Partner to decarbonize the citrus supply chain

This case study is part of decarbonization best practices shared with AB InBev Eclipse sustainability program’s community. Discover more about the Eclipse program here.

Givaudan SA is a global leader in fragrance, beauty, taste, and wellbeing, driven by its purpose to create for happier, healthier lives with love for nature.

Citrus holds a special place in Givaudan’s product portfolio, as it is a versatile ingredient used in a wide range of beverages and food items. However, the high carbon footprint associated with citrus production, coupled with the threats posed by climate change and greening disease, introduces volatility and risks into our supply chain.

Givaudan has a strong commitment to reach net zero GHG emissions across its value chain by 2045. The company has its science-based targets for emission reductions validated by the Science Based Targets initiative (SBTi) that include reducing absolute Scope 1+2 GHG emissions by 70% and Scope 3 emissions by 25% before 2030, decreasing Scope 3 Forest, Land and Agriculture (FLAG) emissions by 30.3%.

To achieve its goals, Givaudan is crafting a detailed net-zero roadmap. While significant strides were made in addressing the company’s Scope 1 and 2 emissions, Givaudan recognizes that Scope 3 emissions present a challenge, accounting for 94% of the company’s total emissions. Givaudan has a special focus on its purchased raw materials, as 88% of its Scope 3 emissions come from them.

During the assessment of its emissions, it was discovered that in the Taste & Wellbeing division, citrus is in the top three raw material categories contributing to the company’s carbon footprint, with special significance for Forest, Land, and Agriculture (FLAG) emissions.

Givaudan understands that overcoming these challenges and achieving its goals requires collaboration and a long-term vision. By working together with its partners, suppliers, and customers, the company can innovate and implement sustainable practices that not only reduce its carbon footprint but also ensure a resilient and thriving supply chain for generations to come.

To tackle the pressing challenges in the industry, Givaudan has embarked on an exciting journey of collaboration with ten key citrus suppliers. In the initial phase of this partnership, the company is gathering primary Product Carbon Footprint (PCF) data for citrus-derived juices and oils. It aims to collect both past and current PCF data, and, if the supplier can provide, estimations for the future. This information will enable Givaudan to refine its Scope 3.1 (Purchased goods and services) data, paving the way for more precise sustainability metrics.

Givaudan is not just collecting data; it is planning to team up with its suppliers to find ways to cut down emissions. This teamwork helps the company build strong relationships based on trust and common goals. Customers will also benefit from this effort. By providing them with better emission data, Givaudan helps its customers make smarter choices that can lower their own emissions. Givaudan hopes that with this far-reaching collaboration, it can make a systemic impact on the citrus supply chain.

Sustainability impact

Climate

Scope 3 emissions are Givaudan’s biggest climate challenge, making up 94% of the company’s total greenhouse gas emissions. In 2024, purchased goods and services alone represented 88% of Scope 3. To cut these emissions, the first step is gathering accurate data and working closely with suppliers to find and address the main sources.

Citrus is one of the top three sources of Scope 3 emissions for Givaudan’s Taste & Wellbeing business. By focusing on the citrus supply chain, this project has the potential to drive systemic positive change across the industry by:

• Lowering suppliers’ own emissions footprint

• Reducing Givaudan’s Scope 3 emissions

• Contributing to reductions in customers’ Scope 3 emissions

Nature

At a later stage of this project, the implementation of more sustainable agricultural practices have the potential to promote biodiversity and protect existing natural resources, including soil health, water and pollination.

Social

Givaudan is raising awareness on Carbon Reduction to its employees, suppliers and customers.

By collecting and sharing product carbon footprint data, it is possible to turn an abstract global issue into specific numbers. As a result, it is easier to visualize the impact on the environment. Seeing the changes in the emission value over time, as a result of the implemented projects, could positively affect employee attraction and retention.

Business impact

Benefits

For Givaudan, this project helps with reaching its Scope 3 emission targets.

For its customers, the company will be able to offer solutions with lower PCF to its customers, contributing from their Scope 3 emissions reduction.

Costs

The key costs of this project are the time allocation of Givaudan's teams (procurement and sustainability) and suppliers' teams. Givaudan is offering technical support to its suppliers at every step along the way to ease the learning process.

Impact beyond sustainability and business

Co-benefits

With its collaborative approach, Givaudan is aiming for the sharing of best practices in terms of emission reduction in the citrus supply chain. The spread of sustainable practices can lead to improved ecosystem health, benefiting biodiversity and local communities.

Potential side-effects

As the methodologies and standards regarding the PCF calculation keep evolving over time, Givaudan foresees that the PCFs the company receives might be adapted to the new requirements in the future.

Typical business profile

Companies in the Flavorings industry and other industries utilizing natural raw materials.

Approach

1. Assess Scope 3 emissions hotspots to identify high‑impact raw materials

2. Select priority value chains and suppliers to be included in the project scope

3. Engage suppliers with clear requests, defined expectations, specific deadlines, and a step‑by‑step process for participation

4. Support suppliers in accurately calculating and reporting their primary PCF data

5. Analyze collected data to design collaborative emission‑reduction projects, set measurable targets, and track results over time

Stakeholders involved

Internal Stakeholders involved

From Givaudan’s side, the Procurement and Sustainability teams are being involved in this project.

External Stakeholders involved

Givaudan included 10 citrus suppliers in the project.

Key parameters to consider

The key parameter was the supplier readiness to share past and current PCF information. Based on this information, Givaudan is trying to do a projection for the future PCF values and engage in the conversation of reduction opportunities.

Implementation and operations tips

Collaboration: For the success of this project, strong collaboration is needed between stakeholders, both internally and externally.

Trust and Transparency: open and realistic discussions help foster understanding between stakeholders and establish a better foundation for future collaboration

Long-term thinking: Awareness that emission reduction needs careful planning, and the PCF collection is just the first step of this journey.

Clarity for the requirements: for some suppliers, this might be the first time they collect primary and secondary data employed to calculate and share raw material PCFs. Clear communication of the requirements along with sufficient support is needed.