DSM: Turbocharging Sustainable Resins (A)

DSM (A) and (B) tell the remarkable story of how Helen Mets, EVP of DSM's Resins & Functional Materials business (DRF), generated considerable value for DSM by pursuing a radical sustainability strategy, steering DRF to a 12.4x multiple when it was sold to Covestro. DSM (A) discusses DSM's path to greater sustainability, highlighting the environmental issues caused by the chemical industry and, in particular, its impact on the environment with chemicals of concern, GHG emissions, and waste. It describes how Mets set DRF on a visionary pathway to sustainability with a new strategy and roadmap and the steps she took to achieve this, including changing the culture and mindset within the organisation and identifying maverick thinkers such as Sjoerd Dijkstra, who did much of the work on chemicals of concern identification and building the roadmap. Case (A) closes with Met's dramatic step of announcing the new strategy in public at the European Coatings Show. Had Mets gone too far in making the announcement public? Could DRF live up to its promises? How would the industry respond? DSM (B) picks up immediately with Mets leaving the stage having made the announcement in April 2019. Mets continued to pursue the strategy on returning to the Netherlands. A few months later, Covestro, a competitor and customer of DRF approached DSM to acquire DRF. We learn that Covestro was particularly interested due to DRF's focus on sustainability and that the acquisition price was much more than if DSM had tried to sell DRF prior to its sustainability strategy.