Investor Presentaiton
Novo Nordisk Annual Report 2023
Introducing Novo Nordisk Strategic Aspirations Risks
Management
Consolidated statements
Additional information
SOCIAL
Statutory gender reporting
under Danish law
Listed companies not having equal representation of genders on the
Board of Directors are required to set a target for the share of the
underrepresented gender. As of 1 January 2023, listed companies are
also required to set a target and a policy for the share of the
underrepresented gender in upper management¹.
SHARE OF THE UNDERREPRESENTED GENDER (2023)²
Share of the
underrepresented gender
Target for the share of the
underrepresented gender
2022
2023
Board of Directors³
Upper management4
33% (3/9)
38% (19/50)
38% (3/8)
42% (19/45)
Not required
Min. 45% by 2025
As of 31 December 2023, the Board of Directors is regarded as having
equal gender representation and is therefore not legally required to set
a gender targets. Since diversity remains important for the Board, it has
maintained a voluntary 2025 target of having at least three shareholder-
elected Board members who are men and three who are women.
As of 31 December 2023, the share of the underrepresented gender in
upper management at Novo Nordisk A/S is 42%. Accordingly, we have
achieved equal gender representation as defined under the Danish
companies act. However, we have not yet achieved the targeted level of
45% and therefore maintain our diversity and inclusion policy to keep
making progress. This policy states our strong belief that diversity and
inclusion brings value to the company, by enabling a diverse line of
thought, increasing innovation and leading to better decision-making.
The policy focuses on three primary drivers: mitigating bias, creating an
inclusive workplace and having leaders serve as role models. Its most
significant activities include yearly equal pay reviews, a global gender-
neutral parental leave policy, tracking of gender representation across
all managerial levels and aspirational gender diversity targets.
Further reporting on diversity and inclusion is included in note 8.3 on
Gender diversity, and for the Board of Directors, also in the Corporate
Governance Report. Novo Nordisk's diversity and inclusion policy is
available at: www.novonordisk.com/sustainable-business/esg-portal/
principles-positions-and-policies/diversity-inclusion-policy.html.
Sustainable tax approach
Our overall guiding principle within taxation is to have a sustainable tax
approach, emphasising our business-anchored approach to managing
the impact of taxes while remaining true to the Novo Nordisk values of
operating our business in a responsible and transparent manner. Our legal
structures are based on business-anchored considerations and substance.
Consequently, we pay tax where value is generated and always respect
international and domestic tax rules. As a global business, we conduct
cross-border trading, which is subject to transfer pricing regulations. We
apply a 'Principal structure' in line with OECD principles, meaning all legal
entities, except for the principals, perform their functions under contract on
behalf of the principals. As a result, entities contracted by the principals are
being allocated an activity-based profit according to a benchmarked profit
margin. The tax outcome of this operational model is reflected in the
overview to the right, which shows our corporate income taxes by region.
To ensure alignment between tax authorities regarding the allocation of
profit between our entities, we aim to have Advance Pricing Agreements
and similar tax rulings in place for geographies representing around 70%
of our revenue worldwide.
Our tax policy has been approved by the Board of Directors. Read more
about this at: www.novonordisk.com/sustainable-business/esg-portal/
principles-positions-and-policies/tax-policy.html.
In addition to corporate income taxes, we also pay other taxes. Please
refer to note 8.7 on Total tax contribution for further information.
TAXES BY REGION (THREE-YEAR AVERAGE 2021-2023)
Intellectual
property
Corporate
Total tax
Region
International Operations
income taxes contribution
rights Production Sales (DKK billion) (DKK billion)
14.2
32.8
Denmark
12.2
21.6
1.0
5.4
0.6
2.6
0.4
3.2
1.1
7.1
1.0
7.0
15.3
39.9
EMEA (excluding Denmark)
China
Rest of the world
North America Operations
US
Total three-year average
Minor or no activities
Share of category
Significant activities
1. Cf. the Danish Companies Act, section 139 (c). 2. Cf. the Danish Financial Statements Act. section 99(b). 3. Shareholder-elected Board members of Novo Nordisk A/S. 4. Chief executive officer and executive vice presidents employed by Novo Nordisk A/S as well as their direct reports, also employed by Novo Nordisk A/S, with leadership responsibility.
5. Cf. the Danish Companies Act, section 139(c)(1)(1). 6. Intellectual property rights based on sales from where intellectual property rights are located. 7. Production based on number of production employees in the region. 8. Sales based on location of the customer.
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