8 February, 2019

Cascading Responsible Practices beyond Tier 1

Michael Pennant-JonesHead of Technical & Capability

Cascading Responsible Practices beyond Tier 1

• Setting the Scene

• Introduction- Givaudan - Johannes Rogaar

• Supplier Case Study - Synthite- Ramkumar Wariyar

• Explore Supply Chain – Givaudan and Synthite

• Questions & Answer Session

Impactt

• Founded in 1997

•Ethical trade specialists

• Bringing clear business benefits to both

ends of the chain

•Award winning consultancy

“WHAT’S GOOD

FOR WORKERS

IS GOOD FOR

BUSINESS”

Associates

Offices

Where we have worked

• We have offices in Bangladesh,China, India,Myanmar,USA and the UK.

• We have associations and experts in countries including Eastern Europe, Turkey, Malaysia, Cambodia and

Thailand.

• We work with clients within a wide range of industries including food,non-food,electronics and toys.

Background

Over 20 years Supply chain sustainability

▶︎ Tea, flowers, fresh produce, rubber, coffee

▶︎ worked for Producer, Packer and Buyer

▶︎ Across South Asia and Africa

Cascading Responsible Practices beyond Tier 1

PRODUCT

PRICE

PRODUCT

PRICE

PRODUCT SAFETYHYGEINE

Building a relationship

We are Givaudan

Confidential and proprietary business information of Givaudan

Touching billions of lives – every day and everywhere

To help our customers grow their brandInspiring fragrances and flavours

Fabric Care Home Care

Active CosmeticsPersonal CareFine Fragrances

11Confidential and proprietary business information of Givaudan

Oral Care

To help our customers grow their brandInspiring fragrances and flavours

12Confidential and proprietary business information of Givaudan

Snacks Dairy

Sweet GoodsSavouryBeverages

Confidential and proprietary business information of Givaudan 12

and balanced sales across our two DivisionsFragrances and Flavours drive consumers’ product choices

Confidential and proprietary business information of Givaudan

Fragrance Division

46%of Group sales

Flavour Division

54%of Group sales

13

Givaudan

Confidential and proprietary business information of Givaudan 14

Always by your side

13,598Full time employees

~25%

Marketshare

64Production

sites

148Locationsworldwide

“ To inspire emotion throughour creations every day, everywhere, as we strive for a better tomorrow.”

Confidential and proprietary business information of

Givaudan15

Vision

February 2016

16

Responsible Sourcing programme

Confidential and proprietary business information of

Givaudan

Intermediary suppliers

FarmersLocal producers

Local communities

Natural supply chain assessments

Direct Supplier audits

Key raw material suppliers:Driving audit compliance

Raw material supply chains:Sourcing raw materials of natural origin responsibly by

Creating supply chain transparency

Identifying best practices or improvement areas

Ensuring actions are initiated where needed

Sustainability initiatives of Synthite

• Established in 1972, Synthite commands market share of more than 40% of Indian Spice Oils and Oleoresin

exports from India

• Offer the entire range of spices and herbs sourced from India & abroad.

BRC – A grade certified , ISO9001:2008 – Quality Management System, ISO 22000: 2005 – Food Safety

Management System, FSSC 22000 – Food Safety System Certification, ISO14001: 2004 – Environmental

Management System, OHSAS 18001: 2007 – Occupational Health and Safety Management System, FAMI-QS

(Quality & Food Safety system for specialty feed ingredients & their mixtures)

• ISO 17025 - accredited laboratory with strong in house testing capabilities.

About Synthite?

Challenges of Indian Agriculture

1.Small and fragmented land-holdings

2. Quality seeds.

3. Availability of Good quality Manures, Fertilizers

and Biocides

4. Lack of Irrigation Facilities

5. Lack of mechanization.

6. Soil erosion

7. Marketing of Agriculture produce.

8. Inadequate storage facilities

9. Inadequate transportation facility

10. Scarcity of capital.

• Monitored through Crop in Software

• Documentations like expense record, pesticide/ fertilizer application record

• Farm visits at fixed intervals.

• Each farmers were coded.

• Tags farmer codes to each bags.

• Separate batches are been created for each load.

Traceability

❖ Documentation- Able to track the history, control costs

❖ Application of pesticides and fertilizers based on the soil test.

❖ Trained on sustainable agricultural practices and food safety

❖ Reduced costs.

❖ Link to industry.

Benefits to farmers from sustainability Program

❖ Traceability

❖ Trained farmers

❖ In depth relationship with farming community

❖ Able to understand ground level reality in deep

❖ Easy to adapt for other crops as well

Benefits to Synthite from sustainability Program

Major Observations Status Remarks

No lease agreements with farmer and the land owner

Completed Now all of our farmers cultivated in their own land. We will choose farmers with lease agreements only.

Farmer training Completed Conducted in July 2018

Soil test Completed Tested in KVK lab, Hassan

Documentation (expense record, pesticide sprayrecord)

Completed Started recording

Pesticides are stored in the labor staying room, where in labour usually cook his Food

Completed Pesticides are now storing in dedicated places.

Not farming in the same land continuously Not completed Ginger farming can not be done in same land continuously

No lease agreement for one farmer Not completed Due to legal difficulties we cannot enter into agreement with the land owner(a tribal). We will try choose farmers with proper documents in next season.

Audit observations and status of Audits February 2018 and October 2018at Alur and

Rajkumari.

• Discussion with Givaudan and Synthite

Thank You

Ginger 2018-2019

Locations: Alur in Hassan District of Karnataka &

Rajakumari in Idukki District of Kerala

Planting area: 18 Acres

Total number of farmers: 8

Target quantity:

Fresh Ginger :80 MT

Dry Ginger: 20 MT

Varieties: 2

4th Month

HarvestingHarvesting Harvesting stage grading

Peeling Drying yard

Farm audit by Givaudan team at Alur

Farmer training at Alur

Distributed First aid kits to Farmers

Sweet Paprika

Locations : Xinjiang province of China

Planting area – 260 acre

Total Number of farmers – 15

Target Quantity – 500 MT, dry pods

Marigold

Location : Telgi in Karnataka

Total acreage – 1700

Total Number of farmers – 1500

Target Quantity – 7000 MT

(Fresh flower)

Turmeric

Location : Gundlupet in Karnataka

Planting area – 110 acre

Total Number of farmers - 40

Expected volume – 200 MT

(Dried Rhizomes)

Rosemary

Location : Gadag in Karnataka

Planting area – 11 acre

Total number of farmers - 3

Target Quantity – 10 MT

Lemon grass

Location : Thekkampatti in Tamilnadu

Total farmers - 1

Planting area – 2.25

Target Quantity – 25 MT

Vanilla

Locations : Sakleshpur , Karnataka

Planting area – 5 acre

Total Number of farmers – 1

Target Quantity – 500 kg cured beans in

2019