Givaudan’s Sustainable Business Model: Creating Long-Term Value

Givaudan, a global leader in flavors and fragrances, structures its business model around creating sustainable value by leveraging six key capital inputs. This holistic approach ensures both business success and positive outcomes for stakeholders.

Capital Inputs Driving Value Creation

1. Financial Capital
   Givaudan maintains a strong financial foundation with CHF 4,578 million in equity and investment-grade credit ratings (A– from S&P, Baa1 from Moody’s).

2. Intellectual Capital
   The company invests heavily in innovation, operating 62 creation and research centers and allocating CHF 565 million annually to research and development. This intellectual property, including proprietary technology, patents, and know-how, fuels product excellence and competitive advantage.

3. Human Capital
   With over 16,900 full-time employees globally, Givaudan emphasizes skills, motivation, diversity, and health and safety. Notably, 32% of senior leadership positions are held by women, showcasing commitment to inclusion.

4. Natural Capital
   Givaudan sources more than 11,000 different raw materials from 114 countries. The company adopts innovative sourcing models to ensure responsible use of natural resources.

5. Manufactured (Operations) Capital
   Supporting global customer growth, Givaudan operates 78 production sites worldwide. It invests 3-4% of sales annually in capital expenditures (Capex) to enhance infrastructure and supply chain capabilities.

6. Social and Relationship Capital
   While specific details were not fully provided, social and relationship capital typically encompasses stakeholder engagement, partnerships, community relationships, and corporate governance practices.

Purpose-Led Strategy for Sustainable Impact

Givaudan’s value creation process translates these input capitals into tangible outcomes, positively impacting the company and its stakeholders. This integrated model aligns with sustainability principles, supporting long-term business resilience and responsible growth.

Key Data Summary:

Givaudan’s sustainable business model integrates financial strength, innovation, human talent, and responsible resource management to deliver lasting value and promote a greener, inclusive future.

For more on sustainable practices and value creation in the flavor and fragrance industry, follow our blog dedicated to organic and sustainable products.

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