Investor Presentaiton
Novo Nordisk Annual Report 2023
Introducing Novo Nordisk
Strategic Aspirations
Risks
Management
Consolidated statements
Additional information
Section 7
Environmental performance
7.1 Energy consumption for operations and
share of renewable power for production sites
Energy consumption for operations
1,000 GJ
Production
Office buildings and laboratories
Total energy consumption
7.2 Scope 1, 2 and 3 emissions
61
2
606
1,000 tonnes CO₂e
2023
2022
2021
Scope 11
78
76
77
• Production
31.
25
29
Office buildings and laboratories
1
3
• Company cars
46
48
46
Scope 2¹
15
16
16
Production
12
11
10
2023
2022
2021
3,214
3,091
2,859
570
586
528
Office buildings and laboratories
Scope 32
3
5
3,738
2,418
N/A
3,784
3,677
3,387
• Purchased goods and services³
2,067
1,473
N/A
.
Capital goods³
1,315
614
N/A
Fuel and energy related activities
56
55
N/A
Upstream transportation and distribution
113
123
N/A
.
Waste generated in operations
6
5
N/A
• Business travel1.3.
83
73
N/A
Employee commuting
43
35
N/A
Downstream transportation and distribution
52
37
N/A
End-of-life treatment of sold products
Total CO₂e emissions
3
3
N/A
3,831
2,510
N/A
In 2023, Novo Nordisk continued working with energy-saving, optimisation and
stabilisation projects. This included utilising more renewable natural gas and steam,
reducing propane, diesel and heavy fuel usage, and implementing new dehumidification
systems. Energy-saving projects implemented in 2023 within production sites resulted in
annual energy savings of 64 thousand GJ. These efforts could not fully mitigate the
increased production volumes, ramp-up activities and impact from adverse local weather
conditions, and consequently energy consumption for production increased by 4%.
Energy consumption in office buildings and laboratories decreased by 3% due to reduced
use of facilities and implementation of energy-saving measures.
Since 2020, Novo Nordisk has transitioned to sourcing 100% renewable power for
production through a mix of solutions, primarily Renewable Electricity Certificates
(REC), Power Purchase Agreements (PPA), Guarantees of Origin (GO) as well as on-
site renewable solutions.
ACCOUNTING POLICIES
Energy consumption for operations is measured as consumption of power, steam, heat
and fuel. Fuel is mainly natural gas, wood, diesel oil, gas oil and light fuel oil. Energy
consumption is based on metre readings and invoices. Energy consumption in office
buildings outside of Denmark is limited to the consumption of power.
The share of renewable power used at production sites is reported according to the
Greenhouse Gas (GHG) Protocol scope 2 Guideline. The market-based method is used
to account for renewable power at production sites through procurement of contractual
instruments such as Energy Attribute Certificates (EAC), PPAs and GOs from sources such
as wind, hydro, solar and biomass. Contractual instruments are procured based on the
total consumption of power in each country involved in production.
1. Categories measured in CO₂ in comparison periods. 2. The calculation of scope 3 emissions is substantially
based on estimations and therefore inherently uncertain. 3. 2022 figures have been restated by adding 222, 137
and 18 thousand tonnes, respectively.
In 2023, Novo Nordisk experienced increased production volumes, ramp-up activities
and impact from adverse local weather conditions; however, due to energy-saving
projects and renewable power initiatives, scope 1 and 2 emissions remained broadly
unchanged from 2022. Scope 3 emissions increased by 55% due to substantial
investments in production capacity and increase in supply chain activities to support
company growth. The two categories Purchased goods and services and Capital goods
account for 90% of the scope 3 emissions, and they account for 98% of the overall
scope 3 emissions' increase.
ACCOUNTING POLICIES
Scope 1 emissions
Scope 1 emissions comprise direct CO₂e emissions from sources that are owned or
controlled by the Novo Nordisk Group. CO₂e emissions from production, office buildings
and laboratories include consumption of fuel oil, propane, wood and natural gas.
CO₂e emissions from production sites additionally include emissions from leakage of
refrigerants from cooling systems. Production sites report on refrigerant quantities
when there is leakage of refrigerant over 1 kg. Associated CO₂e emissions are
calculated based on refrigerant quantities and their respective Global Warming
Potential (GWP).
CO₂e emissions from company cars cover cars leased or owned by Novo Nordisk.
Emissions are calculated by multiplying the CO₂e emission factors from the
Environmental Protection Agency (EPA) by the volumes of diesel and petrol used.
Scope 2 emissions
Scope 2 emissions comprise CO₂e emissions from purchased electricity, heat and
steam. Market-based emissions are calculated based on CO₂e emission factors
from the previous year. For a full overview of location-based emissions, please visit:
www.cdp.net.
Scope 3 emissions
Novo Nordisk has identified 9 categories, out of the 15 categories of scope 3 emissions
defined by the GHG protocol, as relevant. The remaining 6 categories are not separately
reported on as they are either not applicable to Novo Nordisk or emissions have been
included in the other emission categories.
Purchased goods and services
Purchased goods and services include emissions related to all spend from external
suppliers, except for investment spend and travel categories, which are included
in other scope 3 categories. Purchased goods and services mainly comprise of raw
materials for products, marketing, packaging materials, as well as consumables for
laboratory and IT office equipment. Direct spend is converted into CO₂e emissions
using the average data method. Material weights are matched with CO₂e factors
depending on data availability. A spend-based factor is applied for direct spend data
where no weight can be obtained. Indirect spend is converted into CO₂e using a
spend-based method.
Capital goods
Capital goods include emissions related to all indirect investment spend from external
suppliers, mainly production utilities and equipment. Indirect spend is converted into
CO₂e emissions via the average spend-based method using emission factors.
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