Management Approach 2016 (Disclosure 103-1, 103-2, 103-3)
In order to produce our products, both we and our suppliers require a sufficient supply of energy, which is of course connected with CO2 emissions. In the face of climate change, we feel obligated to create an increasingly efficient energy supply. This will continue minimizing risks associated with rising energy costs, reduce our CO2 emissions and avoid any climate-related risk to our reputation, especially given increasing shareholder expectations.
That’s why we not only analyze our energy consumption and CO2 emissions inside our organization, but we also analyze this along every link in the entire supply chain including in our own products. All German sites have an ISO 50001-certified energy management system.
Again in 2019, we focused on decoupling our dynamic growth in various business units from their possible environmental impacts. We further optimized our energy balance in key areas through additional measures and building upon our energy aspect analysis, while placing a stronger focus on reducing emissions as part of Total Productive Maintenance.
CO2 emissions within our organization (Scope 1+2) act as an important control quantity in our company 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 period, Symrise also once again made an impressive showing in the CDP (formerly Carbon Disclosure Project) rating. Despite considerably higher requirements for CDP Rating participants, Symrise ranked once again in the top group this year. The highest award of A was achieved in the category climate for the fourth time. Until August 2017, Symrise was the only company in the industry to have its climate strategy approved by the Science Based Target Initiative.
For the first time, we also achieved the highest rating of A in the water protection category and thus a place in the prestigious A-list. Additionally, Symrise also achieved an excellent result in the forest protection category with an A-. Since 2016, Symrise has taken the top position in the CDP rating in the area of climate change, protection of water and forests, thus highlighting its pioneering achievements in these fields.
In 2017, we began working with the CDP Supply Chain Program. Our suppliers with the highest risk status were requested to follow the CDP Supply Chain Program. Since the 2017 program was viewed as a pilot, we are now requesting that suppliers renew their participation in 2019 with increased data quality and detailed information, as was done in the previous year. Compared to 2017, the number of returns in the climate change category increased from 44 to 64 in the reporting year – thus also increasing the response rate to 52 %. The number of suppliers reporting that climate-related issues are being monitored at the Executive Board level has almost doubled to 83 % in 2019 compared to 43 % in 2017. In addition, 74 % of our suppliers reported in the reporting year that they were involved in emission reduction initiatives, compared to 57 % in 2018. In terms of our Science Based Target of 80 % in 2020, we are already moving in the right direction. 45 % of our suppliers also reported that they had reduced their emissions (Scope 1+2) in 2019 compared to previous reporting – in 2018 it was 33 %. Nearly half of our suppliers (48 %) also require their suppliers to be responsible in terms of climate-related issues and thus continue their commitment to the topic along their respective value chains. This share has almost tripled compared to 2017.
Until August 2017, Symrise was the only company in the industry whose climate strategy was approved by the Science Based Targets initiative. As of 2030, Symrise will be climate-positive at all its global production sites. Symrise was awarded the first place of the German Sustainability Award in the reporting year for its ambitious program for climate protection, its commitment in shaping the supply chain and its commitment to preserving biodiversity. In the same year, the company also joined the Development and Climate Alliance – a multi-stakeholder partnership consisting of hundreds of companies, associations, government agencies and civil society to promote the voluntary compensation of CO2 under the auspices of the German Federal Ministry for Economic Cooperation and Development (BMZ). Since the end of 2019, Symrise has also been a member of the R100 initiative and is thus also committed to completely obtaining its energy from renewable sources by 2025.
In doing so, Symrise is a role model in terms of climate protection in Germany and is acting in accordance with the resolutions of the UN Climate Conferences COP 21 in Paris, COP 22 in Marrakesh, COP 24 in Katowice and COP 25 in Madrid (see also 201-2).