We Bring LifeTo Products™

2023
SUSTAINABILITY REPORTTable of Contents

INTRODUCTION

5LABOR & HUMAN RIGHTS

WELCOME STATEMENTTALENT ACQUISITION & ENGAGEMENTABOUT THIS REPORTEMPLOYEE BENEFITS & WELL-BEING–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––OUR BUSINESS

9WHO WE ARE

EMPLOYEE HEALTH & SAFETYLABOR & HUMAN RIGHTS RISK MANAGEMENT
SOCIAL RESPONSIBILITY & HUMAN RIGHTS POLICY

WHAT WE DO––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

WHAT WE VALUEPHILANTHROPY & COMMUNITY SERVICE–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––OUR COMMITMENT TO SUSTAINABILITY

59

15

MATERIALITY ASSESSMENT

79

THE SENSIENT FOUNDATIONSTRENGTHENING COMMUNITIESEDUCATING THE FUTURE

DISCLOSURE FRAMEWORKS & RATINGS–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––EMPOWERING WOMEN AROUND THE WORLDPILLAR ONE: DECARBONIZATION––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

21

CORPORATE GOVERNANCE,TARGETLEGAL COMPLIANCE, & RISK OVERSIGHT

STRATEGIES, INITIATIVES & PRIORITIESCORPORATE GOVERNANCE

2023 RESULTS–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––PILLAR TWO: WATER STEWARDSHIP

85

25

TARGETSLEGAL COMPLIANCERISK OVERSIGHTETHICSSTRATEGIES, INITIATIVES & PRIORITIES––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

2023 RESULTS

CLIMATE-RELATED GOVERNANCE–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––PILLAR THREE: WASTE REDUCTION

29

TARGET–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

33

WHERE WE WILL GO IN 2024 & BEYONDRESPONSIBLE SOURCING

APPENDICES–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––BIONUTRIENTS

105
107

––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––SUSTAINABLE AGRICULTURESENSIENT NATURAL INGREDIENTSCLIMATE-RELATED STRATEGY––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

SUPPLY CHAIN RISK MANAGEMENTPERSONAL CARE

CLIMATE-RELATED RISK MANAGEMENT

CLIMATE-RELATED METRICS & TARGETS

STRATEGIES, INITIATIVES & PRIORITIESSTRATEGIES, INITIATIVES & PRIORITIES

97––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––TARGETTARGET

MANAGEMENT OVERSIGHT
CLIMATE-RELATED RISKS & OPPORTUNITIES

2023 RESULTSPILLAR FIVE: SUSTAINABLE PRODUCT DESIGNBOARD OVERSIGHT––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––STRATEGIES, INITIATIVES & PRIORITIESPILLAR FOUR: SUSTAINABLE SUPPLY CHAIN

93

45

117

SUPPLEMENTAL ENVIRONMENTAL, SOCIAL& GOVERNANCE DATA
EEO-1 REPORTSASB DISCLOSURE TABLE
TCFD REPORTCONTACT US

INNOVATIONS FOR CONSUMER HEALTH

Sustainability Report | 2023

3

INTRODUCTION

Message from the CEO
Welcome to Sensient Technologies Corporation’s 2023 Sustainability Report
In this report, you will find annual highlights of our actions related

We continue our long-standing commitment to operating in a legal, ethical,

to our commitment to sustainability. All of our sustainability efforts

and responsible manner with a strong emphasis on corporate responsibility

remain grounded in our Corporate Creed:

and fostering sustainable business practices. We only make promises we• We always operate with integrity and we always tell the truth.

intend to keep. This Sustainability Report describes Sensient’s efforts to meet

• We do not harass, demonize, or marginalize each other.

and the communities in which we operate. We view sustainable businessWe are always professional and respectful to each other,our suppliers, and our customers.

• We do not operate recklessly or without regard to healthour commitments for our products, customers, employees, environment,
practices as an important aspect of Sensient’s long-term economic healthand core values, and we expect each employee to actively participate inand contribute to Sensient’s efforts. Moreover, as provided under Wisconsin
corporate law, our Board of Directors remains dedicated to considering theand safety. We make safe products in safe facilities andeffects of its actions on shareholders as well as our employees, suppliers,

strive to keep each other safe as well.

customers, and the communities in which we operate. While nothing ispossible without strong financial performance, consideration for all of our
stakeholders continues to be essential to our practices.
In 2023, our sustainability efforts were focused on the goals definedin our corporate sustainability strategy:• Reduce carbon intensity of scope 1 and scope 2 greenhousegas emissions by 30%• Reduce overall water withdrawal by 30%• Reduce water withdrawal intensity by 30% in areas categorized
as having high or extremely high water stress levels• Increase average landfill diversion to 75%• Collect auditable sustainability data and perform assessments on
the suppliers that represent between 75-90% of our total spend• Incorporate a sustainable design principles checklist into
100% of new product development projects by 2024

Paul Manning
Chairman, President, and Chief Executive Officer

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5

INTRODUCTION

About This Report

As I have outlined before, we face special challenges in our efforts to reduce

We engage with our power suppliers as well as OEMs to make sure

our greenhouse gas emissions over the long term. Our success depends

we are always seeking out new opportunities and also communicating

upon our own efforts but also on many developments that are beyond ourour needs. We have incorporated sustainability considerations into

control. As detailed, again, in this year’s report, to reduce our greenhouse

our capital expenditure process. We will endeavor to remain careful togas emissions, we are working to improve the efficiency of our gas-powered

communicate when our ability to reach our goals may be contingent

dryers, to rationalize our production processes, and, in some cases, to redesign

upon developments that are outside our control. Accordingly, while we

our products. We also continue to work with the FDA to reassess the synthetic

can strive to reach net zero emissions in the future, we cannot and willcolor certification process to allow certification of liquid products. Since

not promise to do so until we are certain we can control that outcome.

current regulations require all batches to be spray dried before submission

To do otherwise would be misleading and irresponsible.

The statements included in this Sustainability Report are being provided

tremendous opportunity to reduce our spray dryer usage and, therefore, ourThere is no question that we are at an inflection point in terms ofinitiatives to respond to stakeholder requests, and to further enhancegreenhouse gas emissions. This process has been slower than we would like,sustainability reporting. With new regulations like the EU’s Corporate

but we will continue to press ahead.

Sustainability Reporting Directive and California’s climate bills – asto the FDA for certification, the certification of liquids could represent awell as the final SEC regulations – adding to the ongoing reporting

Sensient Technologies Corporation’s 2023 Sustainability Report
documents Sensient’s sustainability performance from January 1, 2023
through December 31, 2023, unless stated otherwise. It covers all of
Sensient’s global operations.

Cautionary Note Regarding Forward-Looking Statements
to the public in an effort to provide transparency into our sustainability
our collective understanding of sustainability issues. Our approaches tothe disclosures included in this report are different from those included in
mandatory regulatory reporting, including under SEC regulations.
The statements included in this Sustainability Report that are not historical

Of course, we must depend upon others to design more cost-effective electric

requirements and due diligence regulations, there is little doubt that wedryers that meet our process needs, to develop a renewably sourced power

will face greatly increased compliance and reporting costs. In a world

grid, to update and upgrade the power grid to sustainably operate a moreof limited resources, these costs will necessarily have an impact on ourheavily electrified world, and to create commercially and financially viable

sustainability strategy priorities.

are not guarantees of future performance and involve known and unknown

Despite all of these monumental challenges, our efforts andbusiness environment that could cause actual results and events to differ

point-of-emission carbon capture technology.
commitment continue. As you will see in this report, our approachto sustainability is consistent with Sensient’s clear strategy to create
sustainable growth and long-term shareholder and stakeholder value.
We will continue to build meaningful relationships with ourbusiness partners, offer more sustainable products, and scale

are “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
risks, uncertainties, and other factors concerning our operations andmaterially from those in the forward-looking statements. These forwardlooking statements generally are identified by the words “believe,” “project,”“expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,”“plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely
result,” and similar expressions. You should not place undue reliance on any

circular business models.

forward-looking statement. We describe risks and uncertainties that could

On behalf of the Board of Directors, I thank Sensient’s shareholders,the Securities and Exchange Commission, including in Part I, Item 1A of ouremployees, customers, suppliers, and local communities for yourongoing support of our efforts and commitments. I continue to havehigh expectations for Sensient and look forward to continuing tocause actual results and events to differ materially in our reports filed with
Annual Report on Form 10-K for the year ended December 31, 2023. Except
to the extent required by applicable laws, we do not undertake to publicly
update or revise our forward-looking statements, whether because of new

update you on our efforts..

information, future events, or otherwise. While future events discussed

Sincerely,necessarily rising to the level of materiality of the disclosures requiredin this report may be significant, any significance should not be read as
under U.S. federal securities laws.

Paul Manning
Chairman, President, and Chief Executive Officer

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7

Our Business

Who We Are
Sensient Technologies Corporation is a leading global
manufacturer and marketer of colors, flavors, and otherspecialty ingredients. We use advanced technologies androbust global supply chain capabilities to develop specialized
solutions for food and beverages as well as products that serve
the pharmaceutical, nutraceutical, cosmetic, and personalcare industries. We are dedicated to upholding the highest
standards of integrity, safety, and professionalism.

Footprint
Over 40 manufacturing and research anddevelopment (R&D) locations in more than
20 countries as of December 31, 2023.

HistoryMore than 140 years of growth and innovation.

PeopleNearly 4,000 employees serving customers
in more than 150 countries.

Research$48.1 Million allocated toward R&D in 2023.

StewardshipMore than $690,000 donated to children’s healthcare, education, and other worthy causes in2023 through the Sensient Foundation.

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9

OUR BUSINESSOur color, flavor, andspecialty ingredientscan be found in leading
consumer products
worldwide.

What We Do
Color GroupThe Sensient Color Group is the leading global manufacturer
and supplier of natural and synthetic color solutions and otherspecialty ingredients for the food and beverage, cosmetic,
pharmaceutical, nutraceutical, and specialty markets.
Bringing exceptional innovation and applications expertise
into the market, our Color Group stands apart from the rest.

Core Areas of Focus:
Food Colors, Pharmaceutical Colors, Industrial Colors, and Personal Care.

Flavors & Extracts GroupThe Sensient Flavors & Extracts Group is a global developer,
manufacturer, and supplier of flavor systems for the food,beverage, and personal care industries. The Company’s flavor
formulations are used in many of the world’s best-known
consumer products. With outstanding applications expertiseand leading technology platforms, Sensient Flavors & Extracts is
an innovative leading supplier for all things food and beverage.

Core Areas of Focus:
Flavors and Extracts, Natural Ingredients, and Other Flavor Ingredients.

Asia Pacific GroupTo support our localized approach and leverage strengths
unique to each site in the Asia Pacific region, Sensient’s salesof flavors and colors are managed on a geographic basis andreported as a separate segment for the Asia Pacific region.

Core Areas of Focus:
Flavors and Colors for Food and Beverage.

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11

•
OUR BUSINESS

Maintaining ourstrong culture is
critical to everything
we do as a business.

What We Value
Expressed at the beginning of ourCode of Conduct, our Corporate Creedsets forth three non-negotiable rules:
Always Tell The Truth.
We do not lie, cheat, or steal or engage in unethical, illegal,
or immoral behavior. We will willingly lose a sale or customer
in order to comply with the law and our consciences.

Always Produce Safe, High-Quality Products in Safe & Secure Facilities.
We are absolutely and passionately committed to producing safe and quality
products made in accordance with the highest manufacturing standards.
Our workers and facilities must meet or exceed all environmental, health,and safety standards. We work diligently to ensure the physicalsecurity of all of our employees and facilities.

Always be Professional.
We always dress and behave professionally as a sign of respectfor each other, our Company, and our business partners.
Our core values reflect who we are and the way our employees interact with
one another, our customers, suppliers, partners, shareholders, and the communities
in which we operate. Our Corporate Creed encompasses our Company goals andidentity. It embodies the way we conduct ourselves and our business every day.

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13

Our Commitment
to Sustainability
To deliver safe and high-quality products while
upholding the highest standards of integrity,
professionalism, respect, and safety for our customers,
employees, suppliers, and the people, communities,
and environment in which we interact.

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15

OUR COMMITMENT TO SUSTAINABILITY

Materiality Assessment
sustainability strategy through the priorities set by our materiality[

In 2023, we continued to structure our Company-wide

Materiality Matrix

w w
q q
w
e q

assessment conducted in 2021—which is a much broader standard
than that used in our financial disclosures1.
Through our materiality assessment, we identified topics that are
results to objectively define how we manage and measure our
performance. The findings then informed both the context of ourannual Sustainability Report and our Company-wide Sustainability
Strategy, which is integrated into our overall business strategy.

Material Topics
We first identified potentially material topics by reviewing the
Sustainability Accounting Standards Board’s (SASB) recommended
material topics for the Chemical industry, conducting industry research,

PRIORITY TO STAKEHOLDERS

significant to both our business and our stakeholders and used the

r
r
t
r

t
u
y

and performing a benchmarking analysis of our customers, suppliers,and peers. Our process also involved reviewing Company documents andrelevant third-party information, including investor ratings and rankings

y

r
e
e

w

q
Highest PriorityetPriority

Emerging & Maintaining

reports. These steps helped us identify 22 relevant ESG topics, each of which[

is discussed within this report and incorporated into our business strategy.
PRIORITY TO SENSIENT

Based on surveys of our internal stakeholders, discussion among the Boardof Directors, analysis of documentation from stakeholders within our value
chain, and other external research, we identified which ESG topics are ofhighest priority to our current strategy and which ESG topics are emerging
in relevance or are in a position to be maintained and monitored. The
determined priorities – categorized as Environmental, Social, Governance,
or Other – are outlined in the map to the right, based on their relative
importance to our business and key stakeholders. It is our intent to
conduct a new assessment every three years.

ENVIRONMENTAL

GOVERNANCE

q Energy Efficiency
w Greenhouse Gases
e Waterr Wastet Air Quality
y Regenerative Agriculture
u Environment Management Systemq Business Ethics & Legal Compliancew Risk & Crisis Management
e Cybersecurity
r Transparency

SOCIAL

This report and its contents are not substitutes for financially material information provided
in our SEC filings including, but not limited to, our Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q, and Current Reports on Form 8-K. Our sustainability reporting
describes those topics that we consider to be the most important to stakeholders whenevaluating sustainability issues at Sensient. Therefore, materiality in our sustainability
reporting does not directly correspond to the concept of materiality used in securities
law. Where we have deemed an item or risk material to our financial disclosures, we havereported those items in our financial disclosures.

1

Sustainability Report | 2023

q Workforce Health & Safety
w Human Rights / Child Labore Human Capital Managementr Chemical Managementt Grants / Donationsy Volunteering / Community Engagement

OTHER

q Product Innovation
w Responsible Sourcing
e Circular Designr Evaluation of Supplier Sustainabilityt Biodiversity

17

OUR COMMITMENT TO SUSTAINABILITY

Corporate Sustainability Strategy
Sensient has a strong record of legal and environmental complianceand dedication to human rights. Our products are principally used in food,
pharmaceutical, and personal care products and generally have a low
environmental and social impact. However, the environmentally friendly
nature of our products and our compliance record will not be enoughto meet future sustainability requirements. Sensient has developed andprioritized a Sustainability Strategy comprised of five pillars with practical,

PI LL A R ONE

PI LL A R TWO

DECARBONIZATIONWATER STEWARDSHIPReduce consumptionof non-renewable energy
and reduce emissions ofgreenhouse gases.

Improve water
efficiencies and decreasewater consumption, prioritizing
sites in high-stress areas.

attainable goals and milestones that will simultaneously sustain thegrowth and profitability of the business and direct us toward a lower
impact, more-resilient future.
We will meet our commitments through thoughtful action. We owe
this to our investors, our customers, our employees, and the communities
in which we operate. We will also endeavor to be publicly transparent about
our sustainability goals and our progress in achieving them.
We know that none of this will be easy, but we face this challenge with aproactive mindset. We will make investments to adapt our manufacturing
processes and to improve the efficiency and effectiveness of our existing

PI LL A R FI VE
PIL L AR THREESUSTAINABLE
PRODUCT DESIGNWASTE REDUCTION
Reduce waste
and apply the principles
of a circular economy.

Design products that generateless carbon, use less water,
produce less waste, and consist
only of ethically-sourced
materials.

PI LL A R FOURSUSTAINABLE
SUPPLY CHAIN

equipment. In the future, as electric energy sources become cleaner andtechnology becomes available and more cost effective, we will invest in

Build a sustainable supply
chain that fully integrates
ethical and environmentally
responsible practices.

energy-efficient and electrified production equipment where we can.
We will also continue to look for technologies that are not currently viable
to scale or do not yet exist, such as point-of-emission carbon capture
technology. We will continue to endeavor to source as much powerfrom sustainable sources as we believe is financially and physicallyfeasible and prudent.

Disclosure Frameworks & Rating Agencies
Pending potential guidance from regulatory bodies, we will continue
to endeavor to prepare our annual Sustainability Reports to align with
topics and metrics from the SASB disclosure standards for the Chemicals
industry and to address the recommendations and supporting disclosuresof the Financial Stability Board’s Task Force on Climate-related Financial
Disclosures (TCFD). In the future, we will engage third party assurance
services.
In keeping with our commitment to transparency, Sensient also
responds at least annually to assessments and questionnaires fromseveral sustainability-related ratings providers, including EcoVadis,
S&P Global, ISS, MSCI, SEDEX, and Sustainalytics. We also prepareCompany-wide responses to CDP Climate Change, Water, andForestry questionnaires.

Sustainability Report | 2023

PI LL A R ONE / TA RGETPI LL A R TWO / TA RGET S

PIL L AR THREE / TARGET

DECARBONIZATIONWATER STEWARDSHIPWASTE REDUCTION

Reduce carbon intensityof scope 1 and scope 2
greenhouse gas emissions
by 30% by 2030*

Reduce overall water withdrawal
by 30% by 2030*

Increase average
landfill diversion to 75%
by 2030

Reduce water withdrawal intensity by 30%
in areas categorized as having high orextremely high water stress levels*

PI LL A R FOUR / TA RGETPI LL AR FIVE / TARGETSUSTAINABLE SUPPLY CHAINSUSTAINABLE PRODUCT DESIGN

Collect auditable sustainability data and perform
assessments on the suppliers that represent between
75-90% of our total spend by 2030

Incorporate a sustainable design checklist
into 100% of innovation projects by 2024

See individual sections on each pillar below for further details*Baseline 2020

19

PILLAR ONE

Decarbonization

Addressing the challenges ofclimate change and greenhousegas (GHG) emissions is a criticalcomponent of Sensient’s strategy.
Our GHG emissions are primarily generated by the useof electricity and combustible fuels that power our equipment.
To minimize this energy use, our Pillar 1 strategy incorporates
technological, procedural, agricultural, and regulatory approaches,
including our initiatives around solar energy, farming best practices,and product design procedures that inspire low-carbon innovation.
We maintain a robust environmental management system, including
a cloud-based data collection platform, to accurately track theresults of our efforts (which are disclosed in this report) and identify
opportunities for improvement.

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PILLAR ONE: DECARBONIZATION

TargetStrategies, Initiatives & Priorities

2023 Decarbonization Projects

Reduce carbon intensity of scope
1 and scope 2 greenhouse gas
emissions by 30% by 2030
(Baseline 2020)• Increase share of electrical power consumed

Initiatives For Decarbonization Included:from renewable sources when available andcost effective• Scheduled boiler and steam system upgrades andoptimization, which resulted in estimated emissions
reductions of around 3,000 MT CO2e globally• Perform internal optimization audits on

manufacturing equipment and seek out
operational efficiencies• Change equipment and production

processes to utilize green(er) technologies• Explore “natural climate solutions”(e.g. regenerative agriculture, conservation
efforts, etc.)• Explore carbon capture and storage options• Conduct a baseline assessment and• Installation of more efficient dryers and boilers; one
Flavors facility saved over 300 MT CO2e with upgrades
to two of their dryers• Installation of electric dryers within our Natural Ingredientsand Personal Care businesses• Installation of equipment that recycles heat within our boilers,
resulting in savings of up to 400 MT CO2e per install• Optimization of manufacturing procedures led
by our Kaizen teams• Manufacturing procedure redesigns to reduce process
times and improve yield, thereby reducing energy

tracking process for scope 3 emissions

consumption per batch• Installation of additional electricity meters to improve
our monitoring and management capabilities

2023 Results

Carbon intensity of scope 1 and scope 2 greenhouse gas emissions (over revenue)• Realization of agricultural efficiencies by developing seeds with
20202
(Base year)

2023

0.158

0.146

Prior years have been restated to adjust for acquisitions, divestitures, and changes in methodology that occurred between

2

12/31/2020 and 12/31/2023, pursuant to the GHG Protocol.

Please see Appendix 1 for more details on our greenhouse gas emission data.

SPOTLIGHT

Scope 2 Solutions
Transitioning to electric power isn’t always
enough. For electrification to be a feasible
strategy, we first need to pursue efficient,
renewable, and, most critically, reliable
electricity. This is where Sensient has set its
course in the pursuit of scope 2 solutions.
Both our short- and long-term decarbonization
strategies include initiatives to address thesources of major electricity usage throughout
our operations from low-hanging fruit like thetransition to LED lighting and HVAC upgrades
to significant capital projects like solar panelsand high-efficiency combined heat and power
plants. As of the publication of this report, threeof our 32 manufacturing facilities have solar

higher flavor or color content (such as onion solids and EV levels

panels on site, another seven sites are in thein carrot varieties used for food colors) and, thus, improving

process of implementing solar, and anotherresource and energy efficiency and reducing impact per yield

six sites procure energy from a grid that is 85%• Realization of agricultural efficiencies by optimizing the widthand position of crop beds

• Regenerative agriculture practices (see the section onor more renewable. We are actively working
to grow this list. As energy sources becomecleaner and more reliable, opportunities for
decarbonization become more attainable.

“Sustainable farming” in Pillar 4)• Reduction of transportation emissions by purchasing
local ingredients and improving capacity to produce
locally and in-house• Reduction in the number of shipments necessary to ship our products
and supply our facilities by converting to easy-pack packaging and making
larger raw material orders when feasible• Evaluation of all capital expenditure requests using our internal sustainability calculator
Please see Where We Will Go in 2024 and Beyond
for more details on our transition to a low carbon economy.

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23

PILLAR TWO

Water
Stewardship

Water sits at the forefrontof Sensient’s daily operations.
It is a key resource at every stage of production – from its role in
the growth of raw materials to its inclusion in many of our finishedproducts and every stage in between – which is why our goal is tobecome an industry-leading steward of water. By implementing water
stewardship practices, Sensient will better understand and manage
water-related risks, reduce operational costs, generate new business
opportunities, boost productivity, and enhance brand reputation.
In an increasingly water-constrained world, one of our top priorities
is to understand where and how water risks may affect our operations.
Each year, we assess our company-wide water usage and inventory ourusage in areas of potential water stress using the World Resources Institute’s(WRI) Water Risk Atlas tool, Aqueduct. We prioritize our water conservation
efforts at those sites categorized as having the highest water stress levels.

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25

PILLAR TWO: WATER STEWARDSHIP

Targets
1.

2.

Reduce overall water
withdrawal by 30% by 2030
(Baseline 2020)
Reduce water withdrawal
intensity by 30% in areas
categorized as having
high or extremely highwater stress levels(Baseline 2020)

Strategies, Initiatives & Priorities

2023 Water Stewardship Projects• Conduct water consumption audits

Initiatives For Water Stewardship Included:

at each production facility• Prioritization of sites in areas categorized as having
high or extremely high water stress levels• Perform internal optimization audits• Installation of new water-efficient technology

on manufacturing equipment and seekout operational efficiencies• Installation of more water meters for improved tracking• Increase the reuse and recycling of water• Additional training for employees on how to efficiently
use and monitor water• Reduce the amount of “wash water”• Agricultural water efficiency through drip irrigation,needed at agricultural sites• Improve the water efficiency of process

vessel cleaning operations

Our Harbor Beach, Michigan facility has shown
significant progress in achieving our water
stewardship goals by using a three-pronged• The reuse of 100% of our process rinse water

approach consistent with our global strategy:

crops at local farms• Adjustments to the product mix of some businessproduct designs less water-intensive
through employee training on water
efficiency practices

A Trident Strategy
for Water Reduction

in partnership with our agricultural suppliersin our Natural Ingredients business to irrigate• Make production processes and

SPOTLIGHT

units to focus on less water-intensive products

1.

Reduce the water used to cool equipmentby adopting multi-pass cooling technology

2.

Reduce the water used to clean equipmentby implementing clean-in-place technology• Changes to cleaning procedures to improveand efficient sprayers

the quality of wastewater and, thus, reduce the• Increase the use of water meters acrosswater and energy needed for filtering and dilution

production facilities and agricultural sites

3.

Reduce the water used to prevent theemission of particulates by automating
our scrubbers

2023 Results

With this strategy, the site has seen watersavings of more than 90,000 m3 in 2023 and2020(Base year)2023

Total water withdrawal globally (in million m3)

3.83

3.49

Water withdrawal from high or extremely high baseline water stress regions (in million m3)

1.07

1.04

Percentage of water coming from high or extremely high baseline water stress regions

27.8%

29.8%

3

3

Prior years have been restated to adjust for acquisitions and divestitures that occurred between 12/31/2020 and 12/31/2023 and for an updated

expects to ultimately cut total water withdrawal
by over 40% (that’s 200,000 m3 of annual
savings) compared to 2022. Our Harbor Beachfacility is not alone. Other Sensient facilities
globally have begun installing multi-passcooling systems, transitioning to clean-in-placetechnology, and updating the controls on
scrubbers, all contributing to our target of 30%
reduction by 2030.

assessment of water stress by the World Resources Institute’s Aqueduct Water Risk Atlas tool. For improved comparability, we used the 2023
water risk assessment for both the 2020 and 2023 data when categorizing sites as having high or extremely high water stress.

Please see Appendix 2 for more data on our water withdrawal and use.

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27

PILLAR THREE

Waste
Reduction

We understand that generation of waste
and suboptimal use of resources is bad businessand can lead to harmful secondary effects.
For example, the Food and Agriculture Organization of the United Nations(FAO) estimates that 30% of global food raised or prepared is wasted,
contributing to approximately 8% of global greenhouse gas emissions.
Waste optimization is not just about sustainable resource use for its own
sake; it also helps conserve energy, reduce pollution, reduce the toxicity
of our waste, and reduce production costs.
By adopting circular economy principles into our products and processes,
we reduce the overall amount of waste generated, operate more efficiently,
and create closed-loop systems in which materials are constantly reused.

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29							PILLAR THREE: WASTE REDUCTION		

TargetStrategies, Initiatives & Priorities

2023 Waste Reduction & Upcycling Projects

Increase average landfill
diversion4 to 75% by 2030

• Seek out new ways to upcycle unused

Initiatives For Waste Reduction Included:

products and byproducts• Partnership with waste experts to divert waste• Explore packaging solutions with reduced

waste footprints

increased its landfill diversion from 18% to 46% asa result of such a partnership• Test the biodegradability of new and existing• Improved recycling programs; for example, our site in
Italy increased wooden package recycling by 83% andpersonal care products

metal package recycling by 19% in 2023, resulting in an• Recycle and upcycle as much waste asadditional 44 tons of waste saved from the landfill

possible with the objective to establish Zero
Waste to Landfill facilities where feasible2023 Results
WASTE (METRIC TONS)

from landfills; in the past year, our St. Louis facility

20205

2023

• Conversion to packaging with less virgin material,

SPOTLIGHT

The Circular Economy
Sensient’s primary strategy for waste
management is upcycling – the principal
embodiment of the circular economy. As acompany directly involved in the agriculture

such as eco-design stretch wrap, recycled oceanindustry, we recognize the opportunity forplastic courier bags, or bulk-style packaging

products that begin and end on the farm or• Conversion from plastic containers to recyclable

the field with minimal waste and maximum

cartons where feasible; our facility in Australia saved
24 tons of plastic with this strategy

utility. Take our Natural Ingredients businessfor example, where we process raw agriculturalcommodities like onion, garlic, peppers,

Nonhazardous Waste

39,86446,656

Recycled/Reused

1,417

10,848Composted/Organic Recycling

24,14523,064

0

3

Landfill

14,302

12,741

Hazardous Waste

847

553

Flavors facilities was sent to local animal feed

Recycled/Reused

651

372

utility. Finally, Sensient makes a number ofIncineration

123

145

Landfill

74

36

including elderberry extracts, annatto seed oil,

64.7%

72.9%

solutions like Bloomgenix™, and more. Because

Incineration

Landfill Diversion %4• Partnership with our suppliers to improve therecyclability of the packaging shipped to us• Internal packaging reuse• Equipment improvements to reduce loss of productduring production

parsley, and other vegetables into high-quality
ingredients. What isn’t transformed into a highquality product is returned to the farm as soil
amendments and nutrients. Organic wastes
produced at some of our businesses can evenbe turned into new products. In 2023, 7,000
tons of organic waste produced at two of ourmanufacturers, reducing waste and multiplying
products that are designed to upcycle ingredientsthat would have otherwise gone to waste,aloe-based personal care products, biostimulantof these efforts, 45-50% of all of our waste can4

avoid the landfill and find new life in a value-or incineration to the total amount of waste that we generate, on a mass basis. For purposes of this metric, we exclude wastewater

added product or process.

We define landfill diversion as the ratio of the amount of Sensient-generated waste that is managed through recycling, upcycling,

and wastewater pretreatment residuals.
Prior years have been restated to reflect adjustments for error correction and an overall improvement in data quality and collection.

5

Please see Appendix 3 for more data on our waste management.

Sustainability Report | 2023

31

PILLAR FOUR

Sustainable
Supply Chain

Sustainability Report | 2023

The fourth pillar of our Sustainability
Strategy looks at building a sustainablesupply chain that fully integrates ethical andenvironmentally friendly practices. It is our
responsibility to ensure that we purchase ourraw materials and services from suppliers
who are also good stewards of our natural
resources and have appropriate sustainability
practices and goals in place.

33							PILLAR FOUR: SUSTAINABLE SUPPLY CHAIN

TargetStrategies, Initiatives & Priorities

Collect auditable sustainability
data and perform assessmentson the suppliers that represent
between 75-90% of our total
spend by 2030

• Track supplier compliance to our

Supplier Code of Conduct• Establish a sustainability onboarding

and audit system for suppliers• Require our top suppliers to complete

the CDP supply chain questionnaire,
EcoVadis questionnaire, or an internallydeveloped questionnaire

Supply Chain Risk Management
Supply chain risk management has grown to critical importance in the light of anumber of high-profile events that have created ripple effects in the marketplace overthe last several years. In response to the growing risks of such disruptions, Sensient
has elevated the importance of supplier relations and risk preparedness.

Supplier Expectations

Through our various supplier engagement

Sensient’s commitment to responsible production goesinitiatives, we will identify which suppliers pose

beyond our operations. To ensure our suppliers share ourthe most risk to our business, need the mostcommitment to sustainable business practices, we present

improvement, and are the biggest contributors

clear expectations and policies as a basis of our relationship.

to our supplier spend. This assessment supports
the identification of suppliers with whom

Supplier Code of Conduct• Train procurement teams on ethically-

Sensient will further engage to ensure ethicalWe request our suppliers to provide written acknowledgment

and sustainable practices are implemented.

sourced materials and biodiversity risksof our Supplier Code of Conduct. In doing so, they commit toensuring integrity through compliance and business ethics;

Supplier Compliance• Through SNI and our agronomy program,respecting human rights, people, and health and safety;

We regularly inspect our suppliers, seeking to holdrequire partner farmers to complete
regenerative agriculture self-assessments

respecting the environment and protecting biodiversity;

them to the highest standards of product quality

respecting and positively impacting the communities inand working with them to introduce improvements.

which they operate; and ensuring continuous improvement.

With the formal introduction of our Supplier Code• Support agricultural suppliers with advanced

For more information, please see the expectations listed inof Conduct several years ago (and updated in

our Social Responsibility & Human Rights Policy at the end

February 2024), and the use of contractual terms

technology for resource efficiency andregenerative agriculture practices• Choose green(er) suppliers; insist on

suppliers taking measures to reduceenergy consumptionof our ‘Labor and Human Rights’ section.
Sustainability Questionnaireand conditions that require legal compliance,
we endeavor to ensure our suppliers are also
conforming to high ethical and legal standards ofWe have asked our key suppliers to complete a Sustainability

behavior. If any supplier intentionally violates these

Questionnaire containing disclosures around traceability,

norms, we will find a new supplier for that product.

human rights issues, and energy, waste, and water usage.
This exercise has given us a general baseline of where our key

As we continue to build a more sustainablesuppliers are in their sustainability journey and has signaled tosupply chain, we will be increasing the number

our suppliers that this is an increasingly important issue toof environmental- and human rights-focused

Sensient. We will eventually expand our requirement foraudits our suppliers must conduct throughdisclosures to be reported in line with applicable reporting

third-party services and platforms like SEDEX,

regulations and global disclosure frameworks.

as well as the number of on-site supply

Vendor Screening and Prioritization
Many of our sites use Supplier Audit Questionnaires andchain due diligence inspections performed
by Sensient’s own sourcing teams.

Raw Material Questionnaires for new vendor qualification.
These solicit certain information concerning the environmental
footprint, social compliance, traceability, and sustainable sourcingof the specific products we are looking to source. In addition, ouragronomy team maintains a sourcing department dedicated tovisiting potential suppliers on-site to assess the health and safetyof their working environments and ensure that the quality of theirproducts meets Sensient standards.

Sustainability Report | 2023

35

PILLAR FOUR: SUSTAINABLE SUPPLY CHAIN

Raw Material Risk Assessment
To help ensure the safety of our products, all of our raw
materials are part of a detailed traceability program, and wehave robust product and raw material screening programs
designed to exceed industry standards. When assessing
the risk of raw materials, we utilize guidance and definitions
from regulatory bodies such as the FDA and partner withthird-party organizations when feasible and reliable. Below
are some examples of the actions we have taken as a resultof our raw material risk assessments.

Palm-Free Natural Food Colors & Flavors
Palm oil production has skyrocketed over the past 20 years.
It is now the world’s most widely produced vegetable oil
because of its favorable properties (e.g., low in saturated fat,contains no trans fats, and is extremely stable) and its low
cost. Palm oil is found in nearly every food and beveragecategory. In natural food colors and flavors, it is often used
as a carrier. The rapid expansion of palm oil plantations,however, has raised concerns regarding deforestation
and wildlife habitat preservation.
To combat these concerns, Sensient’s research andinnovation teams have developed a broad library ofsustainable and environmentally friendly natural color
options that do not require palm oil-based products.
These innovative natural color options are free of all
palm-derived components, including the active pigment.
In extensive stability testing, the new palm-free natural
colors have proved effective against color degradation,
making them ideally suited for food and beverageapplications. From a coloring perspective, palm-freeformulations can be used as a sustainable alternative
because they do not differ in shade or appearance.
In addition, several Sensient business units across both ourColors and Flavors & Extracts Groups have engaged with
the Roundtable on Sustainable Palm Oil (RSPO), either as
members or as supply chain associates, to support the useof RSPO-certified sustainable palm oil.

Sustainability Report | 2023

Responsible Mica Initiative

Conflict Minerals

Natural mica is a raw material in several Sensient product

Conflict minerals refer to minerals extracted in regionslines. Mica can be sourced from India, where child labor has

suffering from conflict and unrest, the extraction and sale

historically been a concern. Our Supplier Code of Conduct andof which are potentially linked to violence. Sensient has

standard terms and conditions require strict legal compliance,

an obligation to determine whether our products contain

including compliance with child labor laws. As an additional

conflict materials from covered countries. To determine this,measure to help eradicate child labor and unacceptable

Sensient conducts a reasonable ‘country of origin’ inquiry inworking conditions in the Indian mica supply chain, Sensient’s

good faith each year to determine the origin of any conflict

Personal Care business is a member of the Responsible Mica

minerals necessary to the functionality or production of

Initiative, an organization dedicated to collaborative actions

products manufactured by Sensient or contracted to besuch as the creation of “child friendly villages,” whose purpose

manufactured by Sensient. We disclosed our findings foris to ensure that children are removed from work and instead

FY22 in a Form SD filed with the Securities and Exchange

enrolled in school. As part of this initiative, Sensient’s PersonalCommission on May 25, 2023. Based on our inquiry described

Care business encourages the mica processors belonging to its

above, we determined that a limited number of our products

organization’s supply chain to participate in an external audit

contain raw materials that contain trace amounts of aunder the Global Workplace Standard for Mica Processors.

necessary conflict mineral, but we have no reason to believe

In 2022, 90% of our mica volumes from India were from clearly

that these conflict minerals may have originated in theidentified mines with no child labor issues.

Democratic Republic of the Congo or an adjoining country.

Certified Cocoa & Vanilla

TRASCE

This year, two Sensient sites were Rainforest Alliance Certified

Sensient’s Personal Care business is part of a consortiumfor their cocoa and vanilla supply chains. Sourcing certified

of 15 cosmetics industry companies that created thecocoa and vanilla is a key step to achieving our vision for a

Traceability Alliance for Sustainable CosmEtics (TRASCE)

more sustainable supply chain, which is why our flavors site in

to enhance traceability in key ingredient and packaging

Belgium sources its cocoa from Rainforest Alliance Certified

supply chains across the industry.

farms and our flavors site in Milton Keynes sources its vanillafrom Rainforest Alliance Certified farms (www.ra.org).

Product Safety & Traceability
Our product lifecycle management (PLM) system allows

The Uyghur Forced Labor Protection Act (UFLPA)

us to follow a product through each stage of production

We have established a program to help comply with theand helps to ensure regulatory compliance and quality

UFLPA, which was designed to end the use of forced labor incontrol throughout. We also utilize a leading cloud-based

Xingjian, China, by eliminating products from Xingjian fromsupplier compliance, quality, and innovation platform.

our supply chain. Sensient will not import or otherwise procure,

Using this platform, our R&D, Procurement, Quality, anddirectly or indirectly, any product or raw material produced inRegulatory Departments connect with suppliers and co-

Xinjiang, or that contains inputs produced in Xinjiang. Sensientmanufacturers to ensure the safety and quality of products.

will not transact with entities listed on the UFLPA Entities List

We also use this platform to help qualify new vendors; sourceor anyone associated with these entities.

raw materials, items, ingredients, packaging, and services;
request samples; negotiate specifications; and automaticallyAnimal Testingcollect supporting documentation.

Sensient manufactures a wide range of products that are
subject to various testing requirements around the world.

Further, Sensient facilities conduct regular

We do not test our products or raw materials on animals,

self-assessments and third-party assessments,

or contract with third parties to do so, except when such

such as SMETA audits, to provide assurance of fairtesting is mandated by law.

labor practices and regulatory compliance.

37

PILLAR FOUR: SUSTAINABLE SUPPLY CHAIN

Responsible Sourcing
At Sensient, responsible sourcing means a commitment to quality and safety,
which begins from the planting of the seed to the creation of the product sitting
on a customer’s shelf. With approximately 2,500 raw material suppliers and 4,500
other indirect material and service providers contributing to Sensient’s production,
our commitment to quality and safety in the supply chain reaches far.
Our primary strategies for maintaining responsibly sourced ingredients include:

SPOTLIGHT• a thorough understanding and management of supply chain risks (as addressed in the previous section);• detailed knowledge of our supply chain from our expert procurement and sourcing teams;• enhanced transparency through vertical integration where feasible;• internal inspection and certification programs regarding safety and quality; and• transparent and collaborative relationships with our suppliers.

Seed-to-Shelf ™ Program
Our “Seed-to-Shelf” program is a comprehensive global
strategy to understand and have direct involvement in
all aspects of our natural raw materials – from planting
the seeds to growing, harvesting, processing, and sellingthe natural colors and coloring foods that ultimately
end up on the store shelf by way of our customers’ final
products. This strategy further vertically integrates

Sustainability Report | 2023

Traceability

Quality Assurance

To achieve the high-levels of traceability both regulators

While market conditions have led to a rise in

and consumers desire, Sensient’s sustainable procurement

economically motivated adulteration in the food industry,

strategy leverages increased vertical integration where possible.

Sensient is steadfast in our commitment to use onlyThis means we design supplier programs (such as the Seed-to-quality raw materials from strictly qualified sources. The

Shelf Program featured in the spotlight) that allow us to havestrategies and programs we use to ensure the safety anda larger, vested presence and partnership with our growers.

sustainability of our sources are the same ones we use to

In this way, we strive to make sure that their business andassure the premium quality that built Sensient’s exceptionalsafety practices are compliant with our standards and that theirreputation. We maintain good manufacturing practices andworkers are compensated and treated fairly. As a result, our global

food safety standards to help ensure that our procurement

agronomists have visibility across our entire natural supply chain

and production processes are safe, from the arrival of raw

from the initial seed technology stage to the production floor.

materials to the shipment of our finished products.

Additionally, our traceability strategy helps mitigate potential

This is especially notable in the world of naturalrisks to our supply chain that may result from climate change,

colors, where Sensient has developed a comprehensive

weather disruptions, or political disruptions. If a disruption

certification program to test and verify the quality ofwere to occur, we generally have redundancies in place tocolors derived from plant sources. Approximately 80% of

help ensure that our supply chains are secure in order tofood color products launched globally today use naturalcontinue to supply our customers. We endeavor to identify

colors or coloring foods, and as consumers around themultiple growers, often in geographically diverse areas, andworld continue to transition away from certain types

to use a combination of longer-term and short-term contractsof additives and toward more natural options, it is evento minimize the possibility of supply chain disruption to bothmore critical for Sensient to provide innovation andSensient and our suppliers.

transparency across the natural color value chain.

our supply chain and enhances our ability to provide
food and beverage manufacturers with better natural
colors through our agronomy technology, quality andsafety controls, and process engineering expertise.
Seed-to-Shelf comprises a number of ongoing
initiatives to innovate across the value chain for
natural and organic ingredients:• Complete food color traceability to the farm level• Discovery of new botanical sources, like a blue shadethat solves some of the industry’s biggest challenges
with natural food color• Improved resource efficiency as agronomists
increase pigment content levels in key color crops• A reliable and more consistent supply due
to a multi-region planting program• Ability to positively impact local communities
with programs that benefit local economies
in a socially responsible manner

39

PILLAR FOUR: SUSTAINABLE SUPPLY CHAIN

CertaSure™ Certification Program
Food safety is a core component of Sensient’s Corporate Creed. We have

Our rigorous CertaSure testing protocols exemplify our commitment

long recognized that current regulations for colors derived from natural

to guarantee safe natural color solutions. For example, whereas pesticide

sources lack both consistent definitions and publicly available quality

testing in the food industry typically includes between 170 and 220 different

control and product safety specifications and requirements. This is inpesticides, Sensient’s CertaSure pesticide testing protocols screen for more

stark contrast to synthetic colors, which are highly regulated. Indeed,than 500 pesticides. We also go above and beyond typical industry standards

every single lot of synthetic food colors in the United States must be

for detection of heavy metals, microbiological contamination, and unauthorized

tested by the FDA before it can be used in a food or pharmaceuticalsolvents, and we utilize an international food safety platform to identify new foodapplication. There is no similar regulatory testing regime for naturalcontamination and adulteration threats so we can include them in our testingcolors. There is also a lack of agreement regarding appropriate methods

protocols. Sensient’s adulteration screening process ensures all of our incoming

and standards for testing the purity of the natural colors despite thenatural raw materials are free from contaminants or adulterants like synthetic

fact that contaminants of various kinds can be found in many of the raw

dyes or other additives that may be intentionally or unintentionally present

materials used for natural colors. As just one example, lead is commonlyin natural raw materials. We reject any botanical raw material lots that fail ourpresent in low-quality turmeric powders because a large amount ofrigorous CertaSure process.

turmeric is grown in soil with a high-lead content in parts of China
and India; this has led to multiple companies in the U.S. conducting

Our CertaSure program is working. As one illustration of its effectiveness,voluntary recalls of products containing turmeric in recent years.

Sensient’s internal testing program has detected and rejected 90% of the tested
paprika batches in a recent three-year period due to the presence of pesticides.

To address this concerning regulatory and product safety gap, Sensient

Overall, one in four food products found in the market failed Sensient’s testing

sponsored a blue-ribbon panel of academic and industry experts toprotocols based upon the presence of microorganisms, adulteration, heavy metals,

discuss and design quality attributes and potential safety hazards

pesticide, and/or residual solvents. Given the recent surge in prices of food and foodaffecting food colorants from natural sources. This panel’s work

ingredients, it is even more imperative that programs like CertaSure are in place toculminated in a whitepaper entitled “Establishing Standards on Colors

monitor product quality and economically motivated adulteration.

from Natural Sources,” which was the feature article of The Journal of
Food Science’s November 2017 issue. Based on the recommendations

Sensient’s CertaSure program strives to provide food manufacturers safe productsof the expert panel, Sensient created a comprehensive certificationand full brand protection. To our knowledge, Sensient is the only food color

program for colors derived from plant sources that combinescompany that adheres to CertaSure standards.

stringent quality testing, comprehensive vendor certification, fullraw material traceability, and good manufacturing practices toensure that colors from natural sources meet all necessary safety andauthenticity requirements. CertaSure aims to ensure that consumers
receive safe, quality products free of harmful contaminants such as
pesticides, heavy metals, unauthorized solvents, and pathogens.

CertaSure™ aims to ensure that consumers receive safe, quality
products free of harmful contaminants such as pesticides,
heavy metals, unauthorized solvents, and pathogens.

Sustainability Report | 2023

41

PILLAR FOUR: SUSTAINABLE SUPPLY CHAIN

Sustainable Agriculture
Our accredited global agronomists work directly with growers of the fruits, vegetables, and other agricultural and botanicalproducts we use throughout our business segments, sharing best practices and collaborating with them to produce ingredients thatmeet our strict quality and safety requirements. We utilize a wide variety of sustainable farming methods and cropping systems inorder to maintain soil health, preserve biodiversity, and increase farm production and farmer profitability per unit land area.
These methods include:
1.
2.
3.
4.

regenerative agriculture techniques that prioritize soil health and the use of marginal agricultural lands that are generally

SPOTLIGHT

inhospitable to other crops;

California Water

proprietary seed programs dedicated to non-GMO plant breeding techniques that produce better yield and better agronomic
traits, which decrease reliance on chemicals and minimize the use of valuable land, water, and energy;

California, the number one producer of agricultural

collaboration with partner farms to install innovative technologies and implement sustainable practices that make agriculture

goods in the United States, has reported an increasesustainable, convenient, and effective; andin dry wells and declining supplies of groundwater in

habitat conservation and reforestation through strategic partnerships.

recent years, putting a strain on the state’s water systems.

We are grateful for our agronomy teams who are dedicated to these efforts and help bring our vision for natural and

To help address this issue and support our partner farms

restorative production to life.

in the region, Sensient’s Natural Ingredients business(SNI) has partnered with two other organizations
to develop a pilot aquifer recharge pond in Central
California with the intent to expand this effort to

SPOTLIGHT

different growers and regions. These projects will

Farming in the Philippines

recharge groundwater sources for farms and local

The Annual Sensient Butterfly Pea

communities and provide waterfowl habitats for1.

We are intercropping botanicals in old,5.

We protect local water

migrating birds, which play an important role in
the region’s ecology.

Flower Award is a coveted prize in theerosion-prone coconut plantations tosources by planting bamboo

agricultural community of the Philippinesconserve arable land use, improve soil

poles for inexpensive riverbank

where Sensient builds partnerships forhealth, and provide greater income

stabilization and by building

To further support the health of our partner farms

botanical ingredient farming. The award

yield per unit area for the farmer.

water reservoir tanks thatand California water resources, SNI continues to aid

provide potable water.

partners in the conversion to drip irrigation, which

recognizes growers and farms for theiroutstanding contribution to Sensient’s

2.

can reduce water consumption by up to 50%, andWe have implemented resource-efficientagronomy program, which focuses onpractices like drip irrigation, solar dryers,

We provide technologies,

install water sensing probes that provide real-time

regenerative agriculture and good farming

and drought-resistant plants to preserve

educational opportunities,

soil moisture content measurement to support morepractices, community engagement, andfreshwater and energy sources.

and scholarships to partners

efficient irrigation schedules. Other technologies

and their families to support

we have provided partners – including the installation

their long-term pursuits.

of in-field weather stations that predict fungus

prosperity of the local economy and qualityof life. The program is an exemplar of3.

sustainable agriculture:

Butterfly pea flower naturally reduces the6.

presence and drone imaging that monitors overneed for commercial nitrogen fertilizers,
thus reducing GHG emissions from the

We are grateful to work with such

one thousand acres of farmland – help to reduce

manufacture of nitrogen-based fertilizers

wonderful people in the Philippines

the use of fungicides and detect other risks thatand keeping soil and waterways healthy.

and are confident that, together,

could impact water and crop quality.

we can build a secure community
4.

We reduce the risk of soil erosion by

dedicated to the health of people

practicing contour farming – the practiceand planet.

of tilling sloped land along lines ofconsistent elevation in order to conserve
rainwater and reduce soil losses fromsurface erosion – and keeping tillage
to a strict minimum.

Sustainability Report | 2023

43

PILLAR FIVE

Sustainable
Product Design

At Sensient, we understand that
reducing our environmental footprint
requires more than data collectionand efficiency initiatives.
Our ambitions require innovation, so the fifth pillar of oursustainability strategy focuses explicitly on designing products thatgenerate less carbon, use less water, produce less waste, and utilize
sustainable supply chains. With a long history of innovation within
the flavors and colors industries, we will leverage our expertise towork to minimize our environmental impacts and uphold our ethicalcommitments before the production process even begins.

Sustainability Report | 2023

45

PILLAR FIVE: SUSTAINABLE PRODUCT DESIGN

TargetStrategies, Initiatives & Priorities

Sustainable Product Design Checklist

Incorporate a sustainable
design principles checklist
into 100% of innovation
projects by 2024

• Integrate circular design principles into R&D

Innovation is our expertise and our greatest tool foradvancing planetary and human health and well-being.
The journey toward production with lower emissions andresource use, a supply chain that demands the health andsafety of human beings, and a cradle-to-grave lifecycle that
consumers can enjoy with confidence begins with design.

practices at the earliest stages of design• Implement resource-efficiency designprinciples into R&D practices to reduceenergy use and water withdrawal• Incorporate biodegradability, recyclability,and general product end-of-life considerations
into product design• Collaborate with suppliers to ensuresustainable sourcing of raw materials

Sensient is building this priority into all innovation projects with our new Pillar 5 Checklist.
Using this checklist, we will assess the sustainability opportunities – from supplier
identification to customer needs and all the production decisions, regulatory reviews,
and traceability confirmations in between – for all products in the innovation stage.
Each step is designed to measure against our sustainability targets and inspiredecisions aligned with out sustainability strategy.

• Train R&D and purchasing teams

The Pillar 5 Checklist consists of more than 90 questions designed to align our mission

on ethically sourced materials

with customers’ needs and to address environmental and social criteria relevant to thedevelopment of new products.
The criteria considered in our Pillar 5 Checklist include the following:

1

2

3

Sustainability Report | 2023

Choice of raw materials or components in relation to their environmental footprint(e.g. reduced water, energy, and non-renewable material use)

Choice of raw materials or components in relation to identified laborand deforestation risks in the supply chain

Choice of raw materials or components in relation to required distribution,
storage, and transportation

4

Production method and resource-use optimization

5

Packaging requirements

6

Resource efficiency opportunities for customers in downstream production and use

7

End-of-life management
47

PILLAR FIVE: SUSTAINABLE PRODUCT DESIGN

Personal Care
For more than 30 years, our product innovation teamhas been developing natural alternatives to supplement or
replace synthetic ingredients used in cosmetics and personalcare products. Some examples include natural pigments
for makeup and hair dyes, replacements for ingredients likemicro-plastics and titanium dioxide, and nature-forward skincare products with upcycled ingredients.

Sensient’s Personal Care innovation platform is dedicatedto the creation of not only natural – but also biodegradable
and renewable – products. These products provide superior
performance in our customers’ applications and support ourcustomers’ demand for sustainable raw materials for use in
their clean-label products.
Recent examples of our sustainable creations include:
COVABSORB® NATURE GP

OUR NATPURE® PRODUCT LINEis the first natural broad-spectrum color

provides nature-forward solutions forand fragrance protector, designed to shieldpersonal care products. This includes

formulations from UV oxidation, completely

Natpure® Colfine Red, a 100% natural

free from chemical filters like OMC, BHT,

red botanical pigment made fromand Avobenzone.

vegetables, and Natpure® Xco Choco,
an oxidant with inherent caramel

VEGETABLE CHARCOAL PN94™

colors made from upcycling a

is a charcoal made from pine wood sourced

by-product of the cocoa industry.

from sustainably managed forests (certified by
the Forest Stewardship Council).

OUR BIODEGRADABILITY PROGRAM
is on track to test 100% of our personal

ALOE SURFACE TREATMENT

care products for biodegradability.

is a 100% natural and hydrophobic surface

As of the end of 2023, 73% of thetreatment made using upcycled aloe leaf,

personal care portfolio has

a byproduct of aloe gel production.

been assessed.

Safe and sustainable production is just as fundamental to ourpersonal care business as safe and sustainable products.

Sensient Cosmetic
Technologies was rated“Gold” by EcoVadis in 2023.

• For six years, Sensient Cosmetic Technologies has been a signatory memberof the United Nations Global Compact Network France and is committed
to uphold the 10 universal principles on human rights, labor, environment,
and anti-corruption.

• In 2023, our commitment to transforming the cosmetics industry wenteven further when we joined TRASCE, a consortium of 15 cosmetic industry
companies collaborating to enhance traceability in key ingredient andpackaging supply chains across the industry.

• By the end of 2024, we anticipate that 100% of the palm oil derivativesof our personal care business will be RSPO Mass Balance certified.
We look forward to more transformative innovations and strategies to support
our customers in the journey to a more sustainable industry.

Sustainability Report | 2023

49

PILLAR FIVE: SUSTAINABLE PRODUCT DESIGN

Sensient Natural Ingredients
Our long‐term collaborative relationships have led to sustainable
environmental and efficiency improvements, including the conversionof many of our production fields to drip irrigation – the most efficienttechnology for reducing overall water and fertilizer consumption.

Sustainable Product Offerings

Land Stewardship & Emission Reduction

Sensient Natural Ingredients offers an extensive portfolio of

Sensient’s production of our Natural Ingredientdehydrated vegetables that take sustainability to the next level.

product offerings is designed to prioritize solutions

Our PhD plant breeders and research staff constantly strivethat not only reduce our footprint but also add value

to develop improved and sustainable strains of seed lines thatto the land. For example:

enhance quality and productivity and reduce overall energy• 100% of the water we use to wash our harvested

requirements. Our traditional, non-GMO plant-breeding

crops is captured and reused for irrigation inprogram consistently introduces new crop varieties in ordernearby farm fields.

to more efficiently use land and water resources and to reduce
the amount of fossil fuel consumed per unit of production.

• 100% of residual skins and culls from ourprocessing operations are collected and used

Supply Chain Collaboration

to produce compost to support the growing

Located in prime agricultural growing regions across theAmerican west coast, Sensient Natural Ingredients partnersof crops.

with its network of local farmers and partnerships extending• Regenerative agriculture practices, including

across several generations to sustainably cultivate its garlic,

the rotation of diverse crops, are built into ouronion, parsley, and capsicums while maintaining strict supply

short-term and long-term strategies to preserve

chain management and traceability.

resilient farm ecosystems.

With control over each step of the process, Sensient utilizes
decades of process knowledge to ensure ideal field selection,
proprietary development of seed varieties, and a customized
planting and harvesting process. Through our field representative
program, we partner with our growers to share best practices
in farming that are unique to our products in areas such as

To confront the challenge of greenhouse gas
emissions, we are continuously working to reduce
our fossil fuel consumption per dry pound of productproduced through initiatives like our crop science
program, harvest technology improvements, andproprietary dehydrator heat-recovery systems.

integrated pest management, improved nutrient management,water conservation, and other proprietary farm management
systems and tools. Because many of these relationships span
decades, our growers are integrated partners in our supply chain.

SPOTLIGHT

Natural and Organic
In response to the increasing demand for organic agricultural products
grown in the U.S., we are proud to offer our organic-certified line of garlic,
parsley, paprika, onion, chili pepper, ancho pepper, and jalapeño pepper.
Sensient’s line of organic products is grown in compliance with the USDA’s
National Organic Program standards without the use of any synthetic
fertilizers, herbicides, or insecticides. Transported to our organic certified
facility and processed within 24 hours of harvest, Sensient’s organic products
are well cared for to help ensure safety and high quality from farm to table.

Sustainability Report | 2023

51

PILLAR FIVE: SUSTAINABLE PRODUCT DESIGN

BioNutrients
Through our BioNutrients business, Sensient manufactures
yeast extracts and peptones that have a wide range ofapplications in the plant, human, and animal nutrition markets.

Human Nutrition
Viewed as a safe, natural substitute to chemically produced
drugs, probiotics used in dietary supplements experienced
rising demand during the COVID-19 pandemic, and we
expect that demand will continue to grow. Other examplesof human nutrition applications include production of dairy
cultures, food protectants, cultured and alternative proteins,
vaccines, and pharmaceutical products. Additionally, we

The peptides, amino acids, vitamins, and other growth factors in
our products allow us to provide a broad portfolio of consistent,
innovative, and tailored nutrient solutions to meet our customers’
diverse application needs and deliver value through improved
productivity, processing time, and product performance.

SPOTLIGHT

utilize a proprietary process to reduce gluten levels in brewer’s

Bloomgenix®

yeast extracts that can be used in fermentation products.

At their core, our Bloomgenix® Biostimulants andWe are also working with plant-based meat companies tooptimize protein production through fermentation, whichhelps increase the availability of a sustainable protein source
as compared to an animal protein source. We develop protein
sources that help to improve the efficiency and throughputof fermentation processes to reduce energy usage and theresultant generation of greenhouse gases. According to the
Veganism Impact Report, plant-based meat production may
ultimately help mitigate 70% of greenhouse gases that are

Fermentation lines are designed to improve ourcustomers’ products and productivity, and as a result,
we enhance efficiency and stewardship of resources.
When applied to a crop, Bloomgenix® biostimulants
improve the uptake of nutrients into the plant, thereby
reducing the crop’s resource requirements. That means
less arable land use, less water, and fewer emissions bothon the farm and in transportation. Further, the higher
nutrient-use efficiencies can help farmers reduce

generated as a result of the production of meat products. We

their use of synthetic fertilizers, thereby improving

believe that the sustainability benefit inherent in plant-based

both soil and water health, while ultimately harvesting

meat alternatives may help this market regain its footing.

a higher quality yield.

Animal Nutrition

The environmental impact extends to the upstream

Our products are also used as nutritional supplements foranimal feed. As the depletion of arable land has inducedpressure on the livestock sector to produce more efficiently
with limited resources, our nutrients provide a sustainable
and efficient alternative to animal feed.

Plant Nutrition
Increasing demand to reduce usage of synthetic fertilizers
and pesticides on crops has driven adoption of morebiological and environmentally-friendly solutions such as
biostimulants and biopesticides in farming applications.
As spotlighted, our Bloomgenix® solution is an eco-friendly,
animal-free line of biostimulant ingredients derived fromyeast and various plant sources. These ingredients areabundant in free amino acids, bioactive peptides, plantvitamins, and target metabolites to improve the overall yieldof the crop, the quality of the harvest, and the resilience ofvalue chain as well. Sensient utilizes a circular approachin the creation of Bloomgenix® products by upcycling
ingredients such as brewer’s yeast or corn byproducts thatwould have otherwise ended at a landfill. The process adds
several other peripheral benefits:• We recover and sell the alcohol coming in with thebrewer’s yeast, eliminating what would have beenhazardous waste.
• We upcycle the cell walls that result from the process
to add into livestock feed for better animal health.
• We beneficially apply the wastewater sludge
generated by the process to fertilize agricultural fields.
• Through fermentation, our nutrients are also used
to produce many health and wellness products suchas probiotics and biopharmaceuticals.

crops to environmental stressors such as drought, cold, andThe result of our biostimulant solutions

salinity. Moreover, some of Sensient’s biostimulants provide

is less waste, fewer emissions, smartera higher nutrient use efficiency, which helps farmers reduce

farming, and smarter production.

their use of synthetic fertilizers.

Sustainability Report | 2023

53

PILLAR FIVE: SUSTAINABLE PRODUCT DESIGN

Innovations for
Consumer Health
At Sensient, our R&D teams have developed a wide
range of product lines that reflect the consumer drive
toward health, clean labels, and environmental stewardship.
We are constantly improving our portfolio of clean label
products, which includes vegan flavors, organic certified
products, plant-based products, and extracts.

Vegan Flavors
To meet the growing interest in veganism and other lifestyle changes thatinvolve a reduction in the consumption of animal products and the corresponding
environmental benefit, Sensient flavorists and in-house R&D teams continue to help
food manufacturers create vegan products without sacrificing the taste experience.

Plant-Based Protein Solutions
Sensient collaborates with brands and manufacturers to offer sensory expertisewith natural colors and taste solutions across the entire plant-based market.
The constantly expanding universe of plant-based meat alternatives, nondairy
beverages, and other vegetarian-friendly products is creating myriad opportunities
for flavor ingredients to shine. Whether mimicking the taste of traditional meat, fish,and dairy, or creating a unique premium experience, flavors for plant-based products
are becoming more sophisticated even as they help product developers overcome
formulation issues. Similarly, having the right natural color is also critical. Consumer
buying decisions in this category are often driven by the appearance of the productat the time of purchase. Color helps push consumer entry into this category.
Unfortunately, the use of various protein sources to create meat and dairy
alternatives can create products with appearance, taste, and texture problems.
These problems are sometimes solved by the addition of unhealthy fat, sugar, salt,
and other ingredients. Sensient has developed a wide range of natural, healthiertechnology solutions that work across a wide variety of applications to solve thesetaste, texture, and appearance issues. These efforts help make plant-based products
more appealing to an ever-demanding audience of consumers, all while helping
to reduce the environmental impacts of food production.

Dairy-Free Products
Sensient’s TrueBoost™ flavoring provides a full range of natural flavoring
systems that deliver the rich, creamy mouthfeel and flavoring characteristics
consumers crave from full-fat dairy products. TrueBoost™ flavorings arenatural and cost-effective, allowing food technologists the flexibility to easily
create healthier products without compromising taste or experience.

Sodium & Sugar Reduction
Sensient plays an important role in helping food and beverage manufacturers
with sodium and sugar reduction initiatives to create healthier products that are naturaland label-friendly without negatively impacting taste. For example, our SensaSalt®
solutions make our customers’ final products more appealing by naturally enhancing
target flavors while reducing the sodium content by up to 50%. Our All-Purpose Sweet
Solutions (APSS) – one of several of our natural lines of sweetness enhancers – improves
sweetness and mouth feel in low-sugar confectionery, dairy, and beverage products
while reducing off notes that can result when less sugar is used.

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55

PILLAR FIVE: SUSTAINABLE PRODUCT DESIGN

Clean-Label Products
For health-conscious consumers, clean label products with familiar ingredientsare seen as premium, as they create the perception of being healthier and more natural.
Sensient continues to develop clean-label products and alternatives to synthetic
products to help our customers build consumer trust and loyalty.
Natural Flavor Enhancers

Coloring Foods

Sensient is ready with innovative, creative flavor enhancements

Coloring foods based on concentrates and extracts from specially selected ediblethat meet clean-manufacturing requirements, including:plant sources support the clean label trend, particularly in Europe, where they

• Natural “nut” flavors that allow for allergen-free, all-natural labeling;• Ingredient and flavor combinations to lend a sense of indulgenceto dairy-free ice cream; and• Smokeless Natural Flavor Portfolio, which includes smoke andwood flavors
Sensient provides the flavors to boost appeal while also meetingthe “free-from” requirement. We help capture consumer demand
for great taste that is free from the ingredients that concern
them, helping our customers grow brand loyalty and sales.

Natural Color Solutions
Caramel colors have traditionally been the preferred color option for brownshades in food and beverage applications. However, certain caramel colors
have been subject to increasing regulatory and media attention given theare considered food ingredients rather than color additives. Each batch of ourcoloring food products is approved through our CertaSure™ process, so ourcustomers have the assurance of safety and quality with every purchase.
Sensient’s Cardea™ line of coloring food products meets manufacturers’
highest clean-label demands with coloring solutions made entirely free fromadditives or preservatives. It utilizes a combination of natural ingredients thatwork in sync to optimize performance in food and beverage products.

USDA Certified Organic Products
Sensient is committed to creating a broad range of USDA Certified Organic color andflavor solutions to fulfill the demand for natural colors and flavors that fully meet themost stringent organic standards. Sensient’s Natural Ingredient line of organic products,
including garlic, parsley, paprika, onion, chili pepper, ancho pepper, and jalapeño pepper,is grown in compliance with the USDA’s National Organic Program standards without
the use of any synthetic fertilizers, herbicides, or insecticides. Sourced from the purest
raw materials, our organic color solutions are produced in accordance with all regulatory
requirements for USDA Certification and deliver the brightest colors nature has to offer.

presence of 4-methylimidazole (4-MEI), a byproduct potentially formed

Sustainability Report | 2023

during the normal heating and browning process of many foods. Although

Titanium Dioxide Alternatives

authorities such as the European Food Safety Authority (EFSA), the Food andSensient continues to develop versatile alternatives to titanium dioxide, which is used

Drug Administration (FDA), and the Joint FAO/WHO Expert Committee on

in food, pharmaceutical, and cosmetic applications as an opacifying agent. Recent

Food Additives (JECFA) have concluded that 4-MEI in caramel coloring is safe,

regulatory activity in Europe that attempted to ban the use of titanium dioxide in food has

California requires Proposition 65 warnings for certain products containing

led customers everywhere to seek out alternatives. Sensient pioneered titanium dioxide

4-MEI, and customers are increasingly requesting replacements for caramel

replacements with our Avalanche® and Avalanche® Xtra portfolios, which are natural,colors in various applications. One of the biggest challenges we have overcome

titanium dioxide-free opacifiers that can be used in virtually any pH system or food application

has been to produce rich, natural brown shades for use in confectionery to

to match the performance of titanium dioxide and address the clean ingredient needs ofsuccessfully perform under the intense processing conditions encountered

our customers. In 2023, our Color Group launched three new products in our Avalanche®

in those applications. As a result of our R&D efforts, Sensient is able to offer

product line. We also provide alternatives to titanium dioxide for use in cosmetic andour customers natural alternatives to caramel in these applications.

personal care applications such as our SensiOpt White™ range and Sensifeel™ range.

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Labor &Human Rights

LABOR & HUMAN RIGHTS

Non-Discrimination, Equal Opportunity, andStriving to Uphold the Dignity of Every Employee
Sensient values the dignity of each employee

Failure to provide equal employment opportunities,

as a unique person with an individual skill set

including those listed above, because of an individual’sand perspective. We categorically reject individuals

status in a protected class is a violation of the Company’s

and ideologies that seek to sow hate, discord,

Code of Conduct and is not tolerated or condoned by theand division based upon an individual’s personal

Company. Upon proof of a violation of these rules, any

characteristics. We have been and always will beoffending employee will be summarily terminated with

one Sensient at all times and in all places, united

no payment beyond that which a government mandates

by our common humanity and our common

must be made.

dedication to the Sensient Corporate Creed.
Sensient also seeks to provide a work environment that is
Sensient provides equal employment opportunities

respectful of every person and is free from discrimination,

to all people and seeks to comply with all national,

intimidation, and harassment based on membership instate, and local equal employment opportunity laws,

a protected class. Sensient’s Code of Conduct specificallyorders, and regulations in conducting its activities.

prohibits discrimination, intimidation, and harassment
and calls for summary termination of anyone found

The Company does not discriminate based upon

to have violated these anti-harassment policies.

race, religion, color, sex (which includes pregnancy,

Sustainability Report | 2023

orientation, identification, expression, and all otherWe regularly communicate and rigorously enforce

legally protected characteristics), age, national origin,these expectations, as well as provide employees

disability, veteran or military status, political beliefs,

with multiple ways to report concerns. We investigate

or any other characteristic now or subsequently

all concerns reported that implicate the Code ofprotected by applicable law (collectively, “protected

Conduct. This year, every confirmed violation of theclasses”). The Company seeks to administer,Sensient Code of Conduct onceagain resulted inon a non-discriminatory basis and in compliancetermination. Our CEO shares a summary of Code ofwith all applicable laws and our Corporate Creed,

Conduct violations with our employees every quarterall policies, benefits, and programs, including

toreiterate our absolute commitment to a respectful

but not limited to those relating to interviewing

workplace free of discrimination. Employees receiveand selection, compensation, promotion,

training on the Code of Conduct at the time oftransfer, layoff, recall, and training.

hire and receive retraining on an annual basis.

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LABOR & HUMAN RIGHTS

HiringEmployee Development

We employ inclusive hiring practices.

At Sensient, our philosophy on talent development is
to foster a learning environment where employees candevelop to reach their full potential in their roles today andto prepare them for future career growth at Sensient for
tomorrow. Our talent is a key differentiator, and employee
growth and development is a top priority.

All employment decisions, including interviewing,
hiring, compensation, training, promotions, transfers,
and lay-offs, are based on both the principle of equal
employment opportunity and each individual’s
personal skills and abilities, character, and dedication
to the success of the Company. We do not discriminate
based upon anything other than a person’s ability to

Freedom of Association& Collective Bargaining

On-Boarding

Sensient respects the right of workers
to freely organize, associate, andbargain collectively in accordancewith applicable national laws.

After hiring a candidate,
we believe that an effective
on-boarding program is a
critical factor in whether a new
employee succeeds or fails.

We comply with the requirements of all national

We conduct a survey of new hires

In order to continue to develop and retain our key talent, we offer training

labor and employment laws, including all union,

to solicit feedback on our recruitment

do their job well. We believe doing anything else isprograms based upon the employee’s role in the Company. For example, we

freedom of association, and collective bargaining

and on-boarding practices and utilize

unfair, unjust, and patently inequitable.

developed a training program for people leaders, including an in-person session

laws. We require the same of our suppliers. Sensientthat feedback to further enhance

led by our CEO and participation in a coaching program. The coaching program

will not tolerate any violation of these principles.

how we bring new employees into

We have a dedicated internal talent acquisitionis six months long and provides training and resources for our leaders to improveteam, with deep knowledge of our Company andtheir coaching skills. In 2023, over 350 leaders participated in the program.

our core values, in order to help us find the best

the organization. We continue to
Our Board of Directors oversees the Company’s

develop and improve the on-boarding

Human Capital Management program, including

processes to differentiate ourselves fromprospective employees for open positions worldwide.

We also maintain personalized career planning, ongoing coaching andthe measures taken to support employees’

our competitors and help enable ourOur strategies to broaden the pool of potential

development by Corporate and local leadership, and a “High Potential

right to exercise freedom of association andemployees to succeed.

applicants include working alongside professional

Program,” which ensures our key talent learns from and gains exposure

collective bargaining. We regularly engage

organizations and educational institutions andto senior leadership. Performance reviews and succession planning occur

with employees, employee representatives,

collaborating with local community leaders. We

Company-wide on an annual basis. Individual goals, which flow from theand local trade unions and works councils that

also challenge ourselves to take a broad view on

Company strategy, are set annually for employees, and attainment of those

represent our employees to inform and consult

talent acquisition, including routinely seeking

goals is an element of the employee’s annual performance assessment.

on matters regarding the Company’s businesses
and workforces. Employees are encouraged totalent from non-traditional backgrounds andfrom outside our industry, and moving beyond

We invest in our development programs for high-impact roles, such as ourreport violations of labor and employment laws

restrictive pedigree requirements in favor of skills

General Management Development, Sales Representative Trainee, Flavorist

on a confidential or anonymous basis using theand the ability to learn. Sensient uses innovative

Trainee, and High Potential programs. We continue to “promote-from-within”

compliance concerns form on the Company’s

recruiting strategies to strengthen our pipeline ofand provide opportunities for our internal employees to grow their careers,internal website or our Code of Conduct hotline.

talent. For example, we utilize a gamified AI-basedwith over half of our senior leadership and over half of our business unit

platform to identify, without bias, candidates forleaders previously having been promoted to their current roles from within

There were no Sensient locations at which the rightour sales and certain technical roles who share

the Company. We closely monitor turnover, both overall and in critical roles,

to freedom of association and collective bargaining

the behavioral and cognitive attributes of ourand solicit detailed exit survey feedback from departing employees to evaluate

were violated or at risk during the 2023 financial

most successful people from around the world.

our retention efforts and identify areas of need for future investment.

year. As such, no additional measures were taken.

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61

LABOR & HUMAN RIGHTS

Employee Benefits & Well-Being

Workforce Demographics

We firmly believe that every Sensient employee contributes to our
success. To reward our employees and attract other high performers, weoffer competitive compensation and a wide variety of benefits and otherprograms to recognize the contributions of our employees and promote
their well-being, including the following:

Our workforce demographics display
the diversity of our employees and ourcommitment to inclusive hiring andpromotion practices.

• Comprehensive benefits programs that allow employees• Third-party employee assistance program thatto select the plans and levels of coverage best suitedoffers free and confidential counseling, referrals,

to meet their needs, including health insurance

and follow-up services to employees with personal

benefits for our full-time employees and their families

and/or work-related problems.

and supplemental health insurance for employees incountries with public health systems. In the U.S., Company
contributions to the cost of our employees’ health careplans amount to approximately 80% of total premium
costs, well above the industry average of around 75%. We• Generous paid time-off policies to promote better
work/life balance.

• Scholarships and tuition assistance for eligible

employees to further their career development

As of December 31, 2023, the Company had approximately• Monthly CEO town halls with all employees
via live video.

• Opportunities for employees to participate
in international work assignments.

• Innovation program that provides cash

3,956 employees, with approximately 43% based in
the U.S. and 57% outside of the U.S. The consolidatedFederal Employer Information Report EEO-1 (“EEO-1
Report”) attached in the appendix provides a summaryof our U.S. employees as of December 31, 2023.6
We are proud of the unique backgrounds and perspectives

payments for employees who solve keyof the Company’s leaders, including with respect totechnical challenges.

sex, race, ethnicity, and other factors. Of the Company’s• In conjunction with National Merit Scholarship

15 officers, four are women; two are African-American,

also allow our U.S. part-time and seasonal employees atand to increase their value to Sensient. Under this

our Natural Ingredients business to participate in many ofpolicy, employees may receive financial assistance

Corporation, Sensient offers college scholarships

the same programs as our full-time employees, including

when taking formal, educational courses fromto the eligible children of U.S. employees. Eachour Savings Plan 401(k) program.

accredited schools.

scholarship winner receives $5,000 per year of

Our anti-discrimination principles and commitmentcollege for up to four years.

to leveraging diverse experiences also extend to our• Paid parental leave program for new parents to support
our employees through the transformational experience• Pet insurance for eligible employees in the U.S.

Participating employees have the convenienceof becoming a parent. In the U.S., eligible new parents

to pay insurance premiums through payroll deductionsof a child through birth or adoption receive six weeks ofto help alleviate costs of veterinary care needs.

paid leave, with an additional 10 weeks of paid leave fornew birth mothers for recovery from childbirth and newparents who are the primary caregiver of a childby adoption or surrogacy.

• No-cost disease management program available to all
employees enrolled in a Sensient health plan.

• Generous employer match for participants in our
Savings Plan 401(k) program.

Sustainability Report | 2023

• Support of Executive Order 13518, The Veterans

Employment Initiative, to help U.S. military veterans findcivilian employment. As noted above, our Board includes
a veteran, and three out of the five Named Executive
Officers in our 2024 Proxy Statement are veterans.

• Paid internship and co-op programs to educate

the future of our industry with valuable hands-on
experience and training.

• Monitoring of employee satisfaction andengagement through surveys of the recruiting
and onboarding process for new hires; new hire
check-ins; stay interviews, which are mandatory
for all key talent; and exit surveys and interviewsfor departing employees.

including one African-American woman; one is Asian/mixed race; and three are veterans of the U.S. Navy.

nominating practices for our Board of Directors. Of ournine directors as of December 31, 2023, three are women,
one of whom is African American; one is South Asian; twoare immigrants to the United States; and one is a veteran.
Additional metrics on workforce demographics
can be found in Appendix 5.

• Employee Referral Program that rewards
Sensient employees for referring a successful
hire during the recruitment process.

• Employee Stock Ownership Plan.

The EEO-1 Report provides a demographic breakdown of an employer’s
U.S. workforce by race and sex in certain prescribed job categories.
The 2023 EEO-1 Report is not certified and has not been finalized or
filed with the U.S. Equal Employment Opportunity Commission as ofthe publishing of this report. Sensient will complete and file a final 2023
EEO-1 report when the EEOC collects the information in 2024.

6

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LABOR & HUMAN RIGHTS

Employee Health & Safety
Our employees are our most important asset. We take pridein our strong and continually improving health and safety programs,
which we view as important aspects of our economic health andcore values. We expect each employee to actively participate in andcontribute to this philosophy.
The following examples demonstrate our commitment and progress
toward achieving our goal of providing the safest workplace possible:• Corporate Environmental, Health, and Safety (EHS) Department
oversight of safety and compliance matters at all Company facilities.

• Implementation of “best-practice” programs and management
systems across all business units worldwide.

• Ongoing capital investments aimed at continually improving
EHS standards in each of our plants around the world.

• Meaningful use of metrics to apply leading and lagging indicators
toward incremental improvement and sustainable results.

• Regular third-party EHS audits conducted at Company facilities at the

Operational Health& Safety Management
Each Sensient facility is responsible for maintaining
an occupational health and safety management systemthat, among other things, provides for implementationof relevant safety policies and procedures; hazard
identification and tracking; safety orientation trainingof new employees; and regular refresher training on
relevant safety topics throughout the year through a
combination of classroom training, tool box meetings,
and computerized training. For high-hazard activities likeconfined space entries, lockout/tagout, and hot work, wehave implemented safe work permit programs to ensure
the highest standards of safety are followed in our facilities.
Each Sensient manufacturing facility has a joint
management-worker safety committee comprisedof representatives from multiple departments topromote safe and healthy work practices and prevent
occupational injuries, illnesses, and accidents. Safetycommittees meet regularly to review occupational

direction of the Corporate Legal Department to determine the state

injuries and near misses occurring since the last meeting;of facility compliance with applicable safety laws and regulations.

the resolution or current status of outstanding action• Regular communication and engagement with employees onsafety topics through safety committee meetings, plant-widecommunication meetings, and “tool box” meetings.

• Root cause analysis of injuries and near misses to ensure thatlessons learned can be applied across the entire organization.

items; upcoming safety and health awareness training;

Employee Health & Safety Policy
Environmental stewardship and the health and safety of ouremployees, contractors, and communities in which we operate arefoundational to our ability to fulfill our mission and are every employee’s
responsibility. Consistent with our Code of Conduct, this CEO-approved
policy describes the principles and commitments that guide us:• We will meet or exceed allenvironmental management

environmental, health, andsystems to help us meet oursafety standards.

compliance obligations, prevent• We will implement all Company
environment, health, and safety rules.
• We will always operate in a manner
to protect the health of our workers
through the implementation of safe
work practices, engineering controls,
and personal protective equipment.
• We will maintain an emergency
preparedness plan for each of
our facilities.
• We will provide regular

regulatory agency and/or internal inspections; thesafety and environmental

results of any industrial hygiene testing that has beenawareness training.

performed; and any other relevant topics of concern.

• Our Code of Conduct requires
our employees to communicate

Data relating to Operational Health and Safety

potential safety and environmental

Management can be found in Appendix 4.

risks to management.
• We facilitate transparent reportingand investigation of safety andenvironmental incidents.
• We establish measurable
objectives and metrics to track
our performance.

Sustainability Report | 2023

• Our facilities will adopt formal

applicable local, state, and federal

pollution, reduce waste, and use
energy more efficiently.
• We are committed to continuous
improvement by integrating
sustainability and environment,
health, and safety goals into ourbusiness planning and decisionmaking processes, including ourcapital investment decisions.
• We will consult with relevant
stakeholders on environmental
performance.
• We will continually monitor andmanage our performance andpublicly disclose metrics in ourannual Sustainability Report.
• We will conduct audits andimplement best practices
to ensure compliance withthis Policy.
• We demand that allcontractors working for
us will operate according
to these same standards.

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LABOR & HUMAN RIGHTSHAZARD IDENTIFICATION,RISK ASSESSMENT,& INCIDENT INVESTIGATIONPROMOTION OF WORKER HEALTH

Each Sensient facility is responsible for conducting

supplemental health insurance for employees in countries with publicrisk assessments of the processes carried out at

health systems; short-term and long-term disability plans; paid parental

the facility to identify potential hazards and makeleave programs; and mental health support such as access to freesure that proper work procedures, administrativeand confidential counseling services. Additional, voluntary services

controls, engineering controls, and personal

include a disease management program, a weight loss management

protective equipment are provided, as necessary.

program, access to discounted gym memberships, and, for U.S.

Sensient provides comprehensive health benefits programs, including
health insurance benefits for our full-time employees and their families;

employees, optional on-site biometric screenings and flu shot clinics.
As outlined in our EHS Policy, our Code of Conduct
requires our employees to communicate potential

Sensient facilitates workers’ access to these services upon hiresafety and environmental risks to management. Allor, in the case of disability plans and paid parental leave benefits,

employees are trained on the available procedures toafter service requirements are met. Sensient’s benefits specialists

report such risks or occurrences, including in-person

provide annual reminders on the benefits available and instructions

reporting to a manager or Human Resources oron how to enroll in benefits that best fit the needs of employees

anonymous reporting to a dedicated email address,

and their families. These programs and services are available to all

hotline, or online form within Sensient’s intranet.

full-time employees, with the exception of employees who receive

Sensient has an internal reporting requirement for

the given service through State programs or through their union,

work-related injuries and other safety incidents at ouras defined by the union’s collective bargaining agreement.

facilities to make sure that Company management
are timely made aware of incidents. This includes a

To maintain the confidentiality of workers' personal healthrequirement to conduct a root cause investigation andinformation, Sensient has business associate agreements in

identify preventive and corrective actions to prevent aplace with all vendors with whom we share information. Files

recurrence. Learnings are shared with other Sensientthat vendors receive are transmitted through our HRIS systemfacilities in the spirit of continuous improvement.

using a secure server with our third-party administrator.

Physical Security Program
As part of our commitment to maintaining
a safe work environment, Sensient is committed
to maintaining physically secure offices and plants.
The Sensient Physical Security Policy, available to all Sensient
employees in 12 languages, details our security program and employee
responsibilities. All employees are required to follow the guidelines of
the Physical Security Policy and must complete workplace violence
prevention training upon hire and on an annual basis thereafter.
Our Board of Directors has direct responsibility for the physical security
program, and our Security Council – which consists of executives,
directors, and site security managers – meets biannually to oversee
the program. The Director of Corporate Security is responsible for
implementing and maintaining the security programs. Each Sensient
site has designated a site security manager that acts under the directionof the Director of Corporate Security and ensures the site’s compliancewith the Physical Security Policy. Sensient’s dedicated crisis response
team – which consists of executives, directors, and the appropriate
management of an affected location – meets annually to conduct acrisis response exercise focused on emergency planning, response, andbusiness continuity. Sensient conducts annual physical security audits of
its facilities to further identify and mitigate risks.
Sensient has also engaged a third-party medical and security service toenhance our physical security program. This company provides additional
security for traveling employees and emergency alert notifications toemployees and business locations when a security risk event occurs on ornear their site.

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67

LABOR & HUMAN RIGHTS

Labor & Human Rights Risk Management
Sensient approaches labor and human rights risk management, both within
our own operations and within the supply chain, through a comprehensive structureof dedicated governance, publicly shared and enforced policies, a mandatory Code of
Conduct for both Sensient personnel and suppliers, and continuous monitoring.
GOVERNANCE

MONITORING COMPLIANCE

Sensient’s Board of Directors has direct oversight on management’s risk assessments

The majority of our manufacturing facilities undergo regular Supplier

STATEMENT ON
SECURITY PRACTICES

and implementation of appropriate risk management policies and guidelines, including

Ethical Data Exchange (“SEDEX”) audits to evaluate and document ourSensient initiates an annual due diligencerisks related to labor and human rights and all related regulatory or environmental,

compliance against Ethical Trade Initiative (“ETI”) standards and SEDEX

review process of our supply chain to ensure

health, and safety (EHS) matters. The Board of Directors is responsible for our humanMembers Ethical Trade Audit (“SMETA”) best practices. More than half of ourthat products supplied to Sensient do notrights policy. Management responsibilities related to labor and human rights

sites, representing approximately 91% of our annual production volume, haveoriginate from conflict regions that directly or

within operations and the supply chain are directed through our Corporate Humanbeen subject to human rights reviews following the SMETA principles.

indirectly finance or benefit armed groups andcause or foster human rights abuses. Failure

Resources, EHS, and Regulatory teams. Each plays an important role in communicating
expectations, responding to changes in risk factors and regulation, and tracking

Our suppliers are expected to have systems in place to track complianceto comply with our Supplier Code of Conduct

compliance. Additional details on governance and risk management can be found inwith applicable laws and regulations and to investigate, to the extent

may be grounds for terminating the supplierour ‘Corporate Governance, Legal Compliance, And Risk Oversight’ section.

allowed by law, allegations of misconduct. In addition, we reserve therelationship, and any relevant contracts.

right to audit our suppliers for conformance with our requirements and

POLICIES AND DISCLOSURES
Sensient’s primary policy designed to combat labor & human rights risks is ourwith applicable legal requirements.

All Sensient employees receive annual training
on the Company’s Code of Conduct, including

Code of Conduct, which includes our Supplier Code of Conduct (see the expectations

REPORTING VIOLATIONS

listed in these documents in our Social Responsibility & Human Rights Policy at the

We continually monitor all aspects of our business, including our supply

end of this section), in addition to the following policies and disclosures:chain. Our Code requires any employee who believes the Code has been

• Slavery & Human Trafficking Statement• Uygher & Other Forced Labor Policy• Conflict Minerals Disclosure

violated to promptly report the matter to the Company’s General Counsel
or Director of Internal Audit. Reports may be verbal or in writing, and may
be made on a confidential or anonymous basis using the compliancethose responsible for managing the security of
our global sites and locations. Sensient security
personnel are from outsourced suppliers, andthese organizations are expected to conformto Sensient’s Supplier Code of Conduct, which
supports the ethical principles of Sensient.

concerns form on the Company’s internal website. All reports of violations
are promptly investigated and remedied as appropriate under the direction

As set forth in our Code, Sensient has zero tolerance for forced labor of any kind,of the General Counsel.

including prison labor, non-rescindable contracts, or labor obtained through threatsof punishment, deposits of bonds, or other constraints, and strictly complies with the

Suppliers must immediately inform Sensient in writing if they are aware

requirements of the U.K Modern Slavery Act of 2015 (the "Act").

of any negative publicity, including violations of the Act, regarding the
supplier or any product supplied to us.

Any employee found to have violated the Act is subject to discipline under the Code, up
to and including immediate termination. If Sensient finds any supplier to have violated

There were no instances of slavery or human trafficking concerns raised

the Act, we will promptly terminate our commercial relationship with that supplier.

to us during the 2023 financial year.

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LABOR & HUMAN RIGHTS

Social Responsibility& Human Rights Policy
Through our Supplier Code of Conduct, we seek to work with
suppliers that share our values. Requirements and expectations
include the ethics, human rights, and environmental mattersdescribed below. These standards apply to both Sensient’s facilities
and our suppliers’ facilities globally. In the event local standards ona matter do not exist or do not meet these ethical standards, Sensientand our suppliers establish employment practices and apply U.S.
standards where appropriate while complying with local law. We
reserve the right to audit the operations and records of our suppliers
to establish compliance with these standards.

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LABOR & HUMAN RIGHTS

Business Practices

Conflict of Interest

Embargoes & Trade Law

Our suppliers must conduct their businesslawfully and with integrity, including:

Our suppliers are expected to avoid and report all conflicts of interest

Our suppliers shall comply with all applicable trade

resulting from their business dealings with Sensient and to notify

laws and restrictions imposed by the United Nations,

Sensient if any Sensient employee has business, financial, or personal ties

the United States, and other national governments.

to the supplier that may influence such employee’s decisions.

Compliance With All Applicable Laws & Regulations

Conflict Minerals

Our suppliers must comply with all applicable laws and regulations

Protection of Confidential Information & Personal Information

Our suppliers must report the presence of conflict minerals

in the countries in which they operate.

Suppliers will comply with applicable privacy and data protection(as defined by 15 U.S.C. § 78m(p)), including whether the conflictlaws and ensure the protection, security, and lawful use ofminerals originated in the Democratic Republic of the Congo

Antitrust & Fair Competition

personal data and confidential information. In particular, the(DRC) or adjoining countries, in the products they manufacture

Our suppliers are expected to comply with all fair competition laws andsupplier must provide sufficient security for personal data andor contract to manufacture if the conflict minerals are necessary

not engage in illegal monopolies, illegal behavior, price fixing, collusive

confidential information processing activities that concern theto the functionality or production of a product. Sensient initiates

bidding, price discrimination, and other unfair practices. Our suppliers

products or services provided to Sensient and ensure adequate

an annual due diligence review process of our supply chain towill not knowingly participate, directly or indirectly, in any agreement

technical and organizational protection measures are in place.

ensure that products supplied to Sensient do not contain metals

that unreasonably restricts competition. Our suppliers are also prohibitedfrom abusing their market power through anticompetitive practices.

derived from minerals or their derivatives originated from conflict

Gifts

regions that directly or indirectly finance or benefit armed

Gifts to or from Sensient employees are neither expected norgroups and cause or foster human rights abuses.

No Bribery or Corrupt Payments

necessary for business relationships between our suppliers andSensient has a comprehensive Anti-Bribery Policy that requires behaviors

Sensient. Our Code of Conduct prohibits Sensient employees from

Affiliation with Governments & Government Officialsthat exceed the requirements of the United States Foreign Corrupt

giving or receiving gifts of more than a token value, loans (other thanOur suppliers must immediately disclose to Sensient any

Practices Act and the United Kingdom Bribery Act as well as most local

from established banking or financial institutions), or hospitality oraffiliation in regard to ownership or beneficial interest in alaws. Under these laws, suppliers are prohibited from corruptly paying,entertainment which could influence the employee’s independent

supplier’s business by a government or government official

offering to pay, or authorizing the payment of, money or anything of

judgement, and all gift-giving is discouraged. These prohibitions applyof more than 5%. These must be disclosed to Sensient priorvalue, directly or indirectly, to a foreign official in order to influence any

to gifts or payments made directly or through an intermediary.

to any business relationship or immediately after supplierofficial action or decision, or to obtain a business advantage. A “foreign

becomes aware of such interest; provided that if a supplierofficial” is anyone who exercises governmental authority at the local,

Management & Transparency

is a publicly listed company, supplier shall only be required

state, or national level, and may include directors, officers, or employees

Our suppliers are expected to have systems in place to track

to disclose to Sensient any such ownership or beneficialof state-owned enterprises. Our suppliers must comply with these laws

compliance with applicable laws and regulations and to investigate,

ownership interest if the supplier has actual knowledge

as well as our Anti-Bribery Policy while working on our behalf and beto the extent allowed by law, allegations of misconduct. Suppliersof any such ownership. The following are examples of

equally vigilant against bribery and corruption risks within their own

must immediately inform Sensient in writing if they are aware of any

persons who may be considered government officials:

organizations.

material noncompliance with local laws involving either the supplieror a Sensient product.

regardless of rank;Intellectual Property
Our suppliers must respect Sensient’s and third-party’s

Responsible Sourcing

Intellectual Property rights. Supplier must promptly notify

Our suppliers must disclose the country of origin for the primarySensient if supplier knows or suspects that supplier’s products,

materials for all deliveries made to Sensient. Sensient reserves theor Sensient’s use of supplier’s products, infringe any third-party

right to ask suppliers for a full supply chain map in order to facilitate

Intellectual Property rights.

risk assessments and gauge legal and ethical compliance in the
upstream supply chain. Our suppliers will be transparent about all

Cybersecurity

known facilities used to produce products or services for us andSuppliers will implement all necessary measures, and review

provide such information upon request. If requested, suppliers arethem regularly, to protect their computer systems and networks.

expected to provide reports on the presence of substances in any

They will put in place appropriate controls to identify and mitigate

materials supplied to Sensient that may be restricted by, or require

relevant cybersecurity risks.

disclosure to, governmental bodies, customers, and/or recyclers.

Sustainability Report | 2023

• Any officer or employee of a foreign government,• Employees of government-owned or government-controlled
businesses;• Foreign politicians, political parties, or candidates for office; and• Any family member or agent of the above

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LABOR & HUMAN RIGHTS

Workforce Practices
Our suppliers are expected to provide a safe
workplace, which operates in compliance withall applicable laws, and to treat their employees
lawfully, respectfully, and fairly, including:

No Child Labor

Reasonable Compensation

Our suppliers are prohibited from employing children under the age of

Our suppliers will pay reasonable compensation and benefits that,

15 years (or any higher age established by applicable law). Suppliers will

at a minimum, comply with all applicable laws and regulations.

conform to Convention 138 (Minimum Age) and Convention 182 (Worst
Forms of Child Labor) of the International Labor Organization.

Working Hours, Overtime, & Wages
Our suppliers must comply with all applicable requirements and

No Harassment or Abuse
Human Rights

limitations set by the laws of the country of manufacture and may not

Our suppliers are prohibited from harassing or abusing employees.

require excessive overtime. Overtime must be voluntary and must always

Our suppliers must respect and support global human rights, in

Our suppliers must treat their employees with respect and dignity,

be paid at the statutory rate. Employees must be provided sufficient time

accordance with the principles found in the International Bill of Humanand without harassment or abuse of any kind. To the extent permitted

each week for rest. Our suppliers must provide employees with wages

Rights, the UN Guiding Principles on Business and Human Rights, andby law, suppliers must strive to provide a workplace free of any formand benefits that, at a minimum, comply with applicable law.

the ILO Declaration on Fundamental Principles and Rights at Work.

of harassment, intimidation, or victimization, whether physical,

Global human rights are fundamental to the operations of Sensient’s

psychological, or sexual.

business. Human rights are rights, freedoms, and standards of treatment

Workplace Health & Safety
Our suppliers must provide a safe workplace for their workers including,regarded as belonging to all persons. Sensient respects and supports

Equal Opportunity & Nondiscrimination

at a minimum, adequate lighting, ventilation, potable water, andinternationally recognized human rights and is committed to highOur suppliers must provide equal employment opportunities to all

sanitary facilities. Where required or appropriate, suppliers must provide

standards of ethics, honesty, and integrity and demonstrating respect

people and will not discriminate based upon race, religion, color, sex

safety equipment, guards, and protective clothing/masks to protect

and dignity for one another and those with whom we do business.

(which includes pregnancy, orientation, identification, expression,

workers from hazardous machinery and materials, fire suppression andand all other legally protected characteristics), age, national origin,evacuation protocols, and security measures to ensure employees’ safety
while on or entering or exiting Supplier’s premises.

No Forced Labor or Trafficking

disability, veteran or military status, political beliefs, or any other

Our suppliers are prohibited from using slaves or forced labor of any kind,characteristic protected now or in the future by applicable law. Our

including prison labor, non-rescindable contracts, indentureship, or labor

suppliers are expected to value the dignity of each employee as aobtained through threats of punishment, deposits of bonds or travel

unique person with individual skills and perspectives. Suppliers are

documents, or other constraints, or engaging in human trafficking. If

expected to categorically reject individuals and ideologies that seek

Respect the right of workers to freely organize,
associate, and bargain collectively in accordancewith applicable national laws.

applicable, supplier is expected to have filed a transparency statement into sow hate, discord, and division based upon an individual’s personal

Our suppliers will comply with the requirements of all national laborcompliance with the UK Modern Slavery Act 2015. Suppliers will conformcharacteristics. Suppliers should strive to unite themselves with theirand employment laws, including all union, freedom of association,

to Convention 29 (Forced Labour) and Convention 105 (Abolition of

employees by focusing on their common humanity and by dedicating

and collective bargaining laws. Sensient will not tolerate any violation

Forced Labour) of the International Labor Organization.

themselves to the principles of integrity, professionalism, and safety.

of these principles.

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LABOR & HUMAN RIGHTS

Environmental Practices

Community Practices

Continuous Improvement

Our suppliers must treat the environment
with respect, including:

Our suppliers must treat the communities
they are in with respect, including:

Our suppliers must continuously improve theiroperations and methods. We recognize that achieving
the requirements of the Supplier Code of Conduct

Environmental Compliance

Property Rights

At a minimum, our suppliers will conduct their businesses in compliance

Our suppliers must respect property rights in the communities in which they

with all applicable laws in a way that minimizes impact to the environment.

operate and must ensure fair negotiation on all land transfers to which they

As practical, suppliers should seek to reduce their environmental impact

are a party, including free, prior, and informed consent for new developments.

beyond what the law currently requires.

Free, Prior, & informed Consent (FPIC)
Hazardous Waste Management

Our suppliers must commit to following the principles of free, prior,

Our suppliers must capture, contain, and dispose of all hazardous wastes

and informed consent (FPIC) of indigenous peoples for property or landsafely and in accordance with all applicable laws.

negotiations. All forms of land grabbing are prohibited. Adherence to theprinciples of free, prior, and informed consent of indigenous peoples is

Air Quality & Carbon Footprint

required in all negotiations for property or land, including the use of andOur suppliers will take appropriate steps to minimize air emissions

transfers of it. Land rights of individuals, indigenous people, and local(including carbon emissions) and impact on air quality, as far as possible

communities affected by sourcing practices, supply chains, and operations

and put in place practices to assess and reduce their emissions (including

must be respected.

carbon). Suppliers will provide documentary evidence of their carbon
footprint and their efforts to reduce it, if requested.

Human Right To Water
Our suppliers acknowledge that every human being has the right

Energy Efficiency

to safe, clean, affordable, and accessible water adequate for human

Our suppliers will take appropriate steps to minimize the consumption of

consumption, cooking, and sanitary purposes.

energy as well as put in place energy saving strategies (i.e., use of renewablesources and fuels, fuel-efficient logistics operations).

Health & Safety Impact
Our suppliers will seek to prevent and adequately address any adverse

Water Management & Conservation

health and safety impact of their operations on surrounding communities.

Our suppliers will take appropriate steps to minimize their impact on waterby reducing their water consumption, by ensuring groundwater quality

Indigenous People

is maintained and (where possible) improved, and by supporting water

Our suppliers will respect the rights of local communities

conservation. We also expect our suppliers to take appropriate steps toand indigenous people and their cultural heritages.

is a dynamic process and we encourage continuous
improvement within a supplier’s operations. In cases
where improvement is required, we will support our
supplier to establish clear milestones and processes
to support their achievement. Our suppliers who fail
to comply with the requirements of our Supplier Codeof Conduct may be subject to consequences up to
and including termination of business.

Violation Reporting
Our suppliers will encourage and provide means
for their employees to report concerns, complaints,
or potentially unlawful activities in the workplace, withthe option to do so anonymously, without threat ofreprisal, intimidation, or harassment. Any report shouldbe treated in a confidential manner. Suppliers shallinvestigate such reports and take corrective action if
needed. Suppliers shall notify Sensient of legal actions,administrative investigations, or prosecutions that may
affect their performance of any contractual obligations
to Sensient, or where such legal actions could adversely
affect a supplier’s or Sensient’s reputation.

provide documentary evidence of their water usage assessment if requested.

Local Sourcing
No Deforestation

Our suppliers will seek to employ and source goods and services locally

Our suppliers will take appropriate steps to ensure their actions avoid

whenever practicable.

negative impacts on forests, peatlands, and other protected areas. Whenestablishing new operations or expanding existing ones, our suppliers shallobtain all legal approvals and permissions. We also expect our suppliers tokeep documentary evidence of land use history and provide it if requested.

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Philanthropy& Community Service
Sensient is a passionate steward of the health and vitality of thecommunities in which we operate. Intentional and robust community
engagement makes certain we can retain exceptional employees

The Sensient Foundation
Sensient operates a 501(c)(3) corporate foundation that supports
non-profit charitable organizations in the areas of education,
health and welfare, culture and arts, and civic activities and thatprovides a matching funds program for qualifying employee
charitable donations. The Foundation serves local communities
and creates goodwill and trust toward the Company.

and ensure a strong social standing in the community. Whether it
is supporting local charities or helping to beautify and improve our
local neighborhoods, Sensient believes in being a good neighborand contributing to the betterment of the greater community.

Sensient’s foundation gaveover $690k in donations
to a variety of charities in 2023.
• The Foundation donated more than $150,000 to civic activities in 2023,
including local community parades and events, Children’s Centers,
Boys & Girls Clubs, the Special Olympics, emergency relief funds,
and other contributions for community support.
• The Foundation also donated $210,000 to various causes supporting health,welfare, and recovery, both in our communities and worldwide.
• In light of the humanitarian crisis following the Turkey / Syria earthquakes
in early 2023, the Sensient Foundation donated $10,000 to relief efforts,
matching the generous donation campaign of Sensient employees globally.
Donations to the Red Cross went toward immediate and long-term carefor the victims and communities impacted.
• The Sensient Foundation continues to be one of the largest supporters of the
Milwaukee Ronald McDonald House, Rescue Mission, Thrive for Life Reentry
Program, and the Women’s Care Center near our corporate headquarters.

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PHILANTHROPY & COMMUNITY SERVICE

Strengthening Communities
Sensient also sponsors volunteer opportunities for our employees to support
local charitable organizations. From the neighborhoods surrounding ourmanufacturing facilities to the fields where our products are grown, we arededicated to creating and investing in our local communities.
Some examples of our efforts include:• Over 230 Sensient employees participated• Our Lerma facility partnered with various

in various tree planting and natural preservation

local organizations throughout 2023 toevents world-wide, resulting in the planting

aid vulnerable populations such as elderlyof more than 400 trees.

community members, low-income households,• Sensient teams in Mexico initiated fundraising
drives for in-kind donations and basic amenities
for the people of Acapulco, Mexico who were
impacted by Hurricane Otis.
• In Uganda, our strategic partner employs morethan 300 families, some displaced from nearby
war-torn countries, in the growing of sustainablecrops. Sensient recently donated a seed thresher

children with disabilities, and individuals
suffering from drug addiction.
• The Sensient team in Michigan participated inor donated to 26 community events and charities
in 2023 for cumulative gifts of $1,800 for local
schools and youth programs and another$4,000 for other community support.
• Each year, our Global Flavors Innovation Center

to help the farmers mechanically harvest annatto

collaborates with the WINGS Program, the largest

seeds in a less physically demanding manner.

domestic violence service provider in Illinois,• In the Philippines, we distributed 1,400 holiday
food baskets to our butterfly pea growers, pickers,
and farm workers. We also conducted our Annual
Butterfly Pea Flower Awards to recognize ourproviding housing and other services to womenand children escaping domestic abuse. This year,
the WINGS program provided Christmas gifts anddécor to over 100 families.

growers in categories such as “most innovative,”“cleanest farm,” and “highest yield.” Our award
winners earned a small cash award, a certificate,
and a butterfly pea flower trophy.
• In collaboration with PearlFoods International,
Inc., we have initiated a project to revitalize thewater supply infrastructure for the T’Boli tribal
community in the Philippines. This partnershipaims to serve 400 households by providing
access to clean and safe drinking water,
significantly enhancing the quality of life andhealth for the indigenous population.

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PHILANTHROPY & COMMUNITY SERVICE

Educating the Future
Education puts societies on a path toward good health, empowerment, andemployment. At Sensient, we are passionate about investing in education andempowering the leaders of tomorrow to solve the issues of today. Some of thepartnerships and initiatives we were involved in this year include:

Empowering Women
Around the WorldWe are proud of the extraordinary women within our organization,
and we are passionate about furthering opportunities for women,
especially in STEM careers. This year, we continued to support
a number of impactful women-led enterprises and initiatives.

Local School Partnerships in Latin America
In one of the communities in which we operate, we

Expanding Graduate Education
in Southeast Asia

partner with a local kindergarten school to provide theLong-term partnerships and investments through ournecessary supplies and assistance they need to properly

Seed-to-Shelf ™ program ensure that we can create ameet their students’ needs. We have also engaged withlasting community impact and continue to innovate

many of the parents within the community to better

to optimize botanical color sources. Empowering andunderstand their needs and to look for ways to continue

expanding graduate research supports this mission.

to expand our involvement.

Sensient continues to sponsor the graduate research
program at the University of Padjadjaran in Indonesia

This year, along with our regular donations to the local

to support students studying and further developing

schools, our Sensient teams volunteered to paint, repair,natural colors for agronomy. This investment in theand refurbish the buildings and playgrounds of two

future of natural colors will contribute meaningfully to

local schools and provided 1,000 school supplies to a

the world of color from botanicals and we are excited tocare center for children with disabilities. Additionally,

see what these enthusiastic young scientists discoverin conjunction with a local NGO, Sensient employees

through their studies. Sensient currently sponsors anprovided nearly 500 meals to families of the nearby

annual $20,000 Graduate Student Scholarship Grant forcommunity in late December.

Masters of Science and PhD students at the University of
Padjadjaran, Indonesia.

Supporting Growers’ Families’
Education in the Philippines
Our commitment to responsible sourcing means westrive to improve the quality of life for our growers andtheir families. We regularly finance high school andcollege scholarships to the children of contract growers in
the Philippines. In addition, we awarded laptops, printersand other supplies to an Alternative Learning Systemschool established by one of our consolidators on her
farm. Because of this school, farm workers get a chance
to pursue elementary and high school education

Women Owned & Operated Farms
Sensient’s global agronomy Seed-to-Shelf ™ program
empowers women, one botanical at a time. In Southeast
Asia, we have partnered with a farm owned and operated
entirely by women to grow our natural blue botanical.
Each woman is empowered to independently run
her own part of the farm. These women are given thenecessary tools and knowledge to enable them to growa productive crop, become efficient pickers, and operate
healthy and clean plots. They also learn to weave baskets
for harvesting the crops and sell them in the community
to generate additional income for their families.

Supporting Indigenous Women in STEM
The native agriculture and food sector is fundamental
to indigenous cultural and social identity. The lack ofparticipation by indigenous people (and women inparticular) is likely impacting their ability to secure
economic, health, cultural, and social benefits forthemselves and their communities. To help combat thisissue, our Australian business continues donating to
the “Indigenous Entrepreneurship & STEM Native Food
Project,” a partnership between Food Futures and otherlocal organizations. The program focuses on developing
entrepreneurship pathways while integrating culturalconnections and the development of new knowledge
and skills in a range of STEM disciplines(similar to GED).

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83

Corporate Governance,
Legal Compliance,& Risk Oversight

CORPORATE GOVERNANCE, LEGAL COMPLIANCE, & RISK OVERSIGHT

Corporate GovernanceSensient’s Board of Directors is responsible for overseeing the management of Sensient’s businessand affairs, including management’s establishment and implementation of key strategic priorities andinitiatives. Long-term, sustainable value creation and preservation are possible only through the prudent
assumption and management of both risks and potential rewards. Sensient’s Board takes a leadingrole in overseeing Sensient’s overall risk tolerances as a part of the strategic planning process and inoverseeing Sensient’s management of strategic risks.

Board of Directors Committee Oversight
The Board has delegated to the Audit Committee

Additionally, the entire Board, along with five non-director

primary responsibility for overseeing management’s risk

members who are recognized food science or food safetyassessments and implementation of appropriate risk

experts, participates in the Scientific Advisory Committee,

management policies and guidelines, including thosewhich monitors and reviews new product development

related to financial reporting, regulatory compliance,

programs, industry trends, and technical and regulatory

and litigation risk mitigation. It has delegated to theissues related to Sensient’s product lines. The Board

Compensation and Development Committee primary

and these committees receive periodic reports on theseoversight responsibility to ensure that compensation

matters from management and personnel in charge ofprograms and practices do not encourage unnecessary

the related risk management activities. Furthermore,or excessive risk-taking and that any risks are subject tothe Board has direct access to all executive officers ofappropriate controls. It has delegated to the Nominating

Sensient and routinely receives presentations from Groupand Corporate Governance Committee primary oversightPresidents, General Managers of the various business

responsibility to ensure that Sensient’s governance

units, technical leaders, and product safety leaders.

standards establish effective systems for monitoring
and accountability as well as over environmental

The Board, through the Audit Committee, oversees aperformance and for matters relating to Sensient’s

number of activities undertaken by management toEnvironmental, Social, and Governance efforts, including

monitor financial reporting risks and internal controls.

the Company’s Sustainability Strategy, this Sustainability

Those activities include regular audits of significant

Report, and oversight of climate risk (see sections on

business units by Sensient’s Internal Audit Department,“Climate-Related Governance” and “Climate-Related

annual audit and quarterly reviews by Ernst & Young

Risks & Opportunities”). It has delegated to the Finance

LLP, an annual internal control audit by Ernst &Committee primary oversight responsibility with respect

Young LLP, and, when needed, special investigations

to Sensient’s capital structure, insurance program, use

directed by the Director of Internal Audit and Generalof swaps and other derivative instruments, and foreignCounsel of any unusual or irregular activities.7

currency management. The Board has assumed direct
responsibility for Sensient’s product safety, personnel
safety, physical security, human capital management,
and cyber and intellectual property security programs.

For more information about our governance structure, please refer to our 2024 Proxy Statement,

7

the Governance page on our website, and our Corporate Code of Conduct.

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85

CORPORATE GOVERNANCE, LEGAL COMPLIANCE, & RISK OVERSIGHT

Legal Compliance
The Board has updated and implemented a number of robust policies andcompliance programs to address various areas of legal and regulatory risks,
including the following:• Corporate Code of Conduct (available in all languages
used within the Company), which includes:
o Antitrust Compliance Manualo Anti-Bribery Policy
o Company Confidential Information Policy
o Conflict of Interest Policy
o Cybersecurity Principles
o Director Confidentiality Policy

The Board has implemented, formalized, andupdated internal policies and compliance programswith respect to various regulatory matters,
including Environmental, Health, and Safety(EHS) and intellectual property management.
In addition to providing annual Sensient-wide training
on the Code of Conduct, the Board has ensured thato Insider Trading Policy

targeted training on each of the other complianceo Records Retention Policy

programs is conducted for all appropriate employees.

o Supplier Code of Conduct

The Code of Conduct includes, among many other rules,• Securities Compliance Manual• Cybersecurity Policy• Global Privacy Policy• Sustainability Report• Export Compliance Policy• Food Safety/Recall Manual• Physical Security Policy

strict integrity, professionalism, safety, and personnel
policies to prevent harassment, discrimination, andretaliation, as well as strong and routinely publicizedviolation reporting protocols. Additionally, the Audit
Committee receives a quarterly update from the GeneralCounsel on all reported Code of Conduct violations,which includes a summary of every investigation
conducted of an alleged Code of Conduct violationand the disposition of each investigation. To ensure all
employees understand the importance of the Code of
Conduct, violations and dispositions are also reviewed
with employees and the CEO publishes an internal blog to
all employees explaining each violation and emphasizing
the importance of adhering to the Code of Conduct.
When we say that we have zero-tolerance fordiscriminatory or other bad behaviors, we really mean
it. Once again this year, every confirmed violation of theSensient Code of Conduct resulted in termination.

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CORPORATE GOVERNANCE, LEGAL COMPLIANCE, & RISK OVERSIGHT

Risk Oversight
Cybersecurity

Product Safety

Chemical Risk Strategy

Environmental, Health, & Safety

The Board oversees Sensient’s

The Board oversees a robust program relating to product safety,

The Board oversees the Company’s Chemical Risk

The entire Board has oversight ofwhich includes the following elements:

Strategy, which we implemented in 2015 to identify,

policies and operational controls

assess, and manage risks associated with potentiallyof EHS risks through the following:

Cybersecurity Program, including
the following elements:• The Board has defined high-riskcybersecurity areas for the Company
and implemented comprehensive
programs to address these risks.

• Management reports at least twice
annually to the Board of Directors
on cybersecurity progress andeffectiveness.

• The Company has formed an executive
level steering committee (including
the CEO, CFO, Group Presidents,
General Counsel, VP, Human Resources,
Controller/Chief Accounting Officer, andChief Information Officer) that provides
oversight and routinely discusses
cybersecurity matters.

• The Company has implemented anannual employee training program,
regular cyber executive incident
response simulations, and regularcyber penetration testing.

• The Company has made significant
investments in our technicalcapabilities in all areas of security.

• The Board receives a report on productsafety related issues at each meeting.

• Maintenance and update of a Food

Safety/Recall Manual, which the Boardof Directors reviews annually.

• Sensient also conducts key

vendor quality assurance inspections

is led by our CEO and Director Dr. Ferruzzi and SAC

directly or by third-party accredited

member Dr. Eric Decker. Sensient’s Chemical Risk Strategy

auditing organizations.

is a risk mitigation program that is designed to identify• Environmental monitoring• Annual mock recall drills.

program to screen our manufacturing• All product safety issues are reported

for contamination.

to the CEO, and Sensient’s head of

product safety and quality is a direct
report of the CEO. In 2021, the Board
formalized the existing practice of the
CEO reporting product safety issues tothe Board in a written policy, which sets
forth specific reportable events and atimeline for required Board notification
when a product safety issue occurs.

• Sensient has established guidelinesfor Good Manufacturing Practices(GMP) and Hazard Analysis and CriticalControl Points (HACCP), and, since
1999, conducts comprehensive productsafety audits, including GMP/HACCP
audits, at all of our food ingredient
manufacturing facilities.

• Comprehensive and robust raw

material approval processes are inplace to ensure product safety.

• Raw materials and finished goods
are analyzed for compliance withharmful chemicals in products. This ongoing programfacilities, equipment, and personnel• Sensient develops and implements
corrective action plans for all

internal, customer, and third-party
audit deficiencies.

• Sensient monitors industry violations
and shares details of such violations
with its customers.

• In-house compliance attorney who is

continually engaged with the business
units on product regulatory matters.

• CEO and Group President
plant inspections.

• Food defense plans in place at all of ourfood ingredient manufacturing plants.

• In 2023, no Sensient products
were recalled.

chemicals used by Sensient that are, or may soon become,a legal, regulatory, safety, or litigation risk and take action
to mitigate risk to Sensient.
OUR CHEMICAL RISK STRATEGY HAS SIX COMPONENTS:• A robust EHS program managed
within the Legal Department.
• Regular EHS audits at every
manufacturing facility by an outside
consulting firm.
• In-house compliance attorney who is
continually engaged with the business

IDENTIFY

units on environmental compliance

Identify all potential chemical risks as soon as possible.

and personnel safety matters.

PROTECT• The Board receives a report on

Ensure our workers are protected from potential

personnel safety related issues atchemical risks with engineering controls (e.g., ventilation),each meeting.

administrative controls (e.g. safe work procedures andwarnings), and/or state-of-the-art personal protective
equipment, as necessary.

• Annual Board review of Company’s
EHS program.

WARN
Ensure adequate warnings about potential risks areappropriately communicated to our customers.
REFORMULATE
Reformulate products if possible, using less-risky chemicals.
INNOVATE
Develop a safer alternative to the risky chemical.
ELIMINATE
Where reformulation is not possible and warnings
cannot mitigate risk, stop selling products containing
the risky chemical.

specifications prior to use andshipment, respectively.

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CORPORATE GOVERNANCE, LEGAL COMPLIANCE, & RISK OVERSIGHT

Risk Oversight

EthicsReporting Violations

Human Capital Management

Sensient’s Code of Conduct directly addresses

Sensient exercises due diligence in attempting

The Board oversees the Company’s Human Capital Management
program, including the following elements:

our requirements and policies related to ethics

to prevent and detect unethical or unlawful

management, including:conduct by our employees or suppliers.

• The Company seeks to benefit from the full spectrum• The Company regularly communicates and rigorously

the needs of our customers and the communities in

professionalism, and safety, which encompass anwhich we operate. To this end, the Company has aunwavering commitment to equal opportunity anddedicated, internal Talent Acquisition team that sources

non-discrimination, and which underpin the Company’s

talent from a broad range of backgrounds and utilizes

strategy to draw from the fullest set of talent possible.

emerging technology, guided by a deep understanding• The Board of Directors reviews the Company’s Humanof human talent, hiring the best talent and reflectingof the Company’s business objectives and core values ofintegrity, professionalism, and safety.

• The Company closely monitors and demands excellencein our on-boarding process, to ensure all new hires
have the tools, training, Company knowledge, andmanagement support necessary to succeed in theorganization from day one.

enforces our non-negotiable expectations of integrity,• antibribery and anticorruption;issues through the procedures outlined below.

• conflicts of interest;(though not required) by the SEC’s

Anyone who has knowledge of potential

Capital Management program on an annual basis.

• compliance with all of the laws, rules, andthe Code, Supplier Code, Sensient policies, and/• Under the Company’s Code of Conduct, a Company

countries, and of the states, counties, andlawyer (or designated outside counsel outside the U.S.)

regulations of the United States and other
cities where we do business.

must review and approve all employee terminations
to ensure they are warranted and compliant with allapplicable laws.

Sensient provides training on our Code of Conduct –employment. All current employees must take this training
annually. Failure to comply with the law and our antitrust

the pipeline for leadership roles and implement

The Board also oversees other Company

disciplinary action, up to and including termination.

development plans for key talent.

programs in order to monitor and limit

Program to provide a robust internal pipeline of talent
for high impact roles in the organization.

• The Company facilitates the development andprogression of our workforce through goal-setting,performance evaluations, individual development
plans, leadership training, and ongoing individualizedcoaching and development.

law, could result in criminal and civil penalties as well as

legal and regulatory risks, including:Sensient assesses and monitors the risk of corruption,• A strong Regulatory Affairs department

bribery, and anticompetitive practices on an ongoing basis,to the General Counsel.

• A corporate physical security program led bya retired Secret Service Agent, who reports
to the General Counsel.

• In-house securities attorney.
• Legal Department review of all contracts.

following channels:• Report in-person to a manager/supervisor
or Legal teams.

Other Legal and Regulatory Risks

the Flavorist Trainee Program, and the High Potential

report the suspected violation through one of theand competition – to all employees through our online
employees take the online training during their first days ofoverseen by a Vice President, who reports

or applicable law and regulations must promptly

or a member of Sensient’s Human Resources

policy, including a failure to report a known violation of thethe General Management Development Program,misconduct, unethical activity or violations ofincluding on the topics of corruption, bribery, antitrust,and in-person Code of Conduct training. All new

reward high performers and retain talent.

such as the Sales Representative Trainee Program,Internal reporting is also explicitly encouraged• insider trading; andis providing market-competitive offerings designed to• The Company utilizes internal development programs

misconduct and resolve any misconduct

whistleblower bounty rules.

compensation and benefit programs, to confirm that itorganization-wide on an annual basis to evaluate

Employees are required to question possible• equal employment opportunity;• The Company maintains and reviews annually our• The Company conducts succession planning• antitrust and competition;

under the oversight of the Board of Directors. There were no
instances of corruption, bribery, or anticompetitive practices
during the 2023 financial year.

• Email supplierconcerns@sensient.com forany supplier code of conduct concerns.
• Call the violation hotline at 414-347-3897 forany possible violations.
• Complete the online form within Sensient’s
intranet (for employees only).
All employees are required to cooperate
fully in any investigation of a potential violation,and they receive periodic training on the provisionsof the Code. The Code and the periodic training
are designed to give employees the tools they needto help Sensient comply with applicable laws and tooperate consistently with high standards of businessand personal ethics. This avoids actions that could
cause harm to Sensient and communicates to ourshareholders and the community that we manage
our business conduct as diligently as we manage
our business operations.

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Climate-Related
Governance

CLIMATE-RELATED GOVERNANCE

Board OversightSensient seeks to be a leader in environmental sustainability and is committed to theprinciple of sound environmental stewardship, which encompasses issues concerning our
climate. The Board has delegated to the Audit and Nominating and Corporate GovernanceCommittees responsibility for overseeing risk, including climate-related and governancerisks. The Nominating and Corporate Governance Committee has responsibility for oversightof environmental performance and for matters relating to the sustainable management of
Sensient’s business activities.

Board Oversight
Process & Frequency

Nominating & Corporate Governance Committee

Management Oversight
Sustainability Steering Committee
Risk Management Committee

Environmental, Health, & Safety
Corporate EHS Team

Sensient manages sustainability through an

Climate Concerns in Company
Strategy & Performance Objectives

interdisciplinary approach, with the Nominating and

The Board of Directors endeavors to consider

Corporate Governance Committee primarily tasked withclimate-related issues when making large, strategic

the oversight of matters relating to sustainability. The

decisions, including with respect to annual budgets,

Committee reviews the Company’s environmental andbusiness plans, major capital expenditures,

safety performance and monitors the progress of climate-acquisitions, and divestitures. All major decisions

related goals periodically at its Nominating and Corporate

made by the Board of Directors allow for the Board’s

Governance Committee meetings. The Committee reviews

input on climate and sustainability-related issues

compliance with internally established sustainability

and opportunities. In addition, when implementing

principles, analyzes the impact of environmental trends,

appropriate risk management policies andreviews potential climate-related risks, and considers

guidelines for Sensient, the Board contemplates

the adoption of new sustainability goals. In addition,

climate and sustainability risks. When reviewing

the Nominating and Corporate Governance Committee

its governance standards, the Nominating andreceives periodic updates from management detailing all

Corporate Governance Committee does the same.

potentially relevant climate risks and sustainability issues.
Our management is responsible for monitoring theBusiness UnitsBU Leadership, Sustainability Engineers & Analysts, ESG Working GroupThe full Board annually reviews overall strategy relating

progress of climate and sustainability goals as partto sustainability and conducts formal strategic reviews atof its ongoing duties. For the Board of Directors toeach meeting. The Nominating and Corporate Governanceassess the progress of climate and sustainability

Committee reviews management’s sustainability goals

goals, the Nominating and Corporate Governanceand assessment of climate-related risks and reports to

Committee recommends performance objectives.

the Board on its review. These goals include targets for

The Board reviews management’s performance,

improvements in energy efficiency, water efficiency,

reports, and data to ensure objectives are being met

and waste reduction, as well as goals to strengthen

and periodically discusses the status of climate andthe traceability of our supply chain and to design

sustainability targets.

products that support our sustainability ambitions.

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CLIMATE-RELATED GOVERNANCE

Management OversightManagement plays the primary role in the

Risk Management Committee

Environmental, Health & Safety (EHS)The ESG Working Groupoversight and implementation of climate

Risk assessment and risk management oversight are the

The Corporate EHS team works closely with the

In 2020, we established an internal ESG Working

and sustainability risks, opportunities, andresponsibility of the Company’s management. The Risk Committee

Sustainability Steering Committee and each individualGroup that encompasses employees from allgoals, as well as execution of the Company’s

is comprised of key members of management and provides

facility to ensure that climate-related risks andSensient business units and departments to more

Sustainability Strategy.

administrative oversight to existing internal risk management

opportunities are identified and monitored within each

effectively advance our sustainability initiatives.

processes and risk mitigation programs, including product safety;

business unit and that our environmental disclosures areThis group meets on a routine basis to discuss ESG

environment, health, and safety; physical security; commercial;accurate and credible. They collaborate with site-level EHS

matters, including any site-specific issues or any

financial; cyber security; legal and regulatory compliance; corporate

personnel to ensure that the requisite climate risk tools,

opportunities for collaboration and advancement,

governance; and sustainability and climate-related risks. The

processes, and procedures are developed and integrated

both environmentally and socially. The efforts

Committee meets and reports the results of its activities andinto the Company’s EHS Management System.

of the ESG Working Group allow for more

recommendations for any changes to the CEO at least annually.

The Corporate EHS department reports to the Director

meaningful impact as we pursue a consolidated

The General Counsel reports to the Audit Committee regardingof EHS, who is also a lawyer within our Legal Department,sustainability strategy across our entire company.

the risk mitigation activities of the Company at least annually.

and reports to the General Counsel.

Through the ESG Working Group and Sustainability

CEO
The CEO is the highest management-level
position responsible for both assessing
and managing climate and sustainability
risks and opportunities. The CEO regularly
reports to the Board of Directors on suchmatters. Examples of recent initiatives with asustainability impact led by the CEO include:

Steering Committee, we are constantly evaluating

Sustainability Steering Committee

Senior Management

new ways to drive sustainability in our day-to-

The Sustainability Steering Committee (SSC) is a cross-functional

Climate and sustainability issues, along with productday operations and reduce our environmental

Risk Reduction Strategy, which works tomanagement leadership team chaired by the General Counsel.

and chemical management, are monitored at all levels

impact in the areas of energy consumption,

proactively identify, mitigate, and eliminate

The SSC meets monthly and provides strategic leadership andof the Sensient organizational structure, which collectively

generation of waste materials, and water

potential hazards associated with the use

guidance to help the Company execute on our Sustainability

is comprised of a diverse team of leaders. Having climate

consumption. Not only will these efforts reduceof certain chemicals;

Strategy and to help us achieve our environmental sustainability

and sustainability issues assessed throughout theour environmental footprint, they will also

goals. The SSC has the following authorities and responsibilities:

corporate structure allows for an improved understanding

allow us to operate more cost effectively and• Review and evaluate the Company’s Sustainability Strategy.

of related risks and opportunities.

provide greater returns to our shareholders.

• Develop an action plan to execute on the Company’s

Management is informed about climate and sustainability• The implementation of our Chemical• The implementation of our CertaSure™
program, which establishes voluntary FDAlike quality and safety standards for natural
colors (which are otherwise only lightly
regulated); and• Our Seed-to-Shelf ™ Program, whichseeks to ensure exceptional traceability
for the Company’s natural botanical andagricultural raw materials.

Sustainability Strategy.

• Review all sustainability-related capital expenditure projects
prior to approval.

• Through the General Counsel, provide updates to theNominating and Corporate Governance Committee on
progress associated with sustainability goals.

• Identify, evaluate, and monitor sustainability/environmental

goals and strategy through periodic communications
with the Sustainability Steering Committee and throughthe Company’s annual sustainability reporting. All
management personnel, including Group Presidents
and General Managers of the various business units, areresponsible for monitoring climate and sustainability
related risks and opportunities as part of their ongoing
duties and job responsibilities. Each Sensient business
unit is responsible for integrating sustainability issues,

issues, risks, laws, regulations, shareholder and governmental

as appropriate, into day-to-day operations, project

pronouncements, and other trends that could affect thedevelopment, and decision-making.

We are constantly evaluating
new ways to drive sustainability
in our day-to-day operations
and reduce our environmental
impact in the areas of energy
consumption, generationof waste materials, andwater consumption.

Company, customers, and other stakeholders.

• Ensure the Sustainability Strategy and the Company’s overall
strategy are aligned and that appropriate internal policies andprocedures are in place to support strategy execution.

• Oversee communication of the Sustainability Strategy tointernal and external stakeholders.

Management is responsible for reporting on the
Company’s environmental, social, and governance efforts,
which may include updates on climate and sustainability
progress, to the Board of Directors and the Nominating
and Corporate Governance Committee on at least aquarterly basis.

• Make budget allocation recommendations for capital
expenditures on sustainability projects.

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CLIMATE-RELATED RISK & OPPORTUNITIESClimate-Related
Risk & Opportunities

Climate-Related Risk Management
Risk Identification Process

After risks or opportunities are identified and assessed,

Sensient’s process for identifying and assessing

management recommends, reviews, and formulates

climate and sustainability risks and opportunities

responses or action plans to the associated risk or

is integrated throughout the corporate structure,opportunity. Management tailors the response towith oversight from the Nominating and Corporateeach new risk or opportunity given the Company’s

Governance Committee. Climate change is viewed

values, past experiences, and overall objectives andas a potentially existential risk and Sensient treats itprioritizes our responses based, first, on the relevancewith the requisite care. The Sustainability Steering

to our five pillars and sustainability strategy andCommittee, chaired by the General Counsel, monitorsthen on the ‘impact to cost’ ratio of the response,

and reviews emerging climate-related regulatory

giving precedence to responses that most effectively

issues among other energy and environmental

mitigate risk at the lowest cost. The Nominating andmatters. Additionally, the CEO regularly speaks

Corporate Governance Committee’s review of thewith Sensient’s Legal Department and otherrecommended plan depends on the significance of

relevant experts to identify potential climate risks

the risk and whether the identified risk is a short-,

and opportunities. In discharging its risk oversightmedium-, or long-term risk.

responsibilities, the Nominating and Corporate
Governance Committee also speaks periodically with

Once approved, the Company implements thethe General Counsel, who monitors climate-related

risk response plan. The Nominating and Corporate

lawsuits filed against other corporations, to identify

Governance Committee periodically reviews theany developing risks.

effectiveness of the plan in delivering the intended
risk reduction and addresses any shortcomings in

Climate risks are assessed based on the magnitude

the procedure to manage the identified risks. If any

and likelihood of impact, potential financial impact,

shortcomings are recognized, the Nominating andreturn on investment, scale of capital costs or

Corporate Governance Committee requests that

operational expenditures, and potential for disruption

management formulate an amended response

or delays in production.

or action plan.

Risk Management Process

Integration with Enterprise Risk Management

Climate risks are assessed in a similar manner as

The identification process for climate-related risks

other risks. Generally, management – including

and opportunities is incorporated into the larger risk

members of the Sustainability Steering Committee,

management framework of the Company. The Risk

Business Unit General Managers, and Group

Committee is responsible for providing the oversightPresidents – assess the likelihood that a risk willin identifying all material risks to the Company.

materialize against the potential impact of the risk

The Nominating and Corporate Governancewhen deciding whether to accept, transfer, or control

Committee reviews all risks identified andthe risk. Management’s assessment involves a review

approves the responses.

of the relevant data, evaluation of the literature, anddiscussion with key personnel. When considering
the weight of a risk, management also evaluates
whether significant capital expenditures or increased
operating costs will be required to address it.

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CLIMATE-RELATED RISK & OPPORTUNITIESClimate-Related Strategy

Climate-Related Risks & Responses

Once climate-related risks and opportunities have been

CURRENT REGULATIONMARKET

CHRONIC PHYSICAL

identified and assessed throughout the organization and ourCurrent regulations can affect costs in our operations

Sensient operates in a complex and diverse supply

It is imperative that we continually identify

and supply chain. Legal and regulatory compliance is achain. Therefore, climate change has the potential tolong-term climate-related risks, such asprioritize our climate-related strategy and action plan:

key part of our Code of Conduct, as we cannot operateincrease our risk to market disruptions and changes

sustained higher temperatures and changing• Sensient defines, for the purposes of risk assessment, short-term

if we do not comply with all applicable laws, and wein consumer behavior. Our success depends, in large

precipitation patterns, to our business andregularly monitor for operational compliance within ourpart, upon our ability to identify and analyze market

respond accordingly. In addition to managing

operations globally.

trends affecting our business and to anticipate andphysical threats to the sourcing of our raw

respond in a timely manner to changing trends andmaterials, we implement long-term capital

EMERGING REGULATION

customer demands in order to maintain and attract

expenditure planning. For example, when

Our legal team as well as our quality and regulatory

customers. Our marketing teams use internal andlooking to upgrade or change our production

teams continually monitor emerging regulations at

external consumer insights to evaluate a wide-variety

processes, design approaches, or agricultural

the international, federal, state, and local levels toof risks in order to predict and stay ahead of market

practices through a capital investment, we takeunderstand the possible future implications for our

trends and disruptions.

into account how these changes influence ourvalue chain, we use the following definitions as guidelines to

as a period from zero to two years, medium-term as a period fromtwo to 10 years, and long-term as a period from 10 to 30 years.

• We define ‘substantive financial impact’ when identifying or8assessing climate-related risks and opportunities in both our direct
operations and supply chain as any change that would significantly
affect our business, operations, revenue, or expenditures.

resilience to chronic climate-related risks andcosts and ability to operate. Our legal team follows
emerging regulations relating to climate-related

REPUTATION

develop a scheduled capital expenditure plan

Our assessment to determine which risks and opportunities,

disclosures to ensure we are prepared to comply if

Integrity is the cornerstone of our Code of Conduct,

for timely implementation.

if any, meet this definition of ‘substantive financial impact’ is included

mandatory disclosures were to go into effect. As awhich is the foundation of our strategy. Our reputationin our risk management process as defined on the previous page.

public company that operates internationally, Sensient

is a key part of our value proposition, and for thatis currently preparing for compliance with the European

reason, we include climate-related risks in our overall

Union’s (EU) Corporate Sustainability Directive, the EU’s

business strategy. This includes the potential risk ofDeforestation Regulation, and California’s SB253 andchanging consumer preferences, stigmatization of theSB261 and monitoring other proposed regulations.

flavor and color industry, and related effects on talent

Once the relevant board-level and executive-level committees identify
potential risks and opportunities, management further evaluates therelevant data, the likelihood of the risk or opportunity materializing,
and whether, and to what extent, our operations, revenue, or
expenditures could be impacted.

acquisition. We regularly engage with our customers
LEGAL

and investors regarding our environmental impact

As disclosure expectations continue to evolve, ourand how we integrate climate-related risks into ourlegal team is constantly tracking regulatory changes

business and overall strategy. We know that if we failas having a substantive financial or strategic impact on our business.

to ensure that we are prepared to make all required

to maintain integrity and transparency in our productHowever, the potential risks and opportunities listed in the chart on thedisclosures, comply with all applicable regulations, andand process sustainability claims, we will lose trust

following page were evaluated. We will continue to monitor potential

manage related outside litigation risks. Our legal teamwith our customers.

risks and opportunities on an ongoing basis and will update ouralso works with outside ESG and Securities counsel on

In our 2023 assessment, we did not identify any climate-related risks

conclusions as appropriate.

''Substantive” as used in this report is used within the context of the CDP reporting
framework and is different than the definition in the context of filings with the Securities
and Exchange Commission. An issue deemed substantive for purposes of this report
may not be considered substantive or material for reporting purposes under U.S. federal
securities laws, including in filings with the Securities and Exchange Commission.

8

these matters.

ACUTE PHYSICAL
Any event, including climate change, that causes

TECHNOLOGY

disruptions or delays in our production or our supply

We anticipate the risks that come with the transition to

chain could increase costs and reduce revenue.

lower emission technology, including the higher costs

Given our reliance upon botanical and agriculturaland various decreases in production capacity. In the

raw materials, we remain acutely aware of physicalcontext of our risk assessment, we plan to source asthreats to our raw material sources, which directly

much power from sustainable sources and implement

impact our production capabilities. Our natural colors,

energy-efficient equipment as is financially andflavors, extracts, and essential oils businesses are

physically feasible. We believe the business will be mostdependent on favorable climatic conditions and the

secure during this transition if we are actively searching

non-occurrence of natural disasters. For example,

for new ways to be more sustainable while maintaining

our Natural Ingredients business has significant

strong financial performance. This will be an iterative

operations in California, which has been dealing withand incremental approach to ensure the wisest

drought conditions and water supply issues. Throughinvestments in technology that sufficiently meets ourour seed-to-shelf program and other operational

needs, and the needs of our customers, and to mitigate

investments, we collaborate with our suppliers to

the risks of high costs and an unsuccessful transition.

implement best practices for minimizing risk exposureand ensure technological and procedural flexibility
within our own operations.

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CLIMATE-RELATED RISK & OPPORTUNITIESClimate-Related Opportunities & Responses

Impact on Financial Planning

RESOURCE EFFICIENCYMARKETS

Climate-related risks and opportunities, once identified and evaluated, influence our financial

The growing interest in responsible action toEach new regulation implemented adds complianceplanning process each fiscal year. We consider questions such as “where should we look to plant

confront the risks of climate change has led to thecosts (often substantial) to the company, but as wecrops this year and in future years?”, “how might a physical risk like droughts or high-water stressdevelopment of increasingly efficient technologies,

work to comply with emerging regulation across theimpact the operating expenses or long-term capital needs in certain regions?”, or “how mightinnovations, and services. While the technologies

globe, we have the potential to position ourselvestransition risks like increased emissions-reporting obligations increase our indirect operating costs

needed for us to confront our largest emissions

as a more attractive and more compliant suppliersources are not yet cost effective, we are taking

for customers in those markets. For example, as

related to emissions analysis or legal and regulatory management?” The Company then considers

advantage of this opportunity to implement

an international public company, we are subject toequipment and procedures to reduce our energy use,

many proposed regulations that would be costly

water withdrawal, and discarded waste where we canto comply with but would also provide increased

To provide a few examples:

and thereby reduce our operating expenses. Further,transparency to our customers, investors, and other

we endeavor to continue to identify and capitalize on

stakeholders. Many of our customers will also need

• When considering operating costs during financial• Our R&D teams are directed to consider sustainability inthe increasingly available governmental and service

to comply with these regulations or otherwise haveplanning, we closely monitor and evaluate globally

all innovations projects and to develop resource efficient

provider incentives to encourage sustainability-driven

sustainability priorities that rely on supply chain

the price of energy in order to determine whichand sustainability certified products. The budget reflects

upgrades and advancements at each of our locations.

visibility. Another advantage is reputational benefit,

Sensient manufacturing facilities could be affected.

this strategy; we allocated 14% more toward R&D in 2023

which could lead to growth in our business and
ENERGY SOURCE

more attractive opportunities for potential talent.

We plan to source as much power from sustainablesources as is financially and physically feasible. ThisRESILIENCE

ambition requires a challenging initial investment

Our commitment to long-term sustainability

but would result in both emissions reductions andstrategies and responsible business practices

an increased control over electricity availability as

will lead to long-term resilience against water

concerns over grid reliability become more common.

shortages, agricultural supply threats, sustained

Ten of our manufacturing facilities either have solar

high temperatures, and other physical risks. The

panels on site or are in the process of developing

advantages of sustainability-driven decisions are

solar panels on site, and six of our manufacturing

particularly appealing for a business working

facilities obtain energy from a grid that is 85%+

within the food and agricultural industries. We

renewable.

have embraced this opportunity by engaging with
our suppliers on climate-related issues to better

PRODUCTS AND SERVICES

understand their environmental footprint and

The development of Pillar 5 in Sensient’s

community impacts, while seeking new businesssustainability strategy is a reflection of our climate-opportunities in the value chain. These initial forms

related opportunity assessment. The shift inof engagement signal the beginning of increased

consumer preference for low-carbon, resource

collaboration and expectations within our value

efficient, and sustainably sourced products

chain. Further, we have partnered with, andopens up opportunities for new and growing

continue to seek partnership with, customers alongmarkets, particularly for our natural colors andour value chain to collaborate on environmental

flavors product lines. By the end of 2024, we will

projects such as efficient farming practices andincorporate our new sustainable product design

innovative technologies that create shared value.

checklist into 100% of our innovation projects.

this analysis in the forecasts, budgets, and strategies that impact our operations, capital projects,
products, research and development investments, supply chain management, and business structure.

• When evaluating capital expenditures, we consider
the sustainability-related benefits of proposedcompared to 2022.

• As discussed in our 10-K, any event causing a disruption

projects in our decision-making process. Every capitalor delay of imports from foreign vendors, our contracted

appropriation request at Sensient must include

farmers, or our production facilities could increase the cost,

the quantified net impact of the project in terms

reduce the supply of needed raw materials available toof waste generation, water efficiency, electricity

us, or result in excess inventory if merchandise is received

usage, and fuel usage. This updated process allows

after the planned or appropriate selling season. We invest

us to better track our capital expenditures from anin supply chain solutions, including vertical integration, toenvironmental perspective while also prioritizing

mitigate the potential impacts.

more sustainable projects over others.

• Our five-pillar sustainability strategy directly• Also discussed in our 10-K, compliance with regulationis costly. The more regulations, the more cost.

influences our corporate business strategy and

The more cost, the more expensive our products become,budgets, which means site-level operations arepotentially making them less competitive and reducing

directed to reduce emissions, water, and waste

the Company’s profitability and ability to return capitalalongside their financial objectives.

to our shareholders.

We generally determine which risks and opportunities to prioritize by their relevanceto our five pillars and sustainability strategy and then by the ‘impact to cost’ ratio of
the response, giving precedence to responses that most effectively mitigate risk at thelowest relative cost. For example, investing in clean-in-place technology and installing
additional water meters at all production facilities both directly address opportunities
built into our Sustainability strategy, but the clean-in-place technology makes the larger
estimated water reduction relative to its cost. In this example, though we are currently
acting on both opportunities, we would prioritize the clean-in-place technology.

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CLIMATE-RELATED RISK & OPPORTUNITIESImpact on Strategy

Impact on BusinessAs explained in Our Commitment to Sustainability, Sensient has integrated a Sustainability

Climate change has the potential to impact our businesses in different ways

Strategy and the underlying materiality assessment into our decision-making process.

depending on the raw materials used in the production of our products andThis strategy, approved by the Nominating and Corporate Governance Committee, further

their end use. Some of our brands are well-positioned to capitalize on the growth

influences the business strategies implemented across our corporate structure and isof sustainability-driven markets, so our strategy explicitly includes initiatives toincorporated into the larger risk management framework of the Company.

design products with lower environmental impacts across the value chain andto ensure safer, more sustainable sourcing. Our response to climate change

Our materiality assessment drives the prioritization of our decisions, and the Sustainability

has been guided by a review of the areas where we can have the biggest

Strategy capitalizes on our ambitions. The Sustainability Strategy includes five pillars:

impact on mitigating climate risk or benefiting from climate opportunity.

1. Reduce greenhouse gas emissions

Some highlights include:

2. Increase water efficiency
3. Reduce waste• Our Personal Care business utilizes an• Our Flavors business, in parallel

innovation platform dedicated to thewith our Food Colors business,

5. Design more sustainable products

creation of not only natural – but also

continues to expand theirbiodegradable and renewable – products,‘clean label’ library of products.

Because of the strategic initiatives that accompany each of these pillars, the overall

meeting consumer demands for

Products with a cleaner label andsustainable and clean-label offerings.

familiar ingredients are often

4. Build a more sustainable supply chain

business strategy and risk management framework of the Company include plans forcapital investment in resource-efficient technology, development of certified sustainableproducts, implementation of a sustainable product design checklist into our R&D
procedures, expansion of our supply chain risk assessment to include sustainabilityrelated matters, and a focus on Company-wide sustainability education and ownership.
Sensient is positioned to plan for and respond to various climate-related scenarios between
now and 2050, reflecting the resiliency of our Sustainability Strategy and the proactive
efforts of our Sustainability Steering Committee. Through our climate-related assessments,
we seek to be well-prepared to adapt to possible disruptions caused by climate change• Our Food Colors business continues tooperate in a vertically integrated supply
chain for natural colors, allowing for fulltransparency down to the farm-level.
Our close involvement with each farmer
allows us to ensure that regenerative
farming methods are used.

• Our Natural Ingredients businessor government regulation imposed with the intent of addressing climate change, and wecontinues to demonstrate sustainable

will accomplish this through consistent attention to climate-related developments. Eachfarming practices such as water reuse,month, the Sustainability Steering Committee meets to discuss these developments anddrip irrigation, and upcycling our process

decide next steps in line with the board-approved strategy.

waste as crop nutrients.

Sustainability Report | 2023

seen as more premium. Sensient
continues to develop numerous
clean-label products andalternatives to synthetic products,
including plant-based protein
solutions, palm-free natural
flavors, and dairy-free products.

• Our BioNutrient business reaps
the benefits of implementing acircular economy through theupcycling of its waste streams,
thereby decreasing waste
generation and carbon emissions.

103

Climate-Related
Metrics & Targets

Metrics
As previously noted, with the preparation of this 2023 Sustainability Report, Sensient has endeavored toprepare our disclosures in line with the SASB standard for Chemicals. We leverage additional sustainability
metrics related to energy, emissions, water withdrawal, waste disposal, and more to align with the expectationsof the CDP questionnaire and to quantify the success of our sustainability strategy against climate-related risks
and opportunities. Refer to the Appendix for the disclosure of our climate-related metrics, including a detailed
assessment of our scope 1 and scope 2 greenhouse gas emissions.
In 2021, we introduced our first sustainability-related performance metrics into our compensation incentive
structure for certain key business leadership. In 2023, the Compensation and Development Committee
approved a sustainability-related performance metric, which emphasizes the reduction of certain inventory
and incentivizes Sensient leadership to optimize resource use and implement circular design principles.
Additionally, Sensient plans to evaluate whether and how to establish an “internal price,” or an internal monetary
value useful for rendering investment decisions, on carbon. An internal price on carbon could be a tool utilized
by the Company to better meet the Company’s sustainability targets, gain a competitive advantage, and ensure
longevity and prosperity in our business.

Targets
PILLAR
Pillar 1:
Decarbonization

TARGET
Reduce carbon intensity of scope 1 and scope 2
greenhouse gas emissions by 30% by 2030
(Baseline 2020)

PROGRESS
Progress – 8%
Target – 30%

Pillar 2:
Water Stewardship

Reduce overall water withdrawal by 30% by 2030
(Baseline 2020)

Progress – 9%
Target – 30%

Reduce water withdrawal intensity by 30% in areas
categorized as having high or extremely high water
stress levels (Baseline 2020)

Progress – 10.9%
Target – 30%

Pillar 3:
Waste Reduction

Increase average landfill diversion to 75% by 2030

Progress – 72.9%
Target – 75%

Sustainability Report | 2023

Pillar 4:
Sustainable Supply Chain

Collect auditable sustainability data and perform
We have further developed our supply chain connections
assessments on the suppliers that represent between on SEDEX & EcoVadis and are strengthening internal tracking
75-90% of our total spend by 2030of relevant supplier data.

Pillar 5:
Sustainable Product Design

Incorporate a sustainable design principles checklist Our sustainable design principles checklist has been developed
into 100% of innovation projects by 2024
and is currently in the review and implementation phase.

105

Where We
Will Go In 2024
& Beyond

First and foremost, we believe we need to focus
on directly reducing our own scope 1 and scope 2
emissions. As we see it, the only way to actually reduce
the amount of greenhouse gases in the atmosphere isto reduce what we are actually putting into it. Because
we have chosen to focus on this approach, we havemade the decision – for now – to avoid purchasing
offsets or participating in more remote efforts suchas virtual power purchase agreements. In a world oflimited resources, we are spending our resources towork on our own scope 1 and scope 2 emissions.

Sustainability Report | 2023

107

WHERE WE WILL GO IN 2024 & BEYOND

ReduceScope 1
Emissions

In focusing on reducing our scope 1 emissions,
we performed an assessment and determinedthat roughly 85% of our annual scope 1 emissions
come from stationary combustion, which islargely from our industrial, fuel-powered dryers
and boilers. Dryers are used throughout our
manufacturing plants to convert our products
from liquid to powdered products, or in thecase of our Natural Ingredients business, toIncrease Equipment
Efficiencies & Production
Efficiencies
The best short-term strategy to reduce ourgreenhouse gas emissions incorporates a
mix of equipment and production efficiency
improvements. In 2024, we will continue ourwork to improve the efficiency of our dryers
and boilers, to rationalize our production

dehydrate garlic, onion, capsicums, and otherprocesses, and, in some cases, to redesign ourvegetable products. Our customers demand

products, all to reduce our scope 1 emissions.

these dry products for their applications andWe are also exploring a regulatory change thattransporting liquid products is significantly
more costly and carbon intensive. As discussed
below, we are also required by regulations, incertain instances, to provide dried products thatwould otherwise be in liquid form. Consequently,

Electrify Fuel-Powered Equipment
Most significantly, there is a limit to what we can do alone.
Ultimately, we see two long-term solutions to the scope 1
emissions of our dryers and boilers.
First, we could convert our carbon-based fuel powered
equipment to electrical equipment. However, in our efforts toachieve this, we have discovered three restrictive challenges.
1.

sources, this conversion would only shift our emissions fromscope 1 to scope 2 and, as long as the electrical grid is still
powered by fossil fuels, would ultimately increase our net

could help our efforts. Currently (as discussed

emissions. Less than 12% of our available boiler capacity

elsewhere), all of the synthetic colors we

is located in a market where grid electricity has lower

manufacture for use in food or pharmaceuticalemissions than natural gas.

applications in the U.S. need to be certified by
the FDA. The existing regulations require us todry all of these colors before submitting them toto actually reduce our scope 1 emissions, wethe FDA. In many cases, after the FDA certifies

need to address our dryers and boilers.

the colors, we re-liquefy them for use in our

2.

carbon-based fuel. The increase in electricity demand
resulting from conversion would be cost prohibitive, and theincreased strain on the electrical grid would increase the riskcertify liquid samples, we think we could achieveof inconsistent electricity supply.

significant reductions in our scope 1 and scope 2changing federal regulations is a long anduncertain process.

SCOPE 1 EMISSIONS:

Direct emissions
from owned orcontrolled sources.
(per the GHG Protocol)

We are not precisely sure how much wewill be able to reduce our scope 1 emissions
as a result of the efforts described above.
We would hope to get at least a 30% reduction
by 2030. However, we simply cannot say withany reasonable degree of certainty given themassive complexity of the problem.

Depending on the market, electricity is two to eleven times
more expensive per unit energy than the presently usedcustomers’ applications. If the FDA would insteademissions at our St. Louis Color facility. However,Absent an increased availability of renewable electricity

3.

Electric versions of direct-fired dryers are not commerciallyavailable beyond pilot-scales. Direct-fired dryers, which makeup most of our dryers, can also be converted to indirectfired dryers and electrified. While technically possible, thisis not always the most economical or space-friendly option.
Indirect-fired dryers can be more expensive compared todirect-fired dryers due to additional boilers, heat exchangers,and ductwork and require additional space that may not be
available in a facility designed around direct-fired dryers.

All things considered, we are limited by the resources available,
but we will continue to seek to electrify our equipment when
it is technologically and financially feasible.

Utilize Carbon Capture Technology
Our second long-term solution involves utilizing pointof emission carbon capture technology. Unfortunately, asof this writing, such technology remains largely unavailable
for commercial application. And, again, we must depend
upon others to develop and perfect this technology
in a commercially feasible form.

Sustainability Report | 2023

109

WHERE WE WILL GO IN 2024 & BEYOND

ReduceScope 2Emissions

Procure Renewable
Energy from the Grid
As previously mentioned, the availability of renewable sources ofelectrical energy is a major constraint as we try to reduce our scope
2 emissions. Without a reliable electrical grid sourced primarily
through renewables, a future in which we achieve zero CO2 emissions
is not achievable. The paradox is that although electrifying our
production equipment may reduce our scope 1 emissions, solong as fossil fuels power the electrical grid, electrification will
increase our scope 2 emissions. We will continue to monitor foropportunities to source energy from more renewable sources.
For our North American facilities, we have partnered with anenergy consultant that works closely with each utility company
in the areas in which we operate to identify all renewable energy
programs and opportunities. Given the increase in demandfor procuring renewable energy from the grid, there are somechallenges in accessing direct renewable energy at a commerciallyreasonable cost. Until the grid matures to source more renewableenergy, we remain limited in our options at certain locations.

Install On-Site Renewables

SCOPE 2 EMISSIONS:

Indirect emissions
from the generationof purchased energy.

As of the publication of this report, three of our 32 manufacturing
facilities have solar panels on site, another seven sites are in theprocess of implementing solar, and another six sites procure
energy from a grid that is 85% or more renewable. We are actively
working to grow this list by installing on-site renewable energy
solutions or engaging in price purchase agreements. However, at
most facilities, the land and roof space available to us for solar panel
installation is not enough to provide 100% of our energy needs. For
example, at some of our facilities, the maximum installation of solar
panels would only provide an estimated 5% of energy needs.

(per the GHG Protocol)

Sustainability Report | 2023

111

WHERE WE WILL GO IN 2024 & BEYOND

ReduceScope 3Emissions

Conduct a Robust Scope 3
Baseline Assessment
We have not yet set scope 3 requirements as we have no establishedbaseline, and regulatory questions around scope 3 guidance remain
unsettled. However, in preparation for compliance with emerging
regulations like the EU Corporate Sustainability Reporting Directive
and California’s SB 253, we are in the process of mapping our scope
3 emissions according to the guidance of the GHG Protocol anddeveloping a system to connect with key actors in our value chain.
In 2024, we will endeavor to develop a formal internal emissions
accounting policy and begin the assessment of our scope 3 emissions.

Engage our Supply Chain
We have begun engaging with our suppliers to better understandtheir environmental footprint and where they are in theirsustainability journey, and the level of disclosures we expect fromour suppliers will continue to grow. As we continue to expand our
engagement activities, we will work in collaboration with our key
suppliers to reduce emissions throughout our value chain. Because
our supply chain consists of over 6,000 suppliers that range fromsophisticated multinationals to small scale farmers in remoteregions of the world, this is a very steep climb. We will continue
attempting to go about this effort methodically and sensibly.

Source our Ingredients Sustainably
SCOPE 3 EMISSIONS:

All indirect emissions
not included in scope 2
that occur in the value
chain, both upstream
and downstream.

We will continue to partner with growers to improve soil health,agroforestry, and shade management as well as to prevent andremediate land use change and deforestation. Improved soil healthand nature conservation will also enhance our ability to pull carbon
out of the atmosphere and store it underground where it can
restore nutrients and feed an array of biology and life. Improving
soil health is important to our decarbonization efforts because up to
one-third of greenhouse gas emissions stem from the food system.
An estimated 80% of these emissions come from agriculture.

(per the GHG Protocol)

Sustainability Report | 2023

113

WHERE WE WILL GO IN 2024 & BEYOND

ReduceEmissions throughProduct Design

Remodel our R&D program to incentivize
the reduction of energy demand (and otherresources) through product design
In alignment with our Pillar 5 target, we are working to integrate sustainableproduct design elements into the first stages of product design. Our technicaldepartments work with our production facilities and sourcing experts todevelop smart, lower-carbon solutions, such as product designs that callfor less time in dryers or boilers, leverage upcycle draw materials, or replace
imported ingredients with local ones to reduce transportation emissions.
The sustainable product design checklist to be implemented in 2024 isdesigned to enhance these efforts.

Transition to low-carbon products
We will continue to innovate our product offerings and develop quantified
product carbon scores. Examples of our current low-carbon products include
BloomGenix®, high-pigment crops, and plant-based products.
When applied to a crop, Sensient’s BloomGenix improves the uptake ofnutrients into the plant, thereby reducing the crop’s resource requirements
and generating a smaller carbon footprint. Further, the higher nutrient
use efficiencies helps farmers reduce their use of synthetic nitrogen-based
fertilizers and harvest a higher quality yield.

Our Pillar 5
Checklist is designed
to address the potential
emissions of all new
innovations projects.

Our scientists develop seeds to maximize the pigment content of the cropand minimize the amount of resources it will need to grow. The best example ofour high-pigment crops is our black carrot, which boasts an impressive amountof color (in this case, anthocyanin content) per square ground cultivated. Thismeans it takes less cultivated ground, less water, less energy, and overall lessresources to make a color product derived from our high-pigment crops.
Sensient works with plant-based meat companies to optimize protein
production through fermentation, which helps them increase the availabilityof a more sustainable protein source as compared to animal protein sources.
Our role is to develop ingredients that improve the efficiency and throughputof the fermentation process, resulting in reduced energy use and reduced
greenhouse gas emissions.

While we aspire to significantly reduce
our emissions in the years to come, we cannot
guarantee we can reach goals where our ability
to reach those goals is completely contingent
upon developments that are outside our control.
Sustainability Report | 2023

115

Appendix 1 – Energy & Emissions Data9
SENSIENT BY GROUP & MANUFACTURING SITE

2020 SCOPE 1 & 2 EMISSIONS10 (MT C02e)

2023 SCOPE 1 & 2 EMISSIONS (MT C02e)

CORPORATE TOTAL

211,048

212,061

COLOR

53,356

46,396

St. Louis, USA

37,49530,772

Delta, Canada

897

307

Kingston, Canada

217

192

Geesthacht, Germany

2,258

2,190

Reggio Emilia, Italy

2,401

1,943

Gebze, Turkey10

1,379

1,379

King’s Lynn, UK

704

661

St. Ouen l'Aumone, France

497

464

Johannesburg, South Africa

165

381

Lerma, Mexico

5,467

6,925

Lima, Peru

1,351

1,028

Jundiai, Brazil

57

84

Tambore, Brazil

59

70

Closed Facilities

409-

FLAVORS & EXTRACTS

153,073

160,929

Livingston, USA

56,10561,871

Juneau, USA

29,57036,106

Amboy, USA

18,96918,759Harbor Beach, USA

14,57013,573Deming, USA

2,200

2,838

Turlock, USA

2,733

2,044

Felinfach, UK

8,490

8,046

Milton Keynes, UK

1,889

2,612

Heverlee, Belgium

2,217

1,455

Celaya, Mexico

15,366

12,663Tlalnepantla, Mexico

945

946

San Jose, Costa Rica

17

18

ASIA PACIFIC

4,468

4,736

Guangzhou, China

2,127

2,189

Manilla, Philippines

446

802

Keysborough, Australia

720

603

Mumbai, India

176

309

Bangplee, Thailand

246

257

Auckland, New Zealand

186

235

Hitachi, Japan

229

221

Closed Facilities

338

120

FUGITIVE AND MOBILE EMISSIONS, UNSPECIFIED

151

-

10

Sustainability Report | 2023

117

Appendix 1 – Energy & Emissions Data9
SENSIENT BY COUNTRY OF MANUFACTURING SITES

2020 EMISSIONS10 (MT C02e)

2023 EMISSIONS (MT C02e)

CORPORATE TOTAL

211,048

212,061

DIRECT EMISSIONS (SCOPE 1)

145,500

156,567

Australia

145

138

Belgium

1,377

1,214

Brazil85

79

Canada

800

477

China

54

275

Costa Rica

10

18

France466

327

Germany

1,024

1,672

India

12

56

Italy

1,617

1,788

Japan

79

85

Mexico16,701

15,706

New Zealand

120

151

Peru

1,210

877

Philippines

87

167

South Africa

30

91

Thailand

23

35

Turkey776

776

United Kingdom

11,084

10,706

United States

109,648

121,930

151-

65,54855,494Australia

575

465

Belgium

840

242

Brazil32

75

Canada

314

23

China

2,411

2,034

Costa Rica

7-

France30

137Germany

1,234

518

India

164

253

Italy

784

155

Japan

150

136

Mexico

5,077

4,827

New Zealand

65

84

Peru

141

151

Philippines

359

635

Fugitive & Mobile Emissions, Unspecified
INDIRECT EMISSIONS (MARKET-BASED SCOPE 2)

Sustainability Report | 2023

119

Appendix 1 – Energy & Emissions Data9
INDIRECT EMISSIONS (MARKET-BASED SCOPE 2) (CONTINUED)
South Africa

135

290

Thailand

223

222

Turkey

603

603

-

612

United States

52,40444,033

INDIRECT EMISSIONS (LOCATION-BASED SCOPE 2)

68,33457,038Australia

575

465

Belgium

380

228

Brazil32

75

Canada

254

147

China

2,411

2,034

Costa Rica

7-

France72

57

Germany

777

706

India

164

253

Italy

725

580

Japan

150

136

Mexico

5,077

4,827

New Zealand

65

84

Peru

141

151

Philippines

359

635

South Africa

135

290

Thailand

223

222

Turkey603

603

United Kingdom

4,019

1,512

United States

52,16644,033

United Kingdom

SENSIENT EMISSIONS BY GAS

2023 EMISSIONS (MT C02e)

CORPORATE TOTAL

212,061

DIRECT EMISSIONS (SCOPE 1)

156,567CO2

142,579

CH4

13,088

HFC

695

N2O

204

INDIRECT EMISSIONS (MARKET-BASED SCOPE 2)

55,494CO255,188

CH4

185

N2O

122

Sustainability Report | 2023

121

Appendix 1 – Energy & Emissions Data9
EMISSIONS SOURCE

UNIT OF MEASURE

2023 CONSUMPTIONUNIT OF MEASURE

2023 EMISSIONS

Natural Gas

MWh675,906tCO2e

122,499

Diesel - Stationary

MWh

612

tCO2e

155

Diesel

MWh

282

tCO2e

72

PropaneMWh

29,530

tCO2e

6,360

Fuel Oil

MWh

2,879

tCO2e

851

Kerosene

MWh

272

tCO2e

70

Propane - Mobile

MWh

2,421

tCO2e

521

Diesel - Mobile

MWh

5,577

tCO2e

1,429

Fleet - Diesel

MWh

2,232

tCO2e

572

Fleet - Gasoline

MWh

6,910

tCO2e

1,748

Gasoline (Petrol) - Mobile

MWh

785

tCO2e

199

R-22

kg

54

tCO2e

107

R-438A

kg

70

tCO2e

170

R-404A

kg

186

tCO2e

881

R-410A

kg

179

tCO2e

403

R-134

kg

12

tCO2e

16

Carbon Dioxidekg

5,353,277

tCO2e

5,353

Sodium Bicarbonate Reactionskg

3,566,234

tCO2e

1,869

Sodium Carbonate Reactionskg

725,749

tCO2e

301

m3

859,924tCO2e

12,992

Electric Power from GridMWh122,236tCO2e

55,173

Green Power from Grid

MWh

7,172

tCO2e

-

Renewable Power - Onsite

MWh

380

tCO2e

-

MWh

1,414

tCO2e

320

STATIONARY FUELMOBILE FUELREFRIGERANTSPROCESS EMISSIONSWASTEWATER
Wastewater Treatment
ELECTRICITY

STEAM
Steam

The data included in this appendix have not been reviewed or audited by a third-party and may include estimates where data were not reasonably available.

9

Prior years have been restated to adjust for acquisitions, divestitures, and changes in methodology that occurred between 12/31/2020 and 12/31/2023, pursuant to the GHG Protocol.

10

Sustainability Report | 2023

123

Appendix 2 – Water Data11
SENSIENT MANUFACTURING SITE

STRESS LEVELTOTAL WATER WITHDRAWAL (m3)

MUNICIPAL (m3)

GROUNDWATER (m3)2023 CORPORATE TOTAL WATER WITHDRAWAL

3,488,278

1,532,317

1,955,961

HIGH TO EXTREMELY HIGH WATER STRESS

1,039,737

283,268

756,469

Juneau, USA

High (40-80%)

509,508

13,434

496,074

Amboy, USA

High (40-80%)

167,664

167,664-

Lerma, Mexico

High (40-80%)

132,874-

132,874

Celaya, Mexico

Extremely High (>80%)

105,609-

105,609

Gebze, Turkey

High (40-80%)

37,08615,174

21,912

Turlock, USA

High (40-80%)

25,104

25,104-Heverlee, Belgium

Extremely High (>80%)

24,227

24,227-

Lima, Peru

Extremely High (>80%)

19,966

19,966-

Tlalnepantla, Mexico

Extremely High (>80%)

13,27013,270-Bangplee, Thailand

High (40-80%)

4,271

4,271

-

Johannesburg, South Africa

Extremely High (>80%)

158

158

-

2,448,541

1,249,049

1,199,492

LOW TO MODERATE WATER STRESS
Livingston, USA

Medium - High (20-40%)

966,878-

966,878Saint Louis, USA

Low (<10%)647,709647,709-

Harbor Beach, USA

Low (<10%)

400,345

400,345-

Felinfach, UK

Low (<10%)

129,234

979

128,255

Reggio Emilia, Italy

Low (<10%)93,094-93,094

Deming, USA

Arid and Low Water Use

38,971

38,971-

Milton Keynes, UK

Low - Medium (10-20%)

34,164

34,164-

Geesthacht, Germany

Low (<10%)

26,631

15,366

11,265

Guangzhou, China

Low (<10%)

26,625

26,625-

Kings Lynn, UK

Low - Medium (10-20%)

20,226

20,226-Manilla, Philippines

Medium - High (20-40%)

14,503

14,503-

Delta, Canada

Low (<10%)

11,611

11,611-

St. Ouen I’Aumone, France

Medium - High (20-40%)

10,26910,269-Kingston, Canada

Low (<10%)

9,522

9,522

-

Keysborough, Australia

Low - Medium (10-20%)

5,296

5,296

-

Mumbai, India

Low - Medium (10-20%)

4,769

4,769

-

Auckland, New Zealand

Low (<10%)

3,513

3,513

-

Jundiai, Brazil

Medium - High (20-40%)

2,621

2,621

-

Hitachi, Japan

Low - Medium (10-20%)

1,462

1,462

-

San Jose, Costa Rica

Low - Medium (10-20%)

644

644

-

Tambore, Brazil

Low (<10%)

454

454

-

Sustainability Report | 2023

125

Appendix 2 – Water Data11
20204

2023

1,066,605

1,039,737

27.8%

29.8%

2,767,850

2,448,541

72.2%

70.2%

3,834,455

3,488,255

HIGH TO EXTREMELY HIGH WATER STRESSWater Withdrawal (m3)Percentage of Total
LOW TO MODERATE WATER STRESSWater Withdrawal (m3)Percentage of Total
TOTAL WATER WITHDRAWAL

The data included in this appendix have not been reviewed or audited by a third-party and may include estimates where data were not reasonably available.

11

Prior years have been restated to adjust for acquisitions and divestitures that occurred between 12/31/2020 and 12/31/2023 and for an updated assessment of water stress by the World Resources Institute’s Aqueduct Water Risk Atlas tool. For improved comparability,12

we used the 2023 water risk assessment for both the 2020 and 2023 data when categorizing sites as having high or extremely high water stress.

Sustainability Report | 2023

127

Appendix 3 – Waste Data13
WASTE

UNIT OF MEASURE

20226

2023

NONHAZARDOUS WASTE

MT

39,86446,656

Recycled/Reused

MT

1,417

10,848Composted/Organic RecyclingMT24,14523,064

Incineration

MT

-

3

LandfillMT

14,302

12,741HAZARDOUS WASTE

MT

847

553

Recycled/Reused

MT

651

372

Incineration

MT

123

145

Landfill

MT

74

36

LANDFILL DIVERSION %15

%

64.7%

72.9%

The data included in this appendix have not been reviewed or audited by a third-party and may include estimates where data were not reasonably available.

13

Prior years have been restated to reflect adjustments for error correction and an overall improvement in data quality and collection.

14

We define landfill diversion as the ratio of the amount of Sensient-generated waste that is managed through recycling, upcycling, or incineration to the total amount of waste that we generate, on a mass basis. For purposes of this metric, we exclude wastewater and wastewater pretreatment residuals.

15

Sustainability Report | 2023

129

Appendix 4 – Operational Health & Safety Data16,17
2022

2023

0

0

Number of Total Recordable Cases

89

81

Total Recordable Incident Rate19

2.2

2.0

Number of Lost-Time Injury Cases

46

55

Lost-Time Injury Frequency Rate19

1.2

1.4

Number of Workplace Fatalities
18

20

The data included in this appendix have not been reviewed or audited by a third-party and may include estimates where data were not reasonably available.

16

Sensient aligns its global workplace safety reporting data with OSHA, which does not separate employee and supervised contractor data; accordingly, all metrics contained in this appendix represent combined data for employees and supervised contractors.

17

Total recordable cases are determined based on OSHA recordability criteria and include both injuries and illnesses.

18

Per 100 full-time workers. This rate is calculated by estimating total hours worked for the year by averaging our total global headcount at the beginning and end of the year and assuming that each person works a 40-hour work week, for 50 weeks; rates are presented as incidents per 200,000 hours worked.

19

A recordable injury or illness is defined as a lost-time injury when the worker is either unable to work or is prescribed time off for one or more days after the day of the injury/illness. Local differences in the thresholds for prescribing medical leave are not taken into account when determining the number

20of lost-time cases – cases are conservatively counted as lost-time cases whenever time off is prescribed.

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131

Appendix 5 – Employee Data (as of 12/31/2023)21
TOTAL EMPLOYEES: GENDER DIVERSITY BY REGION

2023 EMPLOYEE TURNOVERREGIONTOTAL% MALE% FEMALE% OTHER / UNDISCLOSEDMALE

FEMALEOTHER/UNDISCLOSED

TOTAL

RATE*

NA

1,771

64%

34%

2%

Voluntary

246

128

62

436

11%

EMEA

936

55%

36%

9%

Involuntary

140

45

26

211

5%

LATAM

637

65%

23%

12%

Retirement and other

43

23

0

66

2%

APAC

612

44%

42%

14%

Total

429

196

88

713

18%

TOTAL

3,956

59%

34%

7%

*Rate defined as number of terminations divided by average headcount between 1/1/2023 and 12/31/2023.

TOTAL EMPLOYEES: AGE DIVERSITY BY REGIONPERCENTAGE OF EMPLOYEES WHO RECEIVED A REGULAR PERFORMANCE REVIEWREGIONTOTAL% AGE <30

% AGE 30-50% AGE >50

% UNDISCLOSEDMALE

FEMALEOTHER/UNDISCLOSED

TOTAL

NA

1,771

13%

48%

38%

0%

Direct Employees

0%

0%

0%

1,611

EMEA

936

10%

54%

29%

7%

Indirect Employees

100%

100%

100%

2,345

LATAM

637

11%

68%

18%

3%

APAC

612

10%

60%

15%

15%

harvest workers, etc.). Indirect employees include all other employees (e.g. office workers, production supervisors, sales workers, etc.).

Total

3,956

12%

55%

28%

5%

Regular performance reviews are conducted online through an employee management platform. Since direct employees do not conduct

Direct employees are defined as those employees who are involved in the manufacturing of our product (e.g. manufacturing workers,

work using the Company’s computers or have access to the Company’s intranet, they do not receive regular formal performance reviews.

EMPLOYEES HIRED: GENDER DIVERSITY BY REGION Employees hired between 1/1/2023 and 12/31/2023.
REGIONTOTAL% MALE% FEMALE% OTHER / UNDISCLOSED

NA

286

58%

28%

14%

EMEA

142

47%

22%

31%

LATAM

106

45%

14%

41%

APAC

69

30%

19%

51%

Total

603

50%

23%

27%

EMPLOYEE TRAINING
Total Hours of Training

25,479Average Hours Per Employee

6.44

Employee training includes compliance training (Code of Conduct, Sexual Harassment Prevention, Travel Risk
Awareness, Cybersecurity, etc.), safety training, leadership training, and quality training (GMP, HACCP, Food security, etc.).
The total amount is a conservative estimate based on average training time per type of training event and the numberof employees who participated in each. This estimate does not include self-reported learning hours, so the actual total
training hours is likely to be higher.

EMPLOYEES HIRED: AGE DIVERSITY BY REGION Employees hired between 1/1/2023 and 12/31/2023.
REGIONTOTAL% AGE <30

% AGE 30-50% AGE >50

% UNDISCLOSED

NA

286

29%

54%

15%

2%

EMEA

142

23%

42%

9%

26%

LATAM

106

15%

56%

15%

14%

APAC

69

23%

35%

3%

39%

MALE

FEMALEMALE

FEMALEMALE

FEMALE

TOTAL

603

25%

49%

12%

14%

2

0

4

3

6

3

DIRECTORS BY AGE AND GENDER
AGE <50

AGE>50TOTAL

The data included in this appendix have not been reviewed or audited by a third-party and may include estimates where data were not reasonably available.

21

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Appendix 6 – EEO-1 Report22
NON-HISPANIC OR -LATINOHISPANIC
OR LATINO

FemaleWhite

Black or African American

Native Hawaiian or Pacific Islander

Asian

American Indian or Alaskan Native

Two or More Races

White

Black or African American

Native Hawaiian or Pacific Islander

Asian

American Indian or Alaskan Native

Two or More Races

Overall Totals

FEMALE

Male

MALE

Administrative Support Workers

3

14

18

0

0

0

0

1

51

4

0

2

0

2

95

Craft Workers

10

0

45

2

0

1

0

2

0

0

0

0

0

0

60

Executive or Senior Level Officials & Managers

0

0

18

1

0

3

0

1

4

1

0

0

0

0

28

First or Midlevel Officials & Managers

27

12

170

5

1

16

0

12

89

5

0

6

0

3

346

Laborers & Helpers

71

91

103

6

1

8

0

7

26

1

0

5

0

3

322

Operatives

63

12

213

84

2

9

0

6

11

14

1

1

0

1

417

Professionals

12

8

99

11

0

22

0

10

104

5

0

31

0

5

307

Sales Workers

1

2

26

3

0

1

0

1

25

1

0

3

0

3

66

Service Workers

0

0

11

1

0

0

0

0

4

2

0

0

0

0

18

Technicians

1

4

11

1

0

1

0

3

29

2

0

2

0

2

56

Total

188

143

714

114

4

61

0

43

343

35

1

50

0

19

1,715

EEO-1 CATEGORY

Date of Payroll Period: 12/15/2023 through 12/31/2023.
This report is not certified and has not been finalized or filed with the U.S. EEOC; Sensient will complete and file a final 2023 EEO-1 report when the EEOC collects the information in 2024.

22

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Appendix 7 – Sustainability Accounting Standards Board (SASB) Table
This report marks the fourth year that Sensient has disclosed under the Sustainability Accounting Standards Board (SASB) standards. The table below contains SASB’s topics for the Chemicals industry standard, along with a descriptionof Sensient’s response for each topic.23 As we are in the early stages of our reporting to SASB standards, we do not fulfill the disclosures for all topics, but we will continue to evaluate for the future and our disclosures may evolve over time.
Also, some responses may not fully align with individual SASB metric guidance, but represent the data we have that are most closely aligned with each metric.
SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) TABLE
TOPICGreenhouse Gas Emissions

ACCOUNTING METRIC
Gross global scope 1 emissions and the percentage covered under emissions-limiting regulations

CODE
RT-CH-110a.1

RESPONSE OR CROSS-REFERENCE
Gross global scope 1 emissions: 156,567 metric tons of carbon dioxide equivalents (CO2e).
Percentage of our gross global scope 1 emissions covered under emissions-limiting regulations: Approximately 35.8%.
Scope 1 emissions are defined and calculated according to the methodology contained in the Greenhouse Gas Protocol: A Corporate Accounting andReporting Standard (GHG Protocol) using accepted emissions factors and engineering estimates as appropriate. The organizational boundaries for thisreport include our global manufacturing facilities. Our gross global scope 1 emissions calculations reflect all gases covered under the Kyoto Protocol.
Emissions of all greenhouse gases are consolidated and disclosed in CO2e using 100-year time horizon global warming potential (GWP) values
published by the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report (2014).24

Discussion of long-term and short-term strategy or plan to manage scope 1 emissions, emissions reduction targets, and an analysis ofperformance against those targets

RT-CH-110a.2

See section on Pillar 1: Decarbonization and section on Climate-Related Risks & Opportunities.

Air Quality

Air emissions of the following pollutants: (1) NOx (excluding N2O), (2) SOx, (3) volatile organic compounds (VOCs), and (4) hazardous air
pollutants (HAPs)

RT-CH-120a.1

While our facilities are subject to applicable air quality regulations, due to differences in applicable regulations and to avoid inconsistency,
at this time we do not calculate this metric at a Company-wide level.

Energy Management(1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable, (4) total self-generated energy

RT-CH-130a.1(1) Total energy consumed: Approximately 3,058,000 GJ.
(2) Percentage grid electricity: Approximately 15%.
(3) Percentage renewable: Approximately 1% (based on information provided by our electrical providers).
(4) Total self-generated energy: 8,137 GJ.
See also section on Pillar 1: Decarbonization.

Water Management

Hazardous Waste Management(1) Total water withdrawn, (2) total water consumed, percentage of each in regions with High or Extremely High Baseline Water Stress(1) Total water withdrawn: Approximately 3,488,000 cubic meters (30% from regions with High or Extremely High Baseline Water Stress).
(2) Total water consumed: Approximately 437,000 cubic meters (62% from regions with High or Extremely High Baseline Water Stress).25

Number of incidents of non-compliance associated with water quality permits, standards, and regulations

RT-CH-104a.1

We did not have any significant incidents of noncompliance associated with water quality permits, standards, or regulations in 2023.

Description of water management risks and discussion of strategies and practices to mitigate those risks

RT-CH-140a.2

See section on Pillar 2: Water Stewardship.

Amount of hazardous waste generated, percentage recycled

RT-CH-140a.3

Amount of hazardous waste generated: Approximately 553 metric tons.
Percentage of hazardous waste recycled: Approximately 67%.

Community Relations

Discussion of engagement processes to manage risks and opportunities associated with community interests

RT-CH-150a.1

See sections on Philanthropy and Community Service and "Labor & Human Rights" (“Social Responsibility and Human Rights Policy”).

Workforce Health & Safety(1) Total recordable incident rate (TRIR) and (2) fatality rate for (a) direct employees and (b) contract employees

RT-CH-320a.1(1) TRIR: 2.0(2)(a) Direct employee fatality rate: 0(2)(b) Contractor fatality rate: 0

Description of efforts to assess, monitor, and reduce exposure of employees and contract workers to long-term (chronic) health risks

RT-CH-320a.2

See section on Labor & Human Rights (“Employee Health and Safety”).

Product Design for Use-phase Efficiency

Revenue from products designed for use-phase resource efficiency

RT-CH-410a.1

At this time, we do not track this metric. Sensient is dedicated to driving sustainable innovation and implementing circular design principles, such as
the upcycling of byproducts into our products and processes, whenever possible.

Safety & Environmental Stewardshipof Chemicals(1) Percentages of products that contain Globally Harmonized System of Classification and Labeling of Chemicals (GHS) Category 1 and 2
Health and Environmental Hazardous Substances, (2) percentage of such products that have undergone a hazard assessment

RT-CH-410b.1

At this time, we do not disclose the percentage of products that contain substances that have been classified as GHS Category 1 or Category 2 Healthand Environmental Hazardous Substances. All Sensient products are evaluated for hazards and assigned hazard classifications as required by law.

Discussion of strategy to (1) manage chemicals of concern and (2) develop alternatives with reduced human and/or environmental impact

RT-CH-410b.2

See section on Corporate Governance, Legal Compliance, and Risk Oversight (“Chemical Risk Strategy”).

Percentage of products by revenue that contain genetically modified organisms (GMOs).

RT-CH-410c.1

Sensient does not source raw materials containing GMOs in Europe. However, in other regions we source certain raw materials that may contain
GMOs, such as raw materials derived from corn or soy. We disclose presence of GMOs in our products as required by law.

See sections on Pillar 3: Waste Reduction and Pillar 5: Sustainable Product Design for more information.

Genetically Modified Organisms

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Appendix 7 – Sustainability Accounting Standards Board (SASB) TableManagement of the Legal& Regulatory Environment

Discussion of corporate positions related to government regulations and/or policy proposals that address environmental and social
factors affecting the industry

RT-CH-530a.1

Sensient anticipates both risks and opportunities related to environmental regulation and rule making at the state and federal level. Enhanced
emissions-reporting obligations, carbon-pricing regulation, fuel efficiency standard adjustments, and increased hazardous waste disposal protocols allpose potential risks to the Company as compliance costs may increase. International treaties regarding the environment or the various environmental
laws in the countries in which Sensient operates could also impact the Company’s operations as such actions could reduce the Company’s financial
incentives to continue certain operations if costs to comply increase too dramatically. In addition, changes to the tax code or labor and employment
laws could increase compliance costs. Finally, non-compliance or accidental improper implementation of laws could cause reputational harm.
Notably, opportunities can also arise from environmental regulations. New tax incentives or deductions can help Sensient create economic value
while also serving as a catalyst for environmental change. Complying with higher standards of environmental laws, or being a leader in the industry
for finding creative solutions to combat climate change in its business, can significantly improve consumer opinions of the Company and increase
profitability as societal emphasis on environmental matters is likely to keep growing.
Sensient is constantly evolving its business strategy to offset regulatory risks and receive benefits from environmental regulation. Sensient is notplanning to change its business model or organization structure. However, it is investing in research and technology to minimize its exposure to any
regulatory risks and maximize its profits. The global community as a whole is more focused on environmental matters, and Sensient recognizes theopportunity in that for Sensient to grow its business and continue being a leader.

Operational Safety, Emergency
Preparedness & Response

Process Safety Incidents Count (PSIC), Process Safety Total Incident Rate (PSTIR), and Process Safety Incident Severity Rate (PSISR)

RT-CH-540a.1

Sensient did not have any severity level 1 or 2 process safety incidents in 2023.

Number of transport incidents

RT-CH-540a.2

Sensient does not disclose this metric as we do not own or operate a transportation fleet to distribute our products.

ACTIVITY METRIC
Production by Reportable Segment

CODE
RT-CH-000.A

RESPONSE OR CROSS-REFERENCE
Not disclosed.

Unless otherwise noted, responses include best available data from all Company-operated manufacturing facilities.

23

As of the publication of this report, greenhouse gas emission data have not undergone third-party assurance review.

24

We estimate total water consumed by subtracting the total volume of discharged industrial wastewater and cooling water from the total volume of water withdrawn.

25

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Appendix 8 – Taskforce on Climate-Related Financial Disclosures (TCFD) Report
GOVERNANCE
Disclose the organization’s governance around climate-related risks and opportunities.
a) Describe the board’s oversight of climate-related risks and opportunities.

See our section on "Climate-Related Governance" on page 92.

b) Describe management’s role in assessing and managing climate-related risks and opportunities.

See our section on "Climate-Related Governance" on page 92.

STRATEGY
Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning where such information is material.
a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.

See our section on "Climate-Related Risks and Opportunities" on page 96.

b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.

See our section on "Climate-Related Risks and Opportunities" on page 96.

c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.

See our section on "Climate-Related Risks and Opportunities" on page 96.

RISK MANAGEMENT
Disclose how the organization identifies, assesses, and manages climate-related risks.
a) Describe the organization’s processes for identifying and assessing climate-related risks.

See our section on "Climate-Related Risks and Opportunities" on page 96.

b) Describe the organization’s processes for managing climate-related risks.

See our section on "Climate-Related Risks and Opportunities" on page 96.

c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management.

See our section on "Climate-Related Risks and Opportunities" on page 96.

METRICS & TARGETS
Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.

See our section on "Climate-Related Metrics and Targets" on page 105, as well as our sections on"Pillar 1: Decarbonization", "Pillar 2: Water Stewardship", Pillar 3: Waste Reduction", "Pillar 4: Sustainable Supply Chain",and "Pillar 5: Sustainable Product Design" on pages 20-46 and the relevant appendices on pages 117-129.

b) Disclose scope 1, scope 2, and, if appropriate, scope 3 greenhouse gas (GHG) emissions, and the related risks.

See our sections on "Pillar 1: Decarbonization" on pages 20-23 and Appendix 1 on pages 117-123.

c) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.

See our sections on "Pillar 1: Decarbonization", "Pillar 2: Water Stewardship", "Pillar 3: Waste Reduction","Pillar 4: Sustainable Supply Chain", and "Pillar 5: Sustainable Product Design" on pages 20-46.

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Sensient Technologies
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