Climate Change Data

Novozymes A/S

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:143000 tonnes CO2-eqv.
Scope 1 Emissions:40000 tonnes CO2-eqv.
Scope 2 Emissions:103000 tonnes CO2-eqv.
Scope 3 Emissions:644000 tonnes CO2-eqv.
Renewable Energy Share:84%
Total Energy Consumption:4396000 GJ
Water Consumption:7793000 m3
Waste Generated:544000 tonnes
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate change
  • Water stewardship
  • Circular economy
  • Diversity & Inclusion
  • Employee safety & well-being

Environmental Achievements

  • Reduced absolute scopes 1+2 GHG emissions by 11% to 143,000 tonnes from 161,000 tonnes in 2022
  • Sourced 84% of electricity from renewable sources
  • Total recycling and composting rate above 99%
  • Recycling rate for non-biomass waste increased to 74% from 63% in 2022

Social Achievements

  • Achieved a score of 84 on the Thrive Index (employee engagement and development), three points higher than the industry benchmark
  • Frequency of occupational injuries with absence decreased to 1.3 per million working hours in 2023, compared with 1.7 in 2022
  • Share of women in senior management increased to 36% from 33% in 2022

Governance Achievements

  • Completed business integrity training for 98% of employees in scope
  • No breaches of competition law

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions across scopes 1, 2 and 3 by 2050
  • Reduce absolute scopes 1 and 2 GHG emissions by 90% by 2050 from a 2018 base year
  • Reduce absolute scope 3 GHG emissions by 90% by 2050 from a 2018 base year
  • Improve freshwater withdrawal by recycling 20% more water from a 2021 baseline by 2035
  • Restore 30 billion liters of water in basins close to production sites where WASH is a challenge by 2030
  • Zero waste to landfill from operations by 2030
  • Three key circular projects successfully implemented by 2030
  • Achieve gender balance (45% women and 45% men) across all professionals and in senior management by 2030
Medium-term Goals:
  • Reduce absolute scopes 1 and 2 GHG emissions 75% by 2030 from a 2018 base year
  • Reduce absolute scope 3 GHG emissions by 35% by 2030 from a 2018 base year
  • Improve freshwater withdrawal by recycling 15% more water from a 2021 baseline by 2030
  • Restore 10 billion liters of water in basins close to production sites where WASH is a challenge by 2030
Short-term Goals:
  • Reduce absolute GHG emissions from operations by 65% from a 2018 baseline by 2025
  • Purchase 100% renewable electricity by 2025
  • Improve freshwater withdrawal by recycling 10% more water from a 2021 baseline by 2025
  • Two key circular projects in pilots with demonstrated benefits by 2025

Environmental Challenges

  • Volatility of agriculture-related business
  • Data protection and cyber threats
  • Global political and economic uncertainty
  • Supply chain challenges and dynamic input prices
  • Integration of Novozymes and Chr. Hansen
  • Water scarcity due to climate change
  • Emerging technologies
Mitigation Strategies
  • Flexibility in adapting to changing markets; diversification of revenue streams; digital tools for process optimization
  • Enhanced protection of digital assets; Cyber Defense Center; security scans; employee training; patent and IP management; integration of Novozymes’ and Chr. Hansen’s systems and data
  • Diversified portfolio and global footprint; monitoring political and economic developments; global versus local scenarios in capacity planning
  • Pricing efforts; monitoring key material levels; alternative sourcing strategies; productivity improvements
  • Dedicated integration teams; business continuity; employee communication and support; integration committee; EVP for Strategy and Integration
  • Water stewardship strategy; water recycling and efficiency projects; water restoration projects; scientific approach to water challenges
  • Continuous monitoring and assessment of new technologies; responsible use of biotech; engagement with stakeholders; partnerships and collaborations

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Responsible Purchasing Standards (RPS)
  • Supplier Performance Management (SPM) process
  • Supplier Ethical Data Exchange (SEDEX) platform
  • Requirements on zero net deforestation and zero tolerance for land grabbing
  • Code of conduct for business partners

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Water scarcity
Transition Risks
  • Changes in agricultural market cycle
  • Regulations for ethanol blending
Opportunities
  • Development of energy-efficient products
  • Biomass conversion
  • Carbon capture

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC

Certifications: ISO 14001, ISO 9001, RSPO

Third-party Assurance: PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab

UN Sustainable Development Goals

  • Goal 6 (Clean Water and Sanitation)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)

Biosolutions contribute to reducing greenhouse gas emissions, improving water efficiency, and promoting renewable energy

Sustainable Products & Innovation

  • Biosolutions for carbon capture, biomass conversion, plastics recycling and advanced proteins

Awards & Recognition

  • CDP’s Climate Change A List