Original post by Vikas Vij for JustMeans
Companies with foresight increasingly recognize the need to adapt to a changing world where purpose draws and motivates customers, employees and investors. Such companies are transforming their strategy and operations to replace unsustainable businesses with more sustainable ones.
DSM, a former chemical company, is enjoying rapid financial growth as it transforms itself into a ‘green’ enterprise. With its innovative and highly successful green ideas on manufacturing, DSM has now ranked number two on the Fortune ‘Change the World’ list of companies.
Ever since this Dutch nutrition and materials company began focusing its energies on developing life-changing eco-friendly options, it has seen its stock rise.
DSM began as a bulk chemistry business and has gradually branched off into more sustainable areas. Under the leadership of CEO Feike Sijbesma, it started tracking solutions for climate change and malnutrition. Sijbesma, a biologist by training, understood the need to tackle global problems while succeeding financially, and branded DSM’s playbook: “People, Planet, and Profit.”
In the midst of business challenges, DSM persevered with this playbook and did not waver from its belief in the power of business to deliver social benefit. As a result, the company has managed to change itself successfully and consistently improved its financials. In 2016, the company witnessed a jump of 604 percent in profits over the previous year.
DSM is in partnership with many like-minded organizations such as World Food Program to create a more sustainable world. The company is also currently working with Poet, a US ethanol giant, on Project Liberty which produces tanker truckloads of cellulosic ethanol every week from corn waste like cobs and husks.
DSM’s innovations sometimes outpace the world’s readiness for change. A recent example is “Clean Cow,” which is a bovine flatulence reliever to reduce greenhouse gas footprint which does not have a taker among local farmers due to increased costs.
The company, however, does not let setbacks and short-term frustrations affect its resolve. DSM is now in talks with dairy companies such as Danone to absorb the added cost for reduced gas emissions.