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Click below to download The Novozymes Report 2015 in PDF format.

  •  The big picture
  •  Our business
  •  Governance
  •  Accounts and performance
  •  Supplementary

Statement of the Board of Directors and Executive Leadership Team

The Board of Directors and Executive Leadership Team have today considered and approved the Annual Report of Novozymes A/S for the financial year January 1 – December 31, 2015.

The Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards as adopted by the EU, and the Parent Company Financial Statements have been prepared in accordance with the Danish Financial Statements Act. Moreover, the Consolidated Financial Statements and the Parent Company Financial Statements have been prepared in accordance with additional Danish disclosure requirements for listed companies. Management’s Review has also been prepared in accordance with Danish disclosure requirements for listed companies.

In our opinion, the accounting policies used are appropriate, and the Group’s internal controls relevant to preparation and presentation of the Annual Report are adequate. The Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the financial position of the Group and the Parent Company at December 31, 2015, and of the results of the Group and the Parent Company operations, and of consolidated cash flows for the financial year 2015.

In our opinion, Management’s Review includes a true and fair account of the developments in the operations and financial circumstances of the Group and the Parent Company, of the result for the year, and of the financial position of the Group and the Parent Company as well as a description of the most significant risks and elements of uncertainty facing the Group and the Parent Company.

In our opinion, Novozymes A/S adheres to the AA1000 AccountAbility principles, and environmental and social data are stated in accordance with the accounting policies.

We recommend that the Annual Report be adopted by the Annual Shareholders’ Meeting.


Bagsvaerd, January 19, 2016

 
Executive Leadership Team

 
Peder Holk Nielsen
President & CEO
 
Per Falholt
 
Andrew Fordyce
 
Benny D. Loft
 
Thomas Nagy
 
Thomas Videbæk

 
 
Board of Directors

 
Henrik Gürtler
Chairman
 
Agnete Raaschou-Nielsen
Vice Chairman
 
Heinz-Jürgen Bertram
 
Lars Green
 
Lena Bech Holskov
 
Anders Hentze Knudsen
 
Lars Bo Køppler
 
Lena Olving
 
Jørgen Buhl Rasmussen
 
Mathias Uhlén
 

Independent Auditor's Report

To the Shareholders of Novozymes A/S

Report on Financial Statements and Environmental, Social and Governance Data

We have audited the Consolidated Financial Statements, the Parent Company Financial Statements and the Environmental, Social and Governance Data of Novozymes A/S for the financial year January 1 to December 31, 2015. The Consolidated Financial Statements and the Parent Company Financial Statements comprise income statement, balance sheet, statement of changes in equity and financial notes, including summary of significant accounting policies for both the Group and the Parent Company, as well as statement of cash flows and financial resources and statement of comprehensive income for the Group. The Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards as adopted by the EU, and the Parent Company Financial Statements are prepared under the Danish Financial Statements Act. Moreover, the Consolidated Financial Statements and the Parent Company Financial Statements are prepared in accordance with Danish disclosure requirements for listed companies. The Environmental, Social and Governance Data are prepared in accordance with the accounting policies stated in the accounting policies for the Environmental, Social and Governance Data.

Management’s Responsibility for Financial Statements and Environmental, Social and Governance Data

Management is responsible for the preparation of Consolidated Financial Statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the EU and Danish disclosure requirements for listed companies, and for preparing Parent Company Financial Statements that give a true and fair view in accordance with the Danish Financial Statements Act and Danish disclosure requirements for listed companies, and for such internal control as Management determines is necessary to enable the preparation of Consolidated Financial Statements and Parent Company Financial Statements that are free from material misstatement, whether due to fraud or error. Furthermore, Management is responsible for preparing Environmental, Social and Governance Data in accordance with the accounting policies stated in accounting policies for Environmental, Social and Governance Data.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Consolidated Financial Statements, the Parent Company Financial Statements and the Environmental, Social and Governance Data based on our audit. We conducted our audit in accordance with International Standards on Auditing and additional requirements under Danish audit regulations. This requires that we comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance whether the Consolidated Financial Statements, the Parent Company Financial Statements and the Environmental, Social and Governance Data are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts, data and disclosures in the Consolidated Financial Statements, the Parent Company Financial Statements and the Environmental, Social and Governance Data. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the Consolidated Financial Statements, the Parent Company Financial Statements and the Environmental, Social and Governance Data, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation of Consolidated Financial Statements and Parent Company Financial Statements that give a true and fair view, and considers internal control relevant to the Company’s preparation of Environmental, Social and Governance Data that are prepared in accordance with the accounting policies for Environmental, Social and Governance Data in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Management, as well as evaluating the overall presentation of the Consolidated Financial Statements, the Parent Company Financial Statements and the Environmental, Social and Governance Data.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

The audit has not resulted in any qualification.

Opinion

In our opinion, the Consolidated Financial Statements give a true and fair view of the Group’s financial position at December 31, 2015, and of the results of the Group’s operations and cash flows for the financial year January 1 to December 31, 2015, in accordance with International Financial Reporting Standards as adopted by the EU and Danish disclosure requirements for listed companies.

In our opinion, the Parent Company Financial Statements give a true and fair view of the Parent Company’s financial position at December 31, 2015, and of the results of the Parent Company’s operations for the financial year January 1 to December 31, 2015, in accordance with the Danish Financial Statements Act and Danish disclosure requirements for listed companies.

In our opinion, the Environmental, Social and Governance Data for the financial year January 1 to December 31, 2015, are prepared in accordance with the accounting policies stated in the accounting policies for the Environmental, Social and Governance Data.

Statement on Management’s Review

We have in accordance with the Danish Financial Statements Act read Management’s Review, which comprises the sections The big picture, Our business and Governance. We have not performed any procedures additional to the audit of the Consolidated Financial Statements, the Parent Company Financial Statements and the Environmental, Social and Governance Data. On this basis, in our opinion, the information provided in Management’s Review is consistent with the Consolidated Financial Statements, the Parent Company Financial Statements and the Environmental, Social and Governance Data.

Bagsvaerd, January 19, 2016
 
 
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR No.: 33771231
 
 
 
 
 
Mogens Nørgaard Mogensen
State Authorized Public Accountant
 
 
 
Rasmus Friis Jørgensen
State Authorized Public Accountant

Independent assurance statement on Novozymes’ 2015 sustainability reporting and adherence to the AA1000 accountability principles

TO THE STAKEHOLDERS OF NOVOZYMES
We have been engaged by Novozymes A/S’ Management to provide moderate assurance (review) as to whether Novozymes adheres to the AA1000 AccountAbility Principles. A multidisciplinary team including assurance practitioners and other experts conducted this engagement.

Regarding the audit of environmental, social and governance data, we refer to the Independent Auditor’s Report.

MANAGEMENT’S RESPONSIBILITY
Adherence to the AA1000 AccountAbility Principles of Inclusivity, Materiality and Responsiveness is the responsibility of Management.

OUR INDEPENDENCE AND QUALITY CONTROL

We have complied with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, which includes independence and other requirements founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior.

PwC applies International Standard on Quality Control 1, and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

OUR RESPONSIBILITY
As assurance provider, it is our responsibility, based on our work, to make observations and recommendations with respect to the nature and extent of Novozymes’ adherence to the AA1000 AccountAbility Principles. We have planned and performed our work based on AA1000AS, using the criteria in the standard to perform a Type 1 engagement. Furthermore, we conducted our assurance engagement in accordance with International Standard on Assurance Engagements 3000, “Assurance Engagements other than Audits or Reviews of Historical Financial Information” (limited assurance), issued by the International Auditing and Assurance Standards Board. The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had we performed a reasonable assurance engagement.

The procedures we performed were based on our professional judgment and included inquiries and interviews with the members of the Board of Directors, members of the Executive Leadership Team, and heads of regions, Corporate Development and Performance Management on Novozymes’ commitment and adherence to the AA1000 AccountAbility Principles, and the existence of systems and procedures to support adoption of the principles in the organisation.

In performing the procedures listed above we:

  • reviewed processes related to how Novozymes identify its stakeholders and engage them in relevant business decisions to develop and implement responses to sustainability;
  • reviewed the process that Novozymes used to identify and determine relevant and significant (material) issues to the organization and its stakeholders and whether these issues are included in the sustainability reporting; and
  • interviewed a selection of Novozymes executives and senior management who have operational responsibility for sustainability issues to understand the governance and performance management structures used for managing sustainability, engagement with stakeholders on sustainability issues, development of appropriate responses to material issues and communication with its stakeholders.


LIMITED ASSURANCE CONCLUSION

Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that indicates that Novozymes does not adhere to the AA1000 AccountAbility Principles.

OBSERVATIONS AND RECOMMENDATIONS

According to AA1000AS (2008), we are required to include observations and recommendations for improvements in relation to Novozymes’ adherence to the AA1000 AccountAbility Principles.

REGARDING INCLUSIVITY
Extensive work has been completed in 2015 to prepare and launch the new strategy and long-term targets, including sustainability related targets, and to embed these into the business. This has involved reviewing performance on sustainability reporting, stakeholder engagement and materiality assessment to promote a consistent approach to sustainability and support delivery of the new strategy and long-term targets. We have noted an ongoing work to embed the long-term targets and to achieve greater connection between sustainability related and other business targets. We also noted an ongoing focus to increase collaboration, both externally through strategic partnerships and internally with the positioning of sustainability in close proximity to Public Affairs and Corporate Portfolio Management.

As Novozymes anchors the long-term targets at each level of the Company, we recommend that Novozymes continues to develop governance and business processes to ensure a consistent approach to sustainability and support the realization of the new strategy and long-term targets. These efforts are to be supported by a strategic stakeholder engagement and communication plan to ensure regular communication on Novozymes’ progress in delivering its new strategy and long-term targets and increase stakeholder engagement and buy-in.

REGARDING MATERIALITY
Novozymes continues to discuss, evaluate and determine the materiality of sustainability issues on an ongoing basis through governance processes involving Senior Management across the organisation. Work is also ongoing to assess the relevance and contribution of Novozymes’ activities to delivery of the UN Sustainable Development Goals.

We have no significant recommendations regarding materiality.

REGARDING RESPONSIVENESS
Novozymes is increasingly placing emphasis on realising regional market opportunities to facilitate growth. This has enhanced responsiveness to stakeholders’ needs and concerns. One example is the long-term target ‘Educate’, which provides the opportunity to engage and enable regional (future) customers and employees in active discussions on sustainability practices and innovation.

While Novozymes has taken significant steps in 2015 to further embed sustainability into the business activities at all levels, we have recommended that Novozymes continues to work on developing decision-making tools that include sustainability considerations in all key business decision-making processes both centrally and in the regions. Furthermore, we recommend that Novozymes develops a framework for measuring and valuing sustainability impacts associated with its business activities that will support reporting to key stakeholder groups.

Bagsvaerd, January 19, 2016


PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR No.: 33771231

 
 
 
 
 
Mogens Nørgaard Mogensen
State Authorized Public Accountant
 
 
 
Rasmus Friis Jørgensen
State Authorized Public Accountant