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.
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.
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. 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’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, Planet and Profit performance on an annual basis.