The Netherlands: Sustainability DSM Fixes Science-Based Reduction Targets for Greenhouse Gas Emissions
With this move, DSM has become the first European company in its sector to join 180 leading companies with validated science-based targets. The company plans to reduce 30 % of its greenhouse gas emissions from direct production and purchased energy in absolute terms by 2030 compared to 2016.
The Netherlands – Royal DSM has recently announced that it has set new science-based reduction targets for greenhouse gas 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.
The company 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 firm will decouple emissions from its growth through energy efficiency measures and sourcing more renewable electricity. As a complementary target, DSM will be purchasing 75 % of electricity from renewable sources by 2030, with 41 % already being renewable in 2018. On top of this, the company applies an internal carbon price of 56 dollars per tonne of CO2 to further guide its investments and operational decisions towards low carbon operations.
Additionally, as the company’s operations only represent a small proportion of the total emissions in the value chain of its products, the firm has set a new, more ambitious target to reduce indirect value chain emissions by 28 % per tonne of product produced by 2030. Emissions reductions in the value chain will be driven particularly through DSM’s recently initiated CO2reduce programme, focusing on encouraging and challenging suppliers to reduce their climate impact.
The firm’s targets have been assessed by the Science Based Targets initiative (SBTi) to be in line with the level of decarbonisation required to keep global temperature increase below 2 degrees Celsius 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.