Who, if not us?
When, if not now?
Nowadays, anyone who keeps an eye on the news can get a first impression of the threats arising from climate change: Storms, flooding, melting polar ice caps and glaciers, heat waves, droughts, bad harvests and a growing influx of migrants are by now part of everyday life around the world. Symrise has been committed to climate protection for many years. By 2025, we want to reduce our greenhouse gas emissions in terms of value added by more than half in relation to the base year 2016. We set ourselves the ambitious goal of reaching climate-neutrality by 2030. We report transparently about our climate protection measures and the preliminary results of our efforts. At the same time, we do not lose sight of the risks and opportunities that can arise for Symrise as a result of climate change – and orient our strategy, corporate planning and risk management accordingly. We report about the financial effects of climate change on our company as part of the CDP Climate Change and act in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
Symrise is a company of dynamic growth. Demand for our products is increasing strongly, especially in emerging markets with growing income. Without countermeasures, sales growth also causes increased greenhouse gas emissions. This means that we are facing a double challenge: compensating for the impact of growing product sales and reducing the greenhouse gas emissions in terms of value added. Until now, our scientifically sound climate strategy for the period from 2016 to 2025 is right on target. We managed to reduce the specific greenhouse gas emissions from 2016 to 2019 by 17 %, from 317.2 tons to 263.2 tons/€ million of added value. The absolute greenhouse gas emissions also declined from 2016 to 2019. Our own measures include, for example, the continued increase of energy efficiency in all production sites as well as entirely covering our energy needs around the world by generating it from renewable sources by 2025. We will also reduce our Scope 1 emissions by supporting high-grade certified climate protection projects around the world. Furthermore, we will include our most important suppliers in our climate strategy through the CDP Supply Chain Program by encouraging them to commit to their own climate targets and reduction measures by 2020.
Climate change is also changing the conditions under which companies operate. Here, these considerable risks also create a number of opportunities. Symrise systematically records these possible effects in its risk management and takes them into account for the company’s strategic considerations and financial planning. The goal of this approach, which is based on the recommendations of the TCFD, is to increase consciousness regarding the risks of climate change, establish the basis for early countermeasures and transparently inform stakeholders – in particular shareholders, investors, creditors and financial markets – about the financial impact of climate change on the company.
With regard to the estimated effect on earnings before interest and taxes (EBIT) not weighted according to probability and in terms of a gross risk basis (before countermeasures), the risks and opportunities currently identifiable to Symrise can be presented as follows: