Difference between revisions of "DSM"

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'''Royal DSM N.V.''', stylized as '''DSM''', was established in 1902 by the Dutch government to mine coal reserves in the Southern Province of Limburg. <ref>https://www.dsm.com/corporate/about/our-purpose/heritage.html</ref> Nowadays, DSM is a science-based company specializing in Nutrition, Health and Bioscience. <ref>https://www.dsm.com/corporate/our-company/our-purpose.html</ref> In 2020, DSM employed 23127 people <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 4</ref> Total GHG emissions were 13.24 megatonnes. Energy efficiency improved by 5.7 percent. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html</ref> DSM revenu was 8.1 billion euro’s in 2020. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 200</ref> Net profit was 508 million, in contrast to 764 million in 2019. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 4</ref> DSM rceived an A rating for their climate change strategy from CDP. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 6</ref> DSM employees work at over 200 sites in almost 50 countries worldwide. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 42</ref> Balance sheet value of DSM was 14.4 billion EUR in 2020. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 88</ref> DSM shares are listed on Euronext Amsterdam. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 120</ref> DSM is currently headquartered in Heerlen, Netherlands but will move to Maastricht, Netherlands at the end of 2023. <ref>https://www.dsm.com/corporate/news/news-archive/2021/2021-07-15-dsm-global-head-office-to-move-to-maastricht-the-netherlands.html</ref>
'''Royal DSM N.V.''', stylized as '''DSM''', was originally established in 1902 by the Dutch government to mine coal reserves in the Southern Province of Limburg.<ref>https://www.dsm.com/corporate/about/our-purpose/heritage.html</ref> Nowadays, DSM is a science-based company specializing in Nutrition, Health and Bioscience.<ref>https://www.dsm.com/corporate/our-company/our-purpose.html</ref> In 2020, their total Greenhouse gas (GHG) emissions were 13.24 megaton. Their energy efficiency improved by 5.7 percent.<ref>https://annualreport.dsm.com/ar2020/services/downloads.html</ref> At the time, their revenue was 8.1 billion euro’s.<ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 200</ref> Compared to 2019, their net profit reduced from 764 million to 508 million in 2020.<ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 4</ref> DSM has received an A rating for their climate change strategy from CDP. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 6</ref> Worldwide, DSM employees work at over 200 sites in almost 50 countries.<ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 42</ref> In 2020, the company employed a total of 23 127 people.<ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 4</ref> DSM's balance sheet value was 14.4 billion euro in 2020.<ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 88</ref> Its shares are listed on Euronext Amsterdam.<ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 120</ref> DSM is currently headquartered in Heerlen, Netherlands but will move to Maastricht, Netherlands at the end of 2023.<ref>https://www.dsm.com/corporate/news/news-archive/2021/2021-07-15-dsm-global-head-office-to-move-to-maastricht-the-netherlands.html</ref>


== Company Structure ==
== Company Structure ==


Koninklijke DSM N.V. (Royal DSM) is a company limited by shares listed on Euronext Amsterdam. It is managed by a Managing Board together with an Executive Committee and an independent Supervisory Board. Members of the Managing Board and the Supervisory Board are appointed (and, if necessary, dismissed) by the General Meeting of Shareholders. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 120</ref>  Owners  of DSM shares are primarily USA, UK or European-based. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 172</ref>
Koninklijke DSM N.V. (Royal DSM) is a company limited by shares listed on Euronext Amsterdam. It is managed by a Managing Board together with an Executive Committee and an independent Supervisory Board. Members of the Managing Board and the Supervisory Board are appointed (and, if necessary, dismissed) by the General Meeting of Shareholders.<ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 120</ref>  Owners  of DSM shares are primarily USA, UK or European-based.<ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 172</ref>


DSM is made out of the sectors nutrition, materials, innovation and corporate activities. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html</ref> DSM was founded by the Dutch government and has remained a Dutch company ever since, which is why it is headquartered in the Netherlands.  
DSM's sectors include nutrition, materials, innovation and corporate activities.<ref>https://annualreport.dsm.com/ar2020/services/downloads.html</ref> DSM was originally founded by the Dutch government and has remained a Dutch company ever since, which is why it is headquartered in the Netherlands.  


=== Board of Directors ===
=== Board of Directors ===
{| class="wikitable"
{| class="wikitable"
|+Managing Board <ref>https://annualreport.dsm.com/ar2021/_assets/downloads/entire-dsm-ar21.pdf p. 168</ref>  
|+Managing Board<ref>DSM. ''Total remuneration of the Managing Board 2021.'' https://annualreport.dsm.com/ar2021/report-by-the-supervisory-board/remuneration-report-2021/remuneration-of-the-managing-board/total-remuneration-2021.html</ref>
!Name
!Name
!Function
!Function
Line 74: Line 74:
|Geraldine Matchett
|Geraldine Matchett
|Co-CEO & CFO
|Co-CEO & CFO
|2887
|1,003,625
|-
|-
|Dmitri de Vreeze
|Dmitri de Vreeze
|Co-CEO & COO
|Co-CEO & COO
|2943
|1,003,625
|-
|-
|}
|}
This number excludes the value of shares owned by both Co-CEOs. Together, Geraldine and Dimitri hold about 136,891 euro worth of DSM shares.<ref>DSM. ''Annual Report 2021,'' p. 169, retrieved on May 5th 2022. https://annualreport.dsm.com/ar2021/_assets/downloads/entire-dsm-ar21.pdf</ref>


=== Executive Committee ===
=== Executive Committee ===
{| class="wikitable"
{| class="wikitable"
|+Executive Committee <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 163</ref>
|+Executive Committee<ref>DSM. ''Annual Report 2021,'' p. 122, retrieved on May 5th 2022. https://annualreport.dsm.com/ar2021/?gclid=CjwKCAjw682TBhATEiwA9crl3zHHKOqND60DbFXlW_OYngF1I6Do6w6P6CiywGtZXDMdbCBYOnc1BRoCn54QAvD_BwE</ref>
!Name  
!Name  
!Function
!Function
Line 101: Line 102:
|-
|-
|}
|}
In the case where the management board works with an executive committee, the first should inform the supervisory board about the remuneration of the members of the executive committee.<ref>Monitoring Committee. ''Corporate Governance Code,'' p. 31, published on December 8th 2016 and retrieved on May 5th 2022. https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/corporate-governance-code-en.pdf </ref> However, it seems like this information is not accessible in DSM's annual report.


===Supervisory Board ===
===Supervisory Board ===
{| class="wikitable"
{| class="wikitable"
|+Supervisory Board <ref>https://annualreport.dsm.com/ar2021/_assets/downloads/entire-dsm-ar21.pdf p. 174</ref>
|+Supervisory Board<ref>DSM. ''Annual Report 2021,'' p. 173, retrieved on May 5th 2022.https://annualreport.dsm.com/ar2021/_assets/downloads/entire-dsm-ar21.pdf</ref>
!Name
!Name
!Function
!Function
!Remuneration x1000 EUR
!Remuneration x1000 EUR (2021)
|-
|-
|Thomas Leysen
|Thomas Leysen
|Chairman
|Chairman
|113
|113.33
|-
|-
|John Ramsay
|John Ramsay
|Deputy Chairman
|Deputy Chairman
|98
|101.17
|-
|-
|Rob Routs
|Rob Routs
|Chairman
|Chairman
|129
|53.65
|-
|-
|Pauline van der Meer Mohr
|Pauline van der Meer Mohr
|Deputy Chair
|Deputy Chair
|99
|41.15
|-
|-
|Eileen Kennedy
|Eileen Kennedy
|Member
|Member
|99
|98.75
|-
|-
|Carla Mahieu
|Carla Mahieu
|Member
|Member
|50
|49.73
|-
|-
|Erica Mann
|Erica Mann
|Member
|Member
|97
|91.75
|-
|-
|Pradeep Pant
|Pradeep Pant
|Member
|Member
|97
|101.75
|-
|-
|Frits Dirk van Paaschen
|Frits Dirk van Paaschen
|Member
|Member
|97
|99.71
|-
|-
|}
|}


=== Accountant ===
=== Accountant ===
The external auditor of DSM is KPMG. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 278</ref>
The external auditor of DSM is KPMG.<ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 278</ref>


=== Main Activities ===
=== Main Activities ===
DSM business groups are divided in Nutrition, Materials and Innovation Center. Nutrition comprises Animal Nutrition, Human Nutrition, Food and Beverage, and Care and Health. The Materials cluster comprises Engineering Materials and Protective Materials. <ref>https://www.dsm.com/corporate/our-businesses.html#innovation-center</ref> DSM innovation center is a science-based research center focusing on long-term innovations outside the scope of current mainstream business. <ref>https://www.dsm.com/corporate/science-innovation/unique-approach.html</ref> DSM specialises in fine chemistry and bioscience.  
DSM business groups are divided in Nutrition, Materials and Innovation Center. Nutrition comprises Animal Nutrition, Human Nutrition, Food and Beverage, and Care and Health. The Materials cluster comprises Engineering Materials and Protective Materials.<ref>https://www.dsm.com/corporate/our-businesses.html#innovation-center</ref> DSM innovation center is a science-based research center focusing on long-term innovations outside the scope of current mainstream business.<ref>https://www.dsm.com/corporate/science-innovation/unique-approach.html</ref> DSM specializes in fine chemistry and bioscience.  


===Government===
===Government===
DSM has royal status. <ref>https://www.koninklijkhuis.nl/onderwerpen/onderscheidingen/predicaat-koninklijk/overzicht-predicaat-koninklijk</ref> DSM did not receive NOW-support during corona times. <ref>https://now-inzichtelijk.nl/</ref>
DSM has a royal status.<ref>https://www.koninklijkhuis.nl/onderwerpen/onderscheidingen/predicaat-koninklijk/overzicht-predicaat-koninklijk</ref> DSM did not receive government implemented NOW-support during the corona-crisis.<ref>https://now-inzichtelijk.nl/</ref>


== Paris Agreement until Today ==
== Paris Agreement until Today ==
According to DSM, their scope 1 & 2 market-based GHG emissions improved by 25% compared to the 2016 baseline. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 71</ref> The year on year GHG efficiency improved 8,6% in 2020. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 71</ref> However, in the same report it is visible that scope 3 emissions have actually increased since 2019. <ref>https://annualreport.dsm.com/ar2020/_assets/downloads/entire-dsm-ar20.pdf p. 70</ref>
According to DSM, their scope 1 & 2 market-based GHG emissions improved by 25% compared to their 2016 baseline.<ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 71</ref> The year by year GHG efficiency improved with 8,6% in 2020.<ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 71</ref> However, in the same report it is visible that scope 3 emissions have actually increased since 2019.<ref>https://annualreport.dsm.com/ar2020/_assets/downloads/entire-dsm-ar20.pdf p. 70</ref>


=== Financial Results since 2015 ===
=== Financial Results since 2015 ===
Line 169: Line 171:
!Dividend
!Dividend
|-
|-
|2015 <ref>https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/dsm-annual-report-2015.pdf</ref>
|2015<ref>https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/dsm-annual-report-2015.pdf</ref>
|8.9 billion EUR  
|8.9 billion EUR  
|92 million EUR
|92 million EUR
|297 million EUR <ref>https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/dsm-annual-report-2015.pdf p. 134</ref>
|297 million EUR<ref>https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/dsm-annual-report-2015.pdf p. 134</ref>
|-
|-
|2016 <ref>https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/dsm-annual-report-2016.pdf</ref>
|2016<ref>https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/dsm-annual-report-2016.pdf</ref>
|7.9 billion EUR  
|7.9 billion EUR  
|629 million EUR
|629 million EUR
|296 million EUR <ref>https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/dsm-annual-report-2016.pdf p. 138</ref>
|296 million EUR<ref>https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/dsm-annual-report-2016.pdf p. 138</ref>
|-
|-
|2017 <ref>https://annualreport.dsm.com/ar2017/en_US/4-key-data.html</ref>
|2017<ref>https://annualreport.dsm.com/ar2017/en_US/4-key-data.html</ref>
|8.6 billion EUR  
|8.6 billion EUR  
|1.8 billion EUR
|1.8 billion EUR
|320 million EUR <ref>https://annualreport.dsm.com/ar2018/en_US/4-key-data.html p. 170</ref>
|320 million EUR<ref>https://annualreport.dsm.com/ar2018/en_US/4-key-data.html p. 170</ref>
|-
|-
|2018 <ref>https://annualreport.dsm.com/ar2018/en_US/4-key-data.html</ref>
|2018<ref>https://annualreport.dsm.com/ar2018/en_US/4-key-data.html</ref>
|9.3 billion EUR  
|9.3 billion EUR  
|1.1 billion EUR
|1.1 billion EUR
|365 million EUR <ref>https://annualreport.dsm.com/ar2018/en_US/4-key-data.html p. 170</ref>
|365 million EUR<ref>https://annualreport.dsm.com/ar2018/en_US/4-key-data.html p. 170</ref>
|-
|-
|2019 <ref>https://annualreport.dsm.com/ar2019/key-data.html</ref>
|2019<ref>https://annualreport.dsm.com/ar2019/key-data.html</ref>
|9 billion EUR  
|9 billion EUR  
|764 million EUR
|764 million EUR
|414 million EUR <ref>https://annualreport.dsm.com/ar2019/key-data.html p. 176</ref>
|414 million EUR<ref>https://annualreport.dsm.com/ar2019/key-data.html p. 176</ref>
|-
|-
|2020 <ref>https://annualreport.dsm.com/ar2020/_assets/downloads/entire-dsm-ar20.pdf</ref>
|2020<ref>https://annualreport.dsm.com/ar2020/_assets/downloads/entire-dsm-ar20.pdf</ref>
|8.1 billion EUR  
|8.1 billion EUR  
|508 million EUR
|508 million EUR
|423 million EUR <ref>https://annualreport.dsm.com/ar2020/_assets/downloads/entire-dsm-ar20.pdf p. 203</ref>
|423 million EUR<ref>https://annualreport.dsm.com/ar2020/_assets/downloads/entire-dsm-ar20.pdf p. 203</ref>
|-
|-
|2021 <ref>https://annualreport.dsm.com/ar2021/_assets/downloads/entire-dsm-ar21.pdf</ref>
|2021<ref>https://annualreport.dsm.com/ar2021/_assets/downloads/entire-dsm-ar21.pdf</ref>
|9.2 billion EUR  
|9.2 billion EUR  
|1.68 billion EUR
|1.68 billion EUR
|421 million EUR <ref>https://annualreport.dsm.com/ar2021/_assets/downloads/entire-dsm-ar21.pdf p. 209 </ref>
|421 million EUR<ref>https://annualreport.dsm.com/ar2021/_assets/downloads/entire-dsm-ar21.pdf p. 209 </ref>
|}  
|}  


====Scandals and controversies====
===Scandals and controversies===
To be added.
 
== Current Emissions ==
== Current Emissions ==
DSM total emissions in all scopes over 2020 were 13,2 mton CO2. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 44</ref> 1,24 megatonnes are in scope 1 and 2, 12 megatonnes is in scope 3. The goal for scope 3 is an intensity reduction of 28% by 2030. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 70</ref> DSM wants to improve energy efficiency by at least 1% annually until 2030. In 2020 energy efficiency has improved by 5,7%. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 24</ref>  
DSM total emissions in all scopes over 2020 were 13,2 mton CO2. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 44</ref> 1,24 megatonnes are in scope 1 and 2, 12 megatonnes is in scope 3. The goal for scope 3 is an intensity reduction of 28% by 2030. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 70</ref> DSM wants to improve energy efficiency by at least 1% annually until 2030. In 2020 energy efficiency has improved by 5,7%. <ref>https://annualreport.dsm.com/ar2020/services/downloads.html p. 24</ref>  
Line 286: Line 286:
DSM has set up a CO2REDUCE plan to tackle upstream emissions in the value chain. DSM recognises that only together with their partners they can reduce their scope 3 emissions, Currently, the CO2REDUCE plan includes alternative feedstock, sustainable products, supplier selection, energy efficiency, renewable energy, end-of-pipe solutions and circularity of the materials chain. <ref>https://www.dsm.com/suppliers/en_US/sustainability/reducing-our-carbon-footprint.html</ref>
DSM has set up a CO2REDUCE plan to tackle upstream emissions in the value chain. DSM recognises that only together with their partners they can reduce their scope 3 emissions, Currently, the CO2REDUCE plan includes alternative feedstock, sustainable products, supplier selection, energy efficiency, renewable energy, end-of-pipe solutions and circularity of the materials chain. <ref>https://www.dsm.com/suppliers/en_US/sustainability/reducing-our-carbon-footprint.html</ref>


=== Due Diligence ===  
=== Due Diligence ===
Keep the broader context in mind. Is the company integer when it comes to deforestation, palm oil, biodiversity, human rights etc etc? Be critical in the sources used here.
 
====== '''What still went wrong in ...''' ======
Yearly, DSM publishes a report outlining '''what still went wrong in [year]'.''<ref>DSM. ''What still went wrong in 2021.'' Accessed on May 5th 2022.https://annualreport.dsm.com/ar2021/corporate-governance-and-risk-management/what-still-went-wrong-in-2021.html</ref> In their 2021 report, DSM outlined multiple incidents that occurred. These include incidents involving falls, incidents during process interruptions and maintenance work, incidents due to flash fires/explosions, other health and safety incidents, incidents involving personal data and security incidents. DSM provides transparent data on these recordable injuries and reports the steps they took to respond to them.<ref>DSM. ''Safety.'' Accessed on May 5th 2022. https://annualreport.dsm.com/ar2021/report-by-the-managing-board/people/safety-health-well-being/safety.html</ref>


== Conclusion ==
== Conclusion ==


DSM is a dutch bio-chemical company specialising in health, nutrition and bioscience. DSM makes a profit of over 500 million euro’s yearly. Remuneration of top management is fairly higher than companies with similar revenu and profit numbers. The majority of emissions from DSM are in scope 3. DSM is invested in reducing emission numbers and has made notable progress in scope 1 & 2. DSM is commited to the targets in the Paris Agreement of 2015 but its scope 1, 2 and 3 targets fall short of 45% reduction by 2030 and its total emissions have risen between 2019 and 2020 instead of following a sharp reduction path that is needed to keep in line with the Paris Agreement.
DSM is a Dutch bio-chemical company specialising in health, nutrition and bioscience. DSM makes a profit of over 500 million euro’s yearly. Remuneration of top management is fairly higher than companies with similar revenu and profit numbers. The majority of emissions from DSM are in scope 3. DSM is invested in reducing emission numbers and has made notable progress in scope 1 & 2. DSM is commited to the targets in the Paris Agreement of 2015 but its scope 1, 2 and 3 targets fall short of 45% reduction by 2030 and its total emissions have risen between 2019 and 2020 instead of following a sharp reduction path that is needed to keep in line with the Paris Agreement.


==  References ==
==  References ==

Revision as of 16:29, 5 May 2022

Royal DSM N.V.
Bedrijf Logo
Quick Facts
TypePublic
sectorChemistry
Headquarters (Benelux Organization)Heerlen, Netherlands
Year of Origin1902
Emissions (All Scopes)13.24 megatons of CO2 (2020)
Total Revenue8,106 billion EUR (2020)
Stock ExchangeAmsterdam
Key People
  • Geraldine Matchett (Co-CEO & CFO)
  • Dmitri de Vreeze (Co-CEO & COO)
Number of Employees23127
SubsidiariesDSM has 89 associates and 4 joint ventures [1]

Royal DSM N.V., stylized as DSM, was originally established in 1902 by the Dutch government to mine coal reserves in the Southern Province of Limburg.[2] Nowadays, DSM is a science-based company specializing in Nutrition, Health and Bioscience.[3] In 2020, their total Greenhouse gas (GHG) emissions were 13.24 megaton. Their energy efficiency improved by 5.7 percent.[4] At the time, their revenue was 8.1 billion euro’s.[5] Compared to 2019, their net profit reduced from 764 million to 508 million in 2020.[6] DSM has received an A rating for their climate change strategy from CDP. [7] Worldwide, DSM employees work at over 200 sites in almost 50 countries.[8] In 2020, the company employed a total of 23 127 people.[9] DSM's balance sheet value was 14.4 billion euro in 2020.[10] Its shares are listed on Euronext Amsterdam.[11] DSM is currently headquartered in Heerlen, Netherlands but will move to Maastricht, Netherlands at the end of 2023.[12]

Company Structure

Koninklijke DSM N.V. (Royal DSM) is a company limited by shares listed on Euronext Amsterdam. It is managed by a Managing Board together with an Executive Committee and an independent Supervisory Board. Members of the Managing Board and the Supervisory Board are appointed (and, if necessary, dismissed) by the General Meeting of Shareholders.[13] Owners of DSM shares are primarily USA, UK or European-based.[14]

DSM's sectors include nutrition, materials, innovation and corporate activities.[15] DSM was originally founded by the Dutch government and has remained a Dutch company ever since, which is why it is headquartered in the Netherlands.

Board of Directors

Managing Board[16]
Name Function Remuneration x1000 EUR
Geraldine Matchett Co-CEO & CFO 1,003,625
Dmitri de Vreeze Co-CEO & COO 1,003,625

This number excludes the value of shares owned by both Co-CEOs. Together, Geraldine and Dimitri hold about 136,891 euro worth of DSM shares.[17]

Executive Committee

Executive Committee[18]
Name Function
Philip Eykerman President DSM Food Specialties and Corporate Mergers & Acquisitions
Helen Mets President Materials Cluster
Patricia Markeley President DSM Innovation Center
Cristina Monteiro President Group People & Organization

In the case where the management board works with an executive committee, the first should inform the supervisory board about the remuneration of the members of the executive committee.[19] However, it seems like this information is not accessible in DSM's annual report.

Supervisory Board

Supervisory Board[20]
Name Function Remuneration x1000 EUR (2021)
Thomas Leysen Chairman 113.33
John Ramsay Deputy Chairman 101.17
Rob Routs Chairman 53.65
Pauline van der Meer Mohr Deputy Chair 41.15
Eileen Kennedy Member 98.75
Carla Mahieu Member 49.73
Erica Mann Member 91.75
Pradeep Pant Member 101.75
Frits Dirk van Paaschen Member 99.71

Accountant

The external auditor of DSM is KPMG.[21]

Main Activities

DSM business groups are divided in Nutrition, Materials and Innovation Center. Nutrition comprises Animal Nutrition, Human Nutrition, Food and Beverage, and Care and Health. The Materials cluster comprises Engineering Materials and Protective Materials.[22] DSM innovation center is a science-based research center focusing on long-term innovations outside the scope of current mainstream business.[23] DSM specializes in fine chemistry and bioscience.

Government

DSM has a royal status.[24] DSM did not receive government implemented NOW-support during the corona-crisis.[25]

Paris Agreement until Today

According to DSM, their scope 1 & 2 market-based GHG emissions improved by 25% compared to their 2016 baseline.[26] The year by year GHG efficiency improved with 8,6% in 2020.[27] However, in the same report it is visible that scope 3 emissions have actually increased since 2019.[28]

Financial Results since 2015

This table shows the financial situation of DSM since 2015.

Financial situation
Year Revenue Profit Dividend
2015[29] 8.9 billion EUR 92 million EUR 297 million EUR[30]
2016[31] 7.9 billion EUR 629 million EUR 296 million EUR[32]
2017[33] 8.6 billion EUR 1.8 billion EUR 320 million EUR[34]
2018[35] 9.3 billion EUR 1.1 billion EUR 365 million EUR[36]
2019[37] 9 billion EUR 764 million EUR 414 million EUR[38]
2020[39] 8.1 billion EUR 508 million EUR 423 million EUR[40]
2021[41] 9.2 billion EUR 1.68 billion EUR 421 million EUR[42]

Scandals and controversies

Current Emissions

DSM total emissions in all scopes over 2020 were 13,2 mton CO2. [43] 1,24 megatonnes are in scope 1 and 2, 12 megatonnes is in scope 3. The goal for scope 3 is an intensity reduction of 28% by 2030. [44] DSM wants to improve energy efficiency by at least 1% annually until 2030. In 2020 energy efficiency has improved by 5,7%. [45]

Scope 1 & 2 market-based GHG emissions improved by 25% compared to the 2016 baseline. Total scope 1& 2 emissions were 1,24 million tons CO2eq in 2020. This was an increase in comparison to 2019 due to inorganic growth and increased production volumes. The year on year GHG efficiency improved 8,6% in 2020. [46] Scope 3 emissions rose in 2020 by 0,4 mton. This was due to increase in purchasing volume and a shift in more carbon-intense raw materials. [47]

DSM improved performance in volatile organic compound (voc’s) to air emission by 74% in 2020 [48]

Total emissions since 2015 ( in megatonnes CO2-eq.)
Year Scope 1 Scope 2 Scope 3 Total
2015 [49] 0.6 0.5 14.9 16
2016 [50] 1 0.5 19 20.5
2017 [51] 1.5 (1&2) Unknown 21 22.5
2018 [52] 1.23 (1&2) Unknown 11.3 12.55
2019 [53] 1.17 (1&2) Unknown 11.6 12.77
2020 [54] 1.24 (1&2) Unknown 12 13.24
2021 [55] 1,21 (1&2) Unknown 11.7 12.91

Despite the targets set, emissions have increased since 2015. In 2018, emissions for end of life treatment of products (scope 3) decreased drastically, without much explanation.

Climate Policy and Plans

DSM tries to decouple emissions from economic growth and is committed to reach NetZero GHG emissions across value chains by 2050. [56] DSM wants to improve energy efficiency by at least 1 percent per year. [57] Since 2019, business growth projects must be GHG-neutral or else be compensated within the same business. [58]

DSM has the ambition to cut 30 percent of absolute emissions by 2030 (vs. 2016, scope 1 and 2) and reduce value chain emission per ton of product by 28 percent by 2030 (vs. 2016, scope 3). [59] DSM plans to do this by improving their operations, enable customers and partners to deliver sustainable solutions and advocate for the future they believe in [60] Also, DSM plans to implement an internal carbon price of 50 euro’s per tonne CO2. [61] Through animal nutrition solutions DSM helps to reduce direct and indirect GHG emissions. [62]

DSM wants to apply an internal carbon taks of 50EU/t CO2eq to key investments, acquisitions and in management reporting. [63] DSM wants to purchase 75% of all its energy used by 2030 from renewable sources. [64]

DSM commits to five drivers of circularity in order to reduce their scope 3 GHG emissions. * Reduce use of critical resources * Replace scarce, hazardous and potentially harmful resources * Extend the lifetime of products * design for recyclability * recover waste streams [65]

DSM has set up a CO2REDUCE plan to tackle upstream emissions in the value chain. DSM recognises that only together with their partners they can reduce their scope 3 emissions, Currently, the CO2REDUCE plan includes alternative feedstock, sustainable products, supplier selection, energy efficiency, renewable energy, end-of-pipe solutions and circularity of the materials chain. [66]

Due Diligence

What still went wrong in ...

Yearly, DSM publishes a report outlining 'what still went wrong in [year]'.[67] In their 2021 report, DSM outlined multiple incidents that occurred. These include incidents involving falls, incidents during process interruptions and maintenance work, incidents due to flash fires/explosions, other health and safety incidents, incidents involving personal data and security incidents. DSM provides transparent data on these recordable injuries and reports the steps they took to respond to them.[68]

Conclusion

DSM is a Dutch bio-chemical company specialising in health, nutrition and bioscience. DSM makes a profit of over 500 million euro’s yearly. Remuneration of top management is fairly higher than companies with similar revenu and profit numbers. The majority of emissions from DSM are in scope 3. DSM is invested in reducing emission numbers and has made notable progress in scope 1 & 2. DSM is commited to the targets in the Paris Agreement of 2015 but its scope 1, 2 and 3 targets fall short of 45% reduction by 2030 and its total emissions have risen between 2019 and 2020 instead of following a sharp reduction path that is needed to keep in line with the Paris Agreement.

References

  1. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 227
  2. ↑ https://www.dsm.com/corporate/about/our-purpose/heritage.html
  3. ↑ https://www.dsm.com/corporate/our-company/our-purpose.html
  4. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html
  5. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 200
  6. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 4
  7. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 6
  8. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 42
  9. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 4
  10. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 88
  11. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 120
  12. ↑ https://www.dsm.com/corporate/news/news-archive/2021/2021-07-15-dsm-global-head-office-to-move-to-maastricht-the-netherlands.html
  13. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 120
  14. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 172
  15. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html
  16. ↑ DSM. Total remuneration of the Managing Board 2021. https://annualreport.dsm.com/ar2021/report-by-the-supervisory-board/remuneration-report-2021/remuneration-of-the-managing-board/total-remuneration-2021.html
  17. ↑ DSM. Annual Report 2021, p. 169, retrieved on May 5th 2022. https://annualreport.dsm.com/ar2021/_assets/downloads/entire-dsm-ar21.pdf
  18. ↑ DSM. Annual Report 2021, p. 122, retrieved on May 5th 2022. https://annualreport.dsm.com/ar2021/?gclid=CjwKCAjw682TBhATEiwA9crl3zHHKOqND60DbFXlW_OYngF1I6Do6w6P6CiywGtZXDMdbCBYOnc1BRoCn54QAvD_BwE
  19. ↑ Monitoring Committee. Corporate Governance Code, p. 31, published on December 8th 2016 and retrieved on May 5th 2022. https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/corporate-governance-code-en.pdf
  20. ↑ DSM. Annual Report 2021, p. 173, retrieved on May 5th 2022.https://annualreport.dsm.com/ar2021/_assets/downloads/entire-dsm-ar21.pdf
  21. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 278
  22. ↑ https://www.dsm.com/corporate/our-businesses.html#innovation-center
  23. ↑ https://www.dsm.com/corporate/science-innovation/unique-approach.html
  24. ↑ https://www.koninklijkhuis.nl/onderwerpen/onderscheidingen/predicaat-koninklijk/overzicht-predicaat-koninklijk
  25. ↑ https://now-inzichtelijk.nl/
  26. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 71
  27. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 71
  28. ↑ https://annualreport.dsm.com/ar2020/_assets/downloads/entire-dsm-ar20.pdf p. 70
  29. ↑ https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/dsm-annual-report-2015.pdf
  30. ↑ https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/dsm-annual-report-2015.pdf p. 134
  31. ↑ https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/dsm-annual-report-2016.pdf
  32. ↑ https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/dsm-annual-report-2016.pdf p. 138
  33. ↑ https://annualreport.dsm.com/ar2017/en_US/4-key-data.html
  34. ↑ https://annualreport.dsm.com/ar2018/en_US/4-key-data.html p. 170
  35. ↑ https://annualreport.dsm.com/ar2018/en_US/4-key-data.html
  36. ↑ https://annualreport.dsm.com/ar2018/en_US/4-key-data.html p. 170
  37. ↑ https://annualreport.dsm.com/ar2019/key-data.html
  38. ↑ https://annualreport.dsm.com/ar2019/key-data.html p. 176
  39. ↑ https://annualreport.dsm.com/ar2020/_assets/downloads/entire-dsm-ar20.pdf
  40. ↑ https://annualreport.dsm.com/ar2020/_assets/downloads/entire-dsm-ar20.pdf p. 203
  41. ↑ https://annualreport.dsm.com/ar2021/_assets/downloads/entire-dsm-ar21.pdf
  42. ↑ https://annualreport.dsm.com/ar2021/_assets/downloads/entire-dsm-ar21.pdf p. 209
  43. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 44
  44. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 70
  45. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 24
  46. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 71
  47. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 74
  48. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 76
  49. ↑ https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/dsm-annual-report-2015.pdf p. 51
  50. ↑ https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/dsm-annual-report-2016.pdf p. 51
  51. ↑ https://annualreport.dsm.com/ar2017/en_US/6-5-planet.html
  52. ↑ https://annualreport.dsm.com/ar2018/en_US/6-7-planet.html
  53. ↑ https://annualreport.dsm.com/ar2019/report-by-the-managing-board/planet.html
  54. ↑ https://annualreport.dsm.com/ar2020/_assets/downloads/entire-dsm-ar20.pdf
  55. ↑ https://annualreport.dsm.com/ar2021/_assets/downloads/entire-dsm-ar21.pdf
  56. ↑ https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/dsm-sustainability-introduction.pdf p. 30
  57. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 9
  58. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 71
  59. ↑ https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/dsm-sustainability-introduction.pdf p. 29
  60. ↑ https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/dsm-sustainability-introduction.pdf p. 13
  61. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 10
  62. ↑ https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/dsm-sustainability-introduction.pdf p. 29
  63. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 10
  64. ↑ https://annualreport.dsm.com/ar2020/services/downloads.html p. 24
  65. ↑ https://www.dsm.com/content/dam/dsm/corporate/en_US/documents/dsm-sustainability-introduction.pdf p. 37
  66. ↑ https://www.dsm.com/suppliers/en_US/sustainability/reducing-our-carbon-footprint.html
  67. ↑ DSM. What still went wrong in 2021. Accessed on May 5th 2022.https://annualreport.dsm.com/ar2021/corporate-governance-and-risk-management/what-still-went-wrong-in-2021.html
  68. ↑ DSM. Safety. Accessed on May 5th 2022. https://annualreport.dsm.com/ar2021/report-by-the-managing-board/people/safety-health-well-being/safety.html
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