Governance information

Business Conduct

Material impacts, risks and opportunities

Impacts

Risks and opportunities

Management

↑ An ethical company culture is the foundation of good business practices and underpins positive impacts in other areas.
↑ Good management of relationships with suppliers, including reliability of payment and the promotional of ethical practices, can improve resilience in our supply chains.
↑ Implementing relevant prevention, detection, and training programs strengthens the company’s commitment to ethical practices, enhancing its integrity and trustworthiness among stakeholders, partners, investors, and society at large. These initiatives mitigate the risk of corruption and bribery, protecting the company from potential legal, reputational, and financial repercussions
↓ As we are part of a value chain, a corruption incident within our company could have far-reaching consequences, impacting not only our company but also our related sectors, undermining trust and integrity throughout the industry
↑ Implementing a speak up platform is essential for promoting ethical behavior, enhancing trust, and protecting employees by providing a safe, confidential way to report concerns without fear of retaliation. It allows for early detection and resolution of issues, and helps meet regulatory compliance while mitigating risks

↑ By fostering an ethical company culture within dsm-firmenich, we contribute to strong stakeholder engagement, resulting in positive performance and increased company value
↑ The good reputation of the company as a trustworthy partner to its customers, suppliers, and other business stakeholders is earned by acting with integrity
↓ Any failure to comply with laws and regulations in our supply chain could lead to reputational risk and loss of business
↑ Implementing robust prevention, detection, and training programs against corruption and bribery enhances an organization’s reputation, builds trust among stakeholders, and drives legal compliance
↓ Developing and maintaining comprehensive prevention, detection, and training programs requires significant resources. If we fail to maintain these programs, this could result in lack of awareness in the areas of ethics and compliance within the company, leading to acts of corruption or bribery
↓ If we fail to manage our grievance reporting system diligently, this could lead to unchecked unethical behavior, decreased employee morale, and potential legal and reputational consequences (e.g., noncompliance with the EUWBD)

Our Code of Business Ethics, applicable for all employees, outlines what it means at dsm-firmenich to do the right thing
The dsm-firmenich Behaviors (derived from our purpose and values), used in performance development reviews of all employees
All third parties who do business with or on behalf of dsm-firmenich are expected to follow the dsm-firmenich Supplier Code, our Responsible Sourcing standard, and all relevant laws and regulations
Relationship management, see Supplier engagement and Workers in the value chain
Our Code of Business Ethics, Supplier Code, Policy/Standard on Anti-Bribery and Corruption, and Due Diligence Framework for suppliers
Global Mandatory training on bribery and corruption and on the Code of Business Ethics to raise awareness on business ethics
Our speak up platform is available to anyone with grievances, and facilitates anonymous reporting if desired

↑	positive impact on environment/society or on dsm-firmenich
↓	negative impact on environment/society or on dsm-firmenich

Impact, risk, and opportunity management

Policies

We are committed to maintaining the highest standards of business conduct and ethics. Our Code of Business Ethics serves as a comprehensive guide for all employees, emphasizing the importance of honesty, fairness, and integrity in all our operations. To further reinforce our commitment to ethical practices, we have implemented a robust Group Policy on Anti-Bribery and Corruption . This underscores our zero-tolerance approach to bribery and corruption, ensuring all business activities are conducted transparently and ethically. We also prioritize open communication and accountability through our SpeakUp platform, which allows users to report any concerns or suspected misconduct confidentially and without fear of retaliation. It is an essential tool in fostering a culture of transparency and integrity within our organization.

Our Group Policy is further developed by specific Group Standards. Our internal Group Standard on Donations & Sponsorships ensures that all donations and sponsorships align with our ethical standards and business objectives. This standard mandates that all donations and sponsorships should be conducted transparently and should not create any conflicts of interest or the appearance of improper influence. Any endorsement, financial support, or donation by or on behalf of the company to any political party, candidate, or religious organization is strictly prohibited. We respect our employees’ right to engage in the political process, but only on a private basis.

Together, these policies and platforms form the cornerstone of our commitment to ethical business conduct, ensuring that we operate with integrity and accountability in all our endeavors. Information on our relationships with suppliers can be found in Stakeholder engagement – Supplier Engagement and information on corruption and bribery can be found in Business Ethics – Identifying and managing bribery and corruption risks.

Metrics and targets

Incidents of corruption and bribery

Information on incidents of corruption and bribery can be found in Business Ethics – SpeakUp reports. No convictions or fines relating to anti-corruption and bribery laws have been reported.

Political influence and lobbying

Our Code of Business Ethics states that “we do not publicly endorse, financially support, or donate to any political party, candidate or any religious organizations.” As such, the total monetary or in-kind political contributions, made directly and indirectly, is zero. Our company is registered in the EU Transparency Register with REG Number 73926352722-07.

Business Conduct – Payment practices
Priority areas for advocacy		Main positions
The role of vitamins in food and nutrition security		Raise awareness about the EU’s and US’s vitamin dependencies and call for action to ensure resilient supply of these vital ingredients for both animal and human nutrition.
Regulatory framework on ingredients and raw materials		Raise awareness about the importance of food, feed and beauty ingredients and advocate for a related science-based and proportionate regulatory framework for those ingredients within the EU.
Regulatory landscape for biotech innovations		Promote policy and legislative change to facilitate the regulatory approval and uptake of, and investment in industrial biotechnology innovation in the EU and boost the global competitiveness of the biotechnology sector.

Payment practices

We do not apply differentiated payment practices to our suppliers, nor do we have a policy specifically addressing payment practices, beyond the Contractual obligations principle in our Code of Business Ethics. Our standard payment terms are 90 days, end of month of the date of receipt of the invoice, unless stipulated otherwise on the purchase order (as stated in the general purchase conditions of dsm-firmenich). The average payment term (excluding supply chain financing agreements, see Note 21: Current liabilities for information) is under 60 days. 98% of suppliers (including supply chain financing agreements) have an average payment term within the standard payment terms. There are currently no reported legal proceedings outstanding for late payment.

Integrated Annual Report 2024