Business model

Givaudan
  • Value creation
  • The capital inputs
  • Our value creation
  • The capital outputs
  • Impacts
  • Outcomes
Component content

Through our value chain we draw on various resources (inputs) to create innovative products and solutions. The corresponding outputs and outcomes deliver growth that have a positive impact on nature, people and communities.

Our value creation process begins with resources called capital inputs.

The capital inputs
Component content

2022 capital inputs

Financial capital

Financial capital

  • A– S&P, Baa1 Moody's Investment Grade Credit Rating
  • CHF million 4,237 of equity
Intellectual capital

Intellectual capital

  • >65 creation and research centres
  • CHF million 522 R&D spend
Human capital

Human capital

  • > 16,670 employees
  • 1,806 managers took part in the leadership programmes since 2015
Natural capital

Natural capital

  • > 12,400 different raw materials sourced
  • 26% of raw materials sourced locally
Manufactured capital

Operations capital

  • 78 production sites supporting our customers' growth globally
  • 3-4% of sales invested annually in Capex
Social and relationship capital

Social and relationship capital

  • 17,300 suppliers
  • 68 community projects in 28 countries 
Our value creation
Component content

 Our value creation

How we operate
  

Our customers are at the heart of our strategy

Innovation and sustainability drive growth and value

Upcycling and recycling opportunities throughout the value change

Strongly focused on protecting and supporting our employees

Our two business activities, Taste & Wellbeing and Fragrance & Beauty, are aligned with the value chain and address customer needs with differentiated solutions and business strategies

Our value chain

 

Strategic value

 

Our business model uses these capital inputs for the realisation of our business activities. Taste & Wellbeing, and Fragrance & Beauty, aim to shape the future of food, fragrances and beauty by becoming the innovation and co-creation partner of choice to our customers.

The capital outputs
Component content

2022 capital outputs

Financial capital

Financial capital

  • CHF million 7,117 sales
  • 20.9% comparable EBITDA

 

Intellectual capital

Intellectual capital

  • 4,000 active patents worldwide
  • > 20% of sales resulting from innovations developed over the last five years 
Human capital

Human capital

  • 27% of senior leaders from high growth markets
  • –36% reduction of recordable case rate
Natural capital

Natural capital

  • –35% GHG reduction scope 1+2
  • –13% water withdrawal rate for sites located in areas facing water-stress
Manufactured capital

Operations capital

  • 126,460 products sold
  • Opening of our Consumer & Sensory Insights centre and the integrated fragrance encapsulation centre
Social and relationship capital

Social and relationship capital

  • 100% of our production sites are registered on Sedex
  • 100% of our Taste & Wellbeing production sites are GFSI-certified standards
Impacts
Component content

Impacts

Environmental

+ Impacts

  • Contribute to climate actiona and resilience
  • Restore ecosystems services through regenerative agriculture
  • Conserve resources, avoid unrecycled waste and strengthen circularity
  • Increase access to more sustainable products

 

– Impacts

  • Emission of CO2 and other gases that affect the climate
  • Land-use change
  • Water use in water-stressed areas
  • Waste directed to disposal

 

Mitigation measures

  • Sustainable energy and water management
  • Circularity principles
  • Responsible care management

Social

+ Impacts

  • Create products that make people happier and healthier
  • Provide attractive jobs and promote diversity
  • Pay competitive wages and salaries
  • Drive innovation in health and wellness

 

– Impacts

  • Potential risk of deviation or violation of labour, environmental and social standards
  • Increased turnover
  • Workplace safety and health incidents

 

Mitigation measures

  • Compliance programme and code of conduct
  • Projects to improve sustainability in the supply chains
  • Selection and evaluation of suppliers
  • Inclusive health and safety programmes

Economic

+ Impacts

  • Drive inclusive and economic growth
  • Higher incomes and better standards or living
  • Offer investors an attractive dividend yield
  • Contribute to a fair share of tax contributions where we operate

 

– Potential impacts

  • Slowdown in growth due to the uncertain, macroeconomic and geopolitical environment
  • Slowdown due to supply chain disruption impacting operations
  • Weakening of performance from rising interest rates and foreign currency volatility

 

Mitigation measures

  • Naturally hedged business (portfolio, geography, customers)
  • Systematic cost management
  • Programme of continuous improvement
  • Automation and leveraging technology
  • Strong governance and risk management

Outcomes
Component content

Outcomes

Long-term growth for our stakeholders, our business, for society and the planet

Effective and transparent governance

Our contributions to the
United Nations Sustainable Development Goals