Dassault Systemes

RATING

SECTOR

IT Software & Services

WEBSITE

CONTACT

Europe/Middle East/Africa

Dassault Systèmes
10 rue Marcel Dassault
CS 40501
78946 Vélizy-Villacoublay Cedex – France
Frontdesk: +33 (0)1 6162 6162

STOCK EXCHANGE

LISTING

  • 2020 MSCI ESG Ratings – AA
  • Institutional Shareholder Services (ISS) ESG
  • 2020 Sustainalytics, Low ESG Risk 
  • 2019 Top 40, CAC 40 Governance Index by Euronext and Vigeo-Eiris
  • FTSE4Good Index 
  • 2020 Most Sustainable Companies in the World #22 by Forbes
  • 2019 Dassault Systèmes ranked #38 on the list of the World’s Most Sustainable Companies by Corporate Knights
  • 2019 Bernard Charlès Ranked One of the Best-Performing CEOs in the World by the Harvard Business Review. Bernard Charlès was ranked number 15 on the list of the world’s best-performing 100 CEOs
  • 2019 Fortune’s Future 50 – Dassault Systèmes was ranked #20. Bernard Charlès started as an intern at Dassault Systémes and now has an impressive 24 years of experience in his role as CEO. Bernard Charlès was ranked number 15 on the list of the world’s best-performing 100 CEOs
  • 2018 Corporate Knights ranked Dassault Systèmes #1 among the top 100 most sustainable companies in the world
  • 2016 Corporate Knights ranked Dassault Systèmes #2 in the 2016 Top 100 Most Sustainable Corporations in the World

EMPLOYEES

19,361

CHIEF SUSTAINABILITY OFFICER

Alice Steenland

AWARDS

CONTENT SOURCE

FURTHER READING

Report created by Kavita Kripalani

Dassault Systèmes

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Dassault Systèmes SA provides software solutions and consulting services. It operates through the following segments: Manufacturing Industries; Life Sciences & Healthcare; and Infrastructure & Cities. 

The Manufacturing Industries segment engages in transportation & mobility; aerospace & defense; marine & offshore; industrial equipment; high-tech; home & lifestyle; and consumer packaged goods & retail servicers. The Life Sciences & Healthcare segment engages in pharmaceuticals & biotech, medical devices & equipment, patient care services. The Infrastructure & Cities segment provides energy & materials; construction, cities and territories; and business services. 

The company was founded by Charles Edelstenne on June 9, 1981 and is headquartered in Vélizy-Villacoublay, France.

Company Sustainability Activity

Their Corporate Purpose is to provide business and people with 3DEXPERIENCE universes to imagine sustainable innovations capable of harmonizing product, nature and life.

They strongly believe that virtual universes will be a key enabler for their customers – and the world – to imagine, design, and test the radically new products, materials, and manufacturing processes of tomorrow’s sustainable economy at the fastest possible speed.

However, they know that being a leader in sustainable technology solutions also means being a sustainable technology company themselves. It’s not only about what they sell, but who they are. 

Highlights

  • Sustainability is addressed through their ability to:
    • Attract and retain talented individuals
    • Develop knowledge and know-how
    • Develop employee engagement
    • Preserve health and safety
    • Foster the development of the digital economy
    • Facilitate open innovation and collective intelligence
    • Manage their environmental impact, including greenhouse gas emissions as well as waste management and actions in favor of a circular economy.
  • To analyze its carbon footprint on a global basis, Dassault Systèmes uses the GreenHouse Gas (GHG) Protocol. This method of evaluation of greenhouse gas effects was launched in 2001 by the World Business Council for Sustainable Development (WBCSD) and the World Resource Institute (WRI). It was developed through a partnership among businesses, non-governmental organizations and governments in order to create a common framework for accounting and reporting, measurement tools and actions to resist climate change.
  • The GHG Protocol divides the operational perimeter of greenhouse gas emissions of an organization as follows:
    • Scope 1: direct emissions resulting from the combustion of fossil fuels from resources owned or controlled by the enterprise,
    • Scope 2:  indirect emissions resulting from the purchase or production of electricity,
    • Scope 3: all other indirect emissions, from the extended supply chain to transport of goods and persons

Targets

  • Over the next 2 years, Dassault will continue to work on their priority actions as defined in 2018:  
    • Development of internship pool in their main countries of operation
    • Development and enhancement of their privileged relationships with targeted higher-education establishments and universities
    • Development of synergies and joint actions with their “Workforce of the Future” organization
    • Improvement of identification and monitoring process of interns and apprentices who can best develop and succeed within Dassault Systèmes
    • Identification of relevant and suitable target positions to be offered to interns and apprentices
  • In order to increase employee engagement, their objectives for the end of 2021 are the following:
    • 60% of employees benefiting from certification related to their purpose and values 
    • 75% of People Managers certified, by continuing their management development program
    • 75% satisfaction concerning the work environment
  • Define a certification policy for the sites they occupy and the associated deployment plan in line with the energy audits conducted in 2019. 
  • By 2021, they will continue their actions aimed at improving their energy efficiency and examine the possibility of using electricity from renewable energy sources for their new sites, depending on the offers available in each of their countries of operation 
  • Will assess the feasibility of implementing a system for sorting common waste at three additional sites by 2021, based on the availability of local product lifecycle management systems 
  • Over the next two years, they will further extend their recycling policy to audiovisual equipment, fixed and mobile phones and accessories.

Progress

  • In 2019, filled 3,358 job offers, of which 95% were under permanent contract
  • In 2019, they hired 260 interns or apprentices under permanent or temporary contracts, representing a conversion rate of 23.8% of the total number of interns and apprentices, whether they continue their educational training or are graduated.
  • 470 certifications were delivered in 2019, leading to 65.4% of People Managers certified at the end of 2019.
  •  In 2019, 2,384 employees joined Dassault Systèmes as part of a recruitment process.
  • As a result of all the actions completed in 2019, 4,888 certifications were delivered, bringing the proportion of certified employees to 59.9%.
  •  In 2019, the work environment satisfaction rate reached 73%, up by one percentage point compared to 2018. 
  • In 2019, the policy defining standards relating to safety and protection of their sites was updated. The policy has been rolled out globally and acts as a reference for the equipping of new sites. In addition, a self-assessment process has been created and has been gradually implemented by site managers as part of a deployment plan. Based on the results of this process, they will define and implement action plans to strengthen local safety measures, where relevant.
  • They pay particular attention to retaining talents. As a result, the attrition rate of employees leaving on their own initiative remains low in 2019, below local employment market rates for 8 of the 12 geographic territories in which they operate, representing 77.2% of the workforce as of December  31, 2019.
  • In 2019, they initiated an energy audit in Europe covering 25 sites. The associated reports will enable them to define required energy efficiency action plans in 2020, as well as a certification policy for their sites. As a pilot project, one of the buildings on the 3DS Paris Campus was equipped with smart meters tracking electricity consumption in real time and precisely logging the main sources of power consumption. These meters will be used to identify levers of potential energy savings as part of a long-term approach. The results of this experiment will be analyzed in 2020.
  • In 2019, emissions amounted to 173,930 tCO2-eq, representing a carbon intensity of 10.8 tCO2-eq per employee, decreasing by 6% compared to 2018. The uncertainty factor is very high, mainly due to the use of monetary ratios and the estimation of the distances covered. The estimates produced must thus be considered as an order of magnitude. These emissions break down as 3.1% for scope 1 emissions, 10.1% for scope  2 emissions and 86.8% for scope  3 emissions, excluding greenhouse gas emissions stemming from the use of their solutions by their customers.

Certificates

United Nations Sustainable Development Goals

United Nations SDGs Compliance

SDG 1

  • In France, the architecture and infrastructure of the 3DS Paris Campus reflect their long-term commitment and their resolve to leave future generations an environment which is conducive to fulfillment and the acquisition of knowledge. 
    • The buildings’ open-plan layout is designed to promote collaboration and innovation. It bears the certification NF Haute Qualité Environnementale (HQE) Bâtiments Tertiaires, which corresponds to the highest level of ecological construction and ecological management in France. 
    • The Campus is equipped with solar panels and uses renewable energy provided under their electricity supply contract. 
    • It has a waste management and sorting system, whose quality was rated “compliant” or “optimal” in all buildings in 2018, as well as a composting facility for restaurant food waste. The parking lots are equipped with electric charging stations, the number of which was increased to more than 60 in 2019.

SDG 4

  • Their relations with the world of education target the ongoing modernization of teaching practices, as well as the development of today’s and tomorrow’s workforces. Their commitment is focused on:  
    • Supporting lifelong learning, thereby supporting employability; 
    • Increasing the attractiveness of engineering and science with youngsters;  
    • Stepping up educational innovation in line with the transformation of future skills. They have set up a team dedicated to lifelong learning, whose mission is to come up with an educational proposal suited to the different external audiences. 
  • The 3DEXPERIENCE platform makes use of their technologies and their talents to address a major challenge in their society, and prepares “workforce of the future” jobs and economic models.
  • The Workforce of the Future organization collaborates with a global network of partners to transform the education system – from primary school to university – to meet business needs. Through innovative, holistic and interdisciplinary programs based on their solutions and their technologies, they help to prepare the talents of the future.
  • In 2019, they conducted 384 actions, programs or contributions of different types in partnership with 284 targeted higher education establishments and universities, covering 27 countries worldwide. 
  • Dassault Systèmes has forged a strong and vibrant ecosystem of commercial and software development partners, technology and education institutes, research bodies and systems integrators.

SDG 5 

  • Dassault is committed to ensuring significant representation of women on the Board. Since May 23, 2019, 50% of its directors (excluding the director representing the employees in accordance with law) are women. Dassault  Systèmes  SE is above the 40% threshold required by law. This percentage is an increase from 42% in 2018.
  • The 3DS WIN (Women Initiative) internal community, launched in 2012, continues to foster a network of women and men determined to encourage, inspire and mentor women to develop their careers within Dassault Systèmes. In 2019, numerous initiatives were set up with the aim of promoting and reinforcing female leadership, for instance the participation to the Women’s Forum or the organization of events locally. At the level of Dassault Systèmes SE, the proportion of women in the top 10% of positions with responsibility is monitored on the basis of targets assessed annually. As of today, the proportion of women in those positions equals to 30%

SDG 7

  • 2019 – Acquisition of Elecworks, the suite of CAD software developed by Trace Software, to better respond to the challenges posed by electrical product design and in particular to develop smart products for the high-tech, equipment and energy industries 
  • Despite its contribution to the energy transition, this industry is the biggest consumer of industrial energy, accounting for around 28% of final energy consumption. This energy consumption also accounts for around 50% of the operating costs of petrochemical and oil refineries. Through the modeling, simulation and prediction of polymer processes, their BIOVIA solutions allow the development of new catalytic properties that reduce the associated energy footprint. In this respect, the International Energy Agency published a report entitled Technology Roadmap (Energy and GHG Reductions in the Chemical Industry via Catalytic Process) in 2013, suggesting that improvements in catalysts and associated processes could reduce the energy footprint of products by some 20 to 40% by 2050, thus saving up to 13 exajoules of energy and one gigaton of carbon dioxide equivalent per year, compared to a business-as-usual scenario.
  • In France, the architecture and infrastructure of the 3DS Paris Campus reflect their long-term commitment and their resolve to leave future generations an environment which is conducive to fulfillment and the acquisition of knowledge. The buildings’ open-plan layout is designed to promote collaboration and innovation. It bears the certification NF Haute Qualité Environnementale (HQE) Bâtiments Tertiaires, which corresponds to the highest level of ecological construction and ecological management in France. The Campus is equipped with solar panels and uses renewable energy provided under their electricity supply contract. It has a waste management and sorting system, whose quality was rated “compliant” or “optimal” in all buildings in 2018, as well as a composting facility for restaurant food waste. The parking lots are equipped with electric charging stations, the number of which was increased to more than 60 in 2019.
  • The 3DS Boston Campus was designed with sustainable innovation in mind. their energy efficiency actions and their ecological construction efforts have made it possible to reduce the site’s negative impacts on the environment and improve the satisfaction of employees by providing them with working premises that are sustainably responsible and healthy, having received the LEED Gold Construction certification and the Team Massachusetts Economic Impact Award from the Massachusetts Alliance for Economic Development (MassEcon). The new interior facilities are equipped with Massachusetts’ Eversource Energy Performance lighting and employees are provided with car-sharing shuttles allowing them to use public transport for their daily commuting. 
  • In 2019, they initiated an energy audit in Europe covering 25 sites. The associated reports will enable them to define required energy efficiency action plans in 2020, as well as a certification policy for their sites. As a pilot project, one of the buildings on the 3DS Paris Campus was equipped with smart meters tracking electricity consumption in real time and precisely logging the main sources of power consumption. These meters will be used to identify levers of potential energy savings as part of a long-term approach. The results of this experiment will be analyzed in 2020.

SDG 8 

  • As of December 31, 2019, the workforce was 19,361 employees, covering subsidiaries in which Dassault Systèmes has more than a 50% shareholding, representing an increase of 20.6% compared to December  31, 2018. Reflecting their international dimension, 39% of their employees are located in Europe, 31% are located in the Americas and 30% are located in Asia, representing 42 different countries and employees originating from 128 different countries. In 2019, 5,413 new employees joined Dassault Systèmes, including 52.4% through recruitment and 47.6% through newly acquired companies. This growth in the number of employees brings their breakdown by activity to:  39% in R&D;  48% in Sales, Marketing and Services;  13% in Administration and other functions. In line with their aim to be recognized as an exemplary employer that contributes to employability, 99% of their employees are under permanent contracts and are recruited locally, thus contributing to the economic development of each country in which they operate.
  • Outside France: Member of the World Economic Forum Global Future Council on Future of Cities and Urbanism; member of the Advisory Board of A+U Magazine; member of the G1 Summit (Japan); advisor to Isamu Noguchi Museum; Director of James Carpenter Design Associates Inc. (United States). 
  • Other positions held, and expired, during the past five years: President of World Economic Forum Global Agenda Council on Design; member of the World Economic Forum Global Agenda Council on Design & Innovation; member of the Alvar Aalto Medal 2017 jury.

SDG 9

  • The 3DEXPERIENCE Lab, an innovation laboratory set up within the Company in 2015, helps develop innovative external start-ups. This initiative gives their employees the opportunity to get involved in new projects, enabling them to share their knowledge and gain new skills.
  • Every year, the 3DS INNOVATION Forwards reward the most innovative projects led by Dassault Systèmes’ teams worldwide. Since 2004, the initiative encourages a spirit of innovation and collaboration. It also partakes in employee recognition and deepens their understanding of the Company’s strategy. Each year, all employees are invited to submit their projects through a dedicated application. The projects can be seen by everyone and are selected through the votes of employees and by a jury made up of members of the Executive Committee. The 2019 edition of the 3DS INNOVATION Forwards registered 218 candidate projects representing 1,756  employees and rewarded 89 projects.

SDG 11

  • GEOVIA combines Earth sciences and engineering to connect the natural and built environments and ultimately drive sustained safety, predictability and productivity. Leveraging the 3DEXPERIENCE platform, GEOVIA provides a single source of truth to a community of geoscientists and engineers, helping them to discover, model and harness the planet’s resources fairly For the benefit of people, businesses and governments. In recent years, GEOVIA has helped its mining customers to return to growth thanks to its fit-for-purpose portfolio of geology and mine planning applications, and to the increasing uptake of 3DEXPERIENCE. At the same time, GEOVIA has initiated a diversification strategy aimed at delivering value for civil engineering by informing the design and engineering of heavy infrastructures.
  • BIOVIA provides the scientific community with advanced biological, chemical and materials science experiences to create a healthier, more livable and sustainable world. BIOVIA spurs scientific collaboration by making science accessible through democratizing knowledge and know-how, driving scientific innovation to achieve sustainable development by creating new materials and identifying and developing targeted lifesaving therapeutics. 
  • The 3DEXPERIENCE platform lets you test possible scenarios against reality.

SDG 12

  • Their simulation solutions make it possible to identify potential weak points and deformation areas in order to obtain light, optimized designs, thus reducing the use of polyethylene terephthalate and other thermoplastic components. They significantly reduce the consumption of fossil fuels in packaging manufacturing, the processing of raw materials, production costs, the risk of defective products and the amount of associated waste, while facilitating recycling and disposal. 
  • DELMIA Quintiq solutions allow to optimize the programming process, efficiently reducing energy consumption by allowing the metal to undergo a single heating cycle, from fusion to the finished product, while guaranteeing the quality of the products. The precise planning of production helps their customers in the modeling of their circular economy by mapping and tracing all inputs. One of their customers thus improved the re-use of its own materials by around 30%.

SDG 13, SDG 14

  • On June 8, 2019, La Fondation Dassault Systèmes announced the development of the Mission Ocean project aimed at supporting the preservation of the oceans, which plays a key role in climate change. This project aims to raise public awareness on the issue of sustainable development, develop curricula of scientific and technical culture through various disciplines involved in the preservation of the oceans, promote the acquisition of new skills for future jobs and support research. This will make it possible to prepare the relevant educational resources for the next decade, designated by the United Nations as the “Decade of Ocean Science for sustainable development”.

SDG 17

  • 2017 – They entered into a new, extended partnership with The Boeing Corporation. Boeing will expand its deployment of its products across its commercial aircraft, space and defense programs. Boeing will be adopting Dassault Systèmes’ 3DEXPERIENCE platform for Manufacturing Operations Management and for Product Lifecycle Management and extending its usage of its design, engineering simulation and digital manufacturing software 
  • The Company has a strong ecosystem of more than 400 software development partners building applications to complement its software portfolio. With its sights on the future, Dassault Systèmes is working closely with academic, research and medical organizations around the world to boost the creation of new software designed to offer students wherever they are a learning environment augmented by virtual technologies.
  • The company established long-standing, scientific and technical collaborations with key partners in order to maximize the benefits from available technology and increase the value for shared customers. Further, Dassault Systèmes is a participant in several hundred public-private projects (for example with DARPA, U.S. National Lab, Prestigious universities such as Harvard or MIT, and world-leading institutes such INRIA and INSERM), collaborates with renowned scientists (including Nobel Prize winners) and is engaged in technology partnerships across the eleven industries (and industry sub-segments) it serves.
 

Evaluation

The company has primary certifications, and commendable awards and listings, including ranking at #1 as World’s Most Sustainable Companies by Corporate Knights in 2018 and ESG index listings. 

The IT company produces a comprehensive report with specific targets and goals for reducing their CO2 emissions, energy consumption, waste, renewable energy, human rights, partnerships, and raw material consumption in alignment with the UN Sustainable Development Goals.

For these reasons, Dassault Systemes has been rated a B.

Analyst Outlook: Neutral

The company’s transparency is noteworthy. The company sets specific targets and details their progress in a thorough transparent manner. 

It is proactive on numerous fronts to align with UN SDGs. The company uses KPIs and substantive information to support each area of its progress. 

Key Points

  • The company has a solid history of sustainability and continues to demonstrate its progress
  • The company should clearly state how they align with UN SDGs 
  • Garner further primary certifications, and top awards/listings, and continue to follow through on targets to potentially become A rated
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