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Reducing our own carbon footprint

Managing greenhouse gas emissions and energy use

DSM actively manages its absolute GHG emissions reduction, GHG efficiency and energy efficiency. Information on our reduction targets for 2020 and our current performance can be found in our Integrated Annual Report 2016. DSM also discloses information about its climate actions in the Carbon Disclosure Project (CDP), to which the company has committed to report climate change information in mainstream reports as a fiduciary duty. DSM is among 9% of corporations participating in CDP’s climate change program to be awarded a position on the Climate A List, in recognition of its actions to reduce emissions and mitigate climate change in the past reporting year.
Managing greenhouse gas emissions and energy use

Renewable energy

In support for the Sustainable Development Goal #7 (“Affordable and Clean Energy") DSM is committed to responsible, efficient use of energy. However, the company depends on the availability of renewable energy via the grid or local energy production. As local policies affect our ability to scale up our procurement of renewable energy, DSM actively collaborates with authorities and other companies to jointly scale-up supply of renewable energy on the grid. DSM is a signatory of the Climate Group’s Renewable Energy 100 (RE100). This initiative brings together the world’s leading companies committed to sourcing 100% of electricity from renewable sources at the earliest possible opportunity. The intermediate target we set for 2025 is for 50% of our purchased electricity to be obtained from renewable sources.

DSM takes initiatives for on-site renewable energy generation at a regional and local level, for example:

40% renewable electricity in the U.S.

40% renewable electricity in the U.S.

In November 2017 DSM announced it will operate on 40% renewable electricity in the U.S. thanks to a new wind power agreement with NextEra Energy Resources. DSM has agreed to source a total of 128,000 MW-hours a year from a new wind farm expected to be commissioned in 2019 in Minco, Oklahoma. DSM’s contracted offtake represents approximately 13% of its annual electricity purchased globally and means the company is positioned to outpace its global target of 50% purchased electricity from renewable sources by 2025.

Solar Technologies Demonstration Center, Pune, India, photo ©Ipshita Maitra

High Performance Plastics plants in the Netherlands and India

In October 2017 DSM announced significant progress in powering its Engineering Plastics plants in the Netherlands and India with purchased electricity produced from renewable sources. DSM’s Stanyl® plant in Geleen (NL) obtains almost 85% of its purchased electricity from renewables, whilst our site in Pune (IN) now meets 50% of its total electricity requirements from renewable sources, half of which comes from DSM’s own on-site Solar Technologies Demonstration Center, while the other half derives from wind turbines.

Windpark Krammer, the Netherlands

Windpark Krammer, the Netherlands

We aim to use our scale to help catalyze and develop new local renewable through initiatives such as purchase power agreements. For example, in the Netherlands, we’re engaged in a unique ‘bottom-up’ initiative – Windpark Krammer – in which local citizens have taken the initiative to drive the development of a wind park in partnership with a consortium of four large-scale energy users including DSM, AkzoNobel, Google and Philips. When Windpark Krammer comes online in 2018, around 5% of its output will be used to provide local homes and small businesses with renewable power, while the remaining 95% of the power generated will be used by the consortium’s four industrial partners. Once at full capacity, Windpark Krammer will supply DSM with 90GWh of renewable electricity – or nearly 10% of the total amount of electricity DSM purchased in 2015.

Belvidere, United States

In December 2014 DSM announced the opening of a solar field at our plant in Belvidere (NJ), United States. The solar field not only stands as a symbol of DSM’s commitment to sustainable manufacturing in the United States, but also produces approximately 30-40% of the Belvidere plant’s electricity needs at peak production.

DSM's plant in Belvidere (NJ), US

Internal carbon price

At DSM, using an internal carbon price incorporates the cost of GHG emissions decision-making processes requiring significant capital expenditure. In the current period of first implementation, €50 per ton CO2 equivalents is applied. The number of companies that are applying an internal carbon price is growing. It serves as a useful model for redirecting and scaling up investments towards low-carbon technologies, driving operational efficiencies, especially in markets with a carbon price or in regions where a carbon price is expected to emerge.

To voice DSM’s support for global carbon pricing, DSM has joined the “Carbon Pricing Champions” of the United Nations Caring for Climate initiative and our CEO, Feike Sijbesma, is co-chair of the World Bank – IMF Carbon Pricing Leadership Coalition.