DSM

Royal DSM N.V.
Quick Facts
Type	Public
sector	Chemistry
Headquarters (Benelux Organization)	Heerlen, Netherlands
Year of Origin	1902
Emissions (All Scopes)	13.24 megatons of CO2 (2020)
Total Revenue	8,106 billion EUR (2020)
Stock Exchange	Amsterdam
Key People	Geraldine Matchett (Co-CEO & CFO) Dmitri de Vreeze (Co-CEO & COO)
Number of Employees	23127
Subsidiaries	DSM has 89 associates and 4 joint ventures

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. Nowadays, DSM is a science-based company specializing in Nutrition, Health and Bioscience. In 2020, their total Greenhouse gas (GHG) emissions were 13.24 megaton. Their energy efficiency improved by 5.7 percent. At the time, their revenue was 8.1 billion euro’s. Compared to 2019, their net profit reduced from 764 million to 508 million in 2020. DSM has received an A rating for their climate change strategy from CDP. Worldwide, DSM employees work at over 200 sites in almost 50 countries. In 2020, the company employed a total of 23 127 people. DSM's balance sheet value was 14.4 billion euro in 2020. Its shares are listed on Euronext Amsterdam. DSM is currently headquartered in Heerlen, Netherlands but will move to Maastricht, Netherlands at the end of 2023.

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. Owners of DSM shares are primarily USA, UK or European-based.

DSM's sectors include nutrition, materials, innovation and corporate activities. 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

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.

Executive Committee

Executive Committee

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. However, it seems like this information is not accessible in DSM's annual report.

Supervisory Board

Supervisory Board

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.

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. DSM innovation center is a science-based research center focusing on long-term innovations outside the scope of current mainstream business. DSM specializes in fine chemistry and bioscience.

Government

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

Paris Agreement until Today

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

Financial Results since 2015

This table shows the financial situation of DSM since 2015.

Financial situation

Year	Revenue	Profit	Dividend
2015	8.9 billion EUR	92 million EUR	297 million EUR
2016	7.9 billion EUR	629 million EUR	296 million EUR
2017	8.6 billion EUR	1.8 billion EUR	320 million EUR
2018	9.3 billion EUR	1.1 billion EUR	365 million EUR
2019	9 billion EUR	764 million EUR	414 million EUR
2020	8.1 billion EUR	508 million EUR	423 million EUR
2021	9.2 billion EUR	1.68 billion EUR	421 million EUR

Current Emissions

DSM total emissions in all scopes over 2020 were 13,2 mton CO2. 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. DSM wants to improve energy efficiency by at least 1% annually until 2030. In 2020 energy efficiency has improved by 5,7%.

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. 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.

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

Total emissions since 2015 ( in megatonnes CO2-eq.)

Year	Scope 1	Scope 2	Scope 3	Total
2015	0.6	0.5	14.9	16
2016	1	0.5	19	20.5
2017	1.5 (1&2)	Unknown	21	22.5
2018	1.23 (1&2)	Unknown	11.3	12.55
2019	1.17 (1&2)	Unknown	11.6	12.77
2020	1.24 (1&2)	Unknown	12	13.24
2021	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. DSM wants to improve energy efficiency by at least 1 percent per year. Since 2019, business growth projects must be GHG-neutral or else be compensated within the same business.

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). 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 Also, DSM plans to implement an internal carbon price of 50 euro’s per tonne CO2. Through animal nutrition solutions DSM helps to reduce direct and indirect GHG emissions.

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

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

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.

Due Diligence

What still went wrong in ...

Yearly, DSM publishes a report outlining 'what still went wrong in [year]'. 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.

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.