DSM Joins American Business Leaders in Making Climate Change Commitments and Urging Governments to Take Strong Steps in Paris Talks
Today, Royal DSM joined President Obama and 80 of the largest companies in the nation at the White House to take the American Business Act on Climate Pledge. Through company-specific pledges, these companies underscored their combined dedication to a low-carbon, renewable energy, sustainable future in the lead up to global climate negotiations in Paris in December.
DSM is a global Life Sciences and Materials Sciences leader that believes effectively tackling climate change is not just a corporate responsibility but also a business opportunity. Accelerating the transition to a low-carbon economy will produce multiple benefits including sustainable economic growth, improved public health, resilience to natural disasters, and the preservation and protection of the global environment.
"We've spent the last decade transforming our company into a global leader in moving to a low carbon, circular economy, using our bright science to create brighter living for people today and generations to come," said DSM North America President Hugh Welsh, who represented the company at the White House. "We are proud to join this group of iconic American companies in a collective effort to tackle climate change, and to urge a strong outcome at the climate negotiations in Paris."
To do its part in the fight against climate change, DSM has made the following pledges:
Move global operations to 100% renewable electricity—50% by 2025
Maintain an internal carbon price of €50/ton for investment decisions
Reduce greenhouse gas emissions by at least 25% by 2025 against a 2014 baseline
Tie executive compensation to meeting sustainability targets
DSM is unique as a publicly traded company as it ties up to 50% of its variable executive compensation to achievement of sustainability goals. DSM is internationally recognized for its early adoption of integrated annual reporting, which includes its financial results alongside its sustainability results. This has translated into a continuous effort to reduce DSM's own carbon footprint, enable the low-carbon economy and advocate climate action.
DSM is focused on enabling the low-carbon economy through the development of sustainable products and solutions. ECO+ solutions, products with a lower eco-footprint than competing alternatives, account for 95% of DSM's innovation pipeline and more than half of DSM's running business.
The company is also engaged in innovative research to reduce carbon, exemplified by DSM's Clean Cow initiative. This promising new product aims to reduce bovine methane emissions by up to 30%. DSM has also developed a cutting-edge, anti-reflective coating for solar glass that increases efficiency by up to 4%. This technology is already in use in DSM's operating solar fields in Belvidere, New Jersey and Pune, India.
"It is cliché to use the expression lead, follow or get out of the way; but it is appropriate here," said Welsh. "DSM and our global business peers will continue to lead from the White House today through Paris in December and beyond."
The 68 companies taking the pledge today joined Alcoa, Apple, Bank of America, Berkshire Hathaway Energy, Cargill, Coca-Cola, General Motors, Goldman Sachs, Google, Microsoft, PepsiCo, UPS, and Walmart which took the American Business Act on Climate Pledge in July. This broad participation shows illustrates how the private sector is committed to stepping up and doing its part in taking on this global challenge.
"Large multinational companies can be a powerful voice for change themselves; collectively they can change the world," added Welsh.
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