Financial implications and other risks and opportunities due to climate change
We have established a Group-wide risk management system to identify the rewards and risks that are associated with our sustainability challenges. This covers sustainability-relevant issues as a subcategory of nearly all other risk categories – from environmental and industry risks via procurement and product risks to operating risks.
In the face of climate change, we feel obligated to create an increasingly efficient energy supply. This will continue minimizing risks associated with rising energy costs, reduce our CO2 emissions and avoid any climate-related risk to our reputation, especially given increasing shareholder expectations.
Having already reached our year 2020 goal of reducing our CO2 emissions relative to the value chain (Scope 1+2) by 33 % in 2016, we are currently working on a new climate strategy that overlaps with the science-based targets that were the result of the UN Climate Summit in Paris in 2015.
We invested about € 30 million in a new, more efficient power plant at our headquarters in Holzminden in 2016. At all of our locations we are working to continuously improve our energy management system, and we are integrating our suppliers into our climate strategy. The truth is that changing environmental conditions and the concomitant fluctuations in the availability of raw materials have a direct impact on our supply chain and pose operational risks (quality of natural resources, supply bottlenecks) as well as a financial procurement risks (price increases and fluctuations).
Logically, we have taken these risks into account and addressed them in our procurement strategy. Symrise also set clear goals for 2020 to ensure its continued sustainable supply of high-quality natural raw materials. We want to have assessed all our primary suppliers of natural raw materials on ethical and ecological criteria by 2020. We have also decided to reduce CO2 emissions significantly along our supply chain (Scope 3) by integrating our primary suppliers into our climate goals as of 2017 and by maintaining our own reduction measures as part of the CDP Supply Chain Program.