Investor Presentaiton
Novo Nordisk Annual Report 2023
Introducing Novo Nordisk
Strategic Aspirations
Risks
Management
Consolidated statements
Additional information
Sustainability frameworks and performance
Agenda
Name
Туре
Description
Scale
Result
ESG
Value Reporting Foundation (VRF)
Standard
The VRF (previously known as Sustainability Accounting Standards Board, and now part of the IFRS Foundation)
enables organisations to provide industry-based disclosures on sustainability risks and opportunities affecting cash
flows, access to finance or cost of capital in short, medium or long term.
N/A
N/A
UN Sustainable Development Goals
(UN SDGs)
Commitment
The UN SDGs are a set of 17 goals and 169 targets designed to achieve a sustainable future by 2030. The goals
cover a range of issues, including poverty, inequality, climate change and environmental sustainability.
N/A
N/A
UN Global Compact (UNGC)
Ten Principles
Morgan Stanley Capital International
(MSCI) ESG Ratings
Assessment
Commitment
The UNGC requires companies to align strategies and operations with universal principles on human rights, labour,
environment and anti-corruption, and to take actions that advance societal goals.
N/A
N/A
CCC-AAA
AAA
Sustainalytics ESG Risk Ratings
Assessment
Standard & Poor's (S&P) Scores
Assessment
The MSCI ESG Ratings measure an organisation's resilience to financially material ESG risks. They assess how
companies manage risks compared to their peers, using a customised methodology to identify industry leaders and
laggards.
The Sustainalytics ESG Risk Ratings measure an organisation's exposure to industry-specific, material ESG risks as
well as risk management. Sustainalytics ESG Risk Ratings assess the ESG performance of more than 16,000
companies.
The S&P Global ESG Score measures ESG performance via disclosures, media analysis, modelling approaches and
company engagement. The S&P Corporate Sustainability Assessment (CSA) Score is the ESG Score without utilising
modelling approaches.
>40-0
23.1
0-100
59 in ESG Score
53 in CSA Score
Corporate Knights Global 100.
Assessment
The Corporate Knights 19th annual ranking of the world's 100 most sustainable corporations is based on an
assessment of over 6,000 public companies with revenue over USD 1 billion.
100-1
53
E
Taskforce on Climate-related
Financial Disclosures (TCFD)
Standard
The TCFD establishes recommendations for disclosing comparable and consistent information on climate-related
aspects across organisations. TCFD is specifically focused on climate governance, strategy, risk management and
setting of metrics and targets.
N/A
N/A
Science Based Targets initiative (SBTI)
Standard
The SBTI defines best practice in emissions reduction and net zero targets aligned with climate sciences. It also
independently assesses and approves companies' targets in accordance with its strict criteria.
N/A
N/A
Carbon Disclosure Project (CDP) Scores.
Assessment
The CDP measures environmental performance through three disclosure stages: awareness, management and
leadership. The CDP Scores incentivise companies to measure and manage environmental impacts via climate
change and water security questionnaires.
D- to A
A in CDP Climate
A- in CDP Water
UN Guiding Principles on Business and
Human Rights (UNGPs)
Commitment
The UNGPS comprise of guidelines for states and companies to prevent, address and remedy adverse impacts on
human rights in their business operations.
N/A
N/A
Access To Medicine Foundation
(ATMI) Score
Assessment
The ATMI evaluates 20 of the world's largest pharmaceutical companies on their performance on priority
access-to-medicine topics. Companies are assessed based on research and development, governance of access and
product delivery.
0-5
2.97
G
World Economic Forum (WEF)
'Good Work Framework'
Standard
OECD Guidelines for Multinational
Enterprises on Responsible Business
Conduct (OECD Guidelines).
Recommendation
The WEF 'Good Work Framework' sets out five objectives and goals: promote fair pay and social justice; provide
flexibility and protection; deliver on health and well-being; drive diversity, equity and inclusion; foster employability
and learning culture.
The OECD Guidelines are government-backed recommendations on responsible business conduct with the purpose
of fostering business contribution to sustainable development and addressing adverse impacts on people, planet
and society that stem from business activities.
N/A
N/A
N/A
N/A
We strive to follow and adhere to international standards, recommendations and commitments set by globally
recognised entities. We are also regularly assessed by independent organisations on our ESG performance. This
table compiles some of the most relevant standards, recommendations and commitments we adhere to, as well as
assessments we receive.
Comment
Novo Nordisk reports on VRF in alignment with the 'Biotechnology & Pharmaceuticals' standard. We are
fully or partially aligned with all the 25 indicators required by VRF.
Novo Nordisk uses SDGs to step up sustainability, drive zero environmental impact by 2030 and improve
healthcare for more people. The priority SDGs are Goal 3 (Good health and wellbeing) and Goal 12
(Responsible consumption and production).
Novo Nordisk is committed to UNGC principles and has been an active participant since 2002. We submit
the 'Communication on Progress' focusing on governance, human rights, labour, environment and
anti-corruption on an annual basis.
Novo Nordisk maintained an AAA leadership ESG rating in line with the past six years, and is among the
top 5% of pharmaceutical peers, which comprises 267 companies.
Novo Nordisk ranked among the top 15% of the pharmaceutical industry group, with a ranking of 139 out
of 912, incurring an ESG risk rating of 23.1 (medium risk). Sustainalytics ESG Risk Ratings range from
severe (>40) to negligible (0-10) risk.
Novo Nordisk ranked in the 91st percentile within the pharma peer group with an ESG score of 59 and a
CSA score of 53.
Novo Nordisk ranked 1st within Denmark in the 'Pharmaceutical & Biotech Manufacturing Peer Group',
2nd in the healthcare sector globally and 53rd in the overall rank.
Novo Nordisk integrates TCFD-recommended scenarios into its risk management: limiting temperature
increase below 2°C, preferably 1.5°C as per the Paris Agreement, and a 4°C increase scenario as
high-emission alternative. We have assessed production sites on these scenarios and intend to assess the
entire supply chain going forward.
Novo Nordisk has an approved near-term 2030 target in line with the 1.5 °C requirement from SBTI.
Additionally, Novo Nordisk is committed to achieving net zero emissions by 2045, with an aim to be
aligned with SBTi's net zero requirements.
In 2022, Novo Nordisk maintained an A leadership ranking in CDP Climate and improved from a B to
an A- leadership ranking in CDP Water. Scores for the 2023 CDP Climate & Water will be available at:
www.cdp.net in February 2024.
In accordance with the UNGPS, Novo Nordisk commits to the responsibility to respect human rights
throughout own operations and value chains, as elaborated in our Human Rights Commitment. In
adherence with the UN Guiding Principles Reporting Framework, Novo Nordisk annually publishes a
Human Rights Report which outlines our latest work towards meeting this responsibility. Please refer to:
www.novonordisk.com/sustainable-business/esg-portal/social.html.
In 2022, Novo Nordisk ranked 11th, with the strongest performance in the governance of access area,
where a score of 4.43 out of 5 was achieved. ATMI will release updated ranking for top 20 companies in
2024.
Novo Nordisk published a WEF 'Good Work Framework' case study in March 2023 titled 'Making Inclusivity
a Reality'. It featured work practices and aspirational targets in D&I.
Novo Nordisk adheres to the OECD Guidelines on a corporate level as part of our commitment to ethical
business conduct. We set expectations in line with the OECD Guidelines towards Novo Nordisk suppliers
by integrating the OECD Guidelines to our Responsible Sourcing Standards.
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