DSM publishes 2019 Integrated Annual Report

Heerlen, NL, 27 Feb 2020 10:00 CET

Royal DSM, a global science-based company in Nutrition, Health and Sustainable Living, today announces the publication of its 2019 Integrated Annual Report, in which it reports on its performance and progress during 2019 in terms of People, Planet and Profit, creating value for all stakeholders.

The report offers all DSM’s stakeholders (shareholders, customers, employees and civil society) detailed insights into the company’s progress in implementing Strategy 2021, including business developments, financial results, its environmental and social performance, as well as insights into its corporate governance and the company’s purpose.

The report demonstrates DSM’s consistent progress as a growth company with ambitious business and sustainability efforts across the three dimensions of People, Planet and Profit. Key highlights include:

• Strong business developments leading to the delivery of the company’s financial targets: double-digit growth in Adjusted EBITDA of 10% (including 3% from IFRS 16) and an Adjusted Net Operating Free Cash Flow increase of 47% (including 10% from IFRS 16), compared to the underlying business in 2018.
• Ongoing improvement of DSM’s environmental footprint, with an underlying cumulative structural improvement in absolute greenhouse gas (GHG) reduction of ~17% compared to the 2016 baseline, an energy efficiency improvement of 2.3% (versus an annual average ambition of over 1%), and the sourcing of 50% of all purchased electricity from renewable resources.
• DSM is the first European company in its sector with GHG reduction targets validated by the Science Based Targets initiative.
• DSM is one of the first companies in its sector to make the commitment to a long-term pathway toward net-zero GHG emissions across its operations and value chain by 2050.
• Substantial improvement of the company’s Safety Frequency Recordable Index to 0.28 (2018: 0.33).
• Continued progress on Inclusion & Diversity: 20% of DSM’s executives are female, and as of March 2020 the percentage of women in the company’s Executive Committee, Managing Board and Supervisory Board is at or above 50%.
• Leading positions in four important Environmental, Social & Governance indices: DSM is #1 out of 120 in its industry in Sustainalytics, has an AAA rating in MSCI, has the Prime score in ISS-Oekom, and has a leading position in Vigeo.

In addition to its audit opinion on the Financial Statements, KPMG provided a reasonable assurance opinion on the sustainability information contained within DSM’s 2019 Integrated Annual Report. This report has been prepared in accordance with the GRI Standards: Comprehensive option. The 2019 report is also aligned wherever possible with the <IR> Framework of the International Integrated Reporting Council (IIRC). Furthermore, with this report DSM continues to make steps in financial transparency on climate risks and opportunities by further disclosing against the TCFD (Taskforce Climate-related Financial Disclosures) recommendations.