Within the dynamic landscape of sustainable business practices, our commitment to transparency and stakeholder engagement takes center stage. At the heart of our disclosure strategy lies the Materiality Matrix, a powerful tool that not only reflects our dedication to responsible corporate governance but also serves as a compass guiding our sustainability journey. It guides us to determine our sustainability priorities, and to adjust our goals and performance indicators in line with up-to-date sustainability issues and with our stakeholders’ expectations and concerns. In addition, the consultation process is a valuable tool to engage our colleagues, customers, suppliers and investors on our sustainability journey by including them in defining its future direction.
Filter by:
Impact materiality
- Moderate
- Significant
- Major
Financial materiality
- Moderate
- High
Corporate governance, business ethics & transparency
Having clearly defined (ESG) governance structures in place that ensure oversight through the Board of Directors and adequate execution at operational level. Establishing good business conduct and integrity through the highestprofessional and ethical standards and complying with international standards to fight anti-competitive practices, i.e., fraud, corruption and bribery. It is also about acting with integrity and being transparent in all company-related activities, including reporting, non-misleading sales and marketing practices and transparent tax management.
Cybersecurity & information security
Guaranteeing that the rights to data privacy as well as the protection of the data of individuals, companies and other entities are safeguarded and access to IT systems, networks and data is assured at all times. Robust processes and systems as well as strict data handling and security practices are needed to prevent IT system failures and major information security/cybersecurity incidents, among others.
Innovation, digital & technology
Promoting innovation at dsm-firmenich and along the value chain to reduce the environmental footprint of products, increase climate resilience, optimize the use of inputs (i.e., towards more sustainable agricultural practices), contribute to sustainable and healthy solutions, improve organizational efficiency as well as enhance customer satisfaction while incorporating new technologies in an ethical and constructive manner. This topic also includes benefitting from digital tools and Artificial Intelligence to advance own operations, business models and activities across the value chain by strengthening (internal) scientific capabilities, managing innovation effectively, and promoting eco-friendly innovation.
Product quality, safety & impact
Guaranteeing the highest product quality, safety, including ingredient disclosure and certification standards. This involves controlling and minimizing all possible safety risks and adverse effects on customers, consumers, animal health, the environment and society as a whole. In detail, it involves liability, product testing, data transparency, customer support and market withdrawals. Principles of responsible and sustainable product stewardship and governance, sustainable portfolio steering, and responsible value creation can create positive impacts and competitive advantages.
Responsible & transparent sourcing
Minimizing exposure to sustainability-related risks in the supply chain and corresponding financial and reputational damages while maximizing the supply chain's reliability. Ensuring quality and traceability (i.e., of ingredients) throughout supply chains by screening, selecting, monitoring, auditing and engaging with suppliers on issues such as environmental protection, responsible raw material sourcing, business conduct and human rights.
Animal welfare
Having practices and rules in place for the consistent care, welfare, treatment and testing of research animals. This topic also covers enhancing lifetime animal performance and general animal welfare by producing high quality food for them.
Biodiversity & nature
Sustainably managing and minimizing dsm-firmenich’s impact on ecosystems and biodiversity, which includes activities such as resource use, land cultivation, deforestation and food supply chains. This topic focuses on preserving and restoring natural diversity and ecosystems in land, water and marine environments. This is essential to ensure business sustainability, particularly in perfumery, which relies on natural ingredients. Dsm-firmenich must assess and address biodiversity risks and impacts to ensure its long-term success.
Climate change adaptation
The management of physical risks associated with climate change by building an adaptive business model and capacities as well as having resilience plans in place.
Climate change mitigation
Reducing the impact on climate change by reducing pollutants, especially the greenhouse gas emissions generated directly and indirectly (Scopes 1-3) through, i.e., purchased materials, agricultural activities, transportation, energy consumption (efficiency and use of renewable energy) or travel. Setting ambitious emission reduction targets, developing a robust decarbonization program, supporting to reduce emissions along the value chain and implementing other mitigation activities additionally ensure environmental compliance and overall emission reductions to move towards net zero.
Regenerative agriculture
Addressing the issues of agricultural expansion and unsustainable farming practices by adopting sustainable and regenerative methods to cope with growing land and water scarcity and decreasing soil health in agricultural systems (i.e., more sustainable animal protein production).
Renewable raw materials
Trading off social and environmental impacts against costs is becoming more important with a strong focus on moving away from scarce raw materials to renewable, available and accessible ones.
Waste and plastics management
Minimizing waste production, designing out waste and plastics (especially single-use plastics), increasing waste reuse and recycling and managing the lifecycle impacts of dsm-firmenich’s products, including hazardous and non-hazardous waste, effluents and pollution generated by the company’s operations and manufacturing processes. Integrating circularity and next-life use principles into all aspects of business strategy from raw material/ingredient procurement, packaging and product design to go-to-market, after-sales service and end-of-life treatments to maximize and maintain the value of dsm-firmenich’s products for as long as possible.
Water management
Limiting withdrawal, consumption, use, waste-water generation and discharges in dsm-firmenich’s own operations and developing solutions to support their value chain partners in water stewardship. This topic refers to reducing the reliance on water resources and minimizing impacts of operations on water, which may be influenced by regional differences in the availability and quality of and competition for water resources (i.e., areas of high water stress).
Diversity, equity & inclusion
Promoting the values of diversity, equity and inclusion within 124sm-firmenich and beyond by guaranteeing equal treatment, equal pay for equal work and equal opportunities to all employees, indifferent of race, gender, ethnicity, religion, sexual orientation, disabilities or other personal traits. It is about building a workplace free from any form of discrimination, harassment or violence that ensures fair and transparent hiring and promotion practices and respectful interactions between employees.
Employee wellbeing
Fostering and contributing to employee health and wellbeing at work and beyond, including physical, mental, social, financial and purpose-related aspects (i.e., fulfilment). This also includes treating all employees equally, especially with regards to living wage, and respecting employee rights, conducting empowerment and engagement activities and ensuring work-life balance.
Health, nutrition, taste and food security
Contributing to nutrient sufficiency as well as the health and wellbeing of end-consumers and society as a whole by providing access to ingredients used in health-promoting beauty and wellness products as well as nutrient-dense, tasty foods. This topic also entails deploying methods and tools to conserve scarce land and water resources to ensure long-term food security. Moreover, it refers to preventing food loss and waste, through bio-protection and a focus on extending shelf life.
Occupational health & safety
Creating and maintaining a safe and healthy workplace environment that is free of injuries, fatalities, and illness (both chronic and acute). Measures to achieve this are having safety management plans in place, developing training requirements for employees and contractors, and conducting regular audits of own operations.
Partnerships & relationship management
This topic refers to a variety of stakeholders and how to engage with them, i.e., by ensuring transparent cooperation with partners and parties within the value chain, minimizing negative impacts on local communities and protecting their economic, social, cultural, civil and political rights, or addressing changes in consumer behavior, educating consumers in making the right diet choices and elevating the customer and consumer experience.
Respect of human rights
Ensuring that human rights and universal workers' rights are respected in dsm-firmenich's own operations and across its value chain, i.e., through the abolishment of human trafficking, forced or child labor and modern slavery, while guaranteeing the freedom of association, right to collective bargaining and a fair salary, among others. This is achieved by implementing strong due diligence and risk assessment processes, as well as mitigation and remediation measures where needed.
Talent attraction, development & retention
Dsm-firmenich sees people as differentiators, therefore talent attraction, development, engagement and retention are key success factors. The topic includes, but is not limited to, recruitment, career path offerings, performance and compensation management and skills and competency development. It additionally refers to strengthening employer as well as brand attractiveness through competitive wages, fringe benefits, attractive working conditions and initiatives that foster employee engagement and human capital development.
Our Materiality assessment process followed the approach described in the EU Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) and is in accordance with the GRI Standards. It applied a double materiality approach. Double materiality is composed of impact materiality (the actual and potential impacts of our company on the environment and society) and financial materiality (the material societal and environmental risks and opportunities that may affect the company). Our materiality assessment is based on materiality assessments conducted at the Business Unit level supplemented with input from the Group. Our process in 2023 employed the following steps:
Through a bottom-up approach, and the involvement of various stakeholder groups, we also identified the priority topics at Business Unit level, as well as the most important topics by stakeholder group.
Material topics |
|
P&B |
|
TTH |
|
HNC |
|
ANH |
|---|---|---|---|---|---|---|---|---|
Climate change mitigation |
|
✓ |
|
✓ |
|
✓ |
|
✓ |
Health, nutrition & taste, and food security |
|
|
|
✓ |
|
✓ |
|
✓ |
Innovation, digital & technology |
|
✓ |
|
✓ |
|
|
|
✓ |
Product quality, safety & impact |
|
✓ |
|
✓ |
|
✓ |
|
✓ |
Respect of human rights |
|
✓ |
|
|
|
|
|
|
Responsible & transparent sourcing |
|
✓ |
|
✓ |
|
✓ |
|
|
|
|
Customers |
|
Employees |
|
Investors |
|
Suppliers |
|
Public organizations1 |
||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1 |
|
Climate change mitigation |
|
Product quality, safety & impact |
|
Climate change mitigation |
|
Climate change mitigation |
|
Climate change mitigation |
||||
2 |
|
Product quality, safety & impact |
|
Health, nutritious & tasty food, and food security |
|
Corporate governance, business ethics & transparency |
|
Responsible & transparent sourcing |
|
Climate change adaptation |
||||
3 |
|
Responsible & transparent sourcing |
|
Climate change mitigation |
|
Respect of human rights |
|
Occupational health & safety |
|
Diversity, equity and inclusion |
||||
4 |
|
Health, nutritious & tasty food, and food security |
|
Climate change adaptation |
|
Product quality, safety & impact |
|
Diversity, equity and inclusion |
|
Waste and plastics management |
||||
5 |
|
Biodiversity & nature |
|
Corporate governance, business ethics & transparency |
|
Talent attraction, development & retention |
|
Corporate governance, business ethics & transparency |
|
Regenerative agriculture |
||||
|
||||||||||||||
