Novozymes position statement on climate change
Addressing climate change is well-integrated within Novozymes’ business strategy. Novozymes believes that effective implementation of strong climate change policies and actions will help provide a clear roadmap for businesses to drive the world towards a low carbon future.
Novozymes has been recognized as a global corporate leader for climate change action. Novozymes enables climate change mitigation across its value chain through its biosolutions, while striving to reduce its own operational carbon footprint. Furthermore, Novozymes has a strong tradition of integrated reporting and is committed to transparently disclosing its climate change impacts.
Novozymes’ commitment to climate change action is based on the following four pillars:
1. Lowering Novozymes’ operational carbon footprint
Novozymes has invested heavily to improve productivity and reduce the carbon footprint of its production. Since 2009, Novozymes has decoupled absolute CO2e* emissions from business growth. These improvements have been driven by the focus on two key areas – improvements in energy efficiency and investment in renewable energy.
In 2015, Novozymes set new 2020 targets to improve its energy efficiency by 30% and reduce CO2 intensity of its operations by 25%, compared with a 2014 baseline. Novozymes also set a target to source 30% of its global energy consumption from renewable sources by 2020.
2. Mitigating climate change impacts across the value chain
Novozymes believes that a transition towards a biobased economy that relies on renewable biological resources can assist the planet in being more resource efficient and tackling climate change. Its biosolutions in industries such as bioenergy and agriculture typically offer customers reduced greenhouse gas (GHG) emissions due to lower energy, water, raw material and chemical consumption compared with conventional technologies.
Novozymes measures how its biosolutions contribute to more sustainable business practices, and since 2004, has used the lifecycle assessment (LCA) approach to assess the environmental impact of its biological solutions from cradle to grave. A list of published LCA studies by Novozymes can be viewed here.
Novozymes works closely with customers to help them realize and demonstrate emission reductions within their own operations. Novozymes has a target to save 100 million tons of CO2e* annually by 2020, through customers’ application of its products. Novozymes’ supplier program on responsible sourcing seeks to ensure that its suppliers of directly sourced agricultural raw materials meet its requirements in terms of not contributing to further deforestation.
3. Transparent climate disclosure
Novozymes was the first company in the world to publish an integrated annual report (2002). Novozymes’ environmental reporting includes independently audited, verified and assured data on GHG emissions from its operations, as well as estimates of emissions avoided by customers’ application of its products.
Novozymes reports its performance on climate change action to various reporting platforms such as CDP (formerly the Carbon Disclosure Project) and the Dow Jones Sustainability Index. Novozymes’ performance on these platforms is available on its website under the Sustainability Recognitions section.
4. Enabling a low carbon future
Novozymes actively engages in global discussions and partnerships with key stakeholders on several climate change issues. To enable a low carbon future, Novozymes supports:
- Public-private collaborations – to boost the research, development, deployment, and diffusion of low carbon technologies
As part of its engagement with the United Nations Sustainable Energy for All (SE4ALL), Novozymes supports the Sustainable Bioenergy Accelerator. Co-chaired by the UN Food and Agricultural Organization (FAO) and the Roundtable on Sustainable Biomaterials (RSB), this multi-stakeholder initiative aims to scale up the development and deployment of sustainable bioenergy solutions. Novozymes is also involved with the World Business Council for Sustainable Development (WBCSD’s) Low Carbon Technology Partnerships initiative (LCTPi) and the United Nations Framework Convention on Climate Change (UNFCCC’s) Global Climate Action Agenda. The company is participating in two key workstreams of the LCTPi - Climate Smart Agriculture and Low Carbon Fuels. The Low Carbon Fuels workstream has grown into Below50 in partnership with RSB and the UN SE4ALL, and focuses on growing the global market for low carbon transport fuels. Novozymes is a founding member of Below50.
- Robust policy frameworks – for private investments to decarbonize the global economy
Novozymes contributes to global positions advocating policy recommendations to UNFCCC, notably through its leadership roles within the UN Global Compact (UNGC), the International Chamber of Commerce (ICC), the United States Council for International Business (USCIB) and the WBCSD.
- A clear role for business (and other stakeholders which are committed to climate change action) – on implementing NDCs, capacity building, as well as climate change mitigation, adaptation, finance, and investment
Business has a valuable role to play within the development and deployment of low carbon solutions, as well as driving research and innovation. These inputs have been provided to UN climate negotiation processes and technical bodies, as well as via national consultations and dialogues. These activities should be continued and supported by all stakeholders working together to achieve the outcomes and ambitions of the Paris Agreement.
- Stable pricing for carbon – to give companies a reliable and predictable framework along with policy clarity to support their investment decisions
Novozymes is a leading member of the UNGC Climate Action Platform, which is a strategic partner to the Carbon Pricing Leadership Coalition led by the World Bank Group. Novozymes supports the UNGC Business Leadership Criteria for Carbon Pricing, which entails putting an internal price on carbon and engaging in responsible policy advocacy, based on national circumstances.
For more information on Novozymes’ progress on its targets and climate change action engagements, please see Novozymes annual report and its section on UNGC Communication on Progress.
*CO2e: Carbon dioxide equivalents; the standard unit in carbon accounting to quantify GHG emissions
Last revised June 2017