Climate change mitigation

In 2015, the Paris Agreement first established a common ambition to take urgent action on GHG emissions to limit average temperature increases to well below 2°C. Later in 2018, the Intergovernmental Panel on Climate Change (IPCC) provided a clear and compelling case to redouble efforts to limit warming to 1.5°C. Our fair share of this ambition requires our emissions to reach net-zero by 2050 at the latest with a rapid acceleration of the rate of our emission reductions over the coming decade. These are specified in our net-zero commitment and Science Based Targets (SBT).

Aligning our climate approach with science

Meeting our long-term ambition to reach net-zero GHG emissions aligned with climate science will require us to structurally reduce emissions across our operations and value chains by at least 90% in absolute terms by 2050, if not sooner. To neutralize any residual emissions, we will also eventually deploy permanent carbon removals. These removals will need to meet the highest quality criteria and social and environmental safeguards. Our Science Based Targets are the intermediate step to achieve this goal, supported by our ambitions regarding renewable electricity and energy efficiency, and by working intensively with our key suppliers through our CO2REDUCE program. This requires transforming our operations and value chains.

We are working with long-term innovation roadmaps that will bring us as close to zero emissions as possible in the coming decades. This includes investments in a portfolio of solutions that can help our customers to do the same while reducing our emissions through process, solutions and materials developments. Net-zero roadmaps are developed simultaneously for key products, as well as deployment plans for key technologies that can be applied in process redesign for multiple products. At the same time, we are exploring highest impact instruments for additional contributions to accelerate global net-zero transition beyond our own value chain such as high-quality carbon credits or increasing the avoided emissions for our customers. These contributions are not claimed against our own emissions. Our net-zero activities are guided by the SBTi NetZero Standard and Business Ambition for 1.5°C commitment framework.

“We regularly evaluate how we can go further and faster on our route to net-zero. In 2022, we again updated our scope 1 + 2 GHG reduction targets, and I’m proud that the Science Based Targets initiative has validated DSM’s ambition level of a 59% reduction by 2030 as 1.5°C aligned.”
Dimitri de Vreeze

Business measures supporting our climate approach

In support of our ambition to substantially reduce our carbon footprint, we have introduced key measures which we apply to all growth projects. Since 2019, business growth projects must either be GHG-neutral or else be compensated for within the same site/business. In addition, to encourage investments in low-carbon and carbon-free technologies, we use an internal carbon price (ICP) of €100/t CO₂eq in the valuations of key investment projects. This increases the visibility of, and encourages accountability for, the impact of carbon emissions on the business.

Ownership of climate actions is at Executive Committee level

The DSM climate agenda and transition plan brings together our key climate actions addressing the three pillars of improve, enable and advocate. The progress of the agenda, including the implementation of the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations, the GHG reduction program, our portfolio developments and efforts to advocate accelerated transition with partners, are managed and actively reviewed by the Executive Committee several times a year under various workstreams. Our climate change strategy received an A rating from CDP in 2022.