Novo Nordisk Annual Report 2021
Contents
Introducing Novo Nordisk
Strategic Aspirations
Key risks Management
Consolidated statements
Additional information
Novo Nordisk Annual Report 2021 90
Accounting policies
Diversity at Novo Nordisk is reported as the percentage split by gender in
leadership positions. Senior leadership positions are defined as employees
in the global job levels Chief Executive Officer (CEO), Executive Vice President
(EVP), Senior Vice President (SVP), Corporate Vice President (CVP) and
Vice President (VP). Overall leadership positions are defined as Directors,
Managers, Team Leaders and senior leadership positions.
Diversity at the Board of Directors is reported as the percentage split by
gender among all members, including employee-elected members.
8.6 Total tax contribution
Total tax contribution
Corporate income taxes paid
Corporate income taxes paid primarily consist of corporate income taxes
and withholding taxes on company dividends paid during the year.
Employment taxes
Employment taxes primarily consist of taxes collected from the employees
on behalf of the government and social security costs (part of payroll taxes
in some countries).
Indirect taxes
Indirect taxes consist of non-refundable VAT, net VAT collections, customs
duties, environmental taxes and property taxes.
Other taxes
Other taxes consist of country-specific taxes not linked to one of the
categories above, e.g. the US branded prescription drug (BPD) fee.
Taxes
DKK million
Taxes
borne collected
2021
2020
2019
Corporate income taxes
paid
Employment taxes
Indirect taxes
14,438 3,952 18,390 13,577
1,893 8,947 10,840 9,588
1,506 1,106 2,612 2,497
8.7 Donations and other contributions
Other taxes
Total
751
18,588
14,005
751
32,593
714
26,376 27,527
14,392
9,638
2,610
887
Donations and other contributions
DKK million
2021
2020
2019
World Diabetes Foundation (WDF)
Novo Nordisk Haemophilia
Foundation (NNHF)
92
138
86
Total donations and other
contributions
92
158
Section 9
Governance
performance
9.1 Business ethics reviews and training
Accounting policies
The number of business ethics reviews is recorded as the number of
business ethics reviews performed by Group Internal Audit in subsidiaries,
production sites, vendors and headquarter areas.
The mandatory business ethics training is based on the Business Ethics
Code of Conduct in the form of globally applicable e-learning and related
tests released annually by the Novo Nordisk Business Ethics Compliance
Office. The percentage of employees completing the training is calculated as
the percentage of completion of training in both the Code of Conduct and
related tests based on internal registrations.
The total tax contribution in 2021 amounted to DKK 32,593 million split with
57% on taxes borne and 43% on taxes collected. In 2020, the split was 52%
on taxes borne (DKK 13,676 million) and 48% on taxes collected (DKK 12,700
million).
The overall increase in total tax contribution from 2020 to 2021 is primarily
related to Corporate income taxes paid. In 2020 the calculated corporate
tax payable exceeded the prepayment of corporate income taxes in
Denmark. These additional corporate income taxes have been paid in 2021.
Furthermore, the profit before tax has increased for 2021, also resulting in
an increase in Corporate income taxes paid.
Accounting policies
Novo Nordisk's total tax contribution is measured as the taxes borne or
collected by Novo Nordisk, which have been paid in the respective year.
Taxes borne are defined as taxes where Novo Nordisk carries the cost. Taxes
collected are defined as taxes collected by Novo Nordisk on behalf of others,
e.g. employee income taxes deducted from the employee salaries and paid
on to the government.
20
19
9.2 Supplier audits
105
Supplier audits
Number
2021
2020
2019
Responsible sourcing audits
Quality audits
16
7
27
237
170
209
253
177
236
The WDF, an independent trust, supports sustainable partnerships and
acts as a catalyst to help others do more. The amount granted to WDF has
decreased from DKK 138 million in 2020 to DKK 92 million in 2021 as the
donation in 2020 included a special one-off contribution of DKK 50 million.
In 2021, the WDF Board of Directors approved funding to 13 partnership
projects in 16 countries. See note 5.2 in the consolidated financial
statements and worlddiabetesfoundation.org for additional information.
The NNHF supports programmes in low- and middle-income countries.
Initiatives focus on capacity-building, diagnosis and registry, awareness and
advocacy. Novo Nordisk agreed to a donation of DKK 20 million to NNHF in
2021 but due to financial considerations from NNHF the donation was not
paid out. Since 2005, the NNHF has provided funding for 289 programmes
in 83 countries. See nnhf.org for additional information.
Accounting policies
Donations and other contributions by Novo Nordisk to the WDF and the
NNHF are recognised as an expense when the donation or contribution is
paid out or when an unconditional commitment to donate has been made.
Total supplier audits
The number of audits concluded in 2021 increased by 43% compared to
2020. The increase represents an improved ability to conduct audits of
suppliers although the effects of COVID-19 continue to limit travel and
access to suppliers' facilities. One critical finding regarding credibility of
certificate of analysis has been issued during a qualification audit in 2021.
Consequently, Novo Nordisk has decided not to use the supplier in question.View entire presentation