Sustainability is governed at the very top level of Novozymes – Board of Directors and Executive Leadership Team – and sustainability activities and targets are anchored and executed across Novozymes’ functions and operations.
Sustainability governance in Novozymes
Novozymes’ purpose, strategy and long term targets, which were introduced in early 2015, integrate sustainability at the very core of Novozymes. Sustainability has hereby become a key component of business strategies and management processes across Novozymes. This has led to the dissolving of Novozymes’ Sustainability Board, which previously was the governing body of Novozymes’ sustainability strategy, targets and sustainability-related activities. Today, sustainability is governed at the very top level of Novozymes – Board of Directors and Executive Leadership Team – and sustainability activities and targets are anchored and executed across Novozymes’ functions and operations.
Board of Directors
Novozymes’ Board is responsible for ensuring the right management and organizational structure in Novozymes and has the mandate to decide on the strategic direction of the company. The Board has worked together with the Executive Leadership Team on refining the new company purpose, developing its strategy through 2020 and setting new long-term targets. The Board is also responsible for overseeing financial, social and environmental performance as part of the Executive Leadership Team’s day-to-day running of the company. As sustainability is such an integral part of Novozymes’ strategic direction, the whole Board is involved in sustainability oversight. We see this as a best practice approach to sustainability governance.
Executive Leadership Team
The Executive Leadership Team (ExLT) is responsible for overseeing strategy execution and defining the company’s ambition levels. Sustainability performance in Novozymes is high priority and therefore included in the ExLT’s incentive programs alongside financial performance indicators. Novozymes’ sustainability targets are owned by ExLT who are responsible for ensuring that sustainability activities contribute to business priorities and respond to trends and issues. Sustainability KPIs are included in ExLT scorecards which are reviewed quarterly.
Senior management develops and executes initiatives and activities to support Novozymes purpose, strategy and long term targets. Incentive programs involving sustainability performance are also part of senior management’s remuneration. In 2014, Novozymes launched group-wide employee stock-option programs for all employees, incentivizing sustainability performance throughout Novozymes.
Sustainability is managed by two teams, Corporate Sustainability and Sustainability Business Development, both part of the Research, Innovation & Supply organization. Corporate Sustainability works to ensure that Novozymes is able to inspire and influence the global sustainability agenda while conducting sustainability trend, stakeholder and materiality analyses, integrating learnings into the business, and reporting on progress. Sustainability Business Development works with a range of business units to help identify and leverage sustainability drivers for business growth – incl. conducting Life Cycle Assessments to expand product value propositions. Regional sustainability agendas are driven by the Regional Heads of Sustainability located in China, India, USA and Brazil.