Sustainability governance in Novozymes
Novozymes’ purpose, strategy and long-term targets, which were introduced in early 2015, integrate sustainability at the heart of Novozymes. Sustainability is therefore 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 by the Board of Directors and Executive Leadership Team, with sustainability activities and targets 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
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.
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.
Corporate Sustainability also 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.