MBA - OM - Session 9 - Sustainability

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 3

Sustainability has been a key pillar throughout DSM’s operation with ambitious and

burning efforts towards “A bright future for all” . The company has executed a
[1]

comprehensive sustainability strategy that is focused on delivering science-based,


sustainable, and scalable solutions that address global megatrends and the Sustainable
Development Goals to address production cost, health and welfare of employee,
stakeholders and customers as core drivers for operation.

In regards of daily business operation, DSM is concentrating their own people and
surrounding environment. They have produce the work processes and plenty of
training of Life Saving; Safety, Health & Environment policy to avoid accidents at
site. Their objective is taking care of employees’ health and wellbeing in sustainable
way such as creating optimal hybrid working condition, balancing employees’ mental
and physical wellbeing. While for enviroment, they have committed to reserving
environment with some critical operation activities including 100% electricity
purchase from renewable sources, waste/energy/natural resources (water, landfill)
efficient improvement and working with suppliers on emission reduction.

With social responsibilities, DSM not only execute their vision alone but also
corporate with their stakeholder organizations to shape the sustainability agenda
which includes multiple parties from United Nations, to government, NGOs, academia
and other private company focusing on various aspects such as social and
environmental return, increasing awareness of safety and benefit of specialty feed
ingredients, sutainable capital market, gender equality,v.v. With customer, DSM have
worked every day with them to gain understandings so that DSM can create the values
in developing the products, disclosure of sustainability declaration. To bring the
thoughts into actions, DSM have stated some prominent goals and execution plans
with each of their stakeholders
- Greate taste, less salt: in partnership with Unilever to replace 25% salt content
in soup and make food tastes good while benefiting health for customers
- Combating malnutrition: be a long term strategic partner with UN World Food
Programme in micronutrition powder and supplements
- Measuring milk with Nestle: cooperate with Nestlate to measure the impacts
of fortifed milk to develop sustainable products and integration of
sustainability into innovation and communication

Toghether with trustworthy stakeholders, to express the commitment in operation to


sustainbility, DSM has aligned their business strategy with the United Nations’
Sustainable Development Goals (SDGs). While supporting and largely contributing to
all 17 goals, the company has identified five core key SDGs that they aim to achieve
under three core philosophies.

“Vision for nutrition”

· SDG 2 - Zero Hunger: DSM is working towards improving nutrition for


those in need through fortified foods and micronutrients. The company also has
partnerships with the World Food Programme and Sight and Life, an independent
nutrition think-tank.
· SDG 3 - Good Health and Well-being: DSM focuses on creating health,
nutrition, biomedical, and high-performance materials aiming to improve and
increase health status in all age groups. The company’s First 1,000 Days Program
supports mother and child health, while the DSM Vitality Program promotes
employee health.

In the commitment with this philosophy, DSM are delivering 05 groups of actions to
support global community with better nutrition and less hunger.

o Enabling healthy diets for all: DSM not only provides plant and animal-based
proteins but also introduces sustainable farming methods and improves food in
Africa.
o Tackling malnutrition: As one of the world’s leading manufacturers of
vitamins, nutritional ingredients, and food fortification technologies, DSM is well-
positioned to develop and deliver better nutrition for people who are deficient in
these ingredients. DSM with their nutritional science expertise working on
nutrition improvement provides a range of nutrient-rich foods, including
micronutrient powders and fortified rice, while working with humanitarian
organizations, food companies, and social enterprises to reach broad populations at
scale.
o Sustainable proteins: DSM wants to support all forms of proteins produced with
the highest sustainable standards through sustainable proteins: from plant-based
proteins to meat, eggs and fish. DSM is committed to sustainability and working
hard to address the key challenges such as reducing the greenhouse gas emissions,
limiting nitrogen and phosphorous emissions, while keeping the highest nutritional
standards and ensuring good livelihoods.
o Taking a bite out of food waste: At DSM, resource-efficient food production,
advanced packaging technique, antioxidants are utilized at best protocol to keep
food nutritious and safe.
o Non-communicable diseases: With new breakthrough in food and beverage
study such as cholesterol - reducing oat beta-glucan, low-sugar enzyme and low-
salt yeast, DSM are providing a great help on the path to reduce Non-
communicable diseases rate (NCDs) like heart disease, stroke and cancer among
the society.

“Carving out a low-carbon future”

1. SDG 7 - Affordable and Clean Energy: DSM produces affordable, renewable


energy with yeast and enzymes for improving biomass conversion of biofuels and
biogas.
2. SDG 13 - Climate Action: DSM is advocating responsible action on climate
change with its stakeholders and is increasing the use of renewables in their energy
mix while reducing their carbon footprint in partnership with RE100.
To align with the target, DSM concentrates on gradually improving their carbon
footprint with ambitious goal to 59% absolute reduction’s Greenhouse Gas emissions
by 2030 and net-zero emissions by 2050 through using renewable energy in operation
at the global rate of 78% in 2022 and ensure all new investments by their business are
carbon neutral encouraging through €1 billion interest – linked Revolving Credit
Facility with bank partner and Internal Carbon Price mechanism. Meanwhile, DSM
also facilitates to encourage low-carbon economy thinking and living to their
customers and partners through designing and introducing new products and services
with better environmental – friendly attributes such as low methane emission cattle
feed. And to express the leading role pursuing low-carbon world, DSM takes action in
from advocating carbon pricing policies to working alongside governments, NGOs,
other private companies.

“Moving to a circular & bio-based economy”

SDG 12 - Responsible Consumption and Production: DSM is contributing to the


progress of reducing food waste through expanding food usage expiry with new
packaging solution. Additionally, DSM targets to minimize the use of raw materials
by implementing a circular economy approach.

Keeping this in mind, DSM focuses on tackling the waste problems through managing
resource usage more efficiently with more efficient production and new inventions
while heading towards process-related waste recycle which is recorded at 91% in 2022
and minimizing landfill status. For water ingredient, DSM applies the best practices
and techniques to reduce and recycle water amount needed such as modernizing the
cooling systems; re-using steam condensate from operations; and stepping up the
management of leakages. Additionally, to support the circular economy and
sustainable food systems, DSM also reduces the use of hazardous chemicals by
switching to safe alternatives throughout the whole supply chain and replaces
traditional fossil-based materials with bio-based alternatives and non-toxic raw
materials in production.

You might also like