Climate Change Data

Novozymes A/S

Climate Impact & Sustainability Data (2017, 2018, 2019, 2020)

Reporting Period: 2017

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Innovation
  • Profitable growth
  • Partnerships & customer engagement
  • Compliance
  • Climate change & energy
  • Corporate governance
  • Water
  • Product stewardship
  • Solid capital structure
  • Bioethics & biodiversity
  • Occupational health & safety
  • Community engagement & social investment
  • Responsible sourcing
  • Business ethics
  • Labor practices & human rights
  • Waste
  • Data security
  • Tax
  • Animal welfare
  • Deforestation & land use change

Environmental Achievements

  • Not disclosed

Social Achievements

  • Not disclosed

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Not disclosed
Mitigation Strategies
  • Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2018

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Responsible Consumption and Production
  • Quality Education
  • Partnerships for the Goals
  • Affordable and Clean Energy
  • Agriculture
  • Water Treatment
  • Sustainable Consumption and Production
  • Climate Action
  • Decent Work and Economic Growth
  • Gender Equality

Environmental Achievements

  • Solutions saved customers an estimated 88 million tons of CO2 in 2018.
  • Launched Balancius™, reducing feed needed for broiler chickens by 3%, with potential for 4.2 million tons of CO2 emissions savings if used globally in North and Latin America.

Social Achievements

  • Educated approximately 302,000 people in 2018, bringing the total since 2015 to over 612,000.
  • Reached 30% women in senior management.
  • Implemented TunedIn, an employee survey showing an employee development score of 78 (target: 75 or above).

Governance Achievements

  • Catalyzed two global partnerships for change: below50 (2017) and ABBI for RenovaBio (2018).
  • Implemented Lead the Way, a leadership development program for over 300 leaders (~30% of all leaders).

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Educate 1 million people about the potential of biology from 2015 to 2020.
  • Catalyze 5 global partnerships for change from 2015 to 2020.
  • Deliver 10 transformative innovations from 2015 to 2020.
  • Save 100 million tons of CO2 in 2020.
  • Enable Novozymes' employees to develop by 2020.
Short-term Goals:
  • Reach 6 billion people with Novozymes' solutions by 2020.

Environmental Challenges

  • Ensuring a sustainable supply of quality food and beverages for a growing population in regions with scarce resources (MEA).
  • Meeting growing global demand for poultry while promoting sustainable and antibiotic-free practices.
Mitigation Strategies
  • Opened a new innovation center in Istanbul to develop regionally tailored solutions.
  • Developed Balancius™, an enzyme that improves gut functionality in broiler chickens, reducing feed needs and promoting sustainable poultry production.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Development of energy-efficient products and sustainable alternatives to fossil fuels.

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 2
  • SDG 4
  • SDG 6
  • SDG 7
  • SDG 9
  • SDG 12
  • SDG 13
  • SDG 17
  • SDG 5
  • SDG 8

Novozymes' targets and initiatives contribute to various SDGs by promoting sustainable solutions in agriculture, energy, education, partnerships, and responsible consumption and production.

Sustainable Products & Innovation

  • Balancius™
  • Frontia®
  • Freshness solution
  • Acceleron® B-300 SAT
  • Alterion®
  • Innova® Drive
  • Innova® Lift

Awards & Recognition

  • Not disclosed

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:365,000 tons CO2-eqv.
Scope 1 Emissions:40,000 tons CO2-eqv.
Scope 2 Emissions:290,000 tons CO2-eqv. (market-based), 415,000 tons CO2-eqv. (location-based)
Scope 3 Emissions:35,000 tons CO2-eqv.
Renewable Energy Share:30%
Total Energy Consumption:4,574,000 GJ
Water Consumption:7,845,000 m3
Waste Generated:13,000 tons
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate change
  • Energy
  • Water
  • Waste
  • Biodiversity
  • Labor practices & human rights
  • Occupational health & safety
  • Business ethics
  • Community engagement
  • Customer engagement
  • Responsible sourcing

Environmental Achievements

  • Reduced water consumption by 4%
  • Reduced energy consumption by 5%
  • Reduced CO2 emissions by 24% (Scope 1+2 only)
  • Increased renewable energy share to 30%
  • Recovered 97% of biomass generated from landfill
  • Increased recycling rate for solid waste to 52%

Social Achievements

  • Reduced frequency of occupational accidents to 0.9 per million working hours
  • Launched nine new products
  • 99% of employees completed business integrity training
  • Increased NPS (Net Promoter Score) to +54
  • Engaged approximately 329,000 learners

Governance Achievements

  • Reinforced business integrity principle commitment
  • No breaches of competition law

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • 50% reduction in absolute emissions from operations by 2030
  • 100% renewable electricity by 2030
  • 15% reduction in absolute emissions from purchased goods and services by 2030
  • 100% sites manage water in balance with local conditions by 2030
  • 100% of key materials and waste managed in circular systems by 2030
Short-term Goals:
  • 100% circular management of biomass by 2022
  • All sites implement programs to reach zero waste by 2022
  • 86 rating on diversity index by 2022
  • 80-point rating on employee survey in 2022

Environmental Challenges

  • Challenging agricultural markets
  • Increase in operating costs due to restructuring costs
  • Lower organic sales growth
  • Increase in employee turnover to 12.7%
Mitigation Strategies
  • Organizational change with around 300 employees laid off
  • Implementation of energy efficiency projects and increased renewable energy
  • Implementation of various water-related projects
  • Implementation of a reverse osmosis system at a plant in China
  • Implementation of a new global incident handling system (CAPTURE)
  • Lead the Way program to develop leadership skills

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Responsible Purchasing Standards (RPS)
  • Supplier Performance Management (SPM) process
  • Deforestation requirements

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Regulatory action, physical or reputational damage
Opportunities
  • Development of energy-efficient products and solutions

Reporting Standards

Frameworks Used: AA1000(2008), UN Global Compact, GRI Sustainability Reporting Standards 2016

Certifications: ISO 14001, ISO 9001

Third-party Assurance: PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • JumpStart®, Optimize®

Awards & Recognition

  • World's 7th best science employer (Science Magazine)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:268,000 tCO2e/year
Scope 1 Emissions:37,000 tCO2e/year
Scope 2 Emissions:197,000 tCO2e/year
Scope 3 Emissions:34,000 tCO2e/year
Renewable Energy Share:43%
Total Energy Consumption:4,475,000 GJ/year
Water Consumption:7,998,000 m3/year
Waste Generated:15,000 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate
  • Water
  • Production & Consumption
  • Employees

Environmental Achievements

  • Reduced absolute CO2 emissions from operations by 46% compared to 2018 baseline (achieving 2022 target early).
  • Sourced 69% of electricity globally from renewable sources.
  • 97% of biomass volume handled in a circular setup.
  • Saved 49 million tons of CO2 by enabling low-carbon fuels in the transport sector.

Social Achievements

  • Launched Taegro®, a chemical-free fungicide.
  • Launched Protana® Prime, a biological solution enhancing plant-based product flavor.
  • Achieved an NPS of +50 in customer satisfaction survey.
  • 33% of senior management were women.

Governance Achievements

  • Established an Innovation Committee.
  • Launched a new remuneration policy for the Board of Directors and Executive Management.
  • Established a new long-term incentive program.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050.
  • 100% of key materials and waste managed in circular systems by 2030.
Medium-term Goals:
  • Achieve 5+% sales growth per year.
  • Achieve an EBIT margin of 28% or higher by 2022.
  • Achieve ROIC including goodwill of 23% or higher by 2022.
  • Reduce absolute CO2 emissions from operations by 50% by 2030 (relative to 2018).
  • 100% renewable electricity by 2030.
  • 15% reduction in absolute emissions from purchased goods and services by 2030.
  • 100% of sites manage water in balance with local conditions by 2030.
Short-term Goals:
  • Reduce absolute CO2 emissions from operations by 40% by 2022 (relative to 2018).

Environmental Challenges

  • COVID-19 pandemic impacted sales in Bioenergy and Grain & Tech Processing.
  • Volatility in agriculture-related business.
  • Competition in the enzyme market.
  • Global political and economic instability.
  • Cybersecurity threats.
Mitigation Strategies
  • Reorganized the company to be more customer-centric.
  • Launched Fiberex®, a platform solution for converting corn fiber into ethanol.
  • Improved go-to-market strategies and regional innovations.
  • Strengthened focus on profitable growth and pricing transparency.
  • Improved IT emergency response and information risk management.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Responsible Purchasing Standards (RPS)
  • Supplier Performance Management (SPM) process
  • SEDEX platform

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Bioenergy solutions

Reporting Standards

Frameworks Used: GRI, UNGC, TCFD

Certifications: ISO 14001, ISO 9001

Third-party Assurance: PwC

UN Sustainable Development Goals

  • Goal 2: Zero Hunger
  • Goal 6: Clean Water and Sanitation
  • Goal 7: Affordable and Clean Energy
  • Goal 12: Responsible Consumption and Production
  • Goal 13: Climate Action
  • Goal 14: Life Below Water
  • Goal 17: Partnerships for the Goals

Novozymes' solutions contribute to these goals through improved production efficiency, reduced resource consumption, and low-carbon fuels.

Sustainable Products & Innovation

  • Taegro®
  • Protana® Prime
  • BioFresh® 4+
  • Microvia™
  • Quara® Boost
  • Lphera®
  • Fiberex®

Awards & Recognition

  • MSK award for driving Biology amongst the disadvantaged