DSM Sustainability Introduction

DSM Corporate Sustainability

2017

Table of Contents

1. Sustainable Growth Areas

• Our Focus

• Sustainable Development Goals

2. DSM Sustainability Strategy

• DSM Strategy and Targets

• Brighter Living Solutions

• DSM Initiatives

3. Annexes

• Brighter Living Solutions case studies

Sustainable Growth Areas

Three key areas in which we accelerate

sustainable markets

Sustainable Growth Area I:

NutritionThe single largest contributor to disease in the world

37% of the world’s

adult

population is

overweight

14% overweight or

obese children

and adolescents

worldwide

62% of the world’s

obese living in

developing

countries

0countries

succeeded in

decreasing

obesity in the

last 33 years

<malnourished

are less able to

learn causing

them to have

lower earnings

later in life

<lack of proper

nutrients stops

the brain from

developing

properly

40% of children in

poor countries

have their

growth stunted

Without the

right food in

the first 1000 days of life, a

child suffers

from stunting

Sustainable Growth Area I:

NutritionWhat do we aim for?

❖ Health, comfort, transparency, traceability and guilt-

free consumption both in developing & developed

countries

Health: Nutritious & tasty food, heart and eye-health

Comfort & well-being: Great taste and texture experience

Transparency: Traceability of ingredients, understand impact in

supply chains

❖ Aspirational, affordable and available nutritional products in developing countries

Aspirational: Marketing effort to make it aspirational

Affordable: Increasing role of a responsible food processing

industry

Available: Reduce producer – consumer distance

Sustainable Growth Area II:

Climate Change & Renewable EnergyAffecting people (especially the most vulnerable) and nature

Without action, climate change could result in 100 million additional people living

in poverty by 2030 (World Bank, 2015)

Sustainable Growth Area II:

Climate Change & Renewable EnergyWhat do we aim for?

Reducing our own footprintRealize 40-45% GHG efficiency improvement 2008-2025 via energy

efficiency, 50% renewable purchased electricity and DSM applies an

internal carbon price for large capital investments as of 2016.

Enabling a low carbon economyBrighter Living Solutions that help to reduce Green House Gas

emissions across the value chain.

Advocating climate actionCreating markets in which low-carbon products thrive, with a focus on

renewable energy and carbon pricing.

8.1 % Households

9.8 % Manufacturing

29.8 % Mining and quarrying

33.5 % Construction

3.7 % Energy

Sustainable Growth Area III:

Circular & Bio-based economyThe world demands more value from the resources available

Valuable

materials

are leaking

from

our economies

Volatile priced

resources

influence

economic

and societal

stability

15 % Other economic activities

2598 Mtons of waste

in EU-28

in 2014

Waste distribution

Sustainable Growth Area III:

Circular & Bio-Based EconomyWhat do we aim for?

Reduce critical resource useEx: Use less resources while delivering the same contribution

to the economy

Replace scarce/ toxic resourcesEx: Replacing scarce, toxic and polluting resources with

renewable ones

Extend product lifetimeEx: extending the time and added value of materials in the

economy

Enable recycling Ex: Enabling the retrieval of materials

Recover organic waste streamsEx: Using organic waste streams as input for new application

with the highest possible value

Through our Sustainable Growth Areas we focus

on 5 different Sustainable Development Goals

NUTRITION

CLIMATE CHANGE

& ENERGY

CIRCULAR & BIO-

BASED ECONOMY

DSM Sustainability Strategy

Focused on delivering science-based,

sustainable and scalable solutions that

transform markets

RISK - REDUCTION Strong foundations that secure we operate

as a sustainable company

Offering sustainable and scalable

solutions to our customers,

integrating sustainability benefits in

how we create value for and engage

with our customers

Influencing and creating a societal

and market context in which DSM

products/solutions can thrive.

Driving systems change

OPPORTUNITY - SEEKING

SECURING THE VALUE

OF SUSTAINABILTIY

GHG efficiency, Renewable Energy

Safety, Health and Environment

Employee Engagement

Diversity & Inclusion

Human Rights

Sustainability as

business growth driver

BRIGHTER LIVING SOLUTIONS:

Eco+ & People+

Driving sustainable

MARKETS TRANSFORMATION

on Nutrition, Climate & Energy,

Circular & Bio-Based Economy

PROCESS PRODUCT

DSM Sustainability StrategyDriving Sustainable Markets

GHG efficiency

Renewable

energy

Brighter Living Solutions• Profitable solutions better for people and planet

• 65% of DSM products by 2020

Sustainable Growth Areas

Eco+ People+

Sustainability as Business Growth Driver

Health & Safety

Engagement

Diversity

Driving Sustainable Markets

Securing Sustainable OperationsSustainable Operations• GHG efficiency improvements 40-45% by 2025 (1)

• % of purchased electricity from renewables 50% by 2025

• Employee engagement favorable score 75% by 202

• Safety: Frequency recordable index 25% by 2020

(1) Relative improvement as compared to baseline 2008

DSM Sustainability Targets

• Nutrition

• Climate & Energy

• Circular and Bio-Based Economy

Sustainability KPIs2010

Realisation 2015

Realisation2016

Realisation 2020Targets

Dow Jones Sustainability Index Gold Class Gold Class Number 1 Gold Class

Brighter Living Solutions

Eco+ Eco+/People+

39%---

57%---

63%---

---65%

GHG efficiency improvements1 --- --- ---40-45%(2025)

Employee engagement2 70% 69% 71% 75%

Safety(Frequency Index Recordables)

0.57 0.41 0.33 0.25

DSM Sustainability TargetsSustainability performance

1 Compared to 2008; supported by Energy Efficiencies (> 1% annually) and Renewable Electricity (50% of purchased electricity in 2025)

2 Striving to reach High Performance Norm; in addition we strive to improve our (executives) Diversity Mix in (underrepresented)

Nationalities (from 39% in 2010, to 50% in 2015 to 60% in 2020) and Gender (female executives from 9% in 2010, to 15% in 2015 to 25%

in 2020)

Brighter Living SolutionsInnovations and products that are better for the planet (Eco+)

and people (People+) based on a product life cycle approach

EC

O+

Brighter Living Solutions

PEO

PLE+

Profitable solutions with a measurably better

impact on lives of people than mainstream

reference solution.

Profitable solutions with measurably better

environmental impact than mainstream

reference solution.

Brighter Living Drivers

Resources EnergyWaterLand use EmissionsHealth

conditions

Comfort &

Wellbeing

Working

Conditions

Community

Development

Improved

workers safety

Local

employment

/ Jobs creation

Ensured

fair wages

Renewable

sources

Reduced

noise

Reduced

odor

Waste

reduction

Light

weight

Life time

extension

Reduced

GHG emissions

Reduced water

consumption

Renewable

energy

Yield

improvement

Reduced

fuel use

Energy

efficiency

Maintaining

good health

Safer

ingredients

Better touch

Improved

Infrastructure

Improved

education

levels

Elimination

of child labor

Reduced

emissions

to soil

Replacement

critical / scarce

materials

2nd gen

feedstock

Reduced

emissions

to water

Reduced

particles

to air

Mitigating

nutrition

deficiencies

Ensure sufficient

intake nutrients

for good health

Better taste

Mitigating

health effects

of pollution

Experienced

higher comfort

Elimination

discrimination

Brighter Living Solutions Examples of Brighter Living Drivers for Eco+ and People+

Prevention of

water pollution

Safer

ingredients

Reduce risk

of diseases

Recycled

content

• DSM has chosen three Sustainable Growth Areas to focus its efforts on: Nutrition,

Climate Change & Energy, and Circular & Bio-based Economy.

• With this focus DSM contributes to several Sustainable Development Goals, in

particular SDGs 2, 3, 7, 12 and 13.

• ‘Brighter Living Solutions’ are products and innovations that are measurably better

than mainstream reference solutions for planet and people.

• Our Sustainability Strategy is based upon securing its sustainable operations and

workforce, using Sustainability as a growth driver, and driving market transformation

with selected partners in the three growth areas.

SummaryDSM is driving sustainability across its operations as well as its current and

future product portfolio, while engaging in targeted advocacy to enable both

Annexes

Examples of Brighter Living Solutions

Societal challenge

The marine industry is one of the larger contributors to GHG

emissions and it continuously explores ways to reduce for instance

through improved the fuel efficiency by technical modification of

existing ships. The weight of ropes contribute to the carbon

footprint of transported products.

DSM solution

Dyneema® is the world’s strongest fiber. Ropes with Dyneema®, are

more durable, light enough for one to handle, cause less injuries,

and deliver the lowest carbon footprint when measured by strength

performance.

People + & Eco+

Impact on the lives of people:

Easier and safer handling of ropes due to the lightweight.

Impact on the environment:

Dyneema® provides the lowest carbon footprint on a tenacity basis

and as such is providing “The greenest strength™” to customers and

end users. Ropes made with Dyneema® use significantly less

material and last longer than alternative solutions resulting in an

even lower carbon footprint over the lifetime of the ropes.

Dyneema® heavy marine ropes

More information: http://www.dsm.com/products/dyneema/en_GB/applications/ropes-lines-

and-slings/mooring-tow-ropes.html

EmissionsResources

Health Comfort & Well-being

Societal challenge

Consumers realize the importance of reducing the risks of

cardiovascular diseases and controlling blood glucose levels.

Worldwide healthcare costs related to cardiovascular diseases

will increase 22% by 2030, when one in ten adults is expected

to have diabetes.

DSM solution

Nutritional ingredient OatWell® used in supplements,

smoothies, breads, breakfast cereals, biscuits, snacks and

many other products.

People+

Impact on the lives of people:

Reduces the risk of cardiovascular diseases by helping to lower

cholesterol levels and reduce peak blood glucose levels after a

meal.

OatWell® dietary fiber

More information:

www.dsm.com/markets/foodandbeverages/en_US/products/nutraceuticals/oat

well.html

Health Comfort & Well-being

Pack-Age® packaging solution

Societal challenge

With an increasing population, pressure on resource

efficient food production is growing.

DSM solution

Pack-Age®, a cheese ripening solution, allows cheese

producers to tackle waste, cost and environmental impact

by avoiding the need to discard cheese.

Eco+

Impact on the environment:

Compared to conventionally coated and ripened cheese,

Pack-Age customers see yield improvements of up to 10%

through a combination of reduced moisture loss, lower

wastage and reduced milk use. And since Pack-Age® is

clean label, no further ingredients are needed to preserve

the cheese from mold during ripening.

More information:

www.dsm.com/markets/foodandbeverages/en_US/products/preservation

/pack-age.html

Resources

Societal challengeSolvent-borne coatings are responsible for 21% of the global non

methane Volatile Organic Compound (VOC) emission, causing a

significant environmental and health impact. Additionally, the

Carbon footprint of these solvent borne coatings is high compared

to available alternatives.

DSM solutionUralac® Ultra is a 100% solid powder technology used for coatings

on wooden furniture that is exposed to heavy-duty use, like

bathrooms, children’s and kitchen furniture.

Brighter Living SolutionImpact on environment:

Uralac® Ultra does not contribute to the global VOC emission. In

addition, the carbon footprint of the coating in the final

application is 75% lower than solvent borne coatings.

Impact on lives of people:

Uralac® Ultra contains no toxic components and therefore safe in

use during and after applying.

Health

Energy

Uralac® Ultra coatings

More information: http://www.dsm.com/markets/paint/en_US/technologies/technology-

powder/uralac-ultra.html

Emissions

Resources