IFF

Carbon per million dollars of revenue. The legacy industry-standard reference (CDP, MSCI). Useful for cross-sector context, but distorted by margin — high-margin firms appear artificially efficient. Read alongside the operational and asset intensities for the full picture.

OpEx (operating expenditure) is the running cost of the business — staff, services, energy, materials. This shows how carbon-intensive operations are per million dollars of spend. Removes the margin distortion that revenue-based ratios introduce.

EVIC (Enterprise Value Including Cash) is the firm's total capital footprint — equity + debt + cash + minority interest. The EU's standard intensity measure (SFDR PAI 3) — answers: how much carbon does each million of capital deployed in this business produce?

PP&E (Property, Plant & Equipment) plus leased real-estate assets is the firm's physical infrastructure on the balance sheet. This shows the carbon intensity of that physical footprint — uses Scope 1+2+3 for consistency with the other headline intensities. Surfaces stranded-asset risk for asset-heavy firms.

IFF is a member of RE100 with a goal to procure 100% of electricity from renewable sources by 2030. In 2024, 453,087 MWh of renewable electricity was procured/produced (~29.7% of total electricity). Strategy includes on-site/off-site PPAs, vPPAs, green supply contracts and RECs. Executed a new vPPA in North America in 2024 following first European vPPA in 2022; these are expected to cover 40-50% of regional electricity. Latest installment: 5,000 solar panels (3,074 kW) installed at Tilburg, Netherlands site, expected to produce 2.79M kWh/year (~17% of Tilburg's energy).

By 2050, IFF aims to be net positive across the entire value chain. Long-term commitment includes 'furthering carbon reductions/high-quality, nature-based and engineered removals across the value chain as a residual emissions offset mechanism.' Carbon insetting through regenerative agriculture supply chain partnerships (sustainable soy, cocoa, vanilla) is the primary current removal lever - enhancing carbon sequestration in trees/soil, no-till farming, cover cropping. Distinguishes insets (within supply chain) from offsets (external).

• Sustainable product innovation via I4S assessment

  2030 goal: all new IFF innovations have a sustainability value proposition. For products launched 2023-2024, ~79% had a sustainability value proposition (91% in 2023, 63% in 2024). I4S methodology evaluates relative and absolute lifecycle benefits/risks. Enabled customers to avoid 27.3M tCO2e in 2024 - 16.5x IFF's own manufacturing emissions.

• Manufacturing decarbonisation via Energy & Sustainability CAPEX

  In 2024, the CAPEX program funded 140+ site-led operational projects in 30 countries, reducing 18,000+ tCO2e from Scope 1+2 emissions. Includes energy efficiency, electrification of processes, and Energy Management Program with in-house energy audits. Linked to executive variable compensation.

• Renewable electricity procurement (RE100, vPPAs, on-site solar)

  Reaching 100% renewable electricity by 2030 is the primary lever for Scope 2 decarbonisation. Procured 453K+ MWh renewable electricity in 2024 (~30% of total electricity use). Strategy includes new vPPAs in NA and Europe expected to cover 40-50% of regional needs.

• Purchased goods & services (Scope 3 Cat 1) - 70%+ of total Scope 3

  Scope 3 Cat 1 accounted for 4.0M tCO2e in 2024 (>70% of Scope 3). IFF is transitioning from spend-based to activity-based methodology and engaging 200 strategic suppliers via CDP Supply Chain (70% response rate). Together for Sustainability (TfS) audits and EcoVadis/Sedex assessments drive supplier improvement.

• End-of-life treatment of sold products (Scope 3 Cat 12)

  Cat 12 emissions were 489,508 tCO2e in 2024 - one of the larger Scope 3 categories. Addressed via circular economy principles, the Innovation for Sustainability (I4S) assessment, and biodegradable/upcycled product design (e.g., DEB technology converting plant sugar into biopolymers replacing fossil-based polymers).

• Regenerative agriculture and sustainable sourcing

  For food customers, the largest Scope 3 emissions come from agriculture (crops, dairy, livestock). IFF partners with agricultural processors on regenerative agriculture programs - carbon insetting via soil carbon sequestration, no-till farming, cover cropping, crop rotation. Sustainable Soy Policy targets DCF sourcing by 2025; in 2024 70% of global soy supply was DCF.