Sourcing4Good: Givaudan's five years of Responsible Sourcing. August 13, 2026 Marking five years of Sourcing4Good, Givaudan reflects on audits, partnerships and initiatives reshaping responsible sourcing across global supply chains Sustainable sourcing has moved from a niche corporate commitment to a business imperative across the fragrance, flavour and ingredients sector. As consumers demand greater transparency about where raw materials come from and how they are produced, companies are under growing pressure to prove that their supply chains protect both people and the planet. This means going beyond simple compliance checklists to build long-term relationships with farmers and suppliers, invest in fairer livelihoods and reduce the environmental footprint of raw material production, from soil health to deforestation risk. For an industry built on natural ingredients sourced from often vulnerable ecosystems and smallholder communities, responsible sourcing also means tackling human rights risks, supporting biodiversity and helping suppliers adapt to climate pressures. Few companies illustrate this shift as clearly as Givaudan, whose Sourcing4Good programme has spent five years turning these principles into measurable action. Protecting people and the environment. Over the past five years, Givaudan has been making strong progress on its journey towards its 2030 ambition to source all material and services that portects people and the environment, and to source 100% responsibly. Givaudan has been engaging with thousands of suppliers, carrying out more than 900 audits and completing over 1,000 due diligence questionnaires, to classify more than 200 raw material families as responsibly sourced. "What began as a commitment to even more responsible and transparent sourcing has grown into a powerful driver of positive change, improving livelihoods, protecting ecosystems, and ensuring that sustainability is embedded in every ingredient we source. It's inspiring to see how collaboration and shared purpose can make such a tangible difference for people and the environment," says Adit Sharma, Global Head of Responsible Sourcing and Social Sustainability at Givaudan. As Procurement Mag celebrate five years of Sourcing4Good, it's a chance to reflect on the meaningful progress Procurement Mag has made with customers, suppliers, colleagues, partners and communities around the world. Adit Sharma, Global Head of Responsible Sourcing and Social Sustainability at Givaudan Givaudan takes action in global supply chains. Empowering communities and sustainable cultivation in Sri Lanka Facing tough conditions and low productivity, Givaudan, together with Verger Naturals, launched a one year initiative for cinnamon farmers to strengthen human rights, improve livelihoods and promote sustainable farming and production. Initiatives include: * 75 peeling machines to ease manual work * 10,000 high quality seedlings to replant vacant fields * Training sessions on responsible farming, soil conservation, and biodiversity Advancing responsible sourcing of renewable feedstock Regularly assessing certification coverage across major suppliers, Givaudan is committed to boosting its certified volumes and upholding sustainable forest management. To strengthen its supply chain practices, especially for gum turpentine, Givaudan is introducing sample FSA (Functional Safety Assessments) audits, with the first planned in China in 2026. By 2025, several of Givaudan's key suppliers have achieved up to 100% CST1 (Crude Sulphate Turpentine) and 80% GT2 (Gum Turpentine) certification. Reducing environmental impact through modern distillation Partnering with Biolandes, Givaudan is supporting the modernisation of ylang-ylang essential oil distillation to mitigate environmental pressures on local forests. While traditional processes relied heavily on firewood, with the support and encouragement of Givaudan, Biolandes has taken significant steps to change this. Initiatives include: * 32 energy-efficient fireplaces have been installed across 18 partner distilleries since 2016, cutting firewood use by about one third. As Sourcing4Good enters its next chapter, Givaudan's focus remains firmly on its 2030 ambition: sourcing all materials and services in ways that protect people and the environment, with 100% of raw materials responsibly sourced. The progress made so far, from empowering cinnamon farmers in Sri Lanka to modernising ylang-ylang distillation with Biolandes, demonstrates that responsible sourcing works best as a collaborative effort, built on trust between suppliers, customers and communities. Company Portals

Perfume maker Givaudan's sales beat estimates, tariff paybacks weigh on shares. Givaudan's second-quarter organic sales came in ahead of market estimates on Thursday, but its shares fell 5 percent on litigation costs and tariff repayments. 24 July 2026 Givaudan's second-quarter organic sales beat market estimates on Thursday, but its shares fell around 5 percent as litigation costs weighed on profit and tariff repayments clouded the fragrance and flavour maker's outlook for the rest of 2026. Organic sales grew 4.3 percent in the quarter, ahead of a company-compiled consensus of 3.7 percent, marking the first acceleration in Givaudan's organic growth since late 2024. The results were "solid but not stellar", which was not enough to sustain the shares' strong recent run, Vontobel analyst Arben Hasanaj told Reuters. Givaudan said it expected input costs to rise by a low single-digit percentage in the second half of the year and would raise prices to offset them. Partially recovered US tariffs will be repaid to customers, weighing on organic sales growth, it added. "We haven't seen any relevant or material impact on raw material prices, because of the coverage that we had," CEO Christian Stammkoetter said during a media call, adding that the overall situation now looked slightly better. However, Bernstein analysts cautioned in a note that market forecasts were likely underestimating the spread between Givaudan's raw material costs and prices this year and into 2027. Givaudan also booked 103 million Swiss francs ($126 million) in non-recurring costs in the first half, mainly tied to fragrance and flavour litigation, which analyst Victoria Nice from Bernstein said were "not well anticipated". As a result, half-year net income fell nearly 20 percent to 475 million francs, missing a consensus of 554 million francs. Givaudan's fragrance division, which creates scents for prestige perfumes and everyday household goods, saw organic growth of 7.1 percent in the quarter, topping a 5.8 percent consensus, as strong demand for consumer-goods scents outweighed slower growth in fine fragrance. Its flavours division, which makes flavourings for food and drink, roughly met market expectations with 1.5 percent growth, as a rebound in South Asia, Middle East and Africa was tempered by continued softness in Latin America. The drag was concentrated in Mexico, Givaudan's largest market in the region, where beverage demand was sluggish, Stammkoetter said. By Rafal Wojciech Nowak