Claus Stig - LCA Sustainable Product Design Europe 2010
Claus Stig - LCA Sustainable Product Design Europe 2010 Claus Stig - LCA Sustainable Product Design Europe 2010
090124 EB DIRECTORS MEETING, BÅSTAD, SWEDEN Sustainability as business strategy Claus Stig Pedersen Ph.D, Adjunct Professor, Chairman Senior Director, Head of Sustainability Development Novozymes A/S
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- Page 4 and 5: Integrated sustainability approach
- Page 6 and 7: 12/16/ 6 10 6 12/16/10 NOVOZYMES PR
- Page 8 and 9: I know ! I want ! I am able ! Drive
- Page 10 and 11: STRATEGIC PROJECTS NZ Sustainabilit
- Page 12 and 13: 12/16/ 10 12 Customers: NOVOZYMES P
- Page 14 and 15: 12/16/ 10 14 NOVOZYMES PRESENTATION
- Page 16 and 17: STAKEHOLDER VALUE CREATION CUSTOMER
090124<br />
EB DIRECTORS MEETING, BÅSTAD, SWEDEN<br />
Sustainability<br />
as business strategy<br />
<strong>Claus</strong> <strong>Stig</strong> Pedersen<br />
Ph.D, Adjunct Professor, Chairman<br />
Senior Director, Head of Sustainability Development<br />
Novozymes A/S
2 12/16/10<br />
NOVOZYMES PRESENTATION<br />
WORLD LEADER IN BIOINNOVATION<br />
• 5500 employees<br />
• 1,3 billion EUR in sales 2009<br />
• 15 % of sales re-invested in R&D<br />
• 20% operating profit margin<br />
• 25 % of sales from new products in 2009
FROM The solutions of nature<br />
TO Solutions for detergents, pharmaceutical products,<br />
the energy sector, and lots of other applications<br />
Picture<br />
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guide
Integrated sustainability approach<br />
Novozymes Vision<br />
”We imagine a future where our biological<br />
solutions create the necessary balance<br />
between better business, cleaner<br />
environment, and better lives.”<br />
Sustainability is<br />
integrated with<br />
our major business<br />
processes<br />
Integrated<br />
reporting<br />
Sustainability<br />
bonus scheme<br />
+<br />
Values<br />
Policies,<br />
standards-<br />
Stock option<br />
program<br />
Strategies
LC based sustainability approach<br />
<strong>LCA</strong> link business and sustainability<br />
<strong>LCA</strong> applied since 2004 to sustainability optimize<br />
R&D, Sourcing, <strong>Product</strong>ion, Marketing, Sales and<br />
Customer application of our solutions<br />
<strong>LCA</strong> studies are<br />
conducted and<br />
verified by a third<br />
party in accordance<br />
with ISO 14040 and<br />
published in various<br />
journals<br />
.
12/16/<br />
6 10 6 12/16/10<br />
NOVOZYMES PRESENTATION<br />
First carbon foot print of Novozymes products<br />
0.8<br />
0.5<br />
mio. ton CO 2 ton<br />
Novozymes’<br />
energy suppliers<br />
0.06<br />
mio. ton CO 2<br />
Novozymes<br />
25 mio.<br />
ton CO 2<br />
0.3 0.8<br />
mio. ton CO 2<br />
Novozymes’<br />
ingredient suppliers<br />
Customers using Novozymes’<br />
enzyme products in 2007<br />
External review by<br />
<strong>LCA</strong> experts in PwC
guide<br />
7 12/16/10<br />
NOVOZYMES PRESENTATION<br />
PROCE<br />
World<br />
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text. D<br />
recolor<br />
arrow.<br />
Industry<br />
Customer<br />
Make it great<br />
to be a Zymer<br />
Deliver radical innovation<br />
to customers<br />
Drive the world<br />
towards sustainability<br />
>75<br />
every year in employee score on<br />
“satisfaction and motivation”<br />
>10%<br />
in organic sales growth p.a.,<br />
excluding sales of enzymes for<br />
conversion of biomass and<br />
excluding acquisitions<br />
>75<br />
million tons reduction in CO2<br />
emissions enabled by<br />
customers use of our solutions<br />
by 2015
I know !<br />
I want !<br />
I am able !<br />
Drive the world toward sustainability<br />
• Become a voice on the world stage<br />
• Drive new business from<br />
sustainability<br />
Build sustainability capabilities<br />
Investor attraction &<br />
Business development<br />
Improved regulatory<br />
framework conditions<br />
Cost reduction<br />
Improved public opinion<br />
& employee good feel<br />
Risk minimization
NZ Sustainability Strategy<br />
CAPABILITIES..<br />
INFLUENCING THE<br />
MARKET<br />
FRAMEWORK<br />
CONDITIONS<br />
INTEGRATING<br />
SUST. IN ALL<br />
RELEVANT<br />
ACTIVITIES<br />
SPOTTING RELEVANT<br />
TRENDS/ISSUES AND<br />
NAVIGATING<br />
STRATEGICALLY<br />
MAKING OUR<br />
CUSTOMERS THE<br />
HEROES<br />
DRIVE THE WORLD<br />
TOWARD<br />
SUSTAINABILITY<br />
ATTRACT AND<br />
PARTNER<br />
WITH SUST.<br />
STAKEHOLDERS<br />
TAKING A<br />
LEADERSHIP<br />
POSITION<br />
DEV.NEW BUSINESS<br />
FROM<br />
SUSTAINABILITY
STRATEGIC<br />
PROJECTS<br />
NZ Sustainability Strategy<br />
INFLUENCING THE<br />
MARKET<br />
FRAMEWORK<br />
CONDITIONS<br />
INTEGRATING<br />
SUST. IN ALL<br />
RELEVANT<br />
ACTIVITIES<br />
SPOTTING RELEVANT<br />
TRENDS/ISSUES AND<br />
NAVIGATING<br />
STRATEGICALLY<br />
MAKING OUR<br />
CUSTOMERS THE<br />
HEROES<br />
DRIVE THE WORLD<br />
TOWARD<br />
SUSTAINABILITY<br />
ATTRACT AND<br />
PARTNER<br />
WITH SUST.<br />
STAKEHOLDERS<br />
STAKEHOLDER ENGAGEMENT<br />
TAKING A<br />
LEADERSHIP<br />
POSITION<br />
DEV.NEW BUSINESS<br />
FROM<br />
SUSTAINABILITY<br />
SUST. INTEGRATION &<br />
EMPOWERMENT<br />
SUST. PLATFORM<br />
DEVELOPMENT
STAKEHOLDER<br />
VALUE CREATION<br />
CUSTOMERS<br />
CUSTOMERS<br />
CUSTOMERS<br />
CUSTOMERS<br />
CUSTOMERS<br />
REGULATORS<br />
CUSTOMERS<br />
INVESTORS<br />
EMPLOYEES<br />
OPINION<br />
LEADERS<br />
SUPPLIERS<br />
S&M<br />
HR<br />
Com<br />
PA<br />
Prod<br />
Proc<br />
FIN<br />
R&D<br />
SUSTAINABILITY<br />
DEVELOPMENT<br />
BOARD<br />
SUST. PLATFORM<br />
- DOCUMENTATION<br />
- TOOLS, SYSTEMS<br />
- KNOWLEDGE
12/16/<br />
10<br />
12<br />
Customers:<br />
NOVOZYMES PRESENTATION<br />
Ambition: Help customers become “heroes in the market place”<br />
through our sustainability insights and solutions<br />
Example: CO 2 emission reductions<br />
CO 2 COSTS PRODUCING 1KG<br />
ENZYME: 1-10 KG<br />
CO 2 SAVINGS USING 1 KG ENZYME<br />
IN THE MANUFACTURING OF<br />
CONSUMER PRODUCTS :<br />
UP TO<br />
1,300 KG<br />
3,800 KG<br />
3,400 KG<br />
CEREAL FOOD<br />
30 KG<br />
40 KG<br />
100 KG<br />
150 KG<br />
150 KG<br />
200 KG<br />
600 KG BIOCATALYSIS<br />
OILS & FATS<br />
PAPER<br />
ANIMAL FEED<br />
LEATHER<br />
TEXTILES<br />
BIOETHANOL<br />
DETERGENT<br />
FOOD
13<br />
12/16/10<br />
NOVOZYMES PRESENTATION<br />
Customers – Customers:<br />
Ambition: leverage the power of retailers<br />
Example:<br />
Novozymes Wal-Mart engagements:<br />
Member of Wal-Mart sustainable value<br />
networks (strategy groups) for:<br />
• Chemical Intensive <strong>Product</strong>s<br />
• Textile <strong>Product</strong>s<br />
To share knowledge on best practice´s<br />
Founding member of the Wal-Mart initiated<br />
Sustainability Consortium aimed at<br />
changing the consumer market through<br />
life cycle improvements
12/16/<br />
10<br />
14<br />
NOVOZYMES PRESENTATION<br />
Customers – Customers – Customers:<br />
Ambition: Consumer engagement<br />
• Catchy<br />
• Actionable<br />
• Teases curiosity<br />
• You just can’t say<br />
’no’ or disagree
Opinion Leaders:<br />
Ambition:<br />
Change the market<br />
framework conditions<br />
through NGO partnership<br />
and political influence
STAKEHOLDER<br />
VALUE CREATION<br />
CUSTOMERS<br />
CUSTOMERS<br />
CUSTOMERS<br />
CUSTOMERS<br />
CUSTOMERS<br />
REGULATORS<br />
CUSTOMERS<br />
INVESTORS<br />
EMPLOYEES<br />
OPINION<br />
LEADERS<br />
SUPPLIERS<br />
S&M<br />
HR<br />
Com<br />
PA<br />
Prod<br />
Proc<br />
FIN<br />
R&D<br />
SUSTAINABILITY<br />
DEVELOPMENT<br />
BOARD<br />
SUST. PLATFORM<br />
- DOCUMENTATION<br />
- TOOLS, SYSTEMS<br />
- KNOWLEDGE
CONCLUDING<br />
REMARKS<br />
Sustainability is a great business driver<br />
- but no walk in the park!<br />
EDITIN<br />
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top left co<br />
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Keys to success are:<br />
• Strategic anchoring<br />
• Business integration<br />
• <strong>Product</strong> lifecycle insights and engagement<br />
• Stakeholder engagement<br />
• People engagement<br />
THANK YOU<br />
guide
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