Brighter Living Solutions concept: Eco+ & People+

Size: px
Start display at page:

Download "Brighter Living Solutions concept: Eco+ & People+"

Transcription

1 Sustainability at DSM: Brighter Living Solutions concept: Eco+ & People+ DSM Food Specialties Jacky Brunet SADST South Africa, May 2016

2 Content DSM and Sustainability The sustainability focus in the dairy industry Maxiren XDS case

3 Mission Our purpose is to create brighter lives for people today and generations to come We connect our unique competences in Life Sciences and Materials Sciences to create solutions that nourish, protect and improve performance Page 3

4 DSM at a glance (2015) Sales* Global* presence Listed at Euronext NYSE Sustainability leader > 10 billion ~25,000 employees worldwide Share price ~ quintupled in 25 years Top ranking Dow Jones Sustainability Index DSM is a global Life Sciences and Materials Sciences company active in health, nutrition and materials DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, medical devices, automotive, paints, electrical & electronics, life protection, alternative energy and bio-based materials DSM and its associated companies deliver annual net sales of about 10 billion with approximately 25,000 employees * Including 2015 pro-forma and pro-rata (annualized) sales & number of employees (ultimo 2015) of non-consolidated Associates & Joint Ventures (for sales this is mainly Patheon, DSM Sinochem Pharmaceuticals and ChemicaInvest) Page 4

5 Global presence Continuing Operations as reported ultimo March 2016 Sales by destination 2015 North America 23% 43% High Growth Economies North America: 3,151 employees Europe: 9,298 employees Western Europe Asia: 6,028 employees 28% 6% Rest of World Latin America: 2,021 employees Africa: 73 employees Africa & Oceania: 252 employees * Excluding our non-consolidated Associates & Joint Ventures Page 5

6 Growth driven by global megatrends Health & Wellness Global Shifts Climate & Energy Aging population Healthcare issues Food composition Population growth Urbanization drive Wealth increase Sustainability concerns Resources constraints Energy concerns Health Nutrition Materials

7 Focus on DSM s Dairy solutions We support all major dairy markets (Cheese, Milk, Whey, Fresh Dairy) One of the broadest portfolios of coagulants and other enzymes, cultures, probiotics, preservation systems & antibiotic residue tests Global leader in lactase solutions Enzymes Fromase Maxiren Maxilact Piccantase Accelerzyme Preservation Delvo Cid Pack-Age Delvo Coat Delvo Nis Cultures Delvo Cheese Delvo Fresh Delvo Yog Tests Delvotest

8 Content DSM and Sustainability The sustainability focus in the dairy industry Maxiren XDS case

9 The picture can't be displayed. Sustainability We care for consumers We provide the best ingredients produced in the most sustainable way. We care for our people We make continuous efforts to improve the health and safety of our employees. We cannot be successful, nor can we call ourselves successful, in a society that fails Feike Sijbesma Chief Executive Officer DSM We care for the environment We invest and work on reducing our use of raw materials and energy, as well as our emissions and wastes. We care for others We aim for business activities and products that empower sustainable development. We support humanitarian actions and provide our expertise to help tackle malnutrition in the world. Page 9

10 Dow Jones Sustainability Index The Dow Jones Sustainability Indices (DJSI) launched in 1999, are a family of indices evaluating the sustainability performance of the largest 2,500 companies listed on the Dow Jones Global Total Stock Market Index. They are the longest-running global sustainability benchmarks worldwide and have become the key reference point in sustainability investing for investors and companies alike. The DJSI is based on an analysis of corporate economic, environmental and social performance, assessing issues such as corporate governance, risk management, branding, climate change mitigation, supply chain standards and labor practices. The trend is to reject companies that do not operate in a sustainable and ethical manner DSM was named among the worldwide leaders in the Materials industry group. Since 2004, DSM has been named the leader in this sector six times and also named among the top leaders six times Page 10

11 Why we, as DSM, focus on Sustainability? Because we cannot be successful, nor can we call ourselves successful, in a society that fails Because: Small ingredients can have a big impact. Because choosing the right ingredient enables to have positive impact on the environment protection as well as on lives of people. Profitable solutions with measurably better environmental impact than the mainstream reference solution Eco drivers: resources, land use, water, energy and reduction of emissions Profitable solutions with a measurably better impact on lives of people than the mainstream reference solution. People drivers: health, well-being, working conditions and community development ECO+ PEOPLE+

12 Small ingredients. Big impact on products and reputation Yogurts Eq Cheese consumers 50 MT of Yogurts 166 MT of cheese 10 kg of Cultures 1 kg Pure Ez coagulant You can never buy back your reputation if something goes wrong Page 12

13 Small ingredients. Big impact on products and reputation Ingredient issues = Consumers react Our customers are in the middle Cheap ingredients may not be so cheap after all Safe ingredients are essential for you and your consumers Page 13

14 DSMs Sustainability Agenda Brighter Living Solutions Driving Sustainable Markets Nutrition Climate change and renewable energy Circular and bio-based economy Sustainable Growth Platforms Sustainability as Business Growth Driver Eco+ People+ Brighter Living Solutions Profitable solutions better for people and planet 65% of DSM Products by 2020 Securing Sustainable Operations GHG efficiency Renewable energy Health & Safety Engagement Diversity Sustainable Operations in DSM GHG efficiency improvements 45% by 2025 (1) Renewable electricity 50% by 2025 Employee engagement favorable score 75% by 2020 Safety: Frequency recordable index 0,25 by 2020 Leading in reporting benchmarks Gold class DJSI (1) Relative improvement as compared to baseline 2008

15 Brighter Living Solutions Innovations and products that are better for the planet (Eco+) and people (People+) based on a product life cycle approach ECO+ PEOPLE+ - Standard for LCA developed with chemical sector peers and World Business Council for Sustainable Development (WBCSD) downloadable Guidance: - New standard for Product Social impact Assessment Downloadable: Handbook:

16 Brighter Living Solutions Examples DFS: Maxarome yeast extract used in Soups, dairy products and sauces, replacing salt. DNP: Clean cow: Feed additive increases milk production and reduces methane emissions DFS: Pack-Age, a cheese ripening solution, avoiding the need to discard cheese. DAS: Solar coating, increases efficiency of solar modules HEALTH: Risk reduction of diseases: reducing blood pressure, reducing risk of cardiovascular disease. EMISSIONS: reduced methane emissions from cattle RESOURCES: reduced milk use and waste ENERGY: increased performance PEOPLE+ ECO+ ECO+ ECO+

17 Content DSM and Sustainability The sustainability focus in the dairy industry Maxiren XDS case

18 DSM s contribution in the dairy value chain Up to 118 KT of CO 2 saving With Delvotest preventing milk waste Up to 9% CO 2 reduction With proprietary cultures and enzymes reducing protein and therefore milk input in yoghurt or a rennet requiring less milk to produce the same amount of cheese >30% of methane reduction Clean Cow, an additive to cow feed with no negative impact on animal welfare, performance, or the amount of feed they consume. 1 kg of milk = 1,65 kg CO 2 equivalent Source: Agri-footprint database 1% waste reduction With bio-protective cultures preventing food waste and replacing conventional preservatives 50 Kg CO 2 per MT of milk With silage cultures preventing spoilage and the increase of dry matter up to 5%. This results in less silage required for the same nutritional value, and therefore a reduced carbon footprint of milk.

19 Measuring our sustainability performance Life Cycle Assessment determines the environmental impacts of a product over its entire life cycle, or selected phases Raw materials & energy Raw material acquisition Manufacture Use Waste / recycle Atmospheric emissions, waterborne & solid waste, co-products, other releases Cradle to gate Cradle to grave by identifying the associated material, energy and waste flows

20 LCA is a decision support tool that can be used to Reduce environmental impacts Find the most significant hot spots Support product and steer innovations Show the consequences of design choices Product marketing Value propositions and EPD s Compliance and Corporate responsibility Reporting requirements, identifying future issues

21 Content DSM and Sustainability The sustainability focus in the dairy industry Maxiren XDS case

22 Maxiren XDS Resources Societal challenge With an increasing population, pressure on resource efficient food production is growing. DSM solution Rennet is an essential ingredient for the production of cheese. Maxiren XDS has a better performance and efficiency compared to conventional rennet (mainstream reference solution). Eco+ Impact on the environment: Less milk is needed to produce the same amount of cheese, resulting in a gain in resource efficiency. Also Maxiren XDS reduces losses of premium cheese at follow up processes like cutting, slicing and shredding as it maintains the texture over shelf life. And the whey remaining after cheese production is higher in quality. More information:

23 Maxiren XDS : High purity and enzyme specificity Specificity of the enzyme Purity of the enzyme Product Non-Bovine chymosin Maxiren XDS 7 12 Maxiren XDS is the most pure chymosin formulation on market Other Bovine chymosin 1 Specificity (Ratio milk Clotting / total Protease activity) C: related to IMCU method P: hydrolysis of alpha and beta caseins which are present in the cheese matrix High C/P ratio = better quality cheese Data are indicative but demonstrate that the specificity of Maxiren XDS is at least the same as the non bovine chymosin

24 Maxiren XDS general benefits High purity and specificity of the enzyme Reduced IMCU vs. other bovine chymosins Retain your whey value Maintain or even improve the texture over shelf-life for processibility Applicable in different cheese technologies Various advantages depending on the technology Process & production efficiency / functional performance Versatile coagulant

25 Maxiren XDS LCA Investigate the environmental impact associated with: Production and application of calf rennet and Maxiren XDS to produce 1kg cheese Only chymosin production and milk saving impacts are considered Calf stomach assumed to be waste from meat production taking no environmental burden, impacts related to transport and the rennet production process are included Using Maxiren XDS saves 43g of milk per kg of cheese

26 Maxiren XDS LCA environmental impact Additional environmental impact of using Maxiren XDS Environmental impact reduction using Maxiren XDS Production of the enzyme Reduction in milk used in cheese production leading to: Fewer livestock required Reduced feed and silage production Reduced fertilizer production Reduced agricultural land occupation impacts Reduced carbon footprint, particulate matter and fossil depletion impacts

27 Maxiren XDS LCA additional environmental impact of chymosin per 1kg cheese Carbon footprint IPCC 2013 GWP 100a Milk saving due to Maxiren XDS Chymosin Maxiren XDS Calf rennet

28 Maxiren XDS LCA - conclusions Maxiren XDS reduces the environmental impact of cheese production by reducing the amount of milk required This leads to reductions in impacts related to cattle rearing and other agricultural activities Milk reduction leads to a MT of cheese 43g of Milk per kg of cheese = liters of milk. = R trees seedlings grown for 10 years 378 trips around the world in a car

29 Conclusions The dairy industry faces like any other industry important issues, such as Climate Change and Resource Scarcity impacting society and the industries. Sustainability is one of DSM s strategic growth pillars. Brighter Living Solutions are products and solutions with a better impact on the planet (Eco+) or a better impact on people (People+) than competing solutions. The dairy industry focuses on reducing GHG emissions and water use, setting targets in optimizing the milk cycle and reducing waste. With life cycle assessments companies like DSM can measure the impact of dairy solutions, supporting the dairy value chain in achieving their sustainability ambitions. Dairy ingredients like enzymes and cultures have a proven sustainability benefit.

30

31 Maxarome Salt reduction Health Comfort & Well-being Societal challenge High salt intake can be linked to high blood pressure and cardiovascular disease. Cardiovascular diseases is amongst the main causes for mortality in Europe. European adults consume between 6 and 18g salt a day whereas the World Health Organisation recommends 5g a day. DSM solution Maxarome is a food ingredient replacing salt whilst maintaining a good taste. People+ Impact on the lives of people: Maxarome contributes to lower salt levels in daily diets. Reducing salt intake is one of the easiest ways to reduce high blood pressure and risks of stroke, cardiovascular and kidney diseases. More information: Page

32 Emissions CleanCow Societal challenge Livestock are responsible for methane emission, a GHG that causes global warming. DSM solution CleanCow, a feed additive solution under development for reducing the environmental impact of milk and beef production and with the potential to improve performance, like increased milk yield, increased body weight gain or better feed efficiency. Eco+ Impact on the environment: Reduces methane emissions by min % in vivo. More information: Page

33 Anti-reflective solar glass coating technology Energy Societal challenge Fossil fuels have a negative impact on climate. Therefore, solar power is a prime source of future energy provision. DSM solution DSM develops material concepts that increase the efficiency of solar modules, bringing down the cost of solar energy and helping to accelerate the penetration of it. One of our solutions is the leading anti-reflective (AR) coating that minimizes reflection of light, boosting the cost/performance ratio of solar panels: Same sun, More power. Eco+ Impact on the environment: DSM s AR coating enables a power gain of up to 4% over uncoated modules. Due to its smooth closed surface, it is easy to clean and it has outstanding durability. More information: Page

34 Resources Pack-Age Societal challenge With an increasing population, pressure on resource efficient food production is growing. DSM solution Pack-Age, a cheese ripening solution, allows cheese producers to tackle waste, cost and environmental impact by avoiding the need to discard cheese. Eco+ Impact on the environment: Compared to conventionally coated and ripened cheese, our customers see yield improvements of up to 10% through a combination of reduced moisture loss, lower wastage and reduced milk use. And as Pack-Age is clean label, no further ingredients are needed to preserve the cheese from mold during ripening. More information: Page