Position statement on palm oil. January 2016

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1 Position statement on palm oil January 2016

2 Position statement on palm oil January 2016 Introduction Following our 2020 ambition for responsible growth, Givaudan recognises its responsibility to ensure that the sourcing of palm oil and palm oil derivatives does not contribute to deforestation. This statement reiterates our ambition to source our palm oil derived ingredients from certified sources, but also addresses key issues such as traceability and deforestation free principles. Our ambition Givaudan aims to eliminate deforestation from our supply chain and create positive difference for workers, farmers and local communities. As a result, Givaudan is committed to source our palm oil, palm kernel oil and their derivatives in a way that is traceable to known certified sources. Responsibly sourced palm oil key principles The following principles are critical to help achieve responsible sourcing of palm oil, palm kernel oil and their derivatives. Palm oil, palm kernel oil and derivatives are sourced from plantations and mills that operate in compliance with all laws and regulations. Additionally, the following criteria are met by key actors in our supply chain: Compliance with RSPO Principles & Criteria, or equivalent standards; Plantations development exclude high carbon stock and high conservation value areas; No slashing and burning involved in the preparation of new plantings, re-plantings or any further developments; Plantations development exclude peat areas; Human rights are respected and the Universal Declaration of Human Rights supported; Free and prior informed consent of indigenous and local communities concerning activities on their customary lands where plantations are planned for developments is obtained; Facilitation of the inclusion of smallholders in the supply chain. Givaudan SA, Chemin de la Parfumerie 5, 1214 Vernier, Switzerland Phone: Position +41 statement , on Fax: palm +41 oil, 22 January , 2016 Web: 2/5 2

3 Approach and key milestones Givaudan supports and encourages the production of certified sustainable palm oil (CSPO) by being a member of the RSPO, which we joined in June Givaudan started purchasing palm oil fractions and derivatives within the Green Palm certification supply chain system (also known as Book and Claim), which promotes RSPO and the production of palm oil sustainably. In 2012, we reached the target of 100% certified sustainable palm oil covered by Green Palm certificates. In 2014, Givaudan started sourcing ingredients with RSPO either mass balanced ( MB ) or segregated ( SG ) certification. In 2015, RSPO Supply Chain Certification Systems were met for our European Flavours production sites. In our journey to source our palm oil, palm kernel oil and their derivatives in a way that is traceable to known certified sources, we use the following approach: 1. Identification of where palm oil, palm kernel oil and their derivatives are used in our products; 2. Mapping of our supply chains upstream to the refineries, then to the mills and finally plantations; 3. Engagement with our supply chain, working intensively with the companies from which we buy our palm oil, palm kernel oil and their derivatives to improve sourcing practices and monitor progress in relation to traceability, deforestation free and peatland management; 4. Seeking palm oil certification through the RSPO or equivalent standards. By 2020, Givaudan intends to source all its palm oil in a way that is traceable to known certified sources once they become technically and commercially available. We monitor closely the availability of mass balance and/or segregated RSPO certified derivatives, and the technical and commercial feasibility of including it in our fragrances and flavours in the future. Measurement and reporting Givaudan will be transparent about its progress and challenges. Available and externally assured information will be provided publicly on an annual basis. We would also be happy to discuss specific stakeholders queries in relation to palm oil. Position statement on palm oil, January /5 3

4 Additional information WWF Palm Oil Buyers Scorecard palm_oil_buyers_scorecard_2013/ Memberships and certification Please use the links below to confirm our memberships and purchased certificates. RSPO membership Green Palm, Book and Claim certificates Commit to remove commodity-driven deforestation from all supply chains by WWF recommendation Givaudan 1 Join the RSPO and be an active member; Givaudan is a member 2 Cover all of their palm oil use with CSPO from any of the supply chain options; We reached 100% certified sustainable palm oil covered by Green Palm Certificates at the end of Be transparent about their palm oil use; Annual Communication on Progress (ACOP) on the RSPO website; Redeemed Green Palm certificates; Communication in our Sustainability Report and position statements. 4 Commit to sourcing 100% CSPO from Mass Balance or Segregated supply chains by 2015 at the very latest; Givaudan has been using Green Palm s Book & Claim certificates since November Start investing in traceable supply chains of CSPO; Our purchasing teams are working with our suppliers to go to traceable certified sustainable palm oil 6 For retailers, go beyond own-brand commitments and take responsibility for making sure all palm oil they sell is sustainable; 7 Raise awareness of the RSPO and CSPO globally; Givaudan website working-together/palm-oil-sustainable-solution Givaudan sustainability reports Alliance Française 8 Buy from certified RSPO member growers that are going beyond the basic requirements of the RSPO. n/a Commit to remove commodity-driven deforestation from all supply chains by Position statement on palm oil, January /5 4

5 Givaudan SA Chemin de la Parfumerie Vernier, Switzerland General information T F Givaudan SA, January 2016

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