Firmenich, the world's largest privately held fragrance and flavor company, today released its annual Environment, Society and Governance (ESG) report, which tracks progress toward the group's groundbreaking sustainability goals. The 2022 financial year was marked by strong sustainability performance in the Group's three key pillars, climate, nature and people, supported by a growing and first-rate independent assessment and strengthened ESG governance.
"I am proud that we have continued to accelerate our leading ESG actions despite the challenging economic climate and have continued to make measurable progress towards our 2025 targets, exceeding them even for renewable ingredients and the living wage," said Gilbert Fantôme, CEO of Firmenich. "Our Firmenich Inclusive Capitalism business model is gaining ground and is becoming increasingly relevant in today's world. Every year, new climate extremes have an increasing impact around the world: Firmenich's bold environmental ambition is a vital business investment today and for the future. "
"Firmenich's ESG strategy continues to advance in our own operations and throughout our supply chain," said Thomas Andro, the company's Senior Director, Sustainability. "In addition, consumer demand for sustainable products is a structural growth trend in our industry and Firmenich's outstanding ESG credentials, combined with our leadership and innovation in natural and renewable ingredients, are becoming even more relevant to our clients as they move forward with their own sustainability roadmaps."
Highlights of the GNE's performance for fiscal 2022
- Acting on climate change: Firmenich was one of only two companies to receive a fourth consecutive CDP Triple A rating for climate, water and forests. Three manufacturing sites, in Norway, Singapore and South Africa, were carbon neutral in FY22, all operating without the use of offsets. Firmenich has maintained the decoupling of manufacturing production growth from itsCO2 emissions: during Ex22, Scope 1 and 2 emissions were reduced by 36.1% compared to 2017, and new ingredient sites reduced Scope 1 and 2 emissions by 12.2% compared to 2020. The Group maintained 100% renewable electricity in its operations, including in the new sites. acquisitions. Firmenich aims to achieve carbon neutrality in its direct operations by 2025, an absolute reduction in carbon emissions by 2030 in line with limiting the temperature increase to 1.5°C, as well as net-zero emissions by 2039 across its direct operations and value chain (Scopes 1, 2 and 3). Its net zero targets were validated by the Science-Based Targets Initiative (SBTi) in August 2022 making Firmenich the first company in its sector to receive SBTi approval.
- Embracing nature: Based on UEBT's validation of the Group's biodiversity strategy, work has begun on the restoration of 15% of Firmenich's sites posing a risk to biodiversity, in accordance with science-based targets for Nature. The implementation of 100% verified access and benefit-sharing (ABS) has been increased. Firmenich continued to increase the proportion of finally or partially biodegradable ingredients in its fragrances to an average of 96.6%, after exceeding its target of 95% a year earlier. Firmenich has strengthened green protein in product development, enabling customers to accelerate the plant-based food revolution and contribute to climate change mitigation.
- Caring about people: Building on gender pay equity and its work to strengthen inclusion, Firmenich achieved Living Wage certification by Fairwage Network in 2022 ahead of the Group's 2025 target, a key step in ensuring a decent standard of living for all employees and their families. The Group has advanced its high global health and safety standards with an improved Total Recordable Case (CRT) rate of 0.26 and a third consecutive Gold Award from the Royal Society for the Prevention of Accidents (RoSPA). Firmenich continued to maintain zero human rights violations and intensified its efforts to drive concerted trade action by becoming the impact sponsor of the United Nations Global Compact for Decent Work and Work (UNGC).
Overall, Firmenich achieved an improved score from Sustainalytics with a score of 7.5, in the global top 50 of around 15,000 companies, highlighting the Group's low ESG risk profile. A second consecutive Platinum rating by Ecovadis with an industry-leading score of 88% placed Firmenich in the top 1% of all companies evaluated worldwide. The Group was also ranked for the first time as one of the "2022 World's Most Ethical Companies" by Ethisphere, a global leader in defining and promoting ethical business practice standards.
Firmenich continued to work actively through alliances and partnerships, including the United Nations Global Compact, the Union for Ethical Biotrade (UEBT), One Planet Business for Biodiversity (OP2B) and the Science-Based Targets (SBTi) initiative, to drive positive change at scale and foster effective action on climate, nature and people in the business world.