Caring for the climate - the case of Novo Nordisk

Novo Nordisk - www.novonordisk.com

Founded in 1923, Novo Nordisk is a world leader in diabetes care with an overall market share of 20%. It has the broadest diabetes portfolio in the industry, including the most advanced products within the area of insulin delivery systems. In addition, Novo Nordisk has leading positions within areas such as haemostasis therapy, growth hormone therapy and hormone replacement therapy. Headquartered in Denmark, Novo Nordisk has approx 21,000 full-time employees worldwide, operates in 78 countries and markets its products in 179 countries. The turnover of the company in 2004 was approx 5 billion US dollars.

The Triple Bottom Line - a broad business principle
Novo Nordisk strives to conduct its activities in a financially, environmentally and socially responsible way. The company's strategy for sustainable development is founded on the Values, Commitments and Fundamentals expressed in the Novo Nordisk Way of Management, which comprises three elements: the company's Vision, Charter and Policies. Novo Nordisk's Articles of Association have also been amended to include the Triple Bottom Line. The Novo Nordisk Way of Management explicitly refers to the Triple Bottom Line, including the commitment to the ICC Business Charter for Sustainable Development, the United Nations Convention on Biological Diversity, Global Compact and the United Nations Universal Declaration of Human Rights.

Climate challenge - reducing CO2
emissions Novo Nordisk has a long history of environmental stewardship and strives to minimise its environmental footprint wherever possible. Stemming from this commitment to environmental responsibility in the Triple Bottom Line, the company has focussed on energy efficiency and adopted annual performance targets since the mid-nineties. The increased concern about CO2 emissions and associated climatic effects has reinforced the priority given to energy efficiency within the company.

Recognising the need for more radical efforts to address climate change, Novo Nordisk has embarked on an ambitious strategy in partnership with WWF to reduce its direct and indirect CO2 emissions by 2014, a period during which Novo Nordisk's emissions would rise by approx 60% in the absence of emission reduction programmes. Novo Nordisk has committed to reducing its CO2 emissions in 2014 to below 2004 levels.

Energy screenings at key sites show that there is still considerable potential for improving energy efficiency in operations. The company expects to achieve approx 10% of the CO2 reduction through energy efficiency measures, but is also exploring sustainable solutions other than energy efficiency to reduce its emissions.

These include:

	combined heat and power
	wind power
	solar cells
	micro turbines
	a shift to cleaner fuels such as biomass in the boilers
	purchase of green power

Successful projects
Gene technology reduces energy consumption
In 2003, Novo Nordisk inaugurated the world's largest insulin bulk production factory for the production of insulin analogues and human insulin. It represents six factories in one and the concept is 'from fermentation to crystals' in one factory. The new factory uses a production process designated NN2000. This process utilises a genetically modified strain that results in a yield per cell which is five times higher than in the existing production process. This translates to use of fewer raw materials such as sugar, water and energy, and less waste per produced unit of insulin. This increased efficiency directly benefits both the bottom line and the environment.

Environmentally sound design
Novo Nordisk introduced a procedure in 2003 to promote the integration of energy and environmental considerations in the design of new production plants and buildings. This procedure covers the design of new plants and buildings as well as the modification and expansion of existing production/supply plants and is applied at the key design phases, which include conceptual design, basic design and detailed design.

The procedure was used at Novo Nordisk's site in Kalundborg, Denmark, during the building of a purification plant for the latest insulin analogue, Levemir®. The site's environmental co-ordinators collaborated with the plant designers at the conceptual phase of the project, leading to the integration of a number of energy and environmental considerations in the design of the buildings. Timely interventions have thus led to substantial energy savings. Similarly, energy and environmentally sound design has also been applied at the company's new filling plant in Montes Claros, Brazil.

Future activities
Novo Nordisk's climate change strategy will begin by addressing energy efficiency projects. In the meantime, however, the company aims to explore other broad measures it can undertake to reduce its CO2 emissions.

For more information: vibb@novonordisk.com