1 Management approach for material topics
In the following sections, we elaborate on the material topics defined in the Materiality matrix and describe how we manage these topics.
Specific mechanisms and policies for our most important material topics are referenced below, while for less material topics, we apply general mechanisms to identify and remediate potential negative impacts (for example, our DSM Alert policy). Positive and negative impacts are monitored through our Risk Management process, while product-specific positive and negative impacts are measured through our Brighter Living Solutions Plus methodology.
Environment
Climate change mitigation
This topic addresses the reduction of energy use and greenhouse gas emissions in our own operations, increasing the share of energy coming from renewable sources and developing solutions to support our customers in reducing carbon footprint across their value chains to enable the transition to a low carbon economy.
Management approach: We manage this topic by improving our own carbon footprint, enabling our customers through innovative solutions and advocating actions toward a low-carbon future. We publicly disclose our impact and strategy via this Report, CDP and other channels. Through our Food System Commitments, we commit to enable on-farm livestock emissions reductions.
For information on this topic, see:
- Our approach to the Sustainable Development Goals
- Strategy
- Collaborative platforms and networks
- Climate change mitigation
- Review of business
- SHE Policy (company website)
Climate adaptation
This topic addresses preparing for the physical and transition risks and opportunities associated with changing climate by ensuring operational procedures are flexible and resilient, and developing solutions to support our customers in their strategy for climate adaptation.
Management approach: We manage this topic through identifying our exposure to climate risks through our physical and transition risk assessments. The outcome of these assessments is reviewed and validated with our businesses, sites and other relevant functions. We publicly disclose our impact and strategy via this Report, CDP and other channels.
For information on this topic, see:
- Our approach to the Sustainable Development Goals
- Strategy
- Collaborative platforms and networks
- Climate adaptation
- Review of business
- SHE Policy (company website)
Nature & biodiversity
Nature & biodiversity refers to the protection of natural capital and ecosystems, including the variety and variability of life on earth and addressing issues such as biosecurity, land degradation, nature loss and ocean pollution.
Management approach: Nature & biodiversity is a global issue that is locally relevant, and that potentially has impact on our operational locations. The DSM Responsible Care Plan defines how we monitor and assess the impact of our operations on these locations. We support the ambitions of the Convention on Biological Diversity and we continue to explore the role the Natural Capital Protocol can play in supporting our decision making. Through our Food System Commitments, we commit to reach people with nutritious, delicious, sustainably produced plant-based foods.
For information on this topic, see:
- Nature & biodiversity
- Biodiversity position paper (company website)
- SHE Policy (company website)
Raw materials & circularity
This topic covers securing our supply of raw materials and making use of raw materials in a circular manner (for instance using raw materials coming from regenerative agriculture) and supporting our value chain in their use of sustainable raw materials.
Management approach: We manage this topic through our Supplier Sustainability Program, by improving the value extracted from our raw materials, supporting the transition to a circular economy through our solutions and advocating a shift toward a circular economy.
For information on this topic, see:
- Our approach to the Sustainable Development Goals
- Strategy
- Collaborative platforms and networks
- Waste & circularity
- Review of business
- Suppliers
- SHE Policy (company website)
Water stewardship
Water is essential to life and all ecosystems. As water is becoming a scarcer resource, both the quality and quantity of available water constitute a global issue that has local consequences that may extend from water scarcity to floods and storms.
Management approach: We are committed to the sustainable use of water. Our approach is defined in the DSM Responsible Care Plan, with the ambition to improve our water withdrawal efficiency in water-stressed areas. Water is not a primary ingredient in our products, and we believe that water risks are local by nature, so we focus on local water risk assessments and thorough follow-up on these. We are a signatory to the UN Global Compact CEO Water Mandate and disclose our water management and strategy via CDP.
For information on this topic, see:
Pollution & waste management
This topic covers reducing air, land and marine pollution, minimizing waste, and using sustainable packaging in our operations and across our value chain partners.
Management approach: We manage this topic through our DSM Responsible Care Program. We measure and report on our waste and pollution, with the ambition to reduce our landfilled waste and our VOC emissions. We minimize hazardous landfill as part of our SHE requirements, aiming to recover this where possible. We work with our suppliers to improve the use of sustainable packaging.
For information on this topic, see:
- Our approach to the Sustainable Development Goals
- Waste & circularity
- Nature & biodiversity
- Suppliers
- SHE Policy (company website)
Social
Healthy & nutritious diets
This topic is part of the transition to sustainable food systems within planetary boundaries that is needed to secure the future availability of food. It addresses providing solutions that contribute to good nutrition and healthy diets for all. This includes enabling affordable nutrition and ensuring tasty and delicious food is available and low in ingredients that are linked to non-communicable diseases.
Management approach: We manage this topic by enabling healthy food systems through our businesses, which target sustainable food solutions. We advocate for a change in food systems within planetary boundaries. Through our Food System Commitments, we commit to supporting the immunity of people and reaching people with nutritious, delicious, sustainably produced plant-based foods.
For information on this topic, see:
- Our approach to the Sustainable Development Goals
- Strategy
- Collaborative platforms & networks
- Review of business
Food security
This topic is part of the transition to sustainable food systems within planetary boundaries that is needed to secure the future availability of food. It includes developing sustainable solutions that will contribute to enabling to feed and nurture the growing global population. This includes creating more resource-efficient food production, for instance by improving Food Conversion Ratio.
Management approach: We manage this topic by enabling healthy food systems through our businesses, which target health and well-being. We advocate for a change in food systems within planetary boundaries. Through our Food System Commitments, we commit to help close the micronutrient gap of vulnerable people.
For information on this topic, see:
- Our approach to the Sustainable Development Goals
- Strategy
- Collaborative platforms & networks
- Review of business
Human rights
This topic encompasses decent working conditions for DSM employees, suppliers and other partners across the value chain. It addresses subjects including freedom of association, non-discrimination, the prohibition of child labor and forced labor, and fair compensation. This is done by having a strong due diligence and risk assessment in place, and implementing mitigation and remediation measures where needed.
Management approach: DSM has installed a cross-functional Human Rights Steering Committee and working group to manage our approach toward human rights, which is defined in our position paper. Our whistleblower policy (DSM Alert) is available for employees and external stakeholders to report potential violations of human rights. We monitor and assess our supply chain through EcoVadis and IntegrityNext assessments.
For information on this topic, see:
- Human rights
- DSM Code of Business Conduct
- Suppliers
- Human Rights position paper
- Whistleblower policy – DSM Alert (company website)
Occupational health, safety & well-being
Occupational health, safety & well-being addresses the company’s ability to create and maintain a safe and healthy workplace environment that is free of injuries, fatalities, and illness (both chronic and acute), and to take care of our employees’ well-being at work.
Management approach: The occupational health, safety and well-being of all our employees and contractors is our highest priority. Our approach to safety is defined in the DSM Responsible Care Plan and is spearheaded by our Life Saving Rules. We apply an occupational health model whereby we strive to minimize exposure to potential health risks.
For information on this topic, see:
Talent attraction development & retention
This topic refers to the continuous development of employees’ skills through training and development programs, and the company’s ability to attract and retain talent in order to execute the business strategy. This includes having a strong employer branding, ensuring employees’ engagement, supporting people’s growth and promotion within the company.
Management approach: Talent attraction, development & retention fuels the growth of our employees and leaders, which in turn enables our overall growth as an organization. Through our People & Organization strategy, we aim to reset the context for leadership to create an inspiring, empowering and inclusive environment for our people and our business, and to empower our people with the tools and an environment that enables them to take ownership of their performance, development and careers.
For information on this topic, see:
Employee diversity & inclusion
This topic revolves around equal opportunities, in particular ensuring that our company culture and hiring and promotion practices embrace the building of an inclusive and diverse workforce that reflects the makeup of local talent pools and its customer base.
Management approach: We focus our activities on increasing the representation of women and the under-represented nationality diversity of our executive population and management pipeline. We have five diversity pillars – Gender, Race, Ethnicity & National Identity, LGBTQ+, Disability and Generations – which are supported by Employee Resource Groups. Our focus areas are in recruitment, development, and inclusion. Employee inclusion & diversity is addressed through our Inclusion & Diversity (I&D) network, led by our I&D Council. Our employees are trained on Respectful behavior to emphasize the importance of inclusiveness and diversity and to prevent inappropriate behavior including sexual harassment.
For information on this topic, see:
Food loss & waste
This topic is part of the transition to sustainable food systems within planetary boundaries that is needed to secure the future availability of food. It covers helping to prevent food loss and waste generated throughout food systems by creating better animal nutrition, more resource-efficient food production, innovative packaging, and antioxidants that keep food nutritious and safe.
Management approach: We manage this topic by enabling healthy food systems through our businesses, which prevent food loss and waste. We enable our customers to improve the efficiency of the production of animal-based proteins as well as produce products that keep food products fresher and safer for longer. We work with partners to ensure that nutritious food reaches people in need.
For information on this topic, see:
- Our approach to the Sustainable Development Goals
- Strategy
- Collaborative platforms & networks
- Review of business
Business & Governance
Product quality & safety
Product quality & safety ensures the highest product quality standards for our solutions, as well as controlling and minimizing all possible safety risks and adverse effects on human or animal health and on the environment, that could be caused by (the substances present in) our products throughout the value chain. It is about knowing the substances we use and produce, being able to explain why we use them, taking the appropriate risk control measures, and sharing this information with relevant and interested stakeholders.
Management approach: Quality has been accorded the same degree of scrutiny as safety, as we journey toward becoming a company focused on Health, Nutrition & Bioscience. We focus on three areas to ensure that quality is embedded across our organization – risk assessments, standards, and a learning organization. Product safety is addressed in our product stewardship statement. We take a risk-based approach to product stewardship and will use alternatives where feasible, and always where required. We also see the opportunities for safer products with fewer or no hazardous properties in the circular economy.
For information on this topic, see:
Business ethics & transparency
This topic addresses the company’s approach to and public disclosure on ethical and fair business conduct, corporate governance and compliance. This includes taxation, privacy, bioethics, fraud, bribery & corruption, and fiduciary responsibilities.
Management approach: We take our responsibilities as a business seriously. Our approach to ethics and transparency is led by the DSM Code of Business Conduct and our Supplier Code of Conduct. Our whistleblower policy (DSM Alert) supports our employees and third parties in expressing their concerns about suspected misbehavior. DSM’s tax position is consistent with the normal course of our business operations and reflects the corporate strategy as well as the geographic spread of our activities. It is available through our position paper. We transparently report on our business through this Report and our public statements.
For information on this topic, see:
- DSM Code of Business Conduct
- Corporate governance and risk management
- DSM Alert policy (company website)
- Taxation position paper (company website)
Sustainable agriculture
This topic is part of the transition to sustainable food systems within planetary boundaries that is needed to secure the future availability of food. It covers developing solutions for resource-efficient and sustainable food production systems (for instance, that protect animal welfare and health, reduce carbon emissions and increase yield) and supporting the livelihoods of smallholder farmers across value chains together with partners.
Management approach: We manage this topic by enabling healthy food systems through our Nutrition businesses, which target sustainable agriculture. We advocate for a change in food systems within planetary boundaries. Through our Food System Commitments, we commit to enable on-farm livestock emissions reductions and to support the livelihoods of smallholder farmers.
For information on this topic, see:
- Our approach to the Sustainable Development Goals
- Strategy
- Collaborative platforms & networks
- Review of business
Resilience to economic & political volatility
Resilience requires a strong, sustainable and agile business model and supply chain, that reduces exposure to economic and political volatility, brought about by emerging risks such as geopolitical developments and global health crises.
Management approach: Our long-term strategy is toward becoming a company focused on Health, Nutrition & Bioscience which addresses the urgent societal and environmental consequences associated with how the world produces and consumes food. Our business model of ‘global products, local solutions’ gives us scalability and quantity combined with local (customized) solutions. Through our risk management framework, we identify risks and define mitigating actions.
For information on this topic, see:
Cybersecurity
Preventing fraud and the unauthorized access to our networks, IT systems and data, while ensuring company and employee data protection.
Management approach: Cybersecurity is under the accountability of the Cyber Security Office together with the Cyber Security Governance Board. Awareness on cybersecurity is addressed through the Security e-learning covering our key security behaviors and the Cyber Fraud Awareness e-learning. Global, as well as targeted, phishing tests are regularly carried out to ensure our people stay alert.
For information on this topic, see:
Consumer behavior
Addressing changes in consumer behavior and awareness by manufacturing products that consider future needs of society and the environment.
Management approach: Consumer behavior can be both a risk and an opportunity to the company. We recognize shifts in business models, industry and end-consumer behavior, and the ability to respond to changes in our emerging risks. We have shifted our innovation approach to be platform-based, and have identified four growth themes that align to our future strategic needs and support our growth ambitions. These themes align to major global societal, technological and environmental trends.
For information on this topic, see:
Digital transformation
Digital transformation refers to the application of digital technologies to all aspects of business and society.
Management approach: Digital solutions support and strengthen our customer relationships. We monitor and mitigate potential risks relating to digital through Group Risk Management. Our Information Security Office and Privacy Policy guide our approach toward the security of information assets.
For information on this topic, see:
Community relations
Minimizing a company’s impact on communities, engaging with the communities toward common understanding and value creation, and giving back to society through corporate citizenship activities.
Management approach: DSM engages with the communities in which it operates at multiple levels – from local community initiatives to collaborations with universities and research institutes. We engage in philanthropic and sponsorship activities, as well as via the in-kind contributions of our employees’ hours and expertise.
For information on this topic, see:
