Our long-term targets reflect Novozymes' integrated business approach. Besides our ambitions for sales growth and financial returns, the environmental and social areas is of particular importance to our business.
Novozymes’ long-term financial performance is measured through the rate of annual organic sales growth in local currency, the EBIT margin and the return on invested capital (ROIC) including goodwill.
Organic sales growth
Organic sales growth remains the top priority for Novozymes, and the company maintains its ambition to accelerate organic sales growth to a level of 8-10%. However, with the current visibility, annual organic sales growth from 2017 through to the end of the decade is expected to be in line with the historical performance of 6-7%.
Novozymes’ long-term target for the EBIT margin is 26% and above. The target is expected to be achievable throughout the period 2016-2020.
ROIC incl. goodwill
Novozymes’ long-term target for ROIC including goodwill is 25% and above. The target is expected to be achievable throughout the period 2016-2020 on an average basis.
In order to measure our impact on the world as well as our own sustainability, Novozymes has two types of sustainability targets: impact targets and operational targets. Both sets of targets are integrated into incentive schemes throughout the organization to align the company’s performance and direction.
We will measure the success of our purpose statement and strategic focus areas using a number of new long-term impact targets. These targets reflect our belief that increasing the use of our biological solutions will have a real and positive impact on the world.
We want to reach 6 billion people by 2020. Our solutions touch people’s lives across the world, and nowhere does sustainability become more real than when people have access to products that combine high performance and a small sustainable footprint.
We want to provide knowledge of the potential of biology to 1 million people from 2015 to 2020. We want to step up our contribution – from training in factories to local-community outreach to involvement with universities and business schools. Education is a precondition for global sustainable development, and we have a lot to offer. This target will challenge us to share knowledge and insights outside of Novozymes. The more people we can educate, the more can take part in creating sustainable biological solutions in the future.
We want to catalyze five global partnerships for change from 2015 to 2020: high-impact partnerships with public and private organizations to create answers for a sustainable world. Good examples include The BioAg Alliance, which is working on making a sustainable change in modern agriculture, and the U.N.-led Sustainable Energy For All initiative. We want to play our part in rallying the willing to make the changes the world needs.
We want to deliver 10 transformative innovations from 2015 to 2020 that really change the lives of many people. Every piece of innovation we deliver has an impact, and this target is a reflection of our power to create technological breakthroughs.
In 2020 we want to save the world 100 million tons of CO2 a year through customers applying our products.
We want to enable Novozymes employees to develop. It is our ability to ensure that employees develop their skills that will determine how successful we are. We will do this on an ongoing basis, but have set an ambitious target for 2020 in our annual employee survey.
The long-term operational targets for sustainability below reflect Novozymes’ ambitions to constantly increase the sustainability of its operations across the value chain to lead by example and ensure the long-term sustainable development of Novozymes as an international, inclusive and successful company.
With an updated baseline of 2014, we will strive to achieve the following by 2020: