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Environmental targets and performance

The table below shows DSM’s environmental reduction targets for 2010 and the progress relative to 2005. The environmental targets are based on the principle that all DSM’s sites in the world should as a minimum meet the standards as applied in the European Union or the United States. New plants and major plant modifications should meet this requirement right from the start, whereas existing plants should meet it within five years.

Environmental targets and performance

Items for which we have already achieved the target 2010 or are on track are indicated green in the table. The items for which achievement of the targets is not yet certain and which require additional effort for their realization are marked in yellow.

In the following paragraphs, we give the total emissions and energy consumption of DSM in 2008 and comment on our progress towards meeting the reduction targets for 2010. It should be taken into account that several plants reduced their output in the last quarter of 2008 for economic reasons.

The reporting of the data by the sites is regularly audited by the Corporate Operational Audit department of DSM.

Emissions to air

Dust
Based on the improvements realized in previous years, the target 2010 has already been achieved.

N2O
The emissions of N2O (dinitrogen oxide) have decreased strongly due to reduction projects that were realized in the nitric acid plants of DSM AGRO in Sittard-Geleen and IJmuiden, the Netherlands, at the end of 2007. The target 2010 has been achieved.

The main source left for N2O emissions is at the caprolactam plants of DSM Fibre Intermediates in Sittard-Geleen, the Netherlands, Augusta, USA and Nanjing, China. Measurement of N2O in these plants is complex, which causes some uncertainty in the reported values. Improved measurements may thus lead to corrections in the coming years.

DSM Fibre Intermediates is working on new technology for N2O abatement in caprolactam plants. For our 2020 targets we take into account that the development and application of this new technology will be successful.

SO2
Emissions of SO2 have decreased significantly since 2005. Due to limited sampling of the coal used at DSM Fibre Intermediates in Nanjing, China some uncertainty exists regarding the accuracy of the absolute SO2 data.

Closure of our DSM Nutritional Products site in Gonglu, China and the divestment of DSM Deretil have resulted in a reduction of approximately 350 tpa compared to 2007. Further reductions of SO2 are planned at the DSM Anti-Infectives sites in Toansa, India and Zhangjiakou, China. Reduction possibilities at DSM Fibre Intermediates in Nanjing, China are being evaluated and will be implemented by the end of 2010. Depending on the timely realization of these projects, we expect to realize the reduction target of 75% in 2010 or one year later.

NOx
The NOx-emissions fell compared to 2007 due to the closure of our site DSM Nutritional Products in Gonglu, China and the reduced output of several other plants, as a result of the economic situation. Realization of the target of 20% reduction in 2010 is related to the citric acid business activities.

VOC
Total emissions of volatile organic compounds fell by approximately 350 tpa compared with 2007.

Reductions resulted from lower production volumes at DSM Anti-Infectives Toansa, India and DSM Fibre Intermediates in Augusta, USA, the closure of DSM Nutritional Products in Gonglu, China and the divestment of DAI Deretil. An incident at DEX Plastomers in Sittard- Geleen resulted in an increase.

Further reduction projects are planned at the DSM Anti-Infectives sites Ramos Arizpe, Mexico, Toansa, India and Zibo, China. The achievement of the reduction target of 40% depends on the timely realization of these projects and improvements at DSM Fibre Intermediates in Augusta, USA.

Emissions to water

COD
The discharge of COD was significantly reduced compared to 2007, mainly due to improvements at DSM Fibre Intermediates in Nanjing, China and DSM Anti-Infectives in Zhangjiakou, China and the divestment of DSM Deretil. As a result of these and previous reductions, the target for 2010 has amply been achieved.

Waste

Non-hazardous waste
The landfilling of non-hazardous waste was significantly reduced compared to 2007. A major reduction resulted from a change in the destination of the mycelium at DSM Nutritional Products in Wuxi, China, which has been used as fertilizer since April 2008. Further reductions resulted from the divestment of DSM Deretil and reduced production of one of the products at DSM Nutritional Products in Dalry, UK.

As a result of these and previous reductions, the target for 2010 has amply been achieved.

Hazardous waste
DSM intends to ban landfilling of hazardous waste for all situations where feasible alternatives exist, which has been expressed via the 100% reduction target. Landfilling is only accepted within DSM if there are no technically feasible or legally permissible alternatives.

In 2008 a total of approximately 4100 tons hazardous waste were landfilled. By far the largest amount (3700 tons) came from DSM Anti-Infectives in Toansa, India. This concerned different types of waste that had been stored at the site in previous years and are now being transferred to an authorized landfill. No other feasible alternative is available.

For practically all the other material it was also shown that no technically feasible or legally permissible alternatives exist.

Climate Change (energy and Greenhouse Gases)

Due to lower production volumes, the total energy consumption has decreased significantly compared to 2007. The energy efficiency has improved by approximately 3% relative to 2005. The most important changes contributing to the improved efficiency are shifts to more efficient technology in DSM Anti-Infectives and DSM Nutritional Products, combined with a growth in production volume in these business groups. On the downside, a number of business groups had a significantly lower production, especially in the fourth quarter of 2008, resulting in inefficiencies.

Our total greenhouse-gas emissions are shown in the graph. They include direct CO2 emissions (emissions from our own processes), indirect CO2 emissions (emissions from the generation of purchased electricity and steam) as well as emissions from N2O and other greenhouse gases. The total emission of greenhouse gases was greatly reduced. This is primarily the result of a significant reduction of N2O emissions due to the reduction of N2O at the plants of DSM AGRO in Geleen and Ijmuiden, the Netherlands that was realized end 2007.

In 2008 we reviewed the options to reduce greenhouse gases, direct emissions of N2O and CO2, as well as indirect emissions of CO2 due to the use of electricity and steam. On the basis of this review, we have set a target of 25% reduction of greenhouse gases for the period 2008-2020, taking into account a certain dimension of production growth. To achieve this 25% reduction target, an average annual energy efficiency improvement of 1.7 % is necessary, as well as measures to substantially reduce the N2O emissions in our caprolactam plants.

In addition to reductions effected by DSM, some of our products and services will also contribute to the reduction of greenhouse gases in the value chain. In 2008 we continued Life Cycle Analyses to quantify the present impact and to develop a proper method for quantifying improvements. We expect to be able to derive meaningful targets for this in 2010.

Non-compliances and penalties

Four DSM sites were given environmental penalties by the competent authorities. Two of these were fined. The total amount paid in fines amounted to approximately €110,000, compared to €185,000 in 2007. The fines were imposed on DSM Anti-Infectives in Zhangjiakou, China and DSM Engineering Plastics in Genk, Belgium, in both cases for exceeding waste water discharge limits.

To the best of our knowledge, no other fines or non-monetary sanctions were incurred in 2008.

Environmental incidents and complaints

The total number of environmental complaints was 78. Just like previous years, most complaints were about odor (36) and noise (36). The sites that received most complaints were in Delft, the Netherlands (18) and Seclin, France (19).

The total number of all environmental incidents was 539. Of these incidents, 17 were rated as serious. This increase compared to 2007, when three incidents were classified as serious, is the result of a change in the definition of serious incidents.

Of the total number of 539 environmental incidents, 251 have also been classified as related to process safety. Together with 10 of our LWCs in which contact occurred with process chemicals, this adds up to 261 incidents that have a relation to process safety. 2008 is the first year that DSM reports a total number of these so-called ‘process safety incidents’.

Industry recognizes the need for performance indicators for process safety. It has been concluded that exclusively focusing on recordable injuries may hamper insight into performance on process safety. However, uniform reporting standards for process safety incidents are not available yet. We have therefore decided to use our own criteria, applying relatively low reporting thresholds. A process safety incident is defined as either a release of hazardous materials from an installation above previously defined reporting thresholds, or a lost-workday case due to contact with process chemicals.

In 2008 DSM started a dedicated 'process safety competence network' where specialists from all over the world work together on maintaining high process safety standards and sharing good practices. The above-mentioned information on process safety incidents will be analyzed to identify areas where we can improve further and to prioritize efforts following a risk based approach.

Water consumption

DSM’s global water consumption is shown in the graph below. DSM wishes to reduce its water footprint in the future in view of the fact that water scarcity is a growing issue worldwide and water is likely to become a strategic resource.

The first step is to compare the consumption figures of DSM sites in 2008 to a water scarcity database (WHO, UNICEF and the Water Resources Institute). This will be done in 2009.

On the basis of this initial scan, DSM will prioritize actions and set differentiated targets in a water policy for different water scarcity levels.

Biodiversity

In order to evaluate whether our operations can have a potential impact on biodiversity, we asked all our production sites whether they are in, or within a distance of 500m from, a protected area or an area of high biodiversity. In parallel, we conducted an independent internet search into this issue for the sites with the highest emissions. From these investigations it was shown that DSM has 12 sites in or adjacent to (protected) areas of high biodiversity. From a first analysis we have no indication of any impact of our operations on these areas. The analysis will be finalized in 2009.

Raw materials

DSM wishes to shift from non-renewable raw materials to renewable raw materials. In order to chart our progress over the coming years, we analyzed our raw material consumption in 2008. From the total amount of raw materials of approximately 4.9 million tons that DSM used in 2008, 12% can be classified as renewable. This category comprises mainly sugar, molasses and vegetable oils.

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