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Improving our own carbon footprint

Managing greenhouse gas emissions and energy use

DSM actively manages its absolute GHG emissions reduction, GHG efficiency and energy efficiency. More information on our environmental performance can be found in our Integrated Annual Report 2018. As part of DSM’s strategic update in June 2018, a new target was announced of 30% absolute reduction of the company’s direct GHG emissions (Scope 1) and emissions from its purchased energy (Scope 2), by 2030, from a 2016 baseline year. Additionally, DSM has committed to reduce indirect value chain emissions (Scope 3) by 28% per ton of product produced by 2030. DSM’s targets have been validated to be aligned with the Paris climate agreement by the Science Based Targets initiative (SBTi).
Managing greenhouse gas emissions and energy use

Having a science-based targets means that DSM is doing its part in cutting emissions to the level required to keep global temperature increase below 2 degrees Celsius compared to pre-industrial temperatures as detailed in the Paris climate agreement. The level of decarbonization required is assessed against calculation methods defined by the Science Based Targets initiative (SBTi), a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF), driving ambitious corporate climate action.

Renewable energy

In support for the Sustainable Development Goal #7 (“Affordable and Clean Energy") DSM is committed to responsible, efficient use of energy. However, the company depends on the availability of renewable energy via the grid or local energy production. As local policies affect our ability to scale-up our procurement of renewable energy, DSM actively collaborates with authorities and other companies to jointly scale-up supply of renewable energy on the grid. DSM is a signatory of the Climate Group’s Renewable Energy 100 (RE100). This initiative brings together the world’s leading companies committed to sourcing 100% of electricity from renewable sources at the earliest possible opportunity. The intermediate target we set for 2025 is for 50% of our purchased electricity to be obtained from renewable sources, towards 75% by 2030.

DSM's initiatives for on-site renewable energy generation are at both a regional and local level:

DSM operates on 100% renewable purchased electricity in the Netherlands

DSM operates on 100% renewable purchased electricity in the Netherlands

In June 2018 DSM announced that from 2018 all its purchased electricity in the Netherlands will come from renewable sources, thanks to an agreement with Dutch energy supplier Eneco. With this milestone, DSM is positioned to outpace its global target for 2025.

DSM's solar field in Kingstree (SC), US

Kingstree, US facility opens solar field

In April 2018 DSM's facility in Kingstree (SC), US opened a new solar field consisting of 4,256 solar panels from our strategic partner ET Solar and coated with our own anti-reflective coating for the solar glass that increases efficiency by up to 3%. This technology is already in use at DSM’s solar fields operating in Belvidere, NJ and Pune, India.

Windpark Krammer, the Netherlands

Power Purchase Agreements (PPAs) with wind projects

AkzoNobel, DSM, Google and Philips have joined forces in a unique long-term renewable energy commitment in the Netherlands. To date the consortium has signed two Power Purchase Agreements, one in October 2016 for the 102 MW Windpark Krammer project and the second in December 2016 for the 34 MW Windpark Bouwdokken project. These deals are among the earliest examples of aggregated corporate demand successfully transacting in clean energy markets and are showcased in a study published by the Rocky Mountain Institute’s (RMI’s) Business Renewables Center in December 2017.

40% renewable electricity in the U.S.

40% renewable electricity in the U.S.

In November 2017 DSM announced it will operate on 40% renewable electricity in the U.S. thanks to a new wind power agreement with NextEra Energy Resources. DSM has agreed to source a total of 128,000 MW-hours a year from a new wind farm expected to be commissioned in 2019 in Minco, Oklahoma. DSM’s contracted offtake represents approximately 13% of its annual electricity purchased globally and means the company is positioned to outpace its global target of 50% purchased electricity from renewable sources by 2025.

Solar Technologies Demonstration Center, Pune, India, photo ©Ipshita Maitra

High Performance Plastics plants in the Netherlands and India

In October 2017 DSM announced significant progress in powering its Engineering Plastics plants in the Netherlands and India with purchased electricity produced from renewable sources. DSM’s Stanyl® plant in Geleen (NL) obtains almost 85% of its purchased electricity from renewables, whilst our site in Pune (IN) now meets 50% of its total electricity requirements from renewable sources, half of which comes from DSM’s own on-site Solar Technologies Demonstration Center, while the other half derives from wind turbines.

DSM's plant in Belvidere (NJ), US

Belvidere, United States

In December 2014 DSM announced the opening of a solar field at our plant in Belvidere (NJ), United States. The solar field not only stands as a symbol of DSM’s commitment to sustainable manufacturing in the United States, but also produces approximately 30-40% of the Belvidere plant’s electricity needs at peak production.

Internal carbon price

At DSM, using an internal carbon price incorporates the cost of GHG emissions decision-making processes requiring significant capital expenditure. In the current period of first implementation, €50 per ton CO2 equivalents is applied. The number of companies that are applying an internal carbon price is growing. It serves as a useful model for redirecting and scaling up investments towards low-carbon technologies, driving operational efficiencies, especially in markets with a carbon price or in regions where a carbon price is expected to emerge.

To voice DSM’s support for global carbon pricing, DSM has joined the “Carbon Pricing Champions” of the United Nations Caring for Climate initiative and our CEO, Feike Sijbesma, is Chair of a High-Level Leadership Forum on Carbon Pricing and Competitiveness supported by the Carbon Pricing Leadership Coalition (CPLC), of which he is the former founding Co-Chair.