Title: Business strategies to reach new markets, new customers
1Business strategies to reach new markets, new
customers
- Universitas Comeniana Bratislavensis
- Dr. Brigitte Monsou Tantawy
2Business strategies to reach new markets, new
customers
3List of companies
- Anglo-American
- Cemex
- Eskom
- Grupo-Nueva
- Holcim
- Nestlé
- Novartis
- Novo Nordisk
- PG
- Philips
- Unilever
- Toyota
- Vodafone
4Business strategies to reach new markets, new
customers
5Instructions
- Prepare six to twelve slides to summarise key
information about the organisation you analysed
using the following slides for guidance. - Where possible, provide at least three years
trend data. - During the module you will be asked to share your
information with the group
6Company profile
- Please consider
- Financial information Turnover, profit, assets,
earnings per share - Organisation Business units, number of
employees, structure, countries with
manufacturing presence, countries with support
services (such as the HQ and RD), extent of
outsourcing - Core business Breakdown of products and
services, main customers served - Governance Vision, mission, values, code of
ethics - Strategy Key objectives, messages used to
attract investors, extent of social
responsibility, changes over time
7Sustainability profile
- Please consider
- Stakeholders Which ones, how identified, how
engagement is achieved - Risks opportunities How are they identified,
managed - Carbon Does the company engaged in CDP, is the
carbon footprint disclosed - Natural resources, including water does the
company use life cycle management - Measures Have sustainability metrics been
defined, do they align with the business risks
and stakeholders needs, how long have the
results been tracked - Reporting Types of external report produced
- Assurance Is an external assessment performed,
how do the results compare with GRI and Global
Compact, has there been any external recognition
(such as an award or ranking (e.g. DJSI,
FT4Good, BiTC, etc)
8Environmental Social Impact
- Please consider
- Strategy Affordability and accessibility of
products and services, contribution to millennium
development goals - Scope of activities Donations to charities,
sponsorships, core business - Cash added value Who benefits and to what
extent, e.g. Shareholders, employees,
re-investment, society - Local economic impact
- Investment in local employees Number of local
people in management positions, ratio of
activities conducted locally - Investment in local suppliers Use of suppliers
and partners, extent of value chain - Investment in local infrastructure
- Use of natural resources, biodiversity
- Exploitation of new markets
- What products and services have been developed to
address the bottom of the pyramid - Is there any investment in renewable energy
9Case analysis
- Key points to consider
- Understand the current strategy of the
organisation and how it has evolved in the past
years - Understand the benefits of the business model in
addressing new markets - Understand the challenges faced by the
organisation - Understand the contribution to the MDGs, the
impact on local economic development
10Comparison of cases
- Group 1
- Danone
- Grupo Nueva
- NovoNordisq
- PG
- Philips
- Group 2
- Cemex
- Nestlé
- Toyota
- Vodafone
- Group 3
- AngloAmerican
- Eskom
- Holcim
- Novartis
- Unilever
11Comparison of cases
- Key points to consider
- Compare the strategies, business and
sustainability, and their evolution - Understand analogies and differences is there an
impact of sector, geography, culture, - What are the risks? The opportunities?
- Identify the drivers of success
- How the strategies are successful, reaching the
Poor and addressing the MDGs? - Could you predict which one will be more
successful and why?
12Business strategies to reach new markets, new
customersAnglo-American case
13Company profile
- Anglo American is a global leader in mining,
focused on adding value for shareholders,
customers, employees and the communities in which
the Group operates. - Turnover 33,072m (9), operating profit 9.8bn
(54), assets 27,127m (-2), Underlying
earnings 5.5bn (46) Earnings per share 4.22
(73) - Number of employees 125000, in over 45 countries
- Industry Mining platinum, base metals, ferrous
metals, coal and industrial minerals - Mission - To be the leading mining company of
choice - Highest performing assets
- Maximise our share of profitable industry growth
- Set the standard for the industry in safety
- Preferred partner for governments and communities
- Supplier of choice for customers
- Best developer of talent and employer of choice
in the industry - Key Issues
- Safety - One incident is one too many
- Climate Change
- Risks growth increases energy demands, carbon
costs / caps, power shortages, markets for coal - Opportunities energy efficiency, CDM projects,
coal bed methane generation, clean coal
technologies - Stakeholders - Potential for high impacts on our
neighbours - host and home governments are
partners - Distribution of Benefits - All key stakeholders
should benefit from mining
14Sustainability profile
- Report to Society produced, moving towards
reporting in accordance with GRI guidelines - Assurance by KPMG in accordance with the
International Standard on Assurance Engagements
3000 Assurance Engagements other than Audits or
Reviews of Historical Information issued by the
International Auditing and Assurance Standards
Board. - We are in the process of reviewing our
sustainable development policy framework to
ensure consistency and ease of application across
the Group. - Safety and Sustainable Development (SSD)
Committee meet five times per year. The chief
executives of business units and the heads of
functions participate in a Sustainable
Development Council which oversees strategy,
targets and resource allocation. - Key channels for stakeholder engagement in 2006
- Investors - results presentations and road shows,
annual presentations, sustainable development
presentations, bilateral meetings and surveys - Governments - Direct engagement and through
industry associations, national partnerships,
international partnerships - International organisations - Membership of UN
Global Compact, ICMM, WBCSD and Global Business,
Coalition on HIV/AIDS, EITI, Voluntary Principles
on Security and Human Rights. - Dialogue with the International Finance
Corporation, the World Bank and UN Communities
Community engagement plans, SEAT, various public
forums and meetings, impact assessments,
complaints procedures and whistle-blowing - Contractors and suppliers - Commercial
interactions, tender and compliance processes,
open days, safety inductions - Customers - Commercial relationships, complaints
procedures, surveys - NGOs - Engagement on specific issues, involvement
in partnerships (e.g. on transparency,
biodiversity, human rights or HIV), memberships,
social investment - An integrated risk management system, which
includes sustainable development issues, is in
use to identify and manage key risk areas. - 86 of businesses certified to ISO 14001
15Social Impact
- Our business success brings with it obligations
of good stewardship and ethical behaviour. Our
operations will perform better when the
communities surrounding them are stable and
prosperous. Conducting business now with an eye
to the needs of the future is the essence of
sustainable development. Tony Trahar, Chief
Executive - Donations to charities, sponsorships - Global
spend by cause supported (million) - Health/HIV 5.7m
- Education and youth 12m
- Environment 1.6m
- Community development 14.8m
- Arts, culture and heritage 2.6m
- Housing 2.6m
- Other 11.0m
- Social Agenda
- Key challenges
- Growing stakeholder expectations
- Resource nationalism / distribution of benefits
- Resettlement
- Strengths
- Sector leading tools and initiatives
- Engagement in key international fora
- Human resource development
- HIV/AIDS programmes
16Business strategies to reach new markets, new
customersCemex case
17Company profile
- 2006 Net sales 18.249 billion (19),
- EBITDA 4.138 billion (16),
- ROCE 11.9(0)
- 3 Global Business Lines Cement, Ready-mix
concrete, aggregates - Executive Board of 6 Exec, 11 independent
- 50 countries, 2724 operating sites, 50,000
employees - Celebrated 100 years of growth in 2006
18Company profile
- Keys to continued success
- First, we need to continue to build an integrated
platform across our industrys value chain in key
markets around the world. - Second, we need to continue to focus on
developing our managers and employees. - Third, we need to enhance the sustainability of
our business. - Values
- We strive for excellence in our performance,
developing long-term relationships built on trust
and our essential values of collaboration,
integrity, and leadership. - Collaboration Work with others in a collective
pursuit of excellence - Integrity Act honestly, responsibly, and
respectfully toward others at all times - Leadership Envision the future and focus on
service, excellence, and competitiveness
19Sustainability profile
- Our contribution to sustainable development is
at the very heart of our ambitions Lorenzo H.
Zambrano, Chairman of the Board and Chief
Executive Officer - Our principles of sustainability drive us to
employ cutting-edge technology ensure energy
efficiency and optimum use of raw materials
promote a culture of environmental awareness,
safety, and integral health and use the most
effective equipment and systems to protect our
people and the environment. - We need to enhance the sustainability of our
business. This means different things to
different people. For our customers, it means
offering innovative value propositions in every
market we serve. For the communities in which we
operate, it means being a good neighbor and a
good environmental steward. For our employees, it
means striving for zero-accident work
environments, providing competitive compensation
and benefits, and offering exciting career
development opportunities. We know that we will
only prosper as a company if our stakeholders
prosper. - We have a SVP Sustainability who reports to the
EVP Development - As a member of the WBCSD, we are one of 10
leading cement companies to participate in the
Cement Sustainability Initiative (CSI), a project
that explores ways for our industry to meet the
needs of the present without compromising the
ability of future generations to meet theirs. The
CSI has agreed on a set of key performance
indicators (KPIs) for reporting on the main
sustainability challenges faced by our industry.
We are also participating in the Energy
Efficiency in Buildings (EEB) project, which help
our sector and other related industries to
address the challenges of sustainable
development.
20Sustainability profile
- We became a United Nations Global Compact
signatory in November 2004. - Six key areas where we can contribute to a more
sustainable society - Climate protection
- Fuels and raw materials
- Employee health and safety
- Emissions reduction
- Local impacts
- Internal business processes
- Environmental reporting since 1995,
sustainability reporting since 2003 - 15 stakeholder groups identified
- External and stakeholder review of past reports,
considering external assurance for future reports - Global Reporting Initiative G3 guidelines to
produce sustainability report, which meets
application level B. - Targets
- 25 reduction in CO2 emissions per metric ton of
cement product by 2015, from 1990 baseline - 10 alternative fuels substitution by 2015 15
by 2020 (Alternative fuels, including biomass,
already provide 25 of the total energy used in
our European cement plants) - 5 biomass fuels substitution by 2015 8 by 2020
- 12 alternative raw materials substitution by
2015 15 by 2020
21Social impact
- CEMEX is a pioneer in the implementation of
responsible initiatives that improve the
livelihood of people, contribute to the economic
development of communities, and make good
business sense Djordjija Petkoski, Head of
Business, Competitiveness, and Development, World
Bank Institute - CEMEX in Mexico is sharing its knowledge,
experience, and practices in social
responsibility with small and medium sized
enterprises (SMEs) We run the program in
partnership with the Inter-American Development
Bank (IADB) and the Anáhuac University. CEMEX and
the IADB have contributed most of the resources,
and the University provides specialized
consultancy. - Around 88 of purchases come from locally-based
suppliers in the countries where Cemex operate - Donated more than US35 million in social and
charitable donations gt1.2 of pre-tax income - 93 of sites worldwide have formal Community
engagement plans - Our community offices have served more than
160,000 families through our Patrimonio Hoy
program. In 2006, CEMEX received a World Business
Award for our contribution to sustainable
development through Patrimonio Hoy. - We have helped more than 20,000 families rebuild
their homes following hurricanes and other
natural disasters
22Business strategies to reach new markets, new
customersDanone case
23Company profile
- 2006 Net sales 14.073billion (9.7),
Underlying Net Income 1.194billion (15.8),
EPS 4.88 (17.9) - 3 Global Business Lines Dairy Products (56),
Beverages (28), Biscuits (16) and 3
Geographical Areas Europe (61), Asia (17),
Rest of World (22) - Executive Board of 9 people CEO, EVP, 3 Business
Lines, Finance, HR, RD, Development and Strategy - 120 countries, 201 manufacturing sites, 88 184
employees - 4 Brands of nearly 1bn and local brands
24Company profile
- Business strategy meets sustainable development
to create DANONE Way, a unique social model that
has the full support of the Management Committee - DANONE Way handbook, 30 indicators and DANONE Way
audits after 5 years 94 of deployment - Code of Business Principles from 1997
- Values
- Openness
- Enthusiasm
- Humanism
- Proximity
- Financial objectives
- Like-for-like sales growth of 6 to 8
- EBIT to grow faster than sales 7 to 10
- EPS growth gt 10
25Sustainability profile
- 1972 Founders speech The dual commitment to
business success and social progress - New Social Responsibility Committee and Social
Innovation Committee to select innovative social
projects - Focus on Food Safety and Quality, Nutrition and
Health - DANONEs Food, Nutrition and Health Charter from
2005 - Nutritional labelling and consumer information
services - Eco-efficiency, eco-innovation, Sustainable
Agriculture - New initiative RESPECT for suppliers
26Sustainability profile
- Key partnerships
- UNICEF
- Planète Urgence
- GAIN (Global Alliance for Improved Nutrition)
- Ramsar
- World Food Program
- WWF
- Environmental and social reporting for 9 years
- Measures - environmental, - social (3 years
trends and target), - Measure of impact of no measure on packaging, on
transport - External assurance by PWC and Mazars Guérard
- Template with GRI indicators
- Include in the food industry category of the Dow
Jones Sustainability Indexes (DJSI) for the past
7 years
27Social impact
- 16.7 millions for communities
- Grameen Danone Foods Ltd in Bengladesh
- Danone works with 11 250 milk producers and 3 800
through cooperatives in 19 countries - Social audits
28Business strategies to reach new markets, new
customersEskom case
29Company profile
- Electricity generation and distribution, wholly
owned by South African Government - Financial information Revenue R36,607m, profit
R4,635m, assets R128,152m - Vision - "Together building the powerbase for
sustainable growth and development." - Values
- Integrity
- Customer Satisfaction
- Innovation
- Excellence
- Strategic Objectives
- Quality and continuity of supply
- Capacity expansion
- Funding and financial resourcing
- Eskom's Ten Ethical Principles
- Perform your duties with honesty, integrity and
to the best of your ability. Do not allow anyone
to be misled. Communicate openly and honestly,
and demonstrate a sense of purpose and commitment
to achieving the optimum outcome, even under
difficult circumstances. - Treat people with fairness, courtesy and
sensitivity with respect to their rights. Have
respect for diversity. - Accept accountability for your actions and
decisions. - Behave in a way which is above reproach.
- Comply with all the rules, procedures and
regulations that apply to Eskom, its system and
the way Eskom conducts its business. - Use information obtained from Eskom only for the
purpose for which it is intended.
30Sustainability profile
- The annual report contains some information
related to sustainability and CSR - An index to the 2006 Annual Report based on the
Global Reporting Initiative (GRI) sustainability
reporting guideline criteria and the 10
principles of the UN Global Compact is provided - Eskom reports to stakeholders on the basis of the
triple bottom-line economic, environmental and
social. - Eskoms sustainability strategy acknowledges the
guiding principles adapted from the
Sustainability in the Electricity Utility Sector
reports published by the WBCSD. - Eskom was benchmarked against 17 reports from
South African and international energy, water and
resource sectors, all acknowledged as leading
examples of integrated sustainability reporting.
Eight integrated reports from electricity
utilities were included. The exercise highlighted
several opportunities to for improvement, which
are now being addressed. - Stakeholders
- Eskom values constructive dialogue and
relationships with stakeholders. Ongoing
interaction enables the business to improve
customer service, satisfy stakeholder needs, meet
regulatory requirements and play a more
significant role as a catalyst for economic
growth and nation-building. Eskom has a formal
and continuous programme of engaging with
specific groups of stakeholders and addressing
issues that are critical to the execution of its
business strategy. - The Eskom sustainability performance index uses
21 selected technical, economic, environmental
and social measures and compares performance to
set parameters, both short and long term. - Signatory of the UN Global Compact
- Environmental/safety performance for
2006 - Specific water consumption by power stations,
l/kWh Target1,32 Actual1,27 - Relative particulate emissions, kg/MWh
Target0,21 Actual0,26 - Carbon dioxide emissions, Mt Target203,7
Actual247,0 - Radiation release, milliSieverts
(mSv) Target 0,0049 Actual0,0079 - Disabling injury incidence rate, index
Target 0,40 Actual0,457 - Work-related fatalities, number Target
10 Actual19
31Social Impact
- Eskom was assessed in 2006 against the criteria
of the JSE Socially Responsible Investment (SRI)
Index that measures companies on their
sustainability and triple bottom-line commitment.
While Eskom, as an unlisted entity, does not
qualify for inclusion in this index, their score
complies with the minimum requirements for the
SRI index, and is comparable to the top
performers in the high environmental impact
category. - Local economic impact
- Eskoms corporate social investment (CSI)
programmes are aimed at contributing to the
development of the disadvantaged. Eskoms CSI
activities include various initiatives for skills
development, job creation, education and health.
Investment amounted to R110.5m in 2006 - Many CSI programmes are executed by the Eskom
Development Foundation. The Foundations mission
is to contribute to improving the lives of the
disadvantaged through integrated, efficient and
effective development programmes. During the
period, the Development Foundation approved
grants and donations to the value of R42,1
million benefiting 200 982 people - Employment equity policies have been implemented
that consider race, gender, and people with
disabilities to ensure Eskom builds an
organisation that represents all the people of
South Africa. - Results against target for 2006 are as follows
- Race
- Black1 staff at managerial level, Target gt
59,4 actual 60,1 - Black staff at all levels, Target n/a
actual 70,0 - Gender
- Women at managerial level, Target gt 31,1
actual 31,8 - Women at all levels, Target n/a actual
24,7 - People with disabilities, Target gt
2,4 actual 2,52 - Social performance
- Electrification, number of homes connected
Target 106 968 actual 222 314
32Business strategies to reach new markets, new
customersHolcim case
33Company profile
- Holcim is one of the world's leading suppliers of
cement and aggregates (crushed stone, sand and
gravel) as well as further activities such as
ready-mix concrete and asphalt including
services. - Turnover CHF24 billion (23) , Net income
CHF2,719m (52), assets CHF 44,702m (17.3), - 90,000 employees in more than 70 countries
- Industry cement, aggregates (crushed stone,
gravel and sand) as well as ready-mix concrete
and asphalt including related services. - Governance Executive committee of 7, Board of
directors 13 - Vision - to provide foundations for society's
future - Mission - to be the world's most respected and
attractive company in our industry - creating
value for all our stakeholders. - Values - strength, performance, passion
- Holcim Code of Conduct establishes a common and
consistent framework across our global
organization for how we will achieve our mission
and goals. It provides direction and
clarification in how we conduct our daily
business. High business ethics and personal
integrity ensure our credibility and reputation
as a Group. Its message is clear violations will
not be tolerated. Non-compliance may lead to
disciplinary sanctions, including termination of
employment. - Key objectives
- Continually set the highest standards of customer
satisfaction in our industry - Secure the strongest competitive position in our
markets - Partner with suppliers to deliver value-for-cost
procurement for the Group and our customers - Be recognized as an employer of first choice
- Empower our employees and integrate them fully
into our global network - Selectively grow our worldwide presence of
companies - Demonstrate our commitment to sustainable
development - Be acknowledged as a valued and trusted partner
in our community - Be the most recommended stock in our industry
34Sustainability profile
- Holcim is committed to the UN Global Compact, and
communicates annually on progress according to
the Compacts ten principles. Corporate
Sustainable Development Report prepared in
accordance with the 2002 Global Reporting
Initiative Guidelines. - Working across the triple bottom line (economic,
environmental and social) means embedding SD in
our vision, strategy and management systems,
turning challenges into opportunities,
innovating, and ensuring strong corporate
governance and organizational structures. - Stakeholder engagement
- a process model of stakeholder engagement has
been development for use across our worldwide
operations. The model details, step-by-step, the
cyclical process of engaging with stakeholders.
Each of the eight steps contains basic
principles, tools and mechanisms to apply. A
guidebook was developed to explain the model and
its tools to managers directly involved in
stakeholder processes. This is supplemented by
online support materials, such as templates,
matrices and good practice examples, with
in-person support available when required. - Type of engagement
- Needs assessment
- Stakeholder involvement in CSR planning and
management - CSR/SD memberships
- Stakeholder dialogues
- Community advisory panels
- Cooperations
- Comprehensive range of measures and targets for
environmental and social performance
35Sustainability profile (Contd)
- Assurance
- Holcim report in accordance with the Global
Reporting Initiative. - KPMG has provided independent assurance over CO2
data according to the WBCSD/WRI Cement CO2
Protocol. - 85 of cement plants and grinding stations and
64 of AFR pre-treatment platforms have
Environmental Management Systems certified to
ISO14001. - Holcim is a co-founder of the World Business
Council for Sustainable Developments Cement
Sustainability Initiative, supports the UN Global
Compact, and has formed a strategic alliance with
the German Technical Cooperation (GTZ). - External recognition
- Acknowledged leader of the industry in the Dow
Jones Sustainability Index 2006 - included in the FTSE4Good
- included in the Ethibel Sustainability Index
Excellence. - Results
- on track to reduce global average net specific
CO2 emissions by 20 by 2010, with 1990 as the
base year, reported according to the WBCSD/WRI
Cement CO2 Protocol. - By the end of 2005, specific net CO2 emissions
per tonne of cement had been reduced by 14.7. - We will reduce global average specific nitrogen
oxides (NOx), sulfur dioxide (SO2) and dust
emissions (g pollutant/tonne cementitious
materials) by 20 by 2010, compared to 2004
levels. - The first Holcim Awards competition conducted by
the Holcim Foundation for Sustainable
Construction attracted more than 3,000
submissions from 118 countries. 46 projects
shared in prize money of CHF 2.5 million in the
global and preceding regional phases of the
awards cycle. The competition encourages
sustainable responses to key issues related to
building and construction.
36Social Impact
- 1 of net income (CHF 32.3 million) was spent on
community projects, donations and charity. - Donations and charity 50
- Education focus projects 8
- Community development focus projects 10
- Infrastructure focus projects 10
- CSR coordination 7
- Disaster relief 15
- Local economic impact
- Engaging in our spheres of influence is key to
maintaining our license to operate. We encourage
Group companies to focus their community projects
on three areas providing education for societys
future, building infrastructure for liveable
communities and supporting sustainable community
development. - Our 1,105 top and senior managers represent 49
nationalities. - 80 of our purchases are locally sourced.
37Social Impact (Contd.)
- CSR Policy Statement - We are committed to work
with all our stakeholders, building and
maintaining relationships of mutual respect and
trust. We aim to contribute to improving the
quality of life of our workforce, their families
and the communities around our operations. - Pillars
- Business Conduct - We are committed to high
standards of business conduct and participate in
the UN Global Compact. - Employment Practices - We respect workers
rights, ensure wages that meet local industry
good practice and strive to provide best possible
working and development conditions. We commit to
responsible restructuring and reorganization
within the local legal framework. - Occupational Health Safety (OHS) - We provide
healthy and safe workplaces by striving for zero
risk to our employees, contractors and visitors. - Community Involvement - We assess local needs,
promote community - involvement and partner with local stakeholders
around our operations to improve educational,
cultural and social development. - Customer and Supplier Relations - We offer
competitive and innovative products and services
that meet the needs of our clients, and expect
our suppliers to do likewise. - Monitoring and Reporting Performance - We
identify and monitor issues important to our
social performance. We evaluate our programs and
activities and publicly report on performance and
progress.
38Business strategies to reach new markets, new
customersNovonordisk case
39Company profile
- Novo Nordisk is a healthcare company and a world
leader in diabetes care. Novo Nordisk
manufactures and markets pharmaceutical products
and services that make a significant difference
to patients, the medical profession and society.
In addition, Novo Nordisk has a leading position
within areas such as haemostasis management,
growth hormone therapy and hormone replacement
therapy. - Financial information Turnover DKK 38,743
million (15) , net profit DKK 6,452 million
(10) Earnings per share DKK 19.99 (12) - Organisation
- headquarters in Denmark
- 11 board members, including 4 employee
representatives, Exec management team of 5 - 23,600 employees
- Production facilities in six countries.
- Affiliates or offices in 79 countries
- markets its products in 179 countries
- Volume market share in insulin 52.0
40Company profile (Contd.)
- Vision (abbreviated)
- We will be the world's leading diabetes care
company. - We will offer products and services in other
areas where we can make a difference. - We will achieve competitive business results
- A job here is never just a job
- Our values are expressed in all our actions
- Our history tells us, it can be done
- Values (abbreviated)
- Accountable
- Responsible
- Engaged with stakeholders
- Open and honest
- Ready for change
- Commitments (abbreviated)
- Financial responsibility
- Environmental responsibility
- Social responsibility
- Code of ethics
- Business ethics programme comprising online
e-learing training and supporting booklet,
available to all employees.
41Sustainability profile
- Reporting
- the sustainability reporting is integrated with
the Novo Nordisk annual report as non-financial
reporting. This section of the report is assured
independently by PWC in accordance with the
AA1000 assurance standard and the International
Standard on Assurance Engagements (ISAE) 3000 - Triple bottom line focus
- Novo Nordisk is committed to developing its
business towards ecological, social and economic
sustainability. This commitment is demonstrated
through its values and its environmental and
social responsibility policies. The Triple Bottom
Line approach enables Novo Nordisk to deliver
long-term value to the business and contribute to
the global society. It has two dimensions risk
mitigation and innovation. - Novo Nordisk has identified its stakeholders and
developed an economic stakeholder model to
illustrate interactions and dependencies - Measures
- Resources Water consumption, Energy
consumption, Materials - Waste water discharge COD, Nitrogen,
Phosphorous - Waste hazardous and non-hazardous
- Emissions CO2, organic solvents
- Eco-intensity ratios (EIR) - a new key
performance indicator to measure water and energy
efficiency relative to production
42Sustainability profile (Contd.)
- Compliance
- By the end of 2006 All but five Novo Nordisk's
production sites were ISO 14001-certified. - In 2007, Novo Nordisk was rated number 14 on CNBC
European Business magazines list ranking the
worlds top low-carbon pioneers. - Initiatives and targets
- In January 2006, Novo Nordisk signed an agreement
with WWF that made the company a member of the
Climate Savers programme. This programme invites
leading global businesses to demonstrate that
investing in reduction options can benefit the
long-term health of the business. Under this
agreement, Novo Nordisk has set an ambitious
target for the companys CO2 reductions to
achieve a reduction of 10 by 2014 as compared
with 2004. - The ongoing cLEAN programme an adapted LEAN
manufacturing programme to increase productivity
in Product Supply underpins the climate
strategy and will contribute to lowering the
level of CO2 emissions. As a result of this
programme Novo Nordisk will achieve a lower
energy consumption per produced unit.
43Social Impact
- At Novo Nordisk, social responsibility is more
than a virtue it is a business imperative. It
is an investment in our future. - Donations to charities
- In 2006 total corporate and local donations
amounted to 224 million Danish kroner, including
62 million Danish kroner donated to World
Diabetes Foundation, sponsorships - Sponsorships in 2006 amounted to 1.8 million
Danish kroner. - Beneficiaries
- WDF is an independent trust, launched by Novo
Nordisk in 2001 with a grant of 500 million
Danish kroner (about 67 million euros) to be
spent over 10 years to improve diagnosis,
treatment and capacity building of diabetes in
places where lack of funding is apparent. At the
end of 2006, WDF had funded 95 projects in more
than 69 countries. If all projects have the
intended impact, they could have a direct
influence on some 40.5 million people. - The Oxford Health Alliance is a public-private
partnership launched in 2003 by Novo Nordisk and
the University of Oxford to promote innovative
action around preventing and reducing the global
impact of chronic diseases such as diabetes,
cardiovascular disease, lung disease and some
cancers. - Social impact measures
- Measure of living our values from employee
survey - Absenteeism and staff turnover
- Employee diversity
- injuries and fatalities
- Training costs
- Access to healthcare in Least Developed Countries
(LDCs)