Novozymes’ growth and long-term success are influenced by developments around the world, and how we perceive these changes impacting our business. The materiality matrix reflects the importance of those issues to our key stakeholders versus their impact on Novozymes, and it is used to guide our priorities for both our strategy and our reporting.
As a responsible corporate citizen, Novozymes continuously strive to strengthen our governance and management of these material issues. We have external targets/flagship initiatives for many of our material issues.
Our materiality assessment process
Novozymes’ materiality assessment is a systematic and rigorous process that has been aligned with the principles of double materiality. It allows us both to evaluate whether Novozymes has an impact on environment and society and to identify how ESG issues affect the creation of long-term value. The process integrates input from external stakeholders, trend analyses and internal engagement with relevant departments including Investor Relations, Risk Management & Controls, Quality, Sustainability and our commercial divisions. This process results in a materiality matrix of economic and ESG issues.
Novozymes conducts a comprehensive materiality assessment every two to three years to identify current issues material to our stakeholders and our business. This comprises a review of the assessment methodology, detailed desktop research to identify the latest trends and ESG issues, and active and extensive stakeholder engagement. Between assessments, we conduct annual materiality refreshes, where we review our existing material issues for their relevance and importance to Novozymes and our stakeholders by means of evidence-based research and analysis of stakeholder opinion through proxy sources.
Our Materiality matrix in 2022
In the past couple of years, various global movements and the COVID-19 pandemic has led to an increased focus on how companies manage social issues, like diversity and inclusion and labor practices. As a result of the materiality assessment performed in 2021, two new issues were added: Supply chain security and Diversity & Inclusion.