To be at the forefront, any company must make sure that the next sustainability trends are incorporated in the overall company strategy. A best practice is to have a formal process of trendspotting including assessing the materiality of these trends to your business. Novozymes has a systematic approach to trendspotting which feeds into the development of our sustainability strategy and targets.
Novozymes materiality overview
Understanding sustainability issues that are material to our business is part of our sustainability trendspotting process and contributes to the sustainable development strategy and target-setting process. Based on key trends, engagements with our stakeholders and analysis of our own sustainability risks and opportunities, a broad sustainability materiality overview has been developed.
Issues that have a high level of importance both for our stakeholders and our business are located in the upper right-hand corner of the matrix. These issues are pivotal to our immediate and long-term success and are an important part of our sustainability strategy with defined targets. Our success depends on our ability to efficiently utilize natural resources such as energy, water and raw materials, and to enable our customers to produce "more with less." Likewise, it is crucial for our business and our stakeholders to ensure a safe and healthy working environment for our employees with ample development opportunities. Issues around the center of the matrix are also currently relevant to Novozymes and its stakeholders and require attention and action. As a result, we have systems, policies and projects related to these issues. Issues in the lower left-hand corner of the matrix indicate emerging trends of growing relevance to our stakeholders and Novozymes’ technology. Accordingly, we have taken action on some of these issues and continue to actively follow these trends.
From trend to sustainability targets in Novozymes
Our Sustainability Development Board (SDB), consisting of Vice Presidents from all key business functions, is responsible for developing our sustainable development strategy and targets. To provide qualified support for strategic decision-making and pursue an ambitious sustainability strategy, the SDB is
presented with systematic surveys identifying and assessing trends that have a material business impact and are relevant to Novozymes’ stakeholders. The SDB uses these surveys to select key trends, assessing their relevance and importance to Novozymes’ business strategies. The SDB reports directly to Novozymes’ Executive Management that evaluates and approves the sustainability targets and strategy before the Board of Directors' final approval.
This process enables Novozymes Sustainability Development Board to develop a sustainability strategy and related sustainability targets aligned with the newest trends and concerns within sustainability practices.