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Governance

Lead from the top

As DSM’s core value, Sustainability has the attention of the entire Managing Board with CEO Feike Sijbesma as the primary focal point. The Sustainability Leadership Team, chaired by the Vice President Corporate Sustainability (who reports directly to the CEO) monitors the integration of sustainability into DSM’s business groups via policies and processes and oversees DSM’s sustainability performance and targets each quarter. Each of DSM’s business groups and contributing corporate functions are represented in this Leadership Team.
Governance is lead from the top

To support the company with developing, implementing, monitoring and reporting on its sustainability policies, DSM's Supervisory Board appointed its own Sustainability Committee in 2009 to supervise the Managing Board on sustainability matters.

Sustainability Advisory Board

DSM has also set up an external Sustainability Advisory Board - a diverse international group of thought leaders and sustainability practitioners - to help deepen its understanding of sustainability and understanding of external stakeholder needs.

Incentivizing sustainability

Sustainability is DSM’s core value, and this is reflected in how the company ties sustainability with financials - including remuneration.

The remuneration of DSM’s Managing Board is based on both short and long-term goals - stretching beyond purely financial targets. 50% of board member's total compensation is a base salary. Variable income (bonuses) makes up the remaining 50% of salary. Variable income is comprised equally of Short-Term and Long-Term Incentives.

Short Term Incentives include the proportion of products qualifying as Brighter Living Solutions, Employee Engagement and Safety Performance.

Long Term Incentives include progress in reducing DSM’s greenhouse gas emissions and improving DSM’s energy efficiency.

This total compensation package is based on the average of a labor-market peer group, all of which is overseen by a remuneration committee.

More information can be found in the latest DSM Integrated Annual Report.

DSM's solar field, Pune, India

Processes that enhance sustainability efforts

Sustainability is an integral part of strategy development, innovation and business development processes at DSM. DSM’s initiatives in sustainability are helping the company to differentiate and drive value. Brighter Living Solutions currently account for 63% of DSM’s product portfolio. With sustainability being the heartbeat of the company, DSM continues to drive a higher proportion of its Brighter Living Solutions to its customers.

Audits and reporting

As sustainability is at the core of DSM’s strategy, the company reports on the progress of its sustainability targets in an integrated way with its financial targets. DSM bases its sustainability reporting in the Integrated Annual Report on the guidelines of the Global Reporting Initiative (GRI). This report has been prepared in accordance with the GRI Standards: Comprehensive option. DSM's reporting of its sustainability performance in its Integrated Annual Report is externally audited each year.

DSM’s Corporate Operational Audit department conducts regular sustainability audits as a part of the company’s Corporate Risk Management activities (including unannounced audits). Increasingly, these audits aren’t focused purely on DSM but also apply to various partners and suppliers in the value chain.

DSM commits to being transparent about its sustainability performance which means we also report ‘what still went wrong’ in People, Planet and Profit performance on an annual basis.

Taskforce on Climate-Related Financial Disclosures (TCFD)

In September 2017 during Climate Week NYC, the Climate Disclosure Standards Board (CDSB) announced that DSM was one of the first ten leading global companies that committed to implementing the recommendations of the Task Force on Climate-related Financial Disclosures. This means that within three years (by 2020) we will publicly report information about the financial implications (both risks and opportunities) that climate change has on DSM, thereby improving the availability of climate-related financial information to global markets.