DSM continues to make strong progress on its People, Planet and Profit ambitions

Heerlen, NL, 02 Mar 2021 08:00 CET

Royal DSM, a global science-based company in Nutrition, Health and Sustainable Living, today published its 2020 Integrated Annual Report (IAR). Published in digital-only format for the first time, the IAR reports on DSM’s progress on all aspects of its People, Planet and Profit ambitions.

The report offers all DSM’s stakeholders detailed insights into the company’s progress in implementing its purpose-led, performance-driven Nutrition, Health and Sustainable Living strategy. It includes business developments, financial results, environmental and social performance, as well as insights into its corporate governance and how DSM is supporting the Sustainable Development Goals (SDGs). Key highlights include:

People

DSM offered all employees and their families immunity-optimizing supplements: as the COVID-19 pandemic unfolded, taking care of employees and their mental and physical health and well-being was more important than ever.
Improved the company’s Safety Frequency Recordable Index to 0.24.
Increased Employee Engagement Index rating to 76%, up 2% in a challenging year.
Continued and broadened its Inclusion & Diversity journey with five pillars on gender, generations, disability, LGBTQ+ and race, ethnicity and national identity.

Planet

Well on track on improving DSM’s environmental footprint with:
- An estimated cumulative structural improvement in absolute greenhouse gas reduction from operations of ~18% versus the 2016 baseline setting the company on a path towards NetZero by 2050.
- An energy efficiency improvement of 5.7% (versus an annual average ambition of over 1%).
- The sourcing of 60% of all purchased electricity from renewable resources, firmly on course to achieve DSM’s interim target of 75% by 2030 in pursuit of 100%.
- Continued engagement with key suppliers to reduce and report greenhouse gas emissions related to products supplied to DSM under the company’s CO2REDUCE program.
Enabled its customers to deliver more sustainable solutions to their (end) consumers with good progress on its innovation platforms such as Veramaris, Avansya, and Bovaer®.
Joined the Science Based Targets Initiative’s Net-Zero Expert Advisory Group, which will develop a standard to guide the formulation and assessment of science-based net-zero targets in the corporate sector.

Profit

Delivered a solid full year financial performance in a challenging COVID-19 environment, led by good results in Nutrition with an Organic Growth of 6% and an Adjusted EBITDA growth of 7%, and a strong recovery in Materials in the fourth quarter of the year.
Realized an Adjusted Net Operating Free Cash Flow from continuing and discontinued operations of €955 million, up 19%.
Completed in the year two strategic acquisitions in Nutrition, Glycom and Erber, as well as announced the future divestment of Resins & Functional Materials and associated businesses to Covestro.

Recognition

DSM holds a platinum sustainability medal from EcoVadis putting DSM in the top 1% of its industry. DSM maintained its top positions in the rankings of leading ESG advisors such as Sustainalytics, MSCI and ISS-OEKOM.
Received an A rating for its climate change strategy and an A- rating for its water stewardship from CDP, the non-profit global environmental disclosure platform.

Transparency

63% of DSM sales (including Resins) came from Brighter Living Solutions. These are products and services that have a better environmental and/or social impact than mainstream solutions.
KPMG provided a reasonable assurance opinion (highest level) on the sustainability information contained in the 2020 IAR.
Next steps in financial transparency on climate risks and opportunities by further disclosing against the TCFD (Taskforce Climate-related Financial Disclosures) recommendations.