The value of integrated reporting

Transcription

1 The value of integrated reporting Jesper Lindhardt Director Triple Bottom Line Strategy & Performance Management

2 Novo Nordisk at a glance Key facts A focused pharmaceutical company with leading positions in diabetes, haemophilia and human growth hormones Headquartered in Denmark, approx. 40,000 employees in 75 countries, with products marketed in more than 180 countries Double digit top line growth driven by diabetes pandemic Significant growth opportunities fuelled by global presence and strong R&D pipeline Values-based management, guided by the Novo Nordisk Way and the Triple Bottom Line business principle Global leader in diabetes care Global insulin market share: 47% North America: Market share 39% International Operations: Market share 56% Global/regional headquarter Europe: Market share 49% Manufacturing Japan & Korea: Market share 49% China: Market share 58% R&D facility Source: IMS MAT Feb 2014 volume figures

3 Take-home messages on integrated reporting 1. It is really about better management 2. Tells the full story of how value is created 3. Wins trust and build reputation with stakeholders

4 The Triple Bottom Line - our way of doing business

5 Integrated management of business processes Stakeholders - Systematic trend spotting - Reputation tracking - Media tracking Performance - Balanced Scorecard - Personal performance goals - Long-term incentive programme - Annual reporting Integrated thinking in key business processes Governance - Articles of Association - Policies and strategies - Boards and Committees - Annual sustainability review by Board of Directors Aspirations & goals - Strategic long-term targets and 2020 aspirations - Specific short-term targets

6 From stand-alone sustainability to integrated reporting Sustainability Report Environmental Report Annual Financial Report Environmental and Social Report Social Report Environmental and Bioethics Report Integrated Annual reporting

7 A clear purpose Ensure that Novo Nordisk lives up to all applicable legal and reporting obligations and standards as a listed company Explain the investment case to existing and potential investors PositionNovo Nordisk as a leader within diabetes, protein-based therapies and sustainability to a broad range of Novo Nordisk s stakeholders

8 Long-term targets on all dimensions of the Triple Bottom Line Long-term targets from Annual Report 2012

9 The efforts to reduce C0 2 emissions have generated direct financial benefits Example of innovative partnership as part of climate strategy Impact Accumulated impact from all climate strategy initiatives : 150,000 tons of CO 2 reduced from energy savings projects DKK 154 million total investment From 2010, Danish production sites, including the energy-intensive insulin production have been powered by green electricity 2.1 years average payback time DKK 201 million net savings

10 Indonesia has major barriers to diabetes care 7.6 million people live with diabetes in Indonesia 118,000 people with diabetes per endocrinologist <1% achieve treatment targets 6 out of 10 are unaware that they have diabetes illustrative possible complications

11 Education benefits patients and business Education of healthcare professionals Value to society Value to us in collaboration with Steno Diabetes Center and the Indonesian Society of Endocrinology 3,600 Healthcare professionals trained 26,700 patients educated 14% annual growth of people with diabetes treated with insulin 60% of people on insulin reached with our products Patient recognition for dedication to change diabetes and innovative products

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13 Trust, transparency and performance Some may wonder why business transparency matters. Transparency leads to better performance and accountability. Companies that are transparent perform better over time, and ultimately are more successful. Michel Barnier European Commissioner for Internal Market and Services October 2013

14 Take-home messages on integrated reporting 1. It is really about better management 2. Tells the full story of how value is created 3. Wins trust and build reputation with stakeholders

15 Questions?

16 Complimentary communication UN Global Compact TBL Quarterly Blueprint for Change Programme Environmental Profit & loss account