We think it is important for you to know how your investments are making a difference. We wanted to share a company highlight within one of the mutual funds we use for our clients.
Royal DSM is a prime example of the environmentally and socially focused companies we aim to invest in. Headquartered in the Netherlands, Koninklijke DSM (Royal DSM), is a purpose-led, science-based nutrition, health, and sustainable living company. DSM focuses on three major areas: Nutrition, Materials, and Bio-based Products & Services, all aiming to deliver sustainable value.
Royal DSM has made a particular impact on sustainable livestock, working to create a natural feed additive that reduces methane emissions. They were mentioned in this NY Times article on the topic.
Furthermore, their sustainably produced textiles include a product called Dyneema, an ultra strong synthetic rope that Robert uses on his commercial fishing vessel.
DSM puts people and the planet on par with profits. Its business strategy is based on the Sustainable Development Goals (SDGs) adopted by the United Nations, especially in combating climate change, and promoting wellbeing.
In 2018, they set a goal to reduce 30% of the company’s direct Greenhouse Gas (GHG) emissions (Scope 1) and emissions from its purchased energy (Scope 2), and decrease indirect value chain emissions (Scope 3) by 28% per ton of product produced in the same period by 2030 (compared to 2016 base).
They receive top environmental and social rankings from investment analysts MSCI and Sustainalytics. They partner with industry groups such as Carbon Pricing Leadership Coalition, Accounting for Sustainability and the Ellen Macarthur Foundation.
We are excited to share the work of companies like Royal DSM with our clients. They are a fantastic example of a company working on solutions that our economy and our world need for a sustainable future.
If you would like to dive deeper into these topics, send us a note to join our Insider Series for an in-depth quarterly SRI update.
Blue Summit does not directly invest in Royal DSM. They are a holding within the Pax Environmental Markets Fund. Some, but not all clients, are invested in this fund.