DSM

Stakeholder engagement
DSM discloses an overview of its stakeholder engagement activities, including the issues raised via these activities per stakeholder group and how they have been addressed and integrated into the company’s sustainability strategy. The overview covers sustainability topics addressed by all three benchmark dimensions (environment, nutrition and social inclusion) as well as the process for how the company identified and engaged with stakeholders across its entire value chain.

No leading practices were identified for the company in the environment measurement area.

Accessibility and affordability of healthy foods
DSM discloses a commitment towards food insecurity and malnutrition, notably through projects in its Malnutrition Partnerships and Programs (MPP) team. Indeed, through this unit, the company discloses evidence of several value chain partnerships designed to create and improve access to solutions that address the nutritional needs of vulnerable groups. For example, through a partnership with the World Food programme, DSM demonstrates it is contributing to the improved distribution of fortified food. The company reports that this project has reached 30 million direct beneficiaries in 2019, spanning 15 countries globally.

No leading practices were found for the company in the social inclusion measurement area.

Governance and accountability for sustainable development
DSM provides an overview of its governance framework, which discloses where responsibility for the sustainability strategy lies within the company’s highest governance body. While the company’s remuneration policy is linked to sustainability targets, it is not clear if the policy applies to all three dimensions assessed by the benchmark. This offers an opportunity for the company to increase its disclosure in this area.

Sustainable development strategy
DSM discloses a materiality matrix which outlines the company’s priorities and material sustainability topics most relevant to its operations and business. The company links most of these topics to time-bound targets in the company’s sustainability strategy. Nevertheless, there remains an opportunity for the company to increase its level of disclosure, by defining time-bound targets across all material topics and across the three dimensions of the benchmark, including in its own operations and across its value chain.

Scope 1 and 2 greenhouse gas emissions
DSM reports on both its Scope 1 and 2 greenhouse gas emissions. The company has set a target to reduce these emissions by 50% absolute reduction by 2030 and reports against this target. The targets covering greenhouse gas emissions from company operations (scopes 1 and 2) are consistent with reductions required to keep warming well below 2 degrees. However, the targets are not aligned with 1.5 degrees scenario, presenting an opportunity for the company going forward.

Water use
DSM discloses a water stewardship policy which states that, by 2030, the company intends to achieve a 10% efficiency improvement across all its production sites. The company also reports against this target. While it has conducted site-level water-risk assessments for 100% of water-stressed sites, the company can increase its disclosure by expecting its suppliers to reduce water withdrawals through policies, targets or programmes.

Protection of terrestrial natural ecosystems
DSM discloses a responsible management of forests resources policy which outlines its approach to eliminating deforestation from its high risk commodities, palm oil and soy. This includes reporting the percentage of its palm oil which is currently certified across different certification schemes under the Round Table of Sustainable Palm Oil (RSPO) as well as its approach to soy which is certified according to the ProTerra certification. Going forward, there is an opportunity for the company to improve by disclosing the sourcing regions of its high risk commodities.

Availability of healthy foods
DSM provides examples of activities that contribute to increasing the production and variety of healthy and nutritious foods. These include the sustainable production of animal proteins, plant-based choices, immunity-supporting solutions, and food and beverage solutions that aim to reduce sugar and salt. Nonetheless, the company can increase its disclosure by providing quantitative evidence which supports these activities.

Food safety
DSM demonstrates compliance with national regulations on food safety as well as certification programmes for its industry, such as the FSSC 22000 certification. However, the company can increase the depth of its reporting by disclosing the percentage of its sites that are certified according to widely recognised or industry-specific certifications.

Workforce nutrition
The company does not disclose a workforce nutrition programme that prioritises making healthy foods the standard in the workplace.

Child Labour
While DSM commits to prohibiting child labour in its own operations and requires its suppliers to adhere to the same standard, it has an opportunity to disclose a policy requiring its suppliers to have an age-verification system in place.

Forced labour
While the company commits to prohibiting forced labour in its own operations and supply chain, it has an opportunity to disclose a requirement that prohibits its suppliers from retaining workers’ personal documents.

Farmer and fisher productivity and resilience
DSM provides details of support for farmers and small-scale producers in some of the regions where it operates, primarily through public-private partnerships with local governments and other consortiums. However, there remains an opportunity for the company to disclose more on this topic, by providing evidence of the impact its support activities have had on supporting the resilience and productivity of these groups.

DSM provides a grievance mechanism for workers and external parties and publicly commits to respecting both human rights and the rights of workers in its operations and supply chain. Moreover, DSM publicly discloses that it identifies human rights risks and impacts but does not disclose the process for doing so beyond the topic of modern slavery. However, the company does not provide information relating to multiple human rights topics, including engaging with potentially affected stakeholders and acting on and integrating human rights risks and impact assessments.

DSM commits to gender equality and women’s empowerment, including the representation of gender and nationalities at the executive level. Moreover, the company has statements and policies concerning paying a living wage, health and safety, and workforce diversity, although it lacks more detailed disclosure around their implementation and monitoring. Regarding a living wage, the company details how it works to support payment of a living wage in its supply chain. A lack of sufficient evidence was found on how the company regulates working hours and collective bargaining arrangements for workers.

DSM addresses and reports on its responsible tax approach, including publicly available information on taxes paid by region and country and public statements on not supporting the use of tax havens or activities relating to tax avoidance. However, there is an opportunity for the company to provide greater disclosure on other key issues, including the protection of personal data, anti-bribery and corruption or responsible lobbying policies and statements.