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Planet in 2015 - Annual Report 2015 - DSM

Planet in 2015

DSM recognizes the environmental impact of its business operations and is committed to taking measures to protect the planet for future generations. Within the Planet dimension of its Triple P (People, Planet and Profit) approach, DSM delivers activities, solutions and innovations that improve the environmental footprint of its business and its value chains. This chapter describes the material environmental issues that have been identified through DSM's stakeholder consultation in the DSM materiality matrix: Climate change & renewable energy, Water security, Biodiversity, and Sustainable & circular value chains; as well as other topics DSM considers to be relevant and important to the company’s operations. The topics Bio-based economy and Sustainable animal protein are described in 'Stakeholder engagement' on Bio-based economy. A model of how DSM creates value for its stakeholders through its natural capital is shown on How DSM creates value for its stakeholders.

Targets 2010-2015

Within the framework of its corporate strategy, DSM defines long-term sustainability aspirations, which include targets to improve the eco-efficiency of its operations. These targets are translated into plans and activities within a corporate multi-year plan. The plan provides the necessary guidance to each of the business groups.

The eco-efficiency targets for the period 2010-2015 were based on the ambition that by the end of 2015, all DSM sites in the world should meet minimum standards applied within the EU or the US, via the use of Best Available Techniques. All new plants and major plant modifications must meet these requirements from the start.

All of DSM's 2010-2015 environmental targets, except for greenhouse-gas (GHG) emissions, were efficiency targets in which performance is related to production volumes. The target for GHG emissions was an absolute reduction of DSM’s direct CO2 and N2O emissions and other gases, as well as of indirect CO2 emissions. The base year for this target, and for the energy efficiency target, was 2008. The divested units DSM Agro, DSM Melamine, DSM Elastomers, Citrique Belge and DSM Special Products were excluded from this 2008 base year, but the impact of all other acquisitions and divestments is reflected in the total GHG emissions (scopes 1 and 2).

Energy and GHG have a target period of 2008-2020 and are on track to be met by 2020 or have already been met (the GHG absolute reduction target was achieved after the (partial) divestment of DSM Fibre Intermediates). The other six environmental indicators have a target period of 2010-2015 and, except for water and Chemical Oxygen Demand (COD), the targets for these other indicators (volatile organic compounds (VOC), SO2, NOx and waste) have been met.

The COD target was not met mainly due to a planned improvement project at DSM Fibre Intermediates in North America having not been implemented. An explanation of why DSM did not reach its water targets as well as the associated learnings can be found in the section 'Water security' on Water security and in 'What still went wrong in 2015' on What still went wrong in 2015.

The table below shows the 2015 performance against the base year of the key environmental indicators and the corresponding target. Both the performance and the target are expressed as percentage of efficiency improvement, except for GHG which is an absolute reduction. See also 'Sustainability statements' on Sustainability statements − Planet.

DSM publishes detailed information and supporting calculations on the environmental performance of all its production sites on the company's website.

Table 1: Progress made in 2015 towards environmental reduction targets

Progress made in 2015 towards environmental reduction targets
   
% Reduction realized compared to reference year
Targets
   
2015
2010-2015
2008-2020
         
Climate change
Energy efficiency
19%
 
20%
 
Greenhouse gases
75%1
 
25%
Emissions to air
VOC
50%
40%
 
 
SO2
91%
70%
 
 
NOx
31%
30%
 
Discharges to water
COD
17%
20%
 
Water availability and use
Total water consumption
0%
15%
 
Waste
Landfilling non-hazardous waste
67%
15%
 
1 The GHG efficiency, which accounts for changes in production volume, has improved by 20% in 2015 compared to 2008

DSM follows the GHG-protocol of the World Business Council for Sustainable Development (WBCSD) for reporting GHG emissions, except for the fact that emissions related to on-site generated electricity and steam that is sold on a very limited number of sites are excluded from the total GHG-emissions. The overall impact of this deviation in 2015 is in the order of 3% of DSM’s total GHG-emissions. This relative impact is significantly larger than in previous years, due to the (partial) divestment of DSM Fibre Intermediates and DSM Composite Resins and the divestment of Synres in 2015. In order to ensure objective comparison with DSM performance in previous years, the 2011 International Energy Agency conversion factors have been used as in previous years.

DSM Responsible Care Plan 2016-2020

DSM has developed a new Responsible Care Plan for the period 2016-2020. This plan comprises ambitions, targets and actions in the field of safety and health, resource efficiency (environment), sustainable value chains (Product Stewardship and sustainable products) and security.

The development of the new plan started in 2014 and continued into 2015. Many people, with different backgrounds and responsibilities, were involved in the development of the plan, which was approved by DSM’s Managing Board and is considered an integral part of the company’s Strategy 2018: Driving Profitable Growth.

In the field of resource efficiency, the main corporate target is a further reduction of the GHG emissions per unit of product: GHG efficiency improvement of 45% by 2025 compared with 2008. This target is an update of the previous GHG reduction target, which ran until 2020 and was an absolute reduction target. Updating the target was necessary, as the (partial) divestment of DSM Fibre Intermediates meant the company immediately achieved its absolute reduction target. DSM believes that true climate commitment should not be dependent on divestments or partnering and has thus set a new, equally ambitious, GHG efficiency improvement target for 2025.

In addition, DSM has defined a renewable energy strategy for its operations and set a target to source 50% of its electricity needs from renewable sources by 2025, with the aim of becoming 100% renewable thereafter.

New targets have also been defined on several other supportive indicators. The table on the next page gives an overview of the targets on all environmental indicators.

Table 2

Indicators
New targets
GHG efficiency improvement
45% by 2025 (reference 2008)
Energy efficiency improvement
>1% annually (>10% from 2015-2025)
Renewable electricity
50% by 2025
Reduction of emissions to air per unit of product (VOC, NOx, SO2)
40% in 2020 (reference 2015)
Waste
80-90% recycled by 2020
Water
Water risk assessments completed on 90% of selected sites by 2020

The target for the reduction of emissions to air will focus on a limited number of sites which make the largest contribution to DSM’s total emissions to air, or on those sites which are yet to apply Best Available Techniques (and thus have relatively high emissions to air).

The target for waste aims to reduce the amount of waste that is landfilled or incinerated without heat recovery, either through the reduction of the generation of waste or through a shift to an outlet with higher added value, such as recycling or recovery.

The target for water acknowledges that water issues (scarcity, pollution) are usually local or regional. Going forward, DSM will focus on sites in scarcity regions and sites that have a relatively high groundwater consumption or waste water discharge. Appropriate measures will be taken at site level in order to mitigate any risks identified in water risk assessments. DSM is convinced that this local approach fits better with the specific characteristics of water security than a company-wide, global target on reduction of water consumption or discharge to water.

DSM completed the acquisition of vitamin C-producer Aland in 2015. As a result, the facility at Jiangjing (China) will also be incorporated in DSM's environmental performance as of 2016 and it is expected that this will significantly impact some of the absolute numbers of the environmental indicators.

Climate change & renewable energy

It is now widely accepted that human activity is responsible for global warming, resulting in climate change. Without an urgent change in mindset and behavior to break with fossil-fuel dependencies, the planet is set to exceed the so-called ‘1.5 to 2 degree ceiling’: the global average increase in temperature defined by the UN as the upper threshold to avoid a potentially devastating impact on people.

DSM aims to be a front-runner in climate action. Next to reducing its own carbon footprint, the company enables a low-carbon, bio-renewable economy through its innovative solutions and advocates climate action.

At COP21 in Paris, national governments adopted an unprecedented global agreement on climate change prevention and adaption. In the run-up to COP21, DSM initiated and joined several initiatives to reassure governments that key global business leaders would be highly supportive of a strong agreement:

  • DSM’s CEO/Chairman of the Managing Board Feike Sijbesma led the development of an open letter to the world's governments facilitated by the World Economic Forum, which was signed by 78 CEOs from around the world (representing USD 2.1 trillion in revenue) stressing that business was ready to partner on climate action.
  • Mr. Sijbesma supported the World Bank as 'private sector ambassador' of the Carbon Pricing Panel, which includes heads of Government of, amongst others, Germany, France, Ethiopia and Mexico. This group, convened by the heads of the International Monetary Fund, World Bank Group and OECD, urges countries and companies to put a price on carbon.
  • DSM North America was invited by President Barack Obama to join 80 companies (with a combined market capitalization of over USD 5 trillion) in the American Business Act on Climate Change, to demonstrate business support for climate action.

The outcome of COP21 was a legal agreement signed by nearly 200 countries, which set ambitious goals to limit average global temperature rises to well below 2 degrees and reach net zero emissions in the second half of the century. Governments agreed to periodically review and improve national climate action plans.

DSM acknowledges that the world must urgently shift its energy mix from fossil-based fuels towards renewable energy, while continuing to secure its energy supply. DSM has undertaken an advocacy role to cooperate with energy suppliers, co-leaders in industry and regulatory bodies to enable the necessary shift towards more renewable energy. In 2015, DSM became a signatory to the Climate Group’s Renewable Energy 100 (RE100), an initiative that brings together leading companies worldwide that commit to powering 100% of their electricity needs from renewable sources. DSM has set a target of sourcing 50% of its electricity needs from renewable sources by 2025. In addition to defining its own renewable electricity use, DSM provides solutions for the renewable energy industry, such as technologies to produce cellulosic bio-ethanol from agricultural residual developed together with POET, and anti-reflective coatings for solar panels.

DSM’s approach to addressing climate change involves quantifying and tracking GHG emissions, as well as monitoring its energy consumption. Where feasible, projects are initiated that benefit both the environment and financial performance.

In 2015, DSM joined the UN ‘Caring for Climate’ initiative and became a so-called Carbon Pricing Champion. To identify the risks and opportunities emerging from increased carbon pricing in many countries, DSM has set an internal carbon price of €50 per ton CO2 for reviewing large investment decisions. Last year, DSM was amongst the highest scoring companies in the Carbon Disclosure Project Leadership Index, which demonstrates the company’s leading approach with respect to climate change disclosure practices.

Energy

In determining energy efficiency, DSM measures its energy consumption in relation to the production volume of each production site. In 2015, DSM’s energy efficiency performance improvement reached 19%, which was 2% above the 2014 level, and well on track to meet the 20% target in 2020. The main energy efficiency improvements were realized at the DSM Nutritional Products sites in Belvidere (New Jersey, USA) and in Sisseln (Switzerland). In Belvidere the installation of a new chiller (see description on the left) and the full utilization of a combined heat and power unit (cogen) were the main contributors for the efficiency improvements. In Sisseln the change in product mix towards less energy-intensive products, as well as several technical improvements in the infrastructure, contributed to the energy efficiency improvements.

Energy-efficient chillers

Energy conservation has become a key business focus for many companies across the globe including DSM. Reducing energy usage not only helps the environment but helps the bottom line as well.
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In 2015, DSM executed a variety of investment projects with the aim of increasing energy efficiency in its own operations. These projects included the replacement of an air compressor at DSM Resins & Functional Materials in Parets (Spain), improved heat recovery and several other measures at DSM Nutritional Products in Dalry (UK), the new chiller in Belvidere and lighting replacement on several sites. These projects with 2015 investments totaling €2.4 million will not just improve the company's energy efficiency but also lead to annual cost savings of approximately €1.7 million.

DSM’s total annual energy consumption decreased from 39.1 to 20.9 petajoules. The main reason for the sharp decrease is the (partial) divestment of DSM Fibre Intermediates and, to a lesser extent, of DSM Composite Resins and the divestment of Synres.

Greenhouse-gas (GHG) emissions

There is scientific consensus that certain gases (e.g. carbon dioxide, methane, nitrous oxide) have contributed significantly to human-induced climate change. These gases, which are emitted during the course of a wide range of human activities, magnify the planet's natural greenhouse effect and cause the atmosphere to retain more heat than it otherwise would. This in turn results in a series of wide-ranging and inter-linked changes to the earth's climate, with negative consequences for human health and well-being.

Since 2008, DSM has applied the Greenhouse Gas Protocol’s standards for reporting GHG emissions (scopes 1, 2 and 3). DSM does not yet follow the latest (2015) GHG Protocol scope 2 guidance, an amendment to the GHG Protocol's corporate standard. DSM’s target was to achieve a 25% reduction in scope 1 and 2 GHG emissions by 2020, compared to its 2008 emission levels.

GHG emissions scope 1 & 2

In 2015, DSM emitted a total of 1.1 million tons of CO2-equivalents, which is a reduction of 75% compared to its emissions in 2008 (the total reduction target was 25% in 2020), which is almost fully attributable to the (partial) divestment of DSM Fibre Intermediates.

GHG emissions scope 3

The Greenhouse Gas Protocol Corporate Value Chain Standard defines scope 3 emissions as ‘all other indirect emissions that occur in a company’s value chain’. DSM has reported on its scope 3 emissions since 2012. Scope 3 reporting can be considered as complementary to reporting on scope 1 and 2 emissions. Taken together, they reflect all the GHG emissions associated with DSM’s business activities. Inevitably, the calculation of scope 3 emissions is largely based on estimates, extrapolations and assumptions. In 2015, in keeping with the WBCSD 'Guidance for Accounting & Reporting Corporate GHG emissions in the Chemical Sector Value Chain', DSM prioritized reporting on three scope 3 categories that are most relevant and applicable to DSM's business, and for which data are available. In 2016, DSM will focus on designing a relevant and useful scope 3 reporting process for DSM going forward, which will focus on the material areas where the biggest improvements are possible.

The main difference between the scope 3 emissions of DSM in 2014 and 2015 is the effect of the (partial) divestment of DSM Fibre Intermediates and DSM Composite Resins. As other changes are assumed to be relatively minor and within the limits of scope 3 reporting accuracy, the scope 3 emissions for 2015 have been derived from the 2014 Report, correcting for the deconsolidation of these two businesses. The purchased goods and services category accounted for DSM’s highest scope 3 emissions in 2015, but declined by approximately 18% compared to 2014 due to the (partial) divestment. On the other hand, scope 3 emissions in the investments category were more than 16 times higher due to DSM’s 35% shareholding in ChemicaInvest, which now comprises these businesses.

DSM strives to achieve a sustained reduction of its carbon footprint across the value chain, for example through the DSM Supplier Sustainability Program. See also 'Stakeholder engagement − Suppliers' on Supplier Sustainability Program (SSP) strategy.

Avoided emissions

With a strong contribution from DSM, in 2013 the WBCSD and International Council of Chemical Associations (ICCA) published guidelines on reporting of avoided emissions for companies in the chemicals sector. According to these guidelines, avoided emissions are defined as the difference between the life cycle GHG emissions from the solution of the reporting company, and the comparable solution (i.e. a conventional product or market average).

DSM supports the guidelines and is starting to apply them through its ECO+ program in order to credibly capture the effects of its products in the value chain. Applicable DSM products and solutions for which avoided GHG emissions may be evaluated include advanced surfaces for solar panels, cellulosic bio-ethanol and enzymes. An example where DSM helps its customers avoid emissions are in jeans blended with Dyneema®, which can result in 50% added strength and a 30% lifetime decrease in carbon (and ecological) footprint.

Water security

Water and waste water

DSM had previously set a company-wide target to reduce its water usage by 15% between 2010 and 2015. DSM has come to the conclusion that it would be more effective to concentrate its improvement efforts on businesses that operate in regions where water is scarce.

DSM implemented a number of water-saving projects during the period. These had relatively little effect on the overall water-efficiency performance, as the improvements were largely realized at sites that contribute very little to the total water consumption. That notwithstanding, a small improvement was achieved in 2015. The main contribution came from the DSM Nutritional Products site in Sisseln where, besides operational improvements, a collaboration with two external partners on acidic waste water treatment resulted in a reduction in water consumption of about 300,000 m3 per year and a net saving of €90,000. At the DSM Nutritional Products site in Lalden (Switzerland), water consumption went up due to increased once-through cooling; this did however contribute to a reduction in energy consumption.

DSM supports UN CEO Water Mandate

"Water availability is a worldwide concern. Many areas in the world are increasingly facing water scarcity, water pollution and water damages by natural disasters. A more sustainable management of water is therefore a must in our society. Individual and collective actions are necessary to mitigate adverse effects on water quality and availability in the regions and businesses where we operate. DSM truly values initiatives like the United Nations Global Compact CEO Water Mandate and its principles. The topic of water and sustainable water management has our continued full attention."

Feike Sijbesma, CEO/Chairman Managing Board

DSM’s water pollution reduction programs aim to reduce total water pollution, mainly through reductions in COD. Performance on this measure decreased during 2015, mainly as a result of product mix changes and extremely high summer temperatures at the DSM Nutritional Products site in Sisseln. In addition, a planned improvement project at the DSM Fibre Intermediates site in Augusta (Georgia, USA) was not implemented. Consequently, DSM did not meet its targeted 20% improvement in COD discharge by 2015, ending the year on a 17% overall improvement.

Waste

DSM had set itself a target of 15% efficiency improvement in terms of waste to landfill. In 2014, it had already made a relative improvement of 54%; in 2015, this was further increased to 67%. The main improvements came from the DSM Nutritional Products sites at Dalry, where two main waste streams were recycled for use in land restoration and agriculture, and at Kingstree (South Carolina, USA), where the shift to alternative waste outlets was completed. DSM has set a new target for waste and aims to recycle 80-90% by 2020, which reflects the ambitions in the field of the circular economy. The aim is to reduce the amount of waste that is landfilled or incinerated without heat recovery, either by reducing the amount of waste generated or through a shift to an outlet with a higher added value, such as recycling or recovery.

Other emissions to air

DSM was again able to improve its efficiency in terms of VOC in 2015. The company had achieved an improvement of 50% versus 2008 by year-end, up from 35% in 2014 and clearly ahead of its 40% target. The further improvement in 2015 was largely due to the fact that an abatement system to reduce the emissions of dichloromethane (DCM) at the Laiwu (China) site became operational.

For NOx, the efficiency improvement at year-end 2015 was 31%, meaning that the target of 30% was achieved. This figure did however come down during the year (2014: 42%), mainly as a consequence of a change in the law in Germany, which affected the way in which emissions from on-site energy generation are accounted for. This was relevant to the DSM Nutritional Products site in Grenzach (Germany) as there is a power station on its property, which is operated on behalf of a consortium with other partners. At the Dalry site, an increase in the amount of electricity produced on site using gas led to a reduction in NOx efficiency. The 70% target for SO2 reduction had already been realized in 2012 and since then, the performance improvement was at or above 90%, without significant changes at the DSM sites.

Biodiversity

In its bid to protect biodiversity − the variety of life on earth − DSM identifies and monitors protected areas in the vicinity of its sites and the impact that it has on them. Some 58% of sites have been identified as being located in or adjacent to high biodiversity value areas. In all cases, production sites are operating within applicable limits, as defined by local authorities. DSM's Biodiversity position paper can be found on the company's website.

Sustainable & circular value chains

True sustainability can only occur when all parts of the value chain work together towards the same goals. To this end, DSM seeks to develop and promote products and solutions that help reduce GHG emissions and energy usage across its value chains through its ECO+ program. DSM requires its suppliers to meet its sustainability standards and minimize their own environmental footprints so that all downstream players, from customers to end-users, can improve their environmental footprints as well. See also 'Stakeholder engagement − Suppliers' on Supplier Sustainability Program (SSP) strategy.

ECO+

ECO+ is DSM’s program for the development of sustainable, innovative products and solutions with environmental benefits. Products qualify as ECO+ when their environmental impact is lower than competing mainstream products that fulfill the same function. When considered over their entire life cycle, ECO+ solutions offer superior performance with a lower eco-footprint. The ecological benefits can be created at any stage of the product life cycle, from the raw materials through to manufacturing and potential re-use and end-of-life disposal. DSM uses comparative Life Cycle Assessments (LCAs) and/or expert opinions to determine whether a solution should be considered ECO+.

To this end, the company is chairing the work of the WBCSD Chemical Sector working group. In 2015, DSM and a number of other players in the chemical sector began consistently applying the harmonized LCA methodology set out in the guidance ‘Life Cycle Metrics for Chemical Products’, which DSM published together with nine industry peers in 2014. This is setting a new standard and creating additional transparency to the benefit of the chemical sector, its business partners and consumers.

ECO+ solutions can be found across all of DSM's business groups with many more under development. They now account for 57% of total sales, exceeding the company's ECO+ sales target of towards 50% of the running business by 2015. In 2015, 52% of ECO+ innovation launches were supported by comparative LCAs as was 30% of the ECO+ running business.

An example of an ECO+ solution is Maxiren®, an enzyme-based coagulant ingredient for cheese making. By using this product, less of this type of ingredient is needed, and the cheese has a longer textural shelf life. Another ECO+ example is DSM’s anti-reflective coating for solar panels. Whenever glass meets air, a portion of light hitting the glass is reflected; wasted sunlight means wasted energy. The innovative coating applied on solar panels minimizes reflection and enables a power gain of up to 4% over uncoated modules. Its smooth closed structure and surface enable solar panels to withstand most extreme weather conditions, contributing to longer durability.

Circular economy

A circular economy is a system in which resources in the value cycle can be used and re-used again and again. This requires a different way of thinking compared to linear value chains. For example, resource use, production and end-of-life waste management would all be taken into account in the ingredient and material design stage. DSM is strategically positioned and committed to increase durability of products, and to enable the recovery of valuable materials after use. By using safer and bio-based ingredients in the design phase, DSM can positively influence the circular economy of its customers and consumers.

In addition, DSM is a member of the Ellen MacArthur Foundation CE100, a group of companies working together to create solutions for the circular economy. DSM's CEO/Chairman of the Managing Board Feike Sijbesma is a member of the steering committee of Project Mainstream, an initiative of the Ellen MacArthur Foundation and the World Economic Forum (WEF) aimed at accelerating cross-sector engagement for a circular economy.

The company adopts a multi-faceted approach to sustainable and circular value chains. In 2015, DSM developed a circular economy roadmap, detailing the role of all business groups and identifying relevant key products that can facilitate DSM's customers in pursuing their ambitions as regards the circular economy. DSM's major complementary initiatives, in addition to the ECO+ program and its contribution to the bio-based economy through its activities in its Emerging Business Area DSM Bio-based Products & Services, are discussed below.

Renewable raw materials

To maintain continuity of DSM’s operations, company-wide aspirations are in place to secure future availability of resources. This not only reduces DSM’s exposure to supply chain risks, it also contributes to the preservation of biodiversity on the planet. Securing future availability of resources can partly be achieved by relying on renewable energy rather than fossil fuels. DSM is exploring ways to gain access to renewable raw materials with a lower carbon footprint than the fossil equivalents they replace. Membership of the Ellen MacArthur Foundation CE100 provides DSM with valuable insights into ways to incorporate renewable raw material usage in the company’s operations.

DSM is also carefully selecting renewable raw materials suppliers as a technology provider to support the establishment of new value chains based on biomass feedstocks. These include waste coming from operations in the agricultural industry, and are key ingredients for fuels such as bio-ethanol. Bio-based fuels emit significantly less carbon dioxide, supporting DSM’s efforts in reducing climate change. In 2015, approximately 16% of DSM’s total spend on raw materials related to renewable raw materials. This represents an increase compared to 2014 (11%), which is mainly due to the deconsolidation of DSM Fibre Intermediates and DSM Composite Resins. See also DSM's position paper on sustainable biomass on the company's website.

Product Stewardship

DSM recognizes both the impact and the benefit of a Product Stewardship strategy as part of its own responsibility in the full value chain, in line with the principles of Responsible Care®. This strategy is embedded in the company’s Safety, Health and Environment (SHE) requirements, sustainability programs (ECO+ and People+), and is closely linked to LCA activities to evaluate toxicological profiles throughout the value chain. This strategy provides for the longer-term management of risks and opportunities in the area of chemicals management.

In 2015, DSM sharpened its own ambitions in Product Stewardship to address societal requirements and expectations. The overall ambition for the period 2016-2020 is detailed in a five-year plan which defines DSM’s vision and major objectives, drawing together existing programs and initiatives:

  • implementing a continuous improvement program to control Substances of Very High Concern (SVHC) in DSM products and the supply chain;
  • promoting active connections between Product Stewardship and Direct Sourcing, Innovation and Marketing & Sales in the business groups; and
  • anticipating upcoming regulation and societal needs.

The progress of the multi-year plan is monitored by DSM's ‘Product Safety Network’, which is being transformed into a ‘Product Stewardship Network’ by expanding its scope and members to properly drive Product Stewardship competence.

In the control of SVHCs, DSM has started to assess, before the end of 2020, all substances of which more than 1 ton per year is used in its processes to identify and monitor long-term human and environmental hazards. Identified SVHCs need to be reported in a DSM Priority Substance List and their use challenged by an internal justification process by a multidisciplinary team. The final goal is the phase-out of toxic substances, not only from DSM’s own portfolio but from the full life cycle of its products, in line with the company's commitment to bringing more sustainable alternatives to the market. Where substitution is not currently possible, a risk assessment is performed following industry standard procedures. If safe use cannot be shown, the SVHC is prohibited from further use or production within DSM.

DSM is committed to delivering high-quality products to the market while complying with global and local product safety regulations (e.g. ARECS, K-REACH and Turkey REACH), in line with the Responsible Care® principles. DSM supports the UN initiative to implement a Globally Harmonized System of classification and labeling of chemicals (GHS), for which an internal e-learning has been developed. DSM closely follows developments on health exposure scenarios for mixtures that need to be implemented in the industry’s product safety systems.

In 2015, regulatory changes meant that DSM had to adjust its automated systems to ensure that all products are accompanied by mandatory information in the form of compliant Safety Data Sheets and Labels. These were successfully implemented. The most significant changes related to the implementation of GHS in Brazil and in the US and the implementation of the new European directive on the Classification, Labeling and Packaging (CLP) for mixtures.

DSM is working to meet the 2018 deadline of the EU regulation on the Registration, Evaluation, Authorization and Restriction of Chemical substances (REACH), by registering all substances of which between 1 and 100 metric tons per year is produced. At the same time, DSM continuously updates existing dossiers and supports authorities in EU member states in evaluating an increasing number of substances. DSM is in continuous dialogue with its raw materials suppliers to guarantee sustainable business through REACH compliance along the value chain.