Supplier Social Assessment | 414-2

Negative social impacts in the supply chain and actions taken

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 2006, we have been publishing information on working conditions and employee rights, health and safety as well as on environmental and ethical business practices via this platform. Every Symrise production site has been registered with SEDEX. Since 2012, we have requested that our most important suppliers register with SEDEX and disclose their data there. In total, 80 % of our main suppliers - based on procurement volume - have been rated according to sustainability criteria (SEDEX / SMETA 4-Pillar). Based on a risk assessment tool (maplecroft), suppliers are classified into high, medium or low risk categories.

We carry out audits for suppliers that pose an especially notable risk, that have crucial raw materials or that have had problems flagged in the assessment. 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. All new suppliers fill out a supplier survey that contains a section with questions on labor practices. They must also sign an agreement that they will strictly comply with our CSR guidelines. Existing suppliers are also evaluated on their labor practices using the systematic risk assessment procedure. No critical labor practices (actual or potential) were seen with any suppliers.

All new suppliers were assessed on human rights in 2017. We did not identify any suppliers with a material, actual or potential negative human rights impact.

We source animal raw materials and byproducts exclusively from suppliers that comply with European laws and local regulations regarding animal welfare. Symrise does not slaughter nor transport any animals. In the Flavor & Fragrance industry, raw materials of animal origin are generally only used in very limited quantities. By contrast, poultry, pork, beef and fish are an essential component of the products made by Diana for pet food. In most cases, only byproducts (mainly from the food industry) are used. Using byproducts from local sources ensures the utmost raw-material efficiency and that food waste is substantially reduced. Furthermore, we founded the U.S. Roundtable for Sustainable Beef together with other companies in 2015. The goal is to continually improve the value chain for beef. In addition, we joined the Sustainable Agriculture Initiative (SAI) in 2016, which seeks to promote sustainable practices in agriculture.