Novozymes A/S and Chr. Hansen Holding A/S (merged entity)
Climate Impact & Sustainability Data (2006 to 2016, 2010-11, 2015-2016, 2016-17, 2018-2019, 2019-20, 2020-21, 2021-09 to 2022-08, 2021-22, 2022)
Reporting Period: 2006 to 2016
Environmental Metrics
ESG Focus Areas
- Food waste reduction
- Environmental sustainability
- Economic efficiency
Environmental Achievements
- Reduced CO2 emissions by an estimated 341,000-520,000 tons in EU-28 in 2012 through yoghurt waste reduction
Social Achievements
- Not disclosed
Governance Achievements
- Not disclosed
Climate Goals & Targets
- Not disclosed
- Not disclosed
- Not disclosed
Environmental Challenges
- Lack of economic incentives for dairy manufacturers, retailers, and consumers to reduce yoghurt waste.
- Consumer perception that longer shelf life equates to reduced freshness.
- Data limitations and inconsistencies across different EU countries.
Mitigation Strategies
- Developed various scenarios to allocate extra shelf life days to incentivize all stakeholders.
- Conducted a mini-consumer survey to assess consumer preferences regarding longer shelf life.
- Used a combination of secondary and primary data to address data limitations.
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: Null
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- SDG 12 (Responsible Consumption and Production)
Reducing food waste and losses
Sustainable Products & Innovation
- FreshQ® bioprotection cultures
Awards & Recognition
- Not disclosed
Reporting Period: 2010-11
Environmental Metrics
ESG Focus Areas
- Product safety and quality
- People development and welfare
- Sustainable sourcing
- Community involvement
- Resource efficiency
- Pollution prevention
- Climate change mitigation and adaption
- Business integrity
Environmental Achievements
- Improved performance for energy and water consumption and CO2 emission per produced unit. 14% improvement in water, 11% in energy, and 12% in CO2 compared to the previous year.
- North American and German production sites granted FSSC 22000 certification.
Social Achievements
- Global roll-out of Situational Leadership II® - High Impact Leadership program for managers.
- Introduction of a new global mobility program (I BID) for employee development.
Governance Achievements
- Establishment of a CSR Board in 2010.
- Introduction of an interactive e-learning program in competition and anti-trust law.
Climate Goals & Targets
- Not disclosed
- Increase in water and energy consumption at maximum half of the production volume increase using 2008/09 as baseline
- Keeping the amount of waste at 2008/09 level
- Recycle 50% of our waste
- Reduce waste water discharge by 30% per produced unit using 2008/09 as baseline
- Reduce the amount of CO2 by 30% per produced unit using 2008/09 as baseline
- Conduct full Life Cycle Assessments on 3 products
- Establish CO2 and water footprint for major products, incl. packaging material and transportation
- All production sites PAS 220/FSSC 22000 certified by 2012/13
- 80% of customer complaints processed within 2 weeks by 2012/13
- 10% reduction in customer complaints measured against turnover and compensation per year
- Employee turnover between 10-15%
- Rate of absence less than 2%
- Maintain more than 2 days of training per year per employee
- Accidents with absence more than 1 day less than 5 per one million working hours by 2012/13
- All high risk vendors approved by 2012/13
Environmental Challenges
- Increase in accident frequency (from 9 to 12 accidents with absence per one million working hours).
- Increase in customer complaints (23%).
- High handling time of customer complaints.
Mitigation Strategies
- Implementation of new instruments to reduce the risk of incidents and improve safe behavior.
- Integration of health and safety as a special focus theme in the annual organizational audit process.
- Implementation of a new packaging concept to reduce packaging material consumption.
Supply Chain Management
Responsible Procurement
- Vendor management program including assessment, audit, performance evaluation and approval of high risk vendors.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: UN Global Compact
Certifications: FSSC 22000
Sustainable Products & Innovation
- CHY-MAX®M coagulants
Reporting Period: 2015-2016
Environmental Metrics
ESG Focus Areas
- Sustainable Agriculture
- Food Waste Reduction
- Global Health
- Climate and Environmental Sustainability
- Workplace Responsibility
- Business and Product Integrity
- Responsible Sourcing
Environmental Achievements
- Improved energy efficiency by 8% since 2013/14 (2% in 2015/16)
- Improved CO2 efficiency by 16% since 2013/14 (5% in 2015/16)
- Improved water efficiency by 5% since 2013/14
- 23% of solid waste recycled
Social Achievements
- Launched annual employee engagement survey with 94% participation and 3.8/5.0 average score
- Increased percentage of women in management positions from 36% to 39%
- Increased percentage of women in key positions from 18% to 22%
- Improved employee turnover to 10%
Governance Achievements
- Established a Sustainability Board chaired by the CEO
- Developed a new Sustainability Position
- Relaunched anticorruption e-learning program with 73% completion rate by year-end (expected to reach 90%)
- 85% of direct suppliers approved under Chr. Hansen’s vendor approval guidelines
Climate Goals & Targets
- Expand the reach of natural plant protection solutions to 25 million hectares of farmland by 2025
- 20% energy and water efficiency improvement by 2020
- 25% CO2 efficiency improvement by 2020
- 40% of solid waste recycled by 2020
- LTIF of 2.0 by 2020
- At least three female members on the Board of Directors by 2020
- Reduce global yogurt waste by 2% (700,000 tons) by 2020
- Launch five new products with a documented health effect by 2020
Environmental Challenges
- Increased Lost Time Incident Frequency (LTIF) to 4.0 from 3.3 due to improved incident reporting
- Slight decrease in the percentage of approved suppliers (85% from 87%) due to systematic review process
- 8 percentage point decline in diverse management teams due to organizational change
Mitigation Strategies
- Established a global Health and Safety Organization to build a safety mindset and share best practices
- Set a new LTIF target of 2.0 by 2020
- Continuous focus to improve systems and processes for supplier approval
- Developing a new global leadership program to enhance diversity and drive engagement
Supply Chain Management
Supplier Audits: 26 third-party audits
Responsible Procurement
- Supplier Guiding Principles
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: UN Global Compact
Certifications: FSSC 22000, ISO 22000
UN Sustainable Development Goals
- SDG 2
- SDG 3
- SDG 12
Better farming, good health, less waste
Sustainable Products & Innovation
- Capture™ VGR™
- NOLA™ Fit
Reporting Period: 2016-17
Environmental Metrics
ESG Focus Areas
- Sustainable Products
- Workplace Responsibility
- Climate and Environmental Sustainability
- Business and Product Integrity
- Human Rights and Responsible Sourcing
Environmental Achievements
- 15% improvement in CO2 performance since 2013/14
- 5% energy efficiency improvement since 2013/14
- 29% solid waste recycled
Social Achievements
- Best-ever result in health and safety performance (LTIF 2.5, aiming for ≤2.0 by 2020)
- Increased engagement scores in Gallup Engagement Survey
- Increased proportion of non-Danes in key positions from 41% to 43%
Governance Achievements
- Established a Global Environmental Excellence Center
- Strengthened third-party risk management processes
- 100% of relevant employees completed anticorruption e-learning
Climate Goals & Targets
- Launch five new products with documented health effects by 2020
- Reach 25 million hectares of farmland with natural solutions by 2025
- Achieve LTIF ≤ 2.0 by 2020
- Reduce yogurt waste by 700,000 tons by 2020
- 20% improvement in energy efficiency by 2020
- 25% improvement in CO2 efficiency by 2020
Environmental Challenges
- Growing the business without increasing environmental footprint (especially cold storage at -55°C)
- Decreased water efficiency due to higher usage at Natural Colors sites
- Increased CO2 emissions from transport due to air freight and sales growth in remote markets
Mitigation Strategies
- Investing in technical solutions to increase production volumes and enhance energy efficiency
- Global “Go Green” project to improve energy management
- Focusing on modes of transportation and shifting to less CO2-intensive options
Supply Chain Management
Supplier Audits: 86% of direct suppliers approved; 3 SMETA audits conducted
Responsible Procurement
- Supplier Guiding Principles covering quality, food safety, CSR, and regulatory compliance
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: UN Global Compact, UN Guiding Principles on Business and Human Rights
Certifications: ISO 14001 (6 sites), ISO 50001 (2 sites), FSSC 22000
UN Sustainable Development Goals
- UN Global Goal 2
- UN Global Goal 3
- UN Global Goal 12
Products contribute to sustainable agriculture, improved global health, and reduced food waste.
Sustainable Products & Innovation
- CoCoFresh culture for fermented plant-based dairy alternatives
Awards & Recognition
- Green profile of the year by the municipality of Rudersdal, Denmark
Reporting Period: 2018-2019
Environmental Metrics
ESG Focus Areas
- Better Farming
- Good Health
- Less Waste
- Workplace Responsibility
- Climate and Environment
- Leading with Integrity
Environmental Achievements
- 26.5% CO₂ efficiency improvement since base year 2013/14
- 10.8% energy efficiency improvement relative to base year 2013/14
- 6.5% water efficiency improvement relative to base year 2013/14
- 45.5% of solid waste recycled
- Partnership with Better Energy to power Danish operations with 100% renewable energy
Social Achievements
- Lowest Lost Time Incident Frequency (LTIF) in company history (1.32)
- 100% completion rate in business integrity training
- 83% diverse corporate management teams
- Launched Sweety® Y-1, a culture reducing added sugar in yogurt
- Support for smallholder farmers in Kenya through partnership with CARE Denmark (received CARE Award)
Governance Achievements
- 8 cases reported through whistleblower hotline, all thoroughly investigated
- Updated Supplier Requirements for Sustainability integrated into all contracts
- Transparent tax reporting, submitting country-by-country report to Danish tax authorities
- Member of SEDEX for responsible sourcing data sharing
Climate Goals & Targets
- Not disclosed
- Expand reach of natural plant solutions to 25m hectares of farmland by 2025
- Reduce global yogurt waste by 1.2m tons by 2022
- Achieve LTIF of <1.8 by 2022
- 20% energy and water efficiency improvement by 2022
- 30% women at Directors+ level by 2022
- Launch six new products with documented health effects by 2022
Environmental Challenges
- Reducing food waste
- Shifting to renewable energy sources
- Improving gender diversity at director level
- Maintaining high ethical standards across diverse global operations
- Managing risks in agricultural supply chain
Mitigation Strategies
- Developing cultures to extend shelf life of dairy products
- Partnership with Better Energy for renewable energy
- Diversity initiatives and inclusion programs
- Mandatory anti-corruption training and whistleblower hotline
- Updated Supplier Requirements for Sustainability and responsible sourcing program
Supply Chain Management
Supplier Audits: 4 SMETA audits
Responsible Procurement
- Supplier Requirements for Sustainability including standards for food safety, quality, and sustainability
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: UN Global Goals
Certifications: ISO 14001 (8 sites), ISO 50001 (2 sites)
Third-party Assurance: PricewaterhouseCoopers
UN Sustainable Development Goals
- Goal 2, Goal 3, Goal 12, Goal 8, Goal 13
82% of revenue contributes to UN SDGs 2, 3, and 12
Sustainable Products & Innovation
- Sweety® Y-1, FreshQ®, CHY-MAX®
Awards & Recognition
- Most sustainable company in the world (Corporate Knights)
- CARE Denmark’s Award
- World Innovation Award for Sweety® Y-1
Reporting Period: 2019-20
Environmental Metrics
ESG Focus Areas
- Products
- Planet
- People
Environmental Achievements
- Reduced yogurt waste by 200,000 tons
- 40% of global electricity consumption based on renewable energy
Social Achievements
- 163 million people consumed Chr. Hansen probiotics
- All new employees completed culture model onboarding
Governance Achievements
- 98% participation rate in anti-corruption training
Climate Goals & Targets
- Not disclosed
- Cover 25 million hectares of farmland with natural solutions by 2025
- Reduce 2 million tons of yogurt waste by 2025
- Reach 200 million people with probiotic solutions by 2025
- 100% of biowaste streams managed from a circular perspective by 2025
- 100% of key packaging material recyclable by 2025
- Not disclosed
Environmental Challenges
- Seasonal delays in application of plant health products
- COVID-19 pandemic impacting air freight usage
- Deviation from 100% anti-corruption training completion due to COVID-19
Mitigation Strategies
- Continuous improvement projects on water and CO2 emissions
- Concentrated products, cold chain optimization, and shift from air to sea freight (partially offset by COVID-19 related air freight)
- Close dialogue with production sites to follow up on remaining anti-corruption training
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: UN Global Compact, Danish Financial Statement Act, section 99 a and b
Certifications: Null
Third-party Assurance: Limited Assurance
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: 2020-21
Environmental Metrics
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Reduced SOx emissions significantly due to increased natural gas use and decreased LPG and fuel oil usage.
- 61% of global electricity consumption based on renewables in FY 2020/21.
- 100% circular management of biowaste committed by 2025.
Social Achievements
- Launched a global ‘Take 5’ safety campaign.
- No reported fatal accidents within the last five years.
- Diversity and inclusion initiatives with targets for 2025 (e.g., 30% women in director roles, 60% diverse corporate management teams).
Governance Achievements
- Established a Sustainability Board responsible for ESG strategy and activities.
- ESG constitutes 20% of the Corporate Leadership team’s short-term incentive.
Climate Goals & Targets
- Not disclosed
- Not disclosed
- 20% energy and water efficiency improvement by 2022
- 100% renewable electricity for all global operations by 2025
- Reduce global yogurt waste by 2 million tons by 2025
Environmental Challenges
- Water scarcity risks (mitigated by initiatives to reduce wastewater and monthly evaluation of water metrics).
- Climate change (addressed by joining the Science Based Targets initiative and mapping the entire value chain for carbon emissions).
Mitigation Strategies
- Initiatives to reduce wastewater at various sites (e.g., soft water installation, reverse osmosis).
- Global ‘Go Green’ project for energy optimization.
- Setting Science Based Targets to reduce greenhouse gas emissions.
Supply Chain Management
Supplier Audits: All high-risk direct suppliers audited every 3rd year. Approximately 98% of audits conducted on-site.
Responsible Procurement
- Supplier Requirements for Sustainability outlining expectations on human rights, labor standards, environmental performance.
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: UN Global Compact, TCFD
Certifications: ISO 14001, ISO 50001, FSSC 22000
Third-party Assurance: PwC
UN Sustainable Development Goals
- Goal 2
- Goal 3
- Goal 12
82% of Chr. Hansen’s revenue contributes to sustainable development and these UN Global Goals.
Sustainable Products & Innovation
- Probiotics for poultry, swine and cattle, silage inoculants
Awards & Recognition
- Not disclosed
Reporting Period: 2021-09 to 2022-08
Environmental Metrics
ESG Focus Areas
- Climate change
- Circular economy
- Biodiversity
- Diversity, Equity & Inclusion
- Human rights
- Anti-corruption
- Compliance
Environmental Achievements
- Increased share of renewable electricity to 61%
- 91% of biowaste managed circularly
- Reduced environmental violations to 0
- 66% of key packaging materials recyclable
- Science Based Targets approved by the Science Based Targets initiative
Social Achievements
- 100% of new employees introduced to culture model
- Employee engagement score in top 25%
- Established local DE&I Employee Resource Groups
- Gender pay gap reduced to 4.1%
Governance Achievements
- Board gender diversity target met with three male and three female shareholder-elected members
- ESG integrated into Enterprise Risk Management framework
- Tax transparency report published
- 15 cases reported through whistleblower hotline, all justified cases acted upon
Climate Goals & Targets
- Not disclosed
- Reduce scopes 1 and 2 greenhouse gas emissions by 42% by 2030
- Reduce scope 3 emissions by 20% by 2030
- Achieve 100% renewable electricity by 2025
- Reduce global yogurt waste by 2 million tons by 2024/25
- Cover 25 million hectares with biological plant health products by 2024/25
- Reach 200 million people with probiotics by 2024/25
- Board gender diversity target of 35% by 2025
- Not disclosed
Environmental Challenges
- Increased geopolitical risk and inflationary pressure
- Volatile macroeconomic environment and supply chain disruptions
- Expansion of capacity in inflationary environment
- Above-normal employee turnover (16%)
- Slower than anticipated progress on commercial pipeline due to customer focus on cost savings
Mitigation Strategies
- Close collaboration with customers to manage supply chain challenges and implement price adjustments
- Phased investments in capacity expansion
- Optimizing recruitment processes and enhancing employee value proposition
- Collaborating with customers on cost savings through yield-optimizing solutions
- Continued alignment of quality management systems across the Group
Supply Chain Management
Supplier Audits: At least once every three years
Responsible Procurement
- Vendor approval program with clearly defined requirements regarding social and environmental issues
- Supplier self-assessments
- Third-party social and environmental audits
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Changes to regulation, technology, markets, products and consumer demands
Opportunities
- New business opportunities within plant-based solutions, reduction of food waste and more efficient agricultural processes and food production
Reporting Standards
Frameworks Used: GRI, Science Based Targets initiative, UN Global Compact, TCFD
Certifications: ISO 14001, ISO 50001, FSSC 22000, ISO 22000, FAMI-QS
Third-party Assurance: PricewaterhouseCoopers
UN Sustainable Development Goals
- SDG 2 (Zero Hunger)
- SDG 3 (Good Health and Well-being)
- SDG 12 (Responsible Consumption and Production)
80% of revenue contributes to these SDGs through various product impacts
Sustainable Products & Innovation
- CHY-MAX® SUPREME
- GALLIPRO® FIT
- SMARTBEV™ NEER®
- FRESHQ®
- VEGA™
Awards & Recognition
- Ranked second on Corporate Knights' Top 100 most sustainable companies list
Reporting Period: 2021-22
Environmental Metrics
ESG Focus Areas
- Climate Change
- Sustainable Agriculture
- Food Production
- Global Health
- Workforce Diversity
- Governance
Environmental Achievements
- Launched Think Climate. Naturally. program
- Science Based Targets launched (42% reduction in scope 1+2 emissions, 20% reduction in scope 3 emissions by 2030 from 2019/20 baseline)
- 100% use of renewable electricity (target by 2025)
- 100% circular management of biowaste (target by 2025)
- 100% key packaging materials recyclable (target by 2025)
Social Achievements
- First report on gender pay gap published (6.2%)
- 32% women in Director+ positions (above target)
- Employee engagement remained high during the pandemic
- Hansen Health program launched to support employee well-being
Governance Achievements
- ESG oversight on Board of Directors and committee level from 2022
- Country-by-country tax reporting from FY22
- Executive compensation linked to sustainability
Climate Goals & Targets
- 42% reduction in scope 1+2 emissions by 2030
- 20% reduction in scope 3 emissions by 2030
- Achieve 100% renewable electricity by 2025
- Achieve 100% circular management of biowaste by 2025
- Achieve 100% recyclable key packaging materials by 2025
Environmental Challenges
- Reducing carbon emissions across the supply chain (scope 3)
- Maintaining high employee engagement while managing turnover
- Achieving ambitious sustainability targets within a global operational footprint
Mitigation Strategies
- Targeted initiatives in renewables, circular waste management, and recycling
- Hansen Health program and flexible workplace policy to improve employee well-being
- Decarbonization roadmap with specific initiatives across operations, sourcing, logistics, and employee engagement
Supply Chain Management
Responsible Procurement
- Approach selected suppliers for low-carbon practices
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: Science Based Targets initiative (SBTi), Task Force on Climate-related Financial Disclosures (TCFD)
Sustainable Products & Innovation
- Chy-Max®, YieldMax®, YoFlex® Premium (food cultures & enzymes)
- Quarzo®, Presence®, Bovamine®, Bioplus®, Gallipro® (animal & plant health)
- LGG®, BB-12®, LA-5®, GR-1®, F-19®, RC-14® (probiotics)
Awards & Recognition
- Ranked as a leader in sustainability by Corporate Knights
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Climate change
- Diversity & Inclusion
- Sustainability
Environmental Achievements
- Commit to carbon neutrality by 2050
- 75% reduction in absolute CO2 emissions from operations (Scopes 1+2) by 2030
- 35% reduction in absolute CO2 emissions from supply chain (Scope 3) by 2030
Social Achievements
- Commitment to diversity, aiming for at least 45% women and 45% men across all professionals and senior management by 2030
Governance Achievements
- Not disclosed
Climate Goals & Targets
- Carbon neutrality by 2050
- 75% reduction in absolute CO2 emissions from operations (Scopes 1+2) by 2030
- 35% reduction in absolute CO2 emissions from supply chain (Scope 3) by 2030
- At least 45% women and 45% men across all professionals and senior management by 2030
- 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: Null
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed