IFRA-IOFI
Sustainability Report
2020-21

Sustainability
CharterAbout IFRA and IOFIAbout IFRA

About IOFIThe International Fragrance Association, founded
in 1973, represents the interests of the fragrance
industry worldwide.

Founded in 1969, the International Organizationof the Flavor Industry (IOFI) is the global
association representing the industry thatcreates, produces and sells flavorings worldwide.

Fragrances are the fusion of science and art:
where chemists become creators, and wheremolecules make memories. Fragrances are
unique; they are designed with care, passion andingenuity, and give pleasure to people around theworld who use and enjoy fragrance every day –from a fresh-smelling shampoo to a stylish
perfume, a scented candle to freshly-laundered
sheets.
IFRA comprises seven multinational companies, 21
national associations in four regions representing
hundreds of small and medium-sized fragrance
manufacturers, and supporting members. Its
mission is to promote the safe use of fragrance foreveryone’s enjoyment.
Fragrances are a key platform technology usedby consumer goods companies – for finefragrances, personal care products including
cosmetics, home care and cleaning, andindustrial and institutional applications.
IFRA’s flagship safe use program, the IFRA
Standards, applies safety management
measures based on scientific assessment andthe evaluations of an independent Expert Panel.

02

Flavorings are ingredients whose primary
purpose is to provide taste; a taste experiencecan help us recapture a childhood memory, put
us in a good mood or make our food and drinks
much more enjoyable.
IOFI advances the global trade of safe,
responsibly produced flavorings that respect theenvironment and enrich the lives of consumers.
With 17 regional and national associations andten major global companies as members, amanagement staff of scientific and regulatory
experts located in Brussels and Washington D.C.
and a network of top-notch industry volunteers,
IOFI interacts and collaborates with stakeholders
around the world.
One of IOFI’s driving principles is to ensure thesafe use of flavoring ingredients globally, andcentral to achieving this goal, is the IOFI Science
Programme. IOFI works with internationallyrecognized safety assessment bodies to ensure
the industry meets their needs for soundscientific data.

The program is at the heart of the IFRA Code ofPractice, which applies to all IFRA members,
including members of IFRA’s national associations.
The Code also requires members to abide by local,
national and international regulation, and to apply
good manufacturing practices.

With an official observer status at the United
Nations WHO/FAO Codex Alimentarius
Commission, IOFI participates in Codex
discussions to foster global standards andguidelines that contribute to public health andpromote regulatory convergence around theglobe.

ifrafragrance.org

iofi.org

Table of contents
04 INTRODUCTION
05 EXECUTIVE SUMMARY
08 ABOUT THE CHARTER
09
10
12
14
16
18
19

The Charter and its goals
About the Charter
Charter signatories
IFRA-IOFI Sustainability Charter
Focus Areas and the UN SDGs
Charter development
From Commitment to Progress

20 RESULTS & ACTIVITIES 2020-21
Introduction
Part A: State of Play
Focus Area 1: Responsible sourcing
Focus Area 2: Environmental footprint
Focus Area 3: Well-being of employees
Focus Area 4: Product safety
Focus Area 5: Transparency &Partnerships
42 Part B: Our activities
43 Our activities in 2020-21
21
22
23
27
32
36
39

45 Glossary

Acknowledgements
A big thank you to all signatories of the IFRA-IOFI Sustainability Charter for yoursupport and participation in the creation, development and launch of the initiative.
We would like to thank in particular the more than 100 companies who provided
feedback on their actions for this Sustainability Report, which allowed us to present a
representative picture of the state of play on sustainability in our industries.
We also thank the many members and external experts who offered their support andguidance over the past five years, especially the IFRA-IOFI Sustainability Task Force for
their active engagement in developing the Charter.
Finally, thank you to the IFRA and IOFI teams for theirwork on the Charter and on this Annual Report.

Find out more
To get more information about the Charter, go to ifra-iofi.org or contact
Maxime Marchal at mmarchal@iofi.org or David O'Leary at doleary@ifrafragrance.org.

03

Introduction
Martina Bianchini &Sven Ballschmiede
Welcome to the first annual IFRA-IOFI
Sustainability Report.
Formally launched last year, the Charter has
been long in the making. Since 2016 we haveworked with members and external experts todiscuss, develop and refine the program andcreate an ambitious new approach tosustainability across the two industries.
The Charter is a voluntary framework that has
been signed by 126 companies. It represents acollective commitment to making the difference
for the planet, for people and for our businessacross five Focus Areas - responsible sourcing,
reducing our environmental footprint, employee
well-being, product safety, and transparency andpartnerships.
In this Sustainability Report, we get an
opportunity to present the state of play - howthese companies are fulfilling or working
towards the Commitments in the Charter.

04

help raise the bar across the industry.
We cannot ignore the political, economic andsocial context that accompanies this first annual
Sustainability Report. The COVID-19 pandemic
continues to dominate our lives and ourbusinesses, and has emphasized the need for
greater sustainability.
Although the Charter is a project that has beenyears in the making, its time has truly come: anopportunity to underline our sectors’commitment to more responsible sourcing andproduction, to employee well-being, and to
economic sustainability.
We will continue to highlight and reinforce thiscommitment both through the Charter and in ourwork on public policy globally, including the EU
Green Deal and the US Sustainability Agenda, as
well as initiatives in Asia-Pacific and Latin
America.

The results are impressive, both in terms of thepercentage of the industries by market share andin terms of individual companies (our industries
including many small or medium-sizedenterprises).

This first Sustainability Report represents abenchmark for us to measure progress in futureyears. We hope to see, in the next twelve
months, more companies making progressalong the sustainability path, and morecompanies committing to the Charter.

The results reflect the fact that many companies
have long-standing sustainable development
commitments and have been engaged ininitiatives for many years. In the coming years wehope to further improve thanks to the Charter's
collective framework and the tools provided to

IFRA and IOFI will continue to provide
signatories and all members with its best efforts,
expertise and support to help maintain thefragrance and flavor industries' continuous
efforts on sustainability, in the context of theUnited Nations Sustainable Development Goals.

Executive summary
This first IFRA-IOFI Sustainability Report is asignificant milestone on the sustainability
journey of the fragrance and flavor (F&F)
industries.
Since 2016, IFRA and IOFI, as the global
representative bodies of the F&F industries, haveworked with members to develop a common
Sustainability Charter.
The Charter seeks to define what sustainability
means for our industries and creates a sectoral
framework. Such frameworks are importantvalue creators, helping to improve performanceand raise the bar on sustainability acrossindustries.
This report highlights the state of play of the F&F
industries in the five Focus Areas of the Charter:
Ensure responsible sourcing throughout thevalue chain
Reduce our industries’ environmental
footprint and address climate change
Enhance the well-being of employees andensure a rewarding labour environment
Be at the leading edge of product safety
Be transparent and a reliable partner forsociety
The Charter was formally launched in July 2020
with around 100 signatory companies - a figurethat exceeded expectations and that showed theinterest and willingness of F&F companies toengage in a common initiative and makecommitments on a series of shared goals.
Once the Charter was launched, the next step, inautumn 2020, was to invite all signatorycompanies to participate in a baseline survey on
their own performance against the five Charter
Focus Areas in order to provide a representative
picture of the overall sustainability maturity levelof our industries.
Of the now 126 signatories to the Charter, morethan 80 per cent responded to the 31-question
survey on the five Focus Areas and 17
Commitments.
It should be noted that in the F&F industries, a
relatively small number of large global
multinational corporations represent more thanfour-fifths of the market, while the remainder ismade up of small and medium-sized enterprises.
The results therefore need to be interpreted withthese market dynamics in mind.
The results will be a baseline against which we
can measure progress in the industries. That
overall picture is an impressive one: the results,
which will be the baseline for future
Sustainability Reports, show a high level of'maturity' in the industries on sustainability.
Across the five Focus Areas, we consistently see
more than two in every three companies having
strategies in place, or in the pipeline, to addressthese sustainability challenges. When mapped
against market share, the overwhelming majorityof the F&F market has plans in place to improve
its performance.
On responsible sourcing, the awareness andlevel of active engagement in the F&F industries
is high. More than 70 per cent of respondents including the companies that make up the vast
majority of the market - engage in dialogue with05

farmers and local communities, supporting
equitable practices, community development andeducation.
The bulk of the market has advanced humanrights and labor standards roadmaps, as well as
biodiversity action plans. Our Toolbox of laws
and sustainability programs provide the toolsthat will help other companies develop similarroadmaps and action plans.
On environmental footprint and climate change,
the overall footprint of the F&F industries isrelatively small and the industries exhibit a goodenvironmental profile. More than 75 per cent ofrespondents, and more than 90 per cent of the
F&F market by market share, have a global
environmental strategy, implementing ecodesign measures and acting to reduce
consumption and waste.
Between a fifth and a third of respondents again, representing the lion's share of the market- have waste roadmaps or are implementing new
business practices to reduce energy and water
consumption, greenhouse gas emissions andwaste. Uptake of green chemistry principles isstrong and has the capacity to grow.
IFRA and IOFI have taken steps to improveunderstanding of the concept of green chemistryby hosting a Masterclass for its members in
March 2021 with one of the concept’s founders,
Dr John Warner.
On employee well-being and offering a rewarding
labor environment, the F&F industries alreadydemonstrate high standards. More than 70 per
cent of respondents have occupational health06

and safety strategies that go beyond
implementation of regulatory requirements inplace and nearly half are using internationallyrecognized evaluation tools.
Around half of respondents - including thebiggest companies - exhibit best practice on
occupational health and safety. This includes
offering equal opportunities and fair treatment of
all employees, promoting diversity and inclusion,and providing training and development
opportunities to upgrade professional skills. The
vast majority of the industries' employees
benefit from this high standard.
The COVID-19 pandemic has presented manyoccupational health and safety challenges for
the F&F industries, and IFRA and IOFI havesupported member companies through thedevelopment of best practice guidance
documents and by monitoring legislative andpolicy changes around the world.
F&F companies play an essential role in the two
industries' value chains – delivering our products
into high-quality food supply chains and thehygiene and cleaning product supply chains.
Consumers expect high-quality and reliable
products that would contribute to their healthand well-being at a time of crisis: the fragrance
and flavor industries worked hard to deliver
essential products to our customers and to
consumers, keeping facilities open, supply
chains working, and employees safe.
The F&F industries are already at the leading edgeof product safety – a non-negotiable requirement.
In addition to complying with our respective

Codes of Practice, compliance with existing
regulations is crucial.
Dialogue helps to support product safety, andour survey highlights how more than 90 per centof respondents engage in dialogue withdownstream customers on product stewardshipand how more than a quarter provide educational
support in a proactive way to ensure optimum
safety and strengthen confidence in the safe useof our materials.
On transparency and partnerships, more than
three in four respondents have a global
responsive governance strategy in place,including all the largest companies. More than
three in every five respondents employ anticorruption measures that go beyond legal
requirements and approximately two-thirds areengaged in ongoing dialogue with politicalstakeholders, with almost every signatorycompany involved in some form of dialogue.

webinars, speaker sessions, and an online
Toolbox with information on good practices,
details of legal and regulatory frameworks andsustainability programs, and international
disclosure standards.
In 2021, we will establish a new standing
Sustainability Committee to further refine ourcommon framework and drive theimplementation of the Charter and improve its
governance. We will also work to expand thegeographical scope of the Charter and thenumber of signatories.
But our goals will remain consistent: to raiseawareness in the sector, provide a common
framework for action and implementation, build
dialogue and partnerships and report on our
progress. We ultimately seek to make adifference for the planet, for people and for ourbusiness through our common, sectoral
sustainability framework.

The impressive results provided by signatories
complement the work done by IFRA and IOFI as
global representative bodies of the F&F industries.

We look to work with our customers, partners
and stakeholders to design the safe andsustainable products of the future.

We are engaged in sectoral partnerships withorganizations such as the Union for Ethical
Biotrade and GIZ, a German development
agency, to develop sustainability best practices.

And, with a strong reference to the United
Nations Sustainable Development Goals (SDGs),
the fragrance and flavor industries will continue
to use the Charter to contribute to public policy
objectives and to communicate about ouractivities according to international reporting
standards and the SDGs.

IFRA and IOFI also support signatories by
providing tools and information through07About theCharter

The Charterand its goals
A new, collective and complementary
approach

Making the difference – for the planet, forpeople, and for our business

The International Fragrance Association and theInternational Organization of the Flavor Industry,
together with their members, have developed the
IFRA-IOFI Sustainability Charter as a collective
effort to raise the bar for sustainability in theflavor and fragrance (F&F) sectors.

Our Charter underlines the key role sustainability
plays in our business, inspired by the United
Nations Sustainable Development Goals (alsoknown as the Global Goals).

The Charter builds on the F&F industries’ proud
heritage and on the long-standing commitment
to sustainable development across its many
dimensions that has been shown by many
individual companies.
The Charter complements company sustainability
programs, helping our industries as a whole to
make advances on sustainability by sharing bestpractice and benchmarking progress.

As the F&F industries, we play a pivotal andunique role in sourcing a wide range of raw
materials from natural and synthetic origin andturning them – with the help of cutting-edge
science – into valued high-end products.
An expression of purpose

A voluntary, open, inclusive framework

The Charter is an expression of purpose: acting
responsibly and using our influence throughout
the value chain to drive positive change
upstream, with farmers and other suppliers; inour own industries; and downstream, with
consumer goods companies and retailers.

This voluntary framework shows our industries’
sense of responsibility and our commitment tomaking the difference. The Charter is open,
inclusive and comprehensive, taking a ‘life-cycle’approach and giving the opportunity and tools
for everyone in our industries to contribute to abrighter and more sustainable future.

It also reflects the core principles that haveguided our work in the past and set the path fora sustainable future: a commitment to healthand safe use, and to exceptional productperformance; a focus on innovation and on
economic sustainability and prosperity; and aspirit of transparency and partnership.

09

About the Charter
Charter principles

Aspirational
and achievable

Voluntary
and inclusive

Anti-trust
compliant

A life-cycle approach to sustainability

1
Responsible
sourcing

5

Transparency& partnerships

4

Product
safety102Environmental
footprint

3

Well-being of
employees

Complementary
initiative

Charter objectives

1

Raise awarenessWe seek to raise awareness of sustainability
throughout the fragrance and flavor (F&F) sectors.

2

Give businesses a toolbox

We offer a toolbox detailing best practices,
legal norms and standards to help raise the bar.

3

Report on progress

We benchmark progress as an industry, providing
annual Sustainability Reports.

4

Build stakeholder trust

We want to enhance dialogue with stakeholders,
informing them of progress and gathering feedback.

5

Identify possible collaboration

The Charter is a platform for greater exchange of ideas,
and cooperation within and outside the F&F sectors.

ANDERS WIJKMAN
Honorary President, Club of Rome
Former Member of theEuropean Parliament

The timing of the
Sustainability Charter is...
perfect, because this Charterdemonstrates that thefragrance and flavor industries
are well prepared to meetincreasingly ambitious climate
and environment as well associal requirements.

Speaking at the first IFRA-IOFI Sustainability
Community webinar, September 202011

Charter signatories
126 signatory companies at 31 May 2021

ADM
Advanced Biotech Inc.
Argeville S.A.S.
Aromatica
Aromáticos La Victoria S.A. de C.V.
Aromsa A.S.
Arylessence Inc.
Austria Juice GmbH
Axxence Aromatic GmbH
Azur Fragrances
BASF S.E.
Bell Flavors & FragrancesBest Value Chem Pvt Ltd
Blue Pacific Flavors Inc.
Bontoux S.A.S.
Brenntag South Africa (Pty) Ltd.
Buteressence B.V.
Carvansons Ltd.
Chemi. Com. Japan Corp.
Citral Óleos Essenciais Ltda.
Citrus and Allied Essences Ltd.
Cosmo International Fragrances S.A.
CPL Aromas Ltd.
Creative Flavours & Fragrances S.R.L.
Curt Georgi GmbH & Co. KG.
Custom Essence Inc.
Daiho Perfumery Co. Ltd.
Destilaciones Bordas S.A.
Destilla GmbH
Dreidoppel GmbHRoyal DSM
Eikodo & Co. Ltd.
Essencia, Ätherische Oele AG.
Eurofragance S.L.U.
European Flavours & Fragrances P.L.C.
Expressions Parfumées
F.D. Copeland & Sons Ltd.
FGA Laboratories Co. Ltd.
Firmenich S.A.
Flavor & Fragrance Specialties Inc.
Flavorchem Co.
Floral Concept
Foodarom Group Inc.
FoodSpec Co. (Pty) Ltd.

12

Fourchem (Pty) Ltd.
Frey + Lau GmbHFuyo Trading Inc.
Givaudan S.A.
Grau Aromatics GmbH & Co. KG.
GRC Parfum S.P.A.
Holland Aromatics B.V.
International Flavors and Fragrances Inc.
Ikeda Corporation
Illovo Sugar Ltd.
Ina Trading Co. Ltd.
Inabata Koryo Co. Ltd.
Inoue Perfumery MFG. Co. Ltd.
Jean Gazignaire S.A.S.
Jean Niel S.A.S.
Kancor Ingredients Ltd.
Kerry Group
Kobayashi Perfumery Co. Ltd.
Koei Kogyo Co. Ltd.
Kohken Food & Flavor Co. Ltd.
Kyowa Perfumery Co. Ltd.
La Tour S.A.
Laboratorios Mixim S.A. de C.V.
Lausitzer Früchteverarbeitung GmbH
Lionel Hitchen Ltd.
L'Italiana Aromi S.R.L.
Lluch Essence S.L.
Lucta S.A.
MG International Fragrance Co. (Gülçiçek)
Miltitz Aromatics GmbH
Miyasaka Koryo Co. Ltd.
Muller & Koster S.P.A.
Musashino Aromatic Chemical Co. Ltd.
Nagaoka Co. Ltd.
Neone Creation Co. Ltd.
Nippon Flavour Kogyo Co. Ltd.
Nippon Koryo Yakuhin Kaisha, Ltd.
Nisshin Perfumery Co. Ltd.
Ocean Spray Cranberries Inc.
Ogawa & Co. Ltd.
Ohtsuki & Co. Ltd.
O'Laughlin Industries Inc.
Omega Ingredients Ltd.
Orchadia Solutions Ltd.

Parfex S.A.
Parfum Parfait Ltd.
Payan Bertrand S.A.
PepsiCo Inc.
Phoenix Aromas & Essential Oils LLC
Premier Specialties, Inc.
PT. Indesso Aroma
PT. Van Aroma
Puris Natural Aroma Chemicals (Pty) Ltd.
Quintessence Fragrances Ltd
Quintis (Pty) Ltd.
Robertet S.A.
Sacmar srl
Sakae Aromatic Co. Ltd.
San-Ei Gen F.F.I. Inc.
Sasakikoryo Co. Ltd.
Seikodo Ishida Co. Ltd.
Shiono Koryo Kaisha Ltd.
Shonan Flavors Inc.
Silesia Gerhard Hanke GmbH & Co. KG.
Skimmelberg Fynbos Oils (Pty) Ltd.
Solvay Aroma Performance
Sozio
Symrise AG
Synaco S.A.
Synergy Flavors Inc.
T. Hasegawa Co. Ltd.
Taiyo Corporation
Takasago International Corporation
Tanemura & Co. Ltd.
TechnicoFlor Group
Treatt Plc
Ultra International Ltd.
V. Mane Fils
Versions Originales Aromatiques
Virginia Dare
Vollmens Fragrances Ltda.
Yokoyama Koryo Ltd.

Charter signatories
National/regional breakdown
According to signatory company headquarters

NETHERLANDSBELGIUM

2

CANADA

1

UNITED KINGDOMGERMANY

10

13

3

IRELAND

1

UNITED STATESSWITZERLAND

3

SPAIN

4

17

JAPAN

33

TURKEYFRANCE

2

15

MEXICO

INDIA

2

3

COLOMBIA
ITALY

1

5

BRAZIL2NORTH
AMERICA18

LATIN
AMERICA5

SOUTH AFRICA

INDONESIA

2

6
AUSTRALIA

1

EUROPE58

AFRICA

6

ASIA-PACIFIC

39

13

IFRA-IOFI Sustainability Charter
A Sense of Responsibility, a Commitment to Sustainability

Our commitment to more sustainable businesses and a more sustainable planet
A new imperative
It is increasingly clear that a commitment to sustainable business practices also makes goodlong- term economic sense.
Whether it is by reducing use of finite resources, careful management of renewable resources,
responsible employment practices, promoting leading-edge safety standards, or nurturing ofrelationships with stakeholders, customers and consumers, all aspects of a business value chain
can benefit from a sustainable approach.
It is in this context, and with a strong reference to the United Nations Sustainable Development
Goals (SDGs), that the flavor and fragrance industries launch this sustainability initiative.

A framework for progressThrough this voluntary initiative, the flavor and fragrance industries seek to encourageenhancements in the field of sustainability by offering advice, sharing best practice, andmeasuring improvement by:
Raising awareness of sustainability within the sector
Providing businesses with a toolbox to help them continuously improve their performance
Reporting on progress at an industry level
Continuing to build trust between the flavor and fragrance industries and stakeholders
Identifying opportunities for collaboration to address shared challenges

▪
▪
▪
▪
▪

IOFI and IFRA, as the global organizations representing the flavor and fragrance industries, provide theplatform for companies to identify, assess and report on advances in the field of sustainability, setting aframework for progress that encompasses the life-cycle – from sustainable sourcing, to environmental
footprint, to well-being of employees, to product safety.

A flexible, open and responsive approach
The flavor and fragrances industries are diverse, so there can be no one-size-fits-all approach. Thisinitiative is intended to be open and inclusive.
In this spirit, companies will assess the advice according to their activities and adapt theirapproach to reporting, including any validation and certification, based on their size and thescope of their activities.
The intention of this initiative is to encourage broad support and participation, driving continuous
improvement in five key areas as part of our commitment to sustainability.
But the initiative also seeks engagement and dialogue – both within the flavor and fragrance
value chains, and with stakeholders outside our industries. We are committed to listening to andseeking advice from external stakeholders, to understanding society’s expectations of us, andto using the feedback we receive as part of a continual review of our approach.

14

Sustainability
Charter

Our commitment to sustainability
The flavour and fragrance industries aspire to:
1. Ensure responsible sourcing throughout the value chain
1.1 We foster the economic health of farmers and local communities with fair and long-term partnerships
1.2 We promote respectful labour practices in line with human rights and international labour standards
1.3 We aspire to protect, restore and promote sustainable use of ecosystems
2. Reduce our industries’ environmental footprint and address climate change
2.1 We continuously seek to reduce the environmental footprint of our product portfolio (natural andsynthetic)
2.2 We apply measures to efficiently manage resources such as water and energy, reduce GHG emissions,and support the integration of circular economy principles
2.3 We are inspired by green chemistry principles
3. Enhance the well-being of employees and ensure a rewarding labour environment
3.1 We make employees’ health and workplace safety a priority
3.2 We aspire to ensure equal opportunities and fair treatment of all employees, and promote diversity andinclusion
3.3 We provide opportunities to upgrade professional skills through training and development
4. Be at the leading edge of product safety
4.1 We submit our ingredients to a multi-step safety assessment and comply with rigorous risk
management measures
4.2 We work with our customers to design products that are safe for consumers and the environment
4.3 We comply with the requirements of regulators and downstream customers and often go beyond toensure optimum safety
4.4 We practice product stewardship by providing information and strengthening confidence in the safetyof our materials
5. Be transparent and a reliable partner for society
5.1 We provide regulatory bodies, industry partners and their downstream customers with technical,
scientific and communication support while protecting intellectual property
5.2 We do not tolerate anti-competitive behaviour, corruption and bribery practices within our businessand our Members themselves are committed to complying with the IFRA-IOFI Antitrust Compliance Policy
5.3 We communicate about our activities according to international reporting standards and the UN
Sustainable Development Goals
5.4 We enhance stakeholder dialogue and collaboration along the value chain, including with otherbusinesses, NGOs and governments, to address shared areas of interest

15

Focus Areas andthe UN SDGs
With a strong reference to the United
Nations Sustainable Development Goals (SDGs),
the fragrance and flavor industries will continue
to use the Charter to contribute to public policy
objectives and to communicate about ouractivities according to international reporting
standards and the SDGs.
Activities under each Focus Area relate to one ormore of the United Nations Sustainable
Development Goals.

We have selected a series of SDGs for each
Focus Area, ranked according to their relevanceto the Charter, and noted some specific subtargets of particular relevance.
Please note that this mapping isbased on our own assessment and may differ
from individual company approaches.

FOCUS AREA 1 - RESPONSIBLE SOURCING
Relevant sub-target
12.2 By 2030, achieve thesustainable management andefficient use of natural resources

FOCUS AREA 2 - ENVIRONMENTAL FOOTPRINT
Relevant sub-target
9.2 By 2030, upgrade infrastructure and retrofit
industries to make them sustainable, with increased
resource-use efficiency and greater adoption of clean
and environmentally sound technologies and industrial
processes, with all countries taking action inaccordance with their respective capabilities

16

FOCUS AREA 3 - WELL-BEING OF EMPLOYEES
Relevant sub-targets
8.8 Protect labour rights andpromote safe and secure working
environments for all workers
10.3 Ensure equal opportunity andreduce inequalities of outcome,including by eliminating discriminatory
laws, policies and practices andpromoting appropriate legislation,
policies and action in this regard

FOCUS AREA 4 - PRODUCT SAFETY

FOCUS AREA 5 - TRANSPARENCY & PARTNERSHIPS
Relevant sub-targets
17.16 Enhance the global partnership for sustainable
development, complemented by multi-stakeholder
partnerships that mobilize and share knowledge,
expertise, technology and financial resources, tosupport the achievement of the sustainable
development goals in all countries, in particulardeveloping countries
17.17 Encourage and promote effective public, publicprivate and civil society partnerships, building on theexperience and resourcing strategies of partnerships

17

Charter development
Q4 2016

Kick-off conference

IFRA and IOFI brought together agroup of members at a meeting in
Nice to begin the journey

2018Internal reality check

Based on initial discussions in the
Task Force, we gathered feedback
from a wider group of members

Q3-Q4 2019

External reality check

IFRA and IOFI consulted policymakers andother trusted external opinion leaders togather feedback and suggestions

July 2020

Public launch of the Charter

With around 100 companies signed
up, we made the initiative public andlaunched our website

Q4 2020

Charter toolbox published online

To aid progress against the Charter
Commitments, we provided information on
legal frameworks and other programs

Q1 2017

Sustainability Task Force established

IFRA and IOFI set up a standing joint groupof members to map the path forward for
the Sustainability CharterQ2 2019
Trial run

The feedback on the Charter allowed
us to conduct a sample survey tounderstand the state of play

Q4 2019

Legal assessment

Mindful of the need to ensure faircompetition and compliance with antitrust law, we requested a legal checkQ4 2020Signatories respond to survey

Signatories were invited to complete asurvey: the results in this 2020-21 Report
represent a 'baseline' to measure progress

June 2021

First Sustainability Report publishedThis first Report gives the results of thesurvey, an overview of the Charter, andhighlights our other activities in 2020-21

18

From Commitment
to Progress
Following general endorsement by senior company
representatives of the Charter, we moved into a four-steptiered approach that takes participating companies andthe F&F industries from commitment to progress:

Highlighting progressAn aggregated annual Reportshows progress as an industry,including in relation to UN
Sustainable Development Goals

ImprovingCompanies receive a 'toolbox'with provided information on
legal frameworks and otherprograms

Reporting

Signatories complete a survey,
allowing us to assess industry
progress

Commitment

Participating companies
agree to progress on five
Focus Areas and 17
Commitments

19

Results &Activities
2020-21

Introduction
Results & Activities 2020-21

About the Report
This first annual IFRA-IOFI Sustainability Report
is an important one.
First, it provides an opportunity to introduce theSustainability Charter to a wider audience: toshare information about our journey to raise thebar for sustainability in our industries.
Second, it provides the first data on the 'maturity
level' in our industries against the Commitments
contained in the Charter. It sets the benchmark
for future reports, allowing us to measureprogress in the coming years and for signatorycompanies to drive improvement.
Part A: State of PlayThe first part of the Report is based on a surveyof signatory companies. More than 100
companies responded to the survey - a response
rate of more than 80 per cent, covering the vast
majority of the industries by market share. This
feedback allows us to present a representative
picture of sustainability across the industries.
The survey included 31 questions based on thefive Focus Areas and 17 Commitments.
Signatory companies gave a self-assessment of
their sustainability efforts - an indication ofwhether they had programs in place or wereplanning initiatives; the extent to which theyreported their work; and how they complied withinternationally-recognized norms and standards.
The results of the survey are set out in two ways.
The principal metric is the number ofcompanies. This approach allows us to assess
progress across the industry, from small
businesses to large multinationals, giving equal
weighting to each company.
However, we believe that it is also important togive a more balanced impression of thesustainability profile of the industries by taking
into account market share. We have therefore
used available data to estimate the industries'
overall sustainability profile based on the size ofcompanies.
This part of the Report also includes further
information on each Focus Area and maps eachone against the relevant United Nations
Sustainable Development Goals, also known as
the SDGs or 'Global Goals'. (This mapping isbased on our own assessment and may differ
from individual company approaches.)
Part B: Our activities
The second part of the Report gives a shortoverview of the key events undertaken in 2020,
including the formal launch of the Charter, thepublication online of a 'Toolbox' of sustainability
initiatives, programs and laws, and the creationof new groups to bring together signatories andoversee the development of the Charter.

21

FOCUS AREA 1

Responsible sourcing
About this focus area
Ensure responsible sourcing throughout thevalue chain
The fragrance and flavor industries have a keyrole to play in socio-economic development
relating to the sourcing of raw materials –notably in relation to job creation, skills
development and the improvement of
employment prospects. This is especially
important for people living far from the main
centers of employment.
F&F companies must ensure respect for humanrights and labor standards in our activities andproducts, as well as in our business relationships
and in monitoring the activities of partners. In
areas where there is political instability or evenconflict, companies have to be especiallyvigilant.
In their operations and supply chains, F&F
companies rely on a variety of ecosystemservices that are generally classified as common
property and/or public goods, and which must be
protected. The protection and/or rehabilitation of
biodiversity is an imperative as well as anopportunity to develop new projects and engage
employees and wider communities.
As responsible industries, we should also seek togo beyond our core business activities bycontributing to dynamic and positive change at a
local level, whether through involvement ineducation or culture, community cohesion or
wider technological development.

Results in summary
The survey results highlight good progressin the area of responsible sourcing: wellover half of respondents alreadyhave a strategy in place; another fifth plan
to create a strategy in 2021.
More than a third of respondents use
internationally recognized evaluation tools,
and when mapped against market share, wellover 90% of the fragrance and flavor market isat this most advanced level.
More than 70% of respondents - including thecompanies that make up the vast majority ofthe market - engage in dialogue with farmers
and local communities, supporting equitable
practices, community development andeducation (Commitment 1.1).
Companies representing the vast majority ofthe market have developed roadmaps to
identify, map and mitigate risks relating tolabour standards (Commitment 1.2) - and wehope that in the coming years morecompanies will be able to join them.
Likewise, the 14 companies who haveestablished biodiversity and ecosystem
protection plans (Commitment 1.3) include
the largest companies - meaning that F&F
market as a whole demonstrates a strong
attachment to respecting the natural world.

Activities under this Focus
Area relate to a number ofUnited Nations Sustainable
Development Goals
The selected SDGs areranked according to theirrelevance to the Charter
23

FOCUS AREA 1 - RESPONSIBLE SOURCING

Results

Number of companies

A ► Does yourcompany have a global
responsible sourcing
strategy in place?

20

It does
not havea strategy
in place

19

It plans it
as a future
goal (within
12 months)

B ► Does yourcompany have recourse
to internationallyrecognized evaluation
tools?

57

It has a
strategy in
place

5

This Objective is
not relevant to its
activities

20 / 36
NO

3 OUT OF 4RESPONDENTS>90% OF THE
F&F MARKET

have a responsible sourcing
strategy in place or plan todevelop one within the next year

24

YES

C ► What tools areused by your company?

EcoVadis

27

SMETA

27

ISO26000

6

Others2

FOCUS AREA 1 - RESPONSIBLE SOURCING

Results

Number of companies

COMMITMENT 1.1 ► How does your company foster the economic
health of farmers and local communities with fair and long-term
partnerships?

26

It does not engage
with farmers andlocal communities

18

It engages in
dialogue with
farmers and local
communities; noactive participation
in local initiatives,
development
projects, etc

MORE THAN 7 IN
10 RESPONDENTS

28

It is occasionally involved
in initiatives that
contribute to thedevelopment of local
communities

24

It pro-actively allocatesbudget todevelop/participate ininitiatives that contributeto the development oflocal communities>90% OF THE
F&F MARKET

are engaged in dialogue or
initiatives to support farmers
and local communities

25

FOCUS AREA 1 - RESPONSIBLE SOURCING

Results

Number of companies

COMMITMENT 1.2 ► How does your company promote respectfullabor practices in line with human rights and international labor
standards?

69

17

10

It is aware of and complies withinternational labour standards
and relevant regulations in the
countries in which it operates

It leads ad hoc
assessments of labour
practices within its riskprone supply chains

It has a roadmap where risks
related to non-respect of labour
standards are significantly
identified, mapped and mitigatedCOMMITMENT 1.3 ► How does your company protect, restore andpromote sustainable use of ecosystems?

26

39

It is aware of relevant
legislation and regulation
regarding biodiversity
protection within ecosystems
impacted by its activities

It complies with relevant legislation
and regulation regarding biodiversity
protection within ecosystems
impacted by its activities

26

16

14

It is occasionally involved
in initiatives that contributeto the protection of
ecosystems impacted by
its activities

It systematically establishes concrete action plans
intended to mitigate the impact of its activities on
biodiversity and is proactively involved in initiatives
to protect of ecosystems impacted by its activities

FOCUS AREA 2

Environmental footprint
and climate change
About this focus area
Reduce our industries’ environmental footprint and address climate change
Increasing concerns over climate change raised
expectations of industry. Regulators, customers
and other stakeholders want to know how we will
anticipate issues, diminish risks, lower
emissions and develop solutions. The fragrance
and flavor industries are committed to a circular
economy approach with practical measures that
include limiting the environmental impact of theirfacilities and investing to comply withenvironmental rules.
Engaging in a circular economy approachrequires us to rethink the old industry model andadapt it to changed societal expectations. For
example, waste is becoming either a material
resource or an energy resource (throughrecycling and energy recovery), with a circular
economy approach allowing companies tocreate value and make savings by lowering
waste treatment costs or reusing materials.

To ensure resource availability in the future,companies should ensure that the raw materials
used in our industries - whether natural orsynthetic – are used efficiently. The sustainability
and environmental footprint of both natural andsynthetic ingredients will need to be considered,examining the sustainability profile of each typeon a case-by-case basis.
In addition, companies should use energy, waterand other resources carefully, and implement the
principles of green chemistry, in the knowledge
that resource consumption is closely linked totheir overall environmental impact – both globallyand locally. Other concerns relate to the use of
non-renewable resources. Optimizing
consumption and avoiding overconsumption,
particularly of electricity, not only reduces theenvironmental impact but can give companies acompetitive edge.

Results in summary
More than 75% of respondents, and more than
90% of the fragrance and flavor market bymarket share, have a global environmental
strategy, implementing eco-design measuresand acting to reduce consumption and waste.
Between a fifth and a third of respondents havewaste roadmaps or are implementing new
business practices to reduce energy and water
consumption, greenhouse gas emissions andwaste (Commitment 2.2). With this number
covering the vast majority of the market, the F&F
industry exhibits a good environmental profile.
Green chemistry (Commitment 2.3) is an
emerging practice but more than half
respondents use it in some form, and IFRA andIOFI are taking action to increase awareness ofgreen chemistry and encourage greater uptakeof its principles.

Activities under this Focus
Area relate to a number ofUnited Nations Sustainable
Development Goals
The selected SDGs areranked according to theirrelevance to the Charter
27

FOCUS AREA 2 - ENVIRONMENTAL FOOTPRINT

Results

Number of companies

A ► Does yourcompany have a global
environmental impact
assessment andmanagement strategy
in place?

24
34
42

It does nothave astrategy inplace
It plans it asa future goal(within 12
months)B ► Does yourcompany have recourse
to internationallyrecognized evaluation
tools?

It has a
strategy inplace

13 / 29
NO

3 OUT OF 4RESPONDENTS

YES>90% OF THE
F&F MARKET

have a global environmental impact assessmentand management strategy in place or plan todevelop one within the next year28

C ► What tools areused by your company?

EcoVadis

22

CDP

14

ISO26000

5Others7

FOCUS AREA 2 - ENVIRONMENTAL FOOTPRINT

Results

Number of companies

COMMITMENT 2.1 ► How does your company reduce theenvironmental footprint of its products?

28

It does not integrate an
eco-design approach
into its generalmanufacturing policies

16 44

It is considering
an eco-design
approach but has
not implemented
it yetMORE THAN HALF
OF RESPONDENTS

It has partially integrated
eco-design principles into
its processes

11

It leads life-cycle
assessments and integrates
accordingly eco-designprinciples into its processes>90% OF THE
F&F MARKET

have integrated some degreeof eco-design principles into
their processes

29

FOCUS AREA 2 - ENVIRONMENTAL FOOTPRINT

Results

Number of companies

COMMITMENT 2.2 ► How does your company apply measures to...
...efficiently
manageresources suchas energy?
It does notmeasure or
track footprint/
consumption/
emissions...efficiently
manageresources suchas water?

...reduce
greenhousegas (GHG)
emissions?

...reduce its waste
footprint andintegrate circular
economy principles?

19

21

18

38
It measures andtracks footprint/
consumption/
emissions andtakes reduction
measures

41
45
53
56
It has developed
a mid- to longterm roadmap to
reduce footprint/
consumption/
emissions

12
18

14

19

plus partially takes into
account circular
economy principles

plus tries to optimize
processes regarding
water wastage

It invests in andimplements new
business models
to increase
efficiency

30

9
16

9
It has established longterm ‘science-based’
reduction targets

12
including processes such as
using renewable, bio-based or
fully recyclable inputs, or
recovering resources

FOCUS AREA 2 - ENVIRONMENTAL FOOTPRINT

Results

Number of companies

COMMITMENT 2.3 ► How does your company implement green
chemistry principles?

47

39

14

It does not incorporate
green chemistry
principles into its
processes

It occasionallyimplements green
chemistry principles into
its processes

It develops assessment tools to
fully incorporate green chemistry
principles into its manufacturing
processes

The safe and sustainable chemicals of tomorroware bio-inspired from nature today.
I am glad that the fragrance and flavor industries
have adopted green chemistry principles in theCharter, as they are the foundation for natureembracing diversity in future raw materials.
The Toolbox, which includes the green chemistry
principles, will help companies make supply
chains more robust, resilient and competitive.

Dr JOHN WARNER
Chemist, inventor, educator,
entrepreneur, and one of
Speaking
at the first
the founders
ofIFRA-IOFI
the field of
Sustainability
Community
webinar,green
chemistry
September 2020

31

FOCUS AREA 3

Well-being of employees
About this focus area
Enhance the well-being of employees and ensure a rewarding labor environment
Companies have a moral and legal duty toensure health and safety at work. But there isalso an economic incentive: prevention helps toreduce risks, prevent accidents and illness, andboost economic performance.

The fragrance and flavor industries, as significant
employers, have a role to play on subjects such as
equal pay and protection of certain groups in theworkforce (such as young people, older people
and people with disabilities).

Given the materials used, the fragrance andflavor industries have the potential to expose
workers to potential occupational risks. We
should therefore anticipate and limit the risks
associated with products and processes toensure the health and safety of employees.

The challenge is to allow diverse talents toexpress themselves fully and sustainably in thecompany, and to respect all differences. By
implementing a diversity and equal opportunities
policy and promoting inclusion, companies canincrease their attractiveness as employers andimprove performance.

Like other industries, we have to address
physical risks (from travel, musculoskeletal
disorders, lifting, electrical charge, noise and soon) as well as psychological and social hazards.
These issues also affect our employees andservice providers, who should be informed ofhealth and safety rules and guidance.

A well-established social dialogue improves thefunctioning of companies and reduces the risk of
conflict. Involving employees in the development
and implementation of their own working
conditions increases their satisfaction, well-being,
motivation, loyalty and performance.

Results in summary
Employee well-being is a Focus Area wherefragrance and flavor companies are alreadyshowing exceptional progress, with more than
70% of respondents having health and safety
strategies in place that go beyond implementationof regulatory requirement; nearly half using
internationally recognized evaluation tools.
Going beyond legal compliance and awarenessof equal treatment principles, more than half ofActivities under this Focus
Area relate to a number ofUnited Nations Sustainable
Development Goals
The selected SDGs areranked according to theirrelevance to the Charter32

respondents embed these principles in theirpolicies and processes. Based on market share,
the vast majority of F&F employees have thisadvanced level of protection (Commitment 3.2).
Around half of respondents also report best
occupational health and safety (Commitment
3.1) and training and development practices(Commitment 3.3), well beyond legal
requirements in these fields.

FOCUS AREA 3 - WELL-BEING OF EMPLOYEES

Results

Number of companies

A ► Does yourcompany have a
global occupational
health and safety(OHS) strategy inplace?
does not
14 Ithaveastrategy in
place

17
70

It plans it asa future goal(within 12
months)B ► Does yourcompany have recourse
to internationallyrecognized evaluation
tools?

It has a
strategy inplace

C ► What tools areused by your company?

EcoVadis

36

SMETA

30

ISO26000

6

SA80003

ISO45001

11

Others3

22 / 48
NO

MORE THAN 5 IN
6 RESPONDENTS

YES>95% OF THE
F&F MARKET

have a global occupational health and safety (OHS) strategy inplace or plan to develop one within the next year

33

FOCUS AREA 3 - WELL-BEING OF EMPLOYEES

Results

Number of companies

COMMITMENT 3.1 ► How does your company makes employees’
health and workplace safety a priority?

It is aware of and complies withinternational occupational healthand safety (OHS) standards andrelevant regulations in the
countries in which it operates

It develops and implements acomprehensive occupational
health and safety (OHS)
management program aimed atpreventing occupational
diseases and reducing theseverity and frequency ofworkplace incidents

42
It partially integrates
occupational health and safety(OHS) management processes,
ensuring continuous
performance improvement

43
16

COMMITMENT 3.2 ► How does your company ensure equal
opportunities and fair treatment of all employees?

34

29

18

54

It is aware of and complies withinternational standards andrelevant regulations in the
countries in which it operates

It takes the principles of equalityof opportunity and fair treatment
into account in the developmentof its policies and processes andpartially implements them

It fully embeds the principlesof equality in its policies andprocesses for both employees
and governing bodies

FOCUS AREA 3 - WELL-BEING OF EMPLOYEES

Results

Number of companies

COMMITMENT 3.3 ► How does your company provide
opportunities to upgrade professional skills through training anddevelopment?

18

34

49

It complies with international
standards and relevant
regulations in the countries inwhich it operates

It offers incentives and/or opportunities for
employees to obtain extra qualifications
and partially integrates them in thedevelopment of its policies and processes

It regularly offers training
programs and integrates thedevelopment of its workforce
in its policies and processes
for both employees andgoverning bodies

COVID-19 and employee well-being
The coronavirus pandemic that began in 2019has presented many occupational health andsafety challenges for industry, including thefragrance and flavor industries.
IFRA and IOFI have supported member
companies through the development of bestpractice guidance documents by OHS experts
and by monitoring legislative and policy changes
around the world and communicating key points.

F&F companies play an essential role in the two
industries' value chains and both IFRA and IOFI
worked with governments to keep facilities open,
keep supply chains working, and - crucially - keep
employees safe.
This work by the two Associations highlights
how the Sustainability Charter is a living,practical endeavor that helps the F&F
industries respond to emerging challenges.

35

FOCUS AREA 4

Product safety
About this focus area
Be at the leading edge of product safety
Good manufacturing processes are the starting
point for the development of products with ahigh level of safety and a good environmental
profile. The benefits for companies of highquality processes and products are significant –not only in relation to consumer satisfaction andprotection, but also in terms of financial savingsand competitive advantage.
‘Safety by design’ means that companies need torethink key phases in a product life cycle, frommanufacturing, to use, to end-of-life. It means
managing risk, meeting customer and consumer
expectations with regard to protection of humanhealth and the environment, developing systems
that ensure that the right people have the rightinformation at the right time.
IFRA and IOFI have Codes of Practice addressing
product safety and other topics. More information
can be found on p37.

Results in summary
Product safety is at the heart of all the fragrance
and flavor industries do, and is a non-negotiablerequirement of F&F companies. As a result, oursurvey was more limited on this Focus Area:
compliance is a 'given'.

point, with around half of those doing sosystematically. This includes all the largest
companies, ensuring that the vast majority of themarket is engaged in close cooperation on
product safety.

Nevertheless, we asked signatories for more
information on how they work with customers in
consumer good companies to ensure productsafety (Commitment 4.2). More than 90% of
respondents engage in some manner on thisOn product stewardship (Commitment 4.4),
around three in every five companies provide
information beyond legal requirements, withmore than a quarter providing educational
support in a proactive way.

Activities under this Focus
Area relate to the United
Nations Sustainable
Development Goals

36

FOCUS AREA 4 - PRODUCT SAFETY

Results

Number of companies

COMMITMENT 4.2 ► How does your company work with its
customers to design products that are safe for consumers and theenvironment?

7

It does not engage with customers
to improve the health and safety
impact of its products49

It occasionally engages withcustomers to improve the healthand safety impact of its products

45

42

43

It systematically engages with customers to
improve the health and safety impact of its products
through the different stages of a product life cycle

Codes of Practice supporting product safety
IFRA and IOFI have Codes of Practice addressing
product safety and other topics.

use of certain ingredients); and adhere to good
operating practices.

The IFRA Code of Practice is the global
fragrance industry's commitment to promoting
the safe use of fragrance for everyone’s
enjoyment. It applies to all IFRA members
worldwide and covers the manufacture andhandling of all fragrance materials, for all types
of applications.

The IOFI Code of Practice consists of
information describing best practices regarding
the safety, composition, manufacture,description and labeling of flavorings.

The Code of Practice has been shared withregulatory bodies and other stakeholders and isrecognized in regulations or guidance documents
issued by authorities around the world.
The IFRA Code of Practice has three obligations:comply with external regulation; apply the IFRA
Standards (which ban, limit or set criteria for the

The application of the Code of Practice does notrelieve individual manufacturers or users offlavorings from the obligation to comply with all
local, national, or international regulations thatpertain to their operations. These regulations
take precedence over this Code.
In those countries where specific legislation andregulations applicable to flavorings are not inforce, the Code of Practice may serve as a bestpractices resource.

37
35

FOCUS AREA 4 - PRODUCT SAFETY

Results

Number of companies

COMMITMENT 4.4 ► How does your company practiceproduct stewardship?

39

It provides information
to comply with legal
requirements

33

It has established a consistent
strategy to disseminate informationon the safety of materials

29

38

42

43

It disseminates informationand provides educational
support in a proactive way

FOCUS AREA 5

Transparency &partnerships
About this focus area
Be transparent and a reliable partner for society
Business ethics guide companies to makedecisions that are fair and transparent and toprevent risks associated with unethical businessor industrial practices. Business failures in thisarea can have a significant impact in terms of
reputational damage, as well as leading topossible commercial, civil or criminal penalties.
With a strategy in place, a company should
develop indicators that allow analysis and followup of results and define a new direction if
necessary. Although reporting is not an end in
itself, these indicators have to be considered asa tool for continuous improvement.
Externally, a company can communicate onthese indicators to strengthen the credibility of
its actions and set an example. Building dialogue
with external stakeholders helps to create anenvironment that is conducive to understandingof a company's business and helping it toimprove.

Results in summary
More than three in four respondents have a
global responsive governance strategy inplace, including all the largest companies.
These companies are also engaged in themost advanced level of reporting on theirsustainability activities, being among the 27
companies that report according tointernational standards.
More than three in every five respondents
employs anti-corruption measures that go
beyond legislative requirements(Commitment 5.2) and approximately twothirds are engaged in ongoing dialogue with
political stakeholders (Commitment 5.4),
with almost every signatory company
involved in some form of dialogue.

Through our collective sectoral framework, weseek to enhance transparency, communicationand external reporting about our industries.
IFRA and IOFI conduct all our activities in linewith our antitrust compliance policies. We
provide regulatory bodies, industry partners andstakeholders with key technical and scientificinformation. We also enhance stakeholder
dialogue and collaboration along the value chain
with other businesses and stakeholders toaddress shared areas of interest.

Activities under this Focus
Area relate to a number ofUnited Nations Sustainable
Development Goals
The selected SDGs areranked according to theirrelevance to the Charter
39

FOCUS AREA 5 - TRANSPARENCY & PARTNERSHIPS

Results

Number of companies

A ► Does yourcompany have a
global responsive
governancestrategy in place?

B ► How does yourcompany communicate
about its activities
according to reporting
standards and the UN
Sustainable
Development Goals?

23

It does nothave astrategy in
place

47

It does not disclose
its sustainability
performance beyond
what is mandatory

22

It plans it asa future goal(within 12
months)26

It reports
partially on its
sustainability
performance

56

It has a
strategy in
place

9
18

MORE THAN HALF
OF RESPONDENTS

It reports in accordancewith internationallyrecognized standards
like UNGC, GRI, etc.
It reports in linewith international
standards, noting
contribution to UN
SDGs>95% OF THE
F&F MARKET

report on their sustainability
performance in some form, including
under international reporting standards

40

C ► What tools areused by your company?
GRI

18

UNGC

13

Others5

FOCUS AREA 5 - TRANSPARENCY & PARTNERSHIPS

Results

Number of companies

COMMITMENT 5.2 ► How does your company prevent and fightanti-competitive behavior, corruption and bribery practices?

38

It is aware and complies with
relevant regulations in the countries
in which it operates

27

It establishes processes to prevent
any anti-competitive behavior,corruption and bribery practices

36

42

43

It has formal processes to prevent anti-competitive behavior,corruption and bribery practices (such as documents signedby all employees) and penalties in case of violations

COMMITMENT 5.4 ► How does your company enhance
stakeholder dialogue and collaboration along the value chain?
It does not engage in any
dialogue with stakeholders

It works in close cooperation
with its stakeholders andactively involves them in thecontext of its activities

25

30
It communicatesreactively with its
stakeholders whenneededIt has established an ongoingand consistent dialogue withits key stakeholders

40
41Our activities in 2020-21
The public launch of the IFRA-IOFI Sustainability
Charter on 1 July 2020 was an opportunity toshare our initiative with the wider world andcelebrate the achievement of bringing together
more than 100 companies from the fragrance
and flavor industries to back a joint program.
The launch featured media activities by the two
Associations and by many signatories, withcoverage in trade media and positive feedback
on social media.
We also made improvements to the Charter
website at ifra-iofi.org, including the creation of ablog, to clearly explain the various elements of
the Charter, and the development of a new
Toolbox for signatories.
This Toolbox provides resources for signatorycompanies on implementing the Commitments
outlined in the Charter - with information on goodpractices, an opportunity to share good practice,details of legal/regulatory frameworks andsustainability tools/programs, and international
disclosure standards.

We also worked to broaden the reach of theCharter: first, by providing translations of theCharter documents in Chinese, Japanese,
Spanish and Portuguese on the Charter websites.
Second, we held a series of introductory
webinars for IFRA and IOFI members to explain
the Charter and encourage participation in theinitiative. National webinars were held in 2020
and 2021 with companies and Associations
from Turkey, Latin America, France, UnitedStates, Spain, South Africa, and Asia-Pacific.
We also created the IFRA-IOFI Sustainability
Community - a platform for signatories and IFRA
and IOFI national associations to come together
and discuss sustainability topics and issues
relating to the Charter.
The first Sustainability Community webinar, heldin September 2020, included a thoughtprovoking presentation on 'Rethink Economics:
Give Value to Nature' by Anders Wijkman, aformer Member of the European Parliament andHonorary President of the Club of Rome.

Through the BioInnovation Africa (BIA) project, which is commissionedby the German Federal Ministry for Economic Cooperation andDevelopment (BMZ), the Deutsche Gesellschaft für Internationale
Zusammenarbeit (GIZ) GmbH is collaborating with like-minded partners
such as IOFI and IFRA to foster equitable European-African business
partnerships that contribute to biodiversity conservation and sustainableuse.
Under the guidance of the South African Department of Forestry,
Fisheries and the Environment (DFFE), IOFI, IFRA, their South African
partner SAAFFI and the GIZ joined forces to elaborate a simplified andpractical framework for the sustainable trade of Buchu, a native plantfrom South Africa. The practical framework recognizes and benefits
traditional knowledge holders, and ensures compliance with the national
Access and Benefit Sharing (ABS) regulations.
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ, a German
development agency)
43

A second webinar, in December, focused on the
Toolbox. The third webinar, in March 2021,
looked at green chemistry. More than 300
participants joined a two-hour 'masterclass' with
one of the founders of the green chemistryconcept, Dr John Warner.
These Sustainability Community meetings
continue in 2021. We are also launching a new
Sustainability Committee, bringing together asmaller group of signatories and members tosteer the Charter and other sustainability
activities.
Externally, IFRA and IOFI representatives took
part in online conferences to spread the word
about the Charter. IFRA President Martina
Bianchini gave a presentation at the European
SDG Summit 2020 on Sector Sustainability
Vision and Roadmaps, hosted by CSR Europe.
IFRA also hosted a session on sustainability at
its Global Fragrance Summit in March 2021, with

Sven Ballschmiede, IOFI Executive Director,
joining the session and outlining the key points of
the Charter.
Maxime Marchal, the Charter's Project Manager,
also presented at IFIA Japan, the Annual
International Food Ingredients & Additives
Exhibition and Conference, in May 2021.
IFRA and IOFI contributed to activities bymembers and partners, including a presentation
at the annual meeting of the South African
fragrance and flavor association, SAAFFI.
Work intensified on partnerships with externalgroups. IFRA and IOFI signed a memorandum of
understanding with the Union for Ethical Biotrade(UEBT) and is working in South Africa with aGerman development agency, GIZ on
sustainability activities relating to the growing andprocessing of Buchu, a native plant from South
Africa, complementing the Associations' existing
work on compliance with the Nagoya Protocol.

The role of sectorial sustainability initiatives, suchas the IFRA-IOFI Sustainability Charter, issignificant, helping an entire sector move forward.

MARIA JULIA OLIVA
Deputy Director & Senior
Coordinator for ABS and
Policy, Union for Ethical
Biotrade (UEBT)

Speaking at the first IFRA-IOFI
Sustainability Community webinar,
September 2020

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Such initiatives coordinate companies’ collective
interests at a pre-competitive stage and raise
sectors' overall level of commitment towards
responsible sourcing practices.
Through the partnership with UEBT, IFRA-IOFI and
its members also take practical steps in turning
such commitment into action.

Glossary of reporting tools
EcoVadis
Paris-based provider of business sustainability ratingsecovadis.com
SMETA
Sedex Members Ethical Trade Audit, a social audit method provided by Sedex
sedex.com
ISO26000International social responsibility standard provided by the International
Organization for Standardization
iso.org
CDP
Carbon Disclosure Project, a not-for-profit charity that runs a global
disclosure system for management of environmental impact
cdp.netSA8000Global social certification system based on internationally recognized
standards of decent work, provided by Social Accountability International
sa-intl.org
ISO45001
International standard for management systems of occupational health andsafety, provided by the International Organization for Standardization
iso.org
GRI
The Global Reporting Initiative, an international independent standards
organization to communicate impacts on issues such as climate change,
human rights and corruption
globalreporting.org
UNGC
The United Nations Global Compact, a pact to encourage businesses toadopt sustainable and socially responsible policies, and to report on theirimplementation
unglobalcompact.org

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Sustainability
Charterifra-iofi.org