Sustainability and responsibility.
The way in which our company grows and prospers is crucial for us. We are constantly on the lookout for common and sound solutions where everyone – from the supplier of the raw materials to the customer – is able to profit.

In our sustainability reporting, we comply with the guidelines of the Global Reporting Initiative (GRI) from the version GRI Standards (2016), including the most recent updates of selected indicators from 2018. In doing so, we conform to the highest application level “In accordance – Comprehensive”, which means that we fully account for all the material topics. As an active member of the Global Compact, we adhere to its universal principles for responsible corporate management as well as to the sustainable development goals of the United Nations (SDGs). We plan to work hard to achieve them, so in the following chapter we will put a particular focus on SDGs where we can make the greatest possible contribution and where we have a special responsibility through our business activities.

We have integrated all quantitative and qualitative transparency information, our strategic approach and the management concepts of our material topics into our Sustainability Record in accordance with the GRI and thus meet the requirements of the CSR Directive ­Implementation Law (CSR-RUG) pursuant to Section 289b (3) of the German Commercial Code (HGB). All information has been externally audited in accordance with the AA1000 ­Assurance Standard.

Publications on sustainability 2018

Corporate Report

Focus:

  • Integrated corporate strategy
  • Central non-financial management key figures
  • Sustainability management
  • Contribution to the Sustainable Development Goals (SDGs)

 Sustainability-Record

Fokus:

  • Non-financial report pursuant to Section 289b (3)
    of the German Commercial Code (HGB)
  • All key figures and information are in accordance
    with the GRI standards
  • Progress report for the Global Compact

Available at
cr2018.symrise.com/sustainability/sustainability-record

Sustainability at Symrise

Symrise assumes responsibility that goes beyond the company itself. It takes its customers and consumers, its employees, society and the environment into consideration. Therefore, as an international company, Symrise actively supports the United Nations’ Sustainable Development Goals. The 17 global sustainability goals and their 169 subgoals were adopted by all UN member states in 2015 via the “Agenda 2030.” The SDGs show how politics, business and private individuals around the world can tackle the major challenges of our time – from resource consumption to global inequalities and climate change. With these goals, the international community has set a course for a more sustainable world by 2030. Companies can make a major contribution to the implementation of SDGs because they influence the environment and society in many ways – from production to distribution of their products, as employers and in cooperation with partners and suppliers along the supply chain. We are aware of this responsibility at Symrise and want to make an effective contribution to the SDGs.

Corporate growth with responsibility

Our corporate strategy is aimed at sustainable, profitable growth. For us, this includes the permanent and robust expansion of our business that constantly considers ecological and social conditions, works toward an increasingly efficient production and maintains a portfolio that helps meet the basic needs of a growing world population. Keeping our core business in mind, we combine our ambitions in the area of sustainability in the four pillars of our sustainability agenda: footprint, innovation, sourcing and care. With this, we combine commercial success with sustainable corporate management and social acceptance. As with our new financial targets until 2025, we have revised and readjusted our sustainability targets in 2018 (see "Global Sustainability Goals as a Compass").

Organization and implementation

The Symrise Sustainability Board is the global and cross-­business committee that helps consistently align our business model with sustainable management. Under the chairmanship of the Chief Sustainability Officer (CSO), representatives from management come together within this framework multiple times per year to ensure that sustainability-relevant topics and the concerns of our important stakeholder groups are both considered along the entire value chain and anticipated in a way that supports business.
The Sustainability Board sets sustainability objectives, which are then directly implemented in the respective divisions. This is why the Executive Board and the Sustainability Board have appointed sustainability officers for the Flavor, Nutrition and Scent & Care business segments as well one representative each for the staff departments of Human Resources, Finance / Investor Relations and Corporate Communications. The direct responsibility for strategy lies with the Chief Executive Officer of Symrise AG, who receives regular reports on the progress of all sustainability activities.
We manage sustainability in corporate processes using our Integrated Management System. It is based on the international standards on quality (ISO 9001), environmental protection (ISO 14001), work safety (OHSAS 18001), sustainability (ISO 26000), energy (ISO 50001), social responsibility (SA 8000), the generally accepted audit standards of the Global Food Safety Initiative (GFSI) and other recognized local standards.

No matter their division, managers have a particularly important role to play in operationalizing the topic of sustainability in their teams and laying out clear goals. We continuously promote our approach to sustainability through the agreement of specific sustainability objectives for all managers and their integration into individual performance goals. To anchor this topic within the organization and for all employees, we routinely conduct various activities at our sites. For example, during Symrise Sustainability Day, employees present various practical examples of how their respective departments at Symrise initiate and implement sustainable development processes and what role the SDGs play for Symrise.

Global Sustainability Goals as a Compass

The 17 global sustainability goals outline the path that must be taken for sustainable development. At the same time, they provide us with the framework for what we as a company can and must achieve in order to continue to conduct business successfully in the future.
Due to our broad positioning and our multi-layered business model, we ultimately have to keep an eye on all of the goals. However, we are aware that we cannot tackle every goal equally but must focus on those where we can make the most effective contribution.

SDG 1: Symrise is taking a look at its entire supply chain – from local small-scale farmers as raw material suppliers to the end consumer – to find approaches to creating added value that benefit everyone. Together with local partners, sponsoring and support for nonprofit projects, we are making a contribution to poverty reduction worldwide.

SDG 2: For sustainable farming and food security, we are committed to working in partnership with the direct producers of our raw materials. Through our strategy of backward integration, we can exert direct influence on upstream stages of the value chain in line with our sustainability goals and thus effectively promote the implementation of sustainable cultivation methods for biologically based raw materials from agriculture or forestry, for example. We also aim to achieve maximum raw material efficiency and the avoidance of food waste through the complete recycling of raw materials or the use of secondary products (mostly byproducts from the food industry).

SDG 3: The Occupational health and safety of our employees is particularly important in our industry. Our concept of a zero-accident culture, workshops for managers and regular internal and external audits drive the topic within the company. Various preventative health measures demonstrate our comprehensive approach to helping employees lead healthier lifestyles. Prior to hiring new employees, we conduct medical examinations at all our sites worldwide and initiate preventative measures such as vaccinations.

SDG 4: The contribution to high-quality training and lifelong learning begins, of course, with the employees of Symrise. Through gender-inclusive training sessions and opportunities and workshops for our employees as well as (social) education projects on sustainable agriculture, we impart knowledge and promote learning and education in our supply chain.

SDG 5: At Symrise, we see diversity as inherently valuable to our creativity and integrity. The advancement of women in management positions is particularly important to us. Symrise AG aims to achieve a 20 % share of women on the Executive Board in the long term. Measures related to specific persons have been agreed between the Supervisory Board and the Executive Board for this purpose. Nevertheless, we must respect current employment contracts and ensure continuity in the Executive Board. The current members of the Executive Board have contracts that extend into the years 2020 to 2024.

SDG 6: We consider the availability of high-quality fresh water to be essential for our activities, so we are committed to the efficient use of water and the reduction of wastewater volumes and emissions at our sites around the world. We also provide information locally about the significance of sustainable water use. We regularly disclose our commitment and results on the subject of water through the Water Program of the CDP investor initiative.

SDG 7: As a company in a relatively energy-intensive industry, our production is reliant on an affordable, reliable and sustainable energy supply. That’s why we are constantly working on making our processes more and more efficient. At our locations around the world, we focus on a wide variety of energy-­saving measures and promote the use of renewable energies – from solar modules to our own cogeneration plant at our largest company site in Holzminden.

SDG 8: We believe that economic success, sustainability and social acceptance are inextricably linked. The corporate strategy of Symrise therefore incorporates aspects of sustainability at all levels in order to enhance the company’s value over the long term, minimize risks and take advantage of new oppor­tunities. We see sustainability as a competitive advantage. For Symrise, sustainable management goes hand in hand with responsible human resources policy, humane working conditions and a clear commitment to human rights. We also require our suppliers and business partners to comply with these principles.

SDG 9: The long-term operational safety, environmental efficiency and profitability of our production facilities are of great importance to Symrise because of its industry. For this purpose, we have defined safety standards that apply to all our production sites worldwide and are regularly reviewed by internal audits and by our subsidiary TESIUM. We also invest in local infrastructure and health care.

SDG 10: Symrise creates equal value for all stakeholders worldwide by integrating the interests of our stakeholders at all levels of the value chain. Fair remuneration for em­ployees regardless of gender is a matter of course for us. Through collective agreements in many countries and es­tablishing pay categories, we ensure that differences in pay for equal work are impossible.

SDG 11: By promoting economic development in the various communities associated with our production sites in more than 40 countries, Symrise makes an indirect contribution to sustainable and safe urban spaces. In our supply chain, we also engage in local social and environmental initiatives – from sustainable food production to improved urban and rural health care.

SDG 12: The sustainable orientation of our products and processes is a quality standard that we pursue constantly – and as a matter of course. Through our green chemistry approach, we’re constantly further developing existing products and focusing on redesigning and completely overhauling processes using green chemistry and innovative technologies. Our products, which we constantly optimize, are assessed according to their sustainability impact.

SDG 13: As a manufacturing company, Symrise is responsible for minimizing any negative impacts on the climate. At our sites around the world, we rely on certified environmental and energy management systems and our own climate strategy. We demonstrate our progress in resource conservation and emission reduction in a number of ways, one of them being our annual participation in the CDP independent investor initiative.

SDG 14: Since the expansion of our portfolio with the Diana acquisition, sustainable use of marine resources has become all the more important to us. We’ve developed a sustainable approach to feeding fish with more nutritious feed, we do not have to buy additional fish for feed production and we contribute to the conservation of marine resources through various environmental goals and in cooperation with local producers.

SDG 15: Because we are dependent upon nature’s productive energies, the preservation and sustainable use of bio­diversity represent an existential interest to Symrise. For this reason, we are committed to the responsible sourcing of natural raw materials from sustainable cultivation or sustainable wild harvesting in accordance with internationally recognized biodiversity goals and criteria.

SDG 16: It goes without saying that we adhere to the laws of the countries in which we work. Often, our own standards even significantly exceed these laws. The ethical and legal foundations of everyday working life – from humane working conditions and decent employment to the prevention of corruption and bribery – are laid down in our Code of Conduct and in our actions at every site.

SDG 17: We cannot solve the global challenges of our time alone. This is why we increasingly rely on cooperative arrangements within the industry and pre-competitive approaches in which we can work together with our partners from the economy, science and civil society on long-term, viable solutions for sustainable development.

Five SDGs in Focus

For each of the 17 SDGs, there are a number of subgoals that describe the concrete tasks to be tackled. For some issues, political decision-makers are the ones who need to act; for others, companies and civil society in particular are called upon to make a contribution depending on the area where they can make a difference. Based on these, we identified a number of SDGs in the 2018 reporting year for which we at Symrise can achieve a particularly high impact with regard to our business activities and the effects of our actions on the environment and society. Our focus is on cooperation with other partners from business, politics and society to work together to accomplish the tasks ahead.

SDG 8: Decent Work and Economic Growth

SDG 8 aims at sustainable and inclusive economic growth with full employment under humane working conditions. In addition to measures to end forced labor, slavery and human trafficking, equal employment conditions are to be made available to young people, women and people with disabilities in particular, and workers’ rights are to be strengthened worldwide. Economic growth and negative environmental impacts must be uncoupled wherever possible.
As an internationally active company, Symrise has great leverage over the working conditions of its employees, partners and suppliers along the entire value chain in order to make a direct contribution to humane economic growth.

SDG 12: Responsible Consumption and Production

SDG 12 aims at responsible consumption and sustainable production cycles. This includes sustainable management and efficient use of natural resources as well as the reduction of food waste, the environmentally sound use of chemicals and the minimization of their adverse effects on human health and the environment, and the reduction of waste through prevention, reduction, recycling and reuse.
The core business of Symrise – meeting basic human needs for health, nutrition and well-being – is closely linked to these goals. We have direct influence on the sustainable and efficient use of natural resources for our products and processes.

SDG 13: Climate Action

SDG 13 describes measures to combat climate change and its effects. In addition to international political frameworks and target corridors for climate protection, industry is also focusing on the implementation of concrete measures for climate protection in its local corporate strategies and planning.
As a manufacturing company in an energy-intensive industry, Symrise has a special responsibility and leverage beyond its own sites – be it with its commitment to far-sighted climate targets or concrete reductions in CO2.

SDGs 14 and 15: Biodiversity

SDGs 14 and 15 aim to protect natural habitats on land and under water. This includes the conservation, sustainable use and restoration of the oceans and freshwater ecosystems, of forests, mountains, wetlands and arid regions and their natural resources and ecosystem services that are essential for our raw material supply. In addition to the protection and sustainable use of biodiversity and its components, regulated access to genetic resources and fair distribution of the benefits arising from their use with the countries of origin are equally central to ensuring the preservation of biodiversity and the ecological integrity of global ecosystems.
For this reason, we are constantly identifying all possible ways of influencing our business model in order to align it with the implementation of international biodiversity goals.

SDG 17: Partnerships for the Goals

SDG 17 describes the need for global partnerships, multi-­stakeholder initiatives and collaborations to share knowledge, technology and financial resources to achieve global sustainability goals.
Knowledge transfer and synergies between the company and local NGOs, suppliers, political institutions and partners are the basis of the business activities of Symrise and thus of all the company’s contributions to the SDGs. On the following pages, specific partnerships are indicated with the corresponding SDG.

SDG 8
Decent Work
and Economic Growth

COMMITMENT

Symrise strives for the best possible, equal and safe working conditions for our employees and suppliers along the entire value chain. In doing so, equal pay for both men and women is a matter of course for us. By 2025, we aim to have at least 20 % women at the first global management level directly below the Executive Board, while the second global management level should consist of at least 25 % women. We pay taxes where we create value, thus contributing to enabling state and municipal investments in infrastructure and the common good. By 2025, we are planning for a global tax rate of an above-average 26 – 28 %.

MEASURES

The corporate strategy of Symrise is based on the three pillars of growth, efficiency and portfolio. It incorporates aspects of sustainability at all levels in order to enhance the company’s value over the long term and minimize risks. Having a responsible HR policy is part of our company culture. This also includes providing options for further qualification and training for our employees, promoting diversity among the workforce and enhancing the compatibility of professional and private life (see also “Career paths” ).

In 2018, we carried out a gender-specific analysis of the wages for male and female employees at our major sites. The example of our site in Germany, which has the most employees, shows that the average remuneration of women does not significantly deviate from the average remuneration of men (statistically insignificant differences of < 2 %). As part of this analysis, we adjusted the results to account for the personal decision of each employee working part time. The remaining insignificant differences result from production-­specific components of remuneration such as hardship allowances or activity-related wages such as foremen’s or master craftsmen’s allowances, or are prescribed by the various remuneration levels specified by wage agreements for commercial or technical professions.

Our Integrated Management System is based on the provisions of the SA 8000 social accountability standard, which is binding throughout the company. It is based on the conventions of the International Labor Organization (ILO), the Universal Declaration of Human Rights and the UN Convention on Children’s Rights. Humane working conditions, decent employment and due consideration for the social aspects of employment are the foundation for how we act at every site. We also require our suppliers and business partners to uphold basic human rights. Before a new supplier or business partner is accepted, it must pledge in writing that it will maintain and comply with the provisions of the Symrise Code of Conduct. The international platform of the Supplier Ethical Data Exchange (SEDEX) is a valuable tool with which we can more easily assess suppliers and deliver our own data to customers. Since 2006, we have been publishing information on human rights, working conditions and employee rights, health and safety as well as on environmental and ethical business practices via this platform. Since 2012, we have requested that our most important suppliers register with SEDEX and disclose their data there so that we can conduct an assessment. For suppliers that pose an especially notable risk, that have crucial raw materials or that have had problems flagged in the assessment, we carry out audits ourselves or have audits carried out by independent companies. Furthermore, our approach to backward integration enables us to exert direct influence on adherence to our provisions.

We also focus on building strong local communities to ensure long-term supply chain stability and thus enable safe and strong growth. As part of our growth strategy, we work with communities in emerging markets to promote key developments that benefit all stakeholders.

STATUS QUO

In 2018, our global tax rate was 28.1 %. We are thus well above the average effective tax rate for companies in Germany.

Of the 9,694 employees in 2018 (previous year: 9,387), 3,806 were women. This corresponds to a proportion of 39.3 % (previous year: 38.7 %). With a proportion of women in 2018 of 27 % in the first management level (previous year: 21 %) and 42 % in the second management level in 2018 (previous year: 44 %), Symrise is well on its way to achieving the targets it has set for 2025.

There is currently no evidence of gender-specific unequal treatment of female and male employees at Symrise. However, differences in remuneration may result from the type of activity, such as shift work with corresponding shift remuneration. In our last major employee survey in 2016, around 5,400 of our employees took part (equaling a rate of 80 % in the participating countries). The positive feedback was overwhelming: 90 % were very satisfied or satisfied with their work, with 95 % stating that they would again take their current job without hesitation. This positive image of Symrise as an employer was also confirmed in 2018 by an award as one of Germany’s top employers – the company ranked eighth in the chemical and pharmaceutical industries.

Partnerships

Together with our local partners, we assume long-term responsibility for all employees in our affiliated communities from the Amazon to Madagascar and we participate in social projects. For example, we are promoting the sustainable management of the Amazon region together with the Brazilian cosmetics manufacturer Natura and the German Society for International Cooperation (GIZ) in a multi-year project. The goal of this project, alongside protection of the local rainforest, is to significantly improve value creation for the local farmers and cooperatives.

In Madagascar, we have also worked with international cooperation partners and NGOs – such as UNICEF, GIZ and Save the Children – for years to support local communities, for example, by improving the cultivation methods of local vanilla farmers, access to fair financial services or health programs like free vaccinations and checkups.

ECONOMIC CONTRIBUTION26 – 28 %
GLOBAL
TAX RATE
Goal by 2025
EQUAL REMUNERATION FOR MEN AND WOMENEQUAL PAY
FOR
EQUAL WORK
Confirmed by a statistical analysis at our major sites
Training quality
BEST
INSTRUCTOR 2018
Rating by the magazines “Capital” and “Testbild”

SDG 12
Responsible Consumption
and Production

COMMITMENT

The product range of Symrise comprises around 30,000 products that are used in 160 countries worldwide. The challenge for us is to develop products that meet the various demands and expectations of our customer base and, at the same time, are capable of generating long-lasting added value for our customers and society as a whole. For this reason, we create a customized sustainability concept for each strategic product group, allowing us to continually increase the positive benefits and simultaneously reduce the footprint of our products. By 2025, we aim to generate more than 12 % of our sales with new product developments.

For sustainable production, we have set ourselves corresponding targets in those areas where we have the greatest impact: by 2025, we aim to reduce our specific CO2 emissions by 50 % compared with 2016 and to reduce our chemical oxygen demand in water and our sensitive waste by 60 % each compared with 2010 (see also Track record and goals 2020/2025).

MEASURES

Innovation is a key driver of sustainability at Symrise. Using specific indicators based on the concept of planetary boundaries, we have been assessing how our products and projects contribute to sustainability since 2012. A key component for efficient processes and environmentally friendly products is our systematic application of the green chemistry approach: We are constantly refining our existing products while also concentrating on process redesigns and complete overhauls incorporating green chemistry and innovative technologies. This encompasses, for example, the development of our own technological solutions, such as our patented SymTrap® process. This procedure allows us to fully extract flavor-active components from the byproducts of raw materials processing – thereby achieving a maximum resource yield that simultaneously saves energy.

In addition, we devised an assessment system that enables us to identify each product’s specific impact on sustainability, for example, in terms of energy consumption, CO2 emissions or water usage. This way, we and our customers can steer product development with even greater precision and optimize the end product sustainably (see “Sustainability Scorecard” infographic). Our analysis and measurement methods were validated by an external assurance process.

The efficient use and the saving of natural resources is crucial for all our product innovations – both for the sustainability and profitability of Symrise. For example, we are successfully working on integrating suitable byproducts from agriculture, forestry, or food production, thereby increasing added value. Here, biotechnological approaches and new physical separation technologies are also being tested.

The most important raw materials for the production of fragrances from natural and renewable raw materials include crude sulphate turpentine, a byproduct of the pulp and paper industry, and D-limonene, a byproduct of the citrus industry. With renewable raw materials in mind, the focus is also increasingly on wood as a resource. An innovative product example is the fragrance SymroxaneTM: This novel fragrance produced using chemical reactions from a component of the tree resin of Asian pines has been on the market since June 2018. 91 % of the carbon atoms in a molecule are obtained from renewable resources.

Other examples include already existing products made from onions, for which the entire process chain has been reevaluated – from the choice of onion type to the agricultural cul­tivation to processing and waste reduction. This radical approach brings groundbreaking possibilities: For instance, it eliminates by-products, improves raw material efficiency and significantly reduces the carbon footprint of our products.

STATUS QUO

In 2018, we invested € 200 million (previous year: € 196 million) in research and development. 1,728 employees (previous year: 1,659) worked in this area in the reporting year and filed 60 patents (previous year: 42).
With 17.1 % of sales from new product developments, we have once again exceeded our target value of 12 % for 2025 (previous year: 15.9 %). With an increase in eco-efficiency demonstrated by reductions of 45 % in CO2 emissions, 71 % in chemical oxygen demand and 47 % in sensitive waste compared to 2010, we are well on our way to achieving the targets we set for 2025.

With our product sustainability scorecard, we can capture the impact of each individual ingredient of our products along the value chain. As a result, we enable our customers to select the most environmentally friendly path compared with available alternatives.

Partnerships

Sustainable innovations require close cooperation and a change of perspective from one’s own industry. This is why we are collaborating with public research institutes and highly specialized partner companies in a wide variety of areas. For instance, since 2016, we have cooperated with several univer­sities and research institutes in a project funded by the German Federal Ministry of Education and Research on plant breeding research for the bioeconomy. Among other things, the research project investigates and measures food byproducts of rapeseed processing, which can be used as a substitute for animal protein sources in beverages and food.

Another example is the collaboration with an Italian biotechnology company to develop new active ingredients for the treatment of oily skin from sustainable raw material sources. As the first product from this collaboration, Symrise launched SymControlTM Care – which comes from a marine microalgae – worldwide in 2018. The development of further products from sustainable sources with a complementary efficacy profile is underway.

In the Oral Care business unit, we have been researching the positive effects of probiotics on oral hygiene with several European universities and developing various solutions for oral care applications since 2015. Our probiotics are natural, effective and sustainable ingredients and are renewable raw materials themselves.

Animal Welfare
as a commitment

Animals and raw materials of animal origin serve humans in many ways, especially in food production. Unique taste and nutrition solutions are also part of the product portfolio of Symrise – which is why we see our commitment to improving animal welfare as an important part of our corporate values. Beyond the ethical demands we place on ourselves and our activities, irresponsible treatment of animals could lead to a considerable loss of reputation for Symrise among important stakeholders and thus result in high economic damage. We share the growing concerns of consumers and customers about the circumstances in which animals are kept and treated, and we also clearly see the connection between these factors and food quality. Animal welfare is a natural obligation for Symrise.

The Sustainability Board informs the Executive Board about current developments several times a year. Last year, we developed a policy that regulates the handling of animals and the procurement of animal raw materials. Ingredients and flavors based on chicken raw materials account for the largest share of sales volume of Symrise. We have therefore developed an animal welfare policy for poultry, especially chickens, as the first building block. It lays down clear minimum requirements for housing and rearing, transport and slaughter. The policy also provides for regular inspections of operations, continuous improvement of livestock production and an annual progress report. We intend to procure 100 % of our chicken-­based raw material supplies in the USA by 2023 and in Europe by 2026 from sustainable sources. Since there are no globally aligned standards for animal welfare, Symrise works with the internationally respected animal welfare organization “Compassion in World Farming” (CIWF) to quickly implement its policy in the supply chain.

SDG 13
Climate Action

COMMITMENT

Symrise is committed to minimizing its footprint along the entire value chain. By 2025, we have set ourselves the target of reducing our greenhouse gas emissions by 50 % in terms of value added compared with the base year 2016. We also require our suppliers, who supply raw materials accounting for at least 80 % of our total purchasing volume, to commit to their own climate targets and reduction measures by 2020. We ultimately want to be climate-positive by 2050 – among other things, by purchasing environmentally friendly energy sources and supplying surplus energy to local communities.

MEASURES

Our climate protection goals are based on four key areas: The conservation of valuable resources, the efficient sourcing of raw materials (see also SDG 12), the protection of biodiversity and ecosystems (see also SDGs 14 / 15) and the construction of green production sites. Our production sites with the highest potential environmental impacts are thus either located in countries with strict environmental policies and / or also operate according to an environmental management system that is ISO 14001 certified. Additionally, the SMETA 4-Pillar requirements are used as a minimum standard and regularly verified by external auditors. Furthermore, all German sites have an ISO 50001 certified energy management system.

In 2018, we focused on decoupling our dynamic growth in the various business units from their possible environmental impacts. We further optimized our energy balance in key areas via additional measures and placed a stronger focus on reducing emissions and effluents as part of Total Productive Main­tenance. We document our progress regarding resource conservation and emission reduction in a number of ways, one of them being our participation in the CDP independent investor initiative.

Since 2018, Symrise has also been one of the 513 companies all over the world that supports the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The Task Force has dedicated itself to having companies disclose the financial impact of climate change on their companies in their annual reports. Companies share information about their governance, the effects on business activities and strategy, and opportunity and risk management, and they pursue their goals based on the key figures provided. The recommendations focus on the opportunities and risks resulting from the transition to a low-carbon economy. The TCFD also recommends explaining the potential effects of climate-related risks based on a variety of scenarios, such as global warming of 2°C. Symrise supports the goals of the initiative and already communicates a wealth of climate data in its annual corporate reports and as part of the CDP Climate Change investor initiative.

STATUS QUO

In 2018, Symrise was able to reduce specific CO2 emissions (Scope 1 and 2) by 3.0 % compared with 2017 (2010 – 2017: 42 %). We are thus well on our way to achieving our goal. This is also reflected in external evaluations: In the reporting period, Symrise once again made an impressive showing in the CDP (formerly Carbon Disclosure Project) rating. Despite considerably higher requirements for CDP Rating participants, Symrise ranked once again at the very top in the categories climate and forests with the rating of “A-”. With the very good rating of “B”, we also reached a position ahead of other well-known companies in the category water.

Symrise was the first company in the industry to have its climate strategy approved by the Science Based Target Initiative. This is an association of companies led by the Carbon Disclosure Project, the World Resources Institute, the Worldwide Fund for Nature (WWF) and the United Nations Global Compact. We are actively helping to limit global warming to below 2°C. Symrise is a role model in terms of climate protection in Germany and is acting in accordance with the resolutions of the UN Climate Conferences COP 21 in Paris and COP 22 in Marrakesh.

PARTNERSHIPS

Climate change does not stop at company or national borders. Symrise has recognized the potential of international and cross-­sector ­cooperation for climate protection measures – for example, through support for the TCFD (see infographic) or annual participation in the CDP.

In 2018, we also entered into a partnership with AfB gGmbH to reuse our old IT equipment in Germany. This equipment is cleaned up, processed and marketed again in AfB’s inclusion workshops. In addition to promoting people with disabilities, the focus is on resource and climate protection. In total, 95 % of our equipment was put back into circulation, so that about 8 tons of CO2 were saved compared to the production and use of new equipment.

OUR TCFD COMMITMENT

Governance

The Chief Sustainability Officer, as Head of the Sustainability Board, sets sustainability goals, taking into account Executive Board responsibilities on climate-related issues. Implementation is carried out directly in the respective divisions. The CSO regularly reports to the Chief Executive Officer, who is responsible for the overall strategy of Symrise AG.

Strategy

Potential impacts of climate change are included in our financial planning process as they affect both our operating costs and our sales development. On the one hand, this can lead to rising electricity or raw material prices resulting from shortages of raw materials, regulatory efforts or crop failures. On the other hand, climate-relevant energy-efficient technologies like our combined heat and power plant or our waste incineration plant can reduce costs. Global warming, especially hot summers, may also lead to increasing demand for some of our products, such as in the Cosmetic Ingredients business unit.

Our access to capital is generally positively influenced by our performance on climate change. We were named Climate Leaders by the CDP, and SRI funds with MSCI and ISS oekom ratings also rated Symrise’s climate-related performance very positively. The proportion of sustainable and responsible investors (SRI) rose slightly by 1.3 percentage points in the fourth quarter of 2017. SRI ownership corresponds to 14.1 % of institutional shares.

Symrise has not yet performed a climate-related scenario analysis but plans to do so in the medium term. Existing scenarios, such as the IEA_2DS scenario, are only suitable for us to a limited extent. As a result, a number of climate-relevant and nonclimate-relevant drivers will be considered to develop consistent scenarios.

Risk management

Our Corporate Sustainability department regularly measures climate-related risks throughout the company. Risk management with regard to the risks and opportunities of climate change is reviewed by the Executive Board and the Supervisory Board every six months. Process-related risks are linked to market-related risks. The aim of this process is to identify and measure significant risks to ensure the positive business development of Symrise.

The risks are assessed on a gross risk basis and according to the criteria “EBIT effect” and “probability.” With this process, we determine the relative importance of climate-related risks compared to other risks.

Metrics & targets

As part of our climate target confirmed by the Science Based Target Initiative, we aim to reduce our specific greenhouse gas emissions by 50 % by 2025 compared to 2016. We also require our suppliers, who supply raw materials accounting for at least 80 % of our total purchasing volume, to commit to own climate targets and reduction measures by 2020. We ultimately want to be climate-positive by 2050 – among other things, by purchasing environmentally friendly energy sources and supplying surplus energy to local communities.

We disclose further data and information as part of the CDP Climate Change and in our Sustainability Record.

SDG 14/15
Protection of biodiversity

COMMITMENT

Global diversity of species is an indispensable source of inspiration and natural raw materials for Symrise in order to continue to create new flavors and fragrances. For this reason, maintaining biodiversity is an essential objective for Symrise. We have set ourselves a number of concrete goals to help protect biodiversity, including the development of biodiversity-­based and innovative raw materials in our centers of excellence in Madagascar and Brazil by 2020. At the same time, we aim to fully integrate our research department in compliance with international regulations on biodiversity-based innovations. We intend to increase the share of main suppliers rated according to sustainability criteria to 100 % by 2025. Finally, by 2025, we want to obtain 100 % of our strategic agricultural and aquaculture raw materials from sustainable sources (see also Track record and goals 2020/2025).

MEASURES

Our signature in 2017 on the Business & Biodiversity Pledge from the UN Convention for Biodiversity means that we committed to implementing an operational biodiversity management system that supports the core objectives of the UN Biodiversity Convention. This comes in addition to the biodiversity agenda we published in 2014. This includes the conservation of biological diversity, the sustainable use of its components and the fair division of the benefits resulting from the use of biodiversity with the countries of origin.

In 2016, Symrise joined the Sustainable Agriculture Initiative (SAI) in order to strengthen the preservation and sustainable use of cultivation systems. 90 of the world’s most important food manufacturers and suppliers have joined this platform. Growers and raw materials suppliers we work with should fulfill certain criteria regarding water and land use, fertilization and pest control. The SAI also developed criteria that describe good expert practice, and also developed the Farm Sustainability Assessment – an easy-to-use tool for adopting and evaluating criteria fulfillment.

The benefit for participating companies: the ability to easily and independently compare suppliers all the way down to the individual growers. In Germany, Symrise used the Farm Sustainability Assessment with its onion farmers. Together, we look at farming technologies and production and then collect the data. Companies can use this to find raw materials and qualify them as sustainable, fulfilling customer requirements. The primary focus of our efforts is always a cooperative approach in which we work together with other actors to find suitable solutions, such as the sustainable cultivation of lavender (see “Favorite Fragrance”) or patchouli (see “The Cultivation Specialists”). The topic of sustainable forestry is also relevant to us for various application areas. Many of our suppliers are already certified by the Forest Stewardship Council and / or the Sustainable Forest Initiative. By participating in the CDP Forest Program, we can make our progress and approaches more transparent. Our two North American sites in Jacksonville, Florida, and Colonel’s Island, Georgia, have received Forest Stewardship Council certification. We also contribute to the preservation of oceans and seas and their biodiversity through various environmental goals along the entire value chain. For example, Symrise has developed a sustainable approach to feeding fish with food higher in nutrition that can be better absorbed by the fish, leading to better growth and lower mortality. What’s more, no additional fish need to be purchased to produce food. Thanks to higher tolerability, we were able to improve intake and thus reduce sediment.

In the area of biobased research and development, Symrise has also developed operating policies, governance structures, processes and measures to implement the criteria of the Nagoya Protocol across divisions in all relevant functional areas. In this way, we ensure that the procurement and research of biobased raw materials is carried out in accordance with international provisions and national regulations on access and benefit sharing – the third core objective of the UN Biodiversity Convention. Symrise is making an effective contribution to preserving biodiversity and supporting local communities in the countries where our natural raw materials originate, such as Brazil, Madagascar and beyond, by fairly distributing the benefits from the use of genetic resources.

STATUS QUO

At the end of 2018, 90 % of the main suppliers of Symrise (in terms of purchasing volume) had already been rated according to sustainability criteria. We have also started to increase the proportion of our sustainably-sourced strategic agricultural and aquaculture raw materials to 100 % by 2025. In 2018, we were also able to assess more than 98 % of our production sites according to sustainability criteria. In the reporting year, we were the first manufacturer of fragrances and flavorings to also receive certification from the Forest Stewardship Council® (FSC) for our byproducts originating from forestry production. Despite considerably higher requirements for CDP Rating participants, Symrise ranked once again at the very top in the forests category with the rating of “A-”.


PARTNERSHIPS

Symrise has long collaborated with (non)governmental organizations and public institutions on a wide variety of initiatives, roundtables and collaborations relating to biodiversity and the protection of oceans and seas, drawing on the expertise and knowledge of local communities. This applies to the implementation of the UN Biodiversity Pledge as well as to the SAI or our frequent project partner GIZ in Madagascar or the Amazon region. In 2018, Symrise also joined forces with the research institute CRIEPPAM to promote the sustainable cultivation of lavender in France and with the supplier Van Aroma to promote the eco-friendly cul­tivation of patchouli in Indonesia.

In 2018, Symrise was the first company in its industry to successfully pass the admission process as a full member of the Union for Ethical BioTrade (UEBT). We are thus setting a further milestone in the implemen­tation of international biodiversity goals at the company level while also promoting fair working conditions and the observance of human rights.