How to develop a sustainability strategy

If you want to make sustainability an integral part of your business, you must identify material sustainability issues, develop a sustainability strategy and form sustainability targets.

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.

 
 

Climate change

Reducing CO2 emissions and mitigating climate change is a top priority for Novozymes and its stakeholders. Hence we have set targets to reduce our CO¬2 emissions and enable our customers to reduce their CO2 emissions through our solutions.

  
Energy efficiency

Improving energy efficiency is a top priority for Novozymes and its stakeholders in order to reduce the risk of negative impacts from rising energy prices, energy insecurity and climate change. We have set targets to improve our energy efficiency. Our solutions also help our customers save energy.

Health and safety

It is vital for both our employees and our business to maintain a safe and healthy working place and good work-life balance. Accordingly, we have set targets to prevent occupational accidents & hazards.

Water efficiency

Water is becoming an increasingly critical sustainability issue. Novozymes mitigates water-related risks, especially in regions where water is scarce. We have set targets to improve our water efficiency, and our solutions help our customers reduce water and treat wastewater.

Human rights and labor standards

As a responsible global organization, Novozymes commits to protect human rights and respect labor standards. Our social minimum standards are based on the UN Global Compact and cover aspects such as diversity, freedom of association and elimination of child and forced labor, etc.

Employee satisfaction & development

We believe employee satisfaction leads to better performance both at individual and team level. Our aim is to be an attractive, high-performing workplace with a culture based on our "Touch the World" values. Accordingly, we have set targets to measure employee satisfaction, development opportunities and employee turnover.

Supply chain management

A reliable and safe supply chain is essential for ensuring production, cost control and efficiency. Accordingly, we have set a target to ensure supplier adherence to commercial, quality and sustainability performance.

Business integrity and transparency

As a responsible global business, Novozymes is committed to values such as responsibility, accountability, openness and honesty. Our business integrity rests on six principles such as refusal to make facilitation payments and clear limits for gifts.

Diversity and equal opportunity

For a growing global organization, it is important to develop a diverse workforce, fostering innovation and an inclusive culture. Hence, we have set targets for gender and nationality distribution for newly recruited leaders.

Sustainable energy

Growing resource scarcity requires solutions that can be based on renewable energy. As part of our effort to strengthen the pull of sustainable solutions in society, we have set a target to ensure that the U.N. Sustainable Energy for All (SEFA) initiative promotes biofuels as an opportunity area.

Corporate citizenship

As a responsible corporate citizen, Novozymes commits resources to community engagement activities. We contribute with our competencies within biotechnology and environmental responsibility in projects and partnerships worldwide.

Sustainability excellence

Sustainability indices and ratings help us benchmark ourselves against sustainability leaders, add credibility to our work, and stay in touch with the latest trends. Accordingly, we have set a target as a yardstick for our performance.

Stakeholder engagement

Stakeholders are indispensable to the current and future success of Novozymes. Hence we have created an organizational setup that integrates stakeholder concerns into our strategic decision-making. Listening to and learning from stakeholders are part of all focus areas.

Innovation

As an innovation-focused solution provider, Novozymes attaches great importance to this aspect, as do its stakeholders. We focus on research and development and continuously improve this complex, global and highly diversified process in order to ensure our long-term success.

Biodiversity and bioethics

As a responsible biotechnology business, Novozymes attaches importance to issues such as protection of biodiversity, fair access to genetic resources, gene technology and GMOs, animal testing etc. Hence, we engage, take action and position ourselves accordingly, in order to mitigate associated risks.

Sustainable agriculture

Novozymes' bioagricultural products help reduce dependence on oil-based fertilizers, contributing to the development of sustainable agriculture. Our enzymes for animal feed products also help reduce some of the adverse impacts of animal production. In addition, our CleanStar Mozambique project is a business approach based on sustainable agro-forestry.

Health and nutrition

Health and nutrition are becoming increasingly important. Several of our solutions for the food industry address specific health and nutrition issues that our customers and society benefit from. Furthermore, we address the Millennium Development Goals (MDGs) on maternal and child health issues through the Clean Star Mozambique project.

Product safety

It is vital to our business to ensure that our products are safe to handle, nontoxic and sold legally. We provide our customers with clear information about our solutions in order to comply with consumer and regulatory requirements.

Food security

There is growing concern among stakeholders regarding food security, and we are aware of the potential and relevance for our technology. We address some aspects of this issue through the CleanStar Mozambique project. Furthermore, some of our solutions have a positive impact on land use, and help produce more food with fewer resources.

Waste management

As a result of growing scarcity of resources and issues associated with waste, there is a need to effectively handle waste. We make efforts to reduce the amount of waste and to recycle as much as possible. We also provide solutions to our customers that help them reduce waste and treat wastewater.

Poverty

There is growing concern among stakeholders regarding poverty and the populations at the base of the pyramid. We are aware of the potential and relevance for our technology. Our business supports local areas directly and indirectly. We have also addressed this issue through the CleanStar Mozambique project.

Education

Contributing to education, especially within science understanding, is important for Novozymes' ability to attract the brightest scientific talent in the future, retain our license to operate and give back to our communities around the world.

Job creation

Job creation is an increasingly prominent issue among stakeholders, and we are aware of the potential of our technology, especially in sectors like biofuel development. Our business supports the creation of jobs in areas where we operate. Furthermore, we address some aspects of this issue through the CleanStar Mozambique project.

Combat HIV/AIDS

This is separately addressed in the U.N. Millennium Development Goals (MDGs). We are aware that this issue is relevant in certain geographical areas where we operate. None of our activities have a significant impact on the fight against HIV and AIDS.
 


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.

 

Sustaianbility trend spotting and target setting in Novozymes
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.