Social information

Own workforce

Material impacts, risks and opportunities

Impact, risk and opportunity management

At dsm-firmenich, each Business Unit and partner organization conducts biannual reviews of material risks, reporting findings directly to the CEO. This process includes a thorough assessment of workforce-related risks and actionable mitigation plans. We monitor these initiatives through Employee Engagement surveys, using employee insights to shape future actions. More information about our actions related to the workforce can be found in the Our people section.

Policies

Our internal People Policy underscores our dedication to enhancing employee well-being, promoting equal opportunities, and fostering a respectful workplace. This policy ensures that all recruitment, placement, training, and advancement decisions are based on qualifications, skills, and experience. It is designed to support our employees’ professional growth and to maintain a fair and inclusive work environment.

Our Human Rights Policy is based on international human rights standards, including the International Bill of Human Rights and the Declaration on the Fundamental Principles and Rights at Work of the International Labour Organization (ILO). We follow the UN Guiding Principles for Business and Human Rights (UNGPs) and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct as we implement our commitments. This policy applies to everyone working for and with our company and its subsidiaries worldwide. Any human rights incidents reported via our grievance mechanism can be found in the Business Ethics’ Speaking up section. Our Code of Business Ethics contains our principles on human rights, including the prohibition on forced labor, child labor and modern slavery. More information on human rights can be found in the People – Social Impact section.

The Travel & Events Standard provides clear guidelines for business travel and events. It emphasizes safety, efficiency, and cost-effectiveness, and applies to all employees globally. The standard includes provisions for manager approval of travel plans, conscious travel choices to reduce environmental impact, and adherence to updated caps for hotels and meals. This ensures that our travel practices align with our commitment to sustainability and employee well-being.

Our DE&I Policy is central to our commitment to fostering a diverse, equitable, and inclusive workplace. It sets out the principles and requirements for creating an environment where all employees feel valued and empowered. The policy emphasizes equal access to opportunities, the celebration of authenticity, and the removal of barriers to success. It applies to all employees, including external staff and contractors, ensuring fairness and inclusivity across our organization.

Our internal DE&I Standard outlines our commitment to fostering an inclusive and equitable workplace where all individuals can thrive. It provides clear guidelines for addressing discrimination and bias, emphasizing that DE&I benefits everyone by promoting fairness and belonging. The grounds for discrimination covered include gender, gender identity, gender expression, transgender or intersex status, sexual orientation, pregnancy, age, race, ethnicity, national origin, color, religion, experience, socioeconomic status, diverse abilities, marital status, family structure, political beliefs, or any other legally protected category. The Standard defines expectations for our recruitment, compensation, performance management and development, and awareness and support tools. A detailed grievance process ensures a zero-tolerance stance on retaliation, reinforcing employee safety and support. This Standard applies to all employees, promoting fairness, impartiality, and operational excellence while building a culture in which everyone belongs.

Our Safety, Health and Environment Policy addresses the safety and health of our employees and non-employees. More information on this policy can be found in Climate change – Policies.

Lastly, the internal Delegation of Authority guidelines ensure that appropriate individuals have the necessary authority to carry out their responsibilities effectively. This program is designed to cascade authority down through the organization, ensuring that all managers and employees understand their roles and responsibilities. It supports our commitment to efficient and transparent decision-making processes.

Actions and resources

Implementation and monitoring

We have established robust procedures to implement and monitor these policies. Our Human Resources Leadership Team (HRLT) is responsible for overseeing the implementation of these policies and ensuring compliance across the organization. The Human Rights Policy is owned by Group Sustainability, which is responsible for overseeing implementation and compliance. Regular audits and reviews are conducted to assess the effectiveness of these policies and identify areas for improvement. See People – Our people for more information on actions and resources relating to our people.

Engagement with stakeholders

We actively engage with our employees and their representatives to ensure that their views and concerns are considered in the development and implementation of our policies and targets. This engagement includes regular meetings, surveys, and feedback sessions to gather input and address any issues that may arise.

Remediation and grievance mechanisms

We have established clear processes for addressing any negative impacts on our workforce and providing channels for employees to raise concerns. Our grievance mechanisms are designed to be accessible, transparent, and effective in resolving issues promptly and fairly. Information about grievance mechanisms and reporting can be found in the Speaking up section in the Business Ethics chapter.

Continuous improvement

We are committed to continuously improving our policies and practices to ensure that they remain relevant and effective in addressing the needs of our workforce. This includes regular updates to our policies based on feedback from employees, changes in regulations, and best practices in the industry.

Metrics and targets

We have set targets across multiple areas to address the relevant impacts, risks and opportunities for our workforce:

• Safety: our long-term TRIR target level is 0.20
• Gender diversity in the Global Management Team: reach 36% female or non-binary colleagues by the end of 2025
• Employee Engagement and inclusion: measure engagement scores of employees self-identifying as minorities; focus on creating a workplace where everyone feels valued and heard; annually measure our overall engagement score; drive focused action planning across our Business Units and Business Partners, report target levels for employee engagement and inclusion post factum as part of the Compensation report
• Living wage: we commit to pay a living wage to all our employees in our own operations
• Gender pay equity: we commit to deliver gender pay equity across the different levels of our workforce.

In 2024, our TRIR^[RA] was 0.24, a significant improvement versus the 2023 performance of 0.31, and on track toward our target level. Employee engagement^[RA] was 79% and inclusion was 67%. For our Global Management Team, the next measurement will be performed at the end of 2025, as per the LTI vesting period.

No employees were paid below a living wage, delivering on our commitment. On gender pay equity, the gross gender pay gap was 4.97% in favor of women. This figure does not address the different levels of our organization.

Human rights

Information on human rights incidents is reported in Speaking up in the Business Ethics section. In 2024, there were 52 alleged cases of incidents of discrimination and harassment. 28 cases of them were closed, 12 of these cases were substantiated. Additional reporting relating to human rights due diligence is published separately in our Human Rights Report.

We operate in geographies with higher risks of human rights incidents. Based on the assessment of our geographies and the SEDEX risk register, a high risk of child labor is identified in East Asia, and of compulsory labor or forced labor in East Asia, West Asia, South Asia and Southeast Asia. No severe human rights incidents or fines, sanctions or compensation relating to human rights incidents in our own workforce were reported in 2024.

Safety and health

Our ambition is to provide an injury-free, healthy and secure workplace for everyone in our company. Our health and safety management system addresses occupational safety, industrial hygiene and occupational health. It includes our Safety Standards, Occupational Health Standards and our SHE Guidelines and is anchored by our strong SHE culture. Our Life Saving Rules (LSRs) address the most significant risks that we face in our work, and have been shaped through our insights and lessons learned.

Our Health and Safety Management System covers 100% of our locations and 100% of the employees of our company, including all contractor employees (‘non-employees’).

In 2024, dsm-firmenich recorded one fatality from work-related injuries, and no fatalities from work-related ill-health. There were 87 recordable work-related accidents in 2024 (employees and non-employees), resulting in a rate of 1.24 accidents per 1 million hours worked. There were 35 work-related ill health cases (employees). In total, there were 3,789 days lost to work-related injuries (excluding the fatality) and ill-health (employees). These numbers and rates are reported according to the descriptions and definitions as described in the ESRS.

According to our internal incident reporting approach, we recorded zero health and safety fatalities. This extends a health and safety record of zero employee fatalities since 2010 and zero (employee and non-employee) fatalities since 2018. dsm-firmenich recorded one security fatality, with the loss of an employee in a security incident while commuting between two of our premises. With 85 recordable safety incidents, our total recordable incident rate (TRIR-all) was 0.24. This rate includes all recordable occupational safety incidents for employees and non-employees per 100 man days worked (equivalent to 200,000 hours). It does not include incidents related to ill-health or security injuries.

Collective bargaining agreements

Collective bargaining agreement coverage by region is based on country-level coverage as reported through our regional human resources organization. At least 43% of employees are covered by collective bargaining agreements, and a European Works Council is in place. As dsm-firmenich has no EEA countries meeting the ESRS thresholds, the total EEA percentage is reported.

Characteristics of our employees

All characteristics are reported on a (percentage of) headcount basis. Headcount reporting on our employees is also included in Note 4 Segment information to the Consolidated Financial Statements.

Temporary contracts are used within the company to backfill absences and temporary leave, cover peak workload periods, and address country-specific practices for probation periods. It also includes all students, trainees and internships.

Other indicators

Compensation-related metrics

Living wage

We care for our employees and their families by securing a decent standard of living for them. That is why we commit to pay a living wage to all our employees in our own operations.

A living wage is the wage required to purchase the goods and services needed to meet a minimum acceptable living standard for workers and their families. This includes proper access to health, food and nutrition, housing, and education. Ensuring that people earn a living wage is a critical step toward building a more equitable and inclusive society.

In 2024, we analyzed our wage levels, including all employees in the calculation who have been in active service for more than one year, with the exception of apprentices and interns.

This analysis was based on WageIndicator’s benchmark methodology as follows:

• The typical family is defined as two adults, with a number of children derived from the national fertility rate
• The employment rate is defined as one adult working full-time, while the employment rate of the other adult is derived from the national employment rate
• The lower-bound figure uses prices at the 25th percentile (where 75% of people report higher prices)
• If the WageIndicator benchmark is lower than the country’s adequate (minimum) wages, we always adopt the higher-level option as our benchmark.

Based on our assessment, no employees were paid below the benchmark level

As a next step, we want to secure the same for more people beyond our workforce, specifically focusing on the most vulnerable workers in manufacturing and agriculture. We will work with our suppliers, other businesses, governments, and NGOs to bring about change and encourage the global adoption of living wage practices.

Gender pay gap

We are committed to fostering an inclusive workplace where all employees are rewarded equitably. The gender pay gap constitutes the difference between what men typically earn overall in an organization compared to women, irrespective of their role or seniority.

Our 2024 results showed a gender pay gap of 4.97% in favor of women (i.e. the average pay level of women is 104.97% of the average pay level of men). This is mainly due to more female representation in the management levels of the organization as compared to the other more junior levels.

Pay ratio

This section provides details of the ratio of the annual total compensation for the organization’s highest-paid individual (our CEO) to the median annual total compensation for all permanent dsm-firmenich employees (excluding the highest-paid individual), hereafter referred to as ‘Annual pay ratio’.

The Annual pay ratio will be calculated as at the reference date (i.e., 31 December) of the relevant financial year. Only permanent employees of a consolidated dsm-firmenich subsidiary on the Reference date will be considered; there will be no correction for hires or terminations during the year, nor for the impact of any M&A activities.

Compensation for part-time employees is extrapolated to represent full-time equivalent figures. Currency conversion is based on the average year-end rate set by our Treasury department. The Annual pay ratio includes annual base salary (for the CEO on actual basis, for other employees as applicable on the reference date), annual cash incentives paid during the financial year, and the fair value of the at target Long-Term incentive (LTI) grant during the financial year. Finally, social security contributions (Employer part) and Employer contributions to company pension plans are considered (for the CEO on actual basis and for other employees based on a multiplier). Other benefits, fixed allowances, and perks are not included.

Given the above assumptions, the CEO’s total compensation in 2024 was EUR 5,518,160, whereas the median 2024 compensation for permanent employees was EUR 76,914. This results in an Annual pay ratio of 71.7. If the ratio were to consider average employee remuneration (EUR 100,864) rather than the median, the ratio would amount to 54.7.

It is noted that, for the calculation of the Annual pay ratio, the total compensation of the CEO is calculated based on the same assumptions as the median for all other employees was determined; the amount therefore differs from that stated in the Compensation report. The main differences concern the STI (STI paid in 2024 achieved over 2023 versus the STI accrued in 2024 in the Compensation report) and the LTI (fair value versus face value used in the Compensation report).

Any comparison over time and/or between companies should be made with great caution and restraint. Companies may use different calculation methods, and their geographical footprint may also vary significantly. The outcome of the Annual pay ratio is largely determined by the share of variable remuneration (Short- and Long-Term Incentives) in total remuneration. The proportion of variable remuneration (i.e., remuneration at risk) in total remuneration increases for higher job classes and amounts (at target) to 75% of the CEO’s total direct compensation. Additionally, remuneration structures may differ by country, and acquisitions, divestments, growth or decline in certain areas and exchange rate fluctuations will also affect the Annual pay ratio.

Workers in the value chain

Material impacts, risks and opportunities

Impacts, risks, and opportunity management

The material part of our value chain that is in scope of our disclosures for this standard is our upstream value chain.

We identify risks, impacts, and opportunities at Group level through an internal supplier risk assessment which is conducted by the Procurement Leadership Team (PLT) on an annual basis. Conducted most recently in March 2024, our risk related to workers in the value chain is that our suppliers may not comply with our Responsible Sourcing standard and all consequences thereof, i.e., human rights violations and inaccurate reporting of environmental data.

We leverage risk-screening solutions such as SEDEX, Union for Ethical BioTrade (UEBT) and other third-party sources to prioritize our suppliers based on risk exposure (country and industry risk) and mitigating actions taken against this exposure (EcoVadis ratings). Our risk analyses have identified that our exposure to human rights-related risks is most significant within the flower and spice derivatives supply chains in regions such as EMEA, South America, and Southeast Asia.

These analyses enable us to set up a prioritization plan with our Business Units to address the risks identified. Besides our continuous monitoring of supplier sustainability performance data, we use third-party live news monitoring and alert systems, as well as our own SpeakUp grievance mechanism to address immediate negative impacts in a timely manner. Our policies and frameworks have been designed to reduce negative impacts and support positive ones wherever possible.

Policies

We are committed to managing our material impacts on value chain workers and addressing related risks and opportunities. Our policies are designed to ensure the highest standards of honesty, fairness, and integrity, as outlined in our Code of Business Ethics. These policies apply universally across our company and are mandatory for all employees, ensuring compliance with relevant laws, regulations, and industry standards. Our Supplier Code and Responsible Sourcing standard set out our expectations for our direct suppliers, and we expect our suppliers to set similar standards for their respective supply chains. These documents include provisions addressing the safety of workers, human trafficking, forced labor, child labor, and adherence to ILO standards. The ultimate accountability and operational responsibility for implementing the Supplier Code and Responsible Sourcing standard lie with our Chief Procurement Officer. We emphasize responsible sourcing practices and expect our suppliers to engage in sustainability performance monitoring and continuous improvement.

Our external-facing policies are embedded by means of internal protocols governing responsible sourcing and aligned with other directives relevant to value chain workers, such as our Human Rights Policy. This document outlines our commitment to promoting decent work, respecting human rights, and supporting the safety of the communities where we operate. We follow the UN Guiding Principles for Business and Human Rights and the OECD Guidelines for Multinational Enterprises. The ultimate accountability and operational responsibility for implementing the Human Rights Policy lie with our Chief Sustainability Officer, who provides periodic updates and reports to our Executive Committee and Board of Directors. Our Group Sustainability team collaborates closely with Procurement and Human Resources to ensure alignment and effective implementation. Our policies cover all direct suppliers’ value chain workers who could be affected by material impacts identified under ESRS 2 Disclosure Requirements IRO2 and 3. We continuously assess and address any gaps in our policies to ensure comprehensive coverage and effective management of risks and impacts. We ensure adherence through regular training, internal and external audits, and a robust grievance mechanism. We monitor compliance with our Supplier Code and report any violations in our value chain. We communicate our policies to relevant individuals and entities through various channels, including flyers, newsletters, dedicated websites, social media, and face-to-face interactions. We ensure accessibility by translating policies into relevant languages and using graphic depictions where necessary.

Actions and resources

When entering into a business relationship with suppliers, we ensure that sustainability ambitions are aligned by means of a supplier self-assessment and ensure that the supplier accepts our mandatory policy documents. Continuous adherence to these policies is validated through third-party sustainability assessments. We obtain information on the perspectives of these suppliers through standard supplier management activities such as business review meetings and supplier audits. We also collect data from sustainability assessments to drive improvement discussions. In cases where the rationale is more critical – such as severe deviations uncovered by means of a due diligence field assessment or third-party alert – we may extend the engagement with our suppliers in the field to our suppliers’ suppliers (and potentially beyond), while considering their individual risks, perspectives, and impacts. Our Sustainability at Source team, part of the Group’s responsible sourcing department, is dedicated to identifying and coordinating the execution of corrective actions.

Between April 2024 and the end of the year, we trained 49% of our targeted suppliers (those with a score below 60 on the EcoVadis Labor and Human Rights pillar) by providing them an introduction to human rights and the impact on business value, the UNGP, and how to set up a Due Diligence management system. This training was developed in-house with the UNGC Switzerland and provides our suppliers with clear expectations and tools to fast-track compliance. We also ensure that suppliers have access to resources to independently improve their performance, primarily in the form of (online) educational material.

Our Sustainability at Source team plays a key role in monitoring and addressing risks within our supply chain. When a risk indicator or alert system is triggered during the screening of supplier performance, the team conducts detailed desk assessments to evaluate the situation. If necessary, this process is followed by a field assessment, which allows us to gain a deeper understanding of the operational context and stakeholders involved, as well as to verify both actual and potential adverse impacts identified in earlier assessments. Beyond implementing corrective actions, the team also drives positive changes all the way to the source.

Stakeholder engagement in field assessments

Field assessments are carried out in close consultation with a variety of stakeholders, including suppliers, their workforce, local communities, NGOs, trade unions, and local or national institutions. These stakeholders serve as credible partners and are directly involved or consulted during the field assessments to ensure a comprehensive understanding of the situation.

Identifying sensitive supply chains and defining actions

Based on the results of supplier performance reviews and risk analysis, as well as ongoing business reviews, our Sustainability at Source team identified the most sensitive supply chains in 2024. These supply chains will undergo detailed investigations to assess potential adverse effects and determine how the likelihood and impact of these effects can be minimized or remediated. In 2024, 25 field actions (due diligence field assessments, follow-up visits on action plans, projects at source such as certification preparation) were performed as per plan.

Collaborative action plans and ownership

For each issue identified, Sustainability at Source collaborates with procurement managers, Business Units, sustainability teams, and, depending on the project, with NGOs and local organizations to define clear action plans. These plans cover, among other things, target groups, resources, timelines, escalation paths (via grievance mechanisms), and ownership.

If an action plan does not sufficiently address the impacts identified, ownership of the action will remain within dsm-firmenich. In some cases, we may conduct additional site visits and due diligence to identify any new concerns and take timely action to address these. The effectiveness of these actions is monitored by means of follow-up field visits. The frequency and timing of these visits depends on the severity of the impacts and the established timelines for the corrective actions.

Grievance mechanisms and reporting

We understand the importance of reporting any violations of our Supplier Code, Responsible Sourcing standard, or external commitments. To ensure transparency and accountability, we encourage value chain workers to report any such violations through our SpeakUp grievance channel. This anonymous channel is managed by an external service provider to ensure an independent investigation process. Further information on the SpeakUp channel can be found in the Business Ethics section. Awareness of the SpeakUp channel was validated through our Join Forces event in April where we asked our partners about their familiarity with our requirements and expectations. Learn more about how we perform due diligence in our story on driving positive social impact in our pink pepper supply chains. Our full due diligence framework, which we strengthened in 2024 and was reviewed by a third party, is depicted in the image below.

The stages of the Due Diligence Framework

Jasmine production in Egypt

We conduct due diligence on our most sensitive supply chains. After identifying salient human rights (child labor and working conditions) impacts in the Egyptian jasmine supply chain, including our own supply chain, we took immediate, targeted actions.

Addressing human rights challenges requires a holistic, multi-stakeholder approach. Therefore, in 2024, we joined a coalition that includes the Fair Labor Association, the International Labour Organization, over 15 national and international producers and purchasers of jasmine products, the government of Egypt, and several local civil society organizations. Together, we work to promote child protection and decent working conditions in the jasmine sector in Egypt.

The 2024 launch of this initiative focused on addressing child labor in jasmine production, with specific field-level interventions aimed at breaking the cycle of child labor and empowering workers. The key activities, backed by strong evidence, are as follows:

• Root Cause Analysis and Gender-Sensitive Actions: analyzing gender dynamics in jasmine production to tailor interventions to the needs of men and women, particularly around access to resources and support.
• Social Support and Financial Literacy: awareness-raising sessions on children’s rights and how families can access public services. Distribution of pre-paid cards for better access to government services, alongside financial literacy training for workers and families.
• Health and Safety: over 7,500 jasmine pickers received personal protective equipment (PPE) like headlamps, waterproof boots, and aprons. The program organized 23 medical convoys and mobile clinics, providing medical services, including surgeries and health education, with over 1,000 medical exams conducted to date, primarily for women and children.
• Monitoring and Case Management: hiring 16 monitors to work with local teams, covering 21 villages and over 150 hectares, to ensure child labor does not occur. The monitors not only address cases of child labor but also facilitate community awareness sessions and collaborate with national child protection committees for remediating and rehabilitating affected children.
• Economic Empowerment: programs to promote financial education and economic empowerment for jasmine pickers and workers, with the aim of improving their overall living conditions.

Metrics and targets

We have set a clear and ambitious target to enhance human rights awareness and compliance among our suppliers. Recognizing the challenges inherent in taking the first steps toward a full appreciation of human rights obligations, we have developed a comprehensive training program aimed at supporting our suppliers on this journey. Our 2024 objective was to train 54% of our targeted suppliers (those with a score of below 60 on the Labour & Human Rights pillar in EcoVadis) who underperform on human rights, ensuring that they align with our expectations and industry standards.

This target is integral to our policy objectives of promoting fair compensation, economic resilience, and robust human rights practices within our value chain. The scope of this target includes our entire upstream value chain, covering all regions where our suppliers operate. The baseline value for this target is derived from the percentage of targeted suppliers identified in late 2023. The target period spanned 2024, with progress reviewed monthly and interim reporting to the PLT.

To define this target, we utilized methodologies based on EcoVadis assessment scores, externally validated by ISO Certifications. Our methodology for targeting and training suppliers is validated by the EcoVadis assessment, an external tool that measures supplier performance on human rights. The metric we use is the percentage of targeted suppliers trained on human rights, providing a meaningful and precise measure of our progress. Targeted suppliers are informed of, but not directly engaged in the development of, this target. This approach aligns with international human rights standards and our commitment to the UN Guiding Principles on Business and Human Rights.

We monitor our progress through regular assessments and training completions. At the time of publication, we have successfully trained 49% of our targeted suppliers. This includes suppliers who have completed an EcoVadis Academy Training or a Together for Sustainability (TfS) Academy training, those who have demonstrated a score improvement of 60 or higher during a reassessment, and those who have confirmed participation in our supplier engagement program. Monthly reviews and trend analyses help us address any significant changes in performance and ensure we remain on track to meet our goals.

Supplier training on human rights

As part of our ongoing commitment to sustainability and human rights, we are currently in the process of developing measurable outcome-oriented targets related to enhancing human rights awareness and compliance among our suppliers. We recognize the importance of having clear and measurable targets to drive progress and accountability. Therefore, we are dedicating significant resources to ensure our targets are robust, achievable, and aligned with our policy objectives. We anticipate finalizing and publicly disclosing these targets in the second half of 2025. Pending approval of our commitments, we continue to monitor adherence to our policies through our standard supplier engagement activities (see Supplier engagement).

Consumers and end-users

Material impacts, risks and opportunities

Impact, risk and opportunity management

Policies

As we have limited direct engagement with consumers and end-users, we have no specific policies relating to them. At time of publication, we have no plans to develop such policies. We engage with consumers and end-users via our customers, or through consumer studies to understand consumer trends. Our grievance mechanism, SpeakUp, is available to all stakeholders, and we encourage them to raise concerns via this channel should the need arise. More information can be found in Speaking up in the Business Ethics section. Nutrition and health are also a core part of our consumer strategy. More information can be found in the People – Nutrition and Health.

Actions and resources

One way to achieve our malnutrition impacts is through our partnerships. These partnerships are supported by in-kind, direct and indirect financial contributions of more than EUR 3 million a year. The partnerships are managed by a team within Group Sustainability in close collaboration with relevant Business Units (such as the Nutrition Improvement team within HNC) and Business Partners (such as Human Resources and Group Communications).

Information about how these partnerships take action on malnutrition impacts can be found in Nutrition and Health. Additional information on the impact of our products and solutions on consumers and end-users, via our customers, can be found in Our Businesses.

Metrics and targets

As dsm-firmenich does not directly engage with consumers and end-users, we currently do not have specific targets related to consumers and end-users. We measure certain metrics to understand the scale of our reach among consumers and end-users.

Through our Nutrition Improvement products, acting both independently and through our partnerships, we reached 620 million beneficiaries with our high-quality nutritional intervention solutions: large-scale staple food fortification, emergency and therapeutic foods and public health supplementation. For more information on our nutrition partnerships, see People – Nutrition and Health.