Transparency and disclosure

This section reports on recognition of our sustainability efforts, provides a third-party review of our Communication on Progress, links to our previous CoPs and an index of our reporting.

As a global company, Novozymes has implemented and wants to continue to implement values such as responsibility, accountability, openness, and honesty in the way we do business. We share and provide sustainability information through a variety of platforms. Communication efforts such as these give credibility to our work and help reach a large audience. Furthermore, these efforts also gain recognition of the professionalism with which we approach our sustainability goals. In addition to recognition from various indexes, in 2011 we have also had our CoP reviewed by third parties who are experts within the field of sustainability, thus keeping in touch with best practices.

Recognition of Novozymes’ sustainability performance

As a result of our vast number of efforts toward driving sustainability and communicating the same, we have been included in a host of indexes that benchmark our performance, and have received several recognitions, giving credibility to our work. We hope that this might also serve as inspiration to other companies and drive interest in sustainability. Some of these recognitions are presented below.
 
Global Reporting Initiative (GRI)
NovozymGRI_level_A_GRI_checked.jpges supports the Global Reporting Initiative's framework for sustainability reporting. Accordingly, GRI reporting has been an integrated part of Novozymes' reporting platform since 2002, and Novozymes adopted the G3 guidelines in 2007. Based on a thorough analysis of the GRI guidance and requirements, Novozymes and the Global Reporting Initiative declare Application Level A for Novozymes' 2010 GRI reporting. Our GRI reporting for 2011 is available in The Novozymes Report 2011.
 
Dow Jones Sustainability Indexes and SAM Gold Clas
DJSI_logo.jpgSAM-goldclass-2011.jpgFor the 10th time, Novozymes is the industry leader of the biotechnology sector in the Dow  Jones World and STOXX Sustainability Indexes. In addition, Novozymes achieved the SAM Gold Class rating in 2011 and 2010. Read more about this on our website and visit the Dow Jones Sustainability Indexes website.
 
Carbon Disclosure Project
CDP_logo.jpgNovozymes achieved a disclosure score of 85 out of 100 in the 2011 Carbon Disclosure Project (CDP), up from 77 in 2010, moving up strongly to 10th place in the Carbon Disclosure Leadership Index, a comprehensive field of more than 260 listed companies.
 
FTSE4Good Index Series
FTSE4good.jpgNovozymes continues to be included in the FTSE4Good Global and Europe indexes. FTSE4Good measures corporate responsibility performance based on globally recognized standards and facilitates investments in companies that meet the criteria laid down in the standards.

Ethibel EXCELLENCE Investment Register
Ethibel.bmpIn 2011, Novozymes was once again included in the Ethibel EXCELLENCE Investment Register, which is one of the benchmarking indexes for Socially Responsible Investment (SRI) products used by a growing number of European banks, fund managers, and institutional investors.

The Global 100 Most Sustainable Corporations in the World
Global100.jpgFor the 5th year in a row, Novozymes has been ranked among the Global 100 Most Sustainable Corporations in the World by Corporate Knights and Innovest Strategic Value Advisors Inc. (RiskMetrics Group), an index that aggregates information about companies that demonstrate exceptional capacity to address their sector-specific environmental, social, and  governance risks and opportunities.
 

Third-party opinion

In 2011, Novozymes' CoP has been reviewed by external stakeholders. The review by Mr. Viraf Mehta, Advisor, Centre for Responsible Business at Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) is published below followed by a response from Novozymes:
 
Review of the Report
“I have read Novozymes' UN Global Compact Communication on Progress (COP) report including The Novozymes Report 2011. The report has been prepared in accordance with the requirements arising from Novozymes' participation in the UNGC's LEAD initiative, and from the recently launched Blueprint for Corporate Sustainability Leadership.
 
Overall, I believe that the COP is an excellent start on reporting on the UNGC Principles at this advanced level that adequately covers the defined dimensions. The COP deserves commendation for its excellent portrayal of a company that continues to provide a leadership model with sustainability at the core reflected in a benchmark of transparency and disclosure.
 

I find that Novozymes is in a stage of transition regarding the enhanced focus on non-workplace social impacts of its business, in comparison with its acknowledged leadership efforts regarding environmental impacts, governance and ethics. Novozymes has indeed stepped up its focus on labor and human rights, in particular through the inspiration gained from Professor John Ruggie's UN Guiding Principles.

However, there remains scope to further improve this through the adoption of additional performance indicators and a human rights due-diligence across its operations and by applying rights based approach, for example, with existing initiatives supporting the Millennium Development Goals (MDGs).
 
Areas of excellence include:
1) Accurate account of the material sustainability challenges and trends pertaining to Novozymes' core business and priorities, performance targets and action plans, also in the context of The Novozymes Report 2011
2) Evident extent to which the governance and leadership of the company provides ownership, guidance and oversight to sustainability issues
3) Informative and useful depiction of key performance indicators in comparison with previous years
4) Action taken to support other sustainability related initiatives within the UN, including involvement with local Global Compact Networks.
 
Suggested areas of improvement include:
1) Introduction of country specific information for important developing country markets;
2) Information on the extent to which sustainability issues are taken into consideration in decisions related to mergers, acquisitions and other business investments
3) Further information on the steps taken to enhance the sustainability performance of key suppliers
4) More detailed account of how gender issues are integrated into the company's sphere of influence, using additional indicators or guidelines, e.g. the GRIs gender supplement
5) An account of how Novozymes has encouraged the participation of, access to, and feedback on its sustainability report
6) An account of collaborative sustainability initiatives with other companies in the Bio/enzyme sector and Novozymes' position on responsible/ethical lobbying, particularly in the public policy space in developing countries, including in the regulatory space.”
 
About Viraf Mehta Advisor, Centre for Responsible Business at GIZ

Mr. Viraf Mehta is a social anthropologist, currently advisor to the Centre for Responsible Business at Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), and country coordinator of the Responsible and Accountable Garment Sector (RAGS). Mr. Mehta is a member of several initiatives in the field of corporate responsibility, with a special focus on the human rights and business interface, including the UN Global Compact. He has been involved in corporate social responsibility initiatives since the mid-80s at the Tata Group (1986-2000), CEO of the NGO called Partners for Change (2002-2010), regional advisor for South Asia to the Institute for Human Rights and Business (2008-2010) among others.

 

Novozymes’ response

“Novozymes appreciates the feedback provided by Mr. Mehta and the conclusion that our COP meets the advanced reporting requirements of UNGC LEAD and the blueprint in Mr. Mehta's view. We are committed to further improving our understanding, handling and reporting of human rights impacts, which among others will be addressed in a project in 2012. The project will also look into integration of human rights considerations in our screening and acquisition process, and we will use all of Mr. Mehta's valuable inputs to scope and inspire this project. From 2012, we expect to report on basis of the GRI G4 guidelines and may use this as an opportunity to expand our reporting on gender diversity, stakeholder feedback process for reporting and industry collaboration and lobbying.”

 

Communication on Progress (CoP) archive

 

 

 

An archive of our previous Communication on Progress (CoP) reports can be found on the UN Global Compact website, where our continuous development and progress in reporting is tracked.

 

 

Index of Blueprint and Anti-Corruption Reporting Guidance

As a Global Compact LEAD company from 2011, Novozymes commits to reporting along the lines of the Blueprint guidelines. Below is an index of our fulfillment of the Action Items under dimensions 2 and 3 of the Blueprint. Dimension 1 and the cross-cutting Component of the Blueprint have been indexed through fulfillment of the Global Compact Advanced level reporting. In addition to this, we have also indexed our efforts to comply with the basic reporting elements under the Anti-Corruption Reporting Guidance issued by the UN Global Compact.
 
Index of action items reported under Blueprint dimension 2:
  
Dimension 2: Taking action in support of broader UN goals and issues
Component: Core Business Contributions to UN Goals and Issues
Action Item
Reporting Status
Location in the report/website
1.   Align core business strategy with one or more relevant UN goals / issues.

      tick1.gif
Engaging and taking action: CleanStar Mozambique, Rio+20
2.   Develop relevant products and services or design business models that contribute to UN goals /issues.

 

      tick1.gif 
Engaging and taking action:CleanStar Mozambique, COP17, Novozymes solutions
3.   Adopt and modify operating procedures to maximize contribution to UN goals / issues.
  

      tick1.gif

Engaging and taking action: CleanStar Mozambique, Rio+20, COP17, Corporate citizenship
Component: Strategic Social Investments and Philanthropy
Action Item
Reporting Status
Location in the report/website
4.   Pursue social investments and philanthropic contributions that tie in with the core competences or operating context of the company as an integrated part of its sustainability strategy.
     
 
 
      tick1.gif
Engaging and taking action: Corporate citizenship, CleanStar Mozambique
5.   Coordinate efforts with other organizations and initiatives to amplify – and not negate or unnecessarily duplicate – the efforts of other contributors.
     
 
      tick1.gif
Engaging and taking action: (overall), UN Global Compact Local Networks, Mentor Program – Air Greenland, etc.
6.   Take responsibility for the intentional and unintentional effects of funding and have due regard for local customs, traditions, religions, and priorities of pertinent individuals and groups.
 
 
 
     tick1.gif
Anti-Corruption: Approach and Today sections
Component: Advocacy and Public Policy Engagement
Action Item
Reporting Status
Location in the report/website
7.   Publicly advocate the importance of action in relation to one or more UN goals / issues.
 
 
      tick1.gif
CEO commitment and leadership, Engaging and taking action: CleanStar Mozambique, Rio+20, COP17
8.   Commit company leaders to participate in key summits, conferences, and other important public policy interactions in relation to one or more UN goals / issues.
 
 

      tick1.gif

Engaging and taking action:  CleanStar Mozambique, Rio+20, COP17
Component: Partnerships and Collective Action
Action Item
Reporting Status
Location in the report/website
9.   Develop and implement partnership projects with public or private organizations (UN entities, government, NGOs, or other groups) on core business, social investments and/or advocacy.
 
 
 
      tick1.gif
Engaging and taking action:  CleanStar Mozambique, Corporate Citizenship Mentor Program – Air Greenland, etc.
10.   Join industry peers, UN entities and/or other stakeholders in initiatives that contribute to solving common challenges and dilemmas at the global and/or local levels with an emphasis on initiatives that extend the company’s positive impact on its value chain.
      
 
 
 
      tick1.gif
Engaging and taking action:  CleanStar Mozambique, Rio+20, COP17, Mentor Program – Air Greenland, etc.
 
Index of action items reported under Blueprint dimension 3: 

 

Dimension 3: Engaging with the UN Global Compact
Component : Local Networks and Subsidiary Engagement
Action Item
Reporting Status
Location in the report/website
1.     Contribute to the building and operating of at least one UN Global Compact Local Network and help elevate performance of other companies through training, mentoring, COP peer review, etc.
 
 
 
     tick1.gif
Engaging and taking action: UN Global Compact Local Networks, Mentor Program – Air Greenland
2.     Encourage subsidiaries to engage with UN Global Compact Local Networks and to participate actively in events and activities.
 
 
     tick1.gif
Engaging and taking action:  UN Global Compact Local Networks
3.     Publish sustainability information related to each individual subsidiary separately or reference it explicitly in the Communication on Progress of Corporate Headquarters.
 
 
     tick1.gif
The Novozymes Report 2011: Financial, Environmental, and Social data
Component: Global and Local Working Groups
Action Item
Reporting Status
Location in the report/website
4.     Participate in relevant global or local working groups and share experiences, networks, tools and good practices with other UN Global Compact participants.
 
 
     tick1.gif
CEO commitment and leadership, Engaging and taking action: Rio+20, UN Global Compact Local Networks, Mentor Program – Air Greenland
5.     Take active part in defining scope and objectives of new working groups when relevant.
 
     tick1.gif
Engaging and taking action: Rio+20, UN Global Compact Local Networks
Component: Issue-Based and Sector Initiatives
Action Item
Reporting Status
Location in the report/website
6.     Join and help advance one or more existing UN Global Compact initiatives, e.g. Caring for Climate, CEO Water Mandate, Women’s Empowerment Principles, and Global Business Initiative on Human Rights.
 
 
 
     tick1.gif
7.     Spearhead need-driven development of new issue-based or sector initiatives within the UN Global Compact and the wider United Nations.
 
 
     tick1.gif
Component: Promotion and Support of the UN Global Compact
Action Item
Reporting Status
Location in the report/website
8.     Advocate the UN Global Compact to business partners, peers and the general public.
 
 
     tick1.gif
Engaging and taking action: Engaging with suppliers, Mentor Program – Air Greenland, Anti-Corruption: Tomorrow etc.
9.     Encourage suppliers and other business partners to join the UN Global Compact, and take on mentoring role on issues related to the initiative.
 
 
     tick1.gif
Engaging and taking action: Engaging with suppliers, Mentor Program – Air Greenland, etc.
10.   Participate in activities to further develop and strengthen the UN Global Compact.
 
     tick1.gif
Engaging and taking action: UN Global Compact Local Networks, Mentor Program – Air Greenland

 

Index of Basic Reporting Elements reported under the Anti-Corruption Reporting Guidance
 
Commitment and Policy
Element Code
Basic Reporting Element
Reporting Status
Location in the report/website
B1
Publicly stated commitment to work against corruption in
all its forms, including bribery and extortion
 
 
     tick1.gif
Anticorruption: Approach (vision, values, etc.)
B2
Commitment to be in compliance with all relevant laws,
including anti-corruption laws
 
 
     tick1.gif
Anticorruption: Approach (positions and policies)
Implementation
Element Code
Basic Reporting Element
Reporting Status
Location in the report/website
B3
Translation of the anti-corruption commitment into actions
 
 
     tick1.gif
Anticorruption: details of governance and management structure, Today – Development of Business Integrity Standards
B4
Support by the organization’s leadership for anti-corruption
 
    
     tick1.gif
Anticorruption: Today – Development of Business Integrity Standards (Bribery – No thanks! booklet)
B5
Communication and training on the anti-corruption commitment
for all employees
 
 
     tick1.gif
Anticorruption: details of governance and management structure (training, concerns, etc.)
B6
Internal checks and balances to ensure consistency with
the anti-corruption commitment
 
 
     tick1.gif
Anticorruption: details of governance and management structure (auditing)
Monitoring
Element Code
Basic Reporting Element
Reporting Status
Location in the report/website
B7
Monitoring and improvement processes
 
     tick1.gif
Anticorruption: details of governance and management structure (CBI), Today, Tomorrow