Reporting policy and justification of choices
Mandatory reporting requirements
The basis for our non-financial reporting is the Swiss Code of Obligations (CO). The Sustainability Report, as described in Article 964b CO, consists of all the information within the Sustainability Statements chapter.
This Report also provides relevant climate-related financial disclosures as required by the Swiss Ordinance on Climate Disclosures. This Ordinance is based on the ‘Recommendations of the Task Force on Climate-related Financial Disclosures report, version of June 2017’, and the ‘Annex Implementing the Recommendations of the Task Force on Climate-related Financial Disclosures, version of October 2021’. A mapping of the Sustainability Statements against Article 964b CO and this Ordinance is provided in the Appendix.
Our disclosures in the Sustainability Statements are reported in accordance with the European Sustainability Reporting Standards (as set out in ‘Annex 1 to the Commission Delegated Regulation (EU) 2023/2772 of July 31, 2023 supplementing Directive 2013/34/EU of the European Parliament and of the Council as regards sustainability reporting standards’) and the EU Taxonomy (as set out in ‘Regulation (EU) 2020/852 of June 18, 2020’). They are subjected to limited assurance. A number of metrics are subjected to reasonable assurance and are indicated with[RA]. The definitions, methodologies, and judgements and assumptions that support the metrics and targets reported in the Sustainability Statements are provided in the Methodologies section in the Appendix. We are actively following the discussions regarding Omnibus and the simplification of EU reporting requirements, and their implications on our reporting and approach.
Voluntary reporting requirements
Our reporting is also based on voluntary non-financial reporting guidelines.
We reported with reference to the GRI Standards for the period January 1, 2025 to December 31, 2025. A detailed overview of how we report according to the GRI Standards indicators, including a reference to relevant sections in this Report, is provided in the GRI Content Index, available on our website.
We are taking steps to incorporate the recommendations of the TNFD into our reporting approach. The TNFD framework provides voluntary guidance for assessing and disclosing nature-related dependencies, impacts, risks, and opportunities. Through this, we aim to strengthen transparency on how nature-related issues influence our business model and value chain. A table on the TNFD recommendations is provided in the Appendix.
We have also aligned our approach with the SDGs and are familiar with the opportunities and responsibilities the SDGs represent for our business. We embrace all SDGs, but have highlighted in our Value creation model those particular goals which most closely align with our business activities.
Omissions and transitional provisions
ESRS allows issuers to omit information due to intellectual property, know-how or innovation-related reasons. We have not used this option.
ESRS also contains transitional provisions relating to entity-specific disclosures, value chain information, comparative information, and phased-in Disclosure Requirements, the latter of which were extended as part of the ESRS “quick fix” Delegated Act of July 2025. dsm-firmenich has made use of transitional provisions relating to entity-specific disclosures and to phased-in Disclosure Requirements. The use of these is included in the ESRS Content Index provided in the Appendix and noted in the Metrics column of the Material topics table.
Time horizons
The time horizons used in the Sustainability Statements are:
Short term: Up to one year, consistent with the reporting period in the financial statements
Medium term: One to three years
Long term: More than three years
The medium-term and long-term time horizons have been adopted to be consistent with the time horizons that are used in the Risk Management process. The lifetime of our assets is not considered in the definitions of the time horizons due to the variability in our operational footprint.
Prior period restatements
Where changes that can affect prior‑period information have been identified, the affected comparative figures have been restated to ensure consistency and comparability of the reported information. Restatements are made based on our judgement with consideration for the materiality of the restatement. Each restatement is disclosed in the location where the corrected figure is presented, including the cause of the restatement.