Green week, CBS, 23 Sep Susanne Stormer Vice President Corporate Sustainability
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1 Green week, CBS, 23 Sep Susanne Stormer Vice President Corporate Sustainability
2 2 Let s get things straight: Definition of CSR and corporate sustainability Respect for applicable legislation, and for collective agreements between social partners, is a prerequisite for meeting that responsibility. To fully meet their corporate social responsibility, enterprises should have in place a process to integrate social, environmental, ethical and human rights concerns into their business operations and core strategy in close collaboration with their stakeholders, with the aim of: maximising the creation of shared value for their owners/shareholders and for their other stakeholders and society at large; identifying, preventing and mitigating their possible adverse impacts. European Commission, October 2011, A renewed EU strategy for Corporate Social Responsibility A company's capacity to prosper in a hyper-competitive and changing global business environment by anticipating and managing current and future economic, environmental and social opportunities and risks while focusing on quality, innovation and productivity to create competitive advantage and long-term value. SAM/Dow Jones Sustainability Index A sustainable business is one that delivers value for investors, customers and employees, improves the living standards of its employees and the communities it touches, makes wise use of natural resources, and treats people fairly. Aron Kramer and Zachary Karabell, Sustainable Excellence
3 3 We believe that a healthy economy, environment and society are fundamental to long-term business success Meeting the needs of the present without compromising the ability of future generations to meet their own needs. Sustainable development has three dimensions: Economic, environmental and social development. The Brundtland Commission
4 365 days of fame: the most sustainable company on Earth 4
5 So what is our recipe for success? 5
6 6 The Triple Bottom Line is how we do business The company seeks to conduct its business in a financially, socially and environmentally responsible way. Articles of Association, objectives
7 7 We have an ambition to be a sustainable business Our ambition is to strengthen our leadership in diabetes. We aspire to change possibilities in haemophilia and other serious chronic conditions. Our key contribution is to discover and develop innovative biological medicines and make them accessible to patients throughout the world.
8 8 And we have a values-based management approach 1. We create value by having a patient centred business approach. 2. We set ambitious goals and strive for excellence. 3. We are accountable for our financial, environmental and social performance. 4. We provide innovation to the benefit of our stakeholders. 5. We build and maintain good relations with our key stakeholders. 6. We treat everyone with respect. 7. We focus on personal performance and development. 8. We have a healthy and engaging working environment. 9. We optimise the way we work and strive for simplicity. 10. We never compromise on quality and business ethics.
9 9 We pursue a holistic strategy that goes beyond business as usual Patient value proposition The business of health requires a patient centred approach Disease Awareness Illustrative Service and support Patient Advocacy Community Access to Health Treatment Access to Education Innovative Products it is my aspiration that health will finally be seen not as a blessing to be wished for; but as a human right to be fought for. - Kofi Annan, former secretary general of the United Nations
10 10 Changing Diabetes is our promise to improve health and quality of life Improve health outcomes for people with diabetes Expand access to affordable care worldwide Prevent diabetes in future generations Drive awareness and public policy DAWN2 Changing Diabetes barometer Healthcare professionals and patient training Action on Diabetes Changing Diabetes 40by20 Patient Ambition LDC pricing policy Changing Diabetes at the Base of the Pyramid Changing Diabetes in Children Changing Diabetes in Pregnancy Changing Future Health World Diabetes Day Changing Diabetes Leadership Forums Changing Diabetes Village Team Novo Nordisk
11 How did we get there? Here is a documentary of our journey 11
12 12 Defining moments have shaped our approach 2001 AIDS drug court case in South Africa and access to care s Enzymes and allergy s Genetic engineering and the impact on environment Oil for Food and business ethics Occupational health and safety Environmental protection Social justice and economic growth Globalisation
13 13 Our learnings have changed our understanding of stakeholders 1970 Customer-driven 1990 Stakeholder management
14 14 from engagement to partnerships 2000 Stakeholder engagement 2012 Multi-stakeholder partnerships
15 We adhere to global frameworks OECD Guideline for Multinational Enterprises ILO Declaration of Principles for Multinational Enterprises UN Guiding Principles on Business and Human Rights UN Global Compact Ten Principles ISO Guidance Standard
16 16 Delivering sustainable value means that NEW BUSINESS We grow our business by exploring and pursuing new opportunities to leverage TBL as an asset and an engine for business development COMPETITIVE BUSINESS We strengthen our business by driving and accounting for added value creation through the TBL approach RESPONSIBLE BUSINESS We protect our business by driving and accounting for TBL performance in accordance with the Novo Nordisk Way
17 Presentation title Date And the bar keeps rising!
18 Stories of responsible action across our value chain R&D Animal welfare Clinical trial ethics Quality & Regulatory Patient safety Production Responsible sourcing Resource efficiency Sales & marketing Access to care Transparent disclosure of relationships
19 Presentation title Date And we share our achievements and challenges
20 The way forward is business integration: Documenting the link between responsibility and business 20
21 21 NADINE ABRAHAMS AND TAMSYN LA VITA In good company, South Africa Nadine has type 1 diabetes One of the challenges of embedding responsible and sustainable business practices is measuring the value created for both society and the organisation. This is why we have created the Blueprint for Change Programme to better understand, communicate and optimise the shared value created through our Triple Bottom Line business principle.
22 minimising downside maximising upside 22 the Blueprint for Change Programme is based on a holistic shared value creation model short term long term Developed by Novo Nordisk and Accenture
23
24 Multiple diabetes issues lead to poor quality of life for many living with diabetes in Indonesia There are 5 barriers to diabetes care. Each consists of a list of issues. There are 4 issues that are key in Indonesia. Due to issues and barriers to diabetes care, less than 1% of people living with diabetes achieve treatment targets. Low public awareness about diabetes Inequity of healthcare supply and demand Insufficient treatment and care Lack of resources
25 Novo Nordisk invested ahead of the diabetes curve putting the patient in the centre creating shared value We are investing ahead of the curve If we work together with a patient-centric mind-set, we can change diabetes in Indonesia. It is part of our Triple Bottom Line business principle. It is how we create shared value.
26 key outcomes response issue Addressing diabetes issues through our Triple Bottom Line creates value to society Low public awareness about diabetes Inequity of healthcare supply and demand Lack of resources Insufficient treatment and care World Diabetes Days INSPIRE training programme for internists and GPs Government support and investments in public health Patient education and quality improvement programmes (SQAT) 68,000 people reached Invested almost 400,000 USD 11% knowledge gain among internists 34% knowledge gain among GPs By the end of 2012 more than 1,200 internists and 429 GPs have been trained 2.1 million USD has been invested in programmes that directly reach the public (not the full investment) 26,700 people benefited from patient education by 2012 We will have reached more than 41,000 people at over 4,100 educational activities by the end of 2013
27 and to Novo Nordisk Potential growth of insulin market Attrition rates, Indonesia, Novo Nordisk Indonesia PT evoice scores since 2008
28 New Geographies of Corporate Sustainability Expert interviews Brazil, China, India Desk research Workshop pre-reads BSR synthesis Scenario input UN GC workshops Brazil, China, India
29 New geographies of Corporate Sustainability Country characteristics: Business sector key driver of CSR Embrace of international standards Powerful civil society State vs. federal coordination challenges Key CSR issues: Biodiversity Education Labor conditions Corruption Country characteristics: Widespread local philanthropy Rise in social entrepreneurship Fragmented civil society Weak government impact Key CSR issues: Poverty Access to basic needs Corruption Country characteristics: Government driven approach to CSR CSR as soft competitive power Foreign MNCs expected to localize Growing public awareness of CSR Key CSR issues: Product safety Environment Corruption Labor conditions
30 New geographies of Corporate Sustainability Possible implications for Novo Nordisk Deeper understanding of our global landscape Cultural sensitivity Tracking of local stakeholders and their expectations Foundation for shaping proactive local CSR approach NN increasingly expected to demonstrate societal value contribution in individual markets Continuation of existing global corporate sustainability strategy but growing need for developing and implementing local strategies and capabilities
31 Reviving the Brazilian Cerrado the richest savannah in the world The savannah Cerrado A local touch A holistic value proposition novoeco Novo Nordisk acquires Biobras, 2003 Production site expands to its current size of 47,000 m2 and around 800 employees 2008, senior management at site sees an opportunity to take environmental responsibility a step closer to home. The degraded area became an inspirational idea for Cerrado recovery The site has achieved reductions in its use of resources and made steps to limit the environmental impact from its activities NovoECO, employee driven initiative to revive the degraded area surrounding site Montes Claros Starting in 2009, Novo Nordisk employees have been bringing the degraded area back to life So far, more than 1,200 seedlings from native flora species have been planted and the area is now recovering back to its Cerrado roots Recovered area has helped the site reduce CO2 through trapping. More than eight tons of CO2 since 2009 A composting area has been designated where the organic waste produced is transformed into compost to be used in green areas By using treated waste water for irrigation of the site s gardens and grass, has saved a daily consumption of 210 m³ of water and realised daily savings of R$1394 (approx DKK) Return of native wildlife to the recovered area
32 Four ways to make your production greener # 1 Design # 2 Green Sourcing # 3 Taking a bottomup approach # 4 Partnering to do more Water consumption for the production of one cartridge of insulin Total water consumption for site Chartres Thinking environmental performance into the design in China Exploring all options to find the one that is environmentally friendly and economically feasible in Japan Setting ambitious goals that spur bottom-up innovation in France Turning wastewater into energy through persistency and partnership in Denmark
33 Presentation title #1 Design Thinking environmental performance into the design in China A step-by-step approach TWO NOVO NORDISK EMPLOYEES CONSTRUCTION PLANS ENVIRONMENTAL ASSESSMENT HEATING, VENTILATION AND AIRCONDITIONING (HVAC-SYSTEMS) 10 million kwh electricity saved a year 6 million DKK (one million US dollars) operation cost cut saved a year
34 Presentation title #2 Green sourcing Exploring options to find a solution that is environmentally friendly and economically feasible in Japan From natural gas, coal and oil to green power certificates 0,7% million DKK. saved anually from 2005 to % renewable energy from biomass and wind from 2013 (corresponding to 1,900,000 kwh a year)
35 Presentation title #3 Taking a bottom-up approach Setting ambitious goals that spur bottom-up innovation in France Water consumption for the production of one cartridge of insulin Total water consumption for site Chartres more than 127,000 DKK (22,000 US dollars) savings
36 Presentation title #4 Partnering to do more Turning wastewater into energy through persistency and partnership in Denmark The Kalundborg Symbiosis A partnership between Novo Nordisk, Novozymes together with local farms, municipal utilities and other companies Costs of treating wastewater are reduced Biogas reactor contributes to expanding the green energy grid and reducing the CO2 emissions associated with our wastewater treatment Basically, we are pulling the energy out of the wastewater before disposing of it this makes a good business case says Jan Hoff, SVP of Diabetes Active Pharmaceutical Ingredients 47,000 MWh of electricity a year
37 Simply green: Electric vehicles
38 and bikes at work
39 39 Leading the way towards sustainability We need Boards everywhere to put sustainability at the heart of their agenda. As Board members of LEAD companies you have a unique responsibility. I encourage you to pilot the new LEAD Board Programme and help show the power of Boards to unlock the value of corporate sustainability. - Ban Ki-Moon, Secretary General, United Nations
40 40 Making change happen There is only one way Be the change you want to see in the world. Mahatma Gandhi For more information go to: novonordisk.com/sustainability
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