Scope 1 Emissions
2022 Communication on Progress
DSM-Firmenich
Published date
October 6, 2022
No. of questions
63
Supplemental files
CEO Statement
Signed
Governance
Policies and Responsibilities
1. Does the Board / highest governance body or most senior executive of the company:
Optional commentAs a cornerstone of the Group’s approach to business, our ESG strategy is managed at the highest level. In 2022, to support the Group in achieving its ambitions, Firmenich set up two additional new Board level committees, the Governance and Sustainability Committee and the Human Capital Committee. • The Governance and Sustainability Committee oversees Firmenich’s ESG strategy. It defines metrics and reporting standards and monitors the company’s ESG performance against its 2025 targets, 2030 ambitions. • The Human Capital Committee is responsible for compensation and nominations. It also regularly reviews the Group’s human capital, diversity and inclusion performance, and ensures that Firmenich meets its 2030 ambitions in this domain. • In addition, the existing Finance, Audit and Risk Committee will be responsible for reviewing the ESG reporting transparency and credibility. Firmenich published in 2021 its 16th ESG report. This report is intended for all stakeholders while meeting the needs of a specialist audience and is used for the continuous improvement of our reporting processes and disclosures. This report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards (Core options). Since 2006, we have reported annually on our sustainability performance and activities. Our most recent report was published in 2020. This report and our previous reports have been fully verified by a third party to ensure that information, data and examples are accurate. This level of verification helps us make sure that we report only the facts and that we are protected from falsehoods and misinformation, whether intentional or unintentional. Our GRI Index, also verified by Société Générale de Surveillance (SGS), can be found at the end of the report. Our report is aligned with the objectives of the OECD Guidelines for Multinational Enterprises, which encourage companies to contribute to economic, environmental and social progress worldwide. We based our materiality analysis on the SASB Materiality Map® list of material aspects and prioritization criteria, version of October 2018. We are at the beginning of a new chapter in our Pathways to a positive journey. The report focuses on our 2025 goals with our 2030 ambitions as a lighthouse guiding us forward to a new horizon. The details of our 2030 ambitions can be found at the end of this document in the chapter “About the Report”. The report’s contents also provide an update on our progress with the implementation of the ten principles of the UN Global Compact and the Sustainable Development Goals (SDGs). https://www.firmenich.com/sites/default/files/ESG_Report_FY21.pdf2. Does the company have a publicly stated commitment regarding the following sustainability topics?
Optional commentAs a leading responsible family company, driving an inclusive business model has always been our priority. We set ourselves pioneering 2025 and 2030 ambitions to create value for our stakeholders today and for the generations to come. https://www.firmenich.com/sustainability/strategy/esg_ambitions_2030#:~:text=Firmenich%20ESG%20Ambitions&text=As%20a%20leading%20responsible%20family,for%20the%20generations%20to%20come.3. Does the company have in place a code of conduct regarding each of the following sustainability topics?
Optional commentWe operate globally with the highest standards of governance, ethics and transparency. A private company with a public governance, Firmenich values its independence and long-term view of the industry4. Has the company appointed an individual or group responsible for each of the following sustainability topics?
5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?
Prevention
6. Does the company have a process or processes to assess risk?
6.1. During the assessment of risk, which business relationships are reviewed?
7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?
7.1. During the due diligence process, which business relationships are reviewed?
Concerns and grievance mechanisms
8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?
Optional commentPromoting a culture of ethics and business integrity is essential to Firmenich’s way of doing business. We design our processes to communicate our values, counter corruption and ultimately promote peaceful and inclusive societies. We hold ourselves accountable to the highest ethical standards and operate every day with honesty, fairness and integrity. We also engage all our colleagues and suppliers on our Code of Ethics and related policies. Our objective is to provide our colleagues with all the information necessary to allow them to take the right decisions and further advance the highest standards of ethical behavior in our day-to-day activities. Our policies and procedures present clear expectations for our employees and our business partners. As part of this goal, we raised the bar on our business integrity and ethics approach in 2021 through the following efforts. This handy and practical guide is targeted at all managers and includes tools and suggestions to help managers demonstrate ethical leadership and inspire others to follow their example. Following our FY21 Sustainalytics assessment, we enhanced our business integrity and ethics management by disclosing more details in the operation of our hotline. In FY21 we received 39 cases through the hotline. They have all been reviewed, followed-up and investigated as needed. Of these, 32 cases have been closed and five were substantiated. Actions taken include training improvements and coaching. To raise awareness with regards to our speak up channels, we prepared a new global hotline training (covering GRI 205-03 regarding communication and training on anti-corruption policies and procedures). Since June 2021, our hotline is accessible through our website. Fighting corruption is one of our key priorities, in line with principle 10 of the United Nations Global Compact to proactively combat all forms of corruption.8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.
Optional commentPromoting a culture of ethics and business integrity is essential to Firmenich’s way of doing business. We design our processes to communicate our values, counter corruption and ultimately promote peaceful and inclusive societies. We hold ourselves accountable to the highest ethical standards and operate every day with honesty, fairness and integrity. We also engage all our colleagues and suppliers on our Code of Ethics and related policies. Our objective is to provide our colleagues with all the information necessary to allow them to take the right decisions and further advance the highest standards of ethical behavior in our day-to-day activities. Our policies and procedures present clear expectations for our employees and our business partners. As part of this goal, we raised the bar on our business integrity and ethics approach in 2021 through the following efforts. THE CREATION OF A CODE OF ETHICS GUIDE FOR MANAGERS This handy and practical guide is targeted at all managers and includes tools and suggestions to help managers demonstrate ethical leadership and inspire others to follow their example. Following our FY21 Sustainalytics assessment, we enhanced our business integrity and ethics management by disclosing more details in the operation of our hotline. In FY21 we received 39 cases through the hotline. They have all been reviewed, followed-up and investigated as needed. Of these, 32 cases have been closed and five were substantiated. Actions taken include training improvements and coaching. To raise awareness with regards to our speak up channels, we prepared a new global hotline training (covering GRI 205-03 regarding communication and training on anti-corruption policies and procedures). Since June 2021, our hotline is accessible through our website. Fighting corruption is one of our key priorities, in line with principle 10 of the United Nations Global Compact to proactively combat all forms of corruption.9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?
Lessons
10. How does the company capture lessons regarding each of the following sustainability topics?
Executive Pay
11. Is executive pay linked to performance on one or more of the following sustainability topics?
Optional commentTo secure our industry leadership in ESG performance, we have decided to add two critical ESG criteria to the Long Term Incentive plan for Senior Leaders, based on CO2 reduction and gender & ethnic diversity of Senior Leaders.Board Composition
12. Percentage of individuals within the company’s Board / highest governance body by:
Optional commentFirmenich Board members: 30% are female and 70% male. 55% are above the age of 61, and 45% aged between 40 and 60. PRINCIPAL MISSION In accordance with Swiss law, the Articles of Association and the Board Regulations, the duties of the Board of Directors include the overall management of the Company, defining the organization, overseeing risk control, the ultimate supervision of the persons entrusted with managing the company, in particular with regard to compliance with the law, organizing the accounting, financial control and financial planning systems, notification of the court in case of insolvency, verification of the qualifications of the auditors and overseeing the management and maintenance of the Fundamentals. The Board sets the strategic direction for Firmenich, appoints and oversees the CEO and Executive Committee (“DG”), convenes the AGM, approves the Company’s ESG strategy and ESG report, as well as the Company’s compensation policies and major transactions and investments. COMPOSITION Save for extraordinary circumstances, the Board is composed of seven to nine members in accordance with Article 21 of the Articles of Association. A majority of the members must be directors independent from the shareholders (“Non-Family Board Members”). The Board is currently composed of nine members, of which five are Non-Family Board Members, and four are members of the Firmenich family. ELECTION AND TERM OF OFFICE Board members, including the Chairman, are elected individually by the shareholders at the General Meeting, for a three-year term of office. The members of the Human Capital Committee, which is the Committee responsible for Compensation, are elected individually by the shareholders at the General Meeting for a one-year term of office, which expires at the next AGM. The Board must ensure that the mandates of at least two board members expire at each AGM. According to our Articles of Association, the mandate of any Board member automatically terminates on the date of the AGM called to approve the accounts for the financial year in which any such Board member has attained the age of 70. In addition to the age limit, the Articles of Association foresee that Non-Family Board Members shall not serve the Board for more than five consecutive mandates. SUCCESSION PLANNING The Human Capital Committee ensures effective succession plans for the Board, the CEO, and the DG. Candidates are interviewed by the Board, and the Human Capital Committee makes a recommendation to the full Board, which ultimately decides on the appointments, subject to the powers of the AGM to elect Board members. INDEPENDENCE We assess the independence of the Non-Family Board Members coming up for election/ re-election. The Firmenich independence criteria provide, in particular, that no Board member may have a contractual relationship with Firmenich, have been an employee or DG member of Firmenich in the last 3 years, nor hold shares in Firmenich (whether directly or indirectly). DIVERSITY Firmenich has long been convinced by the benefits of Board diversity, fostering a greater variety of problem-solving approaches, perspectives, and ideas. Firmenich's five independent Board members represent five nationalities. Of the Firmenich Board members, 30% are female and 70% male. 55% are above the age of 61, and 45% aged between 40 and 60. SELF-ASSESSMENT The Board performs a complete review of its performance every 3 years, covering topics including roles & responsibilities, Board governance, impact, composition, and skills. The process is supported by an external consultancy firm. The last assessment was done in 2021. BOARD SKILLS The Human Capital Committee periodically reviews the composition and size of the Board to ensure that the Board has the proper expertise, and consists of sufficient diversity including diversity of gender, backgrounds, knowledge, and experience to meet the needs of the Company.13. Do you produce sustainability reporting according to:
Data Assurance
14. Is the information disclosed in this questionnaire assured by a third-party?
Human Rights
Materiality / Saliency
1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?
Response
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
Conducting regular human rights due diligence is central to our approach. Our human rights impacts are independently assessed through SMETA audits by Sedex, EcoVadis questionnaires, and the Union for Ethical BioTrade field audits. We were the first company in our industry to sign the UN Global Compact Action Platform for Decent Work in Global Supply Chains in 2019. In 2020, we remained an active participant on the platform. Human rights are one of our key concerns, from ensuring health and safety during a pandemic to standing up for social justice. Firmenich strives to protect individuals and reduce inequalities. We demand the highest human rights standards in our business and our supply chain. Our Human Rights Policy outlines our commitments and expectations from colleagues and suppliers while encouraging our business partners to follow similar principles. It complements our Code of Ethics and our Responsible Sourcing Policy, which states what we expect from all business partners. Human Rights in our operations. Since 2009, Firmenich has worked with Sedex (Supplier Ethical Data Exchange–N°ZC1084366), both as a buyer, requiring our suppliers to conduct audits; and as a supplier, meeting our customers’ Sedex requirements. Sedex is one of the world’s leading ethical trade service providers, acting to improve working conditions in global supply chains, which positions it as a strategic third party for the verification of our human rights impacts. The Sedex platform makes Firmenich production site audits visible and accessible for all our customers requiring such information. Site level documentation accessible on the Sedex platform is based on the Sedex Members Ethical Trade Audit (SMETA) 6.1 methodology and standard. SMETA, the world leading social audit, is based on four pillars: labor standards, health & safety, business ethic and environment. 100% of our production sites are regularly SMETA audited, and their reports are shared on the platform with over 100 customers. [10:32] Mathilde KULA Human Rights in our Value Chain. We aim to leverage our purchasing power to have a positive impact on people and nature and strengthen our resilience in combatting climate change. Our suppliers are now required to monitor their social and environmental impacts through independent third parties such as EcoVadis and Sedex. We believe it is critical to stimulate transformation and positive change through field-based collaborations at source. We are building on our initial digital traceability experiences and have begun the design and deployment of a full traceability strategy. SUPPLIERS ENGAGEMENTS. We request that our suppliers align with our Responsible Sourcing Policy as part of their commitment to operating in the most ethical, traceable and sustainable value chain. We believe that by working hand in hand with our suppliers, we can make an even bigger impact on society and the planet. Our strategy to more fully involve our suppliers includes strengthening our existing Supplier Management and Collaboration program, as part of our supplier lifecycle management. Since March 2020, we have been asking our suppliers to adopt the EcoVadis platform and answer the EcoVadis assessment, which covers the environment, people, ethics and responsible sourcing practices. We are using EcoVadis assessments and score cards for supplier qualification and monitoring as part of supplier lifecycle management. We have been conducting our own assessments through EcoVadis assessment for many years. Based on our detailed knowledge of the platform, we knew how it would benefit our suppliers: > Simplification: answering one questionnaire for all their customers > Transformation: benefiting from online real-time performance dashboards and online training and coaching in many languages > Credibility: the EcoVadis medals are recognized by all their customers and beyond Our vision is to drive improvements at scale based on the sharing of data and globally accepted standards, which will accelerate global traceability from our suppliers to our customers. We gave feedback to EcoVadis on our suppliers’ experience to keep improving our outreach. For instance, the tool can sometimes be quite challenging for our small suppliers of naturals raw materials, who might have a less documented and formalized approach. We hold ongoing discussions with EcoVadis at the highest level to consider the needs of small companies operating at source. Our CPO Gianluca Colombo, who is now on the EcoVadis CPO advisory board, is championing this approach. We are also looking at connecting EcoVadis with our biodiversity partner UEBT to harmonize questionnaires. At Firmenich we encourage our suppliers to always be in a continuous improvement mindset and to progressively implement advanced or best practices so that by 2030, we can attain our goal of 90% of our suppliers’ spend qualifying for an EcoVadis Silver rating.Labour
Commitment
1. Does the company have a policy commitment in relation to the following labour rights principles?
Optional commenthttps://www.firmenich.com/company/about-us/policies-position-statements1.1. For each labour rights policy, is it:
Optional commentWe operate an “Inclusive Capitalism” business model, with a clear objective to make a real difference to people, planet and society and strive to operate the most traceable, sustainable and ethical value chain. Our Firmenich Responsible Sourcing Policy is designed to engage our suppliers and partners on our exciting sustainability journey. It extends our Code of Ethics and Business Conduct across our entire supply chain to support compliance and business ethics, human rights, health and safety, environment and biodiversity, quality, business continuity and confidentiality. Working hand in hand with our suppliers, we look forward to making an even bigger impact on society and the planet. We count on all our partners to fully engage with us to achieve the commitments outlined in this policy. Together, let’s build sustainable supply chains for a sustainable future and the benefit of alLPrevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?
Optional commentFirmenich is part of the Human Rights and Decent Work Platform as Sponsor3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?
Optional commentOur Supplier Management and Collaboration program offers an overview of a supplier’s level of commitment to responsible business practices, including: › Acceptance of our Code of Ethics › Acknowledgement of the Firmenich Responsible Sourcing Policy › and Supplier Expectations Manual › Compliance self-assessment questionnaires › Risk-based supplier audits, including gap analysis and action plan › Supplier non-conformances › EcoVadis, Sedex and CDP performance data Responsible Sourcing dashboards were set up at the manufacturer and raw materials levels, merging all available sources of information into one overview, including, but not limited to Ecovadis and Sedex supplier scores. These activities enable us to minimize or mitigate risks and ensure continuous improvement guidance. In addition, every fiscal year, the Supplier Audit Plan is defined using a risk-based approach that relies on geographical information to map out where and how to conduct supplier audits. PERFORMANCE The FY21 Supplier Audit Plan was launched in July 2020, providing for audit activities throughout the fiscal year at various locations and increasing the ability to react to exceptional adverse conditions, such as the ongoing COVID-19 pandemic. During FY21, the scope of the Supplier Audit Plan was broadened to include audits in external warehouses, distribution centers and packaging manufacturers. In spite of COVID-19, Firmenich performed 154 suppliers audits. We have outperformed our annual target by 48%. SUPPLIER HEALTH AND SAFETY Firmenich recognizes the ongoing health and safety risks of its suppliers. These are addressed in the Supplier Management and Collaboration program and the Responsible Sourcing Policy. We have called upon our suppliers to join us on this journey. The supplier self-assessment, the Supplier Expectations Manual, supplier audits and the EcoVadis/Sedex assessments all contain strong tenets on health and safety, encouraging our partners to raise the bar to protect the wellbeing of their collaborators so that they can manage human rights risks to people. All these sources of information are collected and consolidated in the Risk Assessment tool and the Responsible Sourcing Policy dashboard. We then conduct a detailed analysis to identify supplier health and safety best practices or improvement opportunities. The Procurement team strives to continuously challenge suppliers to move the needle and go beyond the minimum requirements so that they can better ensure the health and safety of anyone involved in their operations. SUPPLIER EXPECTATION Firmenich is adamant that materials and services be procured from reputable suppliers who are aligned with the Firmenich Code of Ethics (CoE) and Responsible Sourcing Policy (RSP), stemming from our commitment to operate in the most ethical, traceable and responsible supply chain. This year we launched our Supplier Expectations Manual, a joint effort by our Suppliers Excellence team and internal experts from business ethics, human rights, health and safety, quality management, product protection and environment management. The manual is aligned with our procurement strategy and increases transparency within the Firmenich supply chain by supporting the current supplier life cycle management process. It has been designed to help clarify Firmenich expectations and engage our suppliers in a continuous improvement journey. The Supplier Expectation Manual applies to direct suppliers and sub-contractors, raw and packaging material co-manufacturers, co-manufacturing partners, third-party manufacturers, and external warehouses and distribution centers (finished goods, ingredients, processing aids and/or packaging storage4. Who receives training for the following labour rights issues?
Optional commentFIRMENICH HUMAN CAPITAL We are committed to our employees around the world every day, making sure they work in an environment in which we capture their minds and hearts, nurture their learning, and motivate them as employees and active members of society. We believe in being creators of talent for today and for the future, to ensure our Company’s heritage and our responsibility to our employees and society. We take pride in investing in our human capital to enable learning, employability and adaptability in our ever-changing world.How do we do this? By equipping our colleagues with the skills they need to thrive, today and tomorrow. By being curious about new ways of working, identifying skills required for the future workforce, and being flexible and agile to adjust to change. And most importantly, by ensuring each employee and their role contributes to the success of the team and the broader organization and that they feel recognized, valued and rewarded for their contributions.We are a learning organization, and we believe in providing opportunities for our people to learn every day – through feedback, training, challenging work assignments and career opportunities. By promoting and measuring the movement of talent across roles, teams and the globe, we are building capabilities for the future and motivating the talents we need to develop and retain to get there. We also strive to ensure our legacy by training young workers of the future and are proud to commit to the development and education of youth through our youth employment programs. The past year has shown us that it has never been more important to support employees and young people around the globe to thrive. We are focused on our responsibility and commitment to achieve our 2030 ambitions to invest in 500,000 hours of training globally and to create 5,000 job opportunities for youth. In the past year, our employees worldwide have participated in over 89,000 hours of training including on Code of Ethics. In FY21, 11.000 hours have been given to Firmenich colleagues on Human Rights.5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?
Optional commentThrough the ESG Strategy and Performance report (49 KPIs)Performance
6. What is the percentage of employees covered under collective bargaining agreements?
7. What is the percentage of employees in a trade union or other workers' organization?
8. In the course of the reporting period, what was the percentage of women in:
Optional comment50% is for Executive Committee.9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?
Optional commentFirmenich has been certified NO GENDER PAY GAP company10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?
Optional commentLTIR: 0.24 LTIs: 10 People are our most precious asset. Safety and the care of our people are essential to our Firmenich Fundamentals and corporate values. During this unprecedented global crisis, our colleagues across the Group have shown an incredible commitment and a resilient mindset so that together we were able to maintain an excellent safety record. We will continue to make safety our top priority to keep everyone safe. PERFORMANCE SUMMARY Our efforts to uphold the highest standards of health and safety match our family culture and focus on protecting the health and safety of our people and the communities in our value chain. Some of our FY21 achievements, in alignment with GRI 403-9, include: OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM Following GRI 403-1, 100% of our manufacturing sites (not including recent mergers and acquisitions) have upgraded their certification from OHSAS 18001 to the new ISO 45001 standard. We aim to have all acquired manufacturing sites certified by the end of 2025. The standard recommends a risk-based approach that ensures an organization is effective and undergoes continual improvement to meet its ever-changing context. Firmenich’s ISO 45001 certification confirms that we are using comprehensive management systems to comply with all health and safety legal requirements and with our corporate management principles and operational codes. Following GRI 403-8, our management system applies to all employees, contractors and partners, regardless of their role or work location. In FY21, due to COVID-19 travel restrictions, we developed a new and very successful remote auditing methodology and conducted remote audits at 9 sites. Despite lockdown measures, we looked for ways to further enhance our robust audit program by conducting quarterly reviews involving our sites and auditors OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT PRACTICES AND PROCESSES Our health and safety (H&S) practices are built on a full integration of H&S performance goals within the Company’s overall long-term business strategy. We follow a bottom-up approach to engage all employees during daily peer-to-peer meetings on behavioral safety and suscribe to a family culture-based system in which upper management is accessible to and supportive of H&S advocates within the Company. Firmenich uses the same incident reporting and investigation system globally with Corporate guidelines and online management system from recording and reporting. The HSE Information Management System (IMS) access is available to everybody in Firmenich, all incident entries generate an email plus web-link to the entry. Initial notification is followed up by an investigation, Root Cause Analysis, action plan and approval process. The HSE IMS is a real driver of continuous improvement as it provides at global level the data, root cause analysis, transparency and it assigns the ownership and accountability for managing identified improvement opportunities. Referring to GRI 403-2 and 7, Firmenich uses a standardized risk assessment methodology at all sites. This risk assessment approach aims to identify, understand, estimate, control and minimize hazards linked to Firmenich’s activities. At Firmenich, the risk assessment process is supported by HSE experts but owned by staff and management. This process is ongoing and continuously supplemented by any lessons learned or conclusions from incident investigations. Since 2014, we have made significant capital investments at our largest factories to upgrade fire and flood protection based on best practices, audit results and incident investigations. In FY21, we invested CHF 4.8 million in our global fire and flood protection capital investment program, continuing our focus on upgrading and expanding key fire and asset protection features. Projects include updating existing equipment, improving firewater retention, and advancing fire detection to the highest standards. We have also begun investing in fire protection at the sites of our recent acquisitions, totaling an additional CHF 0.9 million in FY21. Projects include updating existing equipment and advancing fire detection. As mandated by our HSE Management Principles and Operational Codes, our management and employees diligently report, investigate and address incidents. We have been using safety alerts since 2011 to share lessons learned following significant incident investigations. To track performance and drive continuous improvements, we lead regular quality, health, safety and environment (QHSE) audits at our manufacturing sites. These audits are managed by trained local and international experts who assess QHSE performance against our management systems, our mandatory principles and operational codes, and local and international regulations. Despite lockdown measures, we looked for ways to stay connected in this new normal life and maintain our robust audit program.11. In the course of the reporting period, what was the company’s incident rate?
Optional commentLTIR: 0.23 LTIs: 10 CHF 9 million invested in health and safety projects 0.23 Total Recordable Case (TRC) rate (24% improvement vs. FY16 baseline) 19 manufacturing sites with zero recordable injuries + 10 manufacturing sites achieved greater than one million exposure hours injury-freeResponse and Reporting
12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?
13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
Protecting human Rights in our Supply chain. Conducting regular human rights due diligence is central to our approach. Our human rights impacts are independently assessed through SMETA audits by Sedex, EcoVadis questionnaires, and the Union for Ethical BioTrade field audits. We were the first company in our industry to sign the UN Global Compact Action Platform for Decent Work in Global Supply Chains in 2019. In 2020, we remained an active participant on the platform. Human rights are one of our key concerns, from ensuring health & safety during a pandemic to standing up for social justice. Firmenich strives to protect individuals and reduce inequalities. We demand the highest human rights standards in our business and our supply chain. Our Human Rights Policy outlines our commitments and expectations from colleagues and suppliers while encouraging our business partners to follow similar principles. It complements our Code of Ethics and our Responsible Sourcing Policy, which states what we expect from all business partners.Environment
Commitment
1. Does the company have a formal policy on the following environmental topics?
1.1. For each environmental policy, is it:
Prevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?
Optional commentFirmenich is part of 83 industry association bodies at the global and national level in all the countries where we operate. In addition, we have a range of memberships in organizations supporting the advancement of strategic topics directly related to Climate and Nature.3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?
4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?
4.1. For each environmental topic in which the company sets timebound goals / targets, what kind of targets has the company set?
4.2. For each environmental topic in which the company sets timebound goals / targets, how is progress against target / goal tracked?
Optional commentFirmenich has been awarded a fourth consecutive Triple “A” by CDP for the Group’s leadership in transparency and action on climate change, water security and forestry protection. CDP, which is considered the gold standard of corporate environmental reporting, today places Firmenich among only 14 companies worldwide that achieved a Triple “A” listing in 2021, out of more than 12,000 that were scored based on data they submitted to CDP.5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?
Climate Action
6. What were the company’s gross global greenhouse gas emissions for the reporting period?
Scope 2 Emissions
Scope 3 Emissions
7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?
8. Has the organization acted to support climate change adaptation and resilience?
Optional commentIn FY21, Firmenich was listed among the 300 companies in the first Financial Times Climate Leaders Europe list, ranking #1 in our industry category and one of the top 10 companies in Switzerland. Firmenich not only engages colleagues and suppliers, but also advocates with key stakeholders, NGOs and lawmakers outside our industry. These efforts include: › Firmenich has joined the Assessing Low-Carbon Transition® (ACT), a joint voluntary initiative of the French Agency for Ecological Transition (ADEME), CDP and the UN Framework Convention on Climate Change (UNFCC) › Firmenich was one of 84 companies to discuss climate change with lawmakers in the U.S. in 2021 at the annual LEAD on Climate Virtual Advocacy Day › Firmenich is part of Race to Zero, a UN-backed global campaign to engage businesses, cities, regions and investors worldwide for a healthy, resilient and zero carbon recovery › Firmenich signed the French Business Climate Pledge demonstrating its commitment to low-carbon technologies, products, and services for a green economy › Firmenich’s CEO joined a call to action with the Corporate Leaders Group (CLG) “a coalition of business leaders for a climate neutral economy”, urging the European Union to promote effective policies aiming at reducing its net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levelsEnergy / Resource Use
9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.
Technology
10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?
Sector-specific Questions
11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.
Sector-specific: Water
12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.
Water withdrawal (volume of water in megaliters):
Water consumption (volume of water in megaliters):
Optional commentMunicipal : 183513. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.
Optional commentECOSCENT COMPASS™ We have committed to assessing 100% of our fragrance portfolio to provide fact-based transparency and drive constant improvement in our formulations. These are essential to reach our ambitious targets on renewability, biodegradability and carbon impact. Steps include leveraging digital and artificial intelligence tools to further accelerate our progress. In our Perfumery division, at the end of June 2021, almost 95% of our ingredients (by volume) had been analyzed for environmental impact, and some have been assessed several times to track improvements and obtain even more robust data. EcoScent Compass™, our integrated science-based impact measurement tool, is a key platform for our commitment to transparency. ECOFOOD COMPASS™ Our commitment to assess 100% of our Taste & Beyond palette for environmental impact by 2025 relies on EcoFood Compass™, our integrated, science-based impact measurement tool. This year was dedicated to designing the tool and testing it with customers. We have selected nine Key Performance Indicators (KPIs) to measure the impact of our solutions with the support of our partner, Quantis, to ensure data accuracy. We piloted the EcoFood Compass™ on our SmartProteins® Meat portfolio and 92% of our palette by volume has already been assessed. Our aim for next year is to generate data more quickly, and deploy the solution to our customers to support their transformation towards more sustainable food and beverages.Sector-specific: Air pollution
17. Where applicable, please report the company's emissions of the following pollutants during the reporting period.
Sector-specific: Waste
18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.
19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.
20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.
Overall Environment
21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.
Firmenich’s new ESG ambitions cycle for 2030 proposes concrete actions to respond to the urgent need to address climate change while growing our business. We are firmly committed to achieving our vision of a zero-impact future, leading our industry towards carbon neutrality in our direct operations by 2025 and carbon positivity beyond that date. By 2030, we will have achieved absolute carbon emission reduction in line with the 1.5°C Science-Based Targets. We are an early signatory of Business Ambition for 1.5°C, a coalition of over 600 companies committed to net zero by 2050. We have set emissions reductions to keep warming to below 1.5°C, in line with the Paris Agreement. We also minimize our impact and reach zero waste-to-landfill at all sites. In addition, we will reduce our plastic footprint and implement measures to recycle 100% of our plastic waste. Conducting our business in a way that preserves the environment is paramount for Firmenich. We uphold responsible environmental management practices at our facilities worldwide and strive to reach and maintain the highest standards of care. All Firmenich sites follow a strict internal environmental management system (EMS) supported by our Quality Health Safety and Environment (QHSE) Management Principles and Operational Codes, and by our publicly available Global Environmental Policy. In addition, 85% of our sites are ISO 14001 certified. Our commitment extends beyond our direct operations to our value chain through our Responsible Sourcing Policy and Green Procurement Policy. We strive to minimize the environmental impact of our business throughout the product life cycle.Anti-corruption
Commitment
1. Does the company have an anti-corruption compliance programme?
2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?
Prevention
3. Who receives training on anti-corruption and integrity?
3.1. How often is such training provided?
4. Does the company monitor its anti-corruption compliance programme?
Response and Reporting
5. Please report the company's total number and nature of incidents of corruption during the reporting year.
6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?
7. Does your company engage in Collective Action against corruption?
Optional commentFirmenich, has been recognized as one of the 2022 World’s Most Ethical Companies by Ethisphere®, a global leader in defining and advancing the standards of ethical business practices. Ethisphere honored only 136 companies in the world with this distinction in 2022. These companies stood out for their exceptional leadership and a commitment to business integrity through best-in-class ethics, compliance, and governance practices. In that way, joining Ethisphere and promoting it, we engage in Collective action against corruption and for Ethics.8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.
WE EXTENDED OUR ANTI-CORRUPTION TRAINING TO THE BOARD THIS YEAR. BY THE END OF FY21, 82.3% EMPLOYEES AND ALL BOARD OF DIRECTORS MEMBERS WILL HAVE COMPLETED THE COURSE WE SENT A HOLIDAY SEASON COMMUNICATION ON GIFTS AND ENTERTAINMENT AS A JUST-IN-TIME REMINDER OF OUR POLICIES WE LAUNCHED A NEW DONATION AND SPONSORSHIP PROCEDURE TO TRACK AND BETTER MONITOR THESE ACTIVITIES WE CAN ALSO REPORT THAT NO CONFIRMED INCIDENTS OF CORRUPTION HAVE BEEN IDENTIFIED AT FIRMENICH, IN LINE WITH GRI 205-03 RELATED TO CORRUPTION INCIDENTS