As a large energy consumer in Denmark, and an expanding international enterprise, Novo Nordisk has to take the next step from eco-efficiency to a CO2 focus. A new company-wide strategy is backed by local initiatives, engaging employees to take action for a better global environment.

A global challenge - Innovative approaches 

Cooling towers in Kalundborg. Most of the consumption of energy and the CO2 emissions relate to supply plants, eg air compressors, pumps, ventilation and cooling, for our production processes. These areas are therefore highlighted in Novo Nordisk’s CO2 strategy.

Warming of the atmosphere, caused by the emission and accumulation of greenhouse gases (GHGs), is at risk of changing the global climate, and subsequently the conditions of life on earth. This not only presents a risk to humans, animals and ecosystems but to business as well, because an economy dependent on fossil fuels is not sustainable in the long term.

Regional and national climate strategies and international climate conventions expect business to deliver a significant part of the reductions in GHGs. Investors, too, increasingly expect companies to take action to address climate change. In the Carbon Disclosure Project, in which Novo Nordisk participates, 87 institutional investors representing assets in excess of USD 9 trillion requested the Financial Times 500 Global Index companies to disclose information related to GHG mitigation. These investors see growing financial risk related to climate change.

In 2003 we worked with internal and external stakeholders to define the main challenges on the climate change agenda for Novo Nordisk. We are developing a proactive strategy for tackling climate change. We are covered by the EU directive for GHG emission allowance trading, which will take effect from 2005, and set absolute limits to the CO2 emissions from some of our production facilities.

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In recognition of the global need for absolute reductions of GHG emissions, we are currently preparing an action plan, which builds on our long history of successfully optimising energy efficiency. Our track record shows that even high efficiency gains of an average of 18% per year have not resulted in reductions in our overall CO2 emissions. Achieving emission reductions is a particular challenge in light of the fact that we also have a corporate target to ensure the expansion and continual growth of our company.

For our production facilities these actions are likely to include an even greater emphasis than we have today on making processes more energy efficient, using more environmentally sound forms of energy, and reducing energy consumption in existing and new facilities. Our analysis points especially to utility facilities, such as cooling, ventilation and process air, as areas with a potential for significant reductions.

Meeting the challenge of reducing CO2 emissions will require some technological shifts, which we are beginning to explore. One example is a pilot biogas installation at our largest production site in Kalundborg, Denmark. This pilot project has shown that a special treatment process can convert organic matter in wastewater to biogas to produce electricity and thus significantly reduce CO2 emissions from fossil fuels. Moreover, the pilot project points to a cost-effective way of achieving additional wastewater treatment capacity, providing both an economic and an environmental case for making such a technological shift.

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We also intend to emphasise energy considerations in research and development projects in a more focused way than previously. This is another example of how achieving emission reductions in the long term will require new approaches.

Besides technical solutions, our actions involve revisiting our environmental impact indicators. This exercise has helped us to develop a more sustainable business model and examine the adequacy of current incentive structures, the need for new people competences and a more holistic approach.

We are working with external stakeholders, including environmental NGOs, to develop and implement our CO2 strategy. Together with partners, Novo Nordisk intends to do its part to address climate change, recognising that there are also opportunities in a fossil fuel-constrained world.