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Reporting policy - Annual Report 2015 - DSM

Reporting policy

Reporting policy and justification of choices made

In this Report, DSM reports for the calendar year of 2015. The company reports on its People, Planet and Profit information in such a Report on an annual basis. The previous DSM Integrated Annual Report was published on 3 March 2015.

In the Report by the Managing Board, DSM explains its vision and policy with respect to sustainability practices and reports on its activities in this field during 2015. In addition to disclosing data and developments in the categories of People, Planet and Profit, DSM also reports on its sustainability strategy, material topics, stakeholder engagement activities, and its sustainability governance framework. Furthermore, DSM discusses the global trends that drive its strategy. It is DSM’s policy to proactively canvas the views of its key stakeholders on issues of material importance to the company.

UN Global Compact

DSM has been a signatory to the UN Global Compact since 2007 and commits to annually report on progress in implementing the UN Global Compact’s 10 Principles in the areas of human rights, labor, the environment and anti-corruption. This Report is DSM’s Communication on Progress 2015 submitted to the UN Global Compact Office. DSM’s Code of Business Conduct, its sustainability and Safety, Health and Environment (SHE) policies, and its Supplier Sustainability Program are the foundations on which DSM applies the standards of the Global Compact.

Following on from the United Nations’ Millennium Development Goals introduced in 2000, 17 Sustainable Development Goals (SDGs) were presented in New York late September 2015 during the Sustainable Development Summit to define global priorities and aspirations for 2030. DSM is assessing how it can best measure and manage its contribution to the realization of the SDGs and expects to report more extensively about commitment and progress in 2016.

Table 1: Principles of the UN Global Compact

Principles of the UN Global Compact1
   
DSM Code of Business Conduct and relevant page(s) in the Integrated Annual Report 2015
Principle 1
Support of human rights
Principle 2
Exclusion of human rights violation
Principle 3
Observance of the right to freedom of association
Principle 4
Abolition of all forms of forced labor
Principle 5
Abolition of child labor
Principle 6
Elimination of discrimination
Principle 7
Precautionary environmental protection
Principle 8
Specific commitment to environmental protection
Principle 9
Diffusion of environmentally friendly technologies
Principle 10
Measures to fight corruption
1 In 2015, DSM once again renewed its commitment to the UN Global Compact's CEO Water Mandate; see Planet in 2015 on Water security
Global Reporting Initiative

DSM bases its sustainability reporting on best practice standards and international guidelines. Most important are the guidelines of the Global Reporting Initiative (GRI). For this Report, the company used the GRI G4 guidelines. DSM is constantly (re-)assessing to what extent sustainability aspects become material to DSM and its stakeholders. In case specific indicators become relevant to the company’s sustainability performance, appropriate actions are taken that allow the necessary data to be collected to disclose progress in the future.A detailed overview of how DSM reports according to the G4 comprehensive indicators, including a reference to relevant sections in this Report, is provided on the company's website.

International Integrated Reporting Framework

DSM aligns with the recommendations of the International Integrated Reporting Council (IIRC) Framework where possible. The intention of the IIRC Framework is to provide additional guiding principles and content elements for an integrated report. Aligning with the framework allows DSM to better identify how it creates value for DSM’s stakeholders in People, Planet, and Profit, as well as the connection between these three dimensions.

Selection of topics

The topics covered in this Report were selected on the basis of input from stakeholders and the materiality analysis, the GRI G4 guidelines and DSM’s own management systems and their relevance and impact for DSM and its various stakeholders. On the basis of the principle of materiality, DSM distinguishes between topics whose importance warrants publication in this Report (relevant to both DSM and its stakeholders), and topics whose importance warrants publication on the company website only (topics important to either DSM or its stakeholders). DSM reports on a selection of its external recognition in the chapters 'Stakeholder engagement' on External recognition and 'Review of business' from Review of business in 2015.

Scope

The People, Planet and ECO+ data in this Report cover all entities that belong to the scope of the consolidated financial statements, provided that DSM also has operational control. Planet reporting covers all operational sites of DSM.

Acquisitions and divestments

The HR data (People) for newly acquired companies are reported from the first full month after the acquisition date. The Safety, Health (People), Environment (Planet) and ECO+ data for newly acquired companies are reported at the latest in the year following the first full year after acquisition, because these companies’ reporting procedures first have to be aligned with those of DSM. In the case of divestments, safety data are consolidated until the moment of divestment and planet data are reported to the last full year at DSM. In this respect, for 2015, the safety data relating to DSM Fibre Intermediates and DSM Composite Resins have been included up until the moment of deconsolidation, while the Planet data of these units are no longer included in 2015.

Planet methodology

The progress on the key environmental performance indicators is evaluated and established on a yearly basis. Data on these indicators are collected on a bi-annual basis. The data for the DSM sites are based on these sites’ own measurements and calculations, which are based on definitions, methods and procedures established at corporate level. The site managers of reporting units are responsible for the quality of the data. Data are collected based on measurements and calculations in the production processes, information from external parties (e.g. on waste and external energy) and estimates based on expert knowledge.

Reporting units have direct insight into their performance compared to previous years and are required to provide justifications for deviations above the threshold. For most parameters the threshold is set at 10%. The year-on-year comparability of the data can be affected by changes in the portfolio as well as by improvements made in the measurement and recording systems at the various sites. Whenever impact is relevant, it is stated in the Report. Details for the individual sites as well as the methodology and calculations are published on the company's website, together with an explanation of the definitions used.

People methodology

People and HR data are collected per business group and consolidated at corporate level.

ECO+

All financial ECO+ data are collected from the relevant financial and innovation systems by the controllers and Sustainability Directors of the business groups and the Innovation Center. All assessments of ECO+ involve internal Life Cycle Assessment experts. The data are internally validated with the Corporate Sustainability department and consolidated in DSM ECO+ key performance indicators. In addition, the Corporate Operational Audit department is involved with evaluating the robustness of the ECO+ assessments and reporting process.