Novozymes strives to substantiate a commitment to make positive economic contributions to our stakeholders including society by actively assessing economic impact from our business. It is important for Novozymes to make a positive contribution in the countries where we operate. Our economic contributions consist of taxes, duties, VAT, employee taxes, employee pension and benefit programs, procurement from local vendors and development of workforce, among others.
At Novozymes we strive to integrate sustainability into all our business areas on a continuous basis and, accordingly, we are committed to the Triple Bottom Line reporting approach. But we also look at Novozymes’ broader economic impact on society at large. We monitor and disclose data on who benefits from the value that we create as a company on a yearly basis:
A large part of our total revenue goes to purchasing of goods and services from local and international suppliers.
In some of our local communities, we play a significant role through creation of jobs and value creation. As an example, we have worked with local suppliers in Brazil to develop local raw materials that can replace imported goods for enzyme production. In Kalundborg in Denmark, we are a big employer. In 2010, 48% of Novozymes’ gross value added was distributed to employees. This includes wages and benefits, pensions (contribution and benefit plans), stock-based payments, other employee costs, and social security costs. The latter often vary from country to country.
Furthermore, 9% of gross value added consists of corporation tax payments. Novozymes work to fulfill our tax obligations in the countries where we operate. We seek to obtain a competitive tax level in a fair and responsible way, and with full regard to national and international laws and regulations. We seek dialogue and openly and honestly communicate on tax with the aim of giving our stakeholders relevant insight to understand our financial results. As for other business information, communication needs to be balanced with respect to confidentiality. Read more about Novozymes’ Tax policy.
Please also refer to Novozymes’ performance on economic indicators as defined by Global Reporting Initiative (GRI).