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How DSM creates value for its stakeholders - Annual Report 2015 - DSM

How DSM creates value for its stakeholders

DSM’s strategy is aimed at driving profitable growth through science-based, sustainable solutions based on the defining megatrends of our time. By using its unique competences in health, nutrition and materials, DSM is fostering economic prosperity, environmental progress and social advances to create value for all stakeholders simultaneously.

The diagram on the left is based on the International Integrated Reporting Council’s <Integrated Reporting> (<IR>) framework and gives a schematic overview of the value DSM creates over time based on six capitals. These are: human capital; societal & relationship capital; natural capital; financial capital; intellectual capital; and manufactured capital. Descriptions of how these capitals apply to DSM are given below left.

DSM employs these capital inputs in its business in the execution of its strategy and in the fulfilment of its mission to create brighter lives for people today and for generations to come. The company’s organizational and operating model is made up of market-facing business groups focused on the primary business functions (Innovation and R&D, Direct Sourcing, Manufacturing & Operations and Marketing & Sales), global support and functional excellence departments and regional organizations. It uses these to minimize and mitigate risks and take advantage of the opportunities the megatrends provide, thereby transforming the capital inputs into value outcomes aimed at having the most beneficial impact possible.

Since 2002, DSM has established a track-record in Triple P reporting, disclosing its performance in terms of People, Planet and Profit. For the purposes of comparability, the six capitals as defined in the <IR> framework continue to be clustered under People (comprising the human and societal & relationship capitals), Planet (natural capital) and Profit (financial, intellectual and manufactured capitals).

Specific performance indicators relating to the capitals are provided throughout this Integrated Annual Report (hereafter referred to as the Report).