DSM Annual Report 2018

General Disclosures

GRI 102: General Disclosures 2016	102-1	Name of the organization	Home page Integrated Annual Report
	102-2	Activities, brands, products, and services	DSM at a glance Markets and products
	102-3	Location of headquarters	DSM Location finder Address on back page Integrated Annual Report
	102-4	Location of operations	DSM at a glance DSM Location finder
	102-5	Ownership and legal form	Corporate Governance Risk management
	102-6	Markets served	DSM at a glance Review of business
	102-7	Scale of the organization	DSM at a glance Key Data
	102-8	Information on employees and other workers	Sustainability Statements
	102-9	Supply chain	Sustainability Statements - Suppliers
	102-10	Significant changes to the organization and its supply chain	Review of business
	102-11	Precautionary Principle or approach	Corporate governance and risk management Risk management
	102-12	External initiatives	Collaborative platforms & networks People Reporting policy
	102-13	Membership of associations	Collaborative platforms & networks
	102-14	Statement from senior decision-maker	Letter from the CEO
	102-15	Key impacts, risks, and opportunities	Letter from the CEO How DSM creates value for its stakeholders Materiality Risk management
	102-16	Values, principles, standards, and norms of behavior	DSM Code of Business Conduct
	102-17	Mechanisms for advice and concerns about ethics	DSM Code of Business Conduct
	102-18	Governance structure	Corporate governance and risk management Report by the Supervisory Board
	102-19	Delegating authority	Corporate governance and risk management Report by the Supervisory Board Sustainability Governance Framework
	102-20	Executive-level responsibility for economic, environmental, and social topics	Corporate governance and risk management Report by the Supervisory Board Sustainability Governance Framework
	102-21	Consulting stakeholders on economic, environmental, and social topics	Stakeholders Collaborative platforms & networks People - Careers & employment
	102-22	Composition of the highest governance body and its committees	Report by the Supervisory Board Supervisory Board and Managing Board Royal DSM
	102-23	Chair of the highest governance body	Supervisory Board and Managing Board Royal DSM
	102-24	Nominating and selecting the highest governance body	Report by the Supervisory Board Supervisory Board and Managing Board Royal DSM
	102-25	Conflicts of interest	Report by the Supervisory Board Supervisory Board and Managing Board Royal DSM
	102-26	Role of highest governance body in setting purpose, values, and strategy	Report by the Supervisory Board Supervisory Board and Managing Board Royal DSM
	102-27	Collective knowledge of highest governance body	Corporate governance and risk management Report by the Supervisory Board
	102-28	Evaluating the highest governance body’s performance	Corporate governance and risk management Report by the Supervisory Board
	102-29	Identifying and managing economic, environmental, and social impacts	Corporate governance and risk management Report by the Supervisory Board
	102-30	Effectiveness of risk management processes	Corporate governance and risk management Report by the Supervisory Board Sustainability Governance Framework
	102-31	Review of economic, environmental, and social topics	Report by the Supervisory Board
	102-32	Highest governance body’s role in sustainability reporting	Report by the Supervisory Board
	102-33	Communicating critical concerns	DSM Code of Business Conduct
	102-34	Nature and total number of critical concerns	DSM Code of Business Conduct
	102-35	Remuneration policies	Remuneration policy for the Managing Board
	102-36	Process for determining remuneration	Remuneration policy for the Managing Board
	102-37	Stakeholders’ involvement in remuneration	Corporate governance and risk management General Meeting of Shareholders
	102-38	Annual total compensation ratio	DSM publishes a pay ratio for the CEO and Managing Board only. Note 13 to the Parent comancy - Remuneration of Managing Board and Supervisory Board
	102-39	Percentage increase in annual total compensation ratio	DSM publishes a pay ratio for the CEO and Managing Board only. Note 13 to the Parent comancy - Remuneration of Managing Board and Supervisory Board
	102-40	List of stakeholder groups	Stakeholders
	102-41	Collective bargaining agreements	DSM does not report this on a corporate level. In countries or businesses where employees have third-party representation via a works council or collective bargaining, DSM respects these relationships and works with these third parties in a mutually respectful manner.
	102-42	Identifying and selecting stakeholders	Stakeholders
	102-43	Approach to stakeholder engagement	Stakeholders
	102-44	Key topics and concerns raised	Materiality People Planet
	102-45	Entities included in the consolidated financial statements	DSM at a glance Review of business
	102-46	Defining report content and topic Boundaries	Reporting policy Materiality
	102-47	List of material topics	Materiality People Planet Sustainability statements
	102-48	Restatements of information	Reporting policy Specific restatements will be specified in People and Planet as appropriate
	102-49	Changes in reporting	Materiality Reporting policy
	102-50	Reporting period	Reporting policy
	102-51	Date of most recent report	Reporting policy
	102-52	Reporting cycle	Reporting policy
	102-53	Contact point for questions regarding the report	Back page of printed version DSM Integrated Annual Report Contact Us
	102-54	Claims of reporting in accordance with the GRI Standards	DSM Global Reporting Initiative (GRI) Standards table Reporting policy
	102-55	GRI content index	DSM Global Reporting Initiative (GRI) Standards table
	102-56	External assurance	Report of the Audit Committee Annual General Meeting of Shareholders 2018 Independent Auditor’s report of the Financial Statements Assurance report of the independent auditor

Health & wellness

GRI 103: Management Approach 2016	103-1	Explanation of the material topic and its Boundary	Materiality People Review of Business Nutrition
	103-2	The management approach and its components	Materiality People Review of Business Nutrition
	103-3	Evaluation of the management approach	Materiality People Review of Business Nutrition
GRI 403: Occupational Health and Safety 2018	403-1	Occupational health and safety management system	DSM implements a SHE-management system to manage risks related to Safety, Health and Environment. See: Description of risks on dsm.com People - Safety, Health & Wellness Risk management
	403-2	Hazard identification, risk assessment, and incident investigation	DSM does not publicly report on internal processes and does not consider it material to do so. See also: What still went wrong DSM Alert on dsm.com
	403-3	Occupational health services	DSM manages occupational health services at local level. Examples of more general services are given in People - Safety, Health & Wellness
	403-4	Worker participation, consultation, and communication on occupational health and safety	DSM does not publicly report on internal processes and does not consider it material to do so.
	403-5	Worker training on occupational health and safety	People - Safety, Health & Wellness Training on occupational health and safety is part of DSM's value training program. DSM Code of Business Conduct
	403-6	Promotion of worker health	DSM manages worker health services at local level. Examples of more general services are given in People - Safety, Health & Wellness
	403-7	Prevention and mitigation of occupational health and safety impacts directly linked by business relationships	People - Safety, Health & Wellness Planet - Product stewardship Product stewardship on dsm.com
	403-8	Workers covered by an occupational health and safety management system	All DSM employees and contractors are covered by the DSM Code of Business Conduct and DSM's Safety, Health and Environmental (SHE) policy. DSM's health and safety management system is internally audited by COA as part of its audit program.
	403-9	Work-related injuries	People - Safety, Health & Wellness What still went wrong
	403-10	Work-related ill health	People - Safety, Health & Wellness What still went wrong

Malnutrition & nutrition security

GRI 103: Management Approach 2016	103-1	Explanation of the material topic and its Boundary	Materiality Collaborative platforms & networks People Review of Business Nutrition
	103-2	The management approach and its components	Materiality Collaborative platforms & networks People Review of Business Nutrition
	103-3	Evaluation of the management approach	Materiality Collaborative platforms & networks People Review of Business Nutrition
GRI 203: Indirect Economic Impacts 2016	203-1	Infrastructure investments and services supported	Collaborative platforms & networks
	203-2	Significant indirect economic impacts	Collaborative platforms & networks

Global footprint

GRI 103: Management Approach 2016	103-1	Explanation of the material topic and its Boundary	Materiality Sustainability Statements - Suppliers Profit
	103-2	The management approach and its components	Materiality Sustainability Statements - Suppliers Profit
	103-3	Evaluation of the management approach	Materiality Sustainability Statements - Suppliers Profit
GRI 201: Economic Performance 2016	201-1	Direct economic value generated and distributed	Profit Note 4 segment information
GRI 202: Market Presence 2016	202-2	Proportion of senior management hired from the local community	Sustainability Statements People

Geopolitical tensions & inequalities

GRI 103: Management Approach 2016

103-1

Explanation of the material topic and its Boundary

Materiality

Risk management

103-2

The management approach and its components

Materiality

Risk management

103-3

Evaluation of the management approach

Materiality

Risk management

Climate change & renewable energy

GRI 103: Management Approach 2016	103-1	Explanation of the material topic and its Boundary	Materiality Planet Review of business
	103-2	The management approach and its components	Materiality Planet Review of business
	103-3	Evaluation of the management approach	Materiality Planet Review of business
GRI 201: Economic Performance 2016	201-2	Financial implications and other risks and opportunities due to climate change	Planet Sustainability Statements - Taskforce for Climate-related Financial Disclosures
GRI 302: Energy 2016	302-1	Energy consumption within the organization	Planet - Climate change & renewable energy
	302-2	Energy consumption outside of the organization	Planet - Climate change & renewable energy
	302-3	Energy intensity	Planet - Climate change & renewable energy
	302-4	Reduction of energy consumption	Planet - Climate change & renewable energy
	302-5	Reductions in energy requirements of products and services	DSM considers this indicator to be not material to the management of our material topics.
GRI 305: Emissions 2016	305-1	Direct (Scope 1) GHG emissions	Planet - Climate change & renewable energy
	305-2	Energy indirect (Scope 2) GHG emissions	Planet - Climate change & renewable energy
	305-3	Other indirect (Scope 3) GHG emissions	Planet - Climate change & renewable energy
	305-4	GHG emissions intensity	Planet - Climate change & renewable energy
	305-5	Reduction of GHG emissions	Planet - Climate change & renewable energy
	305-6	Emissions of ozone-depleting substances (ODS)	DSM considers this indicator to be not material to the management of our material topics.
	305-7	Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions	Planet - Climate change & renewable energy

Resource scarcity / circular economy

GRI 103: Management Approach 2016	103-1	Explanation of the material topic and its Boundary	Materiality Planet Review of Business Materials Review of Business Innovation Center
	103-2	The management approach and its components	Materiality Planet Review of Business Materials Review of Business Innovation Center
	103-3	Evaluation of the management approach	Materiality Planet Review of Business Materials Review of Business Innovation Center
GRI 301: Materials 2016	301-1	Materials used by weight or volume	Planet DSM reports only on % renewables by value.
	301-2	Recycled input materials used	This data is currently not available. DSM will investigate the materiality and measurability of this topic. Currently this topic has not been resolved yet. For information on how DSM works with waste streams, see Recover waste streams on dsm.com
	301-3	Reclaimed products and their packaging materials	This data is not available and currently not assessed as material for DSM. In general, the company’s businesses do not produce consumer end products and are not in a position to trace the reclamation of the final end products.
GRI 306: Effluents and Waste 2016	306-1	Water discharge by quality and destination	DSM considers this indicator to be not material to the management of our material topics.
	306-2	Waste by type and disposal method	Environmental footprint on DSM.com
	306-3	Significant spills	DSM has not recorded any significant spills - see What still went wrong
	306-4	Transport of hazardous waste	DSM does not import hazardous waste or use hazardous waste in its processes. Detailed information on the amount of hazardous waste produced at all DSM locations can be found on this website. All hazardous waste produced by DSM is transported to external sources for disposal.
	306-5	Water bodies affected by water discharges and/or runoff	DSM considers this indicator to be not material to the management of our material topics.

Water security

GRI 103: Management Approach 2016	103-1	Explanation of the material topic and its Boundary	Materiality Planet Water security
	103-2	The management approach and its components	Materiality Planet Water security
	103-3	Evaluation of the management approach	Materiality Planet Water security
GRI 303: Water and Effluents 2018	303-1	Interactions with water as a shared resource	Planet Water security DSM further discloses on its water management and strategy via CDP
	303-2	Management of water discharge-related impacts	Planet Water security DSM further discloses on its water management and strategy via CDP
	303-3	Water withdrawal	Planet Water security DSM further discloses on its water management and strategy via CDP
	303-4	Water discharge	Planet Water security DSM further discloses on its water management and strategy via CDP
	303-5	Water consumption	Planet Water security DSM further discloses on its water management and strategy via CDP

Sustainable food systems

GRI 103: Management Approach 2016

103-1

Explanation of the material topic and its Boundary

Materiality

Review of Business Nutrition

103-2

The management approach and its components

Materiality

Review of Business Nutrition

103-3

Evaluation of the management approach

Materiality

Review of Business Nutrition

Biodiversity

GRI 103: Management Approach 2016	103-1	Explanation of the material topic and its Boundary	Materiality Planet
	103-2	The management approach and its components	Materiality Planet
	103-3	Evaluation of the management approach	Materiality Planet
GRI 304: Biodiversity 2016	304-1	Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas	Planet - Biodiversity. DSM manages this topic at a local level and does not report details centrally.
	304-2	Significant impacts of activities, products, and services on biodiversity	The percentage of DSM sites that have been identified as being located in or adjacent to high biodiversity value areas can be found in Planet – Biodiversity. Monitoring impact on these sites is managed at site level and is not reported at a corporate level.
	304-3	Habitats protected or restored	The percentage of DSM sites that have been identified as being located in or adjacent to high biodiversity value areas can be found in Planet – Biodiversity. Monitoring impact on these sites is managed at site level and is not reported at a corporate level. This data is not available for all DSM sites.
	304-4	IUCN Red List species and national conservation list species with habitats in areas affected by operations	The percentage of DSM sites that have been identified as being located in or adjacent to high biodiversity value areas can be found in Planet – Biodiversity. Monitoring impact on these sites is managed at site level and is not reported at a corporate level. This data is not available for all DSM sites.

Careers & employment

GRI 103: Management Approach 2016	103-1	Explanation of the material topic and its Boundary	Materiality Sustainability Statements - Suppliers People
	103-2	The management approach and its components	Materiality Sustainability Statements - Suppliers People
	103-3	Evaluation of the management approach	Materiality Sustainability Statements - Suppliers People
GRI 202: Market Presence 2016	202-1	Ratios of standard entry level wage by gender compared to local minimum wage	DSM does not consider this indicator relevant in order to assess compensation structures according to fairness. DSM makes an impact on local communities by the salaries it pays its employees which are in line with industry norms.
	202-2	Proportion of senior management hired from the local community	Sustainability Statements - People People - Careers & employment
GRI 401: Employment 2016	401-1	New employee hires and employee turnover	Sustainability Statements - People DSM does not report on this indicator by gender or age group.
	401-2	Benefits provided to full-time employees that are not provided to temporary or part-time employees	Benefits are managed at a local level. DSM does not compile this information on a corporate level as it does not consider this indicator at corporate level applicable for managing this topic. Benefits provided to employees are fully compliant with all applicable national laws
	401-3	Parental leave	Actual rates are managed and monitored at local level. DSM does not consider this rate at a corporate level to be relevant to steer on this material topic.
GRI 402: Labor/Management Relations 2016	402-1	Minimum notice periods regarding operational changes	DSM complies with local legislation and requirements.
GRI 404: Training and Education 2016	404-1	Average hours of training per year per employee	People - Careers & employment DSM does not report this KPI by gender or employee category. DSM does not steer organisational training by gender or employee category so considers these breakdowns not applicable.
	404-2	Programs for upgrading employee skills and transition assistance programs	People - Careers & employment
	404-3	Percentage of employees receiving regular performance and career development reviews	People - Careers & employment
GRI 405: Diversity and Equal Opportunity 2016	405-1	Diversity of governance bodies and employees	Sustainability Statements - People
	405-2	Ratio of basic salary and remuneration of women to men	DSM manages and monitors equal and fair treatment and wages and payment at local level. DSM has developed a reporting process for equal pay and will begin reporting on this in 2019. People - Responsible business practices

Open innovation

GRI 103: Management Approach 2016

103-1

Explanation of the material topic and its Boundary

Materiality

Review of Business Innovation Center

103-2

The management approach and its components

Materiality

Review of Business Innovation Center

103-3

Evaluation of the management approach

Materiality

Review of Business Innovation Center

Advocacy & stakeholder engagement

GRI 103: Management Approach 2016	103-1	Explanation of the material topic and its Boundary	Materiality Stakeholders Sustainability Statements - Stakeholder Engagement DSM Code of Business Conduct Risk management
	103-2	The management approach and its components	Materiality Stakeholders Sustainability Statements - Stakeholder Engagement DSM Code of Business Conduct Risk management
	103-3	Evaluation of the management approach	Materiality Stakeholders Sustainability Statements - Stakeholder Engagement DSM Code of Business Conduct Risk management
GRI 415: Public Policy 2016	415-1	Political contributions	DSM does not make political donations Sustainability Statements - Philanthropy and Sponsorship
GRI 417: Marketing and Labelling 2016	417-3	Incidents of non-compliance concerning marketing communications	DSM has had no incidents of non-compliance
		See also the General Disclosures	GRI 102: General Disclosures 2016 102-40 102-41 102-42 102-43 102-44

Trade barriers

GRI 103: Management Approach 2016

103-1

Explanation of the material topic and its Boundary

Materiality

DSM Code of Business Conduct

103-2

The management approach and its components

Materiality

DSM Code of Business Conduct

103-3

Evaluation of the management approach

Materiality

DSM Code of Business Conduct

Digital transformation

GRI 103: Management Approach 2016

103-1

Explanation of the material topic and its Boundary

Materiality

Strategy 2018

DSM Code of Business Conduct

103-2

The management approach and its components

Materiality

Strategy 2018

DSM Code of Business Conduct

103-3

Evaluation of the management approach

Materiality

Strategy 2018

DSM Code of Business Conduct

Responsible business practices

GRI 103: Management Approach 2016	103-1	Explanation of the material topic and its Boundary	Materiality Sustainability Statements - Suppliers People - Responsible business practices DSM Code of Business Conduct Financial and Reporting policy
	103-2	The management approach and its components	Materiality Sustainability Statements - Suppliers People - Responsible business practices DSM Code of Business Conduct Financial and Reporting policy
	103-3	Evaluation of the management approach	Materiality Sustainability Statements - Suppliers People - Responsible business practices DSM Code of Business Conduct Financial and Reporting policy
GRI 201: Economic Performance 2016	201-3	Defined benefit plan obligations and other retirement plans	Note 24 - Post-employment benefits
	201-4	Financial assistance received from government	DSM considers this indicator to be not material to the management of our material topics.
GRI 205: Anti-corruption 2016	205-1	Operations assessed for risks related to corruption	DSM Code of Business Conduct Risk management
	205-2	Communication and training about anti-corruption policies and procedures	DSM Code of Business Conduct
	205-3	Confirmed incidents of corruption and actions taken	DSM Code of Business Conduct
GRI 206: Anti-competitive Behavior 2016	206-1	Legal actions for anti-competitive behavior, anti-trust, and monopoly practices	Code of Business Conduct - Consequence management
GRI 307: Environmental Compliance 2016	307-1	Non-compliance with environmental laws and regulations	Sustainability Statements - Planet
GRI 308: Supplier Environmental Assessment 2016	308-1	New suppliers that were screened using environmental criteria	Sustainability Statements - Suppliers
	308-2	Negative environmental impacts in the supply chain and actions taken	Sustainability Statements - Suppliers
GRI 412: Human Rights Assessment 2016	412-1	Operations that have been subject to human rights reviews or impact assessments	People - Responsible business practices
	412-2	Employee training on human rights policies or procedures	DSM Code of Business Conduct
	412-3	Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening	Sustainability Statements - Suppliers Supplier Code of Conduct
GRI 414: Supplier Social Assessment 2016	414-1	New suppliers that were screened using social criteria	Sustainability Statements - Suppliers People - Responsible business practices
	414-2	Negative social impacts in the supply chain and actions taken	Sustainability Statements - Suppliers People - Responsible business practices
GRI 419: Socioeconomic Compliance 2016	419-1	Non-compliance with laws and regulations in the social and economic area	Sustainability Statements - Suppliers
GRI 418: Customer Privacy 2016	418-1	Substantiated complaints concerning breaches of customer privacy and losses of customer data	DSM has no recorded incidents of Customer Privacy breaches

Product & food safety

GRI 103: Management Approach 2016	103-1	Explanation of the material topic and its Boundary	Materiality Planet - Product stewardship
	103-2	The management approach and its components	Materiality Planet - Product stewardship
	103-3	Evaluation of the management approach	Materiality Planet - Product stewardship
GRI 416: Customer Health and Safety 2016	416-1	Assessment of the health and safety impacts of product and service categories	Key Data Explanation of some concepts and ratios - Brighter Living Solutions
	416-2	Incidents of non-compliance concerning the health and safety impacts of products and services	Such incidents are managed on site/Group level. DSM does not currently collect this data on a corporate level.
GRI 417: Marketing and Labeling 2016	417-1	Requirements for product and service information and labeling	Planet - Product stewardship
	417-2	Incidents of non-compliance concerning product and service information and labeling	Such incidents are managed on site/Group level. DSM does not currently collect this data on a corporate level.