Investor Presentaiton
Novo Nordisk Annual Report 2023
Introducing Novo Nordisk
Strategic Aspirations
Risks
Management
Consolidated statements
Additional information.
Notes to the consolidated ESG statement
Section 6
Basis of preparation
General reporting standards and principles
Novo Nordisk's annual reporting complies with the Danish Financial Statements Act.
Sections 99a, 99b, 99d and 107d specify the requirements to report on the management
of risks related to the environment, climate, human rights, labour and social conditions,
anti-corruption, gender distribution and data ethics. These requirements are addressed in
the Management review.
As recommended by the Taskforce on Climate-related Financial Disclosures (TCFD), Novo
Nordisk is working to integrate two climate change scenarios into the risk management
process, to identify short-, medium- and long-term risks within the production and
supply chain:
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Limiting temperature increase to well below 2°C scenario, preferably 1.5°C, compared
to pre-industrial times in accordance with the Paris Agreement.
A temperature increase of 4°C scenario as an alternative high-emission scenario.
Scope 1, 2 and 3 emissions have been prepared in accordance with the Greenhouse Gas
(GHG) Protocol. Novo Nordisk also discloses in accordance with the recommendations put
forward by the Carbon Disclosure Project (CDP). For a full breakdown of climate and water
impacts, please refer to the publicly available report on Novo Nordisk's CDP disclosures at:
www.cdp.net.
Inclusivity
As a pharmaceutical business with global reach, Novo Nordisk is committed to being
accountable to those stakeholders who are impacted by the organisation. From the
perspective of social responsibility, the key stakeholder groups are patients who rely on
Novo Nordisk's products, employees at Novo Nordisk and throughout the Group's value
chain, business partners and local communities. Novo Nordisk maps its stakeholders and
has processes in place to ensure inclusion of stakeholder concerns and expectations.
Responsiveness
The Annual Report reflects how Novo Nordisk manages operations in ways that consider
and respond to stakeholder concerns and interests. The report reaches out to a wide
range of stakeholders but is primarily prepared with investors in mind. For most Novo
Nordisk stakeholders, the Annual Report is just one element of interaction and
communication with the Company.
Impact
Understanding, measuring and communicating the positive and negative impacts on
society and the planet of Novo Nordisk's activities is important and remains a priority
for Novo Nordisk.
Materiality
The 2023 consolidated ESG statement includes KPIs as guided by Novo Nordisk's ESG
strategy and ongoing external stakeholder engagement. When assessing whether a KPI
is material to the consolidated ESG statement, Management considers whether the matter
is of such relevance and importance that it could substantially influence the assessment of
Novo Nordisk's ESG performance by the users of the Annual Report 2023.
The provisional Double Materiality Assessment described on page 12, performed at the
end of 2023, will inform our ESG reporting in 2024 in accordance with the Corporate
Sustainability Reporting Directive (CSRD) and will be updated regularly.
Principles of consolidation
The disclosures of energy consumption and CO₂e emissions cover production sites,
laboratories and offices. The disclosures of water consumption, environmental breaches
and waste cover production sites. Novo Nordisk Engineering A/S is not included in our
environmental reporting.
The social and governance-related disclosures cover the Novo Nordisk Group, comprising
Novo Nordisk A/S and entities controlled by Novo Nordisk A/S. Novo Nordisk Engineering
A/S is not included in our reporting for Sustainable employer score, employees trained in
business ethics, failed inspections and facilitations of the Novo Nordisk Way. Novo Nordisk
Pharmatech A/S is not included in our reporting on employees trained in business ethics
and facilitations of the Novo Nordisk Way.
Changes in accounting policies and disclosures
The accounting policies set out in the notes have been applied consistently in the
preparation of the consolidated ESG statement for all the years presented, unless
stated otherwise.
The following changes to accounting policies and new KPIs have been considered in
the 2023 consolidated ESG statement:
Environmental performance
In 2022, scope 1 emissions, scope 2 emissions and scope 3 emissions from business
travel were calculated as CO₂. To further align with the GHG Protocol, in 2023 these
KPIs are calculated as CO₂e. The remaining scope 3 emissions have been calculated as
CO₂e in 2022 and 2023. CO₂e includes CO2 and all other greenhouse gases; for more
information, please refer to section 7.2. Additionally, scope 1 emissions have been
expanded to also include refrigerants. Further scope changes may occur in the future
as more data becomes available.
In 2023, the methodology for counting the number of breaches of regulatory limit
values was changed. Breaches related to the same continued exceedance at the same
site are counted as one breach for the year. Comparative figures for 2021 and 2022
have been adjusted accordingly. Please refer to section 7.5.
Social performance
The KPI on patients reached has been expanded to include patients reached with
Novo Nordisk's Obesity care products. Comparative figures for 2021 and 2022 have
been adjusted accordingly; please refer to section 8.1. New breakdowns including
comparative figures for 2021 and 2022 have been included on employees by gender
and by age group. Please refer to section 8.2.
Governance performance
New KPIs including comparative figures for 2021 and 2022 have been included on
number of substantiated cases reported via the Compliance Hotline and convictions
for violation of anti-corruption and anti-bribery laws. Please refer to section 9.2.
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