Sustainability Record 2022

Through its taxonomy regulation, the EU defines which economic activities contribute to the EU’s six overarching environmental objectives and can therefore be considered sustainable investments. These are:

• Climate change mitigation
• Climate change adaptation
• The sustainable use and protection of water and marine resources
• The transition to a circular economy
• Pollution prevention and control
• The protection and restoration of biodiversity and ecosystems

Companies in the real economy covered by the taxonomy regulation must disclose the part of their sales, capital expenditure and operating costs that meets the requirements of the regulation for the respective environmental objectives. The relevant disclosures must be differentiated according to taxonomy eligibility and taxonomy alignment:

• Taxonomy-eligible: An economic activity is considered taxonomy-eligible where it is listed in the EU taxonomy and can potentially contribute to the realization of at least one of the six environmental objectives.
• Taxonomy-aligned: An economic activity is considered taxonomy-aligned (environmentally sustainable) where a) it also delivers a significant contribution to the environmental goal on the basis of predefined technical evaluation criteria, b) at the same time does not impair any other environmental goal (“do no significant harm” criteria) and c) procedures exist to ensure minimum protection as regards human rights, social standards and labor standards (“minimum safeguards”).

In line with the EU taxonomy, Symrise is required to report disclosures on taxonomy eligibility and alignment for the environmental goals of climate change mitigation and adaptation to climate change for the 2022 fiscal year. These disclosures relate to the companies fully consolidated in the Symrise financial statements.

The formulations and terms in the EU taxonomy remain subject to uncertainty as regards interpretation. Our interpretation is given below.

Symrise produces individual solutions for flavor, nutrition, pet food, fragrances and cosmetics for numerous markets around the world. We are continually developing our traditional business in the area of fragrance and flavors. We are also pioneering the development of products with additional benefits in response to current market trends. Innovation, creativity and sustainability are consistently at the heart of the work we do.

A review of economic activities currently listed in the taxonomy regulation in respect of the activities of Symrise produced the following result:

• Appendices I and II of the Delegated Act C (2021) 2800 final dated 4/6/2021 contain technical requirements for the economic activity “Manufacture of organic basic chemicals” (activity 3.14). Symrise has internally reviewed whether such substances are manufactured and sold. Symrise manufactures terpenes and cycloterpenes such as menthol. Within the framework of activity 3.14, however, this manufacturing activity is explicitly excluded in the taxonomy requirements on climate change mitigation and adaptation. The Symrise internal review showed that no other substances are manufactured and sold according to the list in the Delegated Act.
• Agriculture is generally regarded as a taxonomy-eligible economic activity; there is currently no valid delegated act containing the technical requirements The Symrise internal review has shown that although the company works closely with farmers, there are no Group companies engaged in agriculture. Symrise is therefore unlikely to be affected by future taxonomy requirements in relation to agriculture.
• By applying innovative processes, Symrise provides its customers with specific raw materials which ensure the corresponding products contribute to a significant reduction in greenhouse gas emissions over their lifecycle. We therefore take the view that certain parts of our economic activity can be described as enabling activities in the sense of 3.6 “Manufacture of other low carbon technologies.” Despite the limitation that not all taxonomy criteria can be queried automatically in the course of reporting, we report initial results in this regard.

During the reporting year, the DNSH criteria for economic activities 3.6 “Manufacture of other low carbon technologies” and 7.2-7.5 from the chapter "Construction and real estate" were analyzed on the basis of all manufacturing sites worldwide. The outcome of our valuation is that we met the DNSH criteria concerning economic activity 3.6 in full in and largely concerning activities 7.2 – 7.5, and can verify this. The remaining shares of non-taxonomy-aligned investments were conducted for the most part at locations of more recent acquisitions, where we assume that all criteria are met but cannot yet explicitly demonstrate this. The resulting taxonomy-aligned sales, CapEx and OpEx are set out in the table below. We aim to meet all DNSH criteria by the end of 2023.

Climate change adaptation: 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. All risks, including climate-related risks, are identified and evaluated at the regional level with the help of regional experts. They cover the entire range of climate-related issues (transitional and physical issues).

Sustainable use and protection of water and marine resources: Symrise has defined the following procedures as part of its water use strategy:

• Ensuring compliance with water-related legislation and voluntary standards in the countries in which we are active
• Sustainable use of fresh water resources, taking account of the regeneration rates of local water bodies and sources
• Regular analysis, monitoring, control and sustainable management of water quality and the number of outputs and inputs
• Raising awareness among our customers, suppliers and other interest groups about the critical importance of water for sustainable development and company success
• Integration of water-related performance criteria into our supplier screening
• We inform customers about the water output of the compounds and ingredients they buy from Symrise.
• Promoting collaboration between multiple interest groups in the area of water management
• Performing regular water risk assessments of our operations and value chains
• Improving water efficiency at all production locations in areas with high water stress in line with local water availability for human and environmental needs
• Fully functional WASH services for every employee and visitor of our company
• We promote sustainable innovation along our value chains that contribute to the conservation of freshwater resources and the protection of water quality and the aquatic environment

Transition to a circular economy: The corporate guidelines of Symrise provide a fundamental direction for dealing with waste: the company prevents waste and replaces hazardous chemicals where technically and economically feasible. Symrise continuously works on reducing the negative impacts on the environment in product development.

Symrise complies with all statutory provisions for waste disposal worldwide and only hands over waste to certified companies that can verify that waste is disposed of properly with the use of electronic procedures. The contracts Symrise enters into with waste disposal companies are reviewed by authorities and external auditing companies. In this way, Symrise prevents significant negative effects that could potentially arise from the incorrect handling of hazardous and non-hazardous waste. Our handling of hazardous waste is also reviewed by external audits as part of our ISO 14001 certification processes. This involves examining standard documents such as operational instructions, policies, processes and results.

Where technically possible and economically viable, we replace hazardous chemicals with environmentally friendly alternatives. We also mitigate other waste-related impacts through various approaches aimed at reducing waste and promoting the circular economy. These include, for example, our initiative on the use of plastics, the development of innovative production processes and products, and our Total Productive Maintenance program.

Pollution prevention and control: As a producer of foods and preliminary consumer goods products, our activities are not generally associated with significant environmental pollution under the terms of the taxonomy regulation. Our production sites with the highest potential environmental impacts are either located in countries with strict environmental policies and/or operate according to an environmental management system that is ISO 14001 certified or based on this environmental standard. Additionally, the SMETA 4-Pillar requirements are used as a minimum standard and regularly verified by external auditors.

We also measure the chemical oxygen demand in wastewater at all of our sites worldwide. Each site follows the local limits of their respective country around the clock. We are not aware of any significant violations.

Protection and restoration of biodiversity and ecosystems: Six Symrise sites are located in or adjacent to protected areas. Following a detailed analysis of all relevant environmental aspects, there were no indications of any adverse impact on neighboring protected areas as a result of our operating activities at the sites in question.

Via corresponding sustainability verifications, strict use controls, efficient production processes and, not least, the development of suitable raw material alternatives, we concentrate on preventing or minimizing any negative biodiversity impact while ensuring a sustainable use of relevant species. As part of our sustainability management, we continually assess the degree of biodiversity and ecological stress factors in the countries where our raw materials originate. We also assess the degree to which those species that contribute to our strategic raw materials could be endangered to find indications of possible biodiversity risks in our supply chains.

Symrise actively respects and supports the OECD Guidelines for Multinational Enterprises, the United Nations Guiding Principles on Business and Human Rights, the Declaration on Fundamental Principles and Rights at Work of the International Labour Organisation (ILO) and the International Bill of Human Rights.

The Integrated Management System of Symrise is based on the provisions of the SA 8000 social accountability standard, which is binding throughout the company. This standard is based on the conventions of the International Labour Organization (ILO), the Universal Declaration of Human Rights and the UN Convention on the Rights of the Child. Humane working conditions, decent employment and due consideration for the social aspects of employment are the foundation for how we act at every site. Additionally, the SMETA 4-Pillar requirements are used as a minimum standard and regularly verified by external auditors.

To implement its own due diligence as part of the German Supply Chain Due Diligence Act and improve responsible sourcing, Symrise coordinates through the Responsible Sourcing Steering Committee (RSSC). The Committee defines the processes for supplier assessments and implementation of the resulting measures to ensure that assessment criteria are completely embedded in the business processes. Operational implementation takes place in the purchasing areas, as does the monitoring of defined measures with suppliers.

Our principles for combating corruption are laid out in our Code of Conduct, which acts as a binding model for all employees. The Code applies to all countries regardless of possible conflicting cultural customs; it regulates behavior with key Symrise partners and ensures transparent and reliable processes. In the interest of all employees and the company, we react swiftly to violations against the Code and rectify their causes.

Symrise is also committed to efficient tax planning that supports the business and realigns commercial and economic activities. We comply with relevant tax law and seek to minimize the risk of uncertainty or dispute. Transactions within Symrise should be conducted according to market conditions and in accordance with applicable OECD principles.

For reporting year 2022, the shares of taxonomy-eligible and -aligned business activities in total sales and in capital expenditure and operating expenses must be reported for the first two environmental goals. All Symrise activities identified as taxonomy-eligible or -aligned in reporting year 2022 support the environmental goal of climate change mitigation.

Although Symrise is hardly affected by the EU taxonomy given its particular business activity, we aim to model our economic activities in accordance with the possibilities. In this way, we seek to show that our efforts are contributing to a sustainable reduction in greenhouse gas emissions in industry. Our investments aim to promote sustainability in this area. To this end, we develop system solutions with a view to incorporating sustainability into the investment process from the outset. The figures below reflect the relevant information according to the respective economic activity.

Key corporate functions across all parts of the company were included in the analysis. Under the leadership of the sustainability team and in close cooperation with the finance team, results were determined in the course of a sequential approach:

1. Impact analysis: Identification of potential and actual economic activities listed in the taxonomy regulation which correspond to those of Symrise. As a result, the activities 3.6 “Manufacture of other low carbon technologies” (relevant to sales, operating costs and investments), 7.2. “Renovation of existing buildings,” 7.3 “Installation, maintenance and repair of energy efficiency equipment,” 7.4 “Installation, maintenance and repair of charging stations for electric vehicles in buildings” (and parking spaces attached to buildings) and 7.5 “Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings” (relevant to investment) have been identified.
2. Quantification of taxonomy eligibility: Calculation of share in sales, operating expenses (OpEx) and capital expenditure (CapEx)
3. Review of taxonomy alignment: Detailed review of technical assessment criteria for each economic activity as well as DNSH criteria and minimum safeguards
4. Quantification of taxonomy alignment: Calculation of share in sales, operating expenses (OpEx) and capital expenditure (CapEx)

Overview, share of taxonomy-eligible and -aligned activities

Sales – Detailed information

Operating expenses (OpEx) – Detailed information

Capital expenditure (CapEx) – Detailed information

For the GRI Content Index – Essentials service, GRI Services has verified that the GRI Content Index is presented clearly and in accordance with the standards and that the references for statements 2-1 to 2-5, 3-1 and 3-2 are consistent with the corresponding sections in the main body of the report.

The service was provided for the German version of the report.

The purpose of this information is to provide our financial institutions with the data they need to comply with their disclosure obligations regarding the "Statement on principal adverse impacts of investment decisions on sustainability factors" under the Sustainable Financial Disclosure Regulation (SFDR).

^*All information from the CDP questionnaire 2022 is based on the 2021 fiscal year. This is due to the CDP reporting cycle.

^**The references to the Corporate Report 2022 and this Sustainability Record refer to information from the 2022 fiscal year.

The complete CDP questionnaire 2022 from Symrise is available on our website. All Symrise policies can also be downloaded there.

Symrise AG is a stock corporation under German law with a dual management structure consisting of an Executive Board and a Supervisory Board. The Company is headquartered in Holzminden, Germany. The Company has sites in 42 countries, giving it a local presence in its key markets. Symrise's products are sold in approximately 160 countries.

In addition to Symrise AG as parent, the scope of consolidation includes all domestic and foreign companies in which Symrise AG exerts either direct or indirect control or significant influence over their activities. An overview of all consolidated companies is provided in the Financial Report on pages 139-141.

This Sustainability Report covers the period from January 1, 2022 to December 31, 2022. We have been reporting on our sustainability activities annually since 2006. This GRI report was published on March 8, 2023 .

Contact for the report:

Friedrich-Wilhelm Micus

Sustainability Communications

Tel.: + 49 (0)5531-90-13 63

E-mail: friedrich-wilhelm.micus(at)symrise.com

None

For the ninth time in a row, our sustainability information has been externally assured pursuant to the AA1000 Assurance Standard, which was performed by DQS CFS. The assurance process assesses all quantitative and qualitative sustainability information. Verified content has been marked as follows:

Symrise develops, produces and sells fragrances and flavorings, cosmetic active ingredients and raw materials as well as functional ingredients and solutions that enhance the sensory properties and nutrition of various products. Our company’s approximately 30,000 products are mainly produced on the basis of natural raw materials like vanilla, citrus fruits, onions, meat, fish, blossoms and plant materials. Our flavors, substances, perfume oils and sensory solutions are often central functional components in our customers’ products. These customers include manufacturers of perfumes, cosmetics and foods and the pharmaceutical industry as well as producers of nutritional supplements, pet food and baby food.

With Symrise sites in 42 countries, we maintain a local presence on our most important sales markets. Symrise products are bought and sold in approximately 160 countries worldwide.

With sales of € 4.6 billion in the 2022 fiscal year (2021: € 3.8 billion) and a market share of around 12 % (2021: 10 %), Symrise is one of the leading global suppliers in the flavors and fragrances market. Headquartered in Holzminden, Germany, the Group is represented in more than 100 locations in Europe, Africa, the Middle East, Asia, the United States and Latin America. The Symrise Group originally resulted from a merger between the German companies Haarmann&Reimer and Dragoco in 2003. The roots of Symrise date back to 1874 and 1919, when the two companies were founded. Since its initial public offering (IPO) in 2006, Symrise AG has been listed in the Prime Standard of the German Stock Exchange. During the expansion of the German benchmark index DAX from 30 to 40 companies, Symrise moved up from the MDAX to the DAX in September 2021. At the end of the reporting year, market capitalization was around € 14 billion (2021: € 18 billion) and the share’s free float was around 95 % (2021: 95 %).

Symrise AG’s headquarters are located in Holzminden, Germany. At this site, the Group’s largest, Symrise employs 2,584 employees (2021: 2,585) people in the areas of research, development, production, marketing and sales as well as in the Corporate Center. The company has regional headquarters in the USA (Teterboro, New Jersey), Brazil (São Paulo), Singapore and France (Rennes, Brittany). Important production facilities and development centers are located in Germany, France, Brazil, Mexico, Singapore, China and the USA. Symrise has sales branches in more than 40 countries.

We manufacture our products using approximately 10,000 natural and synthetic raw materials from over 100 countries. These materials find their way into around 30,000 products. Overall, Symrise works with approximately 6,000 suppliers around the world. The majority of our suppliers come from the EAME region (Europe, Africa, and the Middle East).

We are constantly adapting the organizational structure of our purchasing department to the changing conditions on the market. Procurement at Symrise is organized in a decentralized manner in the segments of Scent & Care and Taste, Nutrition & Health. In this way, we can manage purchasing processes in a more targeted manner and continually optimize the supply chain. An established scorecard system supports purchasers with relevant indicators. In keeping with our new guidelines on responsible sourcing and our Code of Conduct for suppliers, we rely on close and continuous cooperation with suppliers, social and ecological commitment locally, and on strategic partnerships with our key customers.

National and international standards and legal requirements on the protection of humans and the environment comprise a core component of the Symrise purchasing policy (see also GRI 2-23).

In the reporting year, Symrise consolidated its business by means of strategic acquisitions. In the Scent & Care segment, Symrise acquired two French companies, SFA Romani and Groupe Neroli, in order to expand our fine fragrances business. Our international expansion in the pet food area was also boosted with the takeover of Schaffelaarbos in the Netherlands. The acquisition of Wing Pet Food, a leading manufacturer of pet food taste solutions in the Asia/Pacific region, underlines this ambition.

Starting in 2023, Symrise will be affected by the German Supply Chain Due Diligence Act. In 2021, in order to meet its due diligence obligations, Symrise set up a Responsible Sourcing Steering Committee (RSSC) made up of representatives of the segments plus Corporate Sustainability. The Committee defines the strategy and procedures for implementation (see also Management approach to GRI 204). In 2022, Symrise also established the role of Human Rights Officer within the Corporate Sustainability department. The incumbent reports directly to the CSO. Corporate Sustainability provides the Executive Board with information on the company’s human rights status, supply chains and any risks to human rights identified.

The stated aim of Symrise is to source all materials and services on the basis of sustainable criteria by 2025, based on 90 % of our procurement volume. We will evaluate all our suppliers (direct and indirect) according to environmental and social sustainability criteria to promote and protect human rights along our supply chains. Our expectations are described in detail in our guidelines on responsible sourcing which also serves as a Code of Conduct for suppliers and was published in June 2022. Since publication, the Code has been rolled out in stages to our suppliers and business partners.

As of the end of 2022, the Symrise Group had 11,204 employees worldwide, excluding trainees and apprentices (2021: 10,745). A stable workforce that supports and advances our company is very important to us. We place great value on the training of new employees and the continuing education of our existing staff. For this reason, we primarily employ permanent employees (96.7 % of our workforce; 2021: 96.3 %). Only a small number of employees have fixed-term contracts (3.3 % of the workforce; 2021: 3.7 %).

Women account for approximately 33.2 % of permanent employees in Germany (2021: 33.9 %); of fixed-term employees, women account for 22.5 % (2021: 21.7 %). At our locations outside of Germany, employees work almost exclusively in full-time positions in accordance with the respective local labor laws. In Germany, the number of part-time employees stands at 464 (2021: 460), equivalent to approximately 15.3 % of the German workforce (2021: 15.1 %). All key activities at Symrise are performed by employees and therefore by supervised workers of the Symrise Group. The percentage of temporary workers at Symrise was 1.8 % of the workforce in 2022 (2021: 2.0 %). At Symrise there are no noteworthy fluctuations throughout the year in the number of employees, such as seasonal workers. The following information is based on our global, monthly headcount reporting as well as annual diversity data reporting, which covers Germany, France, USA, Singapore, China, India, Brazil and Mexico and thereby encompasses a total of around 8.000 employees (2021: approximately 8,000).

Global employees (headcount) by contract type and working hours^*

^* Basis: employee figures (headcount, not FTE), not including temporary workers, apprentices and trainees and without Probi, as of December 31 of the respective year. Small differences in the totals may be present due to rounding.

Employees (FTE) by region^*

^* Basis: full-time equivalents (FTE), not including temporary workers or Probi, as of December 31 of the respective year. Small differences in the totals may be present due to rounding.

All key activities at Symrise are performed by employees and therefore by supervised workers of the Symrise Group. The percentage of temporary workers at Symrise was 1.8 % of the workforce in 2022 (2021: 2.0 %). At Symrise there are no noteworthy fluctuations throughout the year in the number of employees, such as seasonal workers. The following information is based on our global, monthly headcount reporting as well as annual diversity data reporting, which covers Germany, France, USA, Singapore, China, India, Brazil and Mexico and thereby encompasses a total of around 8.000 employees or 67 % of our workforce (2021: approximately 8,000).

See Financial Report, p. 7ff..

The Declaration of Compliance pursuant to Section 161 of the German Stock Corporation Act (AktG) is available on an ongoing basis on our website www.symrise.com.

The Supervisory Board of Symrise AG has twelve members. Symrise ensures that more than half of the shareholder representatives should as a rule be independent of the company and the Executive Board. This goal is currently being met. The independent members are Ms. Ursula Buck, Mr. Horst-Otto Gerberding, Mr. Bernd Hirsch, Mr. Michael König, Professor Andrea Pfeifer and Mr. Peter Vanacker. The four women currently serving on the Supervisory Board are Ms. Buck, Ms. Chiarlitti, Professor Pfeifer and Ms. Püttcher.

Furthermore, we aim to ensure that the share of Supervisory Board members from other nations does not fall below one-third. However, this does not mean that the sole emphasis is on nationality; rather, the decisive factor is for at least one-third of Supervisory Board members to have substantial experience in globally active groups in Germany and abroad. This goal is also currently being met.

The term of office for a Supervisory Board member must end at the conclusion of the Annual General Meeting following the member’s 70th birthday. The maximum limit for membership of the Supervisory Board is four terms of office. These two goals are currently being met. Concerning future nominations, it will be ensured that the goals defined by the Supervisory Board continue to be fulfilled.

In accordance with Section 125 (1) sentence 5 of the German Stock Corporation Act (AktG), two of the twelve members of the Supervisory Board hold memberships in other statutory supervisory boards and memberships of comparable domestic and international supervisory bodies of commercial enterprises:

Professor Andrea Pfeifer:

• Bio MedInvest AG, Basel, Switzerland, Chairperson of the Board of Directors
• AB2 Bio SA, Lausanne, Switzerland, Chairperson of the Board of Directors

Peter Winkelmann:

• amedes Holding GmbH, Hamburg, Vice Chairperson of the Supervisory Board
• Apollo 5 GmbH, Starnberg, Vice Chairperson of the Supervisory Board
• Weserwerk Alfeld GmbH, Alfeld, Chairperson of the Supervisory Board

The members of the Executive Board as appointed by the Supervisory Board are as follows: Dr. Heinz-Jürgen Bertram (Chairperson, contract terminates on October 31, 2025), Mr. Olaf Klinger (CFO, contract terminates on January 31, 2024) and Dr. Jean-Yves Parisot (contract terminates on September 30, 2024).

The current number of Symrise shares is 139,772,054 (2021: 139,722,054).

Pursuant to Section 8 (1) of the company’s articles of incorporation in conjunction with Section 96 (1) of the German Stock Corporation Act and Section 7 (1) sentence 1 number 1 of the German Codetermination Act 1976 (“MitbestG”), the Supervisory Board consists of twelve members. Six members are elected by the Annual General Meeting and six by the company’s employees in accordance with the provisions of the Codetermination Act.

At present, the following shareholder representatives have been elected to the Supervisory Board for the period until the end of the Annual General Meeting that rules on the approval of actions for the 2024 fiscal year: Ms. Ursula Buck, Managing Director of Top Managementberatung BuckConsult, Possenhofen; Mr. Bernd Hirsch, CFO of COFRA Holding AG, Neuler; Mr. Michael König, Chief Executive Officer of Nobian Industrial Chemicals B.V., Iserlohn; Professor Andrea Pfeifer, CEO of AC Immune S. A., St. Légier, Switzerland and Mr. Peter Vanacker, CEO of LyondellBasell Industries N.V., Houston, USA. Mr. Horst-Otto Gerberding, owner and Chairman of the Advisory Board of Gottfried Friedrichs GmbH & Co. KG, Holzminden, was elected to the Supervisory Board for the period until the end of the Annual General Meeting that rules on the approval of actions for the 2022 fiscal year.

The following six employee representatives have been elected to the Supervisory Board from among the German staff in compliance with the legally prescribed election process for the period until the end of the Annual General Meeting that rules on the approval of actions for the 2025 fiscal year: Mr. Harald Feist, Chairperson of the Works Council and the General Works Council of Symrise AG, Holzminden; Ms. Jeannette Chiarlitti, Deputy Regional Head of IG BCE for the North region, Burgdorf; Mr. André Kirchhoff, independent member of the Works Council of Symrise AG, Bevern; Dr. Jakob Ley, Director Research Biobased Ingredients Taste, Nutrition & Health at Symrise AG, Holzminden; Ms. Andrea Püttcher, Deputy Chairperson of the Works Council and Vice Chairperson of the General Works Council of Symrise AG, Bevern, and Mr. Peter Winkelmann, Regional Head of IG BCE District South Lower Saxony, Alfeld.

By supporting appropriate election proposals for the election of shareholder representatives by the Annual General Meeting and the election of employee representatives by the staff, the Supervisory Board will continue to work toward implementing the requirements of the law (“FüPoG I”) insofar as they relate to the composition of the Supervisory Board.

In accordance with Recommendation C 1 of the German Corporate Governance Code 2020, the Supervisory Board should specify concrete goals for its composition and develop a competence profile for the entire Board, thereby paying attention to diversity. Taking account of the specific company situation, diversity is defined by internationality, age, gender and education or professional background, among other things. The Supervisory Board of a listed company to which, among other things, the Codetermination Act (MitbestG) applies must be composed of at least 30 % women and at least 30 % men. The Supervisory Board of Symrise AG complies with this legal requirement. As a result of this requirement, the Supervisory Board is no longer obliged to set further targets and implementation deadlines for its composition.

As in the past, the Supervisory Board formed a total of four committees to fulfill its responsibilities more efficiently. These committees draft the Supervisory Board’s resolutions and prepare the agenda items to be addressed in the full meetings. Where legally admissible, the Supervisory Board delegates decision-making to its committees in individual cases. The Supervisory Board established an Auditing Committee, an Arbitration Committee pursuant to Section 27 (3) of the Codetermination Act (MitbestG), a Personnel Committee and a Nominations Committee as permanent committees. The task of the latter is to recommend suitable candidates to represent the shareholders when new Supervisory Board elections are coming up. The Chairman of the Supervisory Board chairs all of the committees with the exception of the Auditing Committee. In the full meetings, the chairs of the committees report regularly and comprehensively on the content and results of the committee meetings.

The Personnel Committee is responsible for matters pertaining to the Executive Board. In particular, these matters include making resolution recommendations at full Supervisory Board meetings regarding the appointment of Executive Board members and components of Executive Board members’ employment contracts. This also includes succession planning at the Executive Board level in accordance with Recommendation B 2 of the German Corporate Governance Code 2020. The Personnel Committee addresses succession planning for members of the Executive Board at least once a year. In particular, the terms of existing employment contacts and the age structure of the Executive Board are taken into account. The Supervisory Board and Executive Board are committed to ensuring internal talent development for employees at levels below the Executive Board for all Executive Board positions, thereby taking account of skill sets and diversity criteria. Evaluation for these is carried out by means of internal assessments as well as external assessments. In this process, candidates who have the potential to take over a position on the Executive Board undergo an assessment that leads directly from an individual analysis to an individual development plan. The aim is to be able to fill the majority of positions on the Executive Board internally. The Personnel Committee deals with the development of the Executive Board remuneration system – specifying the amount of remuneration and the related target agreements and making corresponding recommendations at the full Supervisory Board meetings. In doing so, the Personnel Committee also takes into account the requirements of FüPoG II, which came into force on August 12, 2021. For this reason, when appointing new members to the Executive Board in the future, we will not only strive for diversity criteria, but also for appropriate consideration of women. The Personnel Committee currently has six members, of whom three members are chosen by the shareholder representatives and three are chosen by the employee representatives in the Supervisory Board. The members are Mr. Michael König (Chairperson), Mr. Harald Feist, Mr. Horst-Otto Gerberding, Dr. Jakob Ley, Professor Andrea Pfeifer and Mr. Peter Winkelmann.

The Auditing Committee mainly focuses on matters relating to the annual financial statements and consolidated financial statements, which includes monitoring the accounting process, the effectiveness of the internal controlling system, the risk management system, the internal auditing system, the audit of annual accounts and the compliance management system. The Auditing Committee also regularly deals with issues relating to Group financing, liquidity planning and securing liquidity; it also monitors the independence and qualifications of the auditor as well as additional services provided by the auditor. Furthermore, the Auditing Committee discusses the interim reports in detail and approves them before they are published. The Auditing Committee prepares the Supervisory Board’s decision on the approval of the annual financial statements and its approval of the consolidated financial statements. To this end, it is responsible for pre-auditing the annual financial statements, the consolidated financial statements, the management report and the proposal regarding appropriation of earnings. The regular agenda items also include the acceptance of reports from Internal Auditing and the Group Compliance office as well as the risk report.

The Auditing Committee prepares the Supervisory Board’s proposal to the Annual General Meeting to appoint an auditor for the new fiscal year. The Auditing Committee also obtains the relevant declarations of independence from the auditor and commissions the auditor to perform the audit. Furthermore, the Auditing Committee is responsible for preparing the decision of the Supervisory Board regarding auditing fees. The Auditing Committee currently has six members. Three members are commissioned by the shareholder representatives of the Supervisory Board and three members are commissioned by the employee representatives of the Supervisory Board. The Chairperson of the Auditing Committee must be independent and may not be the Chairperson of the Supervisory Board. One member must have expertise in the field of accounting. Another member must have expertise in the field of auditing. The current members are Mr. Bernd Hirsch (Chairperson), Ms. Ursula Buck, Ms. Jeannette Chiarlitti, Mr. Harald Feist, Mr. Michael König and Ms. Andrea Püttcher.

Shareholders and employees are equally represented on the Arbitration Committee pursuant to Section 27 (3) of the Codetermination Act (MitbestG). In the event that the appointment of a member of the Executive Board is not approved by the two-thirds majority required by law, it is responsible for submitting an alternative proposal to the Supervisory Board. The Arbitration Committee has four members. The current members are Mr. Herr Michael König (Chairperson), Ms. Ursula Buck, Mr. Harald Feist and Mr. André Kirchhoff.

The Nominations Committee consists exclusively of shareholder representatives from the Supervisory Board in accordance with Recommendation D 5 of the German Corporate Governance Code 2022. Its task is to recommend shareholder representatives to the Annual General Meeting who would be suitable Supervisory Board members for upcoming Supervisory Board elections. The Nominations Committee consists of three members. Currently, these are Mr. Michael König (Chairperson), Mr. Horst-Otto Gerberding and Professor Andrea Pfeifer.

Bernd Hirsch, who joined the Supervisory Board on May 16, 2018, is the first member to have previously been a member of the Executive Board. Two years, four months and 15 calendar days elapsed between the end of Mr. Hirsch’s activity on the Executive Board and his election to the Supervisory Board. This satisfied the conditions of Section 100 (2) number 4 of the German Stock Corporation Act (AktG) (the “cooling-off” period).

Neutral and independent consulting and monitoring of the Executive Board continues to be ensured without restriction. With Mr. Hirsch and Mr. König, at least two independent members of the Supervisory Board and Auditing Committee also have expertise in the fields of auditing (Bernd Hirsch) and accounting (Michael König).

Symrise AG shareholders exercise their codetermination and control rights at the Annual General Meeting, which takes place at least once each year. We regularly inform our shareholders, analysts, shareholder associations and the public of all important dates by means of a financial calendar. Corporate communication is undertaken with the objective of guaranteeing the greatest possible transparency and equality of opportunities through timely and equal information to all target groups (see also GRI 2-29).

The Executive Board develops the company’s strategic direction, approves it with the Supervisory Board and is responsible for its implementation. The Supervisory Board advises and oversees the Executive Board in the management of the company. It is involved in strategy and planning as well as all other decisions of fundamental significance to the company. The Chairperson of the Supervisory Board coordinates the work of the Supervisory Board, chairs its meetings and externally represents the concerns of the body.

The Corporate Sustainability department coordinates our global sustainability management. Together with the business divisions involved, it develops guidelines and procedural instructions based on the global principles defined by the Executive Board and assesses compliance with legal requirements and obligations set by Symrise. Direct responsibility for the sustainability agenda lies with the Chief Executive Officer (CEO), who receives regular reports on the progress of all sustainability activities. The Chief Sustainability Officer (CSO) is responsible for developing and implementing the sustainability agenda and jointly with the Executive Board defines the objectives in respect of footprint, innovation, sourcing and care, which apply throughout the Group. The comprehensive Sustainability Board sets sustainability objectives, which are directly implemented in the respective divisions. The Sustainability Organization is supported by a global network of around 150 Sustainability Ambassadors that locally implement initiatives.

The Auditing Committee set up by the Supervisory Board mainly focuses on matters relating to the annual financial statements and consolidated financial statements, which includes monitoring the accounting process, the effectiveness of the internal controlling system, the risk management system, the internal auditing system, the audit of annual accounts and the compliance management system.

It also monitors the independence and qualifications of the auditor as well as additional services provided by the auditor. The regular agenda items also include the acceptance of reports from Internal Auditing and the Group Compliance office as well as the risk report.

For information on managing sustainability-related opportunities and risks, see also GRI 2-22.

Internal Auditing performs scheduled and ad hoc audits of units in the Symrise Group. An annual audit plan is submitted to the Auditing Committee, which must approve it. Specific measures are proposed in the audit reports to help mitigate the identified risks. Internal Auditing also reviews how these risk mitigation measures are implemented. Specific staff members are assigned responsibility for this and held accountable.

The risk management system at Symrise is based on a framework of generally recognized standards and extends across the Symrise Group’s companies and business units. Risk assessment is coordinated at the Group level. A Group risk report is passed on to the Executive Board and Supervisory Board twice a year. There, potential risks and opportunities are identified and classified according to their effect on profit (net method) as well as the probability of their occurrence. An efficacy test of the risk report is performed during internal corporate audits. In addition, the risks and opportunities of all segments are discussed within the Sustainability Board and measures are taken as necessary.

In line with its articles of incorporation, the Supervisory Board of Symrise AG has twelve members. It oversees and advises the Executive Board in the management of the company and regularly discusses business development, planning, strategy and risks with the Executive Board. In compliance with the German Codetermination Act, the Symrise AG Supervisory Board has an equal number of shareholder and employee representatives. The Supervisory Board has formed four committees to increase the efficiency of its work. Details on cooperation between the Executive and Supervisory Boards as well as on corporate governance at Symrise can be found in the Supervisory Board report and the Corporate Governance Statement.

In 2009 Symrise established its Corporate Sustainability Board, a global committee to span the segments, in order to facilitate the integration of sustainability into our core processes. Several times a year, representatives of the Taste, Nutrition & Health and Scent & Care business segments and one representative each from Human Resources, Investor Relations and Corporate Communications meet to ensure that sustainability-related topics and concerns of important stakeholders are considered along the entire value chain.

A Chief Sustainability Officer (CSO) drives sustainable development on a broad front in the overall group of undertakings. The CSO reports directly to the CEO and functions as the Director of the Sustainability Board.

The Sustainability Board sets sustainability objectives and supports measures, which are directly implemented in the respective divisions. Special attention is paid to realizing synergies among the operating segments and implementing uniform, strategic principles through coordinated approaches and cooperation. Direct responsibility for strategy lies with the Chief Executive Officer of Symrise AG, who receives regular reports on the progress of all sustainability activities. The company’s sustainability objectives also flow into individual performance goals and thereby into executive remuneration.

A global network of more than 150 Sustainability Ambassadors also draws the attention of Symrise employees to the sustainability agenda and, in addition to implementing the strategic, Group-wide goals, drives forward targeted initiatives at the company sites. Regional coordinators contribute to networking among the ambassadors, including through workshops and surveys.

This report is reviewed by the Executive Board; all non-financial report points are audited by DQS before the report is presented to the Supervisory Board for approval.

As in the previous year, conflicts of interest involving members of the Executive Board, which have to be disclosed to the Supervisory Board without delay, did not occur in the 2022 fiscal year. There were no consultant or service agreements or other exchange contracts between members of the Supervisory Board and the company in the 2022 fiscal year.

Compliance topics, insofar as they exist, are initially reported to the Executive Board and then to the Supervisory Board via the Auditing Committee.

If the Executive Board itself is subject to any compliance investigation, then reporting goes directly to the Chairperson of the Auditing Committee.

The Group Compliance Officer and Internal Auditing report to the Auditing Committee of the Supervisory Board regularly at each of the committee’s meetings. During the reporting year, the Group Compliance officer reported no substantial findings to the Supervisory Board.

When nominating candidates for election to the Supervisory Board, particular attention was paid to the knowledge, skills and professional experience required for the duties to be performed, as well as to the principle of diversity among the Supervisory Board’s members. This ensures that the members of the Supervisory Board as a whole have the knowledge, skills and professional experience required to perform their duties properly.

The Supervisory Board advises and oversees the Executive Board in the management of the company. It is involved in strategy and planning as well as all other decisions of fundamental significance to the company. The Chairperson of the Supervisory Board coordinates the work in the Supervisory Board, chairs its meetings and externally represents the concerns of the body.

As in the past, the Supervisory Board formed a total of four committees to fulfill its responsibilities more efficiently. These committees draft the Supervisory Board’s resolutions and prepare the agenda items to be addressed in the full meetings.

Bernd Hirsch, who joined the Supervisory Board on May 16, 2018, is the first member to have previously been a member of the Executive Board. Two years, four months and 15 calendar days elapsed between the end of Mr. Hirsch’s activity on the Executive Board and his election to the Supervisory Board. This satisfied the conditions of Section 100 (2) number 4 of the German Stock Corporation Act (AktG) (the “cooling-off” period). Neutral and independent consulting and monitoring of the Executive Board continues to be ensured without restriction. One member must have expertise in the field of accounting and one in the area of auditing.

In accordance with Section 87 (1) of the German Stock Corporation Act (AktG), the Supervisory Board decides on the remuneration system for the Executive Board and sets the remuneration of the individual Executive Board members. The Supervisory Board aligns remuneration to the sustainable and long-term development of the company. On February 24, 2022, Supervisory Board approved a remuneration system for the members of the Executive Board members with retroactive effect from January 1, 2022.

Please see the 2022 Remuneration Report for detailed information about our remuneration system.

The objectives of the Symrise remuneration system are:

• to promote the implementation of the long-term strategy, including the sustainability objectives;
• to ensure the financial stability of the company through continual increases in business free cash flow;
• to establish sustainability as a firm feature of the business model as well as in the Executive Board remuneration system;
• to ensure alignment to the needs of shareholders and other stakeholders of the company;
• to present the remuneration system transparently and clearly.

We revised the remuneration system for the Executive Board in 2022. The revision was duly approved by the Supervisory Board and the Annual General Meeting. All three members of the Executive Board have joined the new system retrospectively for 2022. Two points in particular were changed: the ratio of remuneration elements (higher proportion in long-term remuneration) and the inclusion of ESG goals as part of the remuneration system.

At around 70 % of total remuneration (previously: 65 %), the performance-related, variable component significantly exceeds the weight of the non-performance-related, fixed remuneration components. As the performance criteria for the respective fiscal year are derived from the rolling medium-term plan, the short-term incentive (STI) also supports the pursuit of long-term, multi-year corporate goals. This is how we ensure that the pursuit of operational goals is in line with the long-term orientation of our business goals. In contrast, the long-term incentive oriented to the share price plus dividends (total shareholder return) and the ESG goals (since 2022) reflects how the company is viewed by the capital market while aligning the remuneration of the Executive Board members and the interests of the shareholders.

The remuneration of the Executive Board members of Symrise AG consists of non-performance-related and performance-related components. The non-performance related remuneration comprises the fixed remuneration, which is paid out in twelve equal monthly amounts as a fixed annual remuneration, and fringe benefits in the form of non-cash benefits such as the provision of a company car and other benefits – including insurance benefits in the form of group accident insurance. The performance-based remuneration components comprise the short-term, one-year remuneration (STI) and the long-term, multi-year remuneration, the long-term incentive plan (LTIP). For both the STI and the LTIP, a cash bonus is agreed as a benefit in the event of 100 % target achievement.

The fixed annual remuneration plus the cash bonus in the STI and the cash bonus in the LTIP (each based on 100 % target achievement) result in the target total remuneration of the individual Executive Board member. At Symrise, the objective for the 2022 Executive Board remuneration system is that 30 % (previously 35 %) of the total target remuneration is accounted for by the fixed remuneration, 30 % by the one-year variable remuneration and 40 % (previously 35 %) by the multi-year, variable remuneration. Individual remuneration adjustments may result in minor deviations from the target. The actual payment, based on one year, depends on the actual achievement of the performance-related remuneration components.

Relative share of fixed remuneration as well as short-term variable and long-term variable remuneration

In one-year variable remuneration, financial and thus quantitative performance criteria are taken from the annual business planning of Symrise. Specifically, these are exchange rate-adjusted EBITDA and exchange rate-adjusted net sales in absolute terms. The annual targets recognized here are taken from the rolling medium-term plan presented to and approved by the Supervisory Board. In addition to the absolute financial indicators, operating ratio indicators (known as margin targets) are agreed with the Executive Board members, in order properly to assess operating management performance. Specifically, these are the exchange rate-adjusted EBITDA margin (weighting: 30 %) and the exchange rate-adjusted business free cash flow as a percentage of sales (weighting: 20 %). Finally, in order to include the shareholder perspective in the remuneration of the Executive Board members, the exchange rate-adjusted earnings per share are included in the performance-related remuneration of the Executive Board members. Each of these financial indicators relates to a specific fiscal year, meaning that the attainment of annual targets and the fixed annual bonus are in line with each other. For each financial indicator, a numerical target that corresponds to 100 % target achievement is determined; 80 % of the individual annual bonus is based on these financial performance criteria. The remaining 20 % of the annual bonus is derived from non-financial and, therefore, qualitative performance criteria. Topics from the area of the sustainability agenda that are important for the long-term and sustainable development of Symrise are used as non-financial targets. These can be topics from the area of environmental and climate protection (greenhouse gas (GHG) emissions, water consumption, electricity from renewable energies), occupational safety or employee development and promotion. Alternatively, the Supervisory Board may also specify strategically important goals as qualitative, non-financial goals if it is certain that these are better suited as a benchmark to promote the long-term development of Symrise.

Members of the Supervisory Board and the Executive Board do not receive Symrise stock as part of their remuneration.

Overview of financial goal components of the short-term incentive

In 2022, we continued to focus on optimising our working capital. In addition, the reduction of our GHG emissions (Scope 1+2), the sustainable orientation of our innovation process and the procurement of raw materials from sustainable sources were among the measures incentivized. Furthermore the successful refinancing of the promissory note tranche maturing in 2022 and the current M&A transactions in the debt capital market and the development of sustainable products were important goals.

The Symrise LTIP is a multi-year, performance-based variable remuneration component as part of the target total remuneration of Symrise Executive Board members. It is granted in the form of annual tranches, each of which covers a performance period of four consecutive years. The LTIP thus supports the pursuit of a sustainable and long-term strategy of profitable growth over the performance period. 40 % of the LTIP amount reflects the financial performance criteria of earnings per share (“EPS”) over the performance period and relative total shareholder return (“TSR”) by comparison with the peer group during the performance period; 20 % of the LTIP amount reflects ESG goals. The Symrise LTIP is based on the indexed share price development. For this purpose, the development of the Symrise share price is compared with the development of the share price of a predefined peer group.

By resolution of the Supervisory Board in the 2020 fiscal year, a malus and clawback provision was established for the first time for new Executive Board employment contracts due to be concluded (see also 2022 Remuneration Report, p. 19). Accordingly, in the event of gross misconduct (known as a “compliance clawback”) and misrepresentation in the financial reporting of Symrise AG (known as a “performance clawback”), the Supervisory Board has the option to withhold the one-year and multi-year variable remuneration (cash bonus) – known as a “malus” – or, if the bonus has already been paid out, to reclaim it (known as a “clawback”):

• In the event of violations pertaining to material duties of care under stock corporation law, or of material principles of action under the Symrise Code of Conduct or the Symrise Compliance Policy, the Supervisory Board may, at its due discretion, reduce the variable remuneration not yet paid out in part, or in full to zero.
• Furthermore, it may, at its due discretion, demand the partial (or full) repayment of the gross amount of any variable remuneration already paid out.
• In addition, Executive Board members are obligated to repay any variable remuneration already paid out if it transpires subsequent to the payment that the annual financial statements certified by the auditors and adopted by the Supervisory Board were incorrect and the incorrect disclosures were used as a basis for calculating the annual bonus. Individual fault on the part of an Executive Board member is not relevant in this case.
• Irrespective thereof, in the event of damaging conduct by Executive Board members deemed to be in breach of their duties, the law provides for the possibility of a reduction in payments or pursuit of recourse.

The Executive Board contracts under the new remuneration system contain a provision that allows for the withholding or reclaiming of variable remuneration components in justified cases.

In 2022, there were no clawback claims against any Executive Board member, neither for performance-related reasons (performance clawback), nor for behavior-related reasons (compliance clawback).

When an Executive Board member’s contract expires, we offer no termination benefits. If a change-of-control situation happens to arise, then the Executive Board member’s contract provides for termination benefits that comply with the German Corporate Governance Code. We offer a company pension in the form of deferred compensation. This applies to the Executive Board as well as to the entire management. We provide our remaining employees with either a retirement benefit plan in the form of membership of a retirement fund (today’s standard) or a suitable retirement plan (old cases).

For our managers and employees who are not governed by collective bargaining agreements, remuneration is determined worldwide by means of a job grade model. This model rates the functional contribution of each individual to the success of the company (strategy, responsibility for sales and expenses, manager-to-staff ratio, etc.) and assigns a corresponding job grade to the function. Our managers receive a regular fixed monthly or annual income.

All employees who are not governed by collective bargaining agreements additionally receive variable remuneration between 10 % and 40 % according to the job grade. We have established a separate global performance bonus plan for our approximately 300 managers who have global or regional responsibilities (our senior management). With this, we motivate managers to achieve agreed company targets by means of a variable remuneration geared toward results and performance. Depending upon level of seniority, the variable remuneration of our senior management amounts to 30 % to 50 % of the fixed annual remuneration. A cap is set at 150 % of the 100 % target annual bonus.

In accordance with Section 87 (1) of the German Stock Corporation Act (AktG), the Supervisory Board decides on the remuneration system for the Executive Board and sets the remuneration of the individual Executive Board members. In accordance with German codetermination, employee representatives in the Supervisory Board participate as stakeholders in determining remuneration. The Supervisory Board aligns remuneration to the sustainable and long-term development of the company. In accordance with its articles of association, the Supervisory Board is supported in this by a Personnel Committee formed from among its members. This committee may call in external consultants on remuneration issues, in particular to prepare benchmark studies or to align and adjust our remuneration concept.

The Personnel Committee meets at least twice a year. At its meetings, it reviews the system for the remuneration of Executive Board members and makes appropriate proposals to the Supervisory Board as required. In the event of material changes, and at least every four years starting in 2021, the system of Executive Board remuneration is presented to the shareholders for approval at the Annual General Meeting. If the Annual General Meeting does not approve the remuneration system, which is put to the vote, it will be presented again for resolution in an adjusted form at the following Annual General Meeting.

In 2022, the remuneration system for the Executive Board adopted in the previous year was revised. The Supervisory Board approved the revised remuneration system in February 2022; the system was duly approved by the Annual General Meeting in May 2022. All three members of the Executive Board have joined the new system retrospectively for 2022.

The Personnel Committee evaluates the individual performance of the Executive Board members once a year based on the approved remuneration system, determining the target achievement of the respective Executive Board member. The most recent review was carried out in March 2021. The Personnel Committee also annually reviews the performance-related variable remuneration based on individual target achievement and ensures that the maximum remuneration specified in the system (the cap) is not exceeded. Variable remuneration and monthly fixed remuneration therefore combine to form the total compensation of the individual Executive Board members. If there is a need to adjust the Executive Board remuneration system, the Personnel Committee will make a corresponding recommendation to the Supervisory Board. In the event of material changes to the system of Executive Board remuneration, this will be submitted (again) to the Annual General Meeting for resolution.

If necessary, the Personnel Committee prepares a proposal to adjust Executive Board remuneration for resolution by the Supervisory Board. To do this, the Personnel Committee may call in external advice to review its appropriateness in relation to comparable companies in Germany. The goal is to ensure that the total remuneration of the Executive Board is in line with the median of comparable companies. A Symrise-specific peer group of MDAX and selected DAX companies from the same industry that roughly correspond to the size of Symrise in terms of sales, market capitalization and number of employees, is used as a benchmark for determining the level of remuneration.

There are no personal relationships between Symrise and the professional consulting company. Commissioning is done in each individual case by the Supervisory Board.

The remuneration of our employees, including our managers, is based on a standardized job grade concept specific to Symrise. This keeps remuneration oriented toward the value contribution of the position that employees hold, rather than their place in the hierarchy. It also ensures that remuneration within the company is perceived as transparent, fair and in line with the market, and that it is not bound to hierarchical structures. The job grade concept includes a manager track and a specialist track for experts. It consists of wide salary ranges that facilitate the individual development of employees within the band by means of “job enrichment,” projects and augmented expertise. By using this approach, we align professional development with salary development. Depending on the form of the wage agreement in the individual countries, the job grades include 5 to 10 steps for the classification of functions according to a set catalog of criteria (for example, qualification, know-how, functional responsibility and strategic impact).

In Germany, by far our largest location, the average annual total remuneration for the EAME regional presidents (level below the Executive Board) comes to about € 350,000. On average, the annual income of all our employees in Germany amounts to approximately € 70,000 (2021: € 66,800). As such, our employees with the highest remuneration earn 4.5 times more than our average employee.

At our Singapore location, the average annual total remuneration for the APAC regional presidents comes to about € 455,500. On average, the annual income of all our employees in Singapore amounts to approximately € 60,000 (2021: € 70,730). As such, our employees with the highest remuneration earn 7.5 times more than our average employee.

At our New Jersey location in the USA, the average annual total remuneration for the regional presidents comes to about € 351,000. On average, the annual income of all our employees in the United States amounts to approximately € 78,000 (2021: € 105,260). As such, our employees with the highest remuneration earn 4.5 times more than our average employee.

At our Brazil location, the average annual total remuneration for the regional presidents comes to about € 290,000. On average, the annual income of all our employees in Brazil amounts to approximately € 30,000 (2021: € 34,760). As such, our employees with the highest remuneration earn 10.3 times more than our average employee. The annual incomes expressed in euros are computationally lower due to the decline of the Brazilian real compared to the euro. In fact, the salaries of our employees in Brazil were increased by 6.4 % in November 2022 in line with the collective wage agreement for Brazil.

The annual incomes expressed in euros are computationally lower due to exchange rate fluctuations, among other things. In fact, the salaries of our employees in Brazil were increased by 6.4 % in November 2022 in line with the collective wage agreement for Brazil.

When calculating the figures for Germany, we did not factor in the remuneration of the Executive Board. At Symrise, the average remuneration of an Executive Board member, consisting of the fixed remuneration, an annual variable component and a long-term variable component, corresponds to approximately 20 times the average remuneration of Symrise employees worldwide.

In Germany, the remuneration of all employees was last increased in July 2021 thanks to a new collective bargaining agreement. The next general remuneration adjustment will take place on 1/1/2023, 7/1/2023 and 1/1/2024 following negotiations between Symrise and the collective bargaining committee. In addition, Symrise paid a bonus of EUR 1,400 in May and an inflation bonus of EUR 1,500 in December 2022. Symrise will pay another inflation bonus of the same amount to all full-time employees by January 2024.

We believe that economic success, sustainability and social acceptance are inextricably linked. 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.

With our business model, we help meet basic human needs for health, nutrition, care and well-being. At the same time, we consider the ways in which our company grows and is successful to be of vital importance. Many of the traditional production processes in the fragrance and flavor industry are energy-intensive, release potentially harmful emissions and consume precious natural resources. At the same time, if we want to deliver innovative and sustainable products, we are dependent on a new generation of well-educated employees as much as on rich biological diversity from which we can derive our inspiration and creative ideas.

We are convinced that only such an expanded view, one that goes beyond narrow corporate limits, helps to secure our long-term growth and to increase our efficiency while also enabling us to further develop our innovative and sustainable product portfolio. Therefore, the four pillars of our sustainability agenda, Footprint, Innovation, Sourcing and Care, form the foundations of our integrated corporate strategy. In these fields, we intend to make a concerted effort to reduce the negative impact of our business activities and to enhance our societal added value. In the process, we actively contribute to the achievement of the sustainable development goals. Using our materiality analysis, we have systematically assessed the impacts of our business activities in 2022 within the context of sustainability and our stakeholders’ expectations (see also GRI 3-1).

We have integrated the risks associated with climate change, their identification and minimization, and the realization of new opportunities for further growth and strengthening of our competitiveness into our Group risk management, which is carried out twice a year. Especially with regard to climate change, water and forests, we carry out scenario analyses as part of CDP reporting in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). As part of CDP reporting, the Sustainability Board assesses opportunities and risks and thus the resilience of our business activities over a period of more than six years (see also Management approach to GRI 201-2). For further information on climate-related reporting at Symrise, please refer to the TCFD Index – with references to detailed information on the topic in the CDP Climate Change Questionnaire of Symrise.

GROWTH

In addition, we view our sustainability efforts and transparent communications as a opportunity to inform our stakeholders, as well as to ensure the growth of Symrise and generate a competitive advantage. In addition to increasing regulatory developments (e.g. in the areas of climate or human rights), the key influencing factors are above all the increasing requirements of consumers and our customers to develop solutions for sustainable and healthier products, as well as investment decisions by the capital market, which are increasingly dependent on the sustainability performance of companies.

We regard the preservation of biodiversity as an important foundation for the growth of our business. Biological diversity is the basis for safe nutrition, while enabling and promoting good taste as well as health and well-being. As a result, it is at the core of our business model and is crucial to our growth opportunities (see also Management approach to GRI 304). Health is also an important growth factor, not least due to the coronavirus pandemic and customer and consumer need for safety and health. This creates a trend towards increasing demand for national products, alternative proteins and natural foods – needs that Symrise is increasingly serving with its latest product innovations.

At the same time, our sustainability efforts help minimize risks that could jeopardize our growth. In particular, this involves risks that could arise from our globally networked supply chain. Specifically, a shortfall in the supply of important raw materials could occur as a result of the consequences of climate change or natural catastrophes. On the other hand, if risks to the reputation of our suppliers emerge from the potential disregard for environmental or social standards as well as human rights due diligence, this could have an impact on Symrise. Through our sustainable supplier management, we ensure that these risks are minimized (see also Management approach to GRI 204, GRI 308 and GRI 414).

EFFICIENCY

In the further development of our sustainability management, we see significant opportunities to improve the efficiency of our business activities, while simultaneously reducing possible negative effects on humans and the environment. For example, energy costs have a material influence on our profitability and therefore our competitive position. Furthermore, we meet customer expectations and can create added value by helping our customers achieve their greenhouse gas (GHG) emissions reduction target (see also Management approach to GRI 302 and GRI 305). Our German sites in Holzminden and the Symotion site in Hamburg are certified according to the ISO 50001 energy management system. Energy audits according to the regulations of the Energy Efficiency Directive (EED) were performed at almost all other European sites. Thanks to the support of our TPM teams, most of our other production sites have also been certified to environmental management system standards (ISO 14001). The teams regularly analyze manufacturing processes looking for opportunities to save energy or to increase process efficiency in a sustainable manner.

Increasing eco-efficiency in the area of waste and wastewater is another area in which we combine the reduction of our ecological footprint with efficiency gains for Symrise. With the continuous reduction in chemical oxygen demand in our wastewater, we not only mitigate the expense that arises with the cleaning of our wastewater in municipal sewage treatment plants, but also avoid process losses in production at Symrise (see also [reference] Management approach to GRI 303 and GRI 306).

With regard to our employees, our efforts to ensure a safe and healthy workplace aim to reduce illness-related absences and to increase employee motivation. This contributes to prevent potential economic risks that may arise from a high accident and illness rate. We developed the Symsafe project in 2021 with our subsidiary Tesium to improve occupational health and safety performance. The focus is on a sustainable safety culture. For more information on Symsafe and on the goals, measures, and key performance indicators in the area of occupational health and safety, see also Management approach to GRI 403.

PRODUCT PORTFOLIO

With the steadily growing demand for sustainable products, the growth opportunities Symrise seeks by focusing on innovative and sustainable products also improve.

Sustainability itself is a strong driver of innovation: By complying with strict sustainability criteria in product development, we maximize the social and ecological added value of products and create value for customers and stakeholders. The Product Sustainability Scorecard System we have created makes an important contribution to the development of innovative and sustainable product solutions. The externally audited process makes it possible to recognize the environmental impacts of raw materials and products and to compile them in a scientifically sound analysis. The ten sustainability criteria include traceability, water consumption, the impact on biodiversity in the supply chain as well as the product’s biodegradability. The “Green Chemistry Principles” and the Planetary Boundaries are taken into account. As a result, we can transparently present the respective sustainability advantages of the products relative to conventional alternatives for our customers.

We develop our products not only in Germany but also in the regions where they are sold. The different market requirements we address with this approach also present us with challenges. For example, key sustainability topics and consumer preferences differ from region to region. Therefore, our segments consistently set different priorities for each region in order to offer tailored product solutions.

We have set ourselves ambitious goals and enacted corresponding measures for the continual integration of business and sustainability. We will only achieve sustainable growth if we implement our economic efforts in a proactive and responsible way. Our economic ambitions are therefore supported with our integrated corporate strategy of goals and measures in keeping with the four pillars of our sustainability agenda.

EXTERNAL EVALUATIONS

Our commitment to sustainability is paying off and is also viewed positively by external bodies.

In its regular review of the sustainability performance of Symrise, the internationally rating agency ISS ESG confirmed our company’s prime status. In the scope of our last valuation in 2022, Symrise improved from C+ to B–, placing it among the top 10 % of companies in its sector. The ESG rating from ISS – E for environmental, S for social, G for governance – covers nearly 10,000 companies globally, the majority of which are listed.

The US-based company MSCI is a leading sustainability rating agency and provider of highly respected sustainability share indices. Since 2015, MSCI has ranked Symrise in the A category, which attests to its above-average sustainability performance. MSCI highlights in its analysis, that Symrise has developed and established above-average good strategies and practices, particularly for climate protection and corporate governance.

The international rating agency SUSTAINALYTICS continuously analyzes and evaluates companies’ risks in the areas of ESG. A number of financial service providers and institutional investors across Europe use the services of the agency as a basis for decisions related to investment and credit. In the chemical sector, the risk profile of Symrise at the time of valuation was ranked 25th out of 540 companies: 24 companies had a lower ESG risk, while 514 had a higher ESG risk.

Symrise is also still listed in the FTSE4Good sustainability index. The FTSE4Good includes the securities of companies that achieve outstanding results in the areas of the environment, social aspects and corporate governance.

Having awarded Symrise seven gold medals in 2022, the rating agency EcoVadis conferred platinum status on the company for the first time in recognition of its track record on sustainability. EcoVadis assesses companies worldwide in the four areas of environment, social aspects, ethics and sustainability in the supply chain. Symrise belongs to the top 1 % of all companies in the chemical sector.

In 2022, we exceeded the average values of our chemicals & pharmaceuticals sector in the “Purpose Readiness Index” with a score of 67.9 and reached a good 24th place out of a total of 112 assessed companies. We’re proud of this, and it encourages us to intensify our sustainable activities.

Additionally, for the third time Symrise received the highest A rating in the CDP (formerly Carbon Disclosure Project) rating in all three categories climate, water protection and forest protection in 2022. Symrise is therefore one of only 13 companies worldwide on what is known as the triple A list.

Foreword by the Executive Board

Dear readers
and friends of Symrise,

We first published our regularly updated sustainability strategy 13 years ago and have since demonstrated that we can operate both sustainably and profitably. In fact, we managed to increase sales in 2022 for the 17th year in a row. But just as important as our current situation is the need to keep our sights set on the future. It’s essential to protect and preserve the foundation of our business, which is dependent on nature and its biodiversity. Our goals are clear: we plan to be climate-positive by 2030. In this way we will play our part in ensuring sustainable business while actively supporting the principles of responsible management in the United Nations Global Compact.

A basic element in this is the circular economy, which is also the focus of our stories in this year’s edition of our Corporate Report. We have always made an effort to utilize 100 % of our raw materials in various ways. We also use byproducts, which are value-adding materials sourced from many processes that would otherwise be disposed of, including the oils from the peels left over from orange juice production as well as byproducts of the paper industry, from which we produce fragrance ingredients. We also process eggs that are unsuitable for human consumption into important components for pet food.

This sustainable approach, which is applied to all processes, has entailed diversification of our business model in recent years, enabling us better to withstand crises. By 2028, we plan to achieve half of our sales in business units that don’t belong to our traditional flavor and fragrance portfolio. In addition, we continue to rely on our extensive regional presence and customer base, which is allowing us to respond effectively to the major challenges of the day. Despite the war in Ukraine, raw material scarcity, delayed supply chains, a drastic increase in energy costs and high inflation that has curbed consumption, we once again achieved an EBITDA margin of 20 %.

Our individual business units have performed very well in the highly volatile market environment. The demand for pet food has increased significantly once again, resulting in healthy, two-digit growth in our Pet Food division. As a result, we’re expanding our capacities in China, North America, Brazil and France and, with the acquisition of Schaffelaarbos and Wing Pet Food, have ensured even more diversity and depth in the portfolio. The Taste, Nutrition & Health segment, to which pet food belongs, has also experienced healthy growth, due in part to the fact that sales have increased, for example, in the Food & Beverage division. People are doing more in their free time and eating out more often.

We’ve also significantly consolidated our range in the Scent & Care segment with the acquisition of companies Groupe Néroli and SFA Romani in southern France. The approximately 300 employees will be working closely with our Maison Lautier brand and our other fragrance experts, allowing us to leverage many synergies here. In recent years, sales have increased drastically in this and the Cosmetic Ingredients division.

There’s also important news regarding our Executive Board, which gained two new members as of the key date January 31, 2023. The reason for the move is that as a fast-growing Group, we need to optimize distribution of our resources across the board in order to fulfill our many future responsibilities to the best of our ability. Jörn Andreas, who until recently was in charge of the Cosmetic Ingredients division at Symrise, will take over the Scent & Care segment, which was temporarily managed by Chief Executive Officer Dr. Heinz-Jürgen Bertram. Jörn Andreas has held many management positions at Symrise and overseen numerous mergers and acquisitions as well as strategic initiatives. Experienced manager Dr. Stephanie Cossmann will head up the newly created Human Resources and Legal department. Previously, she was a member of the Board of Management and Head of HR at Lanxess AG. Working with them and all of our employees who develop our sustainable, safe and customized products, we will continue to ensure quality of life, beauty and well-being. We will also consolidate our close partnerships with all of our company’s other stakeholders. Read about how we plan to do just that in many areas of our Corporate Report 2022.

The Executive Board of Symrise AG

In guidelines and initiatives like the UN Global Compact, the Precautionary Principle is cited as a guiding principle for risk prevention. The risk management system at Symrise is based on generally recognized standards (ISO 31000) and extends across all Group companies and business divisions. The Precautionary Principle is particularly important when it comes to managing the local impacts of our business activities. Our integrated management system is based on international standards in the area of quality management (ISO 9001), the environment (ISO 14001), occupational health and safety (ISO 45001), 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 that promote continuous improvement in performance.

Having closely examined the company’s internal processes, independent auditors found that research and development as well as production and sales are characterized by environmentally conscious operations. In this way, Symrise fulfills the international requirements of the Global Conformance Program for environmental management.

In the reporting year, Symrise achieved another impressive CDP (formerly Carbon Disclosure Project) rating while building on its “Leadership” accolades of recent years: the company achieved the highest "A" rating in all three categories climate, water and forest protection. This makes Symrise one of only 13 companies worldwide on the Triple A list. Since 2016, Symrise has held the top CDP rating in the areas of climate change, water protection and forest conservation.

We started the CDP Supply Chain Program in 2017 to work with our suppliers on a more sustainable value chain. Our suppliers with the highest risk status on climate, water and forests were again requested to follow the CDP Supply Chain Program in 2022. Strategic suppliers, in particular, are eligible for the program. In all three areas – climate change, water and forest – the response rate decreased compared to the previous year (for more information on the results, see also Management approaches to GRI 302, GRI 303, GRI 304 and GRI 305).

As of 2030, Symrise is committed to being climate-positive at all its global production sites based on the Scope 1+2 emissions of the GHG Protocol. In 2021, in order to achieve its targets, Symrise devised a new Science Based Target aimed at a maximum global warming of 1.5°C, the highest possible level of aspiration at present. This target was validated by the SBTi in February 2022: by 2028, we aim to cut THG emissions (Scope 1+2) by 80 % compared to the 2020 level. By 2025, we also want to increase the eco-efficiency of THG emissions by more than 60 % on the 2016 level. In the reporting year, we were able to increase the eco-efficiency of GHG emissions (Scope 1+2), based on added value, by 10.4 % (2021: 11.3 %), thereby achieving our interim goal for 2022.

Symrise has also committed to reducing its Scope 3 emissions from purchased goods and services by 30 % on the 2020 value by 2030. This value is also a Science Based Target that corresponds to the highest possible level of aspiration at present and was also validated by the SBTi in February 2022. In the long term, Symrise is aiming to achieve net zero by 2045 (Scope 1+2+3). We also want to increase the eco-efficiency of Scope 3 emissions by 15 % on the 2020 level by 2025. Between 2016 and 2022, we succeeded in cutting Scope 3 emissions by about 40 %.

In 2022, Symrise received the Sustainability Heroes Award (formerly the DQS German Excellence Award) for the third time in succession. This time, the award was conferred in the Biodiversity category. Working with stakeholders from business, science and society, Symrise is committed to transforming supply chains into ecologically and socially compatible value creation networks that protect and sustainably utilize biodiversity, while allowing local communities in the regions of origin of the raw materials to benefit fairly from the company’s success.

Having awarded Symrise seven gold medals in 2022, the rating agency EcoVadis conferred platinum status on the company for the first time in recognition of its track record on sustainability. With its SBTi emission reduction targets and its involvement in numerous initiatives, Symrise takes a pioneering role in climate protection in the fragrance ingredient and flavor industry and acts according to the resolutions of past UN climate conferences and the recommendations of the current IPCC (see also GRI 201-2).

ETHICS AND INTEGRITY

Symrise devised its corporate purpose in 2021. It reads:

“We develop sustainable, safe, made-to-measure products that enhance quality of life, beauty and well-being. We are aware of our responsibility to a future-oriented world, and we meet this challenge with entrepreneurial spirit, innovative power and optimism.

Symrise – always inspiring more ...”

Our purpose is derived from the integrated corporate strategy and leads to our corporate values (sharing values). For derivation and background information, see the Corporate Report 2022 p. 24ff..

Sharing Values, Purpose and Corporate Strategy at a glance

Our Code of Conduct applies to all Symrise companies. The Executive Board, Supervisory Board and all national and international Symrise employees in Germany and abroad, i.e. all senior executive and all employees, whether full-time or part-time, and contractors, must comply with it. Each employee receives the Code of Conduct on their first day of employment. Mandatory training on the content of the Code of Conduct must be undertaken regularly in e-learning format (see also GRI 205-2). Through the Code, we have established a fundamental and widely visible principle for uniform and exemplary action and behavior. Our Code of Conduct defines minimum standards and sets out behavior enabling all Symrise employees to cooperate in meeting these standards. The Code of Conduct helps in overcoming ethical and legal challenges in daily work. It provides concrete guidance for any conflict situations. In the interest of all employees and the Group, possible non-compliance with standards will be investigated and addressed, and the causes will be remedied. This means that misconduct will be consistently prosecuted in accordance with local laws.

Our Code of Conduct provides the framework for interactions with our key stakeholders: employees and colleagues, customers and suppliers, shareholders and investors, neighbors and society, national and local governments as well as government agencies, the media and the public.

The Code of Conduct is based on our values and principles. By following the Code, we guarantee that every person is treated fairly and with respect, while ensuring that our behavior and business activities remain transparent, honest and consistent throughout the world.

The stated aim of Symrise is to source all materials and services on the basis of sustainable criteria by 2025, based on 90 % of our procurement volume. We will evaluate all our suppliers (direct and indirect) according to environmental and social sustainability criteria to promote and protect human rights along our supply chains. Our expectations are described in detail in our guidelines on responsible sourcing as was published in June 2022, which also serve as a Code of Conduct for suppliers. Since publication, the Code has been rolled out in stages to our suppliers and business partners.

At the highest management level, the CEO of Symrise is responsible for committing to and compliance with corporate responsibility principles.

As a signatory of the United Nations Global Compact, Symrise is expressly committed to the United Nations International Charter of Human Rights, the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights (collectively known as the International Bill of Human Rights). We support the UN Guiding Principles on Business and Human Rights (protect, respect and remedy). Our commitment applies to our own employees and to the upholding of human rights across the entire value chain, which includes suppliers, business partners, customers, consumers and local communities. Published in 2022, our guideline on human rights and our declaration on slavery and human trafficking reaffirm this commitment.

The United Nations Guiding Principles on Business and Human Rights, and their national implementation in the German government’s National Action Plan for Business and Human Rights (NAP), explicitly emphasize corporate responsibility. Symrise expressly supports the drafting of a national supply chain law and continues to support ongoing legislative processes at European level. From 2023 onward, the Supply Chain Due Diligence Act (LkSG), which was passed by the German Bundestag in 2021, will legally require some of the companies based in Germany, including Symrise, to perform responsible supply chain management. This is because the actions of companies can also have unintended negative effects on human rights. This applies above all to globally operating corporations with complex supply chains. Particularly threatened by human rights violations in supply chains are those population groups who are already marginalized in their respective countries and are therefore exposed to higher risk, such as children, women and religious or ethnic minorities. At the same time, a precarious human rights situation also weakens companies since their success depends on a stable and predictable environment.

Within the framework of SDG 8, humane working conditions are emphasized as the prerequisite for sustainable and inclusive economic growth. Our materiality analysis conducted in 2022 underscores the importance of “procurement and human rights” via a high rating, especially for our external stakeholders. This topic continued to gain importance at regular investor and customer meetings during the reporting year, especially because of the adopted German LkSG and the developments toward a supply chain law (Corporate Sustainability Due Diligence Directive) at the EU level.

At Symrise, the Executive Board is responsible for the issue of human rights. In 2022, the company established the role of Human Rights Officer within Corporate Sustainability. The incumbent reports directly to the CSO. Corporate Sustainability provides the Executive Board with information on the company’s human rights status, supply chains and any risks to human rights identified. In 2021, in order to meet its due diligence obligations, Symrise set up a Responsible Sourcing Steering Committee (RSSC) made up of representatives of the segments plus Corporate Sustainability. The Committee defines the strategy and procedures for implementation (see also Management approach to GRI 204).

In our own operations, the rights arising from principles, conventions and declarations are laid down and summarized in the Symrise Code of Conduct, which is binding on all employees of Symrise AG and its Group companies at home and abroad. In the process of implementation, each Group company must also take account of national law. This is because certain countries may have stricter or more comprehensive laws and rules than those described in the Code of Conduct. In such cases, we expect the regulation offering the greatest rights protection to be applied. The requirements are implemented worldwide in our Integrated Management System (IMS), which is based on the requirements of the Standards Social Accountability 8000 (SA 8000), which are binding across the Group.

The risk management system at Symrise is based on a framework of generally recognized standards and extends across the Symrise Group’s companies and business units. Risk assessment is coordinated at the Group level. A Group risk report is passed on to the Executive Board and Supervisory Board twice a year, where potential risks and opportunities are identified and classified according to their effect on profit (net method) as well as the probability of their occurrence. An efficacy test of the risk report is performed during internal corporate audits. In addition, the risks and opportunities of all segments are discussed within the Sustainability Board and measures are taken as necessary.

From 2023, Symrise will be affected by the Supply Chain Due Diligence Act (LkSG). To implement its own due diligence, the company set up the Responsible Sourcing Steering Committee (RSSC) (Management approach to GRI 204). The RSSC is a decision-making body made up of representatives of the segments and the Corporate Sustainability department.The Committee defines the strategy for observing due diligence along with procedures for implementation. Operational implementation and the monitoring and tracking of defined measures with suppliers is carried out in the purchasing divisions. The RSSC is building on a solid foundation: we have been working for several years to ensure that suppliers comply with our sustainability standards through systematic supplier management. The aim of the RSSC is to establish a coherent, sustainable and continually evolving management system for responsible procurement – a system that meets the expectations and requirements of our stakeholders, makes the supply chains of Symrise robust and safeguards human rights. Working groups are defining specific measures with timelines and KPIs – thereby incorporating the SEDEX, EcoVadis and AIM progress recommendations and laying the foundations of a roadmap for the years ahead. The strategic elements that the RSSC developed in 2021 and published at the beginning of 2022 include the introduction of our human rights guideline, which also contains a complaints mechanism for suppliers and their staff as well as other business partners. Our Code of Conduct for suppliers (Responsible Sourcing Policy and Supplier Code of Conduct) explicitly sets out what we expect of suppliers. One key task of the RSSC involves integrating sustainability aspects into the qualification, evaluation and development of suppliers.

Before a new supplier is accepted as a business partner, we ask the supplier to confirm receipt and pledge to comply with the provisions of the Symrise Supplier Code of Conduct.

Supplier Ethical Data Exchange (SEDEX) and EcoVadis, the international supplier screening platforms, are valuable tools for assessing and identifying potentially inherent and concrete sustainability risks. The results of evaluations feed into internal decision-making processes. In this way, we effectively prevent any possible negative impact on human rights. In the event that a specific adverse effect on human rights is established, we expect our suppliers to take suitable remedial measures.

Since 2012, we have asked our most important suppliers to register with SEDEX and disclose their data. In 2020, we also started to include suppliers on the EcoVadis platform. In this way, we leverage the benefits of both platforms to identify risks and opportunities for our suppliers. Alternatively, agricultural production suppliers can indicate their FSA rating – we require at least FSA standard in silver or similar certification. The FSA seal (Farm Sustainability Assessment) stands for sustainably produced raw materials and is awarded by the non-profit organization SAI (Sustainable Agriculture Initiative). Furthermore, since 2014, many suppliers of natural substances – which are strategically important to Symrise – have been evaluated through the Union for Ethical Biotrade (UEBT). This ensures the ethical procurement of products sourced.

We carry out audits for suppliers that pose an especially notable risk (as defined by SEDEX and EcoVadis) , such as suppliers that have crucial raw materials or have had problems flagged in the assessment. Suppliers from whom we require certification by specific audit companies such as UEBT, SAI or FSC are also visited on site if high risks are present. Suppliers with medium and low risks are subject to regular assessment by SEDEX and/or EcoVadis or by audit companies such as UEBT, SAI and FSC. In the reporting year, 138 supplier audits were performed by trained and experienced internal supplier audit teams. Additionally, we ask at least 50 suppliers annually to carry out SEDEX/SMETA audits by verified, independent audit agencies. SEDEX also sends us around 200 unsolicited SMETA audit reports from our suppliers. We can track the implementation of identified corrective actions from the audits through to verification in the SEDEX database.

The current SEDEX risk report shows that the data basis of some suppliers is not sufficient for a risk assessment. Among the supplier sites assessed, 86 % have low to medium sustainability risks. The suppliers with the highest risks are located in Mexico, China, India, Indonesia and Brazil. Risks were most often ascertained in the areas of occupational health and safety, inadequate management systems, and labor rights.

Since 2021, Symrise also assesses suppliers on the EcoVadis platform. With an average valuation of 57 % across the valuation categories, the suppliers associated with us are significantly above the EcoVadis overall average (44.9 %). Compared to the previous year, 90 % of our suppliers were reassessed and 70 % achieved an improvement over the previous year.

Symrise will continue to focus on active suppliers in order to improve the data basis on existing risks. Symrise will cooperate more closely with suppliers who exhibit high risks in order to achieve further improvements. Our main emphasis is on the area of human rights and environmental risks. With regard to the German Supply Chain Due Diligence Act, we have started to identify the risks of all our suppliers, which we will report in detail in the coming year. With regard to the German Supply Chain Due Diligence Act, we have started to identify the risks of all our suppliers, which we will report on in detail in the coming year.

Information on the current SEDEX risk report on child labor and forced labor in the supply chain can be found under GRI 408-1 and GRI 409-1.

However, human rights or environmental risks can also arise in our own division. To identify and reduce these risks, all Symrise Legacy* production sites are registered on the SEDEX platform and have been externally audited every three years since 2010 based on the SEDEX/SMETA 4 Pillar Standard. In the reporting year, to prepare for the LkSG, we started registering all other Symrise sites** on the SEDEX platform, setting ourselves the aim of performing SMETA audits at all sites by the end of 2023. At present, 71 % of all sites are SMETA-certified. In the reporting year, sites in Argentina, Egypt, Brazil, China, Germany, India, Columbia, Madagascar, Mexico, Russia, Singapore, Spain, South Africa, the United Kingdom and the United States were audited by external auditors. To date, no human rights violations have been identified in the course of audits at any of the sites.

The current SEDEX risk report summarizes the findings from the data provided by the sites on the platform and the audits. It shows that the data basis of some sites is not sufficient for a risk assessment and that almost 90 % of the assessed sites show low to medium sustainability risks. Risks were most frequently identified in the areas of water scarcity, freedom of association, waste and pollution, working hours and occupational health and safety. Symrise aims to improve the data basis and review measures that can be implemented on a site and country-specific basis to mitigate the identified risks. No significant deviations from specifications were identified in the audits. All identified deviations and potential improvements were promptly implemented at the respective sites and verified in a follow-up audit as necessary.

In addition, several customers commissioned independent certification organizations to audit selected Symrise sites according to their own standards on social aspects.

In addition to the requirements of their positions, new Symrise employees are given comprehensive training on the fundamental principles of our Code of Conduct when they join the company. All employees then take part in rolling training courses based on predefined schedules. Depending on whether they are basic, refresher or specialized training courses, these schedules cover a period of between one and three years.

To ensure that all compliance requirements are consistently met, the need for training is regularly determined, and appropriate training courses are implemented. In 2022, four training courses were held on the topics of “Protecting Intellectual Property: The New Hire Training”, “Data Protection and Privacy: Know Your Risk Training”, “The Symrise Code of Conduct: Module 2 Training” and “Global Competition: Our Responsibilities Training” Participation in the training courses is mandatory for employees who have a connection to these topics as a result of their work. In the reporting year, more than 4,600 employees took part in each of these training courses (2021: 5,500). The employees who participated in 2022 received intensive training in compliance topics. These training courses also contain repeated references to our Code of Conduct, enforcing our binding principles. As part of the training sessions, participants are made aware of the complaints mechanism (including the Symrise Integrity Hotline) in the event of violations of the Code of Conduct (see GRI 2-26).

Since 2019, some of our employees have also received compliance training on topics such as conflicts of interest, anti-corruption, financial crime, legal requirements in international trade, protection of confidential corporate information, and secure data processing and removal. The target group for this training comprises employees from Purchasing, Finance, Sales and Management.

All investment agreements and contracts include clauses on human rights. We make it very clear in our investment agreements and contracts that partner firms must uphold the regulations and rules on occupational health and safety, guidelines for the reduction of environmental impact and rules regarding hygiene. We also refer to the guidelines for minimum wage, which apply to subcontractors as well. Our human rights guideline includes a complaints mechanism for suppliers and their staff as well as other business partners. Our Code of Conduct for suppliers explicitly sets out what we expect of suppliers, including service providers and, in particular, suppliers of raw materials. Before a new supplier is accepted as a business partner, we ask the supplier to confirm receipt and pledge to comply with the provisions of the Symrise Supplier Code of Conduct.

* Symrise Legacy includes all Symrise plants except for the sites of the former Nutrition segment.

** Some of the missing sites will not be registered separately in the future, as they are branches of other sites or only a few employees work there (20 or fewer).

For violations of our Code of Conduct, our employees can anonymously and confidentially contact the relevant Compliance Officer at their location or our Integrity Hotline (for more on the complaints mechanism, see GRI 2-26).

Symrise has also set up an internal complaints mechanism for external stakeholders and rights holders with a view to reporting problems and providing remedies. The complaints mechanism will be available from 2023 onward. Symrise will also abide by any national grievance mechanisms or laws, and work with the relevant authorities where needed, to address any grievances of relevance to Symrise that may arise. External informants can contact the Symrise Human Rights Officer directly via Sustainability.Office@symrise.com.

As is described in our Code of Conduct, various points of contact exist for our employees when it comes to voicing questions or concerns regarding ethical and legal behavior as well as integrity-related concerns. Employees can turn to their superiors in the first instance. If an employee cannot talk to their superior about their concern, for example, because this person is also affected, the employee can discuss the issue with an HR officer, the works council or the next highest superior, or with employees of the legal department. Our employees can also contact the responsible Compliance Officer at their site anonymously and confidentially. The Integrity Hotline set up by the Group Compliance office ensures that Symrise employees can anonymously report violations of both legal regulations and internal company guidelines from anywhere in the world. The Group Compliance office can be reached by all employees via a dedicated toll-free telephone number. An intermediary service operator ensures that employees can retain anonymity and communicate in their native language.

They receive a unique individual incident number that enables them to call the hotline back later and listen to the answer left for them by the Group Compliance office. This procedure can be repeated and continued as desired, thus enabling communication between the Group Compliance office and the person providing the information while preserving the latter’s anonymity. At the same time, targeted queries can prevent abuses and denunciations by other employees and additional information can be requested. In addition, employees are able to contact Group Compliance office staff anonymously via the online Symrise Integrity Hotline service. Here they can submit messages in writing and upload any documents electronically.

As a result, it is not absolutely necessary to communicate with the Group Compliance office over the phone. Of course, all employees can also contact the Group Compliance office directly and personally at any time.

Symrise has also set up an internal complaints mechanism for external stakeholders and rights holders with a view to reporting problems and providing remedies. The complaints mechanism will be available from 2023 onward. Symrise will also abide by any national grievance mechanisms or laws, and work with the relevant authorities where needed, to address any grievances of relevance to Symrise that may arise. External informants can contact the Symrise Human Rights Officer directly via Sustainability.Office@symrise.com.

Integrity together with lawful and compliant behavior are the basis of sustainable success for companies. Violations can result in personal liability and reputational damage for the company, as well as negative effects for business partners and suppliers through price agreements and market imbalances.

Our binding principles are laid out in our Code of Conduct, which guides the actions of all employees. The principles apply to all countries. The Code of Conduct not only regulates behavior toward key Symrise partners, but also ensures transparent and reliable processes. It also references ethical and legal challenges that can arise in the workplace, as part of business relationships or when handling information. In the interest of all employees and the company, we react swiftly to violations against our Code of Conduct and rectify their causes. In the event that our ethical and legal standards are breached, the Group Compliance Office has installed an Integrity Hotline that can be used by all Symrise employees worldwide to report anonymously and in their native language any breaches of legal regulations or internal company guidelines. Misconduct is consistently prosecuted in accordance with the applicable national laws.

In the annual reviews of the Integrated Management System, all breaches of applicable laws are summarized for senior management. Appropriate measures are introduced in order to avoid any reoccurrence.

Symrise was not charged any significant fines or non-monetary penalties for failure to adhere to laws and regulations in the reporting year.

On average, one suspected violation per month was reported to the Compliance Office via the Integrity Hotline worldwide. In all cases, investigations were initiated and corrective measures were applied on a case-by-case basis pursuant to the applicable legal system and Group-internal regulations.

Symrise wants to increase the value and sustainability of its business activities over the long term. With this in mind, we have made further commitments to additional standards beyond the numerous existing requirements for the fragrance and flavor industry, and we work actively on their development. Our managers in the areas of Sustainability, Regulatory Affairs and R&D represent Symrise in the world’s largest associations for the fragrance, flavor and cosmetics industries. In addition, Symrise is a member of two organizations that promote alternatives to animal testing: European Partnership for Alternative Approaches to Animal Testing (EPAA) and Animal-Free Safety Assessment Collaboration (AFSA).

Symrise is involved in the following expert groups:

International Fragrance Association (IFRA):

• Joint Advisory Group
• Inhalation Task Force
• Dermal Sensitization Task Force
• Chemical Control Legislation Task Force
• Analytical Working Group
• ETF
• NCS Task Force
• CITES Task Force
• CMR Working Group
• Furocoumarin Working Group

IFRA EU:

• REACH Task Force
• GMES Working Group
• Fragrance Encapsulation Working Group
• AISE sub-group of biodegradability experts

IFRA APAC:

• China Working Group
• Technical Committee
• Korea Working Group

IFRA LATAM:

• CAFEPA
• ABIFRA
• ACHISAF
• ANFPA
• ANDI

IFRA-IOFI:

• Sustainability Committee
• Nagoya Protocol
• Sustainability Task Force

International Organization of the Flavor Industry (IOFI):

• Regulatory Advisory and Advocacy Committee (RAAC)
• Science Board
• Communications Board
• Working Group on Methods of Analysis

IOFI APAC:

• CAFFCI
• JFFMA
• FSSANZ
• THAI Flavor Association
• KFFA
• FFAS

European Flavour Association (EFFA):

• DVAI
• SNIAA
• Federchimica
• A.E.F.A.A.
• UK Flavor Association
• Aromsa

In connection with the merger of the Flavor and Nutrition segments to form the Taste, Nutrition & Health segment, the former Nutrition segment will remain a member of the following organizations:

• Marine Ingredients Organization (IFFO)
• Natural Food Colors Association (NATCOL)
• Fédération des Industries Avicoles (FIA)
• Syndicat National des Compléments Alimentaires (SYNADIET)
• Syndicat National des Ingrédients Aromatiques Alimentaires (SNIAA)
• Union National Interprofes Jus de Fruits (UNIJUS)
• Fédération Européenne des Fabricants d'Aliments pour la Nutrition Animale (FEFANA)
• Fédération des Fabricants d’Aliments pour Chiens, Chats, Oiseaux et autres animaux familiers (FACCO)
• Pet Food Association of Canada (PFAC) in Canada
• The Pet Food Industry Association of Australia (PFIAA)
• Entreprises Françaises de Charcuterie Traiteur (FICT)
• Chilealimentos
• Associação Brasiliera da Indústria e Comércio de Ingredientes e Aditivos par Alimentos (ABIAM)
• Juice Product Association
• American Botanical Council

Since November 2020, Symrise has also been a member of Klimaschutz-Unternehmen e.V., an association comprising a national and cross-sector network of companies of all magnitudes with a view to promoting climate protection. Its members are committed to energy efficiency and resource conservation.

Also in 2022, Symrise enrolled in the lobby register to represent its interests in respect of the German Bundestag and the Federal Government. The main aim behind this step was to encourage the expansion of renewable energies while presenting companies with options for decarbonizing their production operations.

Symrise also signed up to the Renewable Carbon Initiative in 2022.

Other initiatives of which we are a member:

• AIM-Progress: This initiative involves consumer goods manufacturers and their suppliers that are committed to sustainability and human rights across the supply chain. This results in joint strategies to make supply chains faster, more efficient and more sustainable.
• Alliance of CEO Climate Leaders: Initiated by the World Economic Forum, the network consists of business people committed to accelerating the transition to a low-carbon and resilient economy. The Chief Executive Officer of Symrise has been part of the initiative since 2020.
• Allianz für Entwicklung und Klima: The multi-stakeholder partnership consists of several hundred companies, associations, public authorities and representatives of civil society. The alliance promotes the voluntary compensation of greenhouse gas (GHG) emissions and is led by the German Federal Ministry for Economic Cooperation and Development (BMZ).
• Business Ambition for 1.5°C: The campaign was launched by the UN Global Compact and the Science Based Targets Initiative, among others, to further promote the adoption of ambitious climate protection targets.
• RE100 Initiative: The initiative advocates that companies source 100 % of their electricity from renewable sources by 2050. As a member, Symrise is required to set its own goals and comply with the initiative’s criteria when selecting renewable electricity sources.
• Roundtable on Sustainable Palm Oil (RSPO): Since 2016, we have only used palm and palm kernel oils from 100 % RSPO “Mass Balance” certified sources. Since we regularly source new primary and secondary palm oil derivatives and therefore eliminate existing certified palm oil derivatives, we work continuously to meet our demand.
• Sustainable Agriculture Initiative (SAI) Platform: The SAI Platform brings together companies committed to sustainable and resilient agriculture and strong supply chains.
• Sustainable Spices Initiative (SSI): Both for Symrise and the SSI, the focus is on the responsible sourcing and cultivation of raw materials. Together with customers, suppliers and NGOs, we want to actively cooperate with the SSI, sharing our knowledge while also gaining new experience.
• Sustainable Vanilla Initiative: Symrise is a founder member of the sustainable vanilla initiative committed to a long-term, stable supply of high-quality natural vanilla produced in a socially, environmentally and economically sustainable manner.
• The French Business Climate Pledge: The initiative invests in research and development in renewable energy, energy efficiency, the use of low-carbon technologies and sustainable agricultural practices.
• Together with Nature: Symrise is committed to the four principles for nature-based solutions of Together with Nature: the reduction of emissions, the protection of biodiversity, socially just behavior (especially with regard to local communities) and ecologically responsible action.
• Union for Ethical Biotrade (UEBT): In the scope of our membership, we are committed to ethical sourcing of our natural raw materials.
• UN Race to Zero & Exponential Roadmap Initiative: We thereby affiliate ourselves with the UN’s global Race to Zero campaign, which seeks to cut emissions in half and move toward net zero by 2030 through exponential climate action and solutions. Participating companies are expected to go beyond reducing their own and their value chain’s emissions by deeply embedding climate protection in their corporate strategy.
• World Business Council for Sustainable Development (WBCSD): Symrise has been a member of the corporate initiative since 2017, which works on the transformation towards a climate-friendly, nature-compatible and fairer economy.
• 10x20x30 Food Loss and Waste Initiative: In the scope of the initiative, ten of the world’s largest food retailers and suppliers joined together with 20 of their key suppliers each to reduce food losses in the supply chain as well as their own companies by 2030.

Symrise is in active dialogue with its stakeholders across the globe. After all, we can only develop the best possible solutions if we know and understand the needs and interests of our most important stakeholder groups. These include customers, employees, shareholders, lenders, neighbors, politicians, non-governmental organizations and business partners. We address the key concerns of our key stakeholders through established processes and clear responsibilities at Symrise, as well as through our reporting.

The selection of stakeholders was based on the recommendations of the AA1000 Stakeholder Engagement Standard, which we used for the first time in 2014 to reassess and evaluate our stakeholder interactions.

A number of internal and external formats and channels enable Symrise to maintain a lively dialogue with its stakeholders. In 2022, we conducted another broad-based materiality analysis. In the process, we discussed the expectations and recommendations of our stakeholders in various surveys and interviews (see also GRI 3-1).

In addition, we receive important input on possible improvements via continual dialogue with our employees, e.g. through regular feedback talks. Our strengths and weaknesses are evaluated as part of regular employee engagement surveys. In the context of the 2022 materiality analysis, Symrise employees worldwide were surveyed in four different languages about their relevant sustainability issues and were able to provide valuable input on priorities and measures.

With the help of the SEDEX platform, we have also maintained close contact with numerous raw material suppliers on ethical, environmental, safety and health topics since 2011. We keep our customers and investors up to date on developments within our company with road shows and innovation days.

We take the concerns of our neighbors at our sites very seriously and keep them informed via informational events and regular neighborhood newsletters. We also have established a 24/7 environmental on-call service.

As well as maintaining a regular exchange of information with non-governmental organizations, we have also entered into strategic partnerships on specific topics (including biodiversity) with such organizations as the GIZ, Rainforest Alliance and UEBT in order to generate sustainable value for society and the environment. The expectations our stakeholders have shared with us via these interactions inspire us and form the basis for our work.

A clear commitment to freedom of association and the right to membership of a labor union are a matter of course for us. For this reason, our local sites establish the legally required collective employee representation. In addition, we apply the respective local wage agreements at all sites where this is standard practice, both from a legal and HR policy standpoint.

Globally, 60 % (2021: 60 %) of our workforce is covered by collective bargaining agreements, with around 85 % (2020: 85 %) of the workforce in Germany covered by active and retroactive collective bargaining agreements. Our non-collective bargaining employees excluding executives and senior management (14 % of the German workforce, approximately 12 % in 2021) are treated in the same way as our collective bargaining employees when it comes to wage increases.

Strong economic performance is a key prerequisite for our future viability for ourselves, our customers and our investors. It enables us to make investments in new technologies and growth markets as well as in a wide variety of sustainability projects – ranging from the expansion of our approach to responsible sourcing to innovative and sustainable project solutions. Over recent years, we substantially expanded our competencies and tapped into new growth fields. Now we must focus on connecting these new application areas with the traditional ones. That is why we are pushing interconnectedness at all levels – between our customers and suppliers, and within the company. We also managed to expand our market position in every region while deepening still further the trust that customers have in us. In the process, we have kept sight of the twin ideals of sustainability and economic success. The importance of this aspect is also clearly underlined by our materiality analysis for 2022: the relevance of “Product innovation and design” to Symrise and our stakeholders is rated highly. At the same time, we bolstered our portfolio, both in terms of content and regions. This has enabled us to cope with the political and economic uncertainties in some countries. Last but not least, we strengthened our innovative abilities through even closer collaboration within the company and with external partners.

We combine commercial success with sustainability by constantly ensuring that every level of the value chain relates back to what we are doing. This starts with the raw materials, which we source from around the world, often from underdeveloped nations. In the case of vanilla, for example, we make sure farmers are paid a fair price for their goods and that environmental aspects are considered in the growing process. We also ensure that absolutely no child labor is involved. For more than a decade, we have been committed to improving education and health care in Madagascar, where our vanilla is grown. We have established production facilities there that meet the environmental standards of the developed world. Our local business activity contributes to the livelihood of nearly 40,000 people. You can find further information about our involvement in the areas where our raw materials are cultivated under GRI 413.

With our products, we create flavor and fragrance experiences that contribute to health and well-being. Our flavors, substances, perfume oils and sensory solutions are often key functional components in our customers’ products. The challenge is to develop products that meet the various demands and expectations of our customer base while generating long-lasting added value for our customers and society as a whole. In the process, we actively support achievement of the goals of sustainable consumption (SDG 12) and climate protection (SDG 13).

The two segments at Symrise each manage their own research and development (R&D) activities due to the varying requirements of their respective markets and customers. At the same time, technologies, processes and findings are made available to all segments in order to achieve synergies. Multiple R&D centers around the world ensure that the regional activities of the segments are optimally supported.

Our R&D strategy aims to connect the individual components of product development, such as market and consumer research, R&D and creation throughout the Group. All research activities take customers, markets and sustainability into consideration. Through the close linkup of R&D with marketing and business units, purchasing and manufacturing, product development, quality assurance and regulatory issues, we check early on to see whether new products and technologies can be implemented and if they are profitable; we also assess their sustainability aspects.

We achieve innovative and sustainable product solutions by focusing on green chemistry, natural raw materials, efficient use of resources in production, progressive technology and intelligent networking. With our Product Sustainability Scorecard, we can record 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 from the alternatives available.

The proportion of natural raw materials in our portfolio has continued to grow in recent years. However, we are not pursuing a complete changeover to natural raw materials, which would have complex social and ecological repercussions in many cases. For one thing, producing synthetic ingredients generally requires less energy and water than growing, harvesting and transporting their natural equivalents. Furthermore, the enhanced use of natural raw materials often results in competition with food production for farmland and endangers the preservation of biodiversity through monocultures. Taking menthol as an example, the synthetic variant (in use at Symrise for over 30 years) has a carbon footprint some ten times lower than the level of menthol derived from natural mint.

A complete description can be found in the 2022 Financial Report:

• Financial Report (overview of the 2022 fiscal year, page 3)
• Financial Report (Consolidated Financial Statements, pages 64ff.)

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, such as those relating to strategy, finance, the supply chain, regulation, innovation, sourcing, compliance, law, etc. are linked to market-related risks such as trade/market, business/commercial and finance. The aim of this process is to identify and measure significant risks to ensure the positive business development of the Symrise Group.

All risks, including climate-related risks, are identified and evaluated at regional level with the help of regional experts. They cover the entire range of climate-related issues (transitional and physical issues). Risks are assessed on a gross risk basis. Gross risk is defined as risk without mitigation controls. The risks are analyzed according to the criteria of EBIT effect and probability.

However, climate change also presents opportunities. Demand for low-emission products can open up new fields of business and encourage the development of technologies and products, thus generating new sales and improving the company’s reputation. Opportunities typically require investments in facilities, R&D or M&A. To make each investment decision, we consider alignment with our business strategy (i.e. the strengthening of our core business) as well as financial performance indicators like ROIs and the impact of our business on sustainability.

Our multidisciplinary, Group-wide 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.

RISK EXAMPLES:

Symrise is confronted with a climate-related market risk. We purchase many water-intensive agricultural commodities such as tomatoes and vanilla. These materials are used to make extracts that can be used to enhance taste and aroma. These agricultural commodities are typically sourced from countries with water scarcity, such as the United States and Madagascar. Rising temperatures in the wake of climate change may lead to crop losses for our suppliers due to water scarcity. The resulting shortage on the market may lead to rising prices and subsequently to increasing operating costs for us. Lower revenue in agricultural production of raw materials such as citrus and vanilla are also related to other climate change-related implications such as floods and hurricanes. Rising prices on our procurement side will lead to a lower EBITDA margin for us.

To assess our climate-related supply chain risk, we measure corresponding price increases that have occurred in the past. Based on this, we estimate possible future price volatilities driven by climate change and add up these potential climate-related cost effects for all relevant agricultural and aquaculture raw materials, multiplying the purchased volumes by an estimated price increase. This leads to an estimate of approximately € 60 million for “raw material costs from climate risk.”

A further example is provided by the physical climate-related risks at our sites in Charleston (South Carolina), Colonels Island (Georgia) and Jacksonville (Florida). These sites are located in a region of the United States that is repeatedly threatened by tropical storms. The storms can cause damage to the plants which can result in repair costs and lost profits due to production outages. Since the Atlantic Ocean is warming due to climate change, both the frequency and intensity of such extreme weather events are increasing. This in turn leads to a higher probability of damage to our plants. If such risks should materialize, Symrise estimates that the potential financial damage would be between € 1.2 million and € 1.6 million. For more details, refer to the CDP Climate Change questionnaire of Symrise.

OPPORTUNITY EXAMPLE:

Customers and consumers are increasingly turning to more climate-friendly products in their purchasing decisions. The climate performance of our products is therefore of high and steadily increasing importance to our key customers, which include the world's leading cosmetics companies. Symrise produces high-quality products in a sustainable way, for example with a comparatively low carbon footprint. Our customers (B2B) are focusing on more climate-friendly ingredients for their products, leading to carbon-intensive products being substituted for low-emission ones. If we perform better than our competitors and manage to provide convincing and transparent information to potential customers about our climate-relevant performance, we expect our market share to grow as a result of increased demand for our lower-emission products, which will also increase our revenue.

In the 2022 fiscal year, customers who explicitly pay attention to climate issues and ask us to participate in the CDP supply chain program accounted for up to 8 % of our sales (corresponding to € 370 million). Accordingly, as part of our assessment of this opportunity in 2022, we expected sales growth of 6 % for climate-sensitive products, though we assumed that we could still increase this figure by 25 percent to 7.5 %. This results in an annual financial impact of € 27.8 million. In the reporting year, this expectation was met with sales growth of 36 % (2021: 8 %).

Since 2018, Symrise has supported the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD). Our climate-related reporting is refined in the TCFD-Index which precedes this report. For a more detailed description of our approach, and details on risks and opportunities, we refer the reader directly to our detailed responses in the CDP Climate Change questionnaire.

For more details, refer to the Financial Report on page 88 and the notes to the Consolidated Financial Statements on pages 116 and 119.

In 2022, Symrise received an approximate total of € 12 million (2021: € 9 million) in subsidies, including in France. For more information, see the Financial Report on page 97.

You can find the details about the setup of Symrise AG shareholders here.

Omissions:

We consider the apportionment of subsidies by country to be confidential information.

We rely on open and honest collaboration with the people who live at our locations. This allows us to operate successfully and to also attract new employees to our company. In a globalized world economy with an internationally competitive environment, market presence that respects local demographic developments is becoming increasingly important to corporate success. Accordingly, materiality analysis carried out in 2022 included “Employee empowerment” and “Diversity and equal opportunity” as key aspects of an attractive employer as well as the impact of these – especially on Symrise itself.

We strive to position ourselves as a preferred employer through our sustainable human resources policy that focuses on employees as well as the relevant local communities (the employer of choice strategy). Our policy is to offer local workers attractive training, career and advancement opportunities, fair and appropriate remuneration and a social welfare policy (see also GRI 202-1).

In 2022, to raise our profile as an employer of choice, we collected data on the perception of Symrise as an employer as part of a global survey of more than 6,000 employees. In 2022, questions covered such issues as employee commitment, Symrise as an employer, corporate culture and organization. The employees surveyed were from four regions and 36 countries, representing all functional areas of the company and speaking 13 languages between them.

The results of the survey revealed that the majority of respondents were satisfied with Symrise as an employer. 88 % of the employees surveyed were convinced they make an important contribution to the success of Symrise, while 66 % said they would recommend Symrise as their preferred employer to people in their circle. In addition, 80 % of those surveyed valued respectful treatment in their workplace, especially by managers, who were trusted by 80 % of respondents. In total, 73 % agreed strongly that they felt happy with Symrise. Equally pleasingly, 75 % of employees surveyed felt empowered to contribute to innovation at Symrise. With 53 % approval in the area of knowledge exchange and skill sharing, the workforce also indicated that there is still work to be done.

Through various recruitment activities at local schools and university job fairs in our extended regional environment, we promote ourselves as an employer and training company and succeed in signing on well-qualified young people.

All of our employees receive wages that are higher than the minimum standard as stipulated by local law or statute.

The wages that employees receive for their work at Symrise in Germany when initially employed are determined by our remuneration tables for employees covered by collective bargaining agreements; workers not governed by collective bargaining agreements receive wages based on our job grade concept. These wages are based on the collective agreements concluded for the chemical industry and are higher than the statutory minimum wages in the individual countries in which we have employees.

In countries in which collective wage agreements have been concluded with the responsible labor unions, Symrise employees are paid based on these agreements according to their personal business unit. In Germany, each initial classification to a tariff wage or subsequent wage increase is subject to review by the works council. Through this double-checking (Human Resources department and Works Council), we make sure that gender plays no role in determining remuneration.

Every year, we conduct analyses at all our major sites to prevent gender-specific disadvantages in remuneration. In addition, to review gender equality in the area of remuneration, an in-depth equal pay analysis was carried out in Germany in 2021. The unadjusted gender pay gap is 1.2 %. In 2021, the non-profit FPI Fair Pay Innovation Lab under the patronage of German Labor Minister Hubertus Heil recognized Symrise for its fair pay with its Universal Fair Pay Analyst certificate. In the course of certification, measures aimed at advancing fair pay at Symrise were devised.

If men are paid more than women in individual collective wage groups, this is because Symrise has almost no women engaged in production, which means women do not benefit from the production-specific components of remuneration. These production-specific components of remuneration, such as hardship allowances and paid washing times or activity-related wages including foremen’s or shift supervisors’ allowances, are thus legitimate causes of different levels of remuneration between men and women. Traditional career models therefore lead to different levels of remuneration.

As a result, overall entry-level remuneration is based on the qualifications of new employees and the functional significance of their activities to our company. Remuneration at all our locations – especially our starting wage – applies equally regardless of gender. This means that the starting wage for a woman is the same as for a man.

We are convinced that we can find well-qualified local employees in any country in which we operate in order to move our business forward. At local level, we trust in country-specific, professional training and expertise. Where international secondments are made, these are for the purpose of know-how transfer and international skills acquisition on the part of our employees.

The vast majority of our employees and managers, including our senior management (first and second management levels, not including the Executive Board), come from the respective country or region of each Symrise location around the world. This means that we recruit employees who were educated in the relevant country and have gained professional experience in the respective region or even internationally. In addition, we want our leadership teams to be international at all levels to reflect broad market experience and regional customer preferences.

The proportion of management staff from local areas is over 80 % (2021: 90 %). Respective national working conditions apply to this group. In addition, we employ expatriates for the primary purpose of ensuring know-how transfer from the central research and development units. In 2022, 110 employees worldwide worked in a different country than their original home country (2021: 116). The relatively low number is based on travel restrictions due to the coronavirus pandemic.

We define senior management as our regional presidents and those managers who lead the respective legal entities in various countries. Our senior management works in the regional head offices: Germany and France for Europe, the United States for North America, Brazil for Latin America and Singapore for Asia.

Effective management of ecological and social effects along the entire supply chain is the key to securing high-quality raw materials, providing sustainable products to our discerning customers and ensuring ethical business practices. Accordingly, the importance of the topic, its relevance and impact on Symrise and its external stakeholders is also reflected in the high to very high rating of “sourcing and human rights” and the adjacent topics of “environmental protection and biodiversity”, “partnerships and communities” and “use of raw materials and the circular economy” in our materiality analysis conducted in 2022.

Our long-term goal is to procure all materials and services on the basis of sustainable criteria in accordance with the Sustainable Development Goals formulated by the United Nations. 2025 is our target for the responsible sourcing of all strategic biological raw materials. In the reporting year, we already sourced 87.6 % of our strategic biological raw materials sustainably (2021: 83.6 %). Due to the high complexity resulting from numerous material flows in our raw materials portfolio, our sites face numerous challenges that must be overcome if we are to achieve our sourcing goals. These challenges include closing information gaps regarding the origin of raw materials as well as providing details that are relevant to the sustainability of production and the processing of raw materials. This information is indispensable in order to analyze performance in the area of sustainability.

At Symrise, the Executive Board is responsible for the issue of human rights. In 2022, the company established the role of Human Rights Officer within Corporate Sustainability. The incumbent reports directly to the CSO. Corporate Sustainability provides the Executive Board with information on the company's human rights status, supply chains and any risks to human rights identified.

Starting in 2023, Symrise will be affected by the German Supply Chain Due Diligence Act (LkSG). In line with the LkSG, the Human Rights Officer reviews risk management and the risk assessments of suppliers, establishes a complaints mechanism and reports annually (as from the 2023 fiscal year) according to BAFA requirements. In 2021, Symrise set up the Responsible Sourcing Steering Committee (RSSC) with a view to realizing its own due diligence and improving responsible sourcing (see also GRI 2-23).

The RSSC is a decision-making body made up of representatives of the segments and the Corporate Sustainability department. The Committee defines the strategy for observing due diligence along with procedures for implementation. Operational implementation and the monitoring and tracking of defined measures with suppliers is carried out in the purchasing divisions. The RSSC is building on a solid foundation: we have been working for several years to ensure that suppliers comply with our sustainability standards through systematic supplier management. The aim of the RSSC is to establish a coherent, sustainable and continually evolving management system for responsible procurement - a system that meets the expectations and requirements of our stakeholders, makes the supply chains of Symrise robust and safeguards human rights.

We require our suppliers to protect human rights in general, to engage in no kind of child or forced labor, and to comply with statutory requirements for safeguarding health and safety in the workplace. Furthermore, we expect our suppliers to allow their employees the right to freedom of association and collective bargaining, to observe the statutory provisions on working times and pay and to make a clear commitment against abuse. Moreover, we do not tolerate discrimination based on gender, ethnic identity, skin color, nationality, age, religion, sexual orientation, disability or any other personal characteristic by our suppliers. Symrise published a Responsible Sourcing Policy and Supplier Code of Conduct in 2022. Before a new supplier is accepted as a business partner, we ask the supplier to confirm receipt and pledge to comply with the provisions of the Symrise Supplier Code of Conduct. Selected suppliers receive training in this policy and are encouraged to implement it in their own processes.

We also require that our suppliers conserve resources, reduce and avoid air emissions, ground emissions and wastewater, commit to the preservation and sustainable use of biological diversity and avoid environmental risks effectively. These aspects constitute part of our Group-wide risk management system.

In this connection, we conduct risk and performance evaluations of suppliers from economic, ecological and social perspectives. In view of the Supply Chain Due Diligence Law, we have expanded the goal for evaluating our suppliers. By 2025, the group of suppliers making up 90 % of our procurement volume will be assessed according to sustainability criteria. We carry out audits for suppliers who pose an especially high risk (as defined by SEDEX and EcoVadis), who have crucial raw materials, or who have had problems flagged during assessment (see also GRI 2-23 and Management approach to GRI 408).

Previously, we screened our key suppliers via the SEDEX platform on the topics of human rights, environment, health and safety, and business integrity; in 2020, we started to include suppliers on the EcoVadis platform. In this way, we leverage the benefits of both platforms to identify risks and opportunities for our suppliers. Alternatively, agricultural production suppliers can indicate their FSA rating; we require at least FSA standard in silver or similar certification. The FSA seal stands for sustainably produced raw materials and is awarded by the non-profit organization Sustainable Agriculture Initiative (SAI).

Symrise has set up an internal complaints mechanism for external stakeholders and rights holders with a view to reporting problems and providing remedies. The complaints mechanism will be available from 2023 onwards. Symrise will also abide by any national grievance mechanisms or laws, and work with the relevant authorities where needed, to address any grievances of relevance to Symrise that may arise. External informants can contact the Symrise Human Rights Officer directly via Sustainability.Office@symrise.com.

We use our internally developed Product Sustainability Scorecard (PSS) to evaluate some of our raw materials and products based on sustainability criteria. Ten dimensions and indicators are applied, including green chemistry principles and planetary boundaries. This scorecard system offers internal and external stakeholders better guidance for decision-making in order to improve sustainability.

One of the principles we rely on to influence sustainability performance more directly along the supply chain is backward integration. With regard to important core competences, we have deliberately chosen locations for our international production facilities where the raw materials primarily used are available locally. As well as purchasing our raw materials locally, we are integrated in the local economy, producing and creating value on site. This approach enables us to support local socioeconomic structures and improve compliance with our ethical and environmental principles. One example is our sourcing in Brazil under the Amazon Program in partnership with Natura and GIZ: our supply chains under the program are traceable and we have already provided support including training to more than 1,200 participating families (for more on the Amazon Program, see Management approach to GRI 413 for more information on procurement practices, see Management approaches to GRI 308, GRI 408, GRI 409 and GRI 414).

Symrise obtains the majority of onions, one of our main raw materials, from farmers who live near the plants where the vegetables are processed. This applies both to Germany and France, where the main production sites are located. Purchasing the onions from the region ensures low transport and energy costs, while simplifying joint development work. To give one example, Symrise set up the “Onion Ring”: working closely with farmers, the Lower Saxony Chamber of Agriculture and the Saxony State Office for the Environment/Agriculture and Geology, we test good agricultural practices with a view to increasing revenue and minimizing losses. We also experiment with different onion varieties to optimize revenue.

Symrise also joined the Roundtable on Sustainable Palm Oil (RSPO) in 2015, since when we have been continuously improving our palm oil supply chain: since 2016, we have only used palm and palm kernel oils from 100 % RSPO “Mass Balance” certified sources.

In 2020, we achieved our goal of sourcing 100 % of certified primary and secondary palm oil derivatives from sustainable sources as well. Since we regularly source new primary and secondary palm oil derivatives and therefore eliminate existing certified palm oil derivatives, we work continuously to meet our demand. In addition, we have converted numerous recipes to palm oil free quality in recent years.

We also enter into sustainable partnerships and participate in a variety of initiatives that promote responsible sourcing practices. Symrise is a member of the Sustainable Spices Initiative (SSI), the Union for Ethical Biotrade (UEBT), the Sustainable Agricultural Initiative (SAI) Platform and the Alliance for Development and Climate. As a founding member, Symrise was also involved in the creation of the Sustainable Vanilla Initiative and the One Planet for Biodiversity Initiative, in cooperation with the World Business Council for Sustainable Development (WBCSD), among others. We are active in the WBCSD's Nature Action initiative and committed to the principles of the Network for Nature multi-stakeholder initiative (for more information on these and other initiatives, see GRI 2-28).

In terms of volume, 85 % (2021: 93.1 %) of goods and services at our sites were sourced from local suppliers during the reporting year. Symrise characterizes suppliers as local suppliers if they come from the same country.

Our Code of Conduct not only applies to our employees but also to our business partners. We obtain written confirmation of compliance with the Code of Conduct from our direct suppliers. As part of our preparations for the LkSG that comes into force in 2023, we published a Responsible Sourcing Policy with a Supplier Code of Conduct, which is being sent successively to our suppliers. We have also published a Human Rights Policy, which demonstrates our responsibility towards upholding human rights.

Symrise has declared its goal to source all materials and services on the basis of sustainable criteria. The Responsible Sourcing Policy and Supplier Code of Conducttherefore stipulate that all new suppliers must be assessed on the basis of sustainability criteria. In view of the Supply Chain Due Diligence Law, we have expanded the goal for evaluating our suppliers. By 2025, the group of suppliers making up 90 % of our procurement volume will be assessed according to sustainability criteria. In the reporting year, we already assessed 87 % (2021: 72.7 %) of our suppliers, based on 90 % of the procurement volume according to sustainability criteria.

In the year under review, we were not aware of any significant breaches of our Code of Conduct by suppliers.

We are purchasing an increasing number of natural raw materials with certified origins. For instance, we established a progressive strategy for the sustainable sourcing of oils and derivatives from palm fruits in 2015: since mid-2016, we exclusively use 100 % RSPO “Mass Balance” certified palm oil. In 2020, we achieved our goal of sourcing 100 % of certified primary and secondary palm oil derivatives from sustainable sources as well. Since we regularly source new primary and secondary palm oil derivatives and therefore eliminate existing certified palm oil derivatives, we work continuously to meet our demand. In addition, we have converted numerous recipes to palm oil free quality in recent years.

We do not tolerate any form of corruption in our company. Our business practices do not include accepting or providing money or other services in an attempt to gain a competitive advantage. Bribery and money laundering are criminal offenses that we strongly condemn. Our principle is therefore clear and applies to all countries: “Any business that cannot align with our fundamental principles is not a business for Symrise.”

The significance of “Corporate Governance and Compliance” for Symrise as well as its relevance and impact on external stakeholders is also reflected in the high rating of the topic in our materiality analysis conducted in 2022.

Our principles for combating corruption are laid out in our Code of Conduct, which acts as a binding model for all employees. The Code applies to all countries regardless of possible conflicting cultural customs; it regulates behavior with key Symrise partners and ensures transparent and reliable processes. In the interest of all employees and the company, we react swiftly to violations against the Code and rectify the causes thereof.

To guard against any breach in legal and ethical standards, an Integrity Hotline has been installed. This allows Symrise employees to report anonymously any breaches in legal regulations and internal company guidelines at any Symrise location around the world. By means of this hotline, all our employees are able to contact the Group Compliance office using toll-free telephone numbers that have been specially set up in the individual countries. Reports are of course treated confidentially, and whistle-blowers are not prosecuted. We consistently pursue misconduct within the scope of the applicable national legislation (for more on the complaints mechanism, see GRI 2-26).

Symrise performs regular and ad hoc audits of all sites to identify any cases of corruption.

In order to ensure observance of all compliance requirements on an ongoing basis, the need for training is regularly identified and suitable training courses are held in both the areas of “Technical Compliance” and “Legal Compliance”. In addition to training courses where employees are present on site, internet-based training is also offered. This allows us to reach more employees in a shorter period. It also gives employees greater flexibility in terms of where and when they undertake training. Subsequent tests confirm not only that a training course has been completed, but also that its content has been understood.

In addition to the requirements of their positions, new Symrise employees are given comprehensive training on the fundamental principles of our Code of Conduct when they join the company. All employees then take part in rolling training courses based on predefined schedules. Depending on whether they are basic, refresher or specialized training courses, these schedules cover a period of between one and three years.

In 2022, training courses were held on the topics of “Protecting Intellectual Property: The New Hire Training”, “Data Protection and Privacy: Know Your Risk Training”, “The Symrise Code of Conduct: Module 2 Training” and “Global Competition: Our Responsibilities Training”. Participation in the training courses is mandatory for employees with a connection to these topics through their roles. In the reporting year, more than 4,600 employees took part in each of these training courses (2021: 5,500). The employees who participated in 2022 received intensive training in compliance topics. These training courses also contain repeated references to our Code of Conduct, enforcing our binding principles. As part of the training sessions, participants are made aware of the complaints mechanism (including the Symrise Integrity Hotline) in the event of violations of the Code of Conduct (see GRI 2-26).

Since 2019, some of our employees have also received compliance training on topics such as conflicts of interest, anti-corruption, financial crime, legal requirements in international trade, protection of confidential corporate information, and secure data processing and removal. The target group for this training comprises employees from Purchasing, Finance, Sales and Management.

There were no confirmed cases of corruption at Symrise in 2022.

For Symrise, transparency and credibility are the basis for reliable and constructive relationships with the company’s key stakeholders: employees and colleagues, customers and suppliers, shareholders and investors, neighbors and society, national and local governments as well as government agencies, the media and the concerned public. The significance of “Corporate Governance and Compliance” for Symrise as well as its relevance and impact on external stakeholders is also reflected in the high rating of the topic in our materiality analysis conducted in 2022.

To ensure consistently exemplary actions and behavior, we continue to adhere to our Code of Conduct. The Code of Conduct applies equally to the Executive and Supervisory Boards as well as Symrise employees in Germany and abroad, i.e. to all managers and employees of the Group. The Code of Conduct – a binding fundamental principle – defines minimum standards and sets out behavior enabling all employees to cooperate in meeting these standards. The purpose of the Code of Conduct is to help all employees cope with the ethical and legal challenges of their everyday work and provide them with guidance in conflict situations. In the interest of all employees and the Group, non-compliance with standards will be investigated and causes remedied. This means that misconduct will be consistently prosecuted in accordance with national laws.

In 2022, training courses were held on the topics of “Protecting Intellectual Property: The New Hire Training”, “Data Protection and Privacy: Know Your Risk Training”, “The Symrise Code of Conduct: Module 2 Training” and “Global Competition: Our Responsibilities Training”. Participation in the training courses is mandatory for employees who have a connection to these topics as a result of their work. In the reporting year, more than 4,600 employees took part in each of these training courses (2021: 5,500). The employees who participated in 2022 received intensive training in compliance topics. These training courses also contain repeated references to our Code of Conduct, enforcing our binding principles. As part of the training sessions, participants are made aware of the complaints mechanism (including the Symrise Integrity Hotline) in the event of violations of the Code of Conduct (see GRI 2-26).

Since 2019, some of our employees have also received compliance training on topics such as conflicts of interest, anti-corruption, financial crime, legal requirements in international trade, protection of confidential corporate information, and secure data processing and removal. The target group for this training comprises employees from Purchasing, Finance, Sales and Management.

There were no cases involving anti-competitive behavior at Symrise in 2022.

Our Code of Conduct ensures that our behavior and our business dealings remain transparent, honest and comprehensible. For Symrise, reliable and constructive relationships with each other and with external stakeholders are based on transparency and credibility. In addition to compliance with national legislation, we clearly recognize the significance of tax payments for an effective and functioning welfare state and see it as our duty as a company of integrity to pay the correct amount of taxes required by law in every country in which we operate.

The tax function is centrally managed and controlled by Corporate Tax under the direction of the Chief Financial Officer (CFO). The CFO reports regularly to the Audit Committee of the Supervisory Board.

We have internal policies, processes and compliance programs in place to ensure that we act consistently in all areas of our company and meet our tax obligations.

In the reporting year, we developed training on tax reporting based on International Financial Reporting Standards (IFRS) and the sixth amendment to the EU Directive on Administrative Cooperation (DAC6) The training is conducted annually. Senior executives will receive additional training on transfer prices in another training course.

Symrise is committed to efficient tax planning that supports the business and realigns commercial and economic activities. We comply with relevant tax law and seek to minimize the risk of uncertainty or dispute. Transactions within Symrise should be conducted according to market conditions and in accordance with applicable OECD principles.

Tax incentives and exemptions are sometimes granted by governments and tax authorities to support investment, employment and economic development; where available, we apply these as intended.

The overall objective of the tax policy of Symrise is to comply with the rules and regulations of the tax jurisdictions in which Symrise operates. In addition, tax risks need to be mitigated in a timely and cost-efficient manner and a sustainably effective tax rate achieved. Therefore, in accordance with our internal tax policy as approved by the CFO, we strive to ensure

• that all taxes and fees are paid in accordance with local laws and regulations in the countries in which Symrise operates;
• that Symrise complies with OECD and local transfer pricing rules and guidelines; and
• that appropriate tax payments and expenses are paid in accordance with the corporate strategy and the tax regulations.

We pay taxes where we create value, thus helping to enable state and municipal investments in infrastructure and the common good. By 2025, we are basically planning for a global tax rate of 25–27 %; in 2022, our effective Group tax rate was 32.6 % owing to the impairment of the investment in Swedencare AB. Without the Swedencare effect, the tax rate would have been 25.2 % (2021: 25.4 %). Our effective tax rate is average for listed companies in Germany.

Symrise consistently works on improving its tax compliance management system. In the reporting year, preparing for the implementation of Pillar II of the international BEPS 2.0 tax system of the OECD was a major topic. For more information on our approach to taxes, see the Approach to Tax of Symrise.

For the description of our tax concept, which also describes the internal tax policy, see Management approach to GRI 207.

For a description of management, control to integration within the organization, see Management approach to GRI 207.

The application of the risk management system of Symrise is part of our internal control process. Tax risks are identified, assessed and managed. In doing so, we implement risk management measures, including controls of compliance processes, and continuously monitor their effectiveness. Risks identified as significant are reported to the Auditing Committee. The legal entities of Symrise are required to prepare a report on tax risks at least once a year. These are centrally monitored and assessed.

To ensure that Symrise complies with statutory provisions and that the company’s internal instructions for handling taxes are always adhered to, we hold training courses for employees who work with taxes.

As described in our Code of Conduct, various channels of contact exist for employees wishing to voice concerns about ethical and legal behavior as well as matters of integrity, whether or not in relation to taxes. For example, our employees can anonymously and confidentially contact the relevant Compliance Officer at their location, or make use of our Integrity Hotline (for more on the complaints mechanism, see GRI 2-26). External informants who wish to report violations of our Code of Conduct by a Symrise employee or our business partners need not fear reprisals; in fact, we actively encourage dialogue. They can contact the police, the public prosecutor's office, the media and the relevant supervisory authorities, or write to the Executive Board or the Supervisory Board of Symrise or the Compliance Officer Corporate Sustainability.

We do not provide tax information to any person or institution other than tax authorities. All legally required information on income taxes is provided in our Group management report and consolidated financial statements (see management report p. 54, consolidated financial statements p. 100 and the independent auditor’s report, p. 144ff).

We strive to maintain open, positive relationships with governments and tax authorities around the world, and we welcome constructive debate on tax policy. We monitor government debate on tax policy in our main jurisdictions to respond proactively to potential future changes in tax law.

A detailed presentation of country-by-country reporting is omitted, as disclosure of this data would reveal information relevant to competition. All legally required information on income taxes is provided in our Group management report and consolidated financial statements (see management report p. 54, consolidated financial statements p. 100 and the independent auditor’s report, p. 144ff).

We consider the impact of our activities on the environment across the entire value chain: These range from the sourcing and processing of raw materials to product development, production and logistics as well as product use and disposal. For instance, we use natural resources in the form of raw materials and energy sources for our manufacturing processes. At the same time, our business activities may result in contamination of air, soil and water. Within the scope of SDG 12, a global sustainability objective to which we are particularly committed, overarching objectives are formulated that respect the natural limits of the planet. The significance of “use of raw materials and recycling solutions” and “product innovation and design” for Symrise as well as their relevance and impact on external stakeholders is also reflected in the high to very high rating in our materiality analysis conducted in 2022.

Within our operational environmental management system, we evaluate the upstream stages of our value chain. At every site, a senior manager is responsible for environmental management. Those responsible chair the local environmental committees at the respective sites and regularly report to the CEO. The goal of the environmental management system is to prevent or reduce the impact of activities, products and services on the environment through a site-specific environmental program that complies with national and local legal regulations and provisions.

Our goal is to conserve resources, consistently avoid or minimize harmful effects on the environment and prevent risks. Our production sites with the greatest potential environmental impacts are either located in countries with strict environmental policies or operate according to an environmental management system that is ISO 14001 certified. In addition, the SEDEX platform or the SMETA 4-pillar requirements are adopted as the minimum standard, with compliance regularly reviewed by external auditors at most of our production sites (see also GRI 2-27). Our German sites in Holzminden (including the subsidiaries Symotion and Tesium) and the Symotion site in Hamburg are certified according to the ISO 50001 energy management system.

We also conform to the principles of the circular economy across the value chain: we aim to eliminate waste and environmental pollution, circulate non-renewable resources in cycles and extract renewable resources sustainably while regenerating nature. In specific terms, this means that raw materials must be utilized as fully as possible, and byproducts must be avoided. Moreover, all the products that we manufacture need to be fully biodegradable regardless of their origin, and safely returned to nature following use. Regenerative raw materials should also be used, especially for energy supply. We take these goals into account in all our projects, products and processes (see also our brochure "The Future is Round and Green. The Circular Economy as the Basis for Successful and Sustainable Business").

Since 2020, our goal has been to avoid waste more consistently and maximize recycling in the scope of our initiative on the use of plastics. We aim to recycle more than 95 % of recyclable plastics by 2025, provided local capacities are available. Starting in 2025, 100 % of our packaging materials will need to be sustainable. We also discontinued the use of single-use plastics at all sites in 2021. An interdisciplinary team comprising employees from technical purchasing, packaging engineers and managers from operations and research and development is responsible for implementing the initiative on the use of plastics.

Our goal is to generate more than 15 % of our sales with new product developments that meet sustainability criteria by 2025. In the reporting year, we once again achieved this goal with 15.1 % (2021: 16.7 %). This is supplemented with the minimal use of products containing genetically modified organisms (GMOs): in the reporting year, the proportion of these products by sales stood at 4.9 % (2021: 11.2 %). These are products containing at least one raw substance or ingredient for which there is a GMO declaration. In the Taste, Nutrition & Health segment in particular, Symrise supplements its product range with resource-friendly and innovative alternatives in line with all regulatory requirements and in compliance with the highest food safety standards.

Our research and development teams are continuously working on switching to alternative raw materials and manufacturing processes to improve the sustainability performance of products and counteract availability bottlenecks. This involves applying the principles of green chemistry (especially in our specialized catalysis laboratory), biotechnological processes and digital solutions. Wherever possible, recipes are converted to raw materials from renewable sources. In the reporting year, for example, Symrise introduced its cosmetic ingredient Hydrolite^® 6 green, which is based on sustainable raw material sources and particularly gentle on the skin. Unveiled in 2022, the SymDiol^® 68 product comprises 100 % green raw materials.

The efficient use of raw materials is also the focus of the continuous refinement of our manufacturing processes. Wherever possible, we aim to use raw materials across several levels (“cascade utilization”), utilizing byproducts and waste streams in the agricultural and food industries. For example, we use a recovery process that allows us to completely extract active taste components from the byproducts of agricultural value chains and thereby achieve a maximum yield from raw materials while simultaneously conserving energy (see also GRI 306-2). In doing so, we help processing companies in the food sector increase raw material efficiency – for example, by using byproducts from the processing of cranberries. In addition, we extract biochemicals from byproducts – our internally developed SymTrap® process, for instance, allows us to extract natural flavors and fragrance ingredients from leftover aqueous phases.

Enhanced efficiency in the value chain not only has a positive impact on our environmental footprint, but also cuts spending. Our Symchronize® initiative is a prime example of this. In collaboration with our customers, we developed this integrated supply chain management system to help to identify fields of action and topics with the potential to reduce not only the consumption of energy, water and resources, but also our emissions. Within the framework of our Total Productive Maintenance program, we involve our employees in a targeted manner and learn from their proposals.

We are also focused on the more environmentally friendly and sustainable cultivation of raw materials. Our sustainability and agricultural experts work with external stakeholders from business, science and civil society on various raw material-specific initiatives and programs to improve and implement more sustainable methods of agricultural cultivation. In this way, we not only ensure the high quality and availability of raw materials, but also contribute to the conservation and regeneration of soils, water resources, biodiversity and ecosystems that are essential to sustainable agriculture. One example is the Onion Ring initiated by Symrise, in which we work with farmers, authorities and researchers to optimize the local cultivation of onions and reduce the use of fertilizers and pest control (see Management approach to GRI 204).

We also contribute our expertise to global multi-stakeholder dialogues and initiatives dedicated to sustainable transformation of the agricultural and food system, and preserving the natural foundations of life. These include the One Planet Business for Biodiversity Initiative and the Sustainable Agriculture Initiative, in which we work with like-minded key customers to develop, test and enact principles, methods and standards for environmentally friendly, resilient and sustainable agriculture. For more information on these and other initiatives, see GRI 2-28.

To manufacture our products, we use around 10,000 natural raw materials, including vanilla, citrus fruits, onions, fish, meat or blossoms and plant materials, as well as synthetic raw materials from over 100 countries. Our products consist mainly of value-adding intermediate products (i.e. aromatic compounds and active ingredients) as well as carriers such as ethanol. We are purchasing an increasing amount of natural raw materials with certified origins.

Omissions: exact weight or volume disclosures on the materials we use are not published, as we consider this information confidential.

We do not use a noteworthy amount of recycled materials in the manufacturing of our products. As part of our initiative on the use of plastics, we have set ourselves the goal of recycling more than 95 % of recyclable plastics by 2025, provided local capacities are available.

Our relatively small process losses arise mainly from the extraction and distillation processes, which we reduce via recycling wherever technically and economically feasible. For example, we purify the solvents used in various production processes in order to reuse them multiple times.

Symrise is aware of, and complies with, all legal regulations on plastic packaging. Although our use of plastic packaging is minimal compared to our production volume, we encourage all our locations to support reduction and recycling activities while continuing to maintain the safety of our products and the environment. We are setting the framework for this through our initiative on the use of plastics (see Management approach to GRI 301).

We have implemented several measures to reduce our waste volumes, one being the efficient use of recyclable packaging. Wherever possible, we deliver our products in large containers that we take back, clean and reuse. For small containers, we use disposable packaging for logistical reasons. Mindful of economic and environmental criteria as well as aspects of product and occupational safety, Symotion GmbH, our logistical services subsidiary, continually optimizes this packaging.

In order to manufacture our products, both we and our suppliers require a sufficient supply of energy, which is linked to greenhouse gas (GHG) emissions. Faced with climate change, we feel obligated to create an increasingly efficient energy supply with a view to steadily reducing our greenhouse gas emissions. This will also enable us to reduce both climate-related business risks, such as rising energy costs, and reputational risks in the light of increasing demands on our stakeholders. The importance of the topic to all of our stakeholders is underlined by the result of our materiality analysis conducted in 2022 and the very high rating of “climate change mitigation and adaptation” for Symrise as well as its relevance and impact on external stakeholders.

At a global level, we analyze our energy consumption and greenhouse emissions not only inside our organization but also along the entire supply chain, including in our own products. To gain a deeper understanding of our energy consumption, an energy audit in accordance with EN 16247 was performed at all European sites of the Scent & Care segments and at the larger sites of the Taste, Nutrition & Health segments. Our German sites in Holzminden (including the subsidiaries Symotion and Tesium) and the Symotion site in Hamburg are certified according to the ISO 50001 energy management system.

In 2022, we also focused on decoupling our dynamic growth in various divisions from their environmental impacts. We further optimized our energy balance in key areas through additional measures and by building upon our energy aspect analysis, at the same time placing a stronger focus on reducing emissions as part of Total Productive Maintenance.

Symrise treats greenhouse emissions (Scope 1 and 2) as an important internal control quantity in our company’s sustainability management. We demonstrate our progress regarding resource conservation and emission reduction in a number of ways, one of them being our annual participation in the CDP independent investor initiative.

In the reporting year, Symrise once again achieved an impressive CDP (formerly Carbon Disclosure Project) rating: Symrise reached the highest “A-” rating in all three categories – climate, water and forest protection. This makes Symrise on of only 13 companies worldwide on the Triple-A-List. The “A” rating in the climate category was already achieved for the seventh consecutive time.

We started the CDP Supply Chain program in 2017 to work with our suppliers on a more sustainable value chain. Our suppliers with the highest risk status on climate, water and forest protection were again requested to follow the CDP Supply Chain program in 2022. Strategic suppliers, in particular, are eligible for the program. As we defined significantly more suppliers as strategic in the reporting year, more suppliers were invited to participate in the CDP Supply Chain program compared with the previous year. Given the increase in the number of suppliers considered, the response rate in the climate sector fell from 58 % in the previous year to 53 %. Of the suppliers who participated in the CDP Supply Chain program, 71 % (2021: 69 %) have set active emissions reduction targets and 36 % have a decarbonization plan that is geared towards a 1.5°C scenario. In total, 85 % (2021: 85 %) of participating suppliers reported on their operational GHG emissions. In addition, many suppliers are in turn engaging their own suppliers on climate-related issues: around 69 % (2021: 61 %) of participating suppliers motivated their own suppliers to set goals. Improvements were achieved in the use of green electricity: around 37 % (2021: 18 %) of the electricity consumed by participating suppliers came from renewable sources and around 64 % (2021: 20 %) of participants reported renewable energy targets.

Symrise has committed to being climate-positive at all its global production sites starting in 2030, in line with the Scope 1+2 emissions of the GHG Protocol. In 2021, in order to achieve its targets, Symrise devised a new Science Based Target aimed at a maximum global warming of 1.5°C, the highest possible level of aspiration at present. This target was validated by the SBTi in February 2022: by 2028, we aim to cut THG emissions (Scope 1+2) by 80 % compared to the 2020 level. By 2025, we also want to increase the eco-efficiency of THG emissions by more than 60 % on the 2016 level. In the reporting year, we were able to increase the eco-efficiency of GHG emissions (Scope 1+2), based on added value, by 10,4 % (2021: 11.3 %), thereby achieving our interim goal for 2022.

In the reporting year, Symrise once again delivered a convincing result in the CDP (formerly the Carbon Disclosure Project) rating, with the highest A rating in all three categories climate, water protection and forest protection. Symrise is therefore one of only 13 companies worldwide on what is known as the Triple-A-list. The A-rating was achieved for the seventh time in the climate category.

We started the CDP Supply Chain program in 2017 to work with our suppliers on a more sustainable value chain. Our suppliers with the highest risk status on climate, water and forest protection were again requested to follow the CDP Supply Chain program in 2022. Strategic suppliers, in particular, are eligible for the program. As we defined significantly more suppliers as strategic in the reporting year, more suppliers were invited to participate in the CDP supply chain program than in 2021. Given the increase in the number of suppliers considered, the response rate in the climate sector fell from 58 % in the previous year to 53 %. Of the suppliers that participated in the CDP Supply Chain program, 71 % (2021: 69 %) have set active emission reduction targets and 36 % have a decarbonisation plan that is aimed at a 1.5 °C scenario. In total, 85 % (2021: 85 %) of participating suppliers reported on their operational GHG emissions. In addition, many suppliers are in turn engaging their own suppliers on climate-related issues: around 69 % (2021: 61 %) of participating suppliers motivated their own suppliers to set goals. Improvements were achieved in the use of green electricity: only around 37 % (2021: 18 %) of the electricity consumed by participating suppliers came from renewable sources and around 64 % (2021: 20 %) of participants reported renewable energy targets.

As of 2030, Symrise is committed to being climate-positive at all of its global production sites based on the Scope 1+2 emissions of the GHG Protocol. In 2021, in order to achieve its targets, Symrise devised a new Science Based Target aimed at a maximum global warming of 1.5°C, the highest possible level of aspiration at present. This target was validated by the SBTi in February 2022: by 2028, we aim to cut THG emissions (Scope 1+2) by 80 % compared to the 2020 level. By 2025, we also want to increase the eco-efficiency of THG emissions by more than 60 % on the 2016 level. In the reporting year, we were able to increase the eco-efficiency of GHG emissions (Scope 1+2), based on added value, by 10.4 % (2021: 11.3 %) thereby achieving our interim goal for 2022.

Symrise has also committed to reducing its Scope 3 emissions from purchased goods and services by 30 % on the 2020 value by 2030. This value is also a Science Based Target that corresponds to the highest possible level of aspiration at present and was also validated by the SBTi in February 2022. In the long term, Symrise is aiming to achieve net zero by 2045 (Scope 1+2+3). We also want to increase the eco-efficiency of Scope 3 emissions by 15 % on the 2020 level by 2025. Between 2016 and 2020, we succeeded in cutting Scope 3 emissions by around 40 %.

We achieve our climate goals through various measures: since 2020, for example, we have demonstrably sourced our global external electricity requirements from renewable sources. Furthermore, we continue to review power purchase agreements (PPAs) and thus promote the energy policy. We are steadily enhancing energy and process efficiency at all production sites while supporting highquality certified climate protection project all over the world.

To effectively advance the attainment of our defined targets, we also launched a pilot project in relation to the Low Carbon Transition Plan (LCTP) at our Holzminden site in September 2022. The aim of the project is to define pathways to climate positivity by 2030. To this end, the focus is on the following five steps: first, a CO₂ start balance is created and the current situation is determined. This is followed by the recording of areas with CO₂ reduction potential for which measures have been planned (energy efficiency, process optimization, etc.). Additional CO₂ reduction potential is then determined (e.g. biomass/electrode boilers or high-temperature heat pumps). Next, on the basis of these three steps, goals and benchmarks for the documentation of target attainment by the target year of 2030 are defined. Finally, the economic impact on Symrise from the tightening of climate targets is examined in more detail. The project team is made up of a steering committee and a group which will work through these project steps by the end of April 2023. The global roll-out will take place when the pilot project has been concluded in Holzminden.

Through various energy and process efficiency measures, we saved almost 54,000 metric tons of carbon dioxide equivalents in the reporting year (2021: 60,000 tons): these include our cogeneration plant at the Holzminden site, which reduces our emissions from energy generation by around 20,000 metric tons of carbon dioxide equivalents annually. By expanding our production capacities for synthetic menthol, we now avoid emitting around 30,000 metric tons of carbon dioxide equivalents per year The reason for the high savings is the carbon footprint of the synthetic variant, which is approximately ten times smaller than of natural menthol. Moreover, ongoing measures by our local Total Productive Maintenance teams are steadily replacing energy-intensive consumer equipment such as motors, ventilation and heating systems, compressed air systems and boilers for the production of steam and cooling with more efficient alternatives. We also consider emissions from logistics and packaging: our subsidiary Symotion in Holzminden, which is responsible for logistics processes, aims to reduce the use of diesel fuel by two percent per transport unit every year. In 2021, we also converted all used packaging materials used by Symrise in Germany to carbon neutral: Symrise is currently evaluating eight projects aimed at preventing the emission of around 70,000 metric tons of carbon dioxide equivalents in the next two to three years.

In 2022, we supported two projects in Brazil. In Portel Para, 150,000 hectares of threatened Amazon rainforest have been protected from deforestation, thereby safeguarding endangered species while preventing some 264,000 tons of CO₂ emissions every year. In Belo Horizonte, meanwhile, electricity is being produced from a former landfill site. This is preventing the release of greenhouse gases (and especially methane) and therefore 112,000 tons of CO₂ emissions annually.

To advance environmental and climate protection in partnership with other stakeholders, Symrise is active in numerous initiatives and frequently joins new associations. Symrise is a member of the Alliance for Development and Climate, the RE100 Initiative, the Business Ambition for 1.5°C and the Alliance of CEO Climate Leaders. In the reporting year, Symrise joined The French Business Climate Pledge and the Exponential Roadmap Initiative, among others (for more on these and other initiatives and campaigns, see GRI 2-28).

With its SBTi emission reduction targets and its commitment to numerous initiatives, Symrise takes a pioneering role in climate protection in the flavor and fragrance industry and acts in accordance with the resolutions of the UN climate conferences and the recommendations of the current IPCC (see also GRI 201-2).

Overall Energy Consumption by Energy Source

^*For 2021, additional data was submitted after the editorial deadline. Data quality is also being continuously improved by training the responsible persons at smaller sites and at sites from acquisitions.

Energy consumption outside of Symrise (i.e. through significant up/downstream activities in connection with our business activities) is not disclosed separately. Instead, greenhouse emissions are considered authoritative because Symrise uses these as control quantities (see GRI 305-3).

The energy consumption per € million in added value stood at 4.5 TJ within the organization in 2022 (2021: 5.1 TJ). The measures introduced to increase energy and process efficiency have been successful.

In 2022, energy consumption per € million in added value fell by -14.2 % (2021: -7.3 %). The measures introduced to increase energy and process efficiency have been successful.

Innovation is a key driver of sustainability at Symrise. In 2012, we introduced a process for recording, assessing and managing our sustainability performance in product development. Using specific indicators based on the concept of planetary boundaries, we assess how our products and projects contribute to sustainability. 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 concentrating on process redesigns and complete process overhauls incorporating green chemistry and innovative technologies. For instance, part of our integrated approach to environmental protection is reflected in our new catalysis laboratory where we optimize existing chemical processes in a targeted manner using innovative catalysis methods (for more information on our product innovations, see the Management approach to GRI 301). Changes to the product mix can also have a negative impact on the energy balance, because in some cases we have to use substances such as menthol or hydrolites that are manufactured using very high levels of energy. Nevertheless, in certain cases this can be the more climate-friendly option: for example, the greenhouse gas emissions of our synthetic menthol are ten times lower than those of natural menthol.

In addition, with our Product Sustainability Scorecard we have devised a new assessment system that enables us to identify each product’s specific impact on sustainability based on ten criteria (including energy consumption, greenhouse gas emissions and water usage). All steps are evaluated along the supply chain, including the sourcing of raw materials. This allows us and our customers to steer product development with even greater precision and optimize the sustainability of the end product. Currently, we cover over 85 % of our global product volume this way, which allows us to compare the respective sustainability impact for over 1,250 base materials and approximately 2,000 raw materials. Our analysis and measurement methods have been validated by an external assurance process and subsequently patented.

We are also continuously working to optimize our productsʼ sustainability performance in other areas. For instance, one key focus in developing improved flavor solutions is optimizing existing products based on agriculture and aquaculture. At the same time, we are successfully working on integrating suitable byproducts from agricultural and aquaculture production or food production, thereby increasing added value. Here, biotechnological approaches and new physical separation technologies are also being tested. Typical examples include existing products made from onions, for which the entire process chain has been reevaluated – from the choice of onion type to the agricultural cultivation, processing and waste reduction. In this area, Symrise works in partnership with public research institutes and highly specialized partner companies. This eliminates co-products, increases raw material efficiency and reduces the environmental footprint of our products (see also GRI 306-2).

The precious resource of freshwater is already in short supply in some regions of the world – and the problem will become much more severe in the coming decades. Both in terms of physical availability as it relates to our supply chain and in view of growing regulations and its significance to our company’s reputation, our handling of water was identified as important to Symrise and relevant in terms of its impact on external stakeholders in our materiality analysis for 2022.

Symrise does not currently operate any sites that use a significant amount of water in areas with limited water. Nonetheless, we do everything in our power to use water as efficiently as possible and consistently reduce our production of wastewater (see also our Water Use Strategy, GRI 303-1).

To ensure a water supply for production, we assess the supply of freshwater at all Symrise sites. This involves determining the water catchment areas, identifying water-related hazards and risks and assessing possible consequences for our business activities. If necessary, risk mitigation measures are taken: for example, our production at the Chennai site in India is exposed to the risk of water scarcity. In order to mitigate this risk and avoid putting undue pressure on the water table, Symrise sources part of the water it needs from surrounding regions where water availability is better. In addition, Symrise in India operates its own wells and rainwater systems.

Our Total Productive Maintenance (TPM) teams are steadily optimizing processes at all sites with water requirements in mind. In the process, they have determined that the majority of our water usage is attributable to cooling towers, boiler houses and the generation of vacuum using water liquid ring pumps. By contrast, the proportion of process water in total water usage is relatively low. To reduce our water requirement, we use alternative and innovative processes in distillation processes, for example, to generate vacuum without the use of water. Our TPM teams also identify leaks and take action to repair them.

Our commitment is also recognized by our CDP (formerly Carbon Disclosure Project) rating: in the reporting year, we once again achieved the highest A-rating in the water protection category, which earned us a place on the prestigious A list. For more information on the Water category, see the section of the CDP website dealing with this topic as well as the current CDP results of Symrise for this category. For more information on our CDP rating performance in the climate and forest conservation categories, see GRI 304 und GRI 305.

To ensure we are able to identify and actively manage potential water risks early on, we also systematically assess our supply chain and maintain regular contact with suppliers. For this reason, we began working with the CDP Supply Chain program in 2017. Our suppliers with the highest risk status on climate, water and forest protection were again requested to follow the CDP Supply Chain program in 2022. Strategic suppliers, in particular, are eligible for the program. Due to the increase in the number of suppliers considered, the response rate for water decreased slightly from 55 % in the previous year to 49 %. Of the suppliers who participated in the CDP Supply Chain program, 90 % (2021: 63 %) have set water-based goals. 76 % (2021: 70 %) of participating suppliers reported integrating water into their strategies and long-term business targets while 75 % (2021: 80 %) of suppliers supplied information on their water footprint.

With our Product Sustainability Scorecard, we have devised an assessment system that enables us to identify each product’s specific impact on sustainability based on ten criteria (including water usage). All steps are evaluated along the supply chain, including the sourcing of raw materials. This allows us and our customers to steer product development with even greater precision and optimize the end product sustainably. Currently, we cover over 85 % of our global product volume this way, which allows us to compare the respective sustainability impact for over 1,250 base materials and approximately 2,000 raw materials. Our analysis and measurement methods were validated by an external assurance process and subsequently patented.

The total amount of water recycled and reused by Symrise in 2022 is negligible.

We are aware that water is a scarce resource in many regions and that this situation will intensify considerably in the future, for example in Mexico, parts of South Africa and on the Indian subcontinent. In these countries first and foremost, we will make sure that our water consumption and our wastewater do not harm this valuable resource.

We are not aware of any material impact on water quality or water availability resulting from water withdrawal or the disposal of wastewater at other production facilities around the world.

As a member of the World Business Council for Sustainable Development, Symrise supports the CEO Water Mandate to promote the protection and sustainable use of freshwater bodies and resources in our direct business activities along our value chains.

According to our water use strategy, Symrise is committed to the following:

• Ensuring compliance with water-related legislation and voluntary standards in the countries in which we are active
• Sustainable use of freshwater resources, taking account of the regeneration rates of local water bodies and sources
• Regular analysis, monitoring, control and sustainable management of water quality and the number of outputs and inputs
• Raising awareness among our customers, suppliers and other interest groups about the critical importance of water for sustainable development and company success
• Integration of water-related performance criteria into our supplier screening
• Informing customers about the water output of the compounds and ingredients they buy from Symrise
• Promoting collaboration between multiple interest groups in the area of water management
• Performing regular water risk assessments of our operations and value chains
• Improving water efficiency at all production locations in areas with high water stress in line with local water availability for human and environmental needs
• Fully functional WASH services for every employee and visitor of our company
• Along our value chains, we promote sustainable innovation that contributes to the conservation of freshwater resources and the protection of water quality and the aquatic environment

Accordingly, we have set the following goal for ourselves for 2025:

• Increase the efficiency of water consumption at all production sites in arid regions by 15 % compared to the 2018 base year.

In the reporting year, we saw a gradual progress toward this target, since water consumption at all sites in countries suffering from water stress decreased by 4.3 % (2021: + 7.2 %). Since water stress is primarily dependent on geographical location, as well as sociopolitical influences, a site-specific approach makes sense. We therefore began assessing all Symrise sites in 2020 using a risk matrix. The sites with water risks that have already been identified must define water-saving targets and programs and initiate specific implementation measures that are regularly evaluated. In this way, they contribute to the achievement of our reduction goals.

One of our production locations, for example, is in Northern Mexico, a region that has struggled with severe water shortages in recent years. By implementing several projects there, such as developing alternative water sources, improved piping of condensate reservoirs, and the storing and recycling of water, we were able to save almost 40 % of process water compared with the previous year. We have also been able to reduce water consumption at our production site in India, by implementing various measures, such as the collection and reuse of rainwater.

Since 2010, we have pursued the goal of continually reducing the chemical oxygen demand (COD) in our wastewater. By 2025, we aim to increase in the efficiency of the chemical oxygen demand in wastewater by 4 % annually, or by a total of 60 % compared to the base year 2010. In the reporting year, we succeeded in raising efficiency by 11.2 % (2021: 34.8 %).

We measure COD at every site worldwide. Each site follows the local limits for their respective country around the clock. At our site in Holzminden, the authorities also administer unannounced spot tests (alongside our own measurements) to ensure that there is never any violation of the Waste Water Ordinance (AbwV). Tests are also conducted by authorities in other countries. We are not aware of any significant violations.

Total Water Withdrawal by Source

^*For 2021, late registrations were received after the editorial deadline. Data quality is also improved continuously by training the responsible persons at smaller sites and at sites from acquisitions.

Water discharge^* by destination

^*The difference between water removal and consumption results from the distillation processes and other emissions in the atmosphere.

^**For 2021, late registrations were received after the editorial deadline. Data quality is also improved continuously by training the responsible persons at smaller sites and at sites from acquisitions.

Water discharge by quality

^*For 2021, late registrations were received after the editorial deadline. Data quality is also improved continuously by training the responsible persons at smaller sites and at sites from acquisitions.

We measure important substances of concern based on the chemical oxygen demand in water (see GRI 303-2). Areas with water stress were identified as part of the annual risk analysis. The classification of areas with water stress is based on the WWF Water Risk Filter risk assessment. This currently affects our sites in Mexico, India, Egypt, Chile and Spain.

Water consumption

^*The data was adjusted retroactively to the precise GRI definition of water consumption (water withdrawal minus water discharge).

Areas with water stress were identified as part of the annual risk analysis. This currently affects our sites in Mexico, India, Egypt, Chile and Spain. The classification of areas with water stress is based on the WWF Water Risk Filter risk assessment.

For Symrise, the global diversity of species is not only a source of raw materials, but also an invaluable source of inspiration and innovation for the development of unique flavors, fragrances and cosmetic or functional ingredients. Among all the stakeholders, the significance of the topic “Environmental protection and biodiversity” is underlined in our materiality analysis conducted in 2022. However, the global and local impact of human activities has led to a sustained worldwide reduction in biological diversity. The potential effects of this are systematically analyzed and evaluated as part of our sustainability management. The material impact of our business activities on biodiversity is usually indirect and occurs in the supply chain – particularly during raw materials production. This potentially includes overexploitation of wildlife populations or unsustainable extraction practices in agriculture, forestry, fisheries and aquaculture. Own production sites, for example, can cause an impact through sealing the soil or emitting pollutants into the air or soil (which we monitor as part of our operational environmental and site management).

Depending on the specific topic, biodiversity is managed and addressed at Symrise partly at the corporate level and partly at the division level in conjunction with Corporate Sustainability. The Chief Executive Officer is directly briefed on biodiversity several times per year. As core goals of the UN Convention on Biodiversity, the preservation and sustainable use of biodiversity and fair distribution of advantages from the use of genetic resources are essential components of our sustainability agenda and our environmental and sustainability management. Our forest cultivation strategy and land use policy provide us with a framework of action. By signing the “Business and Biodiversity Pledge” of the UN Convention on Biodiversity, we have committed to acting sustainably in accordance with the core goals of the Convention.

In the implementation of our biodiversity goals, we work closely with skilled external stakeholders, such as the Biodiversity in Good Company Initiative and the Union for Ethical Biotrade. We are also involved with other member companies of the World Business Council for Sustainable Development (WBCSD) in multi-stakeholder forums, such as the One Planet Business for Biodiversity Initiative. Symrise is also a member of the Initiative Nature Action of the WBCSD: the project supports the development of science-based targets for nature conservation (SBT for Nature), provides assistance for nature-based solutions and demonstrates business leadership to policymakers in the nature and climate area. The goal of all these measures is to stop biodiversity loss and to make only positive contributions to the full recovery of the natural environment as from 2030 – in other words, to do business in a "Nature net positive” way (for more information on these and other initiatives see GRI 2-28).

Environmental and ethically sustainable cultivation and sourcing practices constitute the most important lever of our company in protecting biodiversity and encouraging its sustainable use. For this reason, Symrise has set itself the target of procuring 100 % of all strategic biological raw materials from sustainable sources by 2025. We assess the degree of biodiversity and ecological stress factors in the countries where our raw materials originate, and also assess the degree to which those species from which we derive our strategic raw materials could be endangered. Thanks to our stable customer and product portfolios, there are only a few raw materials being used in small volumes that are obtained from threatened species in accordance with the Washington Convention on International Trade in Endangered Species (CITES). Through corresponding sustainability verifications, strict use controls, efficient production processes and the development of suitable raw material alternatives, we concentrate on preventing or minimizing any negative biodiversity impact while ensuring sustainable use of these species. Symrise cannot directly monitor changes in species’ populations within ecosystems that our suppliers deem relevant for generating raw materials. Our suppliers are enjoined consistently to avoid or minimize any potential negative impacts on biodiversity.

We make effective contributions to biodiversity-friendly supply chains through the targeted application of sustainability standards and certifications that explicitly account for the preservation and sustainable use of biodiversity (e.g. the Rainforest Alliance, Sustainable Agriculture Initiative Farm Sustainability Assessment, UEBT standard, etc.).

In addition, with our Product Sustainability Scorecard we have devised a new assessment system that enables us to identify each product’s specific impact on sustainability based on ten criteria, also with regard to biodiversity and land use (including deforestation, changed use, agricultural methods). All steps are evaluated along the supply chain, including the sourcing of raw materials. This allows us and our customers to steer product development with even greater precision and optimize the end product sustainably. Currently, we cover over 85 % of our global product volume this way, which allows us to compare the respective sustainability impact for over 1,250 base materials and approximately 2,000 raw materials. Our analysis and measurement methods were validated by an external assurance process and subsequently patented.

In the course of our targeted intervention projects, we have striven for several years to preserve biodiversity and prevent CO2 emissions, for example through forest conservation projects or the introduction of sustainable cultivation methods for biologically based raw materials from agriculture and forestry. In Brazil, for example, we support a forest conservation project in the Amazon region as part of REDD+. The project monitors the conservation of rich biodiversity (with over 150 endangered plant and animal species), implements measures to reduce deforestation risks and supports local communities. Preserving a threatened forest also serves to prevent 264,000 tons of CO2 emissions per year. Another project that we support in Brazil produces electricity from a former landfill site. This stops waste from rotting and toxins from entering the soil and groundwater while avoiding the creation of greenhouse gases (like methane). Every year, 112,000 tons of CO₂ emissions are prevented as a result.

In the reporting year, Symrise once again achieved an impressive CDP (formerly Carbon Disclosure Project) rating: Symrise reached the highest “A” rating in all three categories – climate, water and forest protection. This makes Symrise one of only 13 companies worldwide on the "Triple A" list. In the category forest protection, only 25 companies worldwide received the top grade. In the water category, the A list contains 103 companies worldwide. Since 2016, Symrise has held top positions in the CDP ratings for climate change, water protection and forests.

We started the CDP Supply Chain program in 2017 to work with our suppliers on a more sustainable value chain. Our suppliers with the highest risk status on climate, water and forest protection were again requested to follow the CDP Supply Chain program in 2022. In the Forests category of the CDP Supply Chain program, Symrise recorded a response rate of 44 % in the reporting year compared with 60 % in the previous year. In turn, 45 % (2021: 60 %) of participating suppliers reported pursuing goals related to deforestation issues and 55 % reported conducting deforestation risk assessments. For more information on the Forests category, see the section of the CDP website dealing with this topic as well as the current CDP results of Symrise in this category. For more information on the CDP Supply Chain program, please see GRI 2-23 and the Management approaches GRI 302, GRI 303 and GRI 305.

Six of the Symrise sites are located close to protected areas: these include our development center in Cotia, Brazil, and our plant in Vohemar, Madagascar. The first directly borders the Atlantic rainforest of Mata Atlântica. Due to its extraordinarily high biodiversity level, the area is considered one of the most important biodiversity hot spots in the world. This also applies to Madagascar, though the Symrise site in the Sava region is not located in a protected area. Our plants in Antrain in France (formerly Diana Food) and Beresfield in Australia (formerly Diana Pet Food) as well as our plants in Anniston, Springfield and Spencer (both formerly ADF/IDF, USA) are also located near protected areas. Following a detailed analysis of all relevant environmental aspects, there were no indications of any adverse impact on neighboring protected areas as a result of our operating activities at the sites in question.

Direct negative impacts on biodiversity can arise from the activities of Symrise AG only at our production locations, for example, through sealing the soil or emitting pollutants into the air and water. However, we consistently monitor, avoid and minimize emissions as part of our environmental and energy management.

That said, the main material impact of our core business on biodiversity is an indirect one, and mostly occurs in the supply chain – particularly through our suppliers’ generation of raw materials. This potentially includes instances where our suppliers deplete natural populations or terrestrial, forest and marine ecosystems through unsustainable cultivation methods for soil, forests or aquacultures. In accordance with our sourcing guidelines, our suppliers are enjoined to consistently avoid or minimize any potential negative impacts on biodiversity.

Owing to the complexity of the flow of biologically based materials, Symrise is unable to monitor changes to biodiversity at a species level. As part of our sustainability management, we continually assess the degree of biodiversity and ecological stress factors in the countries where our raw materials originate. We also assess the degree to which those species that contribute to our strategic raw materials could be endangered to find indications of possible biodiversity risks in our supply chains.

The most important lever of our company for protecting biodiversity and encouraging its sustainable use lies in environmental and ethically sustainable cultivation and sourcing practices. Wherever possible and within local ecological boundaries, we use our influence to support the sustainable cultivation of our biological raw materials. As part of targeted intervention projects in the Amazon region, on Madagascar and elsewhere, we are committed to preserving biodiversity directly – for example, through forest conservation projects or the implementation of sustainable cultivation methods, as with vanilla.

At present Symrise AG only uses small volumes of a few raw materials that are obtained from threatened species in accordance with the Washington Convention on International Trade in Endangered Species (CITES). Through corresponding sustainability verifications, strict use controls, efficient production processes and, last but not least, the development of suitable raw material alternatives, we concentrate on avoiding or minimizing negative biodiversity impacts on endangered species and natural populations.

Symrise cannot directly monitor changes in individual species or the ecological condition of those ecosystems that our suppliers deem relevant for generating raw materials.

Like other manufacturing companies, Symrise generates direct and indirect greenhouse gas emissions (GHG) that result in increases in the earth’s average temperature. This has far-reaching consequences for human life and nature: areas are being desertified and more flooding is occurring, resulting in famines and refugee movements. From the viewpoint of Symrise, climate change is leading to rising energy and raw material prices, as well as climate-related costs (through emissions trading, for example). Reputational damage could also result in the loss of business and a drop in our share price. At the same time, climate change offers opportunities, for example through the increased use of efficient technologies that also result in cost savings. Given the urgency of the climate dilemma, SDG 13 requires prompt measures for climate protection. The importance of the topic to all of our stakeholders is underlined by the result of our materiality analysis conducted in 2022 and the very high rating of “climate change mitigation and adaptation” for Symrise as well as its relevance and impact on external stakeholders.

Corporate Sustainability, supported by the Sustainability Board, is responsible for the topic of emissions reduction. The Sustainability Board meets several times per year to discuss, assess and report on climate-related data and developments. The goals and programs are determined by the Sustainability Board and approved by the CEO.

The Risk Management department assesses company-specific risks and opportunities related to climate change at least every six months and reports the findings to the Executive Board (see also GRI 2-22 and TCFD-Index).

The reduction of climate-damaging emissions is part of our environmental strategy and our environmental management. We demonstrate our progress regarding emissions reduction in a number of ways, including annual participation in the CDP independent investor initiative.

In the reporting year, Symrise once again delivered a convincing result in the CDP (formerly Carbon Disclosure Project) rating, with the highest A rating in all three categories climate, water protection and forest protection. Symrise is therefore one of only 13 companies worldwide on what is known as the triple A list. The A rating was achieved for the seventh time in the climate category.

We started the CDP Supply Chain program in 2017 to work with our suppliers on a more sustainable value chain. Our suppliers with the highest risk status on climate, water and forest protection were again requested to follow the CDP Supply Chain program in 2022. Strategic suppliers, in particular, are eligible for the program. As we defined significantly more suppliers as strategic in the reporting year, more suppliers than in the previous year were invited to participate in the CDP supply chain program. Given the increase in the number of suppliers considered, the response rate in the climate sector fell from 58 % in the previous year to 53 %. Of the suppliers than participated in the CDP Supply Chain program, 71 % (2021: 69 %) have set active emission reduction targets and 36 % have a decorbonisation plan that is aimed at a 1.5 degree scenario. 85 % (2021: 85 %) of the participating suppliers reported on their operational GHG emissions. In addition, many suppliers are in turn engaging their own suppliers on climate-related issues: around 69 % (2021: 61 %) of participating suppliers motivated their own suppliers to set goals. Improvements were achieved in the use of green electricity: around 37 % (2021: 18 %) of the electricity consumed by participating suppliers came from renewable sources and around 64 % (2021: 20 %) of participants reported renewable energy targets.

Symrise records the greenhouse gas emissions of its operating activities according to the internationally recognized Greenhouse Gas (GHG) Protocol Corporate Standard. We report on these according to direct emissions (Scope 1), energy-indirect emissions (Scope 2) and other indirect emissions (Scope 3). As of 2030, Symrise is committed to being climate-positive at all of its global production sites based on the Scope 1+2 emissions of the GHG Protocol. In 2021, in order to achieve its targets, Symrise devised a new Science Based Target aimed at a maximum global warming of 1.5°C, the highest possible level of aspiration at present. This target was validated by the SBTi in February 2022: by 2028, we aim to cut THG emissions (Scope 1+2) by 80 % compared to the 2020 level. By 2025, we also want to increase the eco-efficiency of THG emissions by more than 60 % on the 2016 level. In the reporting year, we were able to increase the eco-efficiency of GHG emissions (Scope 1+2), based on added value, by 10.4 % (2021: 11.3 %) thereby achieving our interim goal for 2022.

Symrise has also committed to reducing its Scope 3 emissions from purchased goods and services by 30 % on the 2020 value by 2030. This value is also a Science Based Target that corresponds to the highest possible level of aspiration at present and was also validated by the SBTi in February 2022. In the long term, Symrise is aiming to achieve net zero by 2045 (Scope 1+2+3). We also want to increase the eco-efficiency of Scope 3 emissions by 15 % on the 2020 level by 2025. Between 2016 and 2020, we succeeded in cutting Scope 3 emissions by 40 %.

We achieve our climate goals through various measures: since 2020, for example, we have demonstrably sourced our global external electricity requirements from renewable sources. Furthermore, we continue to review power purchase agreements (PPAs) and thus promote the energy policy. We are steadily enhancing energy and process efficiency at all production sites while supporting high-quality certified climate protection project all over the world. To effectively advance the attainment of our defined targets, we also launched a pilot project in relation to the Low Carbon Transition Plan (LCTP) at our Holzminden site in September 2022. The aims of the project are to define pathways to climate positivity by 2030 and to determine options for action. To this end, the focus is on the following five steps: first, a CO₂ start balance is created and the current situation is determined. This is followed by the recording of areas with CO₂ reduction potential for which measures have been planned (energy efficiency, process optimization, etc.). Additional CO₂ reduction potential is then determined (e.g. biomass/electrode boilers or high-temperature heat pumps). Next, on the basis of these three steps, goals and benchmarks for the documentation of target attainment by the target year of 2030 are defined. Finally, the economic impact on Symrise from the tightening of climate targets is examined in more detail. The project team is made up of a steering committee and a group which will work through these project steps by the end of April 2023. The global roll-out will take place when the pilot project has been concluded in Holzminden.

To accomplish the transition to a low-carbon economy successfully, the Taste, Nutrition & Health division initiated its Low Carbon Transition Project back in 2021. Headed by a group of internal experts, the aim of this program is to record 80 % of greenhouse gas emissions in the three divisions within two years, and to implement action plans as appropriate. In the course of the global roll-out of the LCTP, the project will be incorporated and consolidated at Group level.

Through various energy and process efficiency measures, we saved almost 54,000 metric tons of CO₂ equivalents in the reporting year (2021: 60,000 tons): these include our cogeneration plant at the Holzminden site, which reduces our emissions from energy generation by around 20,000 metric tons of CO₂ equivalents annually. By expanding our production capacities for synthetic menthol, we now avoid emitting around 30,000 metric tons of carbon dioxide equivalents per year. The reason for the high savings is the carbon footprint of the synthetic variant, which is approximately ten times smaller than that of natural menthol. Moreover, ongoing measures by our local Total Productive Maintenance teams are steadily replacing energy-intensive consumer equipment such as motors, ventilation and heating systems, compressed air systems and boilers for the production of steam and cooling with more efficient alternatives. We also consider emissions from logistics and packaging: our subsidiary Symotion in Holzminden, which is responsible for logistics processes, aims to reduce the use of diesel fuel by 2 % per transport unit every year. In 2021, we also converted all used packaging materials used by Symrise in Germany to carbon neutral: Symrise is currently evaluating eight projects aimed at preventing the emission of 50,000 metric tons of CO₂ equivalents in total within the next two years.

In 2022, we supported two projects in Brazil. In Portel Para, 150,000 hectares of threatened Amazon rainforest have been protected from deforestation, thereby safeguarding endangered species while preventing some 264,000 tons of CO₂emissions every year. In Belo Horizonte, meanwhile, electricity is being produced from a former landfill site. This is preventing the release of greenhouse gases (and especially methane) and therefore 112,000 tons of CO₂ emissions annually.

The cogeneration plant used in Germany is operated on gas. We have covered the share of gas needed to generate electricity completely from energy guaranteed to be from renewable sources. The electricity from the cogeneration plant therefore also proven to come from renewable sources.

To better understand where greenhouse gas emissions occur in the upstream chain and in the production of individual products, Symrise calculated product carbon footprints for onion powder and chicken powder in 2021. The analysis was performed in accordance with ISO standard 14067:2018 and the standards of the GHG Protocol. All activities from the production of raw materials to the finished product were considered. The analysis revealed that to produce one kilogram of onion powder, around 1.70 kg of CO₂ equivalents are emitted; for chicken powder, the figure is around 7.75 kg of CO₂ equivalents. In both cases, the majority of the emissions were caused by the production of raw materials and refrigeration. As part of its Low Carbon Transition project, Symrise intends to examine which measures can be used to efficiently reduce GHG emissions in its business operations in the future.

To advance environmental and climate protection in partnership with other stakeholders, Symrise is active in numerous initiatives and frequently joins new associations. Symrise is a member of the Alliance for Development and Climate, the RE100 Initiative, the Business Ambition for 1.5°C and the Alliance of CEO Climate Leaders. In the reporting year, Symrise joined The French Business Climate Pledge and the Exponential Roadmap Initiative, among others (for more on these and other initiatives and campaigns, see GRI 2-28).

With its SBTi emission reduction targets and its commitment to numerous initiatives, Symrise takes a pioneering role in climate protection in the flavor and fragrance industry and acts in accordance with the resolutions of the UN climate conferences and the recommendations of the current IPCC (see also GRI 201-2).

Scope 1 Emissions

Our production sites only use hydrofluorocarbons (HFCs) and perfluorocarbons (PFCs) in the form of refrigerants in refrigeration systems; these do not come into contact with our raw materials and products at any time. The coolants are filled by specialist companies for new systems and refilled during repairs. Symrise checks the use of alternative coolants when building new refrigeration systems and selects the appropriate coolant, taking account of ecological, health and economic aspects. To minimize the ecological impact of the refrigeration plants and to act cost-efficiently, Symrise uses existing functioning and leak-proof refrigeration plants until the end of their service life. In the 2022 fiscal year, Symrise recorded the volume of HFCs and PFCs used at the Holzminder location and is pursuing the medium-term objective of abstaining from climate-damaging refrigerants.

Scope 2 Emissions

^*The significant decrease since 2020 in comparison with previous years is due to the fact that Symrise has demonstrably sourced its global external electricity from renewable sources and offset the CO₂ emissions resulting from the use of steam through climate protection projects. This means that the volume of Scope 2 GHG emissions could be reduced to zero in 2022

Scope 3 Emissions

^*The carbon footprint of the Pet Food division (formerly Diana Pet Food) raw materials portfolio was reassessed in 2020 using the Product Environmental Footprint (PEF) economic allocation method to consider the recycling of co-products from the meat industry as part of the circular economy. This results in significantly lower Scope 3 greenhouse gas emissions compared to previous years because Symrise previously assessed its entire raw materials portfolio, including co-products, using the physical (volume-based) allocation approach. In the future, we will extend the use of the economic allocation method to other byproducts within our portfolio to fully reflect our corporate contribution to a resource-efficient economy.

Small differences in the totals may be present due to rounding.

^*The changes from 2022 compared to previous years in the areas of transportation to customers (road, rail and air) are mainly due to increased delivery volumes to customers.

^*Symrise currently reports its greenhouse gas emissions using a market-based method.

The intensity of GHG emissions (Scope 1+2) per € million value added totaled 182.1 tons in 2022 (2021: 203.4 tons).

^*Symrise currently reports its greenhouse gas emissions using a market-based method.

In 2022, the eco-efficiency of GHG emissions (Scope 1+2) increased per € million valued added by 10.4 % compared to the previous year (2020: 11.3 %).

Since 2013, we have analyzed our product portfolio and production processes for the use and development of ozone-depleting substances (ODS). The analysis showed that we do not produce any material ODS emissions.

Carbon dioxide accounts for the majority of our emissions. Other greenhouse gases, such as nitrogen oxide, sulfur oxide, ammonium, methane and volatile organic compounds (VOCs), are emitted only in limited, immaterial quantities from the production of our products.

VOC < 500 t/year

CH₄ approx. 48 t/year

NO_X approx. 2.8 t/year

The impacts of our activities on the environment range from the extraction and processing of raw materials to product development, production and logistics. On the one hand, we use natural resources in the form of raw materials and energy sources for our manufacturing processes. On the other, our business activities may cause the contamination of air, soil and water. In the global sustainability objectives, SDG 12 formulates goals for economic practices that respect the natural limits of the planet. The importance of “Use of raw materials and recycling solutions”, its relevance to Symrise and its impact on external stakeholders is also reflected accordingly once again in the very high rating of the topic in our materiality analysis conducted in 2022.

The corporate policy of Symriseprovides a fundamental direction for dealing with waste: the company prevents waste and replaces hazardous chemicals where technically and economically feasible. Symrise is constantly working to reduce negative impacts on the environment in product development.

Within our environmental management system, we monitor and evaluate the entire value chain. Worldwide, a senior manager is responsible for environmental management at each site, including the handling of waste. Those responsible lead the local environmental committees at the respective sites and regularly report to the CEO. The goal of the environmental management system is to avoid or reduce the impact of activities, products and services on the environment through a site-specific environmental program that complies with national and local legal regulations and provisions. In accordance with our environmental policy, the impact of various environmental aspects, including waste, is identified, assessed, monitored and reported on a quarterly basis. If necessary, measures are taken and their results monitored. In addition, our employees receive regular training in the proper handling of waste. In Germany, all employees received between three and seven hours of training per year, depending on their function. This training includes waste and environmental-related content in addition to quality and occupational health and safety.

Symrise also joined the 10x20x30 initiative in 2021. Ten of the largest food manufacturers and suppliers are members, which have each partnered with 20 of their key suppliers to reduce food losses in the supply chain by 2030. All participating companies aim to cut food losses and waste in half in their operations by 2030. They also measure and publish their food losses and waste inventories and take steps to reduce waste. For more information on memberships of other initiatives, see GRI 2-28.

Our goal is to conserve resources, consistently avoid or minimize the harmful effects on the environment, and prevent risks. Our production sites with the highest potential environmental impacts are either located in countries with strict environmental policies and/or operate according to an environmental management system that is ISO 14001 certified or based on this environmental standard. Additionally, the SMETA 4-Pillar requirements are used as a minimum standard and regularly verified by external auditors. This has been the case at our Symrise Legacy* production sites since 2010. In the reporting year, to prepare for the LkSG, we started registering all other Symrise sites** on the SEDEX platform, setting ourselves the aim of performing SMETA audits at all sites by the end of 2023. At present, 71 % of all sites are SMETA-certified. Our German sites in Holzminden (including the subsidiaries Symotion and Tesium) and the Symotion site in Hamburg are certified according to the ISO 50001 energy management system. Our Symrise Legacy production sites in the United States are also RC 14001 certified.

We also conform to the principles of the circular economy across the value chain: we aim to eliminate waste and environmental pollution, circulate non-renewable resources in cycles and extract renewable resources sustainably while regenerating nature. In specific terms, this means that raw materials need to be utilized as fully as possible and byproducts must be avoided. Moreover, all of the products that we manufacture need to be fully biodegradable regardless of their origin, and safely returned to nature following use. We take these goals into account in all of our projects, products and processes (see also our brochure “The future is circular and green. The circular economy as the basis for successful and sustainable operations”). In the extraction of biochemicals from byproducts, for example, our internally developed SymTrap® process allows us to extract natural flavors and fragrance ingredients from leftover aqueous phases. We also compost operational waste and byproducts and deploy these profitably in agriculture. Wherever possible, we also aim to use raw materials across several levels (“cascade utilization”). For example, we utilize byproducts and waste streams in the agricultural and food industries. We also use byproducts from meat production to make broths, powder and purified fats, for example.

For more information on our approach to potentially significant negative impacts from waste, as well as guidelines, goals and measures for waste reduction, see GRI 306-2.

^*Symrise Legacy includes all Symrise plants except for the sites of the former Nutrition segment.

^**Some of the missing sites will not be registered separately in the future, as they are branches of other sites or only a few employees work there (20 or fewer).

Our business activity – the development, production and distribution of fragrances and flavorings, cosmetics and functional ingredients – is associated with various waste-related impacts. For example, the supply of intermediate products and raw materials for our production generates various packaging materials, including HDPE and other plastics as well as aluminum and cardboard. Our R&D laboratories and production facilities generate organic and chemical waste, including hazardous waste, for example in the form of solvents or lubricants. Among other things, food waste is also generated in our cafeterias along with household waste and waste from disposed office materials. Our products are protected by packaging materials, some of which become waste after consumption but are increasingly recyclable. If residues remain after consumption of our products, these must be disposed of depending on the product characteristics and in accordance with country-specific requirements (if necessary as hazardous waste). We are not currently aware of any significant waste-related impacts from our business activities or our up/downstream value chain.

However, such impacts could arise if our hazardous waste is not disposed of properly, which is why we follow strict regulations on the handling of hazardous waste. We are also aware of the negative environmental impact of plastic waste and have started an initiative on the use of plastic to minimize our plastic consumption (see also Management approach to GRI 306 and GRI 306-2).

Symrise complies with all statutory provisions for waste disposal worldwide and only hands over waste to certified companies that can verify that waste is disposed of properly with the use of electronic procedures. The contracts Symrise enters into with waste disposal companies are reviewed by authorities and external auditing companies. In this way, Symrise prevents significant negative effects that could potentially arise from the incorrect handling of hazardous and non-hazardous waste. Our handling of hazardous waste is also reviewed by external audits as part of our ISO 14001 certification processes. This involves examining standard documents such as operational instructions, policies, processes and results.

Where technically possible and economically viable, we replace hazardous chemicals with environmentally friendly alternatives. We also mitigate other waste-related impacts through various approaches aimed at reducing waste and promoting the circular economy. These include our initiative on the use of plastics, the development of innovative production processes and products, and our Total Productive Maintenance program.

Since 2020, our goal has been to avoid waste more consistently in the future and maximize recycling within the scope of our initiative on the use of plastics. We aim to recycle more than 95 % of recyclable plastics by 2025, provided local capacities are available. Starting in 2025, 100 % of our packaging materials are to be sustainable. We also discontinued the use of single-use plastics at all sites in 2021. An interdisciplinary team comprising employees from technical purchasing, packaging engineers, and managers from sales and research and development is responsible for implementing the initiative on the use of plastics.

We also aim to increase the efficiency of sensitive waste by 4 % annually by 2025, or by a total of 60 % relative to the base year 2010. In the reporting year we succeeded in raising efficiency by 3.8 % (2021: 2.2 %), falling just short of our target.

One key means of reducing or reusing waste is the efficient use of raw materials. This is therefore a central part of the ongoing development of our manufacturing processes, encompassing, 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 material processing, thereby achieving a maximum resource yield that simultaneously saves energy. Although the higher yield of valuable substances is the main focus for us with this technology, the avoidance of production waste is nevertheless a positive side effect.

There is great potential for reducing food waste, especially in the Taste, Nutrition & Health segment. For this reason, the former Nutrition segment has defined two fields of action within its waste reduction strategy. First, in line with the goals of Symrise, the segment is committed to continuously reducing its waste production globally by 4 % annually by 2025 in relation to value added. Second, initiatives for processing byproducts are to be reviewed by the Business Incubation Group (BIG), a special innovation team in the Taste, Nutrition & Health segment. BIG includes what is known as platforms that address various topics and perform projects. One of these is the Side Streams Upcycling Platform. In addition, the Taste, Nutrition & Health segment set food waste reduction goals in 2021 based on World Resources Institute (WRI) guidelines and in line with SDG 12.3. The goal is to reduce food waste by 50 % by 2030 compared to the 2016 baseline.

To date, the Naturals business unit (formerly Diana Food) has processed its organic waste to make animal feed, cosmetics, compost and biogas. Currently, the business unit and the Side Streams Upcycling Platform are working to optimize the environmental, social and economic value of the byproducts generated. One result is that the byproducts generated at our French meat plant have been reduced by 30 % in three years in terms of value added. Currently, another program is focused on cranberry acid sugar, which is produced in our Canadian plant. Health-promoting active ingredients extracted from the sugar will be used for personal care in the future. The project aims to achieve a 20 % waste reduction in cranberry products from byproducts in terms of value added.

We also support the principles of the circular economy with product innovations and are working, among other things, continually to reduce the use of non-biodegradable polymers – for example, by reducing the wall thickness of the fragrance capsules by a factor of 10 compared to 2010. We also aim to develop fully biodegradable fragrance capsules, including the use of renewable fragrances. For more information on sustainable product innovations in the reporting year, see GRI 301.

Enhanced efficiency not only has negative environmental implications, but simultaneously cuts spending while displaying our Symchronize initiative in action. We joined forces with customers to develop this integrated supply chain management system, which serves to identify areas of action and issues with the potential for reducing not just our consumption of energy, water and resources but also our emissions. Within the framework of our Total Productive Maintenance program, we involve our employees in a targeted manner and learn from their proposals.

At the same time, our backward integration strategy is enabling us to extend our influence on waste-related impacts to originally upstream stages of the value chain. By taking over the production of high-volume cosmetic intermediate products from our suppliers, our Scope 1+2 emissions, waste and wastewater volumes are increased in the short term – but in the long term we reduce our Scope 3 emissions, reduce our waste volumes through process optimization and ensure proper disposal.

We require that our suppliers comply with sustainability criteria and, if necessary, have them externally audited (see Management approaches to GRI 204 and GRI 308 sowie GRI 308-1.

Symrise is challenged by the fact that waste disposal costs are continually increasing due to regulatory requirements and market changes in waste management. In addition, Symrise works with smell-intensive materials such as onions. It is not always possible to remove the smells even if containers are completely emptied, which is why our waste is rejected by some disposal companies. Owing to the cost-intensive and limited disposal options, Symrise sends up to 40 % (2021: 40 %) of waste with a high calorific value to a waste incineration plant.

For more information on the collection and monitoring of waste-related data, see Management approach to GRI 306.

Total Waste Volume: Hazardous and Non-hazardous Waste^*

^*Due to subsequent reporting and data adjustments, the values for 2021 were subsequently corrected slightly upward.

Total Waste Volume by Disposal Method^*

^*The waste volumes in this category originate from the acquisition of ADF/IDF and are therefore reported from 2021 onwards.

^**Disposal methods have been optimized so that more waste could be composted instead of dumped in 2021.

^***The significant increase in waste is due to the even greater increase in production volume at some Pet Food division sites.

See GRI 306-3.

See GRI 306-3.

For our portfolio of approximately 30,000 products, we use some 10,000 different natural and synthetic raw materials sourced from over 100 countries. As a result, we face an array of challenges ranging from the negative environmental effects of sourcing raw materials to protecting social standards in countries that experience, to some degree, problematic sociopolitical conditions. The reasons for this are largely due to inadequate transparency, the high level of complexity of material flows and the different objectives of the parties involved along the value chain. As a result of measures for responsible sourcing, we can contribute to the achievement of sustainable production patterns (SDG 12) as well as to the preservation of ecosystems (SDG 15). The high significance of “Environmental protection and biodiversity” and “Sourcing and human rights” to Symrise and its external stakeholders is accordingly underlined by the high to very high rating of the topics in our materiality analysis performed in 2022.

We are constantly adapting the organizational structure of our purchasing department to changing conditions on the market. Procurement at Symrise is organized in a decentralized manner in our Scent & Care and Taste, Nutrition & Health segments. This way we can manage purchasing processes in a more targeted manner and continually optimize the supply chain.

As from 2023, Symrise will be affected by the LkSG. To implement its own due diligence, the company set up the Responsible Sourcing Steering Committee (RSSC) (see also GRI 204). The RSSC is a decision-making body made up of representatives of the segments and the Corporate Sustainability department. The Committee defines the strategy for observing due diligence along with procedures for implementation. Operational implementation and the monitoring and tracking of defined measures with suppliers is carried out in the purchasing divisions. The RSSC is building on a solid foundation: we have been working for several years to ensure that suppliers comply with our sustainability standards through systematic supplier management.

The aim of the RSSC is to establish a coherent, sustainable and continually evolving management system for responsible procurement – a system that meets the expectations and requirements of our stakeholders, makes the supply chains of Symrise robust and safeguards human rights. In the reporting year, the RSCC adopted a Code of Conduct for suppliers (Responsible Sourcing Policy and Supplier Code of Conduct). A human rights policy for which the Executive Board is responsible has also been introduced. The policy, implemented globally by the Human Rights officer, includes a complaints mechanism for suppliers and other business partners. The integration of sustainability aspects into the qualification, evaluation and development of suppliers is also a key area of responsibility (for further information on the RSSC, see also GRI 2-23 and 2-24).

Our long-term goal is to source all materials and services on the basis of sustainable criteria. 2025 is our target for the responsible sourcing of all strategic biological raw materials. In the reporting year, we already sourced 87.6 % of our strategic biological raw materials sustainably (2021: 83.6 %). Alongside our sourcing guidelines, we have also established specific policies for various raw materials that are exposed to high risks (as in the case of palm oil).

Since we cannot solve many of the challenges in the supply chain alone, we increasingly rely on cooperative arrangements within the industry and competitive approaches in which we can work together with other players on long-term sustainable solutions. These include our memberships of the Roundtable on Sustainable Palm Oil and the Sustainable Spices Initiative (for further initiatives see GRI 2-28).

We can best achieve our goal of responsible sourcing if we can exert direct influence on the upstream stages of our value chain. Therefore, we pursue the goal of strategic backward integration for our key raw materials. As we demonstrated in the case of vanilla production in Madagascar, we can create immediate value for all participants. We are working purposefully to improve and implement environmental and social standards through joint projects, thus ensuring the consistent high quality of raw materials for our customers. With this integrated approach, we support local socioeconomic structures and directly monitor compliance with our principles. For the backward integration of our supply chain, we have established processes that also consider environmental and social risks.

Symrise has declared its goal to source all materials and services on the basis of sustainable criteria. As the starting point, prior to commencing any business activity, we expect our direct suppliers and business partners to sign our Responsible Sourcing Policy, which serves as a Code of Conduct for suppliers. New and alternative suppliers first undergo an internal evaluation process followed by an in-depth evaluation of inherent and specific sustainability risks, for which we have been using SEDEX and SMETA audits (4 pillars) for many years. In 2021, we started assessing other suppliers by means of the EcoVadis platform.

In view of the Supply Chain Due Diligence Law, we have expanded the goal for evaluating our suppliers. By 2025, the group of suppliers making up 90 % of our procurement volume will be assessed according to sustainability criteria. Accordingly, 87 % (2021: 72.7 %) of our suppliers, based on 90 % of the procurement volume, were assessed according to sustainability criteria in the reporting year. With regard to the German Supply Chain Due Diligence Act, we have started to identify the risks of all our suppliers, which we will report on in detail in the coming year.

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 2012, we have therefore encouraged our main suppliers to register with SEDEX and disclose their data. In 2020, we also started to include suppliers on the EcoVadis platform. In this way, we leverage the benefits of both platforms to identify risks and opportunities for our suppliers. Alternatively, agricultural production suppliers can indicate their FSA rating; we require at least FSA standard in silver or similar certification. The FSA seal (Farm Sustainability Assessment) stands for sustainably produced raw materials and is awarded by the non-profit organization SAI (Sustainable Agriculture Initiative).

In view of the Supply Chain Due Diligence Law, we have expanded the goal for evaluating our suppliers. By 2025, the group of suppliers making up 90 % of our procurement volume will be assessed according to sustainability criteria. Accordingly, 87 % (2021: 72.7 %) of our suppliers, based on 90 % of the procurement volume, were assessed according to sustainability criteria in the reporting year.

For more information on auditing human rights compliance in the supply chain see GRI 2-23 und 2-24.

We carry out audits for suppliers that pose an especially notable risk (as defined by SEDEX and EcoVadis), i.e. suppliers which have crucial raw materials or have had problems flagged in the assessment. In the reporting year, 138 supplier audits were performed by trained and experienced internal supplier audit teams. Additionally, we ask at least 50 suppliers annually to carry out SEDEX/SMETA audits by verified, independent audit agencies. SEDEX also sends us around 200 unsolicited SMETA audit reports from our suppliers. The focus here is on environmental issues in addition to product safety, quality management, work safety, health and social responsibility. If suppliers don’t meet our defined standards, we jointly develop and implement improvement measures. We can track the implementation of identified corrective actions from the audits through to verification in the SEDEX database. If these standards are still not upheld after such attempts, the business relationship is terminated as a last resort. No suppliers were identified as causing significant environmental harm in 2022.

The current SEDEX risk report shows that the data basis of some suppliers is not sufficient for a risk assessment. Among the supplier sites assessed, 86 % have low to medium sustainability risks. The suppliers with the highest risks are located in Mexico, China, India, Indonesia and Brazil. Risks were most often ascertained in the areas of occupational health and safety, inadequate management systems and labor rights.

Symrise intends to maintain its focus on active suppliers with a view to improving the data basis and thus gaining better insight into the risks while working with high-risk suppliers to bring about further improvements. There main emphasis here is on the areas of human rights and environmental risk. With regard to the German Supply Chain Due Diligence Act, we have started to identify the risks of all our suppliers, which we will report in detail in the coming year.

Globalization and digitalization are changing the working world on a global level, as are local demographic changes. As the basis for sustainable economic success, internationally active companies such as Symrise are challenged to attract the best employees through an attractive working environment, to develop those employees and to retain them for the long term. Target requirements regarding sustainable personal responsibility in the scope of humane employment are also included in SDG 8 of the global Sustainable Development Goals, to which we are actively committed. “Diversity and equal opportunity” and “Employee empowerment” are key topics, the impact of which – especially for Symrise itself – were included in the materiality analysis that was carried out in 2022. As a major DAX company, we are aware of our “social footprint” in relation to our own division, and in relation to our customers and suppliers.

Symrise has defined its human capital strategy, which is part of the company’s corporate strategy and has been integrated in the Symrise sustainability agenda under the “Care” pillar. Part of the “Care” pillar is the consistent orientation of HR policy on Symrise as a preferred employer (employer-of-choice strategy). The implementation of the human capital strategy and HR policy is the responsibility of the global HR organization, which consists of around 90 managers and is coordinated by the Corporate VP Human Resources. In the course of this process, we have focused our HR policy on five main areas:

1. Establishing a flexible, innovative and family-oriented work environment in which occupational safety is a top priority.
2. Creating a transparent, fair and motivational remuneration policy.
3. Offering attractive benefits such as a company retirement plan and a proactive health management program.
4. Furthering professional advancement, development and talent management with the same opportunities for everyone.
5. Creating a corporate and leadership culture that increases employee loyalty and values the integration of employee diversity.

This HR policy strives to create an environment for our employees in which they can realize their full potential and develop professionally. The goals we have taken on extend from ensuring a safe and healthy work environment with proactive in-house health management to an equitable remuneration policy with a variable, incentive-based component (see job grade concept with performance-based bonus element, GRI 2-21).

When they are hired, every employee receives an explanation of the policy of Symrise on dealing with violations of our Code of Conduct. For violations of our Code of Conduct, our employees can anonymously and confidentially contact the relevant Compliance Officer at their site, or call an Integrity Hotline managed by an external provider (for more on the complaints mechanism, see GRI 2-26).

Like other companies, we also have to tackle the task of positioning ourselves as an appealing company in regard to demographic changes. This also includes a high training rate. As of December 31, 2022, a total of 126 apprentices and trainees (2021: 125) were employed at our sites in Germany. This corresponds to a training rate of around 4.2 % (2021: 4.3 %).

To train our next generation of managers, we regularly conduct assessments and training sessions, and our Leadership Accelerator Program. We are currently engaged in a selection process with external suppliers for our new international segment-spanning leadership program, which we will launch in 2023 with a number of pilot projects. We pay attention to a high participation rate of women to specifically promote the proportion of female senior executives in our organization.

We view the participation of employees in corporate development in the form of employee surveys (see also Management approach to GRI 202) as an important component of participatory management; this also helps to position us an employer of choice.

In April 2022, our agreement on “flexible working from home” for employees of Symrise and our subsidiaries Symotion and Tesium came into force. Working from home is voluntary and is usually possible up to two days a week; in exceptional cases, home working may be more frequent or permanent. The option of working from home is open to all employees at our sites in Germany. Employees working from home permanently receive a monthly expense allowance.

Also in 2022, we introduced bicycle leasing for employees of Symrise and our subsidiaries. One aim of this is to help them keep fit, healthy and relaxed; at the same time, we are protecting the environment and reducing CO₂ emissions on the commute to and from work. Bicycle leasing promises flexibility, both in traveling to and from the workplace and in private usage. Low rates, preferential taxation and zero fuel costs add up to a financial advantage for employees. We also pay the insurance and maintenance costs. Since it was introduced in November 2022, the scheme has attracted widespread uptake, with more than 200 orders placed by the end of the reporting year.

The number of employees for the 2022 fiscal year increased by 5.6 % compared to the figure for the end of 2021 (2021: 1.9 %). The global fluctuation rate at Symrise is 11.5 % (2021: 6.4 %). Significant differences can be observed here among the individual countries. While in Germany the fluctuation rate amounts to only 5 % (2021: 2.3 %), it is relatively high in Latin America at 21.2 % (2021: 6.6 %), although this is typical for these rapidly developing countries.

Employee Turnover by Region and Gender^*

^*Basis: Core workforce and fixed-term employees, without apprentices and Probi; figures as of December 31 of the respective year; turnover rate = number of employee-initiated terminations x 100 divided by the annual average number of employees

Omissions:

Regarding employee turnover, we see neither gender- nor age-specific trends. The age groups affected by turnover correspond to the overall structure of our workforce. A detailed breakdown of the turnover rate by age therefore does not make sense for Symrise. Age and gender are not deciding factors when hiring new employees. Accordingly, disclosures on newly recruited employees by region, gender and age are not material to Symrise and are not listed.

Workplace accidents caused by safety lapses and work-related illnesses, for example, through stress or inadequate ergonomic workplace design, lead to individual strains and may negatively affect the motivation of individual employees or teams. They result in sick days that are expensive for the company, reducing productivity. Therefore, the consistent emphasis of our HR policy on being an employer of choice also includes caring for employee health in the workplace. In doing so, we actively support the achievement of the goals of health and well-being (SDG 3) as well as humane working conditions (SDG 8). “Occupational health and safety” is an essential topic and its effects, in particular on our external stakeholders, were accordingly included in the materiality analysis carried out in 2022.

Our subsidiary Tesium pools our expertise in the areas of technology, safety and the environment, ensuring the highest environmental standards are met in all business divisions. All our sites worldwide follow obligatory Corporate Guidelines that contain an approach to the safety of systems, the protection of employees and the environment, which have been coordinated with the Executive Board. Because local situations and needs vary, the specific measures to be implemented at the individual sites are guided by on-site systems and working groups.

Health and safety topics at Symrise are also governed by the Code of Conduct which applies throughout the Group. In addition, the collective bargaining agreement, which was negotiated with the trade union IG BCE (mining, chemical and energy industrial union) and which applies to Symrise in Germany, contains regulations on workplace design and occupational health and safety. The agreement also governs cooperation between company management, the works council and the union on matters pertaining to protecting the health of our employees.

We have arranged a comprehensive system of measures at all our sites, with written behavioral guidelines offering assistance in identifying possible hazards. The guidelines also regulate how we handle hazardous substances. A complete list of all chemicals used at a particular site, including their corresponding safety data sheets, is provided at each site in the local language. Each production site has its own occupational health and safety committee, which includes both management and other employees. All employees undergo health and safety training courses specifically designed for their given activities. Appropriate first-aid facilities are available in the event of an emergency.

The effectiveness of our measures is regularly evaluated by internal audits based on ISO 19011. Regular external audits by customers, authorities and independent certification companies further verify the constant improvement of our management systems. In addition, we have a monthly reporting system that indicates the status and performance of our occupational safety efforts.

We developed the Symsafe project in 2021 with our subsidiary Tesium to improve occupational health and safety performance. The focus is on a sustainable safety culture. This includes empowering every employee to recognize sources of danger and to act on their own initiative. The intention is to raise the safety awareness of all employees (including contractors) while reducing the number of workplace accidents and lowering the accident rate MAQ (workplace accidents [> 1 lost day] x 1 million/working hours). These goals are implemented using a roadmap containing measures, tools, rules and guidelines. We identified six topics as a basis for this endeavor. They indicate which areas are part of a sustainable safety culture, namely communication, participation, error culture, leadership, safety organization and teamwork. Furthermore, we developed eleven Symsafe rules. They define how we work together, how we design the path to a sustainable safety culture and which values guide us in the process.

The conduct of training to increase awareness of occupational safety is a personal target agreement for managers. In addition, there is a series of legally required annual training courses on health and safety, which is mandatory for every employee. As a result of these measures, among other things, our accident rate (MAQ) was 2.8 in 2022 (against 3.0 in 2020 and 3.8 in 2021). We are still aiming to achieve an industry-leading MAQ of <1.5 by 2025.

Our 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.

As regards COVID-19, our measures are based on the coronavirus regulation of Lower Saxony as well as the applicable local and national provisions. An in-house crisis management team reviews and adopts binding regulations.

We are committed to regular training and continuing education programs on the topic of health, just as we promote diversity among the workforce and help employees balance their professional and private life. Information on healthy nutrition and healthy sleep patterns as well as a range of massage options round out the preventative measures. Through the Symhealth awareness-raising and intervention program, we help our employees take a conscious approach to their health, for example through targeted “stop smoking” initiatives. Symhealth was piloted in Germany in 2021. From 2023 onward, it will gradually replace the old SimplyHealthy program worldwide.

We are aware that Symrise employees can be subject to work-related illnesses, including strains to the back or musculoskeletal system or psychological stress. At both senior corporate level and through our local operational health teams, we are working hard to minimize the existing risks and introduce specific measures. We monitor absences through monthly reports on absenteeism. We use average sick leave for the company health insurance funds of the chemical industry as a benchmark for evaluating sick leave in the company. Sick leave at Symrise is at an average level for the chemical industry under corresponding working conditions, such as shift work. We can therefore conclude that the situation at Symrise is normal with regard to sick leave.

In the taste and fragrance industry, the handling of hazardous substances is part of the daily routine. Symrise documents the resulting risks and, by means of globally recognized risk minimization plans, ensures safe and secure workplaces and safe and healthy working practices for all employees. Furthermore, we ensure no one suffering from a cold may work in food production areas.

Legally required risk assessments govern safe work in all workplaces. In Germany, a risk assessment is required by Sections 5 and 6 of the Work Safety Law. Risks must be identified, and the occupational safety measures taken to improve safety and safeguard the health of employees must be defined. Local laws must be observed at all locations worldwide. For countries in which no corresponding laws exist or the requirements for safety and the protection of health are less stringent, Symrise complies with the relevant standards of taste and fragrance associations (IFRA, IOFI, FEMA). The risks must first be identified for production and mixing areas as well as laboratories. The potential risk posed by raw materials is obtained from publicly available sources or suppliers (Material Safety Data Sheets (MSDS), toxicology studies, etc.). Product safety experts (toxicologists) evaluate new perfume oils, flavors and cosmetic ingredients produced by Symrise employees and make the evaluations available to Symrise employees and customers in the form of an MSDS. Documented exposure measurements in the affected areas, including handling (stirring, heating, cleaning, etc.), are essential to risk minimization.

If hazardous materials cannot be replaced, technical measures (closed systems, extraction systems) and personal measures (access control, personal protective equipment) must be taken in every case.

As a rule, regular targeted training sessions and legally required medical examinations are offered. The effectiveness of measures is reviewed through routinely conducted audits and during medical examinations.

The number of workplace accidents per million working hours is measured using the MAQ indicator.

Further information can be found in Management approach to GRI 403.

Risk identification and assessment are part of our corporate policy and apply around the globe. The policy defines global minimum standards for occupational health and safety. It does not replace country-specific legal regulations that must always be observed independently of the policy.

The risk assessment is updated at least once a year, and also in case of changes or newly identified risks. We identify dangerous activities and situations in the workplace by means of safety visits and audits. Every incident is investigated so that managers, employee representatives and colleagues know how to prevent accidents.

Further information can be found in Management approach to GRI 403.

Our goal is to identify, eliminate or mitigate all potential sources of danger for our employees. This applies to Symrise employees and workers who are not employees, but whose job and/or workplace is controlled by Symrise. In cases of injuries, it is also in our interest that we contribute to a rapid and complete recovery. As legally required, Symrise has concluded contracts with doctors, nurses, first responders and other trained and licensed healthcare specialists.

Every safety incident is reported internally and analyzed, with corrective measures subsequently defined. The attending occupational health services respect our employees’ right to privacy. The confidentiality of employees’ personal health-related information is guaranteed in accordance with specific local provisions.

Further information can be found in Management approach to GRI 403.

Issues of health and occupational safety at Symrise are regulated by our Corporate Guidelines and Code of Conduct that apply around the globe. In addition, the collective bargaining agreement, which was negotiated with the trade union IG BCE (mining, chemical and energy industrial union) and which applies to Symrise in Germany, contains regulations on workplace design and occupational health and safety. The agreement also governs cooperation between company management, the works council and the union on matters pertaining to protecting the health of our employees. This agreement applies to approximately 3,000 Symrise employees in Germany.

Company management, the works council and the union cooperate closely to protect the health of our employees. The relevant regulations described in the Code of Conduct are implemented worldwide via occupational safety committees. SOS inspections and security training sessions are held at regular intervals. Disclosure GRI 403-1 describes our approach, taking into account legal obligations.

All Symrise AG employees are entitled to a workplace where they do not have to worry about their health and safety. Every year, a large number of programs and measures that help to ensure occupational safety are enacted at our sites around the world. Because local situations and needs vary, the specific measures to be implemented at the individual sites are guided by on-site systems and working groups.

There are occupational safety committees at all our locations where we have production sites. The committees meet regularly and exchange information on safety measures and the avoidance of workplace accidents. The heads of the production sites are members of these committees. Minutes of the meetings are always distributed to management.

Our subsidiary Tesium pools our expertise in the areas of technology, safety and the environment, ensuring the highest environmental standards are met in all business divisions. Binding corporate guidelines, which include an approach that has been coordinated with the Executive Board for the safety of systems as well as the protection of employees and the environment, apply to all our sites around the world. Regular training sessions on the topic of occupational safety are mandatory across the Group (see also Management approach to GRI 403).

We also launched the Symsafe project in 2021 and pushed ahead with its widespread introduction, working closely with the segments and divisions in the reporting year. The goal is to develop a successful safety culture and to be accident-free for the long term. We rely on the participation and feedback of all employees (see also Management approach to GRI 403).

Occupational health and safety training sessions are offered to all employees, both on site and online. In the reporting year, for example, each employee in Germany received an average of 4.56 hours of training (2021: 4.5) on the topics of quality, the environment and hygiene, with a focus on occupational safety and the prevention of injury risks. New employees are initially trained in face-to-face sessions on site so that they thoroughly understand the general content and can learn about specific work-related dangers, hazardous activities or dangerous situations. We also introduced a comprehensive range of e-learning training sessions on the basic principles of safe working in the reporting year.

Training courses are also provided for employees who work in certain work-related hazard areas, including safety in workplaces with fall hazards and forklift operator training. Training for employees who work in offices or administrative areas is frequently conducted via online sessions.

Training logs are recorded in IT systems. These are used to administer all training sessions and to maintain an overview to ensure each employee is trained annually and plans are made for subsequent years.

Training is offered free of charge and conducted during working hours, if possible. It is offered in the local language, or in a language that is easy for participants to understand.

Through the Symhealth awareness-raising and intervention program, we help our employees take a conscious approach to their health, for example through targeted “stop smoking” initiatives. Symhealth was piloted in Germany in 2021. From 2023 onward, it will gradually replace the old SimplyHealthy program worldwide.

Free “health weeks” are offered to Symrise employees around the world to raise their awareness about health and to inform them that they have access to round-the-clock non-occupational health services and care.

The offers range from preventive measures on the subject of stroke and heart attack and osteoporosis screening to cycling events and measures to promote a healthy work-life balance.

Also in 2022, we introduced bicycle leasing for employees of Symrise and our subsidiaries Symotion and Tesium. One aim of this is to help them keep fit, healthy and relaxed; at the same time, we are protecting the environment and reducing CO₂ emissions on the commute to and from work. Bicycle leasing promises flexibility, both in traveling to and from the workplace and in private usage. Low rates, advantageous taxation and zero fuel costs add up to a financial advantage for employees. We also pay the insurance and maintenance costs.

Numerous employees have taken up the offer since it was introduced in November 2022: by the end of the reporting year, more than 200 orders had been placed.

Depending on the case, we use a specific approach in order to avoid or mitigate the negative impact on occupational safety. For example, in the case of the transport of samples, fire protection or the handling of hazardous materials, specific provisions exist regarding responsibilities, hazard identification and the protective measures to be observed in order to eliminate potential risks for all participants. Each delivery of a sample or a larger order is accompanied by safety data sheets, which serve to communicate safety-related data on substances and mixtures and inform our customers about the safe handling of our products.

Symrise has implemented a worldwide occupational safety management system, which applies to all Symrise employees as well as workers who are not employees but whose job and/or workplace is overseen by Symrise. Corresponding corporate guidelines on this system were defined and apply to all sites, subject to local legal regulations.

Our management system is reviewed annually by internal audits and certified by external auditors at selected sites. The majority of our products in the Scent & Care and Taste, Nutrition & Health segments are produced at sites that have been certified according to sustainability criteria (SEDEX/SMETA) and have thus also been checked for compliance with occupational health and safety standards (see also GRI 2-24).

Symrise is working hard to reach its ambitious goal of an MAQ < 1.5 by 2025. This is why we monitor absences due to work-related and non-work-related illnesses and injuries through monthly reports on absenteeism. We use average sick leave for the company health insurance funds of the chemical industry as a benchmark for evaluating sick leave in the company. The rate of paid illness-related absences of Symrise AG employees in Germany amounted to 6.4 % in 2022 (2021: 4.5 %). Accordingly, we are below the absenteeism rate for the chemical industry of 7.2 % (2021: 4.9 %; information provided by the German umbrella organization of company health insurance funds/chemical industry). No traffic accidents involving Symrise or Symotion were reported in the reporting year.

^* Employees worldwide;
MAQ = Accidents subject to reporting requirements (>1 work day) x 1,000,000/working hours
USQ = Sick days x 1,000,000/working hour

We are aware that Symrise employees can be subject to work-related illnesses, including strains to the back or musculoskeletal system or psychological stress. The most frequently occurring types of physical injuries in 2022 involved back pain, muscle disorders and injuries caused by twisted ankles, tripping, falling, sprayed liquids and injuries due to the handling of tools and vehicles. At both senior corporate level and through our local operational health teams, we are working hard to minimize the existing risks and introduce specific measures. We monitor our absences due to work-related and non-work-related illnesses and injuries through monthly reports on absenteeism. We use average sick leave for the company health insurance funds of the chemical industry as a benchmark for evaluating sick leave in the company. The rate of paid illness-related absences of Symrise AG employees in Germany amounted to 6.4 % in 2022 (2021: 4.5 %). Accordingly, we are below the absenteeism rate for the chemical industry of 7.2 % (2021: 4.9 %; information provided by the German umbrella organization of company health insurance funds/chemical industry).

In the taste and fragrance industry, the handling of hazardous substances is part of the daily routine. Symrise documents the resulting risks and, by means of globally recognized risk minimization plans, ensures safe and secure workplaces and safe and healthy working practices for all employees. Furthermore, we ensure no one suffering from a cold may work in food production areas.

The tolerance limits of workplace exposure pose tremendous challenges to our employees who work with hazardous materials. Wherever possible, Symrise reduces the risk of exposure. Hazardous materials in recipes are replaced if possible or at least reduced.

Symrise introduced hygiene measures early on during the coronavirus pandemic. As a result, employee infections worldwide were reduced to a minimum.

Omissions:

Symrise does not have an illness reporting system for occupational diseases covering all employees of the Group and external employees, whose job and/or workplace is overseen by the company.

Symrise places special emphasis on educating young people. To this end, we recruit qualified young individuals who we train with our company's specific needs in mind. With this approach, we also fulfill an obligation that society as a whole holds toward the next generation. In addition, we strengthen the labor market capabilities of our employees through our efforts in the areas of professional training and career development, which include our “Grow” development process. In this way, we are making a decisive contribution to SDG 4 and SDG 8 of the United Nations. Education is a valuable asset for all people. Based on this value assessment, “employee empowerment” at Symrise was included in the materiality analysis carried out in 2022.

Professional advancement and development, one of five key topics in the HR policy of Symrise, is the responsibility of Human Resources (see Management approach to GRI 401).

As of December 31, 2022, a total of 126 apprentices and trainees (2021: 125) were employed at our sites in Germany. This corresponds to a training rate of around 4.2 % (2021: 4.3 %).

The training takes approximately three years. All trainees are taken on at least temporarily after completing their training, if they meet our minimum requirements regarding the material learned. With our investment in training, we are meeting the demand for future specialists in chemical production and in the laboratories as well as in commercial, marketing and sales functions. Based on their specific knowledge, we are currently training five distillers and two food technology specialists for our beverage area.

We have structured our training capacity so as to allow around 45-50 young people to begin their training at Symrise every year. Of these, 24 are trained for chemical-technical professions, another 10 or so for technical and logistical occupations and 10 more young people for commercial and IT occupations. Some of the commercial trainees are also trained at our European sites as part of their training. In 2022, the magazine Capital once again awarded us the title of one of “Germany's best trainers 2022”.

Through initial training, we open up prospects through dual studies in the business area (currently 15 (2021: 15) employees from all three years are studying for a Bachelor of Business Administration).

In addition, we qualify our employees via comprehensive training measures. We also launched a global talent management platform in 2021. The platform provides an opportunity to register for training, courses or conferences – to overcome the challenges of a growing company and prepare for new positions. At the same time, employees can manage their individual development plans digitally. Symrise encourages open dialogue between senior executives and employees about the strengths and potential development of the individual.

Our employees are always engaged in lifelong learning. German language instruction has played a particularly important role in integrating foreign employees. We also offer online English courses, among other things, for our production employees and for the employees of Tesium, so that they can use international work instructions. Occupational safety training and the handling of hazardous substances make up a large part of the international range of training courses offered. Management training courses are also offered in all regions, supplemented by coaching and mentoring measures.

In addition to traditional training programs, we train our employees via international assignments. In 2022, the number of international assignments remained at a high level with around 110 (2021: 116) employees posted abroad.

Our commitment to training and staff development measures is paying off for us as a company: today we are recruiting the next generation of top-level managers almost exclusively from our own ranks. Our guidelines allow for 80 % internal recruitment, while 20 % can be recruited from outside the company.

At our flavorist and perfumer school, we are constantly developing experts who are trained for around three years before being successfully placed into our product development teams. In addition, our employees have a wide variety of opportunities for completing an extra-occupational bachelor’s, master’s or doctoral degree through cooperation agreements with universities, academies and institutes.

In principle, Symrise pursues a strategy of qualifying our employees for their daily work through comprehensive training measures. Our employees should uphold lifelong learning throughout their careers.

The following hours of learning were completed via our learning platform:

^*Must be entered by the employee, so the real number is likely to be higher.

The focus at present is on more face-to-face training sessions, which are in heavy demand following the coronavirus pandemic. More internally developed eLearning courses will also be offered.

In addition to traditional training programs, we train our employees via international assignments. In 2022, the number of international assignments remained at a high level with around 110 (2021: 116) employees posted abroad, although here too the decline in assignments was due to pandemic-related travel and visa restrictions.

We are also investing more in the training of future specialists. For one thing, we accepted 45 young people for initial apprenticeship training in 2022 (2021: 42). For another, in cooperation with the local job center, we have trained unemployed individuals from outside the field as chemical production specialists. This apprenticeship training lasts about two years. In 2019, we launched a new initiative to train 14 people who completed their apprenticeships in 2021 as chemical production specialists. We are hereby pursuing our social responsibility to provide educational opportunities for those groups of individuals leaving school who otherwise would not have been given a trainee position and who, as unskilled workers, would only have been employed in auxiliary work.

As of December 31, 2022, a total of 126 apprentices and trainees (2021: 125) were employed at our sites in Germany. This corresponds to a training rate of around 4.2 % (2021: 4.3 %).

Symrise consistently orients the qualification of its employees toward professional and work-related skill sets. As a result, each employee receives skills-oriented feedback as part of their annual performance review. The underlying skills here are entrepreneurial spirit and leadership, creativity and innovative spirit, business and customer focus as well as integrity and sustainability. The supervisor also provides constructive professional career development feedback.

In addition, we have defined function-specific expertise for departments like Sales and Purchasing.

We base our development assessment on a skills matrix, which is specially designed for managerial development and evaluates transactional and transformational leadership skills. The agreed development plans are kept on our digital talent management platform, which is connected to our learning opportunities.

In our talent review and in the succession planning process, we link the individual career ambitions of individual employees with the organizational development of our divisions. For this purpose, we have defined key positions in the company that are essential to the business, for which we systematically identify and develop potential successors as part of career planning.

Globally, our training activities are pooled under the Symrise Academy, which consists of four strategic pillars (see also our Management approach to GRI 404):

• Flavorist and perfumer school
• Technical/specialist training for our employees
• Training for sales personnel
• Development of managerial staff

Our flavorist and perfumer school has enjoyed great success around the world. Every year, young employees complete their training as junior flavorists or perfumers. We currently have six (2021: six) candidates at our perfumer school and four (2021: five) candidates at our flavorist school who are completing their training.

Our Future Generation Leadership Program provides our next generation of managers for senior leadership positions through tailor-made training opportunities. This training, which has been devised in partnership with a European business school, takes around 18 months. We are also working with external suppliers to develop a new international segment-spanning leadership program, which we will launch in 2023 with a number of pilot projects.

At the same time, we employ methods such as coaching and mentoring as professional development tools. Mentors are in a unique position to pass on valuable experience to their (mostly younger) mentees. Furthermore, suitable managers from various divisions are trained as coaches so they can act as sounding boards for employees who are taking on career challenges. We also want to develop the personal skills of our employees in the sense of lifelong learning. For this reason, we offer a diverse continuing educational program that ranges from safety training and language courses to project management and IT classes. In doing so, we link our information and training program with our in-house health management.

We assist employees who are leaving the company with their transition phase, depending on their reason for leaving the company. If an employee is leaving because they have reached the regular retirement age, then they receive a pension, which was built up with company support, in accordance with the local legal and operational provisions. If the employee’s position has been terminated due to operational reasons, Symrise guarantees a severance package that conforms to local statutory and company standards as compensation for the job loss. If the employee leaves the company for personal or performance-related reasons, Symrise assists this employee on a case-by-case basis by offering outplacement services for adjusting to the job market and finding a new job.

Symrise conducts an open and honest dialogue with its employees on a global basis. To do this, we have established performance reviews. All 9,000 or so employees of the worldwide Symrise Group receive feedback once a year regarding their performance and the skills they use to achieve their goals. Based on this feedback, individual development goals are established by the supervisor and the employee for the following year and documented in a development plan.

Our performance and talent management software program, which has been introduced worldwide, supports this process. Currently 9,800 active employees are registered in this system with their performance and development activities. Through the system, we help our supervisors manage their staff development work efficiently.

In our production areas, the performance review is conducted on a team-wide basis outside the software tool.

Since all Symrise employees (100 %) who receive variable remuneration take part in annual performance reviews with their supervisors regardless of gender, and given that the reviews also reflect personal career development, a breakdown by gender is not necessary.

The demographic development trend in many countries toward an aging society, and a diversification of the population and thus the working workforce by people from other cultures and educational systems, are changing our living and working environments in many ways. People from over 60 nations work in the Symrise organization alone. For us as a global company, diversity is an added value of creative and innovative cooperation in diverse teams. Equal opportunities are more important than ever, and promoting diversity is central to the success of the company. Both topics emerged from the 2022 materiality analysis as a key issues for Symrise and its external stakeholders.

A sustainable HR policy is part of our corporate strategy (“Care” pillar); it conveys goals and establishes common values. The policy includes promoting diversity in the workplace, supporting young families through a family-oriented HR policy and enhancing the compatibility of professional and private life (see also GRI 405-1). To this end, the Executive Board of Symrise articulated a clear commitment to the advancement of diversity in 2017 (see the diversity statement of the Executive Board). The human resources department and its human capital strategy are responsible for developing and implementing our strategic HR policy objectives. We are currently developing a concept aimed at promoting diversity in more specific areas.

We put our commitment to diversity into practice with specific measures. These include our family-oriented HR policy to support young women and their families, and a project specifically aimed at promoting these women through initiatives such as the Female Leadership Development Program. We also offer a mentoring program and focus on the targeted recruitment of women with equal qualifications. Our quantitative goals and current diversity indicators can be found at GRI 405-1.

At the same time, in signing the Women’s Empowerment Principles, we have recognized the principles of equal opportunity for women around the world and established these as a guideline for all our managers worldwide. In addition, our Integrated Management System is based on the provisions of the SA 8000 social accountability standard, which is binding throughout the company. This standard is based on the conventions of the International Labour Organization (ILO), the Universal Declaration of Human Rights and the UN Convention on the Rights of the Child. Humane working conditions, decent employment and due consideration for the social aspects of employment are the foundation of our actions at all sites.

For violations of our Code of Conduct – and thus in the event of discrimination perceived by employees and other concerns relating to diversity and equal opportunity – our employees can anonymously and confidentially contact the relevant Compliance Officer at their location or call our Integrity Hotline (for more on the complaints mechanism, see GRI 2-26).

We also promote cultural diversity through our nine expatriates from foreign countries and who for a period here in Germany with work permits. Our organization had around 110 expatriates worldwide (2021: 116) at the end of 2022.

Every year, we conduct analyses at all our major sites to prevent gender-specific disadvantages in remuneration. In addition, to review gender equality in the area of remuneration, an in-depth equal pay analysis was carried out in Germany in 2021. The unadjusted gender pay gap is 1.2 %. In 2021, the non-profit FPI Fair Pay Innovation Lab under the patronage of German Labor Minister Hubertus Heil recognized Symrise for its fair pay with its Universal Fair Pay Analyst certificate. In the course of certification, measures aimed at advancing fair pay at Symrise were devised.

Overall, we did not determine any gender-specific discrimination of women at Symrise. In 2022, we did not receive any requests (2021: none) to review remuneration in accordance with the German Transparency in Wage Structures Act. Nevertheless, overall social trends can lead to individual differences in the absolute level of remuneration. For example, it is primarily women who work part time and therefore earn less than men who work full time. Fewer women also pursue careers as chemists, who work for us in production and receive additional production-specific remuneration for shift work and hardship allowances as well as foremen’s and shift bonuses. As a result, the remuneration of men employed in production is higher than corresponding remuneration for women in the same pay category.

As part of our managerial development and succession planning, we develop and encourage women through specific coaching and mentoring aimed at achieving a higher proportion of women in management positions, including in the Executive Board. By 2025, we aim to have at least 30 % women at the first global management level directly below the Executive Board; the second global management level should consist of at least 45 % women. In 2022, the proportion of women in the first management level was 16 % (2021: 20 %); at the second management level, the proportion of female managers was 37 % (2021: 38 %). The decline on the previous year's level is attributable to the fact that the Flavor and Nutrition segments were merged to form a new Taste, Nutrition & Health segment in the 2021 fiscal year. This has reduced the absolute number of management positions at the first and second management levels below the Executive Board. Symrise is maintaining its goal of raising the proportion of women in the first management level to 30 % and in the second management level to 45 % by 2025.

Our annual diversity data reporting, which takes into account our large sites and thereby approximately 67 % of our workforce (around 8,000 employees), documents the progress of our HR diversity policies.

Data collected in 2021 revealed the following result from the development of the D&I agenda in Brazil: 49 % of managerial positions are held by women, 43 % of new appointments in 2021 were women and 47.5 % of promotions were given to women. From an intersectional perspective, considering skin color, ethnicity and gender: between 2019 and 2021, we increased the number of women of color at Symrise by 45 %.

To improve the work-life balance, Symrise is exploring the possibility of part-time work for all employees in Germany – regardless of department or position. Part-time jobs have also been created in the shift areas to offer alternatives to employees. This opportunity has been met with widespread uptake, with spots always occupied. To support employees with childcare, we have reserved places for employees' children at the nearby daycare center. We also allow short-term paid leave of two days to care for seriously ill family members in an employee’s own household, as well as the option of taking caregiver leave as full or partial unpaid leave of up to twelve months. Furthermore, we grant time off for various occasions such as marriage, relocation, honorary positions or educational leave.

Symrise consciously embraces a HR policy that views diversity in the workplace as a driver of creativity and integrity. This is why we have committed ourselves to several Group-wide projects that promote diversity. We also provide targeted support to individual women in senior leadership positions through coaching in order to prepare them for executive positions. By 2025, we aim to have at least 30 % women at the first global management level directly below the Executive Board; the second global management level should consist of at least 45 % women. In 2022, the share of women at the first level of management beneath the Executive Board was 16 %, compared to 20 % in the previous year, and 37 % at the second level of management, compared to 38 % in the previous year. The decline below the level already achieved is attributable to the fact that the Flavor and Nutrition segments were merged to form a new Taste, Nutrition & Health segment in the 2021 fiscal year. This has reduced the absolute number of management positions at the first and second management levels below the Executive Board. Notwithstanding this, Symrise is maintaining its goal of raising the proportion of women in the first management level to 30 % and in the second management level to 45 % by 2025.

In the long term, Symrise AG aims to achieve a 20 % share of women on the Executive Board. Measures related to specific persons have been agreed between the Supervisory Board and the Executive Board to promote potential candidates. 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 2024 to 2025.

Our annual diversity data reporting, which takes into account our large sites and thereby approximately 67 % of our workforce (around 8,000 employees), documents the progress of our HR diversity policies.

According to the latest diversity report, women continue to make up approximately 40 % of our workforce today (2021: 39.5 %). When it comes to new appointments from outside the company, women are well represented with 43 % (2021: 42 %) of total new appointments. In our fragrances area in particular, the proportion of newly employed women remains above average at 55 % (2021: 55 %); in the area of flavors and food supplements it stands at 38 % (2021: 36 %).

Gender diversity is also evident in our internal promotions, with women accounting for 48 % of all promotions (2021: 45 %). Our fragrances area also stands out here with an above-average share of 52 % (2021: 54 %). Women account for 39 % (2021: 38 %) of the Taste, Nutrition & Health segment.

Across all company levels, the proportion of women in management positions comes to approximately 44 % (2021: 45 %) worldwide; the figure for the Scent & Care segment is 46 % (2021: 44 %) and the figure for the Taste, Nutrition & Health segment is 38 % (2021: 40 %). This trend gives us confidence that we will be able to reach the goals we have set for the medium term.

In our efforts to promote international diversity, we always strive to have internationally mixed teams when training our managers. Our executive ranks include Dr. Jean-Yves Parisot, a Frenchman who heads the Taste, Nutrition & Health segment. All other Executive Board members have distinct international management experience as a result of working abroad for many years.

Even though Symrise remains a German company, we recognize the increasing importance of international diversity. Following German employees with approximately 30 % (2021: 29 %), French employees make up the second largest employee group with 20 % (2021: 17 %). The percentage of employees from the USA is 17 % (2021: 16 %). Employees from the Latin American cultural region, especially Mexico and Ecuador, also account for a high share of 18 % (2021: 15 %). Brazilian employees continue to constitute 7 % (2021: 7 %) of the total workforce, while Chinese employees make up 9 % (2020: 8 %).

Global Share of Women in Management Positions at Symrise

Basis: Fixed-term and permanent employees, not including apprentices, as of December 31 of the respective year.
Definition of senior management: All employees worldwide who are employed in the first three management levels, including the Executive Board.

Employee Categories According to Gender in Germany

Definition: Managers, including junior managers, defined as non-tariff employees or managerial employees.
Basis: Employee figures, not including apprentices and temporary workers, as of December 31 of the respective year.

Employee Categories According to Age in Germany

Definition: Managers, including junior managers, defined as non-tariff employees or managerial employees, as of December 31 of the respective year.

Age Structure of the Symrise Workforce Worldwide

Basis: Core workforce and fixed-term employees, without apprentices; as of December 31 of the respective year.

Composition of the Executive and Supervisory Boards According to Gender

As of December 31 of the respective year.

Composition of the Executive and Supervisory Boards According to Age

As of December 31 of the respective year.

Equal pay for both men and women is a matter of course for us. The amount of remuneration is determined exclusively by the employee’s qualification and value contribution to the company.

Symrise pays its employees on the basis of collective wage agreements concluded with the respective labor unions. Each initial classification or subsequent reclassification is subject to review by the works council. Through this double-checking, we make sure that gender plays no role in determining remuneration.

Every year, we conduct analyses at all our major sites to prevent gender-specific disadvantages in remuneration. In addition, to review gender equality in the area of remuneration, an in-depth equal pay analysis was carried out in Germany in 2021. The unadjusted gender pay gap is 1.2 %. Comparable job groups were formed and pay differences were analyzed against the backdrop of whether there is possible discrimination in this area. For this purpose, aspects such as length of service, age, schooling and vocational training and instruction were considered, along with the requirements level and professional position. In 2021, the non-profit FPI Fair Pay Innovation Lab under the patronage of German Labor Minister Hubertus Heil recognized Symrise for its fair pay by awarding its Universal Fair Pay Analyst certificate. In the course of certification, measures aimed at advancing fair pay at Symrise were devised.

Differences in pay that are reflected in the absolute level of pay result from the type of activity, such as shift work with corresponding shift remuneration, but are not determined by gender. For example, at Symrise in Germany, only six women are currently working in rotating shift operations with regular evening shifts and corresponding shift remuneration. Otherwise, only men work in these areas and therefore receive higher remuneration than the basic pay under the wage agreement due to shift bonuses. In addition, it is always necessary to take into account the high percentage of women in part-time work, which gives rise to the impression that women earn less overall.

Discrimination means the disadvantaging of persons based on certain characteristics. It is prohibited under human rights law and forms the basis of respectful coexistence and working together. Ensuring equal treatment and equal opportunities for employees in the company worldwide is a central principle that is also reflected in SDG 5, 8 and 10 of the global Sustainable Development Goals. Our materiality analysis conducted in 2022 underscores the importance of the topics of “Diversity and equal opportunity” and “Sourcing and human rights” with a high rating, especially for our external stakeholders.

Responsible HR policy is part of our corporate culture. It conveys goals and establishes common values. The policy also provides options for further qualification and training for our employees, promoting diversity among the workforce and enhancing the compatibility of professional and private life. With our goals and measures to promote diversity and equal opportunities – such as the review of equal pay for men and women – we also actively contribute to preventing discrimination (see Management approach to GRI 405).

Our Integrated Management System is based on the provisions of the SA 8000 social accountability standard, which is binding throughout the company. This standard is based on the conventions of the International Labour Organization (ILO), the Universal Declaration of Human Rights and the UN Convention on the Rights of the Child. Humane working conditions, decent employment and due consideration for the social aspects of employment are the foundation of our actions at all sites.

The Integrity Hotline set up by the Group Compliance Office (see GRI 2-26) ensures that Symrise employees can anonymously report violations of both legal regulations and internal company guidelines – including incidents of discrimination.

Discrimination against individuals on the basis of their personal characteristics is not tolerated at Symrise. No cases of discrimination were reported in the reporting year.

Respect and fairness in interaction and communication with each other are corporate values that are anchored in our Symrise Code of Conduct. We therefore not only tolerate the establishment of employee representatives and the right to collective agreements such as collective bargaining agreements, but also see this as the active participation of employees in our corporate decisions. Through SDG 8 (decent work), the United Nations has also formulated target requirements on the topic, to which we are committed. Our materiality analysis conducted in 2022 underscores the importance of “Sourcing and human rights” with a high rating, especially for our external stakeholders.

Responsibility for ensuring freedom of assembly and the right to collective bargaining agreements among our own employees lies with the HR department. Preserving these rights with suppliers is the responsibility of the purchasing department.

Symrise consistently adheres to all local labor laws. In addition, Symrise places great importance on a corporate culture in which employees actively contribute to what happens at the company, as reflected in our Code of Conduct. A clear commitment to freedom of association and the right to membership of a labor union are a matter of course for us. This includes the formation of works councils and the joining of unions. At those locations where there is no collective agreement based on legal regulations or memberships of employers’ associations, we look to the predominant working conditions that are standard in the industry. In addition, employment agreements define collective rules for working conditions in the respective countries. Globally, 60 % of our workforce is covered by collective bargaining agreements, with around 85 % of the workforce in Germany covered by wage agreements.

Furthermore, by signing our Code of Conduct, we require our suppliers to allow their employees the right to freedom of assembly and collective bargaining, to observe at least the statutory provisions on working times and pay and to make a clear commitment against discrimination and abuse. In accordance with our Responsible Sourcing Policy, we conduct risk and performance conditions of suppliers on social perspectives and labor practices, among other things. We carry out audits for suppliers that pose an especially notable risk (as defined by SEDEX and EcoVadis), i.e. suppliers which have crucial raw materials or have had problems flagged in the assessment. In addition, the majority of our strategic suppliers are SEDEX/SMETA certified and have been assessed to ensure freedom of assembly as part of the associated audits (for more on supplier screening and audits, see GRI 2-24 and Management approach to GRI 204).

The abuse of employee rights is not tolerated in any form at Symrise and its suppliers. For violations of our Code of Conduct, our employees can anonymously and confidentially contact the relevant Compliance Officer at their location or call our Integrity Hotline (for more on the complaints mechanism, see GRI 2-26). ). Symrise has also set up an internal complaints mechanism for external stakeholders and rights holders with a view to reporting problems and providing remedies. The complaints mechanism will be available from 2023 onward. Symrise will also abide by any national grievance mechanisms or laws, and work with the relevant authorities where needed, to address any grievances of relevance to Symrise that may arise. External informants can contact the Symrise Human Rights Officer directly via Sustainability.Office@symrise.com. In general, our Integrated Management System is based on the provisions of the SA 8000 social accountability standard, which is binding throughout the company. This standard is based on the conventions of the International Labour Organization (ILO), the Universal Declaration of Human Rights and the UN Convention on the Rights of the Child. Humane working conditions, decent employment and due consideration for the social aspects of employment are the foundation of our actions at all sites.

In 2022, there were no strikes against Symrise in our group of companies.

There were no Symrise locations where the right to freedom of association and collective bargaining was violated or put at risk in the reporting year. Against this background, no additional measures had to be taken to ensure alternative forms of employee participation or to remedy discrimination against unions.

The majority of our strategic suppliers are SEDEX/SMETA certified and have been assessed to ensure freedom of assembly as part of the associated audits. Symrise has no information that the right to freedom of assembly and collective bargaining was violated or put at risk at any supplier company during the reporting year (for more on supplier assessments and audits, see Management approaches to GRI 204 and GRI 2-24).

The UN Guiding Principles on Business and Human Rights explicitly emphasize business responsibility. After all, the activities of companies can have unintended negative effects on human rights. This applies above all to globally operating corporations with complex supply chains. Particularly threatened by human rights violations in supply chains are those population groups who are already marginalized in their respective countries and therefore are exposed to higher risk, such as children, women and religious or ethnic minorities. At the same time, a precarious human rights situation also weakens companies since their success depends on a stable and predictable environment. As part of SDG 8, one of the six central SDGs for Symrise, we as an internationally active company exert a particularly strong influence over the working conditions of our employees, partners and suppliers along the value chain. In doing so, humane working conditions are emphasized as the prerequisite for sustainable and inclusive economic growth. Our materiality analysis conducted in 2022 underscores the importance of “Sourcing and human rights” via a high rating, especially for our external stakeholders.

At Symrise, the Executive Board is responsible for the issue of human rights. In 2022, the company established the role of Human Rights Officer within Corporate Sustainability. The incumbent reports directly to the CSO. Corporate Sustainability provides the Executive Board with information on the company’s human rights status, supply chains and any risks to human rights identified. In 2021, in order to meet its due diligence obligations, Symrise set up a Responsible Sourcing Steering Committee (RSSC) made up of representatives of the segments plus Corporate Sustainability. The Committee defines the strategy and procedures for implementation (see also Management approach to GRI 204).

In our own operations, the rights arising from principles, conventions and declarations are laid down and summarized in the Symrise Code of Conduct, which is binding on all employees of Symrise AG and its Group companies at home and abroad. In the process of implementation, each Group company must also take account of national law. This is because certain countries may have stricter or more comprehensive laws and rules than those described in the Code of Conduct. In such cases, we expect the regulation offering the greatest protection of rights to be applied. The requirements are implemented worldwide in our Integrated Management System (IMS), which is based on the requirements of the SA 8000 social accountability standard, which are binding across the Group. This standard is based on the conventions of the International Labour Organization (ILO), the Universal Declaration of Human Rights and the UN Convention on the Rights of the Child. The abuse of employees’ rights or work safety provisions is illegal and is not tolerated in any form at Symrise. Independent auditing agencies regularly confirm compliance with these regulations on social responsibility. For violations of our Code of Conduct, our employees can anonymously and confidentially contact the relevant Compliance Officer at their location or call our Integrity Hotline (for more on the complaints mechanism, see GRI 2-26). Symrise has also set up an internal complaints mechanism for external stakeholders and rights holders with a view to reporting problems and providing remedies. The complaints mechanism will be available from 2023 onward. Symrise will also abide by any national grievance mechanisms or laws, and work with the relevant authorities where needed, to address any grievances of relevance to Symrise that may arise. External informants can contact the Symrise Human Rights Officer directly via Sustainability.Office@symrise.com wenden.

We expressly welcome legislation upholding human rights in supply chains or in our own divisions, such as the California Transparency in Supply Chains Act, the UK Modern Slavery Act and the German Supply Chain Due Diligence Act. We continue to support the ongoing legislative processes at European level. Symrise will be affected by the Supply Chain Due Diligence Act starting in 2023 and formed the Responsible Sourcing Steering Committee in the reporting year to implement its own due diligence (see GRI 2-6 and Management approach to GRI 204).

We require our suppliers and business partners to uphold basic human rights. Before accepting a new supplier as a business partner, we ask the supplier to accept and sign the Symrise Responsible Sourcing Policy, which serves as a Code of Conduct for suppliers. The guideline encapsulates and clarifies our requirements on the conduct of suppliers. The international supplier screening platforms Supplier Ethical Data Exchange (SEDEX) and EcoVadis are valuable tools with which we can more easily assess suppliers and disclose our own data to customers. Since 2006, we have been publishing information relevant to Symrise on working conditions and employee rights as well as health and safety and environmental and ethical business practices via the SEDEX platform.

Since 2012, we have requested that our most important suppliers register with SEDEX and disclose their data on the platform. Alternatively, agricultural production suppliers can indicate their FSA (Farm Sustainability Assessment) rating; we require at least FSA standard in silver or similar certification. We carry out audits for suppliers that pose an especially notable risk (as defined by SEDEX and EcoVadis), i.e. which have crucial raw materials or have had problems flagged in the assessment. In the reporting year, 138 supplier audits were performed by trained and experienced internal supplier audit teams. Additionally, we ask at least 50 suppliers annually to carry out SEDEX/SMETA audits by verified, independent audit agencies. For further information on supplier screening, see GRI 2-24.

Furthermore, our approach to backward integration (see Management approach to GRI 204) enables us to exert direct influence on adherence to our principles.

Human rights and environmental risks can also arise in our own division. To identify and reduce these risks, all Symrise Legacy* production sites are registered on the SEDEX platform and have been externally audited every three years since 2010 based on the SEDEX/SMETA 4 Pillar Standard. In the reporting year, to prepare for the LkSG, we started registering all other Symrise sites** on the SEDEX platform, setting ourselves the aim of performing SMETA audits at all sites by the end of 2023. At present, 71 % of all sites are SMETA-certified. In the reporting year, sites in Australia, Brazil, China, Colombia, Egypt, Germany, India, Madagascar, Mexico, Russia, Singapore, South Africa, Spain, the United Kingdom and the United States were audited by external auditors (see also GRI 2-23).

In addition, several customers commissioned independent certification organizations to audit selected Symrise sites according to their own standards on social aspects.

* Symrise Legacy includes all Symrise plants except for the sites of the former Nutrition segment.

** Some of the missing sites will not be registered separately in the future, as they are branches of other sites or only a few employees work there (20 or fewer).

Symrise does not permit any form of child labor at its operations or at suppliers. No significant anomalies were found at Symrise sites and suppliers audited by SEDEX/SMETA in the reporting year. In summary, the results of the audits showed that overall, Symrise suppliers and sites have a medium risk of child labor, with no region having an average high risk. However, there are several countries with high risk values, with China and Madagascar being the sites with the highest. In a few cases, suppliers did not verify the age of their workers, increasing the risk of employing underage workers. However, no cases of child labor were found.

Symrise pursues a pooled management approach regarding child labor and forced or compulsory labor. The relevant information can be found under Management approach to GRI 408.

Symrise does not permit any form of forced or compulsory labor at its operations or at suppliers. No significant anomalies were found at Symrise sites and suppliers audited by SEDEX/SMETA in the reporting year (see also GRI 2-24). Overall, there is a medium risk of forced labor for Symrise, with the highest risks for sites and suppliers in Thailand. The most common violations connected to indicators of forced labor include wages that fall short of national minimum wages, missing records (such as payroll or accounting records), excessive overtime and absent social security payments.

The rights of indigenous peoples are material for us, given that we rely on access to local genetic resources, on which we may depend for developing innovative and natural products. Our materiality analysis conducted in 2022 underscores the importance of “Sourcing and human rights” via a high rating, especially for our external stakeholders. This is why we align our actions with the principles of the Nagoya Protocol of the United Nations, which regulates the use of genetic resources by international companies and prescribes benefit-sharing for local communities.

For this purpose a Nagoya committee was founded in 2017, consisting of experts from the business and staff units. The committee promotes the systemic integration of the Access and Benefit Sharing principle in all functional areas. Both the existing product portfolio and new research projects are subject to the strict provisions of the Nagoya Protocol.

Symrise takes a clear position against illegal and illegitimate land use practices. In its Human Rights Policy and Land Use Policy, the company has defined measures to prevent land theft.

No cases have been reported in the reporting year.

Given the nature of the industry, the topics of “Occupational health and safety” and “Partnerships and Communities” are of vital importance to Symrise, especially in the local communities where our sites are located. As material topics for Symrise, and in particular for our external stakeholders, this content was again included in the materiality analysis carried out in 2022.

Because local situations and needs vary, the specific measures and programs to be implemented at the individual sites are guided by on-site systems and working groups. Our subsidiary Tesium pools our expertise concerning the safety of our systems, thereby ensuring the protection of staff, environment and host communities in Germany. All our sites worldwide follow obligatory Corporate Guidelines that contain an approach to the safety of systems, the protection of employees and the environment, which have been coordinated with the Executive Board. Alongside conventional safety-related issues, Tesium considers environmental and energy aspects across the entire life cycle of the systems. An important tool in this is Total Productive Maintenance (TPM). It forms a basis for cross-hierarchy and cross-divisional teams of Symrise employees to develop new solutions and proposals.

Symrise takes a clear position against illegal and illegitimate land use practices toward local communities and indigenous population groups and has defined measures in its Land Use Policy, including measures to prevent land theft.

We strive to engage in dialogue with communities and inhabitants at our company locations and be a good neighbor, while striving to avoid the negative impacts of our business activities and generating added value to society. For example, at our company location in Holzminden, we let our neighbors know about topics of local interest and our social commitment by regularly publishing and distributing a local newsletter.

For more than ten years, we have been committed to improving education and healthcare in Madagascar, establishing production facilities in the country that meet strict environmental standards. We help farmers in Madagascar manage their land more effectively using sustainable and regenerative farming methods and high-yielding varieties while reducing their water consumption. We are also committed to providing training to farmers to optimize their farm management, thereby increasing their productivity and overall income. This commitment is part of a ten-year program to develop a sustainable supply chain (Bridging The Gap), which we are implementing together with the German Society for International Cooperation (GIZ) and partners in the private sector. The project aims to improve the living conditions of around 10,000 people.

We have established a site in the Amazon region that researches new, sustainable raw materials for cosmetics in close cooperation with Brazil’s top cosmetics manufacturer Natura. The supply chains of all raw materials used at this site are reviewed in accordance with the UEBT guidelines. At the same time, many families in the region are benefiting from our local commitments. In partnership with the GIZ, we are seeking to restore the natural vegetation along the Trans-Amazonian Highway and in the Northeastern Pará and Ponta do Albuna regions by changing the way the land is cultivated and enacting reforestation measures. The farmers and cooperatives will learn how to cultivate the land more effectively with the help of the latest technology and thus increase their yields. More than 1,200 families have already participated in the Amazon Program.

Symrise is also committed to improving sustainability awareness. In 2020, for example, Symrise established a Sustainable Space at its Granja Viana (Brazil) site, adjacent to the tropical rainforest, to host training sessions and internal and external sustainability projects. An environmental education project launched in 2018 with the NGO Pé de Planta was continued in the reporting year. A total of 120 children participated in the project. Among other things, they learned more about local and seasonal vegetable cultivation and gardening through the independent cultivation of vegetables and accompanying activities.

In India, we are working closely with Mars, the German Society for International Cooperation (GIZ) and the NGO Tanager training to support 25,000 mint farmers in the state of Uttar Pradesh. Our three-year project aims, among other things, to improve sustainability in the mint supply chain and help farmers optimize their farm management. We are also involved in the Philippines with our partners GIZ, Pernod Ricard/The Absolut Company and Franklin Baker. We offer training programs for sustainable cultivation and better agricultural management to farmers of our coconut plantations. This is intended to improve the living conditions of around 500 households in the long term.

In accordance with the Precautionary Principle, we endeavor to manage the local impact of our business activities as a rule on a proactive basis. Our Integrated Management System is based on international standards in quality management (ISO 9001), environment (ISO 14001), occupational health and safety (ISO 45001), sustainability (ISO 26000), energy (ISO 50001), social accountability (SA 8000), generally accepted Global Food Safety Initiative (GFSI) auditing standards, and other recognized local standards that promote continuous performance improvement.

Our subsidiary Tesium ensures that the facilities comply with our safety requirements. This includes the preparation of systematic safety reviews, contingency plans, safety reports, alarm and risk-prevention plans, and public information. Health and safety committees can be found at all our sites where we have production facilities. The committees meet regularly and share ideas about safety measures and preventing workplace accidents (see GRI 403-1). All our worldwide sites follow obligatory Corporate Guidelines, which have been coordinated with the Executive Board. These cover approaches to the safety of systems and ensure the protection of employees and the environment.

We know of no business activities that have any substantially negative impacts on local communities. Within the framework of our sustainability agenda, we pursue the goal of improving local living conditions and contributing to the enhancement of local communities. By doing so, we actively support the achievement of the United Nations Sustainable Development Goals.

For our portfolio of approximately 30,000 products, we use some 10,000 different natural and synthetic raw materials sourced from over 100 countries. As a result, we face an array of challenges ranging from negative environmental effects from the sourcing of raw materials to protecting social standards in countries that experience, to some degree, problematic sociopolitical conditions. The reasons for this are largely due to inadequate transparency, the high level of complexity of material flows and the different objectives of the parties involved along the value chain. As a result of measures for responsible sourcing, we can contribute to the achievement of sustainable production patterns (SDG 12) as well as to the preservation of ecosystems (SDG 15). Accordingly, the high importance of the topic and its relevance and impact for Symrise and its external stakeholders is reflected in the very high rating of the topic “Sourcing and human rights” in our materiality analysis conducted in 2022.

We are constantly adapting the organizational structure of our purchasing department to the changing conditions on the market. Procurement at Symrise is organized in a decentralized manner in our segments Scent & Care and Taste, Nutrition & Health. This way we can manage purchasing processes in a more targeted manner and continually optimize the supply chain

As from 2023, Symrise will be affected by the LkSG. To implement its own due diligence, the company set up the Responsible Sourcing Steering Committee (RSSC) (see also Management approach to GRI 204). The RSSC is a decision-making body made up of representatives of the segments and the Corporate Sustainability department. The Committee defines the strategy for observing due diligence along with procedures for implementation. Operational implementation and the monitoring and tracking of defined measures with suppliers is carried out in the purchasing divisions. The RSSC is building on a solid foundation: we have been working for several years to ensure that suppliers comply with our sustainability standards through systematic supplier management. The aim of the RSSC is to establish a coherent, sustainable and continually evolving management system for responsible procurement – a system that meets the expectations and requirements of our stakeholders, makes the supply chains of Symrise robust and safeguards human rights. In the reporting year, the RSCC adopted a Code of Conduct for suppliers (Responsible Sourcing Policy and Supplier Code of Conduct). A Human Rights Policy for which the Executive Board is responsible has also been introduced and is being implemented globally by the Human Rights officer. The policy includes a complaints mechanism for suppliers and other business partners. The integration of sustainability aspects into the qualification, evaluation and development of suppliers is also a key area of responsibility (for further information on the RSSC, see also GRI 2-23 and 2-24).

Our long-term goal is to source all materials and services on the basis of sustainable criteria. 2025 is our target for the responsible sourcing of all strategic biological raw materials. In the reporting year, we already sourced 87.6 % of our strategic biological raw materials sustainably (2021: 83.6 %). Alongside our sourcing guidelines, we have also established specific policies for various raw materials that are exposed to high risks (as in the case of palm oil).

Since we cannot solve many of the challenges in the supply chain alone, we increasingly rely on cooperative arrangements within the industry and competitive approaches in which we can work together with other players on long-term sustainable solutions. These include our memberships in the Roundtable on Sustainable Palm Oil, the Sustainable Agriculture Initiative (SAI) Platform or the Sustainable Spices Initiative (SSI). Symrise is also a signatory to the IFRA-IOFI sustainability charter. Signatory companies in the flavor and fragrance industry are committed to strengthening sustainability within the industry, for example through responsible procurement practices and reducing the environmental footprint.

As a long-standing member of the Union for Ethical Biotrade (UEBT), an international non-profit organization committed to the respectful sourcing and certification of ingredients, Symrise has incorporated the organization’s principles and criteria into its own supply chain management. At the same time, Symrise encourages its suppliers and customers to meet these standards. In the reporting year Eder Ramos, President of Symrise Fragrance, was confirmed as the chairperson of this charitable organization. Ramos brings 40 years of experience with scent and cosmetic ingredients in a multinational environment to his position.

Symrise is also a member of the Alliance for Development and Climate. As a founding member, Symrise was involved in the creation of the Sustainable Vanilla Initiative and the One Planet Business for Biodiversity (OP2B) Initiative, in cooperation with the World Business Council for Sustainable Development (WBCSD), among others. We are active in the WBCSD's Nature Action initiative and committed to the principles of the Network for Nature multi-stakeholder initiative (for more information on these and other initiatives, see GRI 2-28).

We can best pursue and maintain our goal of responsible sourcing if we can exert direct influence on the upstream stages of our value chain. Therefore, we pursue the goal of strategic backward integration for our key raw materials. As we demonstrated in the case of vanilla production in Madagascar, we can create immediate value for all participants. We are working purposefully to improve and implement environmental and social standards through various joint projects, thus ensuring the consistent high quality of raw materials for our customers. With this integrated approach, we support local socioeconomic structures and directly monitor compliance with our principles. For the backward integration of our supply chain, we have established corporate guidelines on due diligence and defined corresponding processes that also consider environmental and social risks. Backward integration at our U.S. sites in Jacksonville, Florida, and Colonels Island, Georgia, as well as Granada in Spain, secures high-quality and strategically important ingredients for Symrise. This ultimately reduces our risk of supply bottlenecks.

For more information on responsible sourcing, see GRI 2-23 and Management approach to GRI 204.

Symrise has declared its goal to source all materials and services on the basis of sustainable criteria. As the starting point, prior to commencing any business activity, we expect our direct suppliers and business partners to sign our Responsible Sourcing Policy, which serves as a Code of Conduct for suppliers. New and alternative suppliers first undergo an internal evaluation process followed by an in-depth evaluation of inherent and specific sustainability risks, for which we have been using SEDEX and SMETA audits (4 pillars) for many years. In 2021, we started assessing other suppliers by means of the EcoVadis platform.

In view of the Supply Chain Due Diligence Law, we have expanded the goal for evaluating our suppliers. By 2025, the group of suppliers making up 90 % of our procurement volume will be assessed according to sustainability criteria. Accordingly, 87 % (2021: 72.7 %) of our suppliers, based on 90 % of the procurement volume, were assessed according to sustainability criteria in the reporting year.

In view of the Supply Chain Due Diligence Law, we have expanded the goal for evaluating our suppliers. By 2025, the group of suppliers making up 90 % of our procurement volume will be assessed according to sustainability criteria. Accordingly, 87 % (2021: 72.7 %) of our suppliers, based on 90 % of the procurement volume, were assessed according to sustainability criteria in the reporting year.

To further expand the evaluation of our suppliers, we started to evaluate additional suppliers via the EcoVadis platform in 2020, as not all of our suppliers use SEDEX. With this step, we aim to be able to identify further risks and opportunities of our suppliers early on. Alternatively, agricultural production suppliers can indicate their FSA rating; we require at least FSA standard in silver or similar certification. The FSA seal (Farm Sustainability Assessment) stands for sustainably produced raw materials and is awarded by the non-profit organization SAI (Sustainable Agriculture Initiative).

We carry out audits for suppliers that pose an especially notable risk (as defined by SEDEX and EcoVadis), i.e. which have crucial raw materials or have had problems flagged in the assessment. In the reporting year, 138 supplier audits were performed by trained and experienced internal supplier audit teams. Additionally, we ask at least 50 suppliers annually to carry out SEDEX/SMETA audits by verified, independent audit agencies. The focus here is on environmental issues in addition to product safety, quality management, work safety, health and social responsibility. If suppliers don’t meet our defined standards, we jointly develop and implement improvement measures. If these standards are still not upheld after such attempts, the business relationship is terminated as a last resort. In 2022, there were no cases of our suppliers causing any notable negative social impact.

For information on the current general SEDEX risk report, see GRI 2-24. For SEDEX results on the specific topics of child labor and forced labor in the supply chain, see GRI 408-1 and GRI 409-1.

Dialogue with politicians and participation in public discourse are important foundations and drivers for the future-oriented plans of the sector and its associated industries – food, pet food and personal care. This exchange must take place with integrity and transparency for all parties involved; we clearly exclude the corrupt gaining of advantage through political influence. The significance of “Corporate Governance and Compliance” to Symrise as well as the impact and importance of good corporate management to external stakeholders is accordingly reflected in the high rating of the topic in our materiality analysis conducted in 2022. In exchanges with relevant stakeholders, we express our interest, share our views and at the same time raise awareness of specific issues in the political discourse and legislative process. In doing so, we attach great importance to pragmatic and fact-based presentation and ensure both compliance with the applicable legal standards and the legal framework as well as an open and participatory culture of dialogue with all stakeholders who share our values (see also Corporate Report for 2022, p. 24ff.).

Party donations or donations to political or religious associations, public officials and public bodies must be approved by our Chief Compliance Officer. The Symrise Code of Conduct is the basis for all our actions in this regard and, in its statements on business relationships with external parties, donations and contributions, also applies to our stance toward politics; see GRI 2-23 Violations of the Code of Conduct can be reported by our employees via a transparent and easily accessible complaints mechanism; see GRI 2-26.

Symrise actively participated in political and social dialogue during the reporting year through events and personal contact with decision makers as well as through our media channels. In our exchanges with external stakeholders, we also see ourselves as a voice for corporate responsibility that actively exemplifies the compatibility of climate protection, supplier relationships based on partnership, and sustainably competitive corporate success.

For more information on our engagement in initiatives during the reporting year, see GRI 2-28.

Symrise is non-partisan and did not support any political parties in the reporting year.

Every one of the 30,000 various Symrise products is subject to strict quality requirements. We concentrate our research and development activities on the creation of products that contribute to satisfying human needs. In this, the focus is on green chemistry, natural raw materials and resource-efficient production processes along with innovative technologies. Accordingly, the significance of “Product quality and safety” to Symrise as well as its relevance and impact on external stakeholders is reflected in the high rating of the topic in our materiality analysis conducted in 2022.

Responsibility for ensuring product safety lies with the relevant regulatory departments of the Taste, Nutrition & Health and Scent & Care segments.

Good manufacturing practice forms the foundation for responsibly handling products and production processes. These guidelines serve to ensure quality in production processes and production environments, and apply to the manufacturing of medicines and active ingredients as well as to the manufacturing of cosmetics, food and animal feed products. They are defined by the laws governing pharmaceuticals, cosmetics and foods.

Many requirements apply across product groups, including quality requirements, clear product labeling and hygiene requirements. Moreover, the government has passed corresponding regulations that define requirements specifically for individual product groups. In particular, Symrise differentiates between the following product groups: flavors, pharmaceutical agents, pharmaceutical additives, cosmetic active ingredients and raw materials.

Since 2020, these measures have been redefined and expanded against the backdrop of the global coronavirus pandemic and extended to include further hygiene measures. All sites continue to implement the locally applicable coronavirus pandemic containment regulations of the relevant authorities. For employee health measures, see Management approach to GRI 403.

Symrise offers its customers worldwide emergency support in the case of accidents and similar incidents. A 24-hour hotline is indicated on the data sheets outlining the safe handling of our products (see also GRI 416-1). Customers can also contact the company directly at any time to initiate the product crisis process. In this case, a team of experts is alerted to assess the situation and initiate a product recall if necessary. These product safety concepts (product crisis and recall) are regularly tested internally and verified during external audits.

We are constantly working to improve the safety of our products. We carefully record, investigate and evaluate customer complaints and especially incidents of lack of food safety using a monitoring process. Based on this data, we develop KPI goals for the relevant departments. Company employees for whose work the safe handling of Symrise products is relevant are also regularly trained on the topic in e-learning sessions.

We guarantee the safety of our products throughout their life cycle. To do this, we integrate all relevant steps into our product safety policy, from supplier orders to customer delivery. Symrise ensures and continually monitors compliance with legislation, requirements laid down by associations and internal standards. Our products are subject to strict regulatory scrutiny based on the food, pharmaceutical, and cosmetics law or the REACH directive.

Symrise has an internal regulatory monitoring system for the reduction and substitution of substances defined as substances of very high concern under the REACH regulation. In addition, we screen our ingredients early on to determine whether they could become substances of very high concern, even before official bodies confer this status. Once such a substance is identified, the substance is removed; at the same time, we inform research that we will no longer use these substances.

Our customers are informed about technical characteristics and how to safely handle our products via corresponding data sheets, product specifications and additional, individually tailored informative materials. Based on the data sheets, customers usually perform their own safety assessments of our products with experts. In addition, Symrise experts from the Regulatory Affairs and Toxicology departments are available to answer questions.

There were no breaches of safety or health regulations in relation to our products at Symrise in 2022.

The intensive cooperation between the regulatory departments, the purchasing departments and sales ensures that no violations or complaints arise in connection with health impacts. Legislative changes are promptly implemented through the intensive cooperation of these areas and using a proactive approach, supported by robust product and consumer-protection processes. This approach has been received by customers as exemplary.

In the case of product defects that could endanger consumers, a product crisis process is initiated with local, regional and global crisis teams within the Customer Complaint Management Organization.

All customer complaints regarding quality and service are carefully reviewed. If necessary, measures are taken and their execution is monitored. In a monthly report, the responsible individuals are informed about the development of complaints and the status thereof.

More than 90 % of our production sites are certified at least in accordance with ISO 9001 as well as a standard applicable to the food industry (ISO 22000) or the animal feed industry. All of these standards are recognized by the Global Food Safety Initiative.

The focus of our research and development strategy is our enhanced commitment to consumer well-being which, for example, includes issues such as skin protection and healthier nutrition. Our ongoing aim is thus to steadily increase the share of these products in our sales volume. We work closely with our key customers to increase the contribution of end products to promoting health.

Omissions:

For reasons of confidentiality, we do not publish figures on sales volumes or shares.

See FP6

Ensuring the highest product quality and safety is of great importance to both Symrise and our stakeholders. This is also reflected in the materiality analysis performed in 2022, in which the topic of “Product quality and safety” was rated highly by all stakeholders.

Our product safety policy and good manufacturing practice form the global basis for responsible behavior with products and manufacturing processes. These guidelines steer quality control for both production processes and the production environment, and apply to the manufacture of pharmaceuticals and active ingredients as well as cosmetics, food and animal feed products. They are defined by the laws governing pharmaceuticals, cosmetics and foods. Many requirements apply across product groups, such as quality requirements, clear product labeling and hygiene requirements. Independent audits and recognized certifications provide us with support as we strive to reach the highest standards and provide transparent evidence of our achievements. In addition, Symrise has created an internal committee specifically for dealing with classified substances, such as Substances of Very High Concern (SVHC). The committee provides for monitoring of substances that goes beyond the legal requirements. If necessary, the committee initiates internal measures and informs direct and indirect suppliers. If a substance has a high risk, the committee develops joint strategies with other industry representatives, including replacing substances, after weighing all options.

The Quality & Regulatory division organizes product safety at Symrise. Its reporting channel leads to the CEO via the Global Operations area.

All new substances undergo safety assessments as standard. The hazardous substance or dangerous goods labeling of our products is based on regional and global requirements such as CLP Regulation 1272/2008 and/or the Globally Harmonized System of Classification and Labeling of Chemicals (GHS). All incoming raw materials are consistently checked for conformity and classified and graded accordingly. If necessary, additional clarifications (for example, regarding the composition of raw materials) are performed directly via the supplier or in-house analyses; their physical and chemical properties may also be determined analytically. In addition to the disclosures from the material safety data sheets of the raw material suppliers, the available information from the REACH registrations (dissemination page of ECHA), among other things, is used for the causality test.

The registration data are submitted to ECHA and can be viewed on the respective websites (https://echa.europa.eu/home) of the authorities. The authorities also publish the use of the substances. In addition, we disclose the uses of our substances upon request and register all IFRA uses as an IFRA member. Inquiries from customers are answered accordingly. We also have a team of toxicologists/ecotoxicologists at our disposal to clarify relevant issues internally. Furthermore, we are in close coordination with the International Fragrance Association via the Label Manual and the International Organization of the Flavor Industry. In addition, Symrise offers a worldwide 24-hour service in the event of an accident via the emergency number on the material safety data sheets.

Symrise uses both Verisk 3E Legal Content information and SAP EH&S regulations on the system side and creates material safety data sheets for raw materials, product mixtures and other relevant information fully automatically at a global level.

The labeling of our products for beverage and food applications in the Taste, Nutrition & Health segment is based on food regulations. Among other regulations, the requirements of EU Regulations 1169/2011 concerning food allergens and Article 14 of Regulation 1334/2008 concerning the labeling of flavorings that are not intended for sale to the final consumer apply.

In 2022, there were no incidents of non-compliance concerning product and service information and labeling.

Animals and raw materials of animal origin serve people in a variety of ways, above all in food production. Unique taste and nutrition solutions are also part of the Symrise product portfolio – therefore, we view the commitment to improved animal welfare as an important component of our corporate policy. Beyond the ethical requirements that we impose on ourselves and our activities, the irresponsible treatment of animals could lead to substantial reputational damage for Symrise with important stakeholders and thereby to significant economic harm. We share the growing concerns of consumers and customers regarding the conditions under which animals are held and treated, and we clearly see the reciprocal effect on the quality of food. Animal welfare is a natural obligation for Symrise and was accordingly also identified as a material issue in our materiality analysis carried out in 2022.

The topic of animal welfare is also taken into consideration in our directive for Responsible Sourcing & Supplier Code of Conduct, which we published for the first time in 2022. Some of our most relevant SDGs relate to animal welfare (SDG 12, 14 & 15). We obtain animal raw materials and byproducts exclusively from suppliers that comply at a minimum with European laws or local provisions and regulations regarding animal welfare. Usually only byproducts of the food industry are used here, thereby ensuring the utmost raw-material efficiency and reduction of food waste. They must also ensure compliance with the five freedoms of the World Organisation for Animal Health (WOAH). We have zero tolerance for poaching, illegal trade in animal parts or illegal transfer of exotic animals. We also strive to avoid animal testing altogether. If obliged by regulatory or legal mandates to engage in animal testing, the animal may not suffer any physical or mental cruelty – we expect our suppliers to adopt the same approach. The Sustainability Board briefs the Executive Board several times per year on current developments.

Ingredients and flavors based on raw materials made from chicken represent the largest share of animal primary product in terms of volume at Symrise. That is why we have developed a guideline for high animal welfare standards in the poultry business unit, specifically for chickens, as the first building block for the Naturals business unit (formerly Diana Food). It includes clear minimum requirements for care, breeding, transport, and slaughter. The guideline provides for regular reviews of farms, continuous improve-ment in livestock farming and an annual progress report. For example, we aim to source 100 % of our chicken-based raw materials required in the Naturals business unit in Europe from sustainable sources by 2026.

In line with our guidelines, we conducted surveys on an ongoing basis since 2019 to uncover areas for improvement between the current practices of our suppliers and our animal welfare targets by 2026. Through a regional screening, we were also able to identify potential suppliers who already meet the requirements of our animal welfare guidelines. Since there are no uniform internationally recognized standards for animal welfare, Symrise has involved the internationally highly respected animal welfare organization Compassion in World Farming (CIWF). We continue to work with CIWF to quickly implement the guideline in the supply chain. In France, we are a guest member of the Etiquette bien-être animal association, with whom we held a meeting in the reporting year. In addition, Symrise is a member of two organizations that promote alternatives to animal testing: European Partnership for Alternative Approaches to Animal Testing (EPAA) and Animal-Free Safety Assessment Collaboration (AFSA). Symrise is actively involved in the work of the association and participates in many expert groups (see GRI 2-28). Beyond these cooperations, Symrise networks with other stakeholders by participating in conferences and discussions on animal welfare.

To measure the tastiness of pet food, the Taste, Nutrition and Health segment maintains expert centers in Elven (France), Hodges (USA) and Descalvado (Brazil) and Chuzhou (China), to provide its customers with studies on the feeding behavior of cats and dogs, as well as an understanding of the influence of the emotional bond between pets and their owners.

The expert centers follow a strict animal welfare policy. During selection, breeds are preferred that are not susceptible to health or behavioral problems. The dogs and cats have ongoing access to an open-air enclosure and fresh water, and are regularly fed according to sensory assessment protocols as well as their respective natural eating behavior. Since the time spent housing the animals may only be a part of their entire life, an adoption program has been introduced which allows the adoption of the animals by families after an average of five years. Thus, the animal population is renewed by about 10 to 15 % annually.

In case of lengthy animal transportation, a special truck is used that is equipped with temperature monitoring and ventilation. The responsible employees hold specific certificates for this purpose. In France, for example, they hold the “Transport des animaux vivants” certificate, which is recognized by the French authorities. In addition, independent and external veterinarians take care of the animals and, if necessary, provide them with medication.

Many employees also hold the “Certificat de capacité,” a professional certification that is issued by the French authorities and qualifies them for the responsible treatment of animals.

In the Aqua Feed division, we conduct product tests of fish and shrimp to investigate tastiness, nutritional values and health benefits. These benefits support the development of more efficient, sustainable and secure aquacultures. These tests are performed subject to the following principles: compliance with the laws of animal welfare, a strong training program for the scientists responsible for planning the test series, validation of all protocols by independent ethics committees.

At Symrise, animals are neither raised nor processed (regarding the supply chain, see GRI 414-2). The dogs and cats kept by our Pet Food division are primarily used to provide expertise in sensory and behavioral assessment of pet food and care. Fish and shrimp are used in the division Aqua Feed to assess product performance.

Every year, breeders and owners select dogs and cats according to set criteria. Our goal is to provide a representative cross-section of breed diversity on the various continents. Wherever possible, the animals do not belong to certain breeds that are known for their tendency to develop health or behavioral problems. Our dogs and cats are acquired after a weaning period and are identified by tattoos and microchips. All animals remain in quarantine before they join the Panelis program.

In the division Aqua Feed, we conduct product tests of fish and shrimp primarily in order to investigate growth behavior. For each test design, the 3R rule (reduce, refine and replace) is used to enable a more ethical approach to animals. Overall, the annual growth weight of the fish and shrimp used in the tests is less than 650 kg.

At Symrise, animals are neither raised nor processed (regarding the supply chain, see GRI 414-2).

The dogs and cats kept by our Pet Food division are primarily used to provide expertise in sensory and behavioral assessment of pet food and care. Fish and shrimp are used in the division Aqua Feed to assess product performance. Our dogs and cats receive only treatment for care; no invasive measures are taken. There are no breeding activities. In order to manage our animal population, dogs and cats are spayed or neutered. The operation is carried out by a veterinarian in accordance with generally accepted practical recommendations regarding anesthesia and analgesic protocols. If one of the animals must undergo a surgical procedure, a painful examination or medical treatment, the attending veterinarian supplies the appropriate narcotic and analgesic treatment. When a product test is completed, fish and shrimp used for product testing in the division Aqua Feed are treated as legally required and in accordance with the ethical guidelines of our testing procedures.

At Symrise, animals are neither raised nor processed (regarding the supply chain, see GRI 414-2). The dogs and cats kept by our Pet Food divisions are primarily used to provide expertise in sensory and behavioral assessment of pet food and care. Fish and shrimp are used in the division Aqua Feed to assess product performance.

The dogs and cats that are kept in the expert centers live in groups. Depending on building size, cats are housed in groups of 3, 8, 10 or 20 cats per room with plenty of natural light and controlled ventilation, while dogs are housed in pairs in kennels.

Cats have constant access to a small outdoor area and fresh water through cat flaps. Dogs have free access to indoor and outdoor areas and spend several hours every day outdoors in parks. They are divided into groups of 4 to 10 animals depending on breed, body size and individual affinity.

Dogs and cats are fed once or twice a day. Feeding frequency is the same as for pet owners at home.

In each of our facilities, we do not only comply with the minimal prescribed treatment regulations, but also provide larger premises than necessary since the well-being of animals is crucial to the success of our sensory and behavioral tests of pet food and care.

For example, the smallest room for ten individual cats is 28 m² (15 m² for the indoor area and 13 m² for the outdoor area). For dogs, the accommodation depends on the size of the respective animal. We calculate more than 9 m² for small dogs and 12 m² for larger breeds. We design the environment for cats in three dimensions in order to enlarge the available space. Portions of the outdoor areas are also roofed.

We do not breed the fish and shrimp that are used for product testing by the division Aqua Feed ourselves, but obtain them from commercial breeders. The fish and shrimp are held in facilities in which we ensure optimal conditions in terms of water quality, nutritional needs and low animal density.

If needed, our dogs and cats receive antibiotics and anti-inflammatory treatment. The animals are held only as subjects for pet food taste and care tests. After an average of five years, the animals enter the adoption program to live with families.

Any treatments comply with the legal provisions of the attending veterinarian. They are always performed by animal caretakers and trained specialists. All treatments are documented in the respective individual files and the general register for each facility.

The division Aqua Feed does not use antibiotics, anti-inflammatory drugs or hormones. The goal of fish and shrimp tests is rather to demonstrate the advantages of our products. Achieving this goal would be impaired or invalidated by the use of such substances for the reduction of mortality rates or resistance to environmental influences in breeding.

No instances of non-compliance with laws and regulations were reported.

Transport of our dogs and cats take place when they are brought to our facilities, during visits to the veterinary clinic or during any trips to beauty shows or competitions.

Special spacious transport cages are used during transport. In case of longer trips, we ensure that the trip is interrupted regularly for free movement and the supply of fresh water. The responsible employees hold the “Transport des animaux vivants” certificate approved by the French authorities.

Many employees hold the “Certificat de capacité,” a professional certification that has been issued by the French authorities and qualifies them for the responsible treatment of animals. In the US, the Animal Welfare Act governs regulations on transport to and from our sites there.