DSM Integrated Annual Report 2022

How we create value for our stakeholders

Our Value Creation model illustrates our long-term value creation and is based on the Value Creation and Capitals concepts of the Integrated Reporting (IR) framework and gives an overview of how we create value for our stakeholders based on six capital inputs: Human capital, Societal & relationship capital, Natural capital, Financial capital, Intellectual capital and Manufactured capital. We cluster these six capitals into People, Planet and Profit.

We transform our capital inputs into value and positive impact through taking advantage of the opportunities and minimizing the risks around the relevant megatrends in our business. A key part of our strategy, aside from our financial targets, is to continuously strengthen our commitment to sustainability. Through our business model, business strategy and purpose, we aim to have a positive impact for People, Planet and Profit, and deliver our share toward the Sustainable Development Goals (SDGs).

More information on our Value Creation model and the definitions of the six capitals, are provided in Explanation of some concepts and ratios.

Capital Inputs1


Our employees represent more than 110 nationalities in 55 countries. We engage with our stakeholders and partners to achieve our Purpose.




Gender ratio (f:m)

  • Employees
  • Training & development
  • Stakeholder engagement & Public-private partnerships
  • Philanthropy & sponsorship


We consume raw materials (including renewable and recyclable materials), energy from renewable and non-renewable sources and water.


Primary energy use (PJ)


Water withdrawal (non-once-through cooling, x million m3)

  • Raw materials (including bio-based and recycled-based materials)
  • Energy (including renewable sources)
  • Water


We employ shareholder equity and borrowings to invest in partnerships and innovation. We purchase goods and services that are used in our manufacturing assets.


Shareholders’ equity (million)


Borrowings (million)

  • Shareholders’ equity
  • Borrowings
  • Partnerships
  • Scientific environment and academic infrastructure
  • Purchased goods & services
  • Manufacturing footprint

Our business model

We are a purpose-led, performance-driven organization developing innovative solutions to address the urgent societal and environmental challenges linked to the way the world produces and consumes food. Our Business Groups are the main building-blocks of the company’s organization. They have integral long-term and short-term responsibility for business and have at their disposal all functions that are crucial to their business success. Our Business Groups receive enabling services from various global support and corporate functions and are supported by the regional organizations. Our Brighter Living Solutions Plus – solutions that create sustainable value for our stakeholders – account for 67% of our net sales.

Percentage of net sales by end-use market (continuing operations)

Value Outcomes2


The safety of our employees is our highest priority. Our investments in training and career development provide value for employees and stakeholders. We aspire to pay a living wage to all our employees. Our products support improved nutrition and a more sustainable food system.


Frequency Index recordables


Employee engagement (excluding Engineering Materials)

  • Safety & health
  • Brighter Living Solutions Plus
  • Engaged workforce
  • Skills & employability
  • Employee benefits
  • Improved nutrition


We work to reduce our environmental footprint and support the reduction of the footprints of our value chain partners. Our products enable the transition to a more circular economy and contain safer ingredients and materials than alternative products.


Scope 1 + 2 + 3 emissions (million tons CO2eq)


Purchased renewable electricity

  • Reduced environmental footprint
  • Brighter Living Solutions Plus
  • Enabling the transition to a more circular economy
  • Safer ingredients & materials


We aim to deliver a strong financial performance, enabling us to re-invest in our asset base, fund our purpose-driven innovations, pay stable (preferably rising) dividends and provide good returns to our bondholders. Our tax policy follows both the letter and spirit of the law.


Adjusted EBITDA from continuing operations (million)


Adjusted net operating free cash flow from continuing operations (million)

  • Financial performance (Adjusted EBITDA and Adjusted net operating free cash flow
  • Interest payments, capital gains/losses and return on investment
  • Total Shareholder Return, including dividend
  • Contribution to civil society via wages, taxes and social security including pensions
  • Contribution to business success for customers and suppliers

Impact and SDGs


  • Better fed and healthier individuals and communities
  • More prosperous and resilient employees for our company and in our value chain


  • More sustainable use of resources, for our company and in our value chain
  • Products that contribute to safer, healthier working and living environments


  • We are purpose-led, performance-driven through science-based sustainable solutions
  • Sustainable returns to investors
  • Positive contributions to economic growth in the countries and markets in which we operate
Financial capital (Profit)
Providers of capital – shareholders and bondholders, banks and the financial markets – supply funds that we use in our business to create value, driving growth and delivering sustainable returns.
Human capital (People)
We employ skilled and talented people from diverse backgrounds. We strive to provide employees with a safe and inspiring workplace as well as with the tools and training they need to be effective and to develop their abilities. We reward employees with competitive benefit packages.
Integrated Reporting Integrated Reporting Framework – Value Creation model
The Value Creation diagram is based on the International Integrated Reporting Council's Integrated Reporting <IR> framework and gives an overview of how we create value for our stakeholders based on six capital inputs.
Intellectual capital (Profit)
We manufacture and distribute high-quality products and services safely, efficiently and responsibly, and strive to develop valuable, collaborative and long-term relationships with customers and suppliers. We pursue open innovation, connecting and collaborating with partners and investing in start-ups.
Manufactured capital (Profit)
We have unique competences in Health, Nutrition & Bioscience and connect these to deliver innovative solutions that nourish, protect and improve performance.
Natural capital (Planet)
We recognize that the world is an interconnected system of resources. This represents a responsibility and a business opportunity. We aim to improve the environmental impact of our supply chain, operations and products and services, while developing innovative solutions that deliver sustainability benefits to customers and beyond.
Societal & relationship capital (People)
We engage with various stakeholders to ensure close alignment between our aims and societal needs. We generate value for stakeholders outside our direct value chains of employees, suppliers, customers and end-users; these include employees’ families, governments, local communities and civil society.