Climate Change Data

Environmental Metrics

ESG Focus Areas

• Nutrition & Health
• Climate & Energy
• Resources & Circularity

Environmental Achievements

• GHG scope 1 + 2 reduction – cumulative structural improvement of ~17% versus ~8% in 2018 (baseline 2016)
• Energy efficiency improvement year on year of 2.3% versus 1.4% in 2018
• Purchased electricity from renewable sources increased to 50% versus 41% in 2018
• 88% of waste recycled versus 83% in 2018

Social Achievements

• Substantial improvement in Safety Frequency Recordable Index from 0.33 to 0.28
• Employee Engagement Index of 74% with a response rate of 92%
• 50% of female members of Managing Board, Executive Committee, and Supervisory Board as of February 15, 2020

Governance Achievements

• Continued compliance with the Dutch Corporate Governance Code
• AAA rating in MSCI

Climate Goals & Targets

Environmental Challenges

• Weak macroeconomic conditions and global trade issues impacting Materials business
• Negative effect of African swine fever (ASF) on sales to swine business in China and Southeast Asia
• Softer macroeconomic conditions in the second half of the year impacting Human Nutrition & Health

Mitigation Strategies

• Focus on cost reduction and operational efficiency
• Diversified business model and geographical presence in Animal Nutrition & Health
• Customer-centricity and commercial excellence initiatives in Human Nutrition & Health
• Shifting Materials portfolio toward higher-value, specialty materials

Supply Chain Management

Supplier Audits: Together for Sustainability/EcoVadis sustainability assessments and audits

Responsible Procurement

• Sustainable Procurement Program (SPP), Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products, renewable energy solutions

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 2, 3, 7, 12, 13

Company's purpose and focus domains align with these SDGs; initiatives contribute to all 17 SDGs

Sustainable Products & Innovation

• Veramaris®, Project Clean Cow, EverSweet™, Niaga®, Balancius®, Akulon® RePurposed

Awards & Recognition

• Best UN Sustainable Development Goals Award at Sustainable Business Awards Singapore 2019
• Listed in Forbes Global 2000: The World's Best Employers
• A- rating from CDP Climate

Environmental Metrics

ESG Focus Areas

• Nutrition
• Health
• Bioscience
• Climate Change
• Circular Economy
• Food Security
• Sustainable Agriculture
• Healthy Diets & Nutritious Food
• Biodiversity
• Human Rights
• Employee Well-being
• Diversity & Inclusion
• Governance

Environmental Achievements

• 27% absolute reduction of scope 1 + 2 greenhouse gas emissions versus 2016 baseline
• 8% scope 3 greenhouse gas emissions intensity improvement versus 2016 baseline
• 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®

Social Achievements

• Improved Frequency Index of Recordable Injuries to 0.22 from 0.24 in 2020
• Maintained Employee Engagement Index at 76%
• Increased female executives to 23% from 21% in 2020
• Increased under-represented nationalities at executive level to 31% from 30%
• Launched ‘It’s OK’ campaign to prioritize employee mental and physical well-being
• Provided immunity-optimizing supplements to 100% of employees

Governance Achievements

• Executive Committee is now 40% female
• Management Board and Supervisory Board are now both 50% female
• Developed new ambitious Inclusion & Diversity commitments for 2022–2025

Climate Goals & Targets

Environmental Challenges

• Global supply chain and logistics disruptions
• Inflationary pressures
• COVID-19 pandemic
• Water risks increasing due to climate change and urbanization
• Biodiversity loss
• Mycotoxin contamination in feed

Mitigation Strategies

• Implemented effective and inclusive hybrid working practices
• Took appropriate pricing actions to counter inflationary pressures
• Launched various mental health awareness campaigns
• Implemented water reduction programs
• Responsibly sourced high-risk raw materials
• Provided mycotoxin risk management solutions (Mycofix®)

Supply Chain Management

Responsible Procurement

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

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• 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 (Zero Hunger)
• SDG 3 (Good Health and Well-being)
• SDG 7 (Affordable and Clean Energy)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

DSM's initiatives contribute to these goals through sustainable food production, improved nutrition, renewable energy, circular economy, and climate change mitigation.

Sustainable Products & Innovation

• Bovaer® (methane-reducing feed additive)
• Veramaris® (algal-based omega-3 oil)
• EVERSWEET™ (stevia sweetener)
• ampli-D® (fast-acting vitamin D)
• Akulon® RePurposed (recycled polyamide)
• Bio-based Dyneema®

Awards & Recognition

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

Environmental Metrics

ESG Focus Areas

• Climate change mitigation
• Health, nutrition & taste, and food security
• Innovation, digital & technology
• Product quality, safety & impact
• Respect of human rights
• Responsible & transparent sourcing

Environmental Achievements

• 88% purchased renewable electricity
• 46% Reduction in CO2e versus 2016 in former DSM
• 35% Reduction in CO2e versus 2017 in former Firmenich
• 65% Reduction in CO2e versus 2020 in former DRT
• 11% CO2e intensity improvement versus 2016 in former DSM
• 75,000 tons of CO2e reduced by Bovaer®

Social Achievements

• Launched Global Vitality Office to empower employees to make informed choices for a healthier lifestyle
• Reached 677 million people with fortified food
• Improved the lives of 92,000 smallholder farmers
• Acquired Adare Biome, a pioneer in the development and manufacturing of postbiotics
• Launched ‘Wonder You’ products for menopause

Governance Achievements

• Launched new shared values – Shape the Future, Be a Force for Good and Own the Outcome
• Established an Integration Management Office (IMO) to oversee the merger integration
• Launched dsm-firmenich Code of Business Ethics and Supplier Code

Climate Goals & Targets

Environmental Challenges

• Unprecedented low vitamin prices
• Continued destocking cycle
• Negative foreign exchange effects
• Challenging macroeconomic environment
• Geopolitical instability

Mitigation Strategies

• Initiated vitamin transformation program
• Accelerated cost synergy plans from the merger
• Restructuring program of vitamin activities
• Initiated a process to separate the ANH business from the Group
• Strengthened business continuity management
• Hedging against price and currency fluctuations
• Prioritizing high-growth, higher-margin businesses
• Developing innovative products and services

Supply Chain Management

Supplier Audits: 1210 suppliers screened through EcoVadis

Responsible Procurement

• Supplier Sustainability Performance Management
• Due diligence and Sustainability at source
• Supplier Engagement Program

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Water scarcity
• Heat stress
• Extreme precipitation
• Drought
• Wildfires

Transition Risks

• Carbon pricing
• Emission regulations
• Demand for renewable energy
• Carbon footprint regulations
• Dietary shifts

Opportunities

• Development of energy-efficient products
• Development of low-carbon bio-based ingredients
• Avoided emissions through product performance

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: EcoVadis Platinum, EDGE Global, Brazil, Mexico

Third-party Assurance: KPMG Accountants N.V.

UN Sustainable Development Goals

• SDG 2 (Zero Hunger)
• SDG 3 (Good Health and Well-being)
• SDG 7 (Affordable and Clean Energy)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)

Initiatives contribute to these goals through food fortification, sustainable agriculture, renewable energy, waste reduction, emission reductions, and biodiversity conservation.

Sustainable Products & Innovation

• PopScent Eco Max capsules
• HaloScent BerryBoost
• Re:New collection of ingredients
• Bovaer methane-reducing feed additive
• Veramaris algae-based omega-3 oil

Awards & Recognition

• EY Entrepreneur of the Year Switzerland award
• RoSPA Chemical Industry Sector Award
• Mergermarket Deal of the Year

Environmental Metrics

ESG Focus Areas

• Acting on Climate Change
• Embracing Nature
• Caring about People
• Business for Good

Environmental Achievements

• Reduced Scope 1 & 2 CO2e emissions by 36.1% vs. 2017
• Reduced Scope 3 emissions by 8% vs. 2021
• Achieved carbon neutrality at three manufacturing sites
• 96.6% of fragrance ingredients ultimately or partially biodegradable
• 100% renewable electricity across all operations

Social Achievements

• Achieved 100% Living Wage certification for all employees
• 54% of Senior Leaders self-identified as diverse (female or non-binary and/or ethnically diverse)
• Total Recordable Case (TRC) rate of 0.26 (37% improvement vs. FY21)
• Launched global mental well-being program
• Expanded partnerships and trainings for human rights protection

Governance Achievements

• Established Governance and Sustainability Committee and Human Capital Committee
• ESG criteria implemented in Senior Leaders' incentive plan
• Received a fourth consecutive Triple “A” rating from CDP
• Recognized as one of the 2022 World’s Most Ethical Companies by Ethisphere®
• Achieved ISO 27001 certification for information security

Climate Goals & Targets

Environmental Challenges

• Global macroeconomic climate and supply chain disruptions
• Evolving customer requirements for sustainable ingredients
• Global challenges in raw materials and logistics
• COVID-19 pandemic impacts

Mitigation Strategies

• Investments in future goals despite challenges
• Strengthened capabilities of integrated science-based impact measurement tools
• Established T&D Center of Excellence to address sustainability and environmental impacts in transportation and distribution
• Implemented hybrid auditing methodology despite travel restrictions
• Launched Return to Site initiative to help employees reconnect in-person

Supply Chain Management

Supplier Audits: 108 supplier audits performed

Responsible Procurement

• Responsible Sourcing Policy
• Supplier Expectation Manual
• Supplier Management and Collaboration program
• EcoVadis and Sedex assessments
• CDP Supply Chain Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity
• Droughts and floods

Transition Risks

• Regulatory changes
• Market shifts towards sustainability

Opportunities

• Development of energy-efficient products
• Renewable energy solutions

Reporting Standards

Frameworks Used: GRI Standards (Core option), OECD Guidelines for Multinational Enterprises, SASB Materiality Map, UN Global Compact Ten Principles, UN Sustainable Development Goals (SDGs)

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 27001, FSSC 22000, UEBT

Third-party Assurance: SGS Société Générale de Surveillance SA

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

Firmenich's initiatives contribute to these goals through various programs and actions related to climate change, water conservation, biodiversity, responsible sourcing, human rights, and community engagement.

Sustainable Products & Innovation

• Conscious Perfumery collection
• Circular Fragrance Collection
• SmartProteins®
• NaturePrint® perfumes
• Biodegradable PopScent® Eco fragrance encapsulation technologies

Awards & Recognition

• CDP Triple “A” rating
• Ethisphere® World’s Most Ethical Companies
• EcoVadis Platinum rating
• RoSPA Gold Award
• FEMA Emerging Leader Award