DSM

Grade Summary

Last year’s winner, DSM, produces eleven hazardous chemicals, one of which is persistent. On a positive note, 77 percent of the company’s production takes place in the EU and/or the US, where legal requirements for transparency is high.…

DSM produces/uses 11 highly hazardous substances – 10 SIN List chemicals, 2 PICs, and 2 HHPs – 3 of which are included on the EU’s REACH Candidate List. None of these highly hazardous substances are either banned or severely restricted (no Authorisation List substances, and no POPs). The company produces 1 persistent chemical. Persistent chemicals are particularly problematic, since they do not break down, but instead accumulate in humans and the environment. Because of this, persistent chemicals should be of extra concern for investors; substances that are not considered a problem today could become huge liabilities in the future.

Please note that there is no available data for the 33 percent of the company’s production that takes place outside of the EU and US. Lower EU/US production means higher uncertainty with regard to the total production of hazardous chemicals, which will have a negative impact on the company’s score in this category.

DSM has a method in place to screen and assess the sustainability of its products and includes the intrinsic hazards of ingredients in the screening process. It does not, however, exclude substances with toxic properties from its new products. DSM actively markets safer alternatives both on its own website as well as on ChemSec Marketplace. The company has at least one true circular product, process or innovation. DSM uses biobased resources without occupying extra land or competing with food production. It also sources and treats recycled materials in a sustainable way, which is one of the key elements of a circular economy. DSM is actively reducing the hazardous waste it generates.

The Dutch company does not produce only sustainable products, but it does have a timed phase-out strategy for hazardous substances that go beyond regulatory compliance. It shares chemical safety information on its website and is following a credible code of conduct standard. DSM responded to ChemSec’s attempts to communicate around its ChemScore ranking. However, the company does not share any information about what kind of chemicals it produces in regions with low regulatory demands for transparency (e.g. Asia). DSM does have a circular economy program in place, and it has objective and measurable circular economy targets.