At this time, I would like to welcome everyone to the IFF 2021 ESG call. I would now like to introduce Michael DeVeau, Head of Investor Relations and Communications. You may begin.
Thank you. Good morning, good afternoon, and good evening, everyone. Thank you for joining us today for our third annual webcast focused on IFF's Environmental, Social, and Governance, or ESG efforts, a set of topics of increasing importance for all our stakeholders. One week ago, on June 2, we published our 2021 ESG Plus report, which provides the foundation for today's discussion. The report can be found on our website at iff.com/responsibilities. This year's report is the first of our combined company following the merger with DuPont's Nutrition & Biosciences Division, or N&B, on February 1, 2021.
It includes final updates on our legacy IFF performance, a summary of important integration work completed, progress on ESG achievements from the year as one company, and our collective roadmap for the future. Before we begin, I ask you to please take a moment to review our forward-looking statements.
During the call, we're making forward-looking statements about our ESG targets and goals. These statements are based on how we seem to see things today and contain elements of uncertainty. For additional information concerning the factors that can cause actual results to differ materially from our forward-looking statements, please refer to our cautionary statement and risk factors contained in our 10-K filed on February twenty-eight, 2022. Today, I'm joined by an excellent group of leaders that will highlight how IFF approaches our ESG priorities.
This includes IFF CEO Frank Clyburn, our Chief R&D, Global Integrated Solutions and Sustainability Officer, Dr. Gregory Yep, our Interim Chief Human Resources and Diversity, Equity, Inclusion Officer, Peter Sommers, and our VP of Global Sustainability and EHS, Kip Cleverley. We will start with prepared remarks and then take any questions that you may have.
To ask a question, please feel free to email me directly at michael.deveau@iff.com. Again, that is michael.deveau@iff.com, or feel free to send an email to Michael Bender at michael.bender@iff.com, as we're happy to take any questions that you may have. With that, I would now like to introduce our CEO, Frank Clyburn. Frank, you may begin.
Thank you, Mike, and thanks to everyone for joining. We are excited to share a number of topics today that really speak to the root of our ESG journey and showcases where we're going. Before we go further, however, I'll provide a brief overview of what you can expect today. First, we'll begin with our company purpose statement, applying science and creativity for a better world. It guides everything we do here at IFF and sets our course for success.
I'll also provide an overview of our current ESG leadership positions and share the results of our recent ESG materiality assessment, which serves as the foundation of our strategy and disclosures. Next, we'll introduce our new ESG Plus strategy, the Do More Good Plan, including a look back of key performance metrics from 2021, as well as a look ahead towards their ambitious goals.
Finally, we will share a recap of where we've been and where we're going through 2030 and beyond. Thanks again for joining us today, and as Mike said, we will be happy to answer your questions following the remarks from our team. We believe our company purpose, applying science and creativity for a better world, speaks to a higher societal calling. These words, built on core IFF attributes of science and creativity, are especially true now as they provide us with a guidepost for how to do better or how to do more good in a way that's aligned with who we are as a company.
When I joined IFF in February of 2022, the company had just celebrated its one-year anniversary of the historic merger with DuPont's Nutrition & Biosciences Division and launched the Do More Good Plan.
Both of these factors spurred ongoing and dynamic change within our organization. With the Do More Good Plan, it helped to elevate the heritage sustainability strategy, first established in 2010, to a more comprehensive ESG structure that includes even more ambitious efforts and targets, and you'll hear more about those today. What we know is that the Do More Good Plan, grounded in our purpose, inspires us at IFF to work toward a more sustainable and equitable future. To get there, we are focused on abiding by our ethics and values and delivering on our promises with transparency.
We continue to innovate, keeping the health of our people, communities, and planet at the forefront of all we do. These aspirations require dedicated execution that is only possible by empowering our people to take ownership of our goals and process.
To that end, our global teams work tirelessly to identify areas of improvement and are comfortable in speaking up when they have better ideas on how to do things differently at IFF. As Mike mentioned, you can find more detail about how we are living our purpose in our new report, Transforming Our World, which was published last week and is now available on our website. If you haven't yet had the chance to review it, I hope you will take the opportunity to do so.
As I mentioned, I joined IFF just a few months ago, and what struck me immediately was the level of maturity in ESG and sustainability management that the legacy company had achieved in just a little more than a decade with a dedicated program.
Today, while we know there's still more work to do, particularly now that we have a much larger operational footprint and more than 24,000 employees following the merger with N&B, we are all extraordinarily proud of the strong ESG leadership foundation we've been able to build. Personally, I'm excited to be a part of this larger team as we chart this course together and continue to strengthen and grow. We already have a number of touch points that illustrate how our efforts are progressing.
Rating and ranking providers such as Sustainalytics, MSCI, and Bloomberg ESG have recognized us as leading in this space. Sustainalytics ESG risk rating measures a company's exposure to industry-specific material, ESG risk, and provides a quantitative measure of how well a company is managing those risks.
Our current Sustainalytics ESG risk rating is 22.3, placing us 24th out of 463 companies in the chemicals industry and in the 6th percentile. Similarly, our current MSCI ESG ratings assessment is AA on a scale of AAA-CCC. We have held this position consistently for the last several years, which is higher than the industry average in environmental topics such as water, waste, and carbon emissions.
Further, our performance on key ESG metrics not only translates to higher rankings like these, but also to higher profile and influential recognitions, including the Dow Jones Sustainability Indices, CDP, EcoVadis, and the Bloomberg Gender-Equality Index.
For example, 2021 saw us being named to the DJSI for the second time in a row, meaning we remain among the top 10% of the 2,500 largest companies in the S&P Global Broad Market Index. Due to our action on climate change, water stewardship, and deforestation, CDP named us one of the only 14 companies out of nearly 12,000 assessed as a triple A list company. With EcoVadis, which assesses companies on the environment, human rights, ethics, and sustainable procurement, we maintain the selective platinum sustainability rating, placing us among the top 1% of companies assessed.
Another significant rating is our listing in the Bloomberg Gender-Equality Index for the very first time. Being included in this index, attributed to our transparency and gender-related data reporting, was quite a notable and exciting achievement.
As we work to address key ESG issues, what's especially important to us is that we are aligned with recognized initiatives, memberships, and associations such as the UN Global Compact, the World Business Council for Sustainable Development, and the CEO Action for Diversity and Inclusion, to name a few. As a matter of fact, one of the first things I signed on to when becoming CEO was the CEO Action Pledge because it aligned with my personal commitment to diversity and inclusion and also seamlessly maintained IFF's longstanding participation with this initiative.
To provide additional context for our discussion today, I wanted to share how we define and prioritize our ESG commitments here at IFF. In 2021, we completed a full ESG materiality assessment for the combined company to understand our opportunities and risks and to identify the most important ESG topics for our business and stakeholders.
What you see here on the right is a visualization of those results in ESG materiality matrix that captures the most important topics for our business and stakeholders. In turn, these topics help guide our ESG strategy and disclosures. The exercise helped us identify a total of 19 material ESG topics, which we grouped into four categories: product, environmental, social, and governance. All 19 are very important to us and are monitored, managed, and reported on.
From among the set, you can see in the top right-hand quadrant of this matrix what we consider our top priorities for tier one, which are the 9 topics which we set goals for and which we provide more robust disclosures around. Within those 9, the top three ranked material ESG topics are responsible sourcing, innovation and sustainable product solutions, and climate change.
Our other six tier top one topics include talent acquisition, engagement and retention, product safety and quality, stakeholder engagement and transparency, water, diversity, equity, and inclusion, and employee health, safety, and well-being. Thank you for your time today. I'll now turn it over to Greg, who will tell you more about how our Do More Good Plan is set up to address these ESG topics and more.
Thanks, Frank. Following our materiality assessment exercise, we distilled the results into a strategic roadmap with four pillars that correspond to the four categories of our material issues, environmental, social, governance, plus sustainable solutions or ESG, which we refer to as the Do More Good Plan. Our Do More Good Plan is grounded in and activated by our purpose, which sits at the core of this strategy. Reflected in the top half of the framework visual here, we begin with science and creativity through our sustainable solutions pillar.
As consumers increasingly demand greater transparency through the supply chain, we are focused on helping our customers proactively respond to these market shifts while achieving their own ESG goals through sustainable innovation and essential product solutions we can offer.
In the bottom half shown here, we are also focused on contributing to a better world by focusing on our environmental, social, and governance priorities. Through our focus on climate and planetary health, we are leading our urgent climate action to reduce our operational footprint and promote biodiversity and regenerative ecosystems throughout the responsible sourcing.
To support equity and well-being, we are unleashing the uniqueness and potential of our people, ensuring the health and safety of our workforce, and strengthening local communities, including the farmer communities around the world that we source from. Finally, to drive transparency and accountability, we always act with integrity, adhere to the highest ethical standards and levels of transparency in line with stakeholder expectations and hold ourselves accountable to continuous improvement.
These four areas of the Do More Good Plan are not only the right thing to do, but we believe we can use our own sphere of influence to make a positive impact in contributing to the most pressing sustainable development challenges. More than ever, we need science and creativity to create a better world, and we need to seek and inspire our customers to join us. In this effort, our R&D strategy is designed to accelerate innovation, drive integrated solutions, and create next-generation sustainable technologies that meet and exceed the expectations of our stakeholders.
I am proud to lead IFF's R&D organization, where we are bringing to bear unmatched scale, renowned scientific talent, and compelling portfolio strength and capabilities, including industry-leading biotechnology. Let me start off on the left with what we do.
To help facilitate rapid technology and talent development, we have taken a centralized approach to embedding sustainability into our innovations. From a sustainability perspective, one of the ways we believe our products can make the most significant difference is through their positive lifecycle impacts during their use phase. This includes quantifying the environmental impacts and benefits of our solutions through the lifecycle assessment. We then leverage these learnings across all divisions as we partner with our customers to deliver end-to-end solutions.
Combined with our regenerative approaches and circular design, we are enabling our customers to meet their own ESG goals and do more good. Why is this important? Our sustainable solutions can have a beneficial impact on the world in ways that outweigh the impact of our own footprint. Let me give you a few examples.
To replace animal-based protein and reduce related greenhouse gas emissions, we're developing new plant-based proteins with great taste and texture. To drive the circular economy and reduce food waste, our portfolio of upcycled foods and fragrance use ingredients that otherwise would have been discarded. IFF's health and biosciences business delivers sustainable innovation by delivering and manufacturing probiotics, fibers, and natural extracts with important health benefits for our consumers and society.
You can find more examples like this in our Sustainable Solutions chapter of our new ESG report. Finally, to help quantify these efforts, we have our 2030 sustainable solutions goals that are also aligned with the UN Sustainable Development Goals, particularly SDG 12 Responsible Consumption and Production and SDG 13 Climate Action.
Our IFF goals include to have sustainability value proposition that supports people and planet for all our new innovations, to enable customers to save 50 times more CO2e than generated by IFF-owned manufacturing sites, and to partner with customers to achieve their ESG goals. To tell us more about the Do More Good Plan, I will now turn it over to Kip.
Hey, thank you, Greg. Our pillar on climate and planetary health is all about taking bold actions to protect our planet for future generations. Starting on the left-hand side of the slide, we rely on key partners to guide our efforts for doing our part to mitigate climate change. For example, we work closely with the Science-Based Targets initiative, CDP, and RE100 on setting applicable targets. We continue to advance our transparency in line with the Task Force on Climate-related Financial Disclosures or TCFD.
If you look to the middle section of the slide, as we transition from our Heritage IFF 2025 goals, it is a good time to reflect on our progress.
I am happy to say that we were fully on track to meet those goals as of the end of 2021, with an amazing 23% reduction in greenhouse gas emissions, achieving 59% renewable energy across the enterprise, and having more than 40% of our major manufacturing facilities verified as zero waste to landfill. I wanna pause and thank all of the teams throughout the world that made these results possible.
Thank you. Next, as we look ahead with the expansion of our company, we saw that we also had a large increase in our environmental footprint. As such, we created a new 2021 baseline for the combined company and set new 2030 goals to drive us forward. Let me tell you about those goals.
By 2030, we will reduce our absolute greenhouse gas emissions by 50% below our new baseline of 2021. We will strive for 100% renewable energy across our operations, and we will expand our zero waste to landfill program to all major manufacturing facilities. Although our expanded footprint will be a challenge going forward, we also see this as a great opportunity to do more good in the world.
Importantly, all of these efforts are consistent with our triple bottom line approach that is not only good for the environment but also reduces costs. Within IFF's Do More Good Plan, our unwavering commitment to responsible sourcing, which is also one of our most material ESG topics, is reflected as a cross-cutting priority across both our environmental and social pillars. It also represents an important enabler of the sustainable solutions pillar.
As a critical partner in the global consumer goods supply chain, we are constantly sourcing the raw materials required to deliver our broad offering of ingredients and products. Taking this into consideration, our responsible sourcing program is all about driving sustainable practices within our entire supply chain, including ethical standards and environmental stewardship. If we start on the left of this slide with some key highlights, I am pleased to say that we have made great progress in our responsible sourcing program and are leveraging the previous efforts of both Heritage companies.
First, we were named a 2021 CDP Supplier Engagement Leader for the second consecutive year for strong management of our supply chain emissions. For the first time ever, we were also awarded an A in CDP Forests for our efforts around palm oil. We are now expanding that program across the combined company.
We continue to work with Sedex and EcoVadis to engage our business-critical suppliers. I am pleased to say we were again awarded platinum EcoVadis status, the highest designation available. During the year, as part of our integration efforts, we refreshed or formalized key policies reflective of the combined company, including our company responsible sourcing policy, as well as policies for sustainable soy and sustainable palm oil.
Moving to the middle of the slide, we have also made good progress on natural certifications. With more than 50 natural ingredients certified for life, nearly 70 certified organic products, more than 160 natural extracts that are certified vegan, and many essential oils, absolutes, and extracts that have achieved COSMOS approval.
Finally, as part of those efforts, we have set 2030 responsible sourcing goals, including to promote regenerative ecosystems and achieve zero deforestation for strategic raw material supply chains, beginning with palm, soy, and wood. To support animal welfare and launch a human rights program for our business-critical suppliers. To ensure prosperous and equitable value chains and implement at least 10 field initiatives linked to supporting farmers' livelihoods. Our pillar on equity and well-being reflects IFF's clear focus on providing a safe, flexible, engaging, attractive, and inclusive workplace.
Among other social topics focused on people and community, this pillar includes both our commitments to employee health and safety as well as diversity, equity and inclusion. I will start off this slide with some remarks about our environmental health and safety program, and then I will hand it over to Pete to share more from an HR perspective.
To highlight our continued focus on safety management, in 2021, we launched core operating principles, where our Committed to Zero safety campaign is front and center. It underscores that nothing is more important than the health and safety of our people and the communities where we operate. The combined company safety organization is made up of the best of both heritage organizations, where we're leveraging best practices across the company. In year one, our focus has been on developing world-class safety systems and rolling out globally consistent policies.
I'm pleased to say that we've made a good start with reductions in both total recordable and lost time incidents. This is just the beginning. We will continue our laser-like focus on the systems, the culture, and policies that will drive us to world-class safety performance. I will now hand it over to Pete.
Thanks, Kip. As a continuation of the safety discussion in 2021, unfortunately, the world experienced an ongoing COVID-19 pandemic. At IFF, we maintained our focus on protecting our employees and supporting our customers. Our COVID-19 crisis task force refreshed all management guidelines for sites as pandemic-related expectations around vaccines and masking evolved, including updating our crisis response toolkit with guidance on preventing or minimizing COVID-19 workplace exposures.
As the effects of the pandemic have in many ways changed the paradigm of work life forever, in 2021, we also formally adapted our culture to this new world through the launch of the Future of Work program, a new enterprise-wide hybrid work model to provide employees with remote work options.
The goal of this way of working is to improve personal employee productivity, retain and attract key talent, and reduce our overall physical footprint in line with the environmental goals of our Do More Good Plan. So far, it has been extremely well received by our people. We also took the opportunity in 2021 to support our employees with expanded engagement activities, including the launch of our first ever global learning week. During a one-week period in 2021, more than 15,000 hours were collectively spent learning together during the more than 70 global and regional online learning events.
Among other activities, the week included senior leader panels, external speakers, and facilitated training across our four regions globally.
This is something we will continue to do going forward, and we just finished up our second annual global learning week in 2022 last month, which achieved an even bigger reach. A significant part of our equity and well-being pillar also focuses on diversity, equity, and inclusion, or DE&I. At IFF, we believe that each colleague's unique lived experience is a value add to our culture. This belief is grounded in our DE&I vision. Your uniqueness unleashes our potential. With this mantra always in our mind, in 2021, we continued to make excellent progress on our DE&I strategy.
We further solidified our strong commitment to gender parity by earning a coveted spot on the Bloomberg Gender-Equality Index, due in large part to our commitment to transparency in gender-related data disclosures.
We continue to partner with EDGE, which holds a leading methodology and certification process to guide organizations on gender representation, pay equity, effective policies and practices, and the inclusiveness of an organization's culture. EDGE sets the minimum threshold of targeting at least 30% of either gender at all levels of the organization. As of the end of 2021, IFF met that threshold for all levels of the organization, with the exception of the executive committee as a combined company.
As we continue to move toward full gender parity over the course of 2022, we will roll out an inclusive talent management training series that tackles removing unconscious bias at each stage of the employee life cycle, and we will always formalize a global parental leave policy.
If we move to the middle of the slide, as proud as we are to have made great progress this year, we know we have more work to do in terms of racial equality. IFF remains steadfast in our commitment to inclusion within our ranks, as well as opportunity and diversity within our practices. In the U.S., IFF's diversity by employee category continues to be a mixed story of both success and opportunities for improvement.
As of the end of 2021, for the combined company, 29.3% of our U.S. employees and 15.4% of our board of directors represented people of color as defined by the U.S. Equal Employment Opportunity Commission. We know we also have significant room to improve the racial diversity across all levels of management and operations.
Finally, on the right side of this slide, while we know that reaching full inclusion is an ongoing journey as part of our Do More Good Plan, we have rolled out a set of ambitious 2030 DE&I goals to track our progress, hold ourselves accountable, and assess the advancement of our program, including 50% women at all organizational levels, including the board of directors. 40% people of color in management roles in the U.S. with equitable representation in other markets globally. All global and local policy and practices fully inclusive of LGBTIQ+ colleagues with a focus on transgender inclusive healthcare.
Five percent of our workforce will be people with disabilities, and 100% of physical locations, internal and external technology, policies and processes will be fully accessible with people with disabilities. To achieve these goals, we must turn our words into collective action.
We are by no means perfect, but through dedicated advancements, we are working hard to create safe spaces that empower employees to share their uniqueness and work towards effecting positive change. All our commitments towards a better world are underpinned by an ethos of transparency and accountability, including adhering to the highest ethical standards, committing to transparent disclosures, and holding ourselves accountable to continuous improvement.
We have a strong enterprise risk management program in place and maintain high expectations for ourselves as reflected in things like our code of conduct compliance program, robust information security protocols, responsibility to quality and product safety, and global human rights due diligence processes, among other things. This commitment to transparency also extends to our reporting and disclosures.
Our new standards adherent third-party assured 2021 ESG report that was published last week is in alignment with three widely recognized reporting frameworks, the GRI, SASB, and TCFD. We aim to build on this work and continuously improve our annual ESG disclosures moving forward. In fact, as part of the Do More Good Plan, our goals are to increase transparency of annual disclosures and KPIs in line with stakeholder expectations, launch ESG metrics tied to executive compensation, and expand oversight for ESG governance at the board of directors level.
Now I will turn it back to Frank to share a recap of what we have heard today and to share more about what is ahead for IFF.
Thank you, Pete. When we launched Transforming Our World last week, it held two significant firsts. One, it was IFF's first ever environmental, social, and governance, plus sustainable solutions for ESG plus report. Secondly, for the first time, we reported on our combined performance as one company. For us, the report signified a moment of celebration. Even with that, however, we know that we still need to advance our efforts.
ESG considerations underscore much of what is most important to our business community, our employees, and the world around us, and we need to continue down our path of advancement. Although this is a big challenge, I am confident in our ability to make progress against our goals. We are unique in that we are able to leverage a strong history of sustainability, safety, DE&I, and other leadership areas from the best of both of our heritage organizations.
To date, we've developed a robust strategy, a solid baseline, and set ambitious yet feasible 2030 goals. The first year, we've performed well and have created a solid foundation with a clear path forward. In the environmental area. This means doing our part to lead on climate action and biodiversity by strengthening our operational efficiencies and sourcing, such as reducing our absolute scope one and two greenhouse gas emissions by 50% below 2021 levels by 2030.
Reaching zero waste to landfill for all our major manufacturing facilities, and achieving zero deforestation for strategic supply chains. Regarding our social commitments, we are focused on creating a great place to work, meaning one that is safe, engaging, inclusive, and empowers our employees.
Within the DE&I, this includes a goal to reach 40% people of color in management roles in the United States, and 50% women in management roles company-wide. On a related note, I am also especially excited about the parental leave policy that Pete mentioned. What's particularly significant about this is that we are already able to move on it so quickly in 2022. On June thirtieth, we will institute a global minimum standard of 16 weeks of fully paid parental leave for both men and women.
On corporate governance and ESG governance, we'll continue to act with integrity and increase our transparency and accountability through our risk management efforts and reporting processes, including strengthening our disclosures on our ESG reporting frameworks. Finally, our innovation pipeline has traditionally been a differentiator.
Now, with our sustainable solutions pillar, one that helps customers achieve their own ESG goals, we're able to support our customers in new ways and in turn, consumers to a greater extent. Among our goals in this area are for all of our new innovations to have a sustainability value proposition that supports people and planet, and we will enable our customers to save 50 times more CO2 than generated at IFF's own manufacturing sites.
In closing, I would like to thank my entire leadership team for their vision and commitment to living our purpose every day, and for clearly cascading that message down to all of our teams and employees around the world. I also wanna thank all of our IFF employees for their dedication and hard work on 2021, much of which is captured and highlighted in our new ESG+ report.
With that, I will turn back to Mike to lead the Q&A portion of our call.
Great. Thanks, Frank. Maybe first question for you. Congratulations on launching the Do More Good plan. As a new CEO of IFF, can you tell us why ESG is so important to IFF stakeholders?
Yes. Thanks, Mike, for the question. For me, ESG is really about the fundamentals of running a responsible company. For instance, you heard that our environmental footprint has increased. In doing our part to reduce energy, which in turn reduces greenhouse gas emissions, is good for the planet, and it also drives down our utility operating costs. In the social area, really promoting a diverse, equitable, and inclusive workforce and ensuring a safe and healthy workforce makes us much stronger as a company.
Also, having transparent corporate governance practices to which we hold ourselves accountable is also a vital part of being a responsible company. As you've heard, our sustainable product solutions can have an even bigger, positive impact on the world while helping our customers to meet their ESG goals.
In net, ESG is the right thing to do for our business, for our people, and the environment, and our customers and investors value it, and employees wanna work for a sustainable company.
Thanks, Frank. Maybe next question to Greg Yep, if we can. We've seen ESG before. What is the plus for, and how does it differentiate IFF?
Thanks, Mike. Thanks for the question. Well, in addition to the leadership in ESG, IFF focuses on innovation or sustainable solutions, and this is what our plus differentiator is. Examples of key sustainable solutions for our customers are, for example, modern biotechnology, an enabling tool to develop sustainable solutions for our customers, such as enzymes that replace chemicals, provide energy savings, and facilitate better use of natural resources.
Also, technologies and material science, for example, our engineered polysaccharides program, made up of renewable and biodegradable materials that provide new high-performance sustainable materials for many of our markets we serve. The third one could be alternative protein areas, using advancements in modulation and texture to support the replacement of animal-based products. The same great texture and taste as animal protein.
Great. Thanks. Thanks, Greg, for that. Next question for Kip. How has the DuPont N&B integration impacted your Do More Good Plan strategy or presented challenges related to the operations and your footprint size? How is this impacting your goals and performance?
Hey, thanks, Mike. Good question. Yes, the merger with N&B has increased our operational footprint like you heard. For example, our GHG emissions baseline increased by a factor of 8 times, and the water footprint has increased by more than 21 times, so that's quite a bit. These changes were primarily driven by the production-intensive nature of our expanded operations and also the product and ingredient manufacturing processes requiring more energy and water.
We're addressing this challenge by doubling down on our dedicated energy and water efficiency programs, as well as expanding our use of renewable energy, with the goal of lightening our footprint of the manufacturing sites. These approaches are also guided by our ambitious 2030 goals of the Do More Good Plan for the combined company.
Although having a much larger footprint is gonna be a challenge, we also see this as an opportunity to do more good in the world. We're leveraging our best practices and are confident that we can drive progress on the combined company as we have done with both legacy organizations. I think there's a positive outlook there, Mike.
Great. Thank you. Thank you, Kip. Next question for Pete. How are your people measured on their progress? Are ESG metrics incorporating into management remuneration targets?
Hi. Thanks. Mike, a few points here. Firstly, to measure our progress while holding ourselves accountable in meaningful ways, two of our goals of the Do More Good Plan are to launch ESG metrics tied to executive compensation and also expand oversight for ESG at the board of director level. Currently, we have annual ESG-related performance targets for our executive committee members, which then are cascaded throughout our organization that are linked to performance and also linked to compensation.
Lastly, some management roles with very specific ESG-related responsibilities also have compensation more directly tied to the progress against our ESG targets.
Great. Thank you, Pete. Frank, I think, no more further questions. I'll turn it back over to you for some closing remarks.
Yes, Mike. Thank you. I'd like to thank everyone for joining us today. This is a very important day for us, and we look forward to continuing on our ESG journey. I wanna really thank everyone that participated on today's call. Hopefully, you can see that this is a really important area of focus for IFF, and we look forward to keeping you up to date on our progress. Enjoy the rest of the day.
Thank you, and this does conclude today's program. Thank you for your participation. You may disconnect at any time.