Assurance standards
The assurance processes are not just important to us but also to our stakeholders. It is important that what we report is material, complete and done in a responsive manner to our stakeholders.
The consolidated financial statements of the Annual Report have been presented in accordance with IFRS, and the Annual Report as a whole in accordance with the Danish Financial Statements Act and additional Danish reporting requirements.
The Annual Report has been assured according to AA1000AS. Novo Nordisk has used AA1000AS in its assurance process since 2002. This is the first year in which Novo Nordisk is reporting according to the AA1000APS(2008) and the assurance process has been carried out according to the AA1000AS(2008). The new framework has not affected Novo Nordisk's approach to sustainability and stakeholder engagement.
Our assurance process is aligned with the internal control processes in the company, from individual affiliates and facilities to board level. For Novo Nordisk it is important to understand that different elements assure in different ways for different stakeholders.
The assurance process related to the Annual Report consists of an internal and an external assurance process. For more information please see sections below on external assurance and internal assurance.
External assurance processes
Below are some of the externally generated assurance mechanisms in place that can add assurance and thereby credibility to the company's activities and reporting with regard to accuracy, completeness and reliability for different stakeholders.
- Financial audits of annual financial results
- Assurance of annual non-financial results
- Share price
- FDA requirements and control in relation to products and production
- Regulatory approvals
- Benchmarks, ratings and surveys, eg Global Reporters 2006
- SRI ratings, e.g. SAM, Oekom, EIRIS, SIRI and others
- Inclusion in SRI indices, e.g. Dow Jones and FTSE4Good
- Community Growth Funds, e.g. World Diabetes Foundation
- External audits as part of ISO9001 and ISO14001 certification
- Annual Report (including non-financial information and other reporting formats, eg online report) and Quarterly Financial Statements
- Specialist publications, e.g. Novo Nordisk's stakeholder magazine Share
- Investor Relations Programmes
- Public policies and positions, e.g. animal welfare policies
- Memberships, e.g. Climate Savers programme
The governance structure and management systems which guide reporting in Novo Nordisk are described in the Corporate Governance section. A table containing all elements of the GRI Report Content by section and indicator can be found in the Global Reporting Initiative Index.
Internal assurance processes
Below are some of the internal assurance mechanisms in place to add assurance and thereby credibility to the company's activities and reporting with regard to accuracy, completeness and reliability.
Internal Audit assures by means of:
- Facilitations by independent facilitators, which is the follow-up method used to document compliance regarding the Novo Nordisk Way of Management. In short it is a systematic approach to gaining insight into how units in the organisation are living the company's values.
- Internal audits as part of ISO 9001 and ISO 14001 certification.
Governance structures assure by means of:
- Audit Committee and 'whistleblower system'
- Group Internal Audit and quality audits, ombudsman function
- Risk management, eg Risk Committee and Risk Management process.
Scope and definitions
The scope of the report and definitions are descibed under:
Auditor’s report on the Annual Report for 2009
The Novo Nordisk Annual Report 2009 integrates financial and non-financial performance. The Annual Report is presented with two auditors' report.
Defining materiality
Ongoing stakeholder engagement and trendspotting help identify new issues that are or could become material to Novo Nordisk. Following a review of the implications for Novo Nordisk's long-term business, a strategy is framed for those issues that are deemed material and subsequently data, indicators and targets are identified. Management of the issue is embedded in the organisation, so that it eventually becomes fully integrated into business processes. The process is iterative as strategies are revisited as appropriate.
It is Novo Nordisk's responsibility to ensure that those areas are addressed in which the company has significant impact or where it has a responsibility and ability to act. Novo Nordisk has sought inspiration in AccountAbility's materiality test to define what is material to Novo Nordisk's business, what should be included in the annual report and on which grounds. Applying the materiality test as a tool, sustainability-related issues are prioritised to be reported either in the printed annual report (most material; business critical), online (material, often to cater for specific stakeholder interests) or not reported (not material). The same process applies for the assurance provider's recommendations.
The outcomes of formal reviews, research, stakeholder engagement and internal materiality discussions are presented as a proposal for the annual reporting to Executive Management and the Board of Directors, and subsequently approved. In addition, Novo Nordisk's external assurance provider is requested to assure whether the non-financial performance included in the annual report covers the material aspects. The conclusion is available in the Independent Assurance Report on non-financial reporting 2009.