6 Sourcing for Shared Value
Sourcing for Shared Value Givaudan depends on natural resources and the communities who grow them: Sourcing for Shared Value ensures we generate benefits for everyone involved. We are committed to sourcing our raw materials responsibly, working with suppliers who respect people and the environment. We want to bring long-term stability to our supply chains, but also to the communities we source from. Developing farming partnerships and collection networks, we source directly from producers whenever possible and – in collaboration with the Givaudan Foundation, NGOs and local
partners – we run numerous community projects around the world. From promoting schools and good agricultural practices to finding ways to mitigate climate change, we help strengthen the social, economic and environmental fabrics of these communities while also supporting the supply of the raw materials we rely on. Our approach allows us to satisfy our own ethical convictions, but also those of consumers. Inspired by a flavour or a fragrance, they increasingly want to know where ingredients come from and be assured that they have been produced in a sustainable way: the transparency ingrained in our supply chain helps our customers meet this consumer need. We call our overall approach Sourcing for Shared Value because it brings new value to all involved. It is based on the three practices of Responsible Sourcing, Sourcing at Origin and Communities at Source. Our Sustainability Approach
Supplier screening
Operations and suppliers with significant social risks
All new relationships between Givaudan and vendors are developed using vendor requirement guidelines as reference material. We encourage selected suppliers to improve their performance. One way we do this is by inviting suppliers to register with Sedex, a data-sharing platform to improve supply chain practices.
Since 2008, Givaudan has been an active user of the Sedex platform which incorporates human rights risks in its assessments. Child labour or the exposure of young workers to hazardous work can be an issue across the entire supply chain covering our own operations and those of our suppliers, and 100% of our operations are assessed for risk in this area.
–– Total number of significant suppliers identified: 400
Since 2010, all Givaudan production sites have been registered on Sedex and completed Sedex self-assessment questionnaires (SAQ) to share information with customers. Givaudan annually reviews and updates the SAQ. To date, 39 Givaudan sites have been audited according to SMETA standards.
–– Total number of suppliers assessed to date: 310 –– Percentage of suppliers assessed to date: 78% –– Total number of suppliers assessed in 2018: 13 –– Percentage of suppliers assessed in 2018: 3% Disclosure 308 – 1, 414 – 1
Significant suppliers are assessed for risk, and in 2018 a total of 318 key raw material suppliers were registered with Sedex. These suppliers represent over 65% of our spend. We have also worked to ensure that audited suppliers had closed all open non-conformities. At the end of 2018, our supplier compliance rate was 78%. Disclosure 407 – 1, 408 – 1, 409 – 1, 412 – 1
Givaudan – 2018 Sustainability Progress Review
