Approach
We are committed to conducting its business in a financially, environmentally and socially responsible way. As climate change has global implications on all three dimensions of the Triple Bottom Line, taking steps to reduce the company's impact is both an act of corporate responsibility and risk mitigation. Recognising that climate change - as the diabetes pandemic - is related to the consumption and lifestyle trends of high- and middle-income economies, climate change is also an unprecedented opportunity to bring the world on a healthier, more sustainable course.
Credit for much of the company's progress in carbon management is due to the hard work and diligence of energy stewards placed throughout the organisation. The stewards and other utility staff serve as a small army of eyes and ears within production facilities, looking for ways the company can improve.
Visit our sustainability website to read our position on climate change
Reaching the CO2 target
The CO2 emissions from energy consumption decreased from 2008 to 2009 by 32% (69,000 tons). Close to half of this is due to the decrease in energy consumption of 12%, which is mainly due to optimisations at the insulin bulk production in Kalundborg, but also the cLEAN® programme and energy-saving projects at many other sites have contributed to the decrease in consumption.
The other half is attributable to the Dong Energy Partnership in Denmark and the purchase of electricity from Horns Rev II - an offshore wind turbine farm in the Northern Sea. The 2014 target for CO2 emissions is thus reached five years ahead of schedule.
Transportation
In November 2009, executive management approved extending the scope of Novo Nordisk's climate action programme to include emissions from transportation throughout global operations. Estimates indicate that in 2007, emissions from company cars, product distribution and business travel corresponded to approximately 50% of emissions from production and hence approximately one third of total emissions. Of this quantity, 45% stems from the car fleet, 30% from product distribution and 25% from business travel.
In addition, Novo Nordisk's activities result in a carbon impact from upstream transportation (supply chain) and commuting, which will be dealt with at a later stage.
With the conversion to renewable energy in Denmark, total emissions related to production are projected to decrease, and the share of emissions from transportation will be higher as of 2010. This highlights the need for action.
Focus will be on company cars, product distribution and business travel. In 2010 we will conduct a pilot project on company cars. A new target for production will also be set in 2010.
Carbon Disclosure Project (CDP)
Novo Nordisk has responded to the Carbon Disclosure Project since the first rating was made in 2003. In the 2009 Global 500 CDP report Novo Nordisk's disclosure score was up by 17 points from 56 in 2008 to 73. Novo Nordisk ranks 16 in the Nordic Carbon Disclosure Leadership Index as it was reported at our sustainability website.
Engaged employees
Achieving the CO2 reduction target relies on communicating its importance to employees and engaging them in the climate cause.
In 2008, an internal climate action campaign was launched under the voluntary employee programme TakeAction! recognising that it takes people to fight climate change. The campaign includes tips on climate friendly actions and ideas for local actions such as car pooling or biking, plant trees or raise funds for climate projects.
In 2009, Novo Nordisk's employees around the globe joined the WWF Earth Hour 2009, to show commitment to the climate cause. In March 2007, former US Vice President and climate change activist Al Gore made a motivational speech about climate change to 300 employees at Novo Nordisk headquarters in Bagsværd, Denmark. In May 2009, Al Gore visited Novo Nordisk again in connection with the World Business Summit on Climate Change.
Advocating for better climate
Recognising the responsibility of business in tackling the global climate challenge, Novo Nordisk is engaged in a range of climate advocacy activities.
Copenhagen Climate Council
The Copenhagen Climate Council is an independent global initiative gathering business leaders from Europe, the Americas, Asia and Oceania and leading politicians, authorities and scientists. The Copenhagen Climate Council has worked to promote a broad global dialogue and build momentum for achieving an ambitious, global and binding treaty at the UN Climate Summit in Copenhagen in December, 2009.
In 2009, the main activities of the council were the World Business Summit on Climate Change in May and a business event at the Kronborg castle during the COP-15 [link to article on World Business Summit]. Held in May 2009, the outcome of the World Business Summit was a list of six items that the business community believes to be necessary ingredients of a new, effective climate agreement. The summit was supported by the Danish government, UN Global Compact, the World Business Council for Sustainable Development and others. See the Copenhagen Call as presented on the World Business Summit on Climate Change, Copenhagen, 24-26 May 2009.
The UN Global Compact: Caring for Climate
Novo Nordisk has also signed up to the United Nations-supported statement, 'Caring for Climate: The Business Leadership Platform', launched at the Global Compact Leaders Summit in Geneva in July, 2007.
Prince of Wales Corporate Leaders Group on Climate Change
Novo Nordisk is a signatory to the Bali Communiqué, the Poznan Communiqué and the Copenhagen Communiqué of the Prince of Wales Corporate Leaders Group on Climate Change.
Partnerships
Recognising the complex and cross-cutting nature of climate change we have taken a partnership approach to dealing with the issue. In 2003, Novo Nordisk began shaping its strategic response to climate change and in January 2006, Novo Nordisk joined the WWF Climate Savers Programme. The agreement between WWF and Novo Nordisk commits the company to restructure energy consumption from global production sites so that the company's total CO2 emissions by 2014 will be 10% less than in 2004. In light of the projected significant growth in production capacity, the absolute target represents a relative reduction of approximately 65%. The reduction is achieved through the three levers:
- Novo Nordisk's LEAN programme, cLEAN®
- Energy saving projects in production
- Promotion of renewable energy
In May 2007, Novo Nordisk signed a partnership agreement with the Danish energy company DONG Energy. Under the partnership, Novo Nordisk pledges to convert all energy savings realised at its Danish production into the purchase of electricity from a new wind farm in the North Sea. With the agreement, Novo Nordisk has devised a cost-neutral way to significantly achieve reductions in CO2 emissions and at the same time help build the market for renewable energy in Denmark.
For case story about our partnership with DONG Energy see here.