Ecosystem conversion and restoration
While DSM has a target to achieve conversion-free supply chains, it is unclear whether the target is limited to certain certification models that are aligned with DCF (e.g. RSPO Segregated) or whether it includes other non-aligned models (e.g. RSPO Mass Balance). Furthermore, it does not disclose details and outcomes of ecosystem restoration projects in areas affected by its own operations or by its suppliers.
Impact and dependencies assessment
The company addresses biodiversity impacts through its DSM Responsible Care Plan, which also aims to monitor high-biodiversity areas around its sites. While it aspires to responsibly source high-risk raw materials in its upstream business relationships through certification schemes, the company has an opportunity to assess its impacts on nature, including biodiversity, and disclose the methodology and results of these assessments. Similarly, it has an opportunity to assess its own operations’ dependencies on nature as well as those of its upstream business relationships.
Invasive species
The company has not identified any activities that could lead to the introduction of invasive alien species in its own operations.
Key areas and species
While DSM has revealed that 34% of its production sites in FY2022 were near areas of significant biodiversity or protected zones, it still has an opportunity to disclose specific species populations in or near its own locations, their statuses on national and international conservation lists, and the exact sites in proximity to vital biodiversity areas. Further, transparency can be bolstered by detailing the locations of its suppliers adjacent to important biodiversity zones and the species populations near these supplier sites.
Resource exploitation and circularity performance
The company has an opportunity to disclose its inputs according to an international standard, and to report quantitatively on its group-wide circularity performance. It could also disclose activities to improve soil health or agrobiodiversity in its production or sourcing practices, set related targets and report progress against them.
Solid and air pollution
The company does not disclose relevant information related to pollution in its operations or supply chains.
Water
DSM does not disclose its processes for managing and monitoring discharge water quality. It has an opportunity to disclose time-bound targets to reduce water withdrawal and pollution across its own operations and report progress against them. The company could also engage with suppliers to reduce water withdrawal. Furthermore, DSM should disclose its preventive and corrective action plans for identified specific risks to the right to water and sanitation in its own operations.
