Creating our new organization

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Reporting period

The Sustainability section includes information from the combined entity for 12 months (DSM and Firmenich are reported as of 1 January 2023). The sustainability data in this Report cover all entities that belong to the scope of the Consolidated financial statements. If this is not the case this is mentioned specifically. As this is the first year of reporting for dsm-firmenich, no comparative data is available for 2022. For more information, see Sustainability statements.

The principles of our new operating model

With the design of the operating model framework for dsm-firmenich, we set the fundamental principles on how the different parts of our organization work together and deliver value, to achieve our vision of being the leading co-creation and innovation partner in nutrition, health, and beauty. We are structured into four complementary Business Units – Perfumery & Beauty (P&B), Taste, Texture & Health (TTH), Health, Nutrition & Care (HNC) and Animal Nutrition & Health (ANH) – and Group Business Partners such as Science & Research, Finance, Human Resources, Digital & Tech, Communications and are applying the following principles to our operating model.

We operate as one group, united by a common purpose & values. We drive group priorities, strategy and standards across the company and ensure that we continue to differentiate through Science & Research as well as Sustainability.

We empower our Business Units with a high degree of autonomy to ensure agility and close customer connections in our market approach. To bring the best service to our customers, the Business Units have full accountability for their manufacturing plants and Supply Chain as well as Regulatory Services. The Business Unit innovation teams work in partnership with Group Science & Research to deliver on our ambitions in innovation. In combination with the accountability for delivery of their profit & loss (P&L) and cash generation, they will be able to make choices faster, play into customer needs and deliver customized services.

Our Business Partners enable Excellence & Efficiency, by partnering with the Group and the Business Units, helping them to deliver on their ambitions, serve their customers. In addition, the Business Partners will drive Excellence with shared centers of expertise, to bring differentiated capabilities to our company. They will also drive Efficiencies by creating economies of scale.

Transforming principles into organizational designs

We made progress at pace to translate the operating model principles into how our Business Units and Business Partners are structured and how they operate, ensuring transversal alignment across the company. By the end of 2023, the implementation of most of the new organizational structures and operating models were completed. In the spirit of being a force for good and ensuring fairness and equal treatment of candidates from both legacy companies, we followed a fully transparent selection process for the placement of our employees into new positions. Employee representation bodies and the relevant works councils were consulted as part of the redesign process.


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