The fragrance and flavor industries have a key role to play in socio-economic development relating to the sourcing of raw materials – notably in relation to job creation, skills development and the improvement of employment prospects. This is especially important for people living far from the main centers of employment.
F&F companies must ensure respect for human rights and labor standards in our activities and products, as well as in our business relationships and in monitoring the activities of partners. In areas where there is political instability or even conflict, companies have to be especially vigilant.
In their operations and supply chains, F&F companies rely on a variety of ecosystem services that are generally classified as common property and/or public goods, and which must be protected. The protection and/or rehabilitation of biodiversity is an imperative as well as an opportunity to develop new projects and engage employees and wider communities.
As responsible industries, we should also seek to go beyond our core business activities by contributing to dynamic and positive change at a local level, whether through involvement in education or culture, community cohesion or wider technological development.
1.1. We support our suppliers and their local communities with fair and long-term partnerships.
1.2. We promote respectful labor practices in line with fundamental human rights and international labor standards.
1.3. We recognize the need to protect and restore biodiversity, and to promote the sustainable use of all ecosystems.
Increasing concerns over climate change raised expectations of industry. Regulators, customers and other stakeholders want to know how we will anticipate issues, diminish risks, lower emissions and develop solutions.
The fragrance and flavor industries are committed to a circular economy approach with practical measures that include limiting the environmental impact of their facilities and investing to comply with environmental rules.
Engaging in a circular economy approach requires us to rethink the old industry model and adapt it to changed societal expectations. For example, waste is becoming either a material resource or an energy resource (through recycling and energy recovery), with a circular economy approach allowing companies to create value and make savings by lowering waste treatment costs or reusing materials.
To ensure resource availability in the future, companies should ensure that the raw materials used in our product portfolio - whether natural or synthetic – are used efficiently. The sustainability and environmental footprint of both natural and synthetic ingredients will need to be considered, recognizing that synthetic production can be more sustainable than use of natural ingredients.
In addition, companies should use energy, water and other resources carefully, and implement the principles of green chemistry, in the knowledge that resource consumption is closely linked to their overall environmental impact – both globally and locally.
Other concerns relate to the use of non-renewable resources. Optimizing consumption and avoiding overconsumption, particularly of electricity, not only reduces the environmental impact but can give companies a competitive edge.
2.1. We apply and share measures to reduce direct and indirect GHG emissions, and efficiently manage resources such as water and energy.
2.2. We support the reduction of waste by the means of a better integration of circular economy principles.
2.3. We foster the application of green chemistry principles.
Companies have a moral and legal duty to ensure health and safety at work. But there is also an economic incentive: prevention helps to reduce risks, prevent accidents and illness, and boost economic performance.
Given the materials used, the fragrance and flavor industries have the potential to expose workers to potential occupational risks. We should therefore anticipate and limit the risks associated with products and processes to ensure the health and safety of employees. Like other industries, we have to address physical risks (from travel, musculoskeletal disorders, lifting, electrical charge, noise and so on) as well as psychological and social hazards. These issues also affect our employees and service providers, who should be informed of health and safety rules and guidance.
The fragrance and flavor industries, as significant employers, have a role to play on subjects such as equal pay and protection of certain groups in the workforce (such as young people, older people and people with disabilities). The challenge is to allow the diverse talents of the industry to express themselves fully and sustainably in the company, and to respect all differences. By implementing a diversity and equal opportunities policy and promoting inclusion, companies can increase their attractiveness as employers and improve performance.
A well-established social dialogue improves the functioning of companies and reduces the risk of conflict. Involving employees in the development and implementation of their own working conditions increases their satisfaction, well-being, motivation, loyalty and performance.
3.1. We value employees’ health and well-being, and make workplace safety a priority.
3.2. We provide a working environment with opportunities to upgrade skills through training and development while accelerating the implementation of sustainability initiatives.
3.3. We offer equal opportunities and fair treatment of all employees and promote diversity and inclusion.
Good manufacturing processes are the starting point for the development of products with a high level of safety and a good environmental profile. The benefits for companies of high-quality processes and products are significant – not only in relation to consumer satisfaction and protection, but also in terms of financial savings and competitive advantage.
‘Safety by design’ means that companies need to rethink key phases in a product life cycle, from manufacturing, to use, to end-of-life. It means managing risk, meeting customer and consumer expectations with regard to protection of human health and the environment, developing systems that ensure that the right people have the right information at the right time.
4.1. We work with key partners along the value chain to design products that are safe for consumers and the environment.
4.2. We submit our ingredients to a multi-step safety assessment and comply with rigorous risk management measures.
4.3. We actively engage in dialogue with regulators, upstream suppliers and downstream customers for better regulation, while protecting intellectual property.
4.4. We practice product stewardship by providing information and strengthening confidence in the safety of our materials.
4.5. We collaborate on new approaches towards alternatives to animal testing.
Business ethics guide companies to make decisions that are fair and transparent and to prevent risks associated with unethical business or industrial practices. Business failures in this area can have a significant impact in terms of reputational damage, as well as leading to possible commercial, civil or criminal penalties.
With a strategy in place, a company should develop indicators that allow analysis and follow-up of results and define a new direction if necessary. Although reporting is not an end in itself, these indicators have to be considered as a tool for continuous improvement.
Externally, a company can communicate on these indicators to strengthen the credibility of its actions and set an example. Building dialogue with external stakeholders helps to create an environment that is conducive to understanding of a company's business and helping it to improve.
5.1. We do not accept anti-competitive behavior, corruption or bribery within our business, and our Members are themselves committed to complying with the IFRA-IOFI Antitrust Compliance Policy.
5.2. We foster multi-stakeholder dialogue and collaboration beyond regulatory requirements to develop solutions and partnerships addressing shared environmental and societal challenges.
5.3. We communicate our activities according to international reporting standards and the UN Sustainable Development Goals.