Applying social metrics to product evaluationSeptember 28, 2012

Market Trend – a demand for transparency

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The Triple P Approach (aka the triple bottom line)

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Planet People

Profit

PlanetPeople

Profit

Planet People

Profit

1980’s to mid 1990’s late1990’s 2000’s, balance?

Environmental product evaluation

• Consensus on LCA methods and approaches

• Increased customer demand and familiarity w/ footprints

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• Acknowledgement that cost efficiencies and reduced environmental impacts are achievable

DSM: Bright Science, Brighter Living

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“We can not be successful in a society that fails.”

Feike Sijbesma, CEO

Social impacts: a driver for innovation and growth

How can a business create profitability while reducing its environmental impact and increase the quality of life for people involved in making and consuming the company’s products?

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Find the balance

Developing the approach

Get Acquainted Road-test Gain

Cooperation Standardize

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Keep it simple!

What makes the social metrics approach unique?

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Along the Lifecycle

Supply Chain

Value Chain

Addresses Employees, Communities, Consumers

+

-

Both + and – ImpactsAllows for Improvement

Includes the Value Chain

Defining social stakeholders, themes & aspectsStakeholder Group Themes Aspects

Employees Working Conditions

Healthy and safe working conditionsRemunerationPrevention of underage workers

Local Communities Community Development

Healthy and safe living conditionsLocal employment Provision of education

Consumers Health and Well-being

Health condition Comfort

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Creating business value

• Prerequisites: compliance with company values and international standards and internal coordination is essential for acceptance

• Increases visibility into the supply chain• Helps companies identify and manage potential risks• Creates new opportunities for innovation and value

propositions• Allows for enhanced sustainability communication to

stakeholders

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Environmental or financial or social indicators?

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Planet People

Profit

Not a trade-off

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Planet People

Profit

PRé and DSM’s social roundtable efforts

• Conceived in early 2011 (PRé and several industry members)• Proposes a common approach for measuring and assessing

the social impacts of products from a life cycle approach• Creates a platform for shared learnings• Three primary aspects

– Harmonization of approaches– Dissemination– Collaboration Harmonize Inspire

Engage other

companies

Scan other initiatives

Start mapping common

model and method

Influence other

companies

Influence major

initiatives

PRé and DSMPRé provides organizations with methods, tools and support to measure and improve sustainability from a life cycle perspective.

• In more than 21 countries• Serving more than 2,500 clients• Client industries ranging from chemicals to retail to food & agriculture

DSM provides nutritional and pharmaceutical ingredients and performance materials to B2B customers worldwide.

• Global company, employing 22,000 people. AR 9 bio eur. Headquarters in The Netherlands• Recognized as one of the industry leaders by SAM (DJSI)• Mission: Bright Science. Brighter Living

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NameJob Title| <lastname>@pre-sustainability.com

J. Renée MorinPré North AmericaPresident, morin@pre-sustainability.com

Jacobine J. Das Gupta – MannakRoyal DSM The NetherlandsCorporate Sustainability Manager, jacobine.dasgupta@dsm.com