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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 are represented in this Leadership Team.
Calculations

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

As a mark of how seriously sustainability is taken at DSM,  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 compensation is a base salary. Half of that sum is based on sustainability performance - covering the proportion of products qualifying as Brighter Living Solutions, energy reduction and employee satisfaction and engagement. Variable income (bonuses) makes up the remaining 50% of salary, half of which is based solely on progress in reducing DSM’s greenhouse gas emissions. 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 working, helping the company to differentiate and drive value. In 2015, 91% of DSM’s innovations were ECO+, and 57% of the company’s sales were ECO+ . 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, every quarter. DSM’s reporting of its sustainability performance in its Integrated Annual Report is externally audited through limited assurance processes each year.

DSM’s Corporate Operational Audit department conducts regular sustainability audits as a part of the company’s Corporate Risk Management activities (sometimes unannounced). 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 report ‘what still went wrong’ in People, Panet and Profit performance on an annual basis.