Integrated Annual Report 2024

Nature provides critical ecosystem services such as water and biodiversity, essential for producing the ingredients we need today and tomorrow. Nature is also a permanent source of innovation, input, and inspiration for our scientific and creative thinking.

Biodiversity, or the variety of all living things on our planet, has been declining at an alarming rate in recent years, mainly due to human influences such as changes in land use, pollution, and anthropogenic climate change. Additionally, according to the United Nations (UN), global freshwater demand is predicted to exceed supply by 40% by 2030.

We believe we can contribute to the protection and restoration of nature by acting on water, biodiversity, and forests through our products, in and around our operations, and in our value chains. Climate and nature are deeply interconnected, and we increasingly address them in an integrated manner, as discussed in Climate. Nature plays a crucial role in tackling climate change: it absorbs carbon, regulates natural processes, and helps us adapt. Addressing climate change depends directly on protecting and increasing biodiversity.

Building an enabling environment

In 2024, we signed the Business for Nature (BfN) COP16 Business Statement to urge governments to immediately strengthen the policies, incentives, and legislation that will drive the business actions necessary to halt and reverse nature loss by 2030.

BfN is a global coalition of influential partner organizations and leading companies. Its purpose is to drive credible business action and policy ambition with the object of achieving a nature-positive economy for all by 2030. We have been engaged with BfN since 2020 in the context of COP15 in Montreal (Canada).

Supporting services

Underpinning all ecosystem services; without these foundational services ecosystems could not be sustained. Examples are photosynthesis, soil formation and nutrient and water cycling, but also habitat provision for a range of species.

Regulating services

These moderate natural processes to maintain ecosystem balance, health, and resilience. Examples are pollination, erosion and flood control, carbon storage, and water purification.

Nature provides critical ecosystem services (graphic)

Provisioning services

These are tangible resources or goods obtained from ecosystems. Examples are ood, fresh water, medicines, and raw materials.

Cultural services

These provide non-material benefits from ecosystems that enhance the quality of life and human experience. Examples are recreation and tourism, cultural identity, spiritual and religious value as well as educational, and scientific value.

In October 2024, we were represented at COP16, the 16th meeting of the Conference of the Parties to the UN Convention on Biological Diversity, held in Cali (Colombia).

COP16 was the first Biodiversity COP since the adoption of the Kunming-Montreal Global Biodiversity Framework (GBF) in Montreal in 2022. COP16 underscored the urgent need for collective action at speed and scale in support of nature-positive outcomes. It also marked a significant moment recognizing the synergies between climate and nature.

To ensure our work on nature is in line with the evolving landscape of nature-related roadmaps, frameworks and metrics, we closely follow the work of the Taskforce of Nature-related Financial Disclosures and Science Based Targets for Nature as well as developments on the part of organizations such as the Nature Positive Initiative and the It’s Now for Nature campaign by BfN. We are also an active member of the World Business Council for Sustainable Development (WBCSD) and have been an endorser of the CEO Water Mandate since 2009.

In our own operations

Whether in our manufacturing or premix sites, we focus on water stewardship, resource efficiency, and any biodiversity areas that are at risk near to our operations. We deploy a risk-based approach, using tools such as the Worldwide Fund for Nature (WWF) Water & Biodiversity Risk Filter and the World Resource Institute Aqueduct tool to design actions to protect and then restore nature.

Water stewardship

Climate change is altering weather patterns and compromising water security around the world, causing shortages and droughts in some areas and floods in others. The availability of water is a widespread problem, with the WWF estimating that two-thirds of the world’s population may face water shortages by 2025.

At dsm-firmenich, we also depend on access to water and strive to strengthen our water stewardship in the areas in which we operate. Our direct dependency is related to our withdrawal of water for our processes and our responsibility regarding the quality of the discharged water (for more information on water, see the Sustainability Statements).

Biodiversity management

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Faced with the alarming pace of degradation of vital natural environments, we have an important role to play in biodiversity protection, as well as biodiversity conservation and restoration, especially in areas where we operate directly.

The status of our biodiversity restoration projects

The status of our biodiversity restoration projects (graphic)

Although our manufacturing sites are mainly located in already industrialized areas, some of these may be close to high-risk or protected areas, which we have identified using the WWF Water & Biodiversity Risk Filter methodology. As an initial step, we are currently engaged in seven restoration projects at or around our operational sites that are located close to high risk or protected areas.

dsm-firmenich Indonesia, in collaboration with the NGO Mangrove, Jakarta.id and university students planted 500 Rhizophora mangrove seedlings in the Mangrove Conservation Area of Pantai Indah Kapuk (PIK), Jakarta. The Mangrove Conservation Forest at PIK is a vital green space, serving as a crucial oxygen source and an effective CO2 absorber amidst the city’s concrete jungle.

Representatives from all departments participate, contributing to the enhancement of this important ecosystem. In addition to the planting activities, participants received valuable education on the importance of mangroves and their benefits, delivered by the Mangrove Ambassador of Indonesia. The growth of these newly planted mangroves will be closely monitored, reflecting dsm-firmenich Indonesia’s commitment to environmental sustainability and the preservation of critical green spaces in urban areas.

As part of our restoration efforts in India, we launched biodiversity initiatives near our plants in Dahej and Daman. These projects aim to transform degraded land into thriving pocket forests using the Miyawaki method, which creates dense, self-sustaining ecosystems through the planting of a diverse mix of native trees, shrubs, and grasses.

By introducing tens of thousands of plants, these pocket forests address critical environmental challenges such as biodiversity loss, soil erosion, and rising carbon dioxide levels. Beyond their ecological benefits, these spaces also serve as valuable educational tools for local communities, raising awareness of sustainable practices.

Our site in Port Newark (New Jersey, USA) is dedicated to the ongoing restoration of a Conservation Management Area (CMA). The CMA, covering more than three acres, has been progressively transformed since 2016 from a patch of cut grass surrounding two retention impoundments and overrun with invasives into a thriving native meadow and estuary marsh, with diverse flora and fauna.

In October, dsm-firmenich Newark held its annual Newark Community Day, dedicated to the ongoing restoration of the CMA, which showcases our commitment to environmental stewardship and community engagement.

Since 2017, the CMA has been monitored and managed with the help of the annual Community Day, bringing together dsm-firmenich employees and fostering a sense of ownership and collaboration. Employees participated in activities such as planting native perennials and shrubs, assembling floating wetlands, and mulching trails, while positively deepening their understanding of ecology.

The success of the CMA project reflects our dedication to sustainability and environmental responsibility, demonstrating how corporate initiatives can positively impact both the environment and local communities, even in heavily human-impacted land such as Port Newark, New Jersey.

Resource efficiency

Resource efficiency is a critical lever for securing the sustained supply and use of raw materials, water access, and waste management. We strictly manage our hazardous and process waste to protect nature by minimizing negative impacts on human health and the environment.

Our sites are required to implement a management system to ensure compliance with all local regulations, and where possible, exceed them. Waste management is one of the first steps in increasing resource efficiency processes: such waste can also be valorized as starter for other industrial processes.

In our value chain

Our procurement

We recognize the importance of sourcing practices for raw materials that are highly dependent on biodiversity and natural resources. Through responsible sourcing, we strengthen and promote the protection and restoration of nature together with our growers at source. This includes efforts such as those outlined in our Responsible Sourcing standard.

The Union for Ethical Biotrade (UEBT) has been our partner since 2013, supporting us in our work on the sourcing of natural ingredients. UEBT is a non-profit association that promotes sourcing with respect. It works to regenerate nature and secure a better future for people through the ethical sourcing of ingredients from biodiversity. This membership will continue to support our commitment to protect and restore nature.

With regard to the EU Deforestation Regulation (EUDR), we are working to reach compliance with the regulation.

In 2024, our EUDR project team worked on a refined impact assessment to characterize and quantify our exposure and to determine the design of our EUDR compliance business process. Besides this, we worked closely with our suppliers to develop an aligned understanding of the requirements outlined by the EUDR. This involved engaging with our clients as to the impact of the EUDR on our sourcing policy and commercial portfolio.

More information about our current progress regarding responsible sourcing and nature as part of our procurement decision-making is provided in the Supplier engagement section.

In our products

Nature plays a key role in providing us with the inspiration for the development of new products as well as the resources necessary to produce our products. In this field of activity, we act to protect and restore Nature in the following ways:

  • Sustainability is at the heart of our innovations. Supported by our dedicated Life Cycle Assessment (LCA) team, we monitor over a wide range of sustainability metrics, including land use change and land use data. Read more in Perfumery & Beauty
  • We increasingly use ‘upcycled’ ingredients obtained from the valorization of leftovers from raw materials and by-products or waste. Our naturome fruit ingredients are the by-products of fresh fruit puree production, performed by our longstanding Naturals Together™ partner Trade Solutions. Read more in Taste, Texture & Health
  • The environmental footprint and other sustainability features of our solutions are transparently communicated with customers through our Sustainability Imp’ACT Card™ which are now available for all our core straight ingredients. Read more in Health, Nutrition & Care
  • We are continually working with our customers and partners in the value chain to improve the efficiency and sustainability of animal protein production through the application of precision nutrition. Read more in Animal Nutrition & Health

ESRS

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Health, Nutrition & Care:
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Animal Health & Nutrition:
Boosting cattle farming in Brazil using precision nutrition

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Responsible sourcing:
Making a positive impact in Madagascar's value chains

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