Climate Change Data

Environmental Metrics

ESG Focus Areas

• High Growth Economies
• Innovation
• Sustainability
• Acquisitions & Partnerships

Environmental Achievements

• ECO+ solutions accounted for 49% of total sales, exceeding the target of 34% and on track to reach 50% by 2015.
• Energy efficiency improved by 17%, exceeding the target of 15%.
• Greenhouse-gas emissions decreased by 2% compared to 2008 (target is 25% reduction by 2020).
• Opened the first commercial cellulosic ethanol plant in Emmetsburg (Iowa, USA), producing a cost-competitive fuel that cuts emissions.

Social Achievements

• Launched the 'Handbook for Product Social Impact Assessment', a methodology for assessing a product’s social impact.
• Employee Engagement Index was 70%, in line with the global standard.
• Continued progress towards Inclusion & Diversity goals, increasing the number of women in executive positions from 11% to 12%.

Governance Achievements

• Implemented the ONE DSM Culture Agenda to promote greater cohesion and a stronger company culture.
• Continued to implement its Code of Business Conduct, with over 90% of employees completing training.
• Appointed Geraldine Matchett as CFO, increasing board diversity.

Climate Goals & Targets

Environmental Challenges

• Volatile macroeconomic developments, including sluggish European economies and slower growth in some emerging economies.
• Tough market conditions in Nutrition and caprolactam, leading to lower EBITDA.
• Negative currency effects.
• Price pressures in vitamin E.
• Increased Frequency Index of Recordable Injuries (0.47).

Mitigation Strategies

• Focus on operational improvements and working capital reductions.
• Strategic actions for caprolactam, acrylonitrile, and composite resins businesses.
• Integration of acquisitions and reaping synergies.
• Implementation of ONE DSM Culture Agenda.
• Accelerated actions to improve efficiency and reduce costs.

Supply Chain Management

Supplier Audits: 42 audits/year

Responsible Procurement

• Supplier Code of Conduct (SCoC)
• Supplier Sustainability Program (SSP)
• Self-assessments
• Supplier audits
• Sustainability trainings

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and renewable energy solutions.

Reporting Standards

Frameworks Used: GRI G4

Third-party Assurance: EY

Sustainable Products & Innovation

• ECO+ solutions
• KhepriCoat® anti-reflective coating
• Cellulosic bio-ethanol
• Bio-based succinic acid
• Dyneema® fiber
• EcoPaXX® bio-based polymer
• Waterborne coating resins
• MaxiBright® enzyme
• OatWell® oat beta-glucan

Awards & Recognition

• Singapore Sustainability Award
• CII-ITC Sustainability Award
• Green Power’s Sustainable Bio Award
• NIMA Marketing Award
• Frost & Sullivan Award for Customer Value Leadership
• Society of Plastics Engineers Automotive Division Innovation Award
• EVMI Dutch Food Top 100’s Social Media Award
• ITMA Future Materials Awards
• JEC Europe 2014 Innovation Awards

Environmental Metrics

ESG Focus Areas

• Sustainability

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Health for People
• Health for the Planet
• Healthy Livelihoods
• Climate Change Mitigation
• Climate Change Adaptation
• Circular Economy
• Biodiversity
• Water Stewardship
• Product Stewardship
• Food Security
• Sustainable Agriculture
• Healthy Diets & Nutritious Food
• Occupational health, safety & well-being
• Human rights
• Talent attraction & development
• Employee inclusion & diversity

Environmental Achievements

• 27% absolute reduction of scope 1 + 2 greenhouse gas emissions versus baseline 2016
• ~23% structural improvement of scope 1 + 2 greenhouse gas emissions versus baseline 2016
• 8% scope 3 greenhouse gas emissions intensity improvement versus baseline 2016
• 72% purchased electricity from renewable resources
• 6.0% energy efficiency improvement, year-on-year
• 7.8% water efficiency improvement in water-stressed sites versus 2020
• Avoided approximately 2 kt CO2eq emissions in 2021 by using bio-based feedstock for Dyneema®
• Avoided approximately 37 kt of CO2eq reduction in 2021 using Rapidase® Smart

Social Achievements

• Launched ‘It’s OK’ campaign to prioritize employee mental and physical well-being
• Extended #optimizeyourimmunity campaign providing immunity-optimizing supplements to employees and families
• Improved Frequency Index of DSM Recordable Injuries to 0.22 from 0.24 in 2020
• Overall employee engagement remained at 76%
• Executive Committee is now 40% female, Management Board and Supervisory Board are 50% female
• Progress made on improving the representation of women (23% female executives) and under-represented nationalities at executive level (31%)
• Developed new ambitious Inclusion & Diversity commitments for 2022–2025

Governance Achievements

• Established Executive Committee to accelerate strategic alignment and operational execution
• Implemented new organizational structure with three market-focused Business Groups
• Completed the sale of Resins & Functional Materials and associated businesses
• Continued compliance with the Dutch Corporate Governance Code

Climate Goals & Targets

Environmental Challenges

• Global supply chain and logistics disruptions
• Inflationary pressures
• COVID-19 pandemic
• Biodiversity loss
• Water scarcity
• Climate change physical risks
• Climate change transition risks

Mitigation Strategies

• Implemented effective and inclusive hybrid working practices
• Took appropriate pricing actions
• Provided support and resources to internal and external stakeholders during the COVID-19 pandemic
• Implemented GHG reduction program
• Increased internal carbon price from €50 to €100/t CO2eq
• Signed additional power purchase agreements for renewable electricity
• Conducted physical risk assessments on top 30 sites
• Established and piloted a process to assess potential impacts of transition to net-zero
• Implemented water reduction program
• Developed and implemented sustainable sourcing strategies
• Developed and implemented product stewardship roadmap

Supply Chain Management

Responsible Procurement

• Sustainable Procurement Program
• Supplier development and evaluation program
• CO2REDUCE program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Droughts

Transition Risks

• Regulatory changes
• Market shifts
• Increased carbon pricing

Opportunities

• Development of energy-efficient products
• Growth in sustainable solutions

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option, UN Global Compact, UN Sustainable Development Goals (SDGs), Taskforce on Climate-related Financial Disclosures (TCFD)

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 7
• SDG 12
• SDG 13
• SDG 14

DSM's initiatives contribute to these goals through improved nutrition, sustainable food systems, renewable energy, circular economy, climate action, and ocean conservation.

Sustainable Products & Innovation

• Bovaer®
• Veramaris®
• EVERSWEET™
• ampli-D®
• Akulon® RePurposed
• Arnitel® B-MB
• Bio-based Dyneema®

Awards & Recognition

• Asia’s Most Socially Responsible Company of the Year (ACES)
• Platinum sustainability medal from EcoVadis
• AAA rating from MSCI
• Prime Status with ISS-ESG
• Double A rating on Climate and Water from CDP

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Reduced enteric methane emissions by 30% with Bovaer®
• Launched Sustell™, a sustainability service to improve the environmental footprint of animal protein production

Social Achievements

• Acquisition of Adare Biome to strengthen gut health offerings
• Partnership with Yili to collaborate on research, innovation, and sustainability

Governance Achievements

• Supervisory Board consisted of 30% women in 2023
• Implemented a new operating model within dsm-firmenich, including DSM

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic environment, including inflation, volatile exchange rates, low vitamin prices, and customer destocking
• Geopolitical instability impacting supply chains and demand
• Commodity market competition impacting sales volumes and margins
• Talent availability in a tight labor market
• Cybersecurity threats

Mitigation Strategies

• Business continuity management improvements
• Alternative sourcing strategies and optimized safety stocks
• Focus on high-growth, higher-margin market segments and innovative products
• Vitamin transformation program to improve profitability and reduce cost
• New operating model and enhanced employee engagement initiatives
• Integrated cybersecurity framework and enhanced employee awareness

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: EU Taxonomy

Third-party Assurance: KPMG

Sustainable Products & Innovation

• Bovaer®
• Sustell™
• ProAct 360™
• Veramaris®