Sustainability a core value for DKSH’s vision

Sustainability a core value for DKSH’s vision

At DKSH, sustainability is a core value and is integral to our business strategy. It defines our direction and accountability. It integrates business unit strategies along with functional and thematic priorities.

Kim Le Huy, head of Country Leadership, DKSH Vietnam

Our sustainability strategy is developed collaboratively. All business units and relevant functions work together to identify priorities and translate them into actionable initiatives that are implemented across our organisation. This collective approach ensures alignment, ownership, and measurable progress towards our objectives

Besides being guided by the purpose of enriching people’s lives, our ambitions will enable our people to flourish, make our value chains more sustainable, help achieve net-zero emissions, and make a positive local impact.

At the group level, we ensure consistency through robust governance, transparent monitoring, and comprehensive global reporting frameworks. At the same time, local initiatives follow global directions while being tailored to meet market-specific needs. This dual approach, global consistency with local relevance, has proven for the governance and implementation of sustainability activities.

As a bridge-builder in the supply chain connecting international companies with local markets, we integrate sustainability into our operations through practical solutions. For example, in Vietnam we implement ISO14001 for environmental management and ISO45001 for occupational health and safety.

In our delivery operations, we have replaced bubble wrap with shredded cartons made from reused boxes, and we are exploring reusable, net-based pallet wrapping solutions to enhance durability and performance. This group-wide initiatives exemplify how small, thoughtful actions can generate significant impact, aligning closely with our corporate sustainability strategy.

Innovation is the engine that turns sustainability commitments into measurable outcomes. We consistently rethink how services are delivered and how value is created, ensuring that our business model aligns with circular economy principles, digital transformation, and social responsibility.

For instance, in response to growing customer demands and our commitment to environmental stewardship, our Business Unit Performance Materials have set the target of continuously expanding our product portfolio towards sustainability. We aim to significantly increase the share of materials that contribute to sustainable development in our portfolio by 2030.

For that, Business Unit Performance Materials uses a comprehensive framework that considers multiple factors, including natural-based ingredients, upcycled or recycled materials, biodegradability, circularity, sustainably sourced ingredients such as RSPO-certified palm oil, and ingredients with certified eco-labels.

As supply chain management forms the backbone of our services, we develop solutions in logistics and operations to minimise our environmental footprint. This includes optimising transportation routes, improving energy efficiency, and transitioning to renewable energy sources.

Reflected in one of our projects, Minimum Order Values aim to reduce the number of trips needed for the same order locations by consolidating multiple orders into single truck deliveries. In 2024, our Business Unit Consumer Goods implemented the project in Australia, New Zealand, Singapore, and Vietnam.

By automating transactions and digitalising systems, we enhance efficiency and accuracy while reducing environmental impact. Examples include the mCollector credit collection tool and the mPay cash-to-digital payment tool, which streamline credit and payment processes. Digital practices are also applied across daily sales operations, including ordering and billing, further reducing paper used on site.

Our strategy comprises the aforementioned objectives. To track progress, we use scorecards that include KPIs at the group level. Specific targets have been set through 2030, covering all objectives, providing clear milestones for accountability. We underpin our ambitions with transparency and credibility. DKSH annually published its sustainability reports in accordance with GRI standards, disclosed our carbon footprint, and submitted decarbonisation targets to the Science-Based Targets initiative.

Sustainability at DKSH also extends to social impact, advancing education, health, gender equality, and fostering a diverse and inclusive workplace. In 2022, DKSH joined the UN Global Compact, committing to responsible business conduct in line with its 10 principles and actively contributing to the Sustainable Development Goals. Many of the goals are reflected in our material topics, and the priorities reflect our belief that people and communities are critical drivers of long-term progress.

VIR