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SMCC2011_Jos van Haastrecht Presentation
1. DSM in Motion 10 May 2011 Jos van Haastrecht Director Company Branding
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4. Our purpose is to create brighter lives for people today and generations to come. We connect our unique competences in Life Sciences and Materials Sciences to create solutions that nourish, protect and improve performance. Mission Statement
7. Clear sustainability targets CEO awarded “UN Humanitarian of the Year” 20% improvement from 2008 till 2020 Energy efficiency: 25% reduction from 2008 till 2020 Greenhouse Gas emissions: towards High Performance Norm Engagement Survey: at least 80% of pipeline is ECO+ ECO+ (innovation pipeline): from ~34% towards 50% ECO+ (running business): Top ranking (“Gold”) Dow Jones Sustainability Index: Sustainability aspirations 2011 - 2015
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9. Overall Stakeholder Survey - 2009 Perception Gap defined Corporate Internally oriented Sustainable Genuine Risk averse Pragmatic Unknown or misunderstood Functional and passive Trustworthy and reliable Chemical company - diversified Technical focus Dutch Reticent Current Perception
10. Stakeholder Surveys - cntd Perception Gap defined Close the gap Maintain Raise the profile of the DSM Brand by transforming current perceptions Emotive Corporate Customer oriented; outside-in Internally oriented Sustainable solutions Sustainable Genuine Genuine Optimistic Risk averse Benefit-oriented Pragmatic Clear and engaging , open and transparent Unknown or misunderstood Dynamic, energetic and inspiring Functional and passive Trustworthy and reliable Trustworthy and reliable Life Sciences and Materials Science company Chemical company - diversified Market focus Technical focus International Dutch Confident Reticent Desired Perception Current Perception
DSM in motion: driving focused growth marks the shift from an era of intensive portfolio transformation to a strategy of maximizing sustainable and profitable growth of ‘the new DSM’. The current businesses compose the new core of DSM in Life Sciences and Materials Sciences. DSM’s focus on Life Sciences (Nutrition and Pharma) and Materials Sciences (Performance Materials and Polymer Intermediates) is fueled by three societal trends: Global Shifts, Climate and Energy and Health and Wellness. The main underlying drivers of these trends are the world’s population growth and increasing life expectancy on the one hand, and increasing economic prosperity and consumption in the high growth economies on the other. DSM aims to meet the unmet needs resulting from these societal trends with innovative and sustainable solutions. It is DSM’s ambition to fully leverage the unique opportunities in Life Sciences and Materials Sciences, using four growth drivers (High Growth Economies, Innovation, Sustainability and Acquisitions & Partnerships) and bringing all four drivers to the next level. At the same time DSM aims to make maximum use of the potential of all four growth drivers to mutually reinforce each other. The Emerging Business Areas (EBAs) provide strong, long-term growth platforms, which optimally combine the available competences in Life Sciences and Materials Sciences. DSM has formulated an ambitious growth perspective for the EBAs DSM Bio-based Products & Services, DSM Biomedical and DSM Advanced Surfaces. The focus on the EBA programs Personalized Nutrition and Specialty Packaging will be reduced and they will be partnered, exited or transferred to other parts of DSM. Regional organizations, functional excellence groups and shared services enhance the performance of the business groups which together create ‘One DSM’. DSM will capture regional business opportunities and synergies and implement excellence throughout the global organization. The culture change program that is currently in progress (focusing on external orientation, accountability for performance and inspirational leadership) will be further anchored with an emphasis on collaboration and speed of execution to support this strategy. All this is based on sustainability as DSM’s core value and its belief in diversity, including internationalization.
As part of its new strategy, DSM in motion: driving focused growth , DSM has formulated the ambition to go to the next level in sustainability: from responsibility to a business driver . DSM’s strategy is strongly connected to the company’s mission to create brighter lives for people today and for generations to come. DSM believes sustainability will be a key differentiator and value driver over the coming decades and that the company is uniquely positioned to capture new value-creating opportunities. In the field of sustainability a number of ambitious aspirations have been set. For 2011 – 2015 the following value creating performance aspirations have been defined regarding sustainability: Top ranking ('Gold') in the Dow Jones Sustainability Index. Percentage of ECO+ products in the innovation pipeline should be at least 80%. ECO+ products as percentage of running business should increase from about 34% towards 50%. Energy efficiency improvement: 20% by 2020, compared to 2008. Greenhouse-gas emissions: -25% (absolute) by 2020, compared to 2008. Engagement Survey: towards High Performance Norm. Further diversity and People aspirations will be updated in 2011.
One thing that you will be pleased to hear is that survey found that our customer relationship managmeent was considered to be very good.
As the transformation of DSM into a Life Sciences and Materials Sciences company active in health, nutrition and materials is complete, a new corporate brand is a logical step. The new DSM brand demonstrates very clearly – to customers, suppliers, shareholders, the communities in which the company works as well as to DSM employees – that DSM has turned a page. The new brand is a symbol of the company's transition to ‘the new DSM’: a Life Sciences and Materials Sciences company addressing key global societal trends. The new brand is a reflection of the overall positioning – internal and external – of the company. It stands for the newly created DSM (the Life Sciences and Materials Sciences company) and the DSM culture (adapting to the new portfolio). In addition, it represents the values and the One DSM philosophy and fits with the mission to create brighter lives for people today and generations to come.
Bright Science. Brighter Living.™ in action: Working to combat vitamin D deficiency The lack of vitamin D can lead to major health problems. Caused primarily by poor nutrition and a lack of exposure to direct sunlight, vitamin D deficiency has been linked to a variety of health problems such as osteoporosis (the softening of bones), cardiovascular disease, diabetes, asthma, hypertension and more. Staggeringly, this problem affects the vast majority of us, even if we don’t realise it. A recent National Intake Survey for Germany indicated that 91% of women and 82% of men do not attain their recommended daily intake. The problem is even more prevalent in lower income countries in Africa, Asia and Latin America where it is re-emerging as a major health problem. To better understand this vitamin and address this challenge, DSM Nutritional Products collaborated with the International Osteoporosis Foundation to create a global map of vitamin D status, and worked with other leading research organisations to initiate studies. The result was the compilation of a much clearer picture on optimal vitamin D intake levels as well as a better understanding of the link between increased vitamin D intake and calcium deposits on bones, including the resulting burden on healthcare systems. Using this research and drawing on its Life Sciences expertise, DSM Nutritional Products, the world’s largest provider of vitamins, is now leading the development and provision of Vitamin D 3 (Quali-D®) for food, beverage, and dietary supplement manufacturers. Perhaps most impressive of all, Quali-D® has been inspired by nature itself as unlike other forms of vitamin D, it is sustainably derived from lanolin taken from the wool of healthy live sheep found in Australia and New Zealand.
Bright Science. Brighter Living.™ in action: Making the transition to biomass-based production At present most of the world’s chemicals are made from fossil fuels. This is not a sustainable situation. We need to find biomass-based, sustainable alternatives to fossil fuels for the manufacture of chemicals. DSM is leading this transformation. In partnership with ROQETTE, for example, DSM has recently opened a facility in France to manufacture bio-succinic acid – a very important chemical building block – out of biomass.
Bright Science. Brighter Living.™ in action: More sustainable beer Brewing is a highly competitive and cost-sensitive business. But while all players are focusing on operational efficiencies and driving down costs, like all global businesses, outside stakeholders are taking an increasing interest in their performance in terms of environmental sustainability. But while technology has long been harnessed to cut down costs, new technology based on natural enzymes are only just beginning to be taken seriously as a way of reducing the impact that beer making has on the environment. To address this, DSM developed a revolutionary new enzyme, Brewers Clarex®. This enzyme has two key benefits: it prevents chill haze (the cloudiness that forms in beer) and reduces CO2 emissions. Without the need for expensive refrigeration and chemical stabilisation processes that are normally required to remove chill haze, Brewers Clarex® can cut brewers’ greenhouse gas emissions by up to 8%. If all the beer in the world was made using Brewers Clarex®, the GHG saving compared to traditional methods would be the equivalent to 160,000 trips around the world in an average car.
Bright Science. Brighter Living.™ in action: Enabling wind-powered shipping With a round 90% of all global trade today is transported by sea, the shipping industry is one of the world’s biggest sources of greenhouse gas emissions, accounting for a staggering 843 million tonnes of carbon dioxide emissions annually. This is greater than the total CO2 production of the United Kingdom, and just behind that of Germany. To address this challenge, and help reduce its dependence on oil, the industry has been looking for alternative, more sustainable forms of energy. One of these is wind: it’s free, doesn’t create carbon dioxide, and, although intermittent, is never going to run out. There are, however, significant drawbacks to traditional sails. They are comparatively expensive and inefficient, particularly for use with cargo ships. The solution, which resulted from a collaboration between DSM, Gleistein Ropes and SkySails, is an innovative new form of sail, a towing kite – SkySails-Systems. Flying 100-300 meters above cargo ships, SkySails-Systems are able to exploit higher wind speeds and generate between five and 25 times the amount of energy of conventional sails. Tied to the deck, SkySails-Systems don’t require a mast - which means they take up much less deck space - can be easily stowed, and can be fitted to virtually all existing cargo vessels. What’s more, they use Dyneema®, the world’s strongest fiber TM . Dyneema® is 15 times stronger than steel, lightweight, extremely flexible and highly resistant to corrosion; all of which allow the towing kite to operate under the most extreme conditions at sea. W ind power is now key to the future of shipping. SkySails-Systems towing kites can reduce CO2 emissions on cargo ships by up to 35%.
Bright Science. Brighter Living.™ in action: Capturing the power of the sun The need to transition from fossil fuel-based sources of energy production to sustainable, renewable power has become universally accepted. Solar energy systems are certain to play an increasingly central role in the energy economy of the future. As with other renewable sectors, technological innovation is key to unlocking the awesome power of the sun. Solar energy has enormous potential for reducing CO2 emissions but do so it has to become much more efficient. Inspired by the anti-reflective properties of a moth’s eye, DSM has developed a pioneering coating for solar glass that helps address this problem by allowing solar cells to capture more of the sun’s rays than ever before. This is one more innovation from DSM that is literally making the world a brighter place.
The first of the United Nations Millennium Development Goals is the eradication of extreme poverty and hunger in the world. Malnutrition undermines human potential by causing severe damage to a person's cognitive and physical development and therefore has an impact on subsequent generations. DSM wants to make a substantial contribution to this goal. As a world leader in nutrition, DSM wants to specifically address the so called 'hidden hunger' via our vast expertise in the area of micronutrients. People suffer from 'hidden hunger' when their food intake is sufficient in caloric terms, but is lacking in micronutrients that are essential for a healthy and productive life. It is a problem that affects an estimated 2 billion people across the world. DSM believes that improving nutrition is the most important factor to help children achieve their full potential and to reduce the risk of chronic diseases and thus positively impact social and economic developments. Adequate nutrition should be a human right for everybody, not only for those who can afford it. Therefore, DSM has endorsed the US ‘Roadmap to End Global Hunger’ and is committed to continuing to work in partnership with the Friends of the World Food Programme (WFP), government, trade associations, corporate stakeholders and other private sector actors to facilitate further successful public/private partnerships in finding sustainable solutions to hunger issues. Our partnership with the WFP is focused on creating sustainable development, besides offering emergency relief. This is achieved by engaging DSM and DSM employees around the world to contribute to the eradication of 'hidden hunger' by sharing and creating knowledge, offering technical and scientific assistance, supplying products and providing funds to WFP. Since 2007, 35 DSM employees have been on assignment with WFP, supporting WFP with their expertise. Corporate Social Responsibility (CSR) is one of the key drivers for employee engagement. DSM believes that by providing our employees with the opportunity to truly contribute to CSR, we not only deliver value to WFP but also facilitate a personal experience for our employees that will support their engagement with DSM.