One of the most visible manifestations of our commitment to Triple Line Management is our integrated reporting. Since 2004, we have reported on financial, social and environmental performance in one combined report. Our annual reporting includes both non-financial and financial statements which provide detail on our efforts to have a net positive impact on society by reducing environmental impacts, increasing quality of life through better healthcare treatment, as well as providing an attractive return on investment for shareholders.
In the absence of global standards for inclusive reporting, our integrated reporting is prepared in respect of standards for mandatory and voluntary reporting.
- International Financial Reporting Standards (IFRS).
- The accountability standard, the AA1000 (2008) Framework, which includes AA1000APS(2008) and AA1000AS(2008).
- Global Reporting Initiative (GRI) G3 Sustainability Reporting Guidelines.
- UN Global Compact, Communication on Progress.
- US Sarbanes-Oxley Act requirements for financial reporting. Novo Nordisk has also embarked on a process of structuring the control environment for non-financial data with the aspiration to have full alignment with the control environment for financial data.
The integrated reporting format was introduced to enhance Novo Nordisk's financial valuation and to explore the relationship between financial and non-financial performance. More broadly, the objectives of Novo Nordisk's reporting efforts have both an external and an internal dimension.
- Increase accountability to all stakeholders (to those with a financial stake in company performance as well as those without)
- Increase internal accountability for achieving performance objectives
We were one of the first companies to integrate financial and non-financial reporting. Our commitment to reporting leadership includes a desire to continuously improve. Some of the areas on which we are focused include.
- Reporting sustainability information based on its importance to the company's strategy and the extent to which it impacts key business activities.
- Reporting information for each critical business activity, demonstrating the connection between sustainability and financial performance in a disaggregated format.
- Reporting all performance against targets and explaining the strategic intent of targets.
- Assessing and reporting on how the company is reducing its risk and will earn profits through sustainability-focused management.
- Using metrics that are standardised and comparable over time. Ideally, metrics should also be comparable with companies in and outside of our industry.
Clear and transparent metrics are key to accountability, and this is an area where we seek continuous improvement. Setting ambitious objectives and targets and reporting on progress in meeting our goals are core elements of the Novo Nordisk Way of Management. However, we face two major challenges in improving metrics to measure our progress in expanding access to care. First, we need to develop meaningful and useful indicators for measuring performance in areas where there is yet no corporate precedence for reporting. Second, we need to find ways of dealing with the challenges of obtaining good quality data in regions where monitoring of healthcare quality is not standard.
To guide our future direction, we are working on setting specific, measurable medium-range targets for our access initiatives. We will use these to learn from our experiences, measure, and improve our progress and impact.