Dutch chemical firm DSM has been much in my sphere lately. In this week’s issue, I write about the firm’s engineering plastics, which were designed for recyclability and do not contain halogenated compounds.
When I’m not writing about earth-friendly technology, I cover the more day-to-day side of the chemical business by writing about company earnings. This week I am reviewing earnings results from European chemical firms and I note that DSM touts its sustainability efforts in its quarterly report. Most chemical firms relegate this information to their annual report, or to a separate yearly sustainability report.
DSM reported on the number of products in its pipeline that meet its own criteria for better environmental profiles (they call them ECO+ solutions). Apparently the pipeline is chock full of ECO+; 87% meet that benchmark. It reported on the ECO+ proportion of current products (40%) as well as progress toward energy efficiency goals. DSM has targeted a 20% improvement in 2020 compared to 2008.
The wording of the report indicates that these measures are updated at least twice per year. Usually, earnings reports are intended to inform investors of the financial results of a firm over a short period of time. Sustainability efforts, of course, tend to take a longer-term view.
I wonder what credit investors give DSM for claiming this eco-niche and for the transparency of semi-annual updates. We should remember that the reports have other audiences in addition to investors – stock analysts, regulators, members of the communities where a firm operates, and employees. Oh, I forgot the media. That’s another one.
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