Health and Safety Policy
Finance and Legal Policy
Quality and Product Safety Policy
Novozymes continually strives to be an attractive, inspiring and high-performing workplace with a culture based on Novozymes' purpose and values.
To meet our objectives:
- We will ensure that our values ‘Dare to lead’, ‘Trust and earn trust’, ‘Connect to create’ and ‘Unlock passion’ are an integral part of our everyday behavior and work life.
- We will continuously develop the competencies of our employees and the leadership of our managers, in order to secure our innovative edge as well as our employee capability and job satisfaction.
- We will live up to internationally accepted standards on basic human rights and core labor standards in line with our commitment to the United Nations Global Compact. We will follow the “UN Guiding Principles on business and human rights”. Our commitments are outlined in our human rights and labor standards position paper.
- We will maintain a safe and healthy workplace and seek a good work–life balance.
Novozymes must be a safe and healthy workplace.
To meet our objectives:
- Management commits throughout the organization by driving and promoting a strong safety culture and by complying with all applicable occupational health and safety laws and regulations.
- We ensure that everyone is accountable and responsible for safe behavior and a good physical and psychological working environment.
- We integrate safety into work processes and decisions, including design, operation and management of facilities.
- We provide safety training for employees, contracted personnel and third party persons – only trained personnel are permitted to work at our facilities.
- We ensure knowledge sharing of incidents, near-misses, accidents and best practices to further improve and prevent recurrence.
- We set proactive targets and monitor performance to achieve continuous improvement.
We will work to improve our financial performance by setting high objectives for growth and value creation. We will ensure operational continuity through a high legal standard, and thereby also prevent fraud and protect business-critical information.
To meet our objectives:
- We will maintain a financial perspective in all important decisions and relations, in order to achieve ambitious financial targets and support and develop our position.
- We will ensure that our business is open, honest and in line with the United Nations Global Compact's principles on anti-corruption.
- We will comply with international financial reporting standards and ensure that the financial and sustainability information of the Novozymes Group provides a true and fair view of Novozymes’ assets and activities.
- We will maintain IT security and governance to ensure data confidentiality,
integrity and accessibility.
- We will advance and protect our business interests in compliance with the laws and regulations governing our activities.
We will offer significant bioinnovation and want to be seen as a reliable supplier of high-performing, safe products and competitive services.
To meet our objectives:
- We will seek knowledge of customer and market needs through dialogue and cooperation and convert this information into competitive offerings.
- We will fulfil agreements with customers, meet or exceed the expectations of our customers and partners, and always seek improvement to be able to increase quality in our products and services.
- We will continuously assess safety risk to ensure that all existing products and products under development are safe in use and handling. We will also continuously mitigate risk of fraud and adulteration in our quality systems to ensure food and feed safety.
- We will inform, assist and regularly update our partners in the correct and safe use of our products.
- We will develop and optimize, tools, systems and processes that enable all Zymers to work efficiently with a quality mindset.
- We will maintain and develop documented management systems that include risks and opportunities, internal and external communication and employee competencies to ensure compliance and continuously improve the quality and safety of our processes, products and services.
- We will identify and comply with all relevant legal and authority requirements.
We want to drive the world towards sustainability together with our customers and partners, while improving our own sustainability performance.
To meet our objectives:
- We will maintain robust management systems to monitor and control the social and environmental impact of our business processes.
- We will continuously improve our resource efficiency, prevent pollution, and minimize emissions and waste in our operations through regular assessments and maintenance.
- We will set ambitious sustainability goals and targets and communicate on our performance.
- We will actively seek dialogue with key stakeholders in order to gain insight into their expectations and promote sustainable development.
- We will communicate expectations on sustainability to our suppliers and follow up on their performance.
- We will build close relations in the communities in which we operate, and act as a good citizen.
- We will develop biosolutions and make quantitative assessments of the impact of our products in a life-cycle perspective.
- We will ensure safe handling of the microorganisms we use and comply with all relevant biosafety regulations.
- We will live up to the commitments we have made to globally-recognized principles on the utilization of genetic resources according to the United Nations Convention on Biological Diversity.
- We will comply with all relevant legal and authority requirements, and with our commitment to the United Nations Global Compact.
It is our policy to ensure employee engagement and direction, create goodwill with key stakeholders and influence the public agenda and legislation to achieve our ambition.
To meet our objectives:
- We will communicate in an open and honest way, ensuring that our communication is clear, consistent, relevant and timely, and that communications is integrated into in all decisions.
- We will use information technology professionally to boost communication, cooperation and knowledge-sharing.
- We will actively participate in industry associations and stakeholder organizations, as well as in broader international and global business associations.
- We will seek dialogue with key stakeholders and listen to peers, industry partners, academics, NGOs, governmental and civil society stakeholders.
- Within national and international laws and policy guidelines, we will put forward positions relevant to our business to policy makers and other interested parties. When doing so, we will communicate in a respectful and credible way, engaging stakeholders in a constructive dialogue.
- In order to ensure transparency in our outreach, we will make our corporate positions available via our website and annual reporting.
Novozymes position statement on animal testing
Novozymes’ goal is to eliminate the use of animal testing. But at present, animal testing is required by legal authorities as a precondition to product registration.
Novozymes uses animals for research, safety testing of products and for antibody production where no acceptable alternative methods exist. At present, legal authorities require animal testing as a precondition to product registration.
Our ultimate goal is to eliminate the use of animals and obtain safety measures by other means. We therefore find it important to continuously address the issues around the use of laboratory animals and to challenge the justifiability of this use. The need for data from animal testing should be questioned case by case.
In day-to-day business Novozymes:
- Strives to observe the principle of the three R's (replacement, reduction and refinement) and is actively investigating:
- Replacement of animal use by alternative methods, if applicable
- Reduction of the number of animals used where possible
- Refinement of methods to reduce pain and distress
- Assures compliance with Novozymes' policies through the internal Science Ethics Committee. No study involving laboratory animals can be made unless the protocol has been reviewed and approved by this committee.
- Requires that our suppliers (Contract Research Organizations) constantly consider and improve the welfare and the needs of laboratory animals.
- Provides appropriate education to all Novozymes' employees involved in studies with animals and upholds internal standards and procedures to ensure compliance.
- Engages in dialogue with key stakeholders.
Last revised October 2019
- Strives to observe the principle of the three R's (replacement, reduction and refinement) and is actively investigating:
Novozymes position statement on biodiversityNovozymes’ products are based on technologies found in nature. Protecting biodiversity is important to our business, and we adhere to the UN’s Convention on Biological Diversity.
Biodiversity represents all living organisms surrounding us. It’s the diversity of animals, plants, and microbes as well as the variety of habitats and ecosystems on Earth. Nature and the natural ecosystems provide humanity with beneficial goods and services – the so-called ecosystem services. There are provisioning services like food, clean water, and raw materials. There are regulating services like climate regulation, pollination, and water regulation. There are cultural services like recreation and spiritual values. And finally, there are supporting services like photosynthesis and nutrient cycling that secure the basis for the other services. Biodiversity and the ecosystem services are essential for a healthy, sustainable and a well-functioning world.
Unfortunately, biodiversity and the ecosystem services are under pressure due to human activities. The loss of biodiversity in recent years is alarming, and scientists describe the current development as the sixth mass extinction and one of the most important environmental challenges.
The link to sustainable development and the SDGsBiodiversity is an essential aspect of sustainable development, as a sufficient amount of biodiversity is a prerequisite for well-functioning ecosystem services that are vital for human well-being and sustainability. The conservation and sustainable use of biodiversity are addressed directly in the United Nations Sustainable Development Goals (SDGs) 14 (“Life below water”) and 15 (“Life on land”), but biodiversity is also indirectly necessary to achieve several of the remaining SDGs, e.g. 2 (“Zero hunger”), 6 (“Clean water and sanitation”), 12 (“Responsible consumption and production”, and 13 (“Climate action”).
Novozymes has embraced the SDGs in the core of the business to increase our positive world impact, and we acknowledge this often overlooked interrelation between biodiversity, ecosystem services and sustainable development.
Novozymes and biodiversityBiodiversity is a new focus area for the business sector, as companies try to understand their dependencies, impacts and responses related to biodiversity. Novozymes monitors developments in this area and regularly assesses how to incorporate best practice in our operations. Novozymes’ products, enzymes and microorganisms, are nature’s own technologies. Through so-called ‘bioprospecting’ Novozymes takes samples of fungi and bacteria in nature and use them to develop new biological solutions that help our customers improve their products and reduce their environmental footprint.
The United Nations Convention on Biological Diversity (CBD) is an international legal instrument for conservation and sustainable use of biodiversity. The objectives of the CBD include a fair and equitable sharing of the benefits arising out of the utilization of genetic resources. This is addressed in the Nagoya Protocol providing specific guidance on the principles of Access and Benefit Sharing (ABS) to avoid biopiracy of genetic resources.
Novozymes endorses the globally recognized principles in the CBD and ABS. As a part of our obligation towards the CBD, we only take samples in agreement with all relevant laws and regulations in the countries we operate in. In addition, we have stringent internal procedures including a database system for traceability of genetic resources to ensure that we live up to our commitments.
Last revised November 2017
Novozymes position statement on biofuels
Biofuels are a renewable energy source that can reduce CO2 emissions from the transport sector, create jobs in rural areas, and reduce our reliance on fossil fuels. Novozymes sees biofuels as an important part of the energy mix in the future.
Novozymes is the world’s leading supplier of enzymes for the production of first generation bioethanol for fuel - made from starch derived from corn and other grains.
Novozymes is furthermore leading the way in the development of enzymes and processes for the production of second generation bioethanol made from cellulosic plant residues and materials, such as corn stover, straw, bagasse and wood chips in close cooperation with other leading players in the field.
Biofuels constitute a small but rapidly growing part of the global energy supply. They are a renewable energy source with the potential to reduce CO2 emissions from the transport sector. Biofuels can also create economic opportunities for rural areas and developing countries. Thus, biofuels can be an important part of the energy mix of the future.
Novozymes has a sincere concern for environmental stewardship and sustainable development. We support the careful scientific and holistic evaluation of all relevant aspects of biofuel production and use, along with other alternative and renewable fuels needed for our future global energy supply. Novozymes actively supports international multi-stakeholder initiatives to develop market access to – as well as promote the use of – sustainable biofuels.
Potential benefits of production and use of biofuels
With policies and practices supporting sustainable land and resource use, the negative environmental, social and economic impacts can be limited and greatly outweighed by the benefits.
In short, the potential benefits of production and use of biofuels are as follows:
- Biofuels are made from renewable sources and can be made perpetually
- Biofuels replace and reduce reliance on fossil fuel
- Biofuels can cause significantly less CO2 emissions compared with fossil fuels
- Biofuels can stimulate development, particularly in rural areas and in developing countries
Last revised February 2017
Novozymes position statement on business integrity and anti-corruption
Corruption has a wide range of corrosive effects on markets and society in general. Accordingly, Novozymes has joined the United Nations Global Compact and supports working against corruption in all its forms.
As a global company with activities all over the world, Novozymes wants to show that it is possible to grow a healthy global business based on values such as responsibility, accountability, openness, and honesty. This way of doing business has characterized Novozymes for many years and will continue to do so.
To contribute to the fight against corruption Novozymes has established six principles for business integrity with which all employees, including executive leadership, and the board of directors must comply:
- Novozymes neither accepts nor offers bribes in any form
- Novozymes does not make facilitation payments
- Novozymes does not contribute to money laundering. All financial transactions must be documented
- Novozymes does not pay criminals for protection
- The value of gifts given and received must not exceed locally defined triviality limits
- Novozymes does not make financial contributions to political parties. Charitable contributions are subject to various restrictions
Novozymes maintains a web-based business integrity training program, which is mandatory for relevant employee groups and management, and which serves as a frequent reminder of the importance of integrity. It guides the employees in making the right decisions through customized cases and business integrity dilemmas.
All employees are strongly encouraged to seek guidance on ethical dilemmas from their manager as well as designated colleagues in finance, legal, compliance and local People & Organization (HR). Further, employees can anonymously raise any concerns about business ethics and corruption, including possible breaches of our integrity principles, through Novozymes’ Whistleblower System, and they can refer concerns about behavior perceived to conflict with Novozymes’ values and policies to Novozymes’ Ombudsperson. All concerns raised will be handled appropriately in accordance with internal procedures.
Executive Leadership, the Board of Directors and the Audit Committee receive reporting on all whistleblower reports and fraud investigations on a quarterly basis. Novozymes reports on all investigations of fraud and business integrity related matters in the annual report.
Last revised April 2017
Novozymes position statement on climate change
Addressing climate change is well-integrated within Novozymes’ business strategy. Novozymes believes that effective implementation of strong climate change policies and actions will help provide a clear roadmap for businesses to drive the world towards a low carbon future.
Novozymes has been recognized as a global corporate leader for climate change action. Novozymes enables climate change mitigation across its value chain through its biosolutions, while striving to reduce its own operational carbon footprint. Furthermore, Novozymes has a strong tradition of integrated reporting and is committed to transparently disclosing its climate change impacts.
Novozymes’ commitment to climate change action is based on the following four pillars:
1. Lowering Novozymes’ operational carbon footprintNovozymes has invested heavily to improve productivity and reduce the carbon footprint of its production. Since 2009, Novozymes has decoupled absolute CO2e* emissions from business growth. These improvements have been driven by the focus on two key areas – improvements in energy efficiency and investment in renewable energy.
Novozymes has annual targets aimed at keeping growth in energy consumption and CO2e emissions lower than organic sales growth. Novozymes also has a target to source 30% of its global energy consumption from renewable sources by 2020..
2. Mitigating climate change impacts across the value chainNovozymes believes that a transition towards a biobased economy that relies on renewable biological resources can assist the planet in being more resource efficient and tackling climate change. Its biosolutions in industries such as bioenergy and agriculture typically offer customers reduced greenhouse gas (GHG) emissions due to lower energy, water, raw material and chemical consumption compared with conventional technologies.
Novozymes measures how its biosolutions contribute to more sustainable business practices, and since 2004, has used the lifecycle assessment (LCA) approach to assess the environmental impact of its biological solutions from cradle to grave. A list of published LCA studies by Novozymes can be viewed here.
Novozymes works closely with customers to help them realize and demonstrate emission reductions within their own operations. Novozymes has a target to save 100 million tons of CO2e* annually by 2020, through customers’ application of its products. Novozymes’ supplier program on responsible sourcing seeks to ensure that its suppliers of directly sourced agricultural raw materials meet its requirements in terms of not contributing to further deforestation.
3. Transparent climate disclosureNovozymes was the first company in the world to publish an integrated annual report (2002). Novozymes’ environmental reporting includes independently audited, verified and assured data on GHG emissions from its operations, as well as estimates of emissions avoided by customers’ application of its products.
Novozymes reports its performance on climate change action to various reporting platforms such as CDP (formerly the Carbon Disclosure Project). Novozymes’ performance on these platforms is available on its website under the Sustainability Recognitions section.
4. Enabling a low carbon future
Novozymes actively engages in global discussions and partnerships with key stakeholders on several climate change issues. To enable a low carbon future, Novozymes supports:
- Public-private collaborations – to boost the research, development, deployment, and diffusion of low carbon technologies
As part of its engagement with the United Nations Sustainable Energy for All (SE4ALL), Novozymes supports the Sustainable Bioenergy Accelerator. Co-chaired by the UN Food and Agricultural Organization (FAO) and the Roundtable on Sustainable Biomaterials (RSB), this multi-stakeholder initiative aims to scale up the development and deployment of sustainable bioenergy solutions. Novozymes is also involved with the World Business Council for Sustainable Development (WBCSD’s) Low Carbon Technology Partnerships initiative (LCTPi) and the United Nations Framework Convention on Climate Change (UNFCCC’s) Global Climate Action Agenda. The company is participating in two key workstreams of the LCTPi - Climate Smart Agriculture and Low Carbon Fuels. The Low Carbon Fuels workstream has grown into Below50 in partnership with RSB and the UN SE4ALL, and focuses on growing the global market for low carbon transport fuels. Novozymes is a founding member of Below50.
- Robust policy frameworks – for private investments to decarbonize the global economy
Novozymes contributes to global positions advocating policy recommendations to UNFCCC, notably through its leadership roles within the UN Global Compact (UNGC), the International Chamber of Commerce (ICC), the United States Council for International Business (USCIB) and the WBCSD.
- A clear role for business (and other stakeholders which are committed to climate change action) – on implementing NDCs, capacity building, as well as climate change mitigation, adaptation, finance, and investment
Business has a valuable role to play within the development and deployment of low carbon solutions, as well as driving research and innovation. These inputs have been provided to UN climate negotiation processes and technical bodies, as well as via national consultations and dialogues. These activities should be continued and supported by all stakeholders working together to achieve the outcomes and ambitions of the Paris Agreement.
- Stable pricing for carbon – to give companies a reliable and predictable framework along with policy clarity to support their investment decisions
Novozymes is a leading member of the UNGC Climate Action Platform, which is a strategic partner to the Carbon Pricing Leadership Coalition led by the World Bank Group. Novozymes supports the UNGC Business Leadership Criteria for Carbon Pricing, which entails putting an internal price on carbon and engaging in responsible policy advocacy, based on national circumstances.
For more information on Novozymes’ progress on its targets and climate change action engagements, please see Novozymes annual report and its section on UNGC Communication on Progress.
*CO2e: Carbon dioxide equivalents; the standard unit in carbon accounting to quantify GHG emissions
Last revised April 2018
- Public-private collaborations – to boost the research, development, deployment, and diffusion of low carbon technologies
Diversity and equal opportunities
Novozymes position statement on diversity and equal opportunities
Novozymes is committed to developing a diverse workforce. Ensuring equal rights and promoting diversity furthers an international mindset, helps attract and retain talent, fosters innovation and encourages Novozymes’ willingness and ability to adapt.
Novozymes wants to make a positive impact in our growing world. To reach this ambition, we have to realize the full potential of our employees – not only of each individual, but also as a diverse group sharing the same purpose and values. Throughout the company, we need to deliver innovation of the highest level to grow and stay ahead. As innovation is about new ways of combining ideas, this is most likely to happen in a forum of highly qualified people with different backgrounds, cultures, generations, genders and competences. Therefore, diversity constitutes a potential competitive advantage to Novozymes.
In accordance with our values, we want to build on our heritage as a socially responsible company that recruits, promotes and develops people based on merit and in a way that supports diversity. Recruitment, terms of employment, promotion, and termination of employment are practiced without any distinction on the basis of race, color, ethnic, national or social origin, gender, religion, age, disability, political opinion, sexual orientation, or family responsibilities.
Novozymes’ commitment to ensuring equal opportunities and avoiding discrimination in the workplace extends to all global operations. To ensure local relevance it is addressed in a variety of ways at our sites to reflect local or national conditions.
Our first priority to increase diversity is to increase the number of women in our senior management measurably over the coming years.
Secondly, we want to strengthen our talent pipeline outside Denmark, as more non-Danes in management positions will catalyze a more global mind-set in Novozymes. It will also allow us to tap into a larger global pool of talent.
To promote diversity among leaders in the company, we have introduced specific requirements in our succession management systems to monitor diversity among the potential successors for leadership positions. Novozymes’ diversity initiatives are reviewed by the Board of Directors as part of the annual organizational performance process. Every year, we report the company’s diversity data in our annual report in line with applicable law and recognized international standards.
Novozymes has set as its target that at least 25 percent of senior management (Directors and higher) should be women in 2017. In 2020, the number should be 30 percent.
Novozymes’ Board of Directors has set the following targets for diversity on the Board:
- At least half of the shareholder-elected board members shall be independent in accordance with the recommendations of the Danish Committee on Corporate Governance. To ensure that Novozymes and its controlling shareholder share a common vision and common goals, it is desirable to have a number of board members representing the majority shareholder. In order to get an outside perspective on Novozymes’ business, it is also desirable to have a number of members who do not represent the majority shareholder.
- 40% or more of the shareholder-elected board members shall have substantial international experience from management in and of large corporations or institutions headquartered outside Denmark.
- One third or more of the shareholder-elected board members should be women.
All shareholder-elected board members are elected for one year at a time. Novozymes aims to meet the targets for diversity on the Board every year.
Employees can file complaints about discrimination to the Novozymes Ombudsperson. Non-employees, including job applicants, should bring discrimination grievances to the attention of the Head of Novozymes’ People & Organization department. Novozymes' Whistleblower Hotline may also be used.
Last revised June 2017
Novozymes’ position statement on gene editing
As a world leader in biological solutions, Novozymes believes we have an obligation to further explore the role of biotech innovation to help people and animals live healthier lives on a healthier planet.
Novozymes finds that used and regulated in the right way, biotech innovation that uses gene editing, as well as more traditional methods such as classical mutagenesis, to improve microorganisms, is part of the solution to recreate a sustainable balance in the way we live, grow food, secure clean water, provide sustainable fuel sources and much more.
Novozymes’ use of gene editing
Novozymes’ enzymes are not gene-edited. The microorganisms we use to produce enzymes usually are. Novozymes also produces and sells microorganisms, in some cases using gene editing to improve their properties or to combine useful properties from different organisms into one.
We acknowledge the concerns some people have on use of gene editing. We strive to be open about what we do, and we engage in dialogue around those concerns and doubts. Our position is supported by 30 years of scientific data that indicates that genetically edited microorganisms are safe*.
Regulatory framework and compliance
Genetically edited organisms used for fermentation or microbial products must be stringently regulated and tested before use. No untested, unproven product should be allowed into the environment. We are committed to using scientifically-sound tools in a way that is safe to humans, animals and the environment.
We support a regulatory framework for biotech innovation, including gene editing. The framework should focus on product features rather than the technology used in the process.
We operate in compliance with legislation and follow any guidance and requirements from regulatory authorities on biotech innovation classification.
Novozymes’ intention is to partner with companies/ NGOs within this field who work with gene editing as a viable method for making sustainable solutions that can help people – and the planet.
Last revised January 2020
*Around 30 years of historical data indicates that genetically edited microorganisms are safe. There are also a lot of well-regarded and trustworthy organizations, such as the World Health Organization, the American Medical Association and The Natural Academy of Science, that outwardly state that there is no reputable evidence to suggest that gene editing (modification) is unsafe.
Human rights and labor standards
Novozymes position statement on human rights and labor standards
Novozymes respects human rights as defined by the UN Guiding Principles (UNGP) on Business and Human Rights
Novozymes respects the International Bill of Human Rights, the International Labor Organization's (ILO’s) Declaration on Fundamental Principles and Rights at Work, and, since 2001, we have been a signatory to the United Nations Global Compact (UNGC). Novozymes is also a UN Global Compact LEAD company.
The 6 UNGC principles related to human rights and labor standards, which we support and report on are as follows:
- UNGC Principle 1: we support and respect the protection of internationally proclaimed human rights
- UNGC Principle 2: we work to ensure that we are not complicit in human rights abuses
- UNGC Principle 3: we support freedom of association and right to collective bargaining
- UNGC Principle 4: we support the elimination of all forms of forced and compulsory labor
- UNGC Principle 5: we support the effective abolition of child labor
- UNGC Principle 6: we support the elimination of discrimination in respect of employment and occupation
To demonstrate our respect for human rights, we have since 2012 integratedthe UN guiding principles on Business and Human Rights into our operations by: addressing human rights in operational policies and procedures, by carrying out due diligence and impact assessments in countries where we operate, and by offering grievance mechanisms to internal and external stakeholders.
We report on our performance on human and labor rights annually in our Communication on Progress (COP) to the UN Global Compact, which is also an integral part of our Annual Report.
Embedding human rights in operational policies and procedures
The UN principles are integrated in operational policies and procedures. For example, our “People Policy” and “People Standard” that relate to the management of employees and the “Novozymes Standard on Occupational Health and Safety” ensure that the UN principles are upheld in our organization. We require all our people managers to respect the human and labor rights and we take appropriate measures to avoid and mitigate adverse human rights impacts.
Human rights and labor rights are also included in our supplier performance management system, where Novozymes’ purchasers evaluate suppliers on criteria such as, quality, employee health and safety, human and labor rights and business integrity. In addition, we require all contracted suppliers to comply with our responsible purchasing standard which covers human and labor rights aspects as defined by the UN guiding principles. In case of a supplier non-conformity, an action plan needs to be established to either correct the supplier non-conformity or to shift supplier.
Due diligence and impact assessments
Our impact assessments are inspired by the UNGPs’ Protect, Respect and Remedy Framework. We carry out regular human rights impact assessments by involving stakeholders from relevant functional areas across the regions. Based on the outcome of the assessments, the necessary corrective actions are determined and implemented. We work continuously on awareness building and improving due diligence processes, and communicate internally on human and labor rights via and reporting.
Grievance redressal mechanisms
Grievance mechanism are in place for both employees as well as external stakeholders. Novozymes has a global ombudsperson as well as regional ombudspersons in each region. We also have a Whistleblower hotline for employees and suppliers to report suspicions of violations of law, including violations of human and labor rights.
Approved by Peder Holk Nielsen, President and CEO Novozymes
Last revised January 2019
Novozymes position statement on industrial biotechnology
Industrial biotechnology can improve the efficiency of processes both in industry and in everyday life, by saving energy, water and other raw materials while reducing waste. It is an important tool to create better lives in a growing world.
Biotechnology is the use of living cells to make useful products. For thousands of years, humans have enjoyed the benefits of using bacteria, yeasts, molds and the enzymes these produce, to make bread, cheese, beer and wine.
Nowadays, enzymes and microorganisms are used in the manufacture of a wide variety of products. From low-temperature laundry detergents and margarine without trans fats, to renewable fuels and antibiotic-free chicken feed. Mankind’s knowledge of fermentation and other biological processes has increased tremendously. Since the 1980s, gene technology has made industrial biotechnology even more efficient and made it possible to produce enzymes with new and better capabilities.
Novozymes finds that industrial biotechnology and gene technology can contribute to the sustainable development of society by offering:
- Lower environmental impact through better, more efficient and cleaner industrial processes
- More food, feed and fiber from the same resources and land use
- Renewable alternatives to petroleum-based fuels and chemicals
- New and better products for human and animal health
Novozymes is committed to sharing its knowledge about the potential of biology and industrial biotechnology with the public and other stakeholders outside of Novozymes.
Last revised August 2020
Novozymes position statement on responsible purchasing
Novozymes considers sustainability, commercial, and quality aspects when choosing suppliers.
Novozymes is committed to doing business with high ethical standards. Novozymes has been a signatory of the UN Global Compact since its establishment in 2001 and a LEAD member since 2011. Novozymes follows the Global Compact’s Ten Principles to meet fundamental responsibilities in the areas of human rights, labor, environment and anti-corruption. The Ten Principles guide Novozymes’ approach to doing responsible business across our value chain, including our selection of, and engagement with, our more than 10,000 suppliers.
Novozymes’ process for screening and evaluating the company’s suppliers ensures a sustainable and systematic sourcing practice. It has four steps:
- Inform: Novozymes has developed guidelines to inform new and existing suppliers of the company’s requirements to suppliers’ conduct and performance. The guidelines can be downloaded here: English, Portuguese, Chinese.
- Approve: Novozymes evaluates key suppliers according to assessment criteria such as:
Environmental stewardship, employee health and safety, human and labor rights, business ethics, and supply chain management
Pricing, on-time delivery, service, complaints, innovation, and credit rating
Product specifications, legal compliance, quality management systems, and audit acceptance
Novozymes monitors the performance of key suppliers through an ongoing evaluation process. In the long term the company believes that collaboration and engagement with suppliers will have a greater impact than control alone.
Even with the most effective risk management tools and systems, Novozymes can never guarantee that violations will not occur in its supply chain. If an incident occurs that violates relevant laws, regulations, or international conventions, Novozymes will contact the supplier to develop actions to help the supplier improve its performance. If suppliers are unwilling to improve, Novozymes will maintain the right to end the collaboration with immediate notice.
Last revised May 2017
Novozymes position statement on tax
We continuously 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 appreciate the need for maintaining a stakeholder dialogue on tax matters.
To meet our objectives:
- We follow national and international tax laws as well as the OECD guidelines on transfer pricing
- We work with tax risk management to handle financial and reputational risk
- We work to obtain a competitive tax level given the scope of our commercial operations and governmental tax incentives
- We seek good relationships with tax authorities to ensure compliance and to minimize risk of disagreements and double taxation
- We proactively engage in bilateral tax agreements to increase predictability
- 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.
It is important for Novozymes to make a positive contribution in the countries where we operate. Besides taxes, our economic contributions consist of duties, VAT, employee taxes, employee pension and benefit programs, procurement from local vendors and development of workforce, among others.
Last revised September 2020
Novozymes position statement on Water
Novozymes is guided by UN Sustainable Development Goals; SDG 6: Access to clean water and sanitation is one of our six focus SDGs. We are committed to ensure water use that is clean, efficient and respects the capacity of the planet thereby contributing to long-term water security for all.
Water is one of the most important resources that has been available to mankind and access to clean water is a fundamental human right. However, earth’s freshwater resources are put under pressure from industrialization, urbanization, climate change and the needs of a growing global population. Water crises have been among the top five global risks in terms of impact since last many years1. Increasing water scarcity and water pollution and lack of access to clean water for sanitation and hygiene are some of the top water challenges that the world is facing. These water challenges are often shared across countries, regions and industrial sectors and their impacts are more experienced by communities and ecosystems at the local basin/catchment level. Effective water management needs a local approach that is informed by science and context and collective action from various stakeholders as actions in isolation cannot alone solve the local and global water challenges.
Why is water important for Novozymes?
Water is material for Novozymes across the entire value chain. The production of Novozymes’ solutions depends on use of freshwater and results in wastewater generation. Many of the raw materials required in our operations are agriculture-based and need water for production. At the same time, some of Novozymes’ existing solutions specifically in textile and laundry enable customers address some of the water related issues by reducing water consumption compared with conventional methods and improving waste-water quality by replacing chemicals. Further, in the waste-water treatment industry, our solutions improve the processes. Therefore, water remains one of the top priority sustainability issues for Novozymes as it presents both risks and opportunities across our value chain.
Below is how we will address water related issues within our operations, the catchments that we operate in and in our value chain.
Reducing our operational impact on water
Traditionally, we have focused on improving water use efficiency and wastewater treatment within our own operations. However, by simply using less and focusing on our own operations, we cannot effectively contribute to addressing wider water challenges in the catchment and, therefore, it is important that we look beyond our own operations and work collectively with other water stakeholders. Our new approach for water stewardship reflects this. We have committed to manage water in balance with local conditions by 2030. This means we will pursue water stewardship through the context-based approach and setting targets that are informed by science at sites where relevant. We are aware that context-based approach for water is developing and the guidance on adopting this approach are limited. Existing guidance have been piloted only by a small number of global companies and trade bodies. Further the methodology for setting science-based targets for water are currently being developed. But we believe this is the right thing to do and will invest in the development of the concept and methodology through participation in the right forums eg: Science-Based Targets Network.
Below are the pillars by which we will ensure we deliver on our 2030 commitment:
- Taking a risk-based approach i.e. be aware of the water challenges at our sites and the catchments we are within
- Developing contextual water management programs for 100% of sites to focus our efforts where it is most needed and where we can make the maximum impact
- Implementing water targets that are informed by science to ensure that we operate within the renewable limits of the water basin
- Continuing investment in water re-use and recycle especially in water stressed regions
- Developing partnerships for innovation in water reduce and reuse technologies
- Engaging with relevant stakeholders-local or global, for collective action on water
In addition to above, we recognize the importance of access to clean water and sanitation (WASH) to our employees and the communities in the regions of our operation. We ensure that all our employees have access to clean drinking water, gender-appropriate sanitation facilities and hygiene at the workplace. We also support community projects that improve access to clean water and sanitation in regions where we operate and will continue to do so.
Mitigating water challenges through our solutions
Water is also the key to unlocking progress in several of the other SDGs. It is driving demand for solutions that reduce water consumption, improve water quality and clean wastewater and this where we think Novozymes existing solutions can contribute significantly. We are committed to reach more than 4 billion people in 2022 by providing laundry solutions that replace chemicals in detergents and enable clean and efficient water use. In addition, our water platform continues to focus on finding new solutions that can reduce water consumption, water pollution and also treat waste-water more efficiently. We are committed to drive innovation in the water sector through our own innovation pipeline and through open innovation platforms like HelloScience.
In future, we intend to collaborate with our suppliers and customers to identify ways by which we can work together to address global water challenges.
Our communication on water performance
We believe that accountability and transparent disclosure is significant to track progress and achieve meaningful impact. We report our water performance in our integrated Annual Report and CDP’s water security questionnaire and will continue to so.
1 Source: World Economic Forum’s Global Risks Report 2020