Sustainability is a key part of our purpose and strategic direction. Our governance structure reflects this. It anchors sustainability at all levels of decision making in our organization.
Our Board of Directors and Executive Leadership Team
Our Board of Directors provides input to our Executive Leadership Team (ExLT) on our overall approach to sustainability. The Board also signs off on sustainability-relevant targets and remuneration policies. Our ExLT integrates sustainability into our business strategies, innovation pipeline and external positioning. As part of the Team’s day-to-day running of the company it also oversees financial, environmental and social governance (ESG).
Our Corporate Sustainability Committee
Our Corporate Sustainability Committee reports directly to the ExLT. This committee also integrates sustainability into Novozymes’ business strategies and innovation pipeline. That helps us deliver solutions that meet the needs of society and drive sales growth. The committee members represent various functions from senior leadership. It's chaired by the Executive Vice President of People, Sustainability & Brand function.
Together, the ExLT and Corporate Sustainability Committee set non-financial targets and conduct quarterly performance reviews.
Our global sustainability team
This team works across all functions. It ensures we understand, influence and leverage the global sustainability agenda to support our strategic objectives. The Global Sustainability team also secures an internal foundation of responsible business practices. It works with a range of stakeholders to integrate sustainability into key processes across our company. By engaging with investors, customers, and key non-commercial stakeholders, the Global Sustainability team helps shape markets and enable growth. It also supports annual reporting and other communications activities. It conducts trend analyses and stakeholder mappings, integrating key learnings into business strategies. It develops documentations such as lifecycle assessments. These give our sustainability value propositions a solid foundation. Regional sustainability managers also drive local sustainability agendas where we operate.
"At Novozymes, we’re continuously striving to become more sustainable. To keep our focus clear, we tie incentive programs to sustainability performance."
Morten Engaard Rasmussen
Executive Vice President, People, Sustainability and Brand
Performance & remuneration
Our incentive programs reward sustainability. ExLT and Senior Leadership Team scorecards include sustainability KPIs. These are reviewed annually. Sustainability metrics are also included in Executive and senior management’s remuneration programs. In 2019, we announced a new long-term incentive program (LTIP) for the ExLT. This covers the performance period 2020-2022. It includes an explicit weight on sustainability (20% of LTIP).
To unlock the sustainability component, we need to perform above a certain threshold on four sustainability parameters by the end of 2022. The four parameters are climate, water & circularity, workplace, and employees. The sustainability component will reflect performance on each parameter on a pro-rata basis. You can find details of the current remuneration policy for our Executive Management and Board of Directors here.
In 2019, we also established a new incentive program for all employees covering the period 2020- 2022. These targets relate to the calendar years 2020-2022. They cover economic profit, annual organic sales growth and the same four sustainability parameters. The sustainability targets for the period 2020-2022 carry a total weight of 20% in the program.