The business activities of Symrise will contribute to preventing or sequestering more greenhouse gas emissions from the atmosphere than we produce through our operating activities.
Our basic principles
Symrise has been committed to climate protection for many years. Because the threats of climate change are becoming ever more obvious. And because we take responsibility for future generations. We have set ourselves the ambitious goal of being climate-positive by 2030. This means that the business activities of Symrise will contribute to preventing or sequestering more greenhouse gas emissions from the atmosphere than we produce through our operating activities. We have been sourcing all of our external electricity from renewable sources in Germany since 2018 – our goal has been to expand this measure to our sites worldwide by 2025. In view of the aggravating situation concerning climate change, we again intensified our efforts in 2020 and thus were able to reach our ambitious goal ahead of schedule. Because of this, we were able to demonstrably cover our external electricity needs worldwide using renewable sources in 2020. As an interim goal, we also want to increase the eco-efficiency of greenhouse gas emissions by 63 % compared to 2016 by 2025.
Symrise has a clear plan of action for climate protection. First and foremost, we concentrate on limiting our own emissions by constantly improving energy efficiency at our production sites. That’s how we saved more than 68,000 tons of CO2 in 2020. Even in the planning phases of new projects, sustainability and climate protection play a huge role. Symrise developed an “instrument case for a green factory”, which is now being used for the first time in the construction of a new factory in Tocancipá, Colombia. It includes the installation of solar collectors for electricity production, water and wastewater management systems and environmentally friendly recycling of waste. A second level of our action plan concerns using energy from renewable sources. We redoubled our efforts in this area in 2020; for example, we have already succeeded in verifiably sourcing our global external electricity from renewable sources this year. This means that we have also met the objective of the global initiative RE100 ahead of schedule. The third objective of our action plan for climate protection integrates our most important suppliers into the Symrise climate strategy via the CDP Supply Chain Program. By now, 87 % of our main suppliers have committed to their own climate targets and reduction measures on our initiative, meaning Symrise has far exceeded its Science Based Target (SBT) of 80 %.
Symrise is a company of dynamic growth. We want to increase sales to € 5.5 to 6 billion by 2025. If we didn’t take countermeasures, this would create more greenhouse gas emissions. If the climate protection measures that we implement in our own sphere of activity prove insufficient in making a positive impact on our carbon footprint, Symrise will also further reduce its Scope 1 emissions by supporting high-quality, certified climate protection projects all over the world. In 2019, Symrise sponsored a hydroelectric power generation project in Madagascar, through which 5,711 tons of CO2 were avoided. Symrise also has a project in Brazil that has saved 5,300 tons of CO2. In 2020, we supported two projects with “Verified Carbon Standard” status to fight poverty and conserve forests in Madagascar and Brazil. A total of 12,046 tons of CO2 were saved in this way. To ensure that climate protection has the highest priority apart from the business goals, the climate-protection targets are integrated into the remuneration system for Symrise upper management.
Symrise reports transparently about its climate protection measures and the preliminary results of those measures. At the same time, we do not lose sight of the risks and opportunities that can arise for Symrise as a result of climate change. We follow the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), systematically identify the possible effects in our risk management and include them in our strategic considerations and in the company’s financial planning. Our scenario analyses in the areas of climate change, water and forests for the CDP reporting are consistent with the recommendations of the TCFD. In our Sustainability Record 2020, we also refer to the covered reporting requirements of the Sustainability Accounting Standards Board (SASB). We regularly inform our shareholders, investors, creditors and the financial markets about the financial impact of climate change on the company. The following table lays out the identifiable risks and opportunities of climate change for Symrise. For 2020, they are reported on a gross risk basis (before countermeasures) and are stated as the estimated effect on earnings before interest and taxes (EBIT), not weighted according to probability:
For example, increasing prices of CO2 certificates for own facilities as well as indirect effects on generally increasing energy costs
|approx. € 0.1 million|
For example, the abolition of the EEG reallocation charge for own facilities
|approx. € 0.2 million|
For example, increased prices for agricultural raw materials through bad harvests due to water scarcity
|approx. € 8.5 million|
For example, sales losses through breach of sustainability requirements placed on Symrise by its customers
|approx. € 35.3 million|
|Acute physical risks
For example, disruptions to production through individual phenomena such as storms, flooding or earthquakes
|approx. € 2.8 million|
|Chronic physical risks
For example, through rising sea levels or enduring heat waves and droughts/water shortages
|approx. € 6.4 million|
For example, increasing our own efficient and low-CO2 energy generation
|approx. € 0.7 million|
For example, through an increased demand for Symrise products such as sunscreen due to rising temperatures
|approx. € 2.1 million|
For example, through an increased demand for sustainably manufactured products that Symrise can cover better than its competitors
|approx. € 2.9 million|
For example, improved access to investors that place value on sustainability
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