MENU

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

  •  The big picture
  •  Our business
  •  Governance
  •  Accounts and performance
  •  Supplementary
###FACTBOX:TARGETS###

Our long-term targets have been set to measure whether we are moving in the right direction. The targets are guided by the UN Sustainable Development Goals, which were adopted by more than 190 UN member states in September 2015. The targets will tell us if we are succeeding in helping the world become more sustainable, while ensuring Novozymes’ continued growth.

Financial targets
Novozymes’ long-term financial targets reflect an ambition to deliver economic value through high organic sales growth at an attractive earnings level, while investing prudently to drive long-term profitable sales growth.

From a financial perspective, the results for 2015 were good, but from a sales growth perspective, 2015 was challenging with 4% organic sales growth for the year. Given the outlook for 2016 and the uncertainty beyond 2016 related to depressed commodity prices and the potential impact of these – particularly on Bioenergy and growth in emerging markets – Novozymes no longer expects to reach its organic sales growth target of 8-10% on average in the six-year period from 2015 through 2020.

Organic sales growth remains the top priority for Novozymes, and the company maintains its ambition to accelerate organic sales growth to a level of 8-10%. However, with the current visibility, annual organic sales growth from 2017 and through to the end of this decade is expected to be in line with the historical performance of 6-7%.

From the perspective of profitability and return on capital, Novozymes maintains its long-term targets of an EBIT margin of 26% or above and ROIC including goodwill of 25% or above. If investment opportunities are identified to strengthen the company’s sales growth outlook further, management will retain the option to make such investments, provided the EBIT margin remains at 26% or above and ROIC including goodwill at 25% or above.

Long-term sustainability targets

All our long-term sustainability targets remain intact. Across markets, Novozymes’ solutions help make industrial processes and the production of a variety of consumer goods and agricultural products more efficient. Other things being equal, the higher the cost of raw materials,waste and energy, or the more our innovations can contribute to the marketing of the end product, ###FACT:FOCUS###the greater the value for our customers and Novozymes.

Novozymes is experiencing growing interest from customers in being more efficient and using biotechnology to create competitive advantages. Innovation and cost/performance lie at the heart of why customers choose Novozymes. However, sustainability is increasingly a competitive parameter for Novozymes and on the minds of our customers as they build brands and competitive advantages.

Below, we elaborate on our long-term sustainability targets after their first year in place.

 

REACH 6 billion people with our biological solutions


The challenge

Achievements in 2015

What is next?

Case


 

Every time a consumer uses a product that has been made or treated with Novozymes’ technology, or contains one or more products made by Novozymes, the world becomes a little more sustainable. By 2020, we want 6 billion people worldwide to use products made with our solutions at least once a week.

This target is closely connected to our sales performance. Increasing our reach therefore depends on successful execution of our strategy within each of our industries, and on expanding our sales in emerging and developing markets, which have the greatest untapped potential.

We estimate that our solutions reached approximately 4.9 billion people in 2015.

Planned and ongoing projects to help us reach this target include:

  • Launch of enzyme technology to increase sustainability and efficiency in palm oil production
  • Developing Household Care products for broader emerging marketspenetration

 

Billions of people use Novozymes’ detergent enzymes
Novozymes’ enzymes boost the performance of laundry detergents by improving stain removal, garment care and wash performance, and replace ingredients such as surfactants and builders for a more environmentally friendly product.

In 2015, we estimate that 2.9 billion people’s clothes were washed with a detergent containing our enzymes more than once a week. With the total global population now close to 7.4 billion, this means that our reach within laundry detergents is around 40%. Hence there is scope for an even greater reach in this category. This growth is expected to come mainly from emerging and developing markets, where the baseline is lower than in developed markets.

         

EDUCATE 1 million people about the potential of biology


The challenge

Achievements in 2015

What is next?

Case


 

Education is crucial for global sustainable development. Novozymes’ employees have a wealth of knowledge about science and sustainability to share, and regularly engage with schools, universities and communities through various outreach programs.

The more people we educate about biotechnology, the more will get involved in creating sustainable biological solutions in the future.

Note that the educational activities included under this target exclude those related directly to sales and marketing of our technologies.

The EDUCATE target builds on our experiences with our corporate citizenship program Citizymes. 2015 was the first year of transitioning from Citizymes to the new EDUCATE program.

The Citizymes program reached 87,000 people in 2015, up from 51,000 in 2014 Regional flagship activities such as Voice for Biotechnology, a public speaking contest in India, and Biotech for Sustainability, an innovation competition in China, were expanded further.

Building on existing activities such as Citizymes, we aim to:

  • Step up our programs for primary and high schools
  • Refine our approach to engage in dialogue with new target groups
  • Find relevant and reputable partners to increase scale and impact both locally and globally

Inspiring the next generation of scientists
The “Biotechnology for Sustainability Goes to School” project aims to integrate the teaching of biotechnology and sustainability into normal class work in both the sciences and the humanities. The external partner for the project is SESI, a chain of private high schools in Brazil.

Novozymes is involved in developing content for “teaching the teacher,” organizing science fairs and inviting students to visit Novozymes’ R&D laboratories. The project was piloted at one school in 2015 and is expected to be rolled out across the remaining 52 SESI schools in 2016, potentially followed by more schools in subsequent years.

         

CATALYZE 5 global partnerships for change


The challenge

Achievements in 2015

What is next?


 

To make the necessary impact on the world, we need strong partners dedicated to solving its key issues together with us. By 2020, we aim to form five high-impact partnerships with public and private organizations that share our agenda and can support Novozymes’ commercial activities.

 

2015 did not bring any major new global partnerships, but we continued to strengthen and
prioritize our current commercial and noncommercial partnerships.

We aim to make an impact through partnerships in several different ways. We will explore
opportunities for both commercial and noncommercial partnerships, including new types of
partnerships that we have not yet engaged in.

We will also look for more input from external stakeholders to help change our mindset around how we act in the competitive environment, so that we think of ourselves not only as a supplier to our customers, but as a company that can have impact across the value chain.

         

DELIVER 10 transformative innovations


The challenge

Achievements in 2015

What is next?


 

Every piece of innovation Novozymes delivers has an impact. Some of our innovations transform markets and ultimately impact people’s lives. By 2020, we aim to deliver 10 such transformative innovations, creating significant impact for our customers and making the world more sustainable.

Novozymes has identified “natural growth promoters for animal farming” as the first “transformative innovation.” Natural growth promoters (e.g. probiotics) are feed additives that promote growth and health of poultry and other production animals. They can be used as tools to reduce the use of antibiotic growth promoters in animal farming, which is considered a risk factor for the development of resistance to antibiotics used in human medicine. In May, we announced a partnership with Adisseo to develop a specific probiotic product for poultry within this category.

The probiotic product is on track to be launched before May 2016. In addition, we have a number of other promising transformational innovations in our pipeline that are expected to launch within the timeframe of this target. We will also explore new concepts and services.

When evaluating our innovation efforts and pipeline, we will consider both financial and transformative potential, and measure their impact against the UN Sustainable Development Goals.

         

SAVE 100 million tons of CO2


The challenge

Achievements in 2015

What is next?

Case


 

Our products help customers improve their environmental performance by reducing their consumption of energy, raw materials and chemicals, and lowering their emissions of CO2. To help address climate change, we have set a target of saving 100 million tons of CO2 a year through the application of our solutions*.

  • Based on life cycle assessments – from raw material extraction, through production and use, to final disposal – we estimate that our solutions saved customers a total of 60 million tons of CO2 in 2015
  • We have also kept our operational carbon footprint at a steady level since 2007 despite significant growth in our business over the years, through production strain optimization, renewable energy sourcing, operational eco-efficiency and product optimization

 

* The target is based on an updated methodology with 2014 as the baseline.

Reaching this target is closely connected to growing sales of our current portfolio of solutions, but we also need to explore new activities to increase CO2 savings toward 2020.



More sustainable cotton production
The production of cotton fabrics involves numerous different treatments, such as scouring, bleaching, polishing and dyeing. These processes consume large amounts of energy, water and chemicals, making the textile industry a major source of pollution and CO2 emissions.

Novozymes offers a wide range of solutions to make cotton processing cleaner and more efficient. For example, using our enzymes to remove hydrogen peroxide residues from the fabric after the bleaching process saves large amounts of energy, water and, in some cases, chemicals. The biological bleach clean-up process can also be combined with biopolishing and dyeing processes to save even more water and energy.

         

ENABLE Novozymes’ employees to develop


The challenge

Achievements in 2015

What is next?

Case


 

Great employees make a great Novozymes. Our ability to grow and contribute to a better world is dependent on our ability to enable our employees to develop both personally and professionally.

This target will ensure that Novozymes builds the skills needed to deliver on its strategy and ensure that all employees worldwide realize their full potential.

 

  • We scored 80 for personal and professional development in our employee survey, exceeding our target of 75
  • The People Development Powerhouse program to strengthen people development capabilities was rolled out across more of the organization
  • Regional and senior leadership pipelines were strengthened through targeted talent development initiatives
  • 41% of employees promoted in 2015 were female, surpassing our target of 35%
  • In October 2015, the international journal Science ranked Novozymes the best science employer in the world

Upcoming activities include an annual development week, which aims to strengthen all employees’ ability to proactively set the direction for their own development. In addition, competencies will be mapped to improve dialogue on performance expectations and development needs.

Global program to develop employees
Novozymes extended its People Development Powerhouse program in 2015 to cover most of the organization. The purpose is to strengthen leaders’ ability to develop their people on a daily basis, and employees’ ability to proactively drive their own development.

Besides enhancing leaders’ feedback and coaching capabilities, the program aims to promote a learning culture and strengthen use of Novozymes’ performance management system and individual development plans for employees. By enhancing both competencies and well-being, the program has an important role to play in helping Novozymes grow and achieve its other long-term targets.