DSM Science-based reduction targets for emissions
The new targets have been reviewed and approved by the Science Based Targets initiative and aligned with the Paris climate agreement. DSM is the first European company in its sector to join the group of almost 180 leading companies with validated science-based targets.
DSM has committed to reducing 30% of its greenhouse gas emissions from direct production and purchased energy in absolute terms by 2030 compared to 2016. The company will decouple emissions from its growth through energy efficiency measures and sourcing more renewable electricity. As a complementary target, the company will be purchasing 75% of electricity from renewable sources by 2030, with 41% already being renewable in 2018. On top of this, DSM applies an internal carbon price of €50 per t of CO2 to further guide its investments and operational decisions towards low carbon operations.
Additionally, as DSM’s operations only represent a small proportion of the total emissions in the value chain of its products, the company has set a new, more ambitious target to reduce indirect value chain emissions by 28% per t of product produced by 2030. Emissions reductions in the value chain will be driven particularly through DSM’s recently initiated CO2REDUCE program, focusing on encouraging and challenging suppliers to reduce their climate impact.
DSM’s targets have been assessed by the Science Based Targets initiative (SBTi) to be in line with the level of decarbonization required to keep global temperature increase below 2°C compared to pre-industrial levels. The SBTi is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF), driving ambitious corporate climate action.
Alexander Farsan, Global Lead for science-based targets at WWF, one of the Science Based Targets initiative partners, says: “We congratulate Royal DSM on setting emissions reduction targets in line with climate science. By taking this ambitious step, they are real leaders in their sector and are doing their part to align with global efforts to prevent the most dangerous effects of global warming.”
Feike Sijbesma, CEO and Chairman of the DSM Managing Board, comments: “Combating climate change is not just a responsibility but also a business opportunity for DSM. With validated science-based targets, we take a major step forward in delivering our contribution to the Paris Agreement, and invite peers and partners to follow suit.”
Jeff Turner, Vice-President Sustainability at DSM, said: “Adopting science-based targets aligned with the Paris Agreement supports us driving climate action throughout the value chain. At DSM we also enable our customers to reduce their emissions with our Brighter Living Solutions. I am proud DSM is taking proactive steps to enable the transformational change the world needs.”