Sedex > Case Studies > Sustainability-Linked Financing: A Case Study on Symrise AG

Sustainability-Linked Financing: A Case Study on Symrise AG

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Technology Category
  • Sensors - Environmental Sensors
  • Sensors - Utility Meters
Applicable Industries
  • Education
  • Pharmaceuticals
Applicable Functions
  • Human Resources
  • Procurement
Use Cases
  • Indoor Air Quality Monitoring
  • Outdoor Environmental Monitoring
Services
  • Training
About The Customer
Symrise AG is a global supplier of fragrances, flavours, food, nutrition, and cosmetic ingredients. Their clients include manufacturers of perfumes, cosmetics, food and beverages, pharmaceuticals and producers of nutritional supplements and pet food. The company, headquartered in Germany, has more than 10,000 employees worldwide and over 100 locations across six continents. With around 10,000 raw materials sourced from over 100 countries, sustainable procurement is a core part of the Symrise strategy. The company recognises how crucial responsible and sustainable operations are for today’s business, and for tomorrow’s success.
The Challenge
Symrise AG, a global supplier of fragrances, flavours, food, nutrition, and cosmetic ingredients, is committed to operating and sourcing responsibly. With around 10,000 raw materials sourced from over 100 countries, sustainable procurement is a core part of the Symrise strategy. The company recognises the importance of responsible and sustainable operations for today’s business and future success. However, the company also acknowledges a growing interest among corporate investors in promoting social and environmental sustainability. This presented a challenge to integrate sustainability targets with corporate financing, creating shared goals to form one integrated strategy.
The Solution
Symrise AG addressed this challenge by signing their first loan agreement with a financial incentive tied to social and environmental sustainability goals. This agreement, a “Revolving Credit Facility” (RFC) with a sustainability-related element, is the first of its kind for the flavour and fragrance industry globally. The loan will have a lower interest margin for Symrise depending on their performance against three indicators: reduced greenhouse gas emissions, more responsible and sustainable sourcing across the four areas of Sedex’s SMETA audit – labour management, health and safety, business ethics and environmental management, and more efficient water consumption in arid regions, including Mexico, India and Egypt. Symrise will donate the value of any interest margin adjustments from their new loan agreement to Save the Children’s youth programme in northern Madagascar, extending their support for the people in this region.
Operational Impact
  • The new loan agreement complements Symrise’s existing commitments to responsible business practices. It demonstrates the power of a single, joined-up corporate strategy with sustainability integrated throughout. This strategic approach reflects Symrise’s desire to take responsibility for future generations, materials and ecosystems, by setting up transparent and sustainable supply chains. This includes sustainability in every business area, from purchasing to human resources and aligning financial aspects like an investment with sustainability goals. The company is also investing in low-carbon initiatives and technology and is part of the Initiative for Sustainable Agricultural Supply Chains, an alliance of 33 organisations working for greater sustainability and improved living conditions for smallholders across global agricultural supply chains.
Quantitative Benefit
  • First loan agreement of its kind in the flavour and fragrance industry globally with a sustainability-related element.
  • Lower interest margin for Symrise depending on their performance against three sustainability indicators.
  • Symrise will donate the value of any interest margin adjustments from their new loan agreement to Save the Children’s youth programme in northern Madagascar.

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