DSM Integrated Annual Report 2022

ESG Ratings and Benchmarks

Sustainability is at the heart of our business. It is our core value: we see it as a key responsibility and an important business driver. This is reflected by our inclusion in several Environmental, Social, Governance (ESG) Benchmarks and Ratings, many of which rate us a (sector) leader.

Given the large number of prevailing ESG benchmarks, participating in each and every one of them is not feasible for any company, so we annually review and prioritize our participation. We are in favor of further consolidation and standardization of the ESG benchmarks, as we believe this will encourage more companies to participate than is currently the case.

Our annual review of the ESG benchmarks in which to participate is based on the following criteria:

  • Recognition and use by our stakeholders, including our investors
  • Transparency of methodology
  • Primary reliance on publicly accessible information
  • Avoidance of additional administrative work
  • Provision of sufficient feedback to participating companies to enable them to make meaningful year-on-year improvements

Our priorities in 2022, and the outcomes, are listed below:

  • For our climate strategy, and water governance and strategy in 2022, we were assessed as double A by CDP
  • We hold a Platinum CSR Rating from EcoVadis. The Platinum rating places us in the top 1% of companies assessed in our industry
  • We continued to be a constituent of the FTSE4Good Index. We have been listed on this index since 2004
  • We maintained a low-risk rating from ISS QualityScore throughout the year, including lowest risk (1 out of 10) in Governance. ISS ESG reconfirmed DSM as ‘Prime’ according to its rating methodology. Our rating of B- puts us in the top decile relative to our industry group
  • MSCI’s rating of DSM was unchanged at ‘AAA’. The report highlighted our strong strategy to address carbon emissions. It also noted our focus on energy-efficient operations and our leadership in governance practices
  • We were assessed by Sustainalytics as being at low risk of experiencing material financial impacts from ESG factors, ranking in the 4th percentile in our industry
  • We were again listed in the Vigeo Eiris Benelux, Europe, Eurozone and World indices. Vigeo Eiris is now part of Moody’s ESG Solution