Novo Nordisk’s sustainability approach adds value to the business. Our environmental performance is tracked and measured through Environmental Management Accounting (EMA). Here are some examples of how EMA works in practice. They demonstrate that when decisions are challenged from an environmental perspective, the benefits are tangible on both the environmental and the financial bottom lines. More information and additional business cases are provided in the individual site reports.

Kalundborg case - Clayton case

Higher yield – lower costs and CO2 emissions in Kalundborg

Jens G. Larsen and Keld Johnsen in Kalundborg with a novel cleaning device invented by employees to improve cooling efficiency in fermentation tanks resulting in major environmental and financial gains.

In 2003, sucrose replaced glucose in a fermentation process in Kalundborg to yield higher production and save raw material costs. While the glucose had been imported, the sucrose is produced locally at a lower cost. Using a locally produced raw material avoids estimated emissions of 2,600 tons CO2, due to less transport and less CO2-intensive production of sucrose. Furthermore, as sucrose results in a higher yield per raw material input, we can obtain a more cost-efficient and environmentally sound process with 7% savings in water consumption, 2% in energy consumption and a significant reduction in wastewater pollution per produced unit.

In general, an increase in yield requires more cooling in the fermentation tanks. Earlier in the year, new cooling towers replaced old, worn-out towers. The environmental review conducted prior to the investment pointed to several ways to significantly increasing the cooling efficiency – getting more cooling per energy unit and emitted CO2 – and a substantial noise reduction. The savings in the operational costs are between DKK 1–2 million per year, depending on the level of production.

Efficiency gains can also be achieved by raising awareness and inspiring employees to use their knowledge and creativity. A good example is the cleaning of the cooling spirals in our fermentation tanks, fouled by organic growth from the surface water used for cooling. The idea came from a team of maintenance operatives in the department, who created a highly innovative cleaning device of foam rubber and brushes that can be used during production. The result is a considerable increase in the cooling effect, which increases production yield. After implementation, the cooling capacity can be maintained throughout the fermentation period, whereas previously it fell gradually to 40–50% of the initial level. The environmental benefit and financial value of this idea and investment are to be compared with the environmental impact avoided and the financial costs of establishing the equivalent increase in production capacity by means of new fermentation tanks and extra cooling capacity.

Hazardous waste reduction pays in Clayton

James Vick and Kevan McCance at the ’Vyleater’ in Clayton which improves work processes and waste handling, and thus reduces disposal costs.

At the insulin production facility in Clayton, North Carolina, a new process for handling reject insulin vials and cartridges was introduced. It replaced a procedure that required cartridges and vials to be accumulated in 55-gallon steel drums and shipped off site for incineration. During the process, the entire drum, containing glass and liquid, was incinerated. These factors, combined with disposal costs based on weight, made this disposal method a poor choice both environmentally and financially. Total disposal costs in 2000 were over USD 100,000. With the new method, the insulin liquid is separated from the glass containers prior to disposal. After separation, the insulin liquid is accumulated in the drums for controlled disposal. The glass is recycled or landfilled. For an investment of less than USD 60,000, we achieve annual savings of USD 45,000 on hazardous waste disposal costs. The investment was recouped in 1.5 years.