DSM Sustainability Introduction DSM Corporate Sustainability 2017
Table of Contents 1. Sustainable Growth Areas Our Focus Sustainable Development Goals 2. DSM Sustainability Strategy DSM Strategy and Targets Brighter Living Solutions DSM Initiatives 3. Annexes Brighter Living Solutions case studies
Sustainable Growth Areas Three key areas in which we accelerate sustainable markets
Sustainable Growth Area I: Nutrition The single largest contributor to disease in the world 37 % of the world s adult population is overweight 14 % overweight or obese children and adolescents worldwide Without the right food in the first 1000 days of life, a child suffers from stunting 40 % of children in poor countries have their growth stunted 0 countries succeeded in decreasing obesity in the last 33 years 62 % of the world s obese living in developing countries < lack of proper nutrients stops the brain from developing properly < malnourished are less able to learn causing them to have lower earnings later in life
Sustainable Growth Area I: Nutrition What do we aim for? Health, comfort, transparency, traceability and guiltfree consumption both in developing & developed countries Health: Nutritious & tasty food, heart and eye-health Comfort & well-being: Great taste and texture experience Transparency: Traceability of ingredients, understand impact in supply chains Aspirational, affordable and available nutritional products in developing countries Aspirational: Marketing effort to make it aspirational Affordable: Increasing role of a responsible food processing industry Available: Reduce producer consumer distance
Sustainable Growth Area II: Climate Change & Renewable Energy Affecting people (especially the most vulnerable) and nature Without action, climate change could result in 100 million additional people living in poverty by 2030 (World Bank, 2015)
Sustainable Growth Area II: Climate Change & Renewable Energy What do we aim for? Reducing our own footprint Realize 40-45% GHG efficiency improvement 2008-2025 via energy efficiency, 50% renewable purchased electricity and DSM applies an internal carbon price for large capital investments as of 2016. Enabling a low carbon economy Brighter Living Solutions that help to reduce Green House Gas emissions across the value chain. Advocating climate action Creating markets in which low-carbon products thrive, with a focus on renewable energy and carbon pricing.
Sustainable Growth Area III: Circular & Bio-based economy The world demands more value from the resources available Waste distribution 33.5 % Construction 29.8 % Mining and quarrying 9.8 % Manufacturing 2598 M tons of waste in EU-28 in 2014 Volatile priced resources influence economic and societal stability Valuable materials are leaking from our economies 8.1 % Households 3.7 % Energy 15 % Other economic activities
Sustainable Growth Area III: Circular & Bio-Based Economy What do we aim for? Reduce critical resource use Ex: Use less resources while delivering the same contribution to the economy Replace scarce/ toxic resources Ex: Replacing scarce, toxic and polluting resources with renewable ones Extend product lifetime Ex: extending the time and added value of materials in the economy Enable recycling Ex: Enabling the retrieval of materials Recover organic waste streams Ex: Using organic waste streams as input for new application with the highest possible value
Through our Sustainable Growth Areas we focus on 5 different Sustainable Development Goals NUTRITION CLIMATE CHANGE & ENERGY CIRCULAR & BIO- BASED ECONOMY
DSM Sustainability Strategy Focused on delivering science-based, sustainable and scalable solutions that transform markets
DSM Sustainability Strategy Driving Sustainable Markets OPPORTUNITY - SEEKING Driving sustainable MARKETS TRANSFORMATION on Nutrition, Climate & Energy, Circular & Bio-Based Economy PROCESS SECURING THE VALUE OF SUSTAINABILTIY GHG efficiency, Renewable Energy Safety, Health and Environment Employee Engagement Diversity & Inclusion Human Rights Strong foundations that secure we operate as a sustainable company Sustainability as business growth driver BRIGHTER LIVING SOLUTIONS: Eco+ & People+ RISK - REDUCTION Offering sustainable and scalable solutions to our customers, integrating sustainability benefits in how we create value for and engage with our customers Influencing and creating a societal and market context in which DSM products/solutions can thrive. Driving systems change PRODUCT
DSM Sustainability Targets Driving Sustainable Markets Nutrition Climate & Energy Circular and Bio-Based Economy Sustainable Growth Areas 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 GHG efficiency improvements 40-45% by 2025 (1) % of purchased electricity from renewables 50% by 2025 Employee engagement favorable score 75% by 202 Safety: Frequency recordable index 25% by 2020 (1) Relative improvement as compared to baseline 2008
DSM Sustainability Targets Sustainability performance Sustainability KPIs 2010 Realisation 2015 Realisation 2016 Realisation 2020 Targets Dow Jones Sustainability Index Gold Class Gold Class Number 1 Gold Class Brighter Living Solutions Eco+ Eco+/People+ 39% --- 57% --- 63% --- --- 65% GHG efficiency improvements 1 --- --- --- 40-45% (2025) Employee engagement 2 70% 69% 71% 75% Safety (Frequency Index Recordables) 0.57 0.41 0.33 0.25 1 Compared to 2008; supported by Energy Efficiencies (> 1% annually) and Renewable Electricity (50% of purchased electricity in 2025) 2 Striving to reach High Performance Norm; in addition we strive to improve our (executives) Diversity Mix in (underrepresented) Nationalities (from 39% in 2010, to 50% in 2015 to 60% in 2020) and Gender (female executives from 9% in 2010, to 15% in 2015 to 25% in 2020)
ECO+ PEOPLE+ Brighter Living Solutions Innovations and products that are better for the planet (Eco+) and people (People+) based on a product life cycle approach Profitable solutions with measurably better environmental impact than mainstream reference solution. Profitable solutions with a measurably better impact on lives of people than mainstream reference solution. Brighter Living Solutions
Brighter Living Solutions Examples of Brighter Living Drivers for Eco+ and People+ Brighter Living Drivers Resources Land use Water Energy Emissions Health conditions Comfort & Wellbeing Working Conditions Community Development Renewable sources Yield improvement Reduced water consumption Renewable energy Reduced GHG emissions Maintaining good health Reduced noise Improved workers safety Local employment / Jobs creation Light weight 2nd gen feedstock Prevention of water pollution Reduced fuel use Reduced particles to air Reduce risk of diseases Reduced odor Ensured fair wages Improved Infrastructure Life time extension Energy efficiency Reduced emissions to soil Mitigating nutrition deficiencies Better touch Elimination of child labor Improved education levels Replacement critical / scarce materials Reduced emissions to water Ensure sufficient intake nutrients for good health Better taste Elimination discrimination Recycled content Mitigating health effects of pollution Experienced higher comfort Safer ingredients Waste reduction Safer ingredients
Summary DSM is driving sustainability across its operations as well as its current and future product portfolio, while engaging in targeted advocacy to enable both DSM has chosen three Sustainable Growth Areas to focus its efforts on: Nutrition, Climate Change & Energy, and Circular & Bio-based Economy. With this focus DSM contributes to several Sustainable Development Goals, in particular SDGs 2, 3, 7, 12 and 13. Brighter Living Solutions are products and innovations that are measurably better than mainstream reference solutions for planet and people. Our Sustainability Strategy is based upon securing its sustainable operations and workforce, using Sustainability as a growth driver, and driving market transformation with selected partners in the three growth areas.
Annexes Examples of Brighter Living Solutions
Dyneema heavy marine ropes Societal challenge The marine industry is one of the larger contributors to GHG emissions and it continuously explores ways to reduce for instance through improved the fuel efficiency by technical modification of existing ships. The weight of ropes contribute to the carbon footprint of transported products. DSM solution Dyneema is the world s strongest fiber. Ropes with Dyneema, are more durable, light enough for one to handle, cause less injuries, and deliver the lowest carbon footprint when measured by strength performance. People + & Eco+ Impact on the lives of people: Easier and safer handling of ropes due to the lightweight. Impact on the environment: Dyneema provides the lowest carbon footprint on a tenacity basis and as such is providing The greenest strength to customers and end users. Ropes made with Dyneema use significantly less material and last longer than alternative solutions resulting in an even lower carbon footprint over the lifetime of the ropes. More information: http://www.dsm.com/products/dyneema/en_gb/applications/ropes-linesand-slings/mooring-tow-ropes.html Health Comfort & Well-being Resources Emissions
OatWell dietary fiber Societal challenge Consumers realize the importance of reducing the risks of cardiovascular diseases and controlling blood glucose levels. Worldwide healthcare costs related to cardiovascular diseases will increase 22% by 2030, when one in ten adults is expected to have diabetes. DSM solution Nutritional ingredient OatWell used in supplements, smoothies, breads, breakfast cereals, biscuits, snacks and many other products. People+ Impact on the lives of people: Reduces the risk of cardiovascular diseases by helping to lower cholesterol levels and reduce peak blood glucose levels after a meal. Health Comfort & Well-being More information: www.dsm.com/markets/foodandbeverages/en_us/products/nutraceuticals/oat well.html
Pack-Age packaging solution 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, Pack-Age customers see yield improvements of up to 10% through a combination of reduced moisture loss, lower wastage and reduced milk use. And since Pack-Age is clean label, no further ingredients are needed to preserve the cheese from mold during ripening. Resources More information: www.dsm.com/markets/foodandbeverages/en_us/products/preservation /pack-age.html
Uralac Ultra coatings Societal challenge Solvent-borne coatings are responsible for 21% of the global non methane Volatile Organic Compound (VOC) emission, causing a significant environmental and health impact. Additionally, the Carbon footprint of these solvent borne coatings is high compared to available alternatives. DSM solution Uralac Ultra is a 100% solid powder technology used for coatings on wooden furniture that is exposed to heavy-duty use, like bathrooms, children s and kitchen furniture. Brighter Living Solution Impact on environment: Uralac Ultra does not contribute to the global VOC emission. In addition, the carbon footprint of the coating in the final application is 75% lower than solvent borne coatings. Impact on lives of people: Uralac Ultra contains no toxic components and therefore safe in use during and after applying. More information: http://www.dsm.com/markets/paint/en_us/technologies/technologypowder/uralac-ultra.html Resources Emissions Health Energy