Modern Slavery Statement

At DSM, we acknowledge and embrace our responsibility to respect human rights across our own business operations, our relationships with other businesses and the communities in which we operate. This statement is produced under the provisions of the UK Modern Slavery Act 2015. It explains the steps we take as a company to prevent modern slavery in our business and supply chains. Modern slavery includes slavery, servitude, forced labor and human trafficking.

Introduction

DSM is committed to respecting internationally recognized human rights as set out in the International Bill of Human Rights (consisting of the Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights) and in the International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work.

Moreover, we adhere to the expectations expressed in the Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises, the ten principles of the UN Global Compact, the United Nations Guiding Principles for Business and Human Rights (UNGPs), the United Nations Women’s Empowerment Principles, the UNICEF Save the Children and Global Compact Child rights and Business Principles, and the Responsible Care Global Charter.

DSM engages with stakeholders to identify and address human rights concerns. Special attention is given to certain stakeholder groups such as DSM employees, DSM business relations (and their employees) and the local communities in which DSM operates.

Our business

Royal DSM is a global purpose-led, science-based company in Nutrition, Health and Sustainable Living. DSM’s purpose is to create brighter lives for all. With its products and solutions DSM addresses some of the world’s biggest challenges whilst creating simultaneously economic, environmental and societal value for all its stakeholders; customers, employees, shareholders, and society-at-large. DSM delivers innovative solutions for human nutrition, animal nutrition, personal care and aroma, medical devices, green products and applications, and new mobility and connectivity. DSM and its associated companies deliver annual net sales of about €10 billion with approximately 23,000 employees. The company was founded in 1902 and is listed on Euronext Amsterdam.

Our commitment to combatting modern slavery

DSM is committed to acting ethically and maintaining a fair and honest business environment for employees, customers, suppliers and communities.

Risk assessment, due diligence and audit of own operations and suppliers

In our own operations, DSM uses the Supplier Ethical Data Exchange (SEDEX) platform to monitor and track social and environmental performance. The Self-Assessment Questionnaire (SAQ) looks at four core pillars in the areas of Labor Standards, Health and Safety, Environment and Business Integrity. To ensure compliance, DSM sites are checked every three years by external auditors using the Sedex Members Ethical Trade Audit (SMETA) process. The findings are closely monitored, and non-compliance rapidly remediated through the introduction of appropriate corrective actions.

In parallel, at DSM we actively monitor our supply base via supplier contacts/visits, sustainability assessments, and quality and sustainability audits on site. In any case where human rights abuses are observed measures are taken. DSM expects suppliers to have processes in place to remediate those human rights abuses they cause or contribute to.

Besides monitoring compliance with the above, we are working to identify where the greatest risks of slavery, forced labor and human trafficking arise with our business and supply chains, and are reviewing our procedures for combatting slavery and human trafficking, including assessing the needs to revise our internal processes and enhance the due diligence we conduct on our suppliers.

As a member of ‘Together for Sustainability’ (TfS), an industry collaboration focused on driving improvements in terms of supply chain sustainability in the chemical industry, DSM is co-developing and implementing a global audit program to assess and improve sustainability practices within the supply chains of the chemical industry. Combatting slavery and human trafficking is an important focus area part thereof.

This collaboration enabled DSM to screen approximately 4,700 suppliers in 2017, resulting in 1.2% being identified as 'suppliers at risk'. In line with internal follow-up guidelines, these will be further investigated by means of an on-site audit of their facilities to ensure that improvement plans will be made. DSM was able to screen 10% of new suppliers regarding their environmental performance, impact on society, human rights and labor practices.

Training

All DSM employees are expected to follow the Code of Business Conduct, which is available in seven languages on the company website. They receive regular training on values and business principles per the framework requirements. Purchasers are also trained on how to educate suppliers on Supplier Code of Conduct and how to act when suppliers are not compliant.

This statement was approved by the Managing Board and Executive Committee of Koninklijke DSM N.V. on 28 January 2019. This statement covers Koninklijke DSM N.V. and all its legal entities.

Signed,
Judith Wiese
Member DSM Executive Committee, EVP Group People & Organization