theamount of hand sanitiser, notonly for our employees but also
for local health, community andfront-line services who were in
critical need of it.
We are proud that, throughStrategy Introduction 3

READ MORE
2020 Integrated Annual Report ▸ pages 4 – 9 ▸ Chairman
introduction and CEO interview
2020 GRI Sustainability Report ▸ page 3 ▸ Statement from our
Head of Global Procurement and Sustainability

GILLES ANDRIERWILLEM MUTSAERTS

The dedication of the entire Givaudan organisation
during this challenging year enabled us tocontinue to support customers in keeping criticalproducts available throughout the COVID-19 crisis.
Overnight, we completely changed the way weworked and the business showed its agility andability to adapt quickly.

Our people are the successful
driving force behind ourcommitment to purpose-led,sustainable growth.

As CEO of such a company, I have so much to
be proud of. The year was also the final oneof our 2020 strategy and we once again
achieved the financial ambitions we
set and showed our ability todeliver industry leading,purpose-led growth.
I am really excited about startingout on our next five-year
cycle, a strategy that will guide
us in continuing to deliver
sustainable value creation for
all stakeholders and allow us
to act as a force for good in
the world.
close collaboration withour customers and with theresilience that has been
demonstrated across the
supply chain, we have helped
to ensure product availability,
even when demand soared.
And as the crisis evolves,
we will continue to put employee
wellbeing at the heart ofeverything we do. We are so
grateful for all the hard workfrom team members aroundthe world who continue toplay their part in our collective
response to this crisis.

Willem Mutsaerts, Head of Global Procurement
and Sustainability
Our people have played – and continue
to play – a central role in actions to meet our
ambitious goals in becoming a sustainable
company, goals which can only be reachedthrough their continued engagement and passion
about our work and commitment to creating asustainable society. I am so pleased by the way
they have embraced our purpose of ‘Creating forhappier, healthier lives with love for nature’, into
which is woven our sustainability approach. They
know that sustainability is a part of everything
we do and helps us to be a successful, responsible
company. While there is still much work to bedone, all of us in Givaudan are committed todriving purpose-led, sustainable growth and tocreating a sustainable society.

Despite the year’s
challenges, thededication of theentire Givaudan
organisation
is cause formuch pride.
Gilles Andrier, CEO

Givaudan – 2020 Integrated Annual Report Highlights

Strategy Highlights 2020

Highlights

4

During 2020, the impact of covid-19
became global. The Givaudan
purpose was at the heart of our
response to the pandemic as we
focused on supporting our employees
and communities and on
maintaining our operations andglobal supply chain.
RECOGNITION

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

Committed to B Corp Certification, the gold
standard for good business.

CDP double 'A' rating for climate action and water
stewardship for the second consecutive year.

CDP leader board recognition for
supplier engagement.

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%.

Givaudan – 2020 Integrated Annual Report Highlights

Strategy Highlights 2020

Strategy
SUCCESSFULLYDELIVERED

SALES
CHF
million

6,322

FREE CASH
FLOW
CHF
million

811

WOMEN IN SENIORMANAGEMENTAVERAGE 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 SALESPROPOSED DIVIDENDPER SHARE ²

12.8%

CHF

RENEWABLE
ELECTRICITY

GHG EMISSIONSSCOPE 1 + 2 ³

64.00

81%

–

SEDEX COMPLIANCE RATEOF AUDITED SUPPLIERS

REDUCTION OF LOST TIME
INJURIES SINCE 2009 ⁴

GHG EMISSIONSSCOPE 3 ³

–

+

76%

performance

22.1%

25%

85%

2020

30%

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).

11%

2020

20162020

5

Givaudan – 2020 Integrated Annual Report Highlights

6 Strategy 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
Free cash flow in millions of Swiss francs% of sales

POSITION IN FINEFRAGRANCE WITH A
2016 – 2020 SALES CAGR
OF 4.7%BEAUTY AND ALTERNATIVEPROTEINS, EACH

CHF
millionGivaudan – 2020 Integrated Annual Report Highlights

100

10,476in salesto

IN HEALTH & WELLBEING
ACHIEVED SALES OF
CHF 1 BILLION AND A
CAGR
of

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

7

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 andwell-being

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 Highlights

Strategy Achievements 2016 – 2020

Achievements

2016–2020

8

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 Highlights

Strategy Achievements 2016 – 2020 9

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 Highlights

Strategy Achievements 2016 – 2020

Achievements

2016–202010

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 Highlights

Strategy Value creation through acquisitions 11

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
Solutions▸▸ Naturex▸▸ Expressions
Parfumées▸▸ drom▸▸ Fragrance Oils▸▸ Ungerer▸▸ Spicetec▸▸ Vika▸▸ Activ International

Ingredients▸▸ 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 Highlights

12Strategy 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 to happier,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
BEFORE 2030
BEFORE 2040
BEFORE 2050

Our operations’ carbon emissions will be cut by 70% and our supply chain
emissions by 20%. (2015 baseline)
We will replace single-use plastics with eco-friendly alternatives across oursites and operations. (Baseline in process of setting)
Our operations’ will be climate positive and our supply chain emissions will
be cut by 50%. (Baseline 2015)
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
BEFORE 2025
BEFORE 2025

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

BEFORE 2030
BEFORE 2030

50% of our senior leaders will be from high growth markets. (2018 baseline)
50% of our senior leadership will be women. (2018 baseline)

Communities

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

Givaudan – 2020 Integrated Annual Report Highlights

BY 2030
BY 2030

We will source all materials and services in a way that protects people andthe environment. (Baseline is in progress of setting)
We will improve the lives of millions of people in communities where wesource and operate. (Baseline is in progress of setting)Strategy Our 2025 strategy 13

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 forhappier, 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 our 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 Highlights

14

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 Highlights

STRATEGY

GOVERNANCE

MANAGEMENT

Strategy Creating and sharing sustainable value 15

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

85%

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 Highlights

16

Strategy Board of Directors

Board of Directors
The Board of Directors consists of nine Board members, headed
by our Chairman Calvin Grieder and currently comprises six men
and three 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

Calvin Grieder

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 another board beforehand and avoid being over-boarded.

Prof. Dr-Ing.
Werner Bauer

CHAIRMANEngineer / Swissnational, born in1955 in the USA /Non-executive /First elected in 2014 /Chairman since 2017

Olivier Filliol

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

VICE-CHAIRMAN

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

Victor Balli

Lilian Biner

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

Michael Carlos

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

Givaudan – 2020 Integrated Annual Report Highlights

Businesswoman /Swedish national,
born in 1962 /Non-executive /First elected 2011

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

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

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

Strategy Executive Committee

17

Executive Committee
The Executive Committee is composed of seven members under
the leadership of Gilles Andrier, Chief Executive Officer andconsists of six men and one woman, representing six
nationalities. Dedicated to the overall day-to-day managementof Givaudan, each Executive Committee member capitalises on

Gilles Andrier

Tom Hallam

French national,
born in 1961 /Appointed in 2005

British and Swissnational, born in1966 / Appointed
in 2017

CHIEF EXECUTIVEOFFICERan 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 the longest-standing CEOs in the industry,
being in office since 2005.

CHIEF 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 &WELLBEINGPRESIDENTFRAGRANCE &BEAUTY

Willem Mutsaerts
HEAD OF GLOBALPROCUREMENT ANDSUSTAINABILITY

Dutch national,
born in 1962 /Appointed in 2015

HEAD OF GLOBALHUMAN RESOURCES
AND EHSAnne Tayac
HEAD OFGIVAUDAN
BUSINESSSOLUTIONS

French national,
born in 1968 /Appointed in 2016

Givaudan – 2020 Integrated Annual Report Highlights

Creations

18

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

The Givaudan purpose of creating for happier,healthier lives is a strategic guide so our creations
and innovations can contribute to the overall
wellbeing of the end-consumer, directly or
indirectly. Co-creation and collaboration withcustomers and partners enable us to innovateand develop game-changing products and solutions
that shape worlds of taste, nourishment, scentand beauty. Innovative partnerships are crucial
in driving business growth and ensuring asustainable future. Through supplier-enabledinnovation we can increase our intellectual
resources and innovation momentum.
We will double our business through creations that contribute to happier, healthier lives
AMBITION
BY 2030CHF

ACHIEVEDIN 2020

billion in sales

United Nations Sustainable Development Goals (SDGs)

Givaudan – 2020 Integrated Annual Report Highlights

CHF

6,3

billion in sales

Creations The fishless wave

19

The
fishless

wave
Plant-based fish and seafood
are expected to become a top
global trend, according toresearch conducted by
Givaudan, in collaboration
with the University ofCalifornia, 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 Highlights

20

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.
future-facing food experience. If you think about cooking meat,
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,

Givaudan – 2020 Integrated Annual Report Highlights

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

21

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 Highlights

22 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 Highlights

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.

23

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 Highlights

Nature24

Let’s imagine together that
we show our love for naturein everything we do.
OUR ROADMAPTO GET TO
CLIMATE POSITIVE

Examplesof actions

Our ambitions

Scope 1 + 2

Renewable
electricity

30% 81%+2,000,000

Formulation, innovation,
supplier improvements,
ingredient portfolio,
mobility solutions,packaging, transportation,
reducing air travel and air
travel emissions offsetting
Renewable electricity:
solar, wind, geothermic
Eliminate: coal, fuel,natural gas–

Our achievements

11%

Renewable
electricity

Scope 3

100%

2030

70%
– 20%
–

SCOPE 3

Scope 1 + 2

Scope 3200,000
SCOPE 2100,000
Renewable energy: Bio-Gas
certificates, convert boilers
SCOPE 1
to biomass, electrification
Eliminate: coal, fuel, natural gas
02009
Carbon storage
solutions: planting trees,carbon capture in soils,
CO₂eecosystem restoration-100,000 (tonnes)

2015
Baseline

2020
TODAY

2025

The climate crisis highlights an urgent need to accelerateaction. We are proud to be on the journey towards being
climate positive and to be working with our teams,
customers, suppliers and partners to help realise this bold
ambition. Being climate positive means going beyond netzero: removing more greenhouse gases (GHG) from theatmosphere than we put in. To achieve this, we need totackle our GHG emissions throughout our supply chain.
Our targets are aligned with the Science Based Targets
Initiative and the UN's Business Ambition for 1.5°C.
Givaudan – 2020 Integrated Annual Report Highlights

25

100%
– 50%
–

Scope 1 + 2

Baseline scope 3

Scope 3We 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

Net GHG
emissions

Our RE100 commitment of 100% renewable electricity ¹
Baseline scope 1 + 2

Climatepositive(scope 1, 2 + 3)
before 2050

2040
Carbon storage(Clean compensation & insetting)

AMBITION
BEFORE 2030

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

2050

AMBITION
BEFORE 2025%

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

United Nations Sustainable Development Goals (SDGs)

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 Highlights

26

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 Highlights

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.”

27

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 Highlights

People28

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

We are best equipped to achieve our businessgoals through a sense of unity and a workplace
where all our employees love to be and grow.
AMBITION
BEFORE 2025

We will reduce ourtotal recordable
injuries cases by 50%.

AMBITION
BEFORE 2025

We will improve how we care for all of our people byoffering everyone on our sites access to mental andphysical health initiatives, tools and training.

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%

Senior leaders from high growth markets
AMBITION
BEFORE 2030

%

33%
women

67%

men

ACHIEVEDIN 2020

25%

United Nations Sustainable
Development Goals (SDGs)

Givaudan – 2020 Integrated Annual Report Highlights

Board members: 9

Executive Committee members: 7

86%
men

14%
women

PeopleReaching new heights: LTI-free sites set the pace 29

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 ourachievements across our sites around the world 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 from different 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 Highlights

30

PeopleCaring for our people during the crisis

Givaudan – 2020 Integrated Annual Report Highlights

PeopleCaring for our people during the crisis

31

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 Highlights

32 People

Caring 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 Highlights

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

PeopleCaring for our people during the crisis

33

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.

and understand people’s needs. People were encouraged totake 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 Highlights

Communities

34

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

As a global business, we seek to develop and maintaina strong network of suppliers to respond to increased
consumer demand for more sustainable, healthierand differentiated products.
We want to source materials in ways that preserve
the environment and stimulate the development andwellbeing of communities from which we source.

AMBITION
BY 2030

We will source all materials and services in a way that
protects people and the environment.

TOTAL NUMBER OF SIGNIFICANT
SUPPLIERS IDENTIFIEDKEY RAW MATERIAL SUPPLIERSREGISTERED WITH SEDEX

400

334

TOTAL PERCENTAGE OF SUPPLIERSASSESSED TO DATESUPPLIER COMPLIANCE RATE

82%

Givaudan – 2020 Integrated Annual Report Highlights

85%

35

It is important that we have a positive impact on thecommunities from where we source our raw materials
as well as on those around our factories and sites.
We can do this through local community
initiatives, by using the latest technologies tomanage our environmental impact on communities’air, water, and noise and odour aspects, and byworking with farmer communities to reduce theirfuelwood consumption in, for example, patchouli
and ylang ylang growing areas.

Employees havethe opportunity
to play a part insupporting local
communities
and our
producer
communities.

AMBITION
BY 2030

We will improve the lives of millions of people incommunities where we source and operate.

BENEFICIARIES OF COVID-19
COMMUNITY FUND

94,000

GREEN TEAM MEMBERS

500

United Nations Sustainable Development Goals (SDGs)

Givaudan – 2020 Integrated Annual Report Highlights

36

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 Report Highlights

lead, 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 37

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 Highlights

38 Key figures

Key figures
SUSTAINABLE PERFORMANCE REVIEWFor the year ended 31 December
In millions of Swiss francs, except for environmental 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%

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

Free cash flow

811

787

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)

3.0%

Environmental⁴

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%

1. EBITDA defined as Earnings Before Interest (and other financial income (expense), net), Tax, Depreciation and Amortisation,corresponds to operating income before depreciation, amortisation and impairment of long-lived assets.
2. The income is 100% attributable to equity holders of the parent.
3. 2020 dividend subject to shareholder approval at the AGM on 25 March 2021.
4. 2020 figures are for new 12-month reporting period: Q4 2019–Q3 2020.
5. Assured 2019 figures and restated 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 and landfill waste per tonne of production, compared to baseline year 2015.
Note: Like-for-like excludes the impact of currency, acquisitions and disposals.

Givaudan – 2020 Integrated Annual Report Highlights

5.9%

4.5%

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

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

General information
T + 41 22 780 91 11

Media and investor relations
T + 41 22 780 90 53

Share registry
Computershare Schweiz AG
Postfach
4601 Olten, Switzerland
T + 41 62 205 77 00

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

Concept, design, consulting and realisation:
PETRANIX Corporate and Financial Communications AG
www.PETRANIX.com
The 2020 Integrated Annual Report Highlights are published in English, French and German.
Translations by Lionbridge, www.lionbridge.com.
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