August 2, 2022
DSM sets new climate targets to accelerate route to net-zero
Royal DSM announced that it pledges to purchase all of its electricity worldwide from renewable sources as well as further reduce greenhouse gas (GHG) emissions from its own operations faster with stringent new 2030 sustainability targets.
The new 100% renewable electricity ambition is a significant upward revision from the company's 75% target set in 2019. It follows continued urgent climate action by DSM over the years leading to the company already reaching 77% renewable electricity globally by the end of June 2022, eight years earlier than initially expected, and including 100% across all its Netherlands and North American operations.
DSM is also further accelerating its GHG emissions reduction efforts. The initial target of reducing scope 1 and 2 emissions by 30% versus 2016 levels by 2030 was increased to 50% in 2021.
Now DSM is revising this target upwards again to 59%, following considerable progress in the realisation of its targets and updates to its plan for execution for the coming years. The company has submitted its plans for review by the Science Based Targets initiative (SBTi).
It will also move from a relative intensity target for its indirect value chain GHG emissions (targeting a reduction of 28% per tonne of product produced by 2030), to an absolute reduction target. The exact target is being finalised and will be proposed for validation with the SBTi next year.
DSM was one of the first companies to have science-based targets that are independently validated and to tie them to executive remuneration, the company said.
Geraldine Matchett and Dimitri de Vreeze Co-chief executive officers of Royal DSM, said: "The ramifications of climate inaction have been inescapable again in recent weeks. People around the world are suffering already, reaffirming what we have said for many years now: Action cannot wait as no company can be successful in a world that fails.
"As a purpose-led company, we aim to drive sustainable growth and so routinely evaluate what we can do to go further and faster on our route to net-zero. Today's significant step-up in our targets is another proof-point of our progress and commitment, as well as a rallying cry to everyone to continue striving to deliver on the Paris Agreement."
DSM's sustainability actions are not limited to its own footprint. The company invests hundreds of millions of euros each year into science and innovation with the aim of having a positive impact on the health of people and the planet.
Ground-breaking developments such as Bovaer®, which can radically reduce the methane emitted by cattle, make a difference across value chains, DSM highlighted.
To support the steering of the company's product portfolio and help its customers to deliver more sustainable and healthy solutions, DSM has established a new methodology which will allow for greater comparability, support reporting against new and future requirements of regulating authorities, as well as create transparency on DSM's contribution to achieving the UN Sustainability Development Goals.
DSM's sustainability information is provided each year in its Integrated Annual Report and audited at reasonable assurance level (the highest level) by KPMG.
The company is already a CDP Climate Leader and was awarded an 'A' score for its climate change disclosure.
DSM also holds a platinum sustainability medal from EcoVadis putting the company in the top 1% of its industry.