The total number of accidents at DSM declined by more than 20 percent in 2004 compared with 2003. With regard to the environment, nine of the fourteen targets that were set for 2006 have already been met. The group’s financial results in 2004 were significantly better than in 2003, according to DSM’s Triple P (‘People, Planet, Profit’) Report for 2004 which was published today.

According to the chairman of DSM’s Managing Board, Peter Elverding, " DSM made progress on all fronts”. “But,”says Elverding, “we are aware that further improvement is possible and necessary”. Improving energy efficiency, further reducing the environmental burden, reducing the number of accidents and improving profitability years will continue to be major priorities for DSM in the coming years. 

Significant progress was made on all three dimensions of People, Planet and Profit in 2004. With regard to the environment (the ‘Planet’ dimension), nine of the fourteen targets that were set for 2006 have already been met. These targets effectively mean that emissions to water and air, land filling of waste and water consumption, measured by unit of product, must all be significantly lower than in 2000. A highlight of DSM’s performance on the ‘People’ dimension was the reduction of the number of accidents by more than 20 percent compared with 2003. The results on the ‘Profit’ dimension were also good, with net profit almost double the figure in 2003 at 262 million euro. Thanks to its Triple P record, in September 2004 DSM was included in the Global Dow Jones Sustainability Index, being rated the world’s most sustainable chemical company. DSM was also included in the FTSE4Good index (Global and Europe) in September 2004.

In a contribution to the Triple P Report, Professor Gerard Keizers of the Center for Sustainability at Nijenrode University (Netherlands) writes that DSM is at the forefront when it comes to developing innovation policies to support sustainable development. Keijzers: “Innovation not just for the sake of innovation but to safeguard the company’s flexibility and ability to meet the needs of future generations. In this way DSM has achieved an impressive transformation into one of the most modern industrial companies in the world”.

The highlights of DSM’s Triple P developments in 2004 are outlined below.

People

• Major reorganizations at several DSM business groups.

• Further integration of DSM Nutritional Products.

• A working climate analysis to assess the employees’ commitment.

• Fall (more than 20%) in the total number of accidents.

• Slight improvement (4%) in the frequency index for ‘lost workday cases’.

• Improvement in absenteeism rates compared with 2003.

• Continuation of the ‘Torch’ action, a program of activities designed to help the communities around all DSM sites that was inaugurated as part of the Dream Action in 2002.

At the end of 2004 DSM had 24,180 employees in fifty countries compared with a workforce of 26,111 in 2003. The decline in the number of employees in 2004 was due mainly to reorganizations and divestments.

In 2004 DSM produced a whistleblower procedure to allow employees to report abuses that they cannot or will not report through the regular channels. The procedure went into effect on 1 January 2005.

DSM has continued the Sight & Life program, which was established by the former Roche Vitamins & Fine Chemicals division (now DSM Nutritional Products). This humanitarian program is dedicated to providing technical assistance and training and teaching programs to educate local communities about vitamins. The project is targeted mainly at children in developing countries who face the risk of vitamin A deficiency. The organization also distributes free capsules of Vitamin A.

Planet

• At year-end 2004 DSM had realized nine of its 14 environmental targets for 2006.

• DSM has prepared for the European CO2 emission trading system. The company continues to call for the use of (harmonized) standards for emissions per unit of product rather than a system of fixed caps per company. Standards per unit of product will stimulate the innovation that is needed to reduce global CO2 emissions.

DSM sites are required to report not only accidents but also all environmental incidents and potential incidents, however minor. In 2004 the number of environmental incidents at DSM was down by thirty percent compared with 2003. The emissions of greenhouse gases and volatile organic substances remained stable, while emissions to water declined by around 8%.

Profit

• The financial results were significantly better than in 2003 and the balance sheet remained very healthy.

• Good progress with Vision 2005: Focus and Value. With the acquisition of NeoResins, finalized in 2005, DSM reached a significant milestone in its transformation to a multi-specialty company.

• DSM’s organic volume growth in 2004 reached more than 8%.

• Strong performances from DSM Nutritional Products and the Performance Materials and Industrial Chemicals clusters.