Report - COP Prototype

2022 Communication on Progress

Novozymes

Published date

July 11, 2022

No. of questions

Supplemental files

PDF_The_Novozymes_Report_2021.pdf PDF_The_Novozymes_Report_2021.pdf

CEO Statement

Signed

Governance

Policies and Responsibilities

1. Does the Board / highest governance body or most senior executive of the company:

Issue an annual statement about the relevance of sustainable development to the company

Issue an annual statement that addresses impacts on both people and the environment

Issue an annual statement highlighting a zero tolerance for corruption

Sign off on organizational sustainability targets

Supervise Environmental, Social, and Governance reporting

Regularly review potential risks related to the business model

None of the above

Optional comment

Sustainability forms an integral part of Novozymes’ purpose and strategy. It is governed by the Board of Directors and the Executive Leadership Team. The Board oversees financial and environmental, social and governance (ESG) performance and reporting. as part of the Executive Leadership Team’s day-to-day running of the company. The Novozymes Corporate Sustainability Committee consisting of members from the senior leadership from various functions is responsible for integrating Sustainability into our strategy and also setting our ambitious Sustainability Targets. Progress on sustainability is reported in our integrated Annual Report.

2. Does the company have a publicly stated commitment regarding the following sustainability topics?

	No, this is not a current priority	No, but we plan to have a commitment within 2 years	Yes, and the commitment is focused on our own operations	Yes, and the commitment includes our own operations and the value chain	Yes, and the commitment includes our own operations and the value chain along with communities and society
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

(1&2) Human and Labour Rights: Our position paper on Human Rights and Labour Standards describe our commitments. Novozymes respects human rights as defined by the UN Guiding Principles (UNGP) on Business and Human Rights. Novozymes embeds Human and Labor Rights in operational policies and procedures, it is also included in our supplier management system. (3) Environment: We are committed to holding ourselves accountable for our environmental footprint. We have a sustainability policy and position papers on Climate Change, Water, Biodiversity as well as Responsible Sourcing. (4) Anti Corruption: Business integrity and ethical behavior is embedded in how we do business and in our culture. To contribute to the fight against corruption, Novozymes has established seven principles of Business Integrity with which all employees, executive leadership and board of directors must comply. Our policies and position papers these topics can be found at www.novozymes.com/en/about-us/positions-policies

3. Does the company have in place a code of conduct regarding each of the following sustainability topics?

	No, this is not a current priority	No, but we plan to have a code of conduct within two years	Yes, focused on employee conduct	Yes, focused on employees and suppliers	Yes, focused on employees, suppliers, and other business relationships
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

Novozymes policies are central to everything we do, and through our position papers we strive to clearly state our official opinion on issues that our stakeholders find particularly important, and this includes Human Rights and Labour Standards, Environment and Anti-Corruption. These are applicable to all employees, suppliers and all other business relationships.

4. Has the company appointed an individual or group responsible for each of the following sustainability topics?

	No one is specifically responsible for this topic	Yes, with limited influence on outcomes (e.g., limited access to internal information, limited decision-making authority)	Yes, with moderate influence on outcomes (e.g., has access to relevant information, reports to senior manager)	Yes, with direct influence of some outcomes (e.g., has access to relevant information, includes one or more senior manager with decision making rights	Yes, with direct influence at the highest levels of the organization (e.g., has access to relevant information, includes most senior members of organization)
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

Yes. Sustainability forms an integral part of Novozymes’ purpose and strategic direction and is governed by the Board of Directors and the Executive Leadership Team. Our Corporate Sustainability Committee is responsible for integration of Sustainability into our Business Strategies. Apart from this, we have various functions - Global Sustainability, QES, P&O that are responsible for each of the sustainability topics in varied capacity

5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?

	No formal structure	Yes, and with limited influence on outcomes (e.g., limited access to internal information necessary to understand risks, poor representation from relevant departments or functions)	Yes, with moderate influence on outcomes (e.g., it includes representatives of some functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, reports to senior manager)	Yes, with direct influence on some outcomes (e.g., it includes representatives of functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, it involves one or more members of senior management)	Yes, and with direct influence at the highest level of the organization (e.g., full access to relevant information, it involves members at highest level of organization)
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

Our Corporate Sustainability Committee reports directly to the Executive Leadership Team (ExLT). This committee is responsible for the integration of sustainability into Novozymes’ business strategies and innovation pipeline to deliver solutions that meet the needs of society and drive sales growth. It is also responsible for setting Novozymes’ strategic direction, ambitious sustainability targets, and securing a strong internal foundation of responsible business practices. The committee consists of members from senior leadership representing various functions and is chaired by the Executive Vice President of People, Sustainability & Brand.

Prevention

6. Does the company have a process or processes to assess risk?

	No, this is not a current priority	No, but we are planning to develop one in the next two years	Yes, related to our own operations	Yes, related to our own operations and entire value chain and other business relationships
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

Optional comment

Novozymes is exposed to different risks due to the global and diverse nature of the industries we operate in. Our risk management process ensures that we identify, assess and mitigate key business risks that may impact our ability to grow our business, be a profitable company, and be a reliable partner to our customers and the communities we operate in. In addition to addressing key enterprise risks which could potentially materialize in the short term i.e. within the next three years, we also monitor longer- term threats and trends, like climate change and technology development. We seek to have an integrated and holistic approach of assessing and prioritizing financial, reputational and ESG risk on similar terms.

6.1. During the assessment of risk, which business relationships are reviewed?

	A few suppliers or business relationships [approximately less than 25 %]	Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]	Most suppliers / relevant business relationships [approx. 51 - 99 %]	All suppliers / relevant business relationships outside the supply chain
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

Optional comment

Novozymes requires all its contracted suppliers to comply and sign our Responsible Purchasing Standard, as well as, when requested, to complete questionnaires and to accept visits and audits relevant for confirmation of compliance with these standards. As a part if the Supplier Ethical Data Exchange (SEDEX) platform, we engage with high risk suppliers to manage sustainability risks in our supply. Novozymes is committed to protect its employees and stakeholders against risks (both financial and non-financial). Our risk management techniques help identify potential risks with possible material consequences to Novozymes.

7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?

	No, this is not a current priority	No, but we are planning to develop one in the next two years	Yes, related to our own operations	Yes, related to our own operations and entire value chain and other business relationships
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

Optional comment

Company-wide due diligence and impact assessment on assessing risks both internally and externally is carried out every year. More information on this can be found in the risk management section of our 2021 Annual Report.

7.1. During the due diligence process, which business relationships are reviewed?

	A few suppliers or business relationships [approximately less than 25 %]	Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]	Most suppliers / relevant business relationships [approx. 51 - 99 %]	All suppliers / relevant business relationships outside the supply chain
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

Optional comment

Novozymes requires all its contracted suppliers to comply and sign our Responsible Purchasing Standard, as well as, when requested, to complete questionnaires and to accept visits and audits relevant for confirmation of compliance with these standards. Accordingly, every year we evaluate the SAQs of suppliers in SEDEX that are categorised as high risk based on their responses on the platform. Novozymes is committed to protect its employees and stakeholders against risks (both financial and non-financial). Our risk management techniques help identify potential risks with possible material consequences to Novozymes. The findings are then communicated with relevant category managers who then reach out to the corresponding supplier for statements or action plans.

Concerns and grievance mechanisms

8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?

No, this is not a current priority

No, but we plan to within two years

Yes, we have an informal process (e.g., through supervisors, others)

Yes, we have a formal process

Optional comment

We have grievance mechanism are in place for both employees as well as external stakeholders. Novozymes has a global ombudsperson as well as regional ombudspersons in each region. We also have a Whistleblower hotline for employees, suppliers and other external partners to report suspicions of violations of law, including violations of human and labor rights.

8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.

	No	Yes
Is the process communicated to all employees/workers in local languages?
Is the process available to non-employees (e.g., contractors, vendors, suppliers)?
Is the process confidential (e.g., whistleblowing process)?
Are there processes in place to avoid retaliation?
Can concerns be raised about suppliers or other business relationships (e.g., clients, partners, etc.)
Other (Please provide additional information)

Optional comment

In Novozymes, we conduct our business in a responsible way in compliance with the law. We have a established the Whistleblower System to support this commitment, by ensuring a secure and confidential channel for reporting of serious violations or suspicions thereof. Learn more: https://novozymes.whistleblowernetwork.net/frontpage

9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?

	No process to enable remedy to stakeholders	Remedy available to some stakeholders (i.e., some geographies, employees only)	Remedy is available to all affected stakeholders	Remedy is available to all stakeholders, and suppliers are expected to have similar policies
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Lessons

10. How does the company capture lessons regarding each of the following sustainability topics?

	No lessons are regularly captured	Conducts root cause analyses/investigation of major incidents	Conducts root cause analyses/investigation and changes organizational policies, processes, and practices accordingly	Systematically conducts root cause analyses/investigation and leverages learnings to influence both internal and external affairs
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

We have systems in place that record incidences and ensures that effective remedies are made available to all affected stakeholders. For example, incidences related to Environment and Health & Safety are recorded in CAPTURE, our global incident management system. This system enables us to implement suitable remedial actions to correct and prevent their occurrence in the future, while protecting personal privacy in compliance with regulations.

Executive Pay

11. Is executive pay linked to performance on one or more of the following sustainability topics?

Optional comment

Sustainability metrics are included in Executive and Senior Management’s remuneration programs. A long-term incentive program was announces in2019 for the period of 2020-2022, this includes an explicit weight (20% of LTIP) on sustainability, this is applicable only if Novozymes performs above the floor levels across all 4 sustainability parameters – Climate, Water, Circular, Workplace& Zymers. Please refer to the Novozymes Remuneration Report 2021

Board Composition

12. Percentage of individuals within the company’s Board / highest governance body by:

	Number/Percentage	Not applicable (Please provide additional information)
Total number of board members (#)	11
Male (%)	73
Female (%)	27
Non-binary (%)	0
Under 30 years old (%)	0
30-50 years old (%)	9
Above 50 years old (%)	91
From minority or vulnerable groups (%)	0
Executive (%)	64
Independent (%)	36

Optional comment

Please refer to our webpage on Board of Directors for more information - https://investors.novozymes.com/investors/corporate-governance/board-of-directors/default.aspx

Data Assurance

14. Is the information disclosed in this questionnaire assured by a third-party?

No assurance for any metrics

Limited assurance for minority of metrics (e.g., GHG emissions only)

Limited assurance for majority of metrics

Reasonable assurance for minority of metrics

Reasonable assurance for majority of metrics

Please refer to 2021 Annual Report (page 146) https://report2021.novozymes.com/#home

Other (Please provide additional information)

Optional comment

Please refer to our 2021 Annual Report (page 146) https://report2021.novozymes.com/#home

Human Rights

Commitment

2.1. For each human rights policy, is it:

	Aligned with international human rights standards?	Publicly available?	Approved at most senior level of the company?	Applied to the company’s own operations?	Applied to the company’s supply chain and/or other business relationships?	Developed involving human rights expertise from inside and outside the company?	Other (Please provide additional information)
Freedom of expression
Not applicable
Digital security / privacy
Rights of women and/or girls
Access to culture
Rights of indigenous peoples
Free, prior and informed consent
Rights of refugees and migrants
Access to water and sanitation

Optional comment

Not applicable

Response

8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

We conduct regionally focused human rights impact assessments to identify and assess human rights risks and impacts in our business and supplier base. As human rights risks vary from region to region, this approach enables us to gain a more comprehensive understanding of human rights risks, our positioning, and the associated gaps within the respective regions. In 2021, we conducted the human rights impact assessment for China. In the past two years, we have completed assessments for the Americas, Europe, Middle East and Africa (EMEA) region and India. Through these assessments, we identified the most salient human right issues, and are taking appropriate measures to mitigate the identified risks and gaps. In 2022, we will perform the assessment for the Asia Pacific region.

Labour

Commitment

1. Does the company have a policy commitment in relation to the following labour rights principles?

	No, and we have no plans to develop a policy	No, but we plan to in the next two years	Yes, included within a broader policy	Yes, articulated as a stand-alone policy	Not applicable (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
2021
Forced labour
2021
Child labour
2021
Non-discrimination in respect of employment and occupation
2021
Occupational safety and health
2021
Working conditions (wages, working hours)
2021

1.1. For each labour rights policy, is it:

	Aligned with international labour standards?	Publicly available?	Approved at most senior level of the company?	Applied to the company’s own operations?	Applied to the company’s supply chain and/or other business relationships?	Developed involving labour rights expertise from inside and outside the company?	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Prevention

2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?

	No engagement on this topic	To better understand the risks/ impacts in question	To discuss potential ways to prevent or mitigate the risks/ impacts in question	To agree on a way to prevent/ mitigate the risks/ impacts in question	To assess progress in preventing/ mitigating the risks /impacts in question	To collaborate in the prevention/ mitigation of the risks/ impacts in question	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Optional comment

Based on the outcomes of our human rights, health and safety, and business ethics assessments, at Novozymes, we do not have systemic issues in these areas. Our assessment framework ensures that we do it right from the beginning so that we can handle risks that arises our business operations and its value chain. We have frequent dialogue with affected stakeholders or their legitimate representatives to collaborate on prevention and mitigation activities.

3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?

	Provided internal training/ capacity building for the direct workforce	Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)	Conducting an audit process and/or corrective action plan	Collective Action with peers or other stakeholders, in particular workers' organizations, to address the issue	Collaboration with governmental or regulatory bodies	Other (Please provide additional information)	No action within reporting period
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

4. Who receives training for the following labour rights issues?

	No training provided	Select employees	All employees	Contractors	Direct suppliers of the organization	Indirect suppliers of the organization	Other – such as partners, clients, etc.
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Optional comment

All newly onboarded employees are required to undergo a training in Human Labour Rights and Health and Safety training at the time of onboarding. In 2021, all our employees were required to undergo training on Occupational Health and Safety and Non-Discrimination.

5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?

	No monitoring of progress	Review issues on ad-hoc basis	Set annual targets/ goals, track progress over time (internal programs only)	Set annual targets/ goals, track progress over time (internal and external programs)	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Performance

6. What is the percentage of employees covered under collective bargaining agreements?

	Percent of employees (%)	Unknown
Employees covered under collective bargaining (%)	48

7. What is the percentage of employees in a trade union or other workers' organization?

	Percent of employees (%)	Unknown	Not applicable (Please provide additional information)
Employees in a trade union or on a worker committee (%)
In some regions we operate, we are not allowed by law to request this information from employees. For example, in Denmark the law on freedom of association in the labour market protects workers’ freedom of association rights by prohibiting an employer from favouring whether a worker is or is not a union member.

8. In the course of the reporting period, what was the percentage of women in:

	Percent of women (%)	Unknown
Senior leadership level position	34
Non-executive board	25

9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?

	Salary ratio (%)	Unknown	Choose to not disclose
Women / Men (%)	98

Optional comment

To ensure some degree of statistical stability we have only included groups where we have at least 10 females and 10 males in each job grade/location. This implies that the analysis includes 63% of all employees (65% of the females and 62% of the males). When weighting together (using the total population of each group) the differences in basic salaries in these groups we see that the female basic salaries are approx. 98% of male salaries. The job grades are very broad so they include employees carrying out different types of jobs. The number therefore does not take into account seniority, education, function, title etc. that we know will/should impact the salaries hence it can only be seen as an indicator for the actual difference in salaries for comparable jobs.

10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?

	Frequency of injury	Unknown	Choose to not disclose
Frequency of injury

Optional comment

We report the frequency of occupational injuries per million working hours in our Annual Report every year. For 2021, it was 1.5.

11. In the course of the reporting period, what was the company’s incident rate?

	Incident rate	Unknown	Choose to not disclose
Incident rate

Optional comment

We report the frequency of occupational injuries per million working hours in our Annual Report every year. For 2021, it was 1.5

Response and Reporting

12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?

	Yes	No	Choose to not disclose	Not applicable (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

In 2021, we launched a mandatory safety e-learning module for all employees, which focused on safety challenges across Novozymes. We implemented a medical application in CAPTURE which allows EU GDPR (General Data Protection Regulation) compliant management of all medical cases. The lost-time injury frequency was 1.5 while the three-year rolling average (2019-2021) of lost-time injury frequency rate was 1.2, which means we are on track to meet our target <1.5 in 2022. We also launched a Wellbeing portal, where employees can access a variety of materials, tools, training, and information addressing general wellbeing, including a stress prevention toolbox. With working from home on the increase, we have continued to focus on mental wellbeing activities such as BrainSpace, which aim to help and inspire our leaders and employees. More information on this can be found in our 2021 Annual Report https://report2021.novozymes.com/

Environment

Commitment

1. Does the company have a formal policy on the following environmental topics?

	No, and we have no plans to develop a policy	No, but we plan to in the next two years	Yes, included within a broader policy	Yes, articulated as a stand-alone policy	Not applicable (Please provide additional information)
Climate Action
2022
Water
2020
Oceans
This is not material to our business as the production of Novozymes solutions depends on the usage of freshwater.
Forests / Biodiversity / Land Use
2021
Air Pollution
2022
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
2022
Energy & Resource Use
2022

Optional comment

While we have stand alone position papers and policies for most of the environmental topics, air pollution, waste, energy and resource use are covered in our company's sustainability policy. For more information, please refer to https://www.novozymes.com/en/about-us/positions-policies.

1.1. For each environmental policy, is it:

	Aligned with international environmental standards?	Publicly available?	Approved at most senior level of the company?	Applied to the company’s own operations?	Applied to the company’s supply chain and/or other business relationships?	Developed involving environmental expertise from inside and outside the company?	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

Prevention

2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?

	No engagement on this topic	To better understand the risks/ impacts in question	To discuss potential ways to prevent or mitigate the risks/ impacts in question	To agree on a way to prevent/ mitigate the risks/ impacts in question	To assess progress in preventing/ mitigating the risks/ impacts in question	To collaborate in the prevention/ mitigation of the risks/ impacts in question	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?

	Provided internal training/ capacity building for the direct workforce	Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)	Conducting an audit process and/or corrective action plan	Collective Action with peers or other stakeholders to address the issue	Collaboration with governmental or regulatory bodies	Other (Please provide additional information)	No action within reporting period
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?

	No monitoring of progress	Review issues on ad-hoc basis	Set annual targets/ goals, track progress over time (internal programs only)	Set annual targets/ goals, track progress over time (internal and external programs)	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

4.1. For each environmental topic in which the company sets timebound goals / targets, what kind of targets has the company set?

	Description of targets (e.g., what is the target, absolute vs. intensity, externally verified, on track, etc.)
Climate Action	We continue our commitment to the Science Based Targets (SBT) and are committed to achieving Net Zero by 2050. We also aim to attain a 50% reduction in absolute emissions from our operations and supply chain (Scopes 1+2+3) by 2030 (with a 2018 baseline). Status: on track
Energy & Resource Use	As a part of our commitment to the RE100 program, we have committed to purchase 100% renewable electricity by 2030.
Water	We are committed to having 100% of our sites manage water in balance with local conditions by 2030. ( the targets do not include sites with activities not considered to have a significant environmental impact, eg: sales offices, R&D labs, etc.). Status: on track
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)	We are committed to ensuring that zero waste from our operations is sent to the landfills by 2030 through active site-specific waste management. Status: on track
Oceans

Optional comment

More information on this can be found here - https://www.novozymes.com/en/about-us/sustainability/commitments-and-targets

4.2. For each environmental topic in which the company sets timebound goals / targets, how is progress against target / goal tracked?

	Progress is reviewed against goals annually or more frequently	Progress is reported internally to the most senior level	Progress is reported externally	Other (Please provide additional information)
Climate Action
Energy & Resource Use
Water
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Oceans

5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?

	Yes	No	Choose to not disclose	Not applicable (Please provide additional information)
Climate Action
Water
Oceans
This is not applicable for our operations.
Forests / Biodiversity / Land Use
This is not applicable for our operations.
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

Climate Action

6. What were the company’s gross global greenhouse gas emissions for the reporting period?

Scope 1 Emissions

Full

None

Emissions (tCO2e)

43000

Scope 2 Emissions

Full

None

Emissions (tCO2e)

210000

Scope 3 Emissions

Full

Partial

None

Emissions (tCO2e)

707907.35

Optional comment

Our Scope 3 boundary is composed of Category 1(Purchased goods and services), Category 3 (Fuel- and energy related activities (not included in scope 1 or 2), Category 4 (Upstream transportation and distribution) and Category 6 (business travel).

7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?

Percent of revenue (%)

Unknown

Not applicable (Please provide additional information)

8. Has the organization acted to support climate change adaptation and resilience?

We have taken action to increase organization-wide resilience to climate change

We have taken action to increase resilience in our supply chains

We have taken action to increase resilience in the communities in which we operate

We have provided funding for climate change adaptation and resilience initiatives and projects

We have not taken actions to build climate change resilience in the reporting period

Other (Please provide additional information)

Unknown

Energy / Resource Use

9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.

% of total energy consumption

Unknown

Technology

10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?

Percent of total revenue (%)

77% of our revenue came from products that contribute to reduction in CO2 emissions by reducing the use of fossil-based energy and chemicals (Page 19 of our 2021 Annual Report)

Unknown

Not applicable (Please provide additional information)

Sector-specific: Water

12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.

Water withdrawal (volume of water in megaliters):

	Mega-liters	Unknown	Not applicable (Please provide additional information)
Total
Groundwater:
Surface water:
Rainwater:
Wastewater:
The production processes of our enzyme products are dependent on water from freshwater sources, hence we do not use wastewater in our production
Percentage of water withdrawn in regions with high or extremely high water stress (%)

Water consumption (volume of water in megaliters):

	Mega-liters	Unknown	Not applicable (Please provide additional information)
Total	1928
Groundwater:
Surface water:
Rainwater:
Wastewater:
The production processes of our enzyme products are dependent on water from freshwater sources, hence we do not use wastewater in our production
Percentage of water consumed in regions with high or extremely high water stress (%)

Optional comment

Most of the water used in our operations is sourced from a third-party water supplier. We are in conversation with them to better understand where the water they use for supplying to us comes from. Calculation of water withdrawn and consumed in regions with high or extrememely high water stress is carried out using the WRI Aqueduct tool. Percentage of water withdrawn in regions with high or extremely high water stress (%) is less than 1%.

13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.

Water intensity of products (cubic meter/$):

247

Unknown

Not applicable (Please provide additional information)

Optional comment

1751 cubic meter/DKK

Sector-specific: Air pollution

17. Where applicable, please report the company's emissions of the following pollutants during the reporting period.

	Emissions (tCO2e)	Unknown	Not applicable (Please provide additional information)
NOx
We do not report on this air emissions related performance indicator as it is not applicable for our operations.
SOx
We do not report on this air emissions related performance indicator as it is not applicable for our operations.
Volatile Organic Compounds (VOC)
We do not report on this air emissions related performance indicator as it is not applicable for our operations.
Hazardous air pollutants (HAP)
We do not report on this air emissions related performance indicator as it is not applicable for our operations.
Particulate matter (PM10)
We do not report on this air emissions related performance indicator as it is not applicable for our operations.
Persistent organic pollutants (POP)
We do not report on this air emissions related performance indicator as it is not applicable for our operations.
Other (please specify in text box)

Sector-specific: Waste

18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.

Waste Generated (t)

480500

Unknown

Not applicable (Please provide additional information)

19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.

Hazardous Waste Ratio (%)

0.79

Unknown

Not applicable (Please provide additional information)

20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.

Single-use plastics (tonnes)

Unknown

Not applicable (Please provide additional information)

Optional comment

The amount of plastic waste generated within our organisation is negligible. We mainly use plastic for packaging of our products.

Overall Environment

21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.

Please refer to notes 7.1 to 7.7 (pages 121-131) in our 2021 Annual Report here - https://report2021.novozymes.com/

Anti-corruption

Commitment

1. Does the company have an anti-corruption compliance programme?

No, it is not an immediate business priority

No, but we plan to in the next two years

Yes

2022

Optional comment

To contribute to the fight against corruption Novozymes has established seven principles for business integrity with which all employees, including executive leadership, and the board of directors must comply. A booklet, “Bribery: No thanks!” explaining our Business Integrity principles is distributed to our employees worldwide in various languages. More information on this is found in our position paper on business integrity here. https://www.novozymes.com/en/about-us/positions-policies

2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?

No, and we have no plans to develop a policy

No, but we plan to in the next two years

Yes, included within a broader policy

Yes, articulated as a stand-alone policy

Optional comment

This is included in one of our seven principles of Business Integrity. The principles underline Novozymes zero tolerance approach against corruption in all its forms which also includes conflict of interest - In Novozymes, we avoid conflicts of interest. Private interests must not impact business judgment. Along with this a booklet, "Bribery: No thanks!", is available and distributed to all employees.

Prevention

3. Who receives training on anti-corruption and integrity?

Optional comment

All new employees are provided with Business Integrity training as a part of our onboarding program. Apart from the select employees in professional, managerial and administrative roles are provided with Business Integrity training annually.

3.1. How often is such training provided?

	One time only	Every year	Every two or more years	We do not collect this data
All employees
Select employees
Contractors
Direct suppliers of the organization
Other – such as partners, clients, etc.
Indirect suppliers of the organization

Optional comment

In 2021, our business integrity training was completed by 99% of our employees in scope. The training provided a general reminder of our business integrity principles which serve to mitigate the risk of bribery and corruption in and by Novozymes.

4. Does the company monitor its anti-corruption compliance programme?

No, we do not monitor the anti-corruption compliance programme

Review issues on ad-hoc basis

Yes, through internal employee self-evaluations

Yes, through automated controls monitoring

Yes, through external independent monitoring

Yes, through other mechanisms

Optional comment

We report on our anti-corruption compliance and programmes in our annual report every year.

Response and Reporting

5. Please report the company's total number and nature of incidents of corruption during the reporting year.

	Number of incident(s)	Unknown	Choose to not disclose
Confirmed during the current year, but related to previous years	34
Substantiated fraud and corruption
Confirmed during the current year, and related to this year

Optional comment

The number of potential fraud and corruption cases investigated increased in 2021 due to the continued development of digital tools for proactive identification of potential cases. The number of substantiated cases increased compared to 2020, due to an increased exposure to cyber crime. There was no material business or financial impact of the substantiated cases. Please refer to Note 8.4 on Business Ethics in our 2021 Annual Report.

6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?

Initial case assessment

Internal investigation

Review by risk / ethics committee

Review by board of directors

External audit / review

Other (please provide additional information)

Additionally, the findings are also reported to the audit committee.

Not applicable/no incidents in the reporting period

7. Does your company engage in Collective Action against corruption?

No, it is not an immediate business priority

No, but we plan to in the next two years

Yes (please explain)

Novozymes has joined the United Nations Global Compact and supports working against corruption in all its forms. To contribute to the fight against corruption Novozymes has established seven principles for business integrity with which all employees, including executive leadership, and the board of directors must comply. In addition to this, we also include these Business Integrity principles in our Responsible Purchasing Standards which is signed by all our contracted suppliers.

8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.

Our business integrity training was completed by 99% of our employees in scope. The training provided a general reminder of our business integrity principles which serve to mitigate the risk of bribery and corruption in and by Novozymes. The competition law compliance training in 2021 served as a general reminder of do’s and don’ts and had a focus on competition law aspects associated with the application of specific contractual tools. In 2021, Novozymes adopted a data ethics policy covering personal data and other categories of data, and implemented a governance supportive hereof, as a supplement to the policies and procedures already in place to ensure compliance with rules regarding data protection and privacy