ImpactValuationStudy

JohannaLevy– August302016

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ABOUTFIRMENICH

COMPANYFOUNDED

1895inGeneva,Switzerland

GLOBALTURNOVER

3bnSwissFrancs(June2015)

AVERAGEGROWTHPERYEAR

7%Since1989

GLOBALPRESENCE

100+markets

FACILITIES

63countries

MANUFACTURING

28sites

PATENTSPRESENTLYINFORCE

2000+R&DAWARDS

35includingNobelPrizeinchemistry

IMPACTTHELIVESOF

1miochildrenthroughimproved

hygiene&nutrition

COMMUNITYDAY

1964participantsin35projects

#OFEMPLOYEES

6500

CLIENTS

2000+aroundtheworld

INGREDIENTS

#1PortfolioofNaturals&Molecules

PERFUMERY

#1inFineFragrance

FLAVORS

#1Incitrus,vanilla&seafood

INVESTEDINR&D

10%oftheannualturnover

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ABOUTFIRMENICH

MAXIMIZINGinnovationsandcreativity

LEVERAGINGcollaborationand

engagement

ENABLINGsustainablelifestyles

andlivelihoods

SCIENCE & SOCIETY

ETHICS AND EXCELLENCE

ENVIRONMENT & RESOURCES

PARTNERSHIPS

PEOPLE & COMMUNITIES

PathwaystoPositive

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ABOUTFIRMENICH

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IMPACTVALUATIONSTUDY:BACKGROUND

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IMPACTVALUATIONSTUDY:GOALS

Measure

Value

Decisionmaking

StrategyExternaldisclosure

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IMPACTVALUATIONSTUDY:GLOBALTREND

Visibletrendtowardsenvironmentalandsocialvaluation

RedefiningValueStream

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IMPACTVALUATIONSTUDY:METHOD

Activitiesassessedinthispilotproject

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IMPACTVALUATIONSTUDY:METHOD

Redefiningvalue

Value

I

I

I

+ +

+ + Net(positive)IMPACT

Social Environment Economic

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IMPACTVALUATIONSTUDY:METHOD

Healthandsafety-- causechaineffect

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IMPACTVALUATIONSTUDY:RESULTSGlobalresults

*Potentialfutureprojects,**referenceflowbaselineresults.***Consequentialbaselineresults.AllvaluesinCHFPurchasingPowerParity(PPP).AssumingsamePPPbetweenUSAandSwitzerland.

Indirectenvironmentalexternalities

Nutritionproject

Schoolinfrastructure

Farmer’spremium

HealthandSafety***

HealthandSafety**

Directenvironmentalexternalities

HaitiProject

Note:allvaluesfromHaitiprojectsareinnetpresentvalueswithoutdiscounting.Weattributedthetotalbenefitfromtheactivitytothereferenceyearwheretheactivitytookplace(e.g.schoolinfrastructurebuilding).Ontheotherside,environmentalexternalities,H&Sandnutritionprojectsimpactwillhappeneveryyear.Thereisnostandardwaytoaccountforvaluecreationforthemoment.

IMPACTVALUATIONSTUDY:RESULTSGlobalresults– withpotentialprojects

*Potentialfutureprojects,**referenceflowbaselineresults.***Consequentialbaselineresults.AllvaluesinCHFPurchasingPowerParity(PPP).AssumingsamePPPbetweenUSAandSwitzerland.

Indirectenvironmentalexternalities

Waterandsanitationproject*

Nutritionproject

Schoolinfrastructure

Farmer’spremium

HealthandSafety***

Lightingproject* Fuel

substitutionproject*

HealthandSafety**

Directenvironmentalexternalities

HaitiProject

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IMPACTVALUATIONSTUDY:KEYTAKEAWAYS

• Analysis:Continuousneedforadditionalprimarydata

• Results:→NumberofpeopleimpactedandROI→ Environ.externalitiesvs.socialprojects’potentialimpacts

• Nextsteps→Allowtoplanandmanagefutureactivities→ Helpassessoursustainabilitygoals→ Alignedwithour2020Targets

Conclusion&nextsteps

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Thankyou