Environmental data

Climate change is material to Novozymes. Increasing demand for low-carbon products and solutions offers many opportunities for Novozymes to grow its business. On the other hand, impacts associated with climate change also pose multiple risks to Novozymes’ supply chain and operations, such as regulatory action and physical or reputational damage. Our approach to climate change management is part of our strategy, and outlined in our Sustainability Policy and position paper on climate change. Several departments work closely to drive the climate change agenda, both inside and outside the organization.

We believe that a transition toward a biobased economy that relies on renewable biological resources can assist the planet in becoming more resource efficient and tackling climate change. Our biosolutions in industries such as bioenergyComes in the form of liquid fuels, electricity, heat and steam, and is produced from primary crops or biomass such as sugarcane, grains, agricultural residues, algae and household waste. In liquid form, it is typically used to replace gasoline and diesel in transportation. and agriculture typically offer customers and end users reduced greenhouse gas (GHG) emissions due to lower energy, water, raw material and chemical consumption compared with conventional technologies.

Novozymes has a long-term target that measures the net relative CO₂ impact that our products have on society compared with conventional technologies. This target is expressed as CO₂ emissions avoided over the life cycle of our products and also includes the CO₂ emissions generated across our supply chain and in our production. In 2017, we met the target for the year by helping customers save an estimated 76 million tons of CO₂ emissions through the application of our products. This is equivalent to taking approximately 32 million cars off the road.

Since 2004, Novozymes has documented the cradle-to-grave environmental impact of its biosolutions by conducting ISO14040-reviewed life cycle assessment (LCA)An environmental assessment tool that addresses environmental impacts from all processes in the production of products, from raw material extraction through production and product use to final disposal. studies. Read more about our approach to LCA on Novozymes.com.

In 2017, we focused our efforts on supporting commercial stakeholders in their efforts to reduce GHG emissions by engaging directly with customers and trade publications. For instance, we developed and deployed a sustainability calculator for our feed enzyme customers in Latin America together with DSM. To engage a wider audience, we also published an article targeting global poultry and feed professionals, which demonstrated how feed enzyme solutions contribute to the UN Sustainable Development GoalsThe UN Sustainable Development Goals (SDGs) are an intergovernmental set of 17 aspirational goals with 169 targets. The goals were officially implemented on September 25, 2015, at the United Nations Headquarters in New York, US.. We also regularly engage with our customers in training sessions on how optimal animal nutrition can mitigate climate change impact and support sustainable development.

Novozymes also supports global climate action through transparent climate disclosure, responsible public advocacy and partnerships. To learn more, see Advocacy and policy engagement in the Sustainability section.

Novozymes' efforts to reduce greenhouse gas (GHG) emissions in its operations are driven by its target to reduce CO₂ intensity. This target is closely linked to the targets to improve energy efficiency and increase the share of energy sourced from renewable sources in our operations. In 2017, our CO₂ intensity reduction stood at 11%, meeting the target of 9%. We report our performance on the energy targets in Note 7.2 Energy.

Novozymes strives to make its operations less carbon intensive by implementing various energy efficiency projects. In 2017, we executed a portfolio of projects with focus on regions with high carbon footprint, to maximize CO₂ savings. More than half of the energy savings realized in 2017 came from projects undertaken at sites located in regions with a high carbon footprint, such as the US and China. We will share and implement best practices learnt from these projects across all our production sites.

Going forward, Novozymes will continue to focus on reducing its CO₂ intensity by purchasing more energy from renewable sources and reducing consumption of fossil-based energy through efficiency projects.

According to the Scope 2 Guidance in the GHG Protocol, scope 2 CO₂ emissions must be calculated using both the location-based and market-based methods. For Novozymes, the difference between market-based and location-based CO₂ emissions is most significant in Denmark, where we purchase 100% renewable electricity.

Energy is material to Novozymes’ operations, as our production processes are dependent largely on electricity and steam. Across the value chain, our biosolutions enable customers and end users to save energy in certain applications compared with conventional methods.

Novozymes' approach to managing energy in its own operations focuses on improving energy efficiency at its production sites and increasing the share of renewables in its energy mix. Our performance in these two areas is driven by targets. For more information, see Outlook 2018. Novozymes’ Supply Operations and Sourcing departments are responsible for managing all energy efficiency and renewable energyThe proportion of the energy used at Novozymes’ sites that consists of continuously replenished energy generated from natural processes. Sources include solar, wind and hydro power-based electricity and energy from biogas.-sourcing efforts.

In 2017, Novozymes’ energy efficiency improved by 4% compared with the 2014 baseline, falling short of the target of 7%. This was because absolute energy consumption increased at a higher rate than gross profitA company’s total revenue (equivalent to total sales) minus the cost of goods sold., resulting in reduced performance compared with 2016. The increase in consumption was due to significantly higher capacity utilization at Novozymes’ production sites. Throughout the year, several energy efficiency projects were undertaken globally with increased focus at sites with a higher carbon footprint (e.g. in the US and China). We estimate that these projects resulted in energy savings of around 25,000 GJ.

Energy from renewable sources accounted for 24% of the total energy consumed in 2017. In Denmark, we purchase all our electricity from renewable sources, specifically from the Horns Rev II wind farm. In March 2017, we also began purchasing all our electricity in Brazil from renewable sources.

In 2017, Novozymes signed a new 20-year agreement to transition its supply of steam to renewable sources for its largest production site in Kalundborg, Denmark. In collaboration with Novo Nordisk and the utility companies Kalundborg Forsyning and ØrstedDong Energy changed its name to Ørsted as of November 6, 2016, after the Danish scientist H.C. Ørsted., this agreement will enable Denmark's largest coal-fired power station unit, the Asnæs Power Station, to phase out coal and replace it with wood chips by the end of 2019.

Going forward, Novozymes will continue to focus on finding opportunities to procure renewable energy in each of its operating regions. Furthermore, we will prioritize investment in energy efficiency in geographies where there are limited options to procure renewable energy.

Water is material to Novozymes within its operations, as well as across the value chain, as enzyme production is water intensive and generates substantial amounts of wastewater.  Water is also crucial in the production of the agriculture-based raw materials required for enzyme manufacturing.

Novozymes’ solutions can help customers and consumers reduce water consumption compared with conventional methods in certain applications (e.g. textile processing), while the wastewater treatment solutions can improve treatment processes and the quality of treated water.

We strive to mitigate the risks associated with water usage and wastewater disposal by managing water within our operations. We are committed to improving our water efficiency and ensuring compliance with wastewater discharge regulations at all our significant sites. This approach to water management is anchored in our Sustainability Policy, and is reinforced by our target to improve water efficiency in operations. For more information, please refer to Outlook 2018.

Novozymes’ Supply Operations and Quality, Environment & Safety departments manage and monitor all water efficiency and wastewater management efforts.

Novozymes continued to emphasize water savings at its various sites in 2017. For example, at our production site in Kalundborg, Denmark, we estimate that we saved around 73,000 m³ of water through various projects and process optimization. However, despite these efforts, Novozymes’ water efficiency in 2017 declined by 2%, compared with the 2014 baseline, falling short of the target of a 4% improvement. This was because absolute water consumption increased at a higher rate than gross profitA company’s total revenue (equivalent to total sales) minus the cost of goods sold., resulting in reduced performance compared with 2016. This increase in consumption was due to significantly higher capacity utilization at Novozymes’ production sites.

Wastewater treatment is high on the agenda at our production sites. Currently, most of our wastewater is treated in biological wastewater treatment systems and then discharged either to further municipal treatment facilities or other recipients, or used for irrigation in agriculture.

In 2017, Novozymes invested around DKK 75 million to increase the capacity of the wastewater treatment plant at the Kalundborg site in Denmark. This expansion will also result in an increase in on-site renewable energyThe proportion of the energy used at Novozymes’ sites that consists of continuously replenished energy generated from natural processes. Sources include solar, wind and hydro power-based electricity and energy from biogas. production through the generation of biogas.

Looking ahead, we will improve our understanding of site-specific water-related risks. We also aim to identify new opportunities for water savings and wastewater capture and reuse, and share best practices across sites.

Novozymes is committed to supporting the transition to a circular economy through sustainable consumption and production practices. That is why the responsible management and disposal of waste and by-products is included in the median category in Novozymes’ materialityThe materiality assessment process identifies key topics that pose both risks and opportunities for Novozymes’ business strategy. It is based on a systematic analysis of internal and external stakeholder perspectives. Material topics merit inclusion in our report, as they reflect our economic, environmental and social impacts or because they might influence stakeholder decisions. matrix. 

Novozymes’ waste and by-products consist of three broad categories: biomassOrganic material, predominantly plants or plant residues., nonhazardous solid waste and hazardous waste. Each production site regularly reports waste and by-products generated in terms of category and disposal method. We have adopted a site-specific management approach, because waste handling is a complex issue that is regulated locally and involves many external service providers. 

Biomass, which accounts for the majority of total waste and by-products generated by Novozymes’ production sites, is a by-product rich in nitrogen and phosphorus. 98% of total biomass generated in 2017 was recovered and sold to local farmers as NovoGro^®, an organic agricultural fertilizer, or composted.

In 2017, Novozymes signed an agreement with two Danish energy companies, Ørsted Dong Energy changed its name to Ørsted as of November 6, 2016, after the Danish scientist H.C. Ørsted. and Bigadan, to further utilize the biomass generated at its production site in Kalundborg to produce biogas. Ørsted and Bigadan will construct a new biogas plant, which is expected to be operational in 2018. After being processed at the biogas plant, the biomass will continue to be used as fertilizer on fields. This agreement exemplifies Novozymes' commitment to the circular economy. The plant is expected to process approximately 300,000 tons of biomass to generate 8 million m³ of biogas annually. The inclusion of biogas in the local natural gas network is expected to result in annual CO₂ savings of around 17,000 tons.

Nonhazardous solid waste and hazardous waste account for 2% of the total waste and by-products generated and include materials such as paper, food waste, laboratory waste and chemicals. In 2017, the total solid waste sent for landfill or for incineration without energy recovery was 8,199 tons. The rate of recycling of solid waste was 43% in 2017, compared with 44% in 2016. 

Novozymes strives to increase the amount of solid waste diverted from landfill. In 2017, we initiated a pilot project to identify opportunities to increase waste diversion across three of our largest production sites, in Denmark, the US and China. Going forward, we will use the learnings from this pilot to improve waste management practices globally.

Novozymes aims to comply with all environmental regulations and strives to minimize the number of complaints from its neighbors.

In 2017, 24 breaches of regulatory limits were registered worldwide, compared with 37 in 2016. The majority of these relate to wastewater treatment and effluent discharge limits. Action plans have been agreed on with the relevant environmental authorities to address all pending issues.

We received 12 complaints from neighbors, up from nine complaints in 2016. These were related to air pollution and waste management.

Our business is based on bioinnovation. This includes the process of taking samples of fungi, bacteria and enzymesProteins that act as catalysts, helping to convert one substance into another. among the available biodiversityThe variety of all living things: the different plants, animals and microorganisms, the genetic information they contain, and the ecosystems they form. in nature for biotechnological research to develop specific applications for our customers. That is why “bioethics & biodiversity” is a material issue for Novozymes’ operations and its relationships with external stakeholders.

Novozymes’ position paper on industrial biotechnology articulates its management approach to supporting safe and sustainable use, and the adoption of robust, science-based regulations for processes and products involving gene technology. We acknowledge the need for engaging with stakeholders to improve the general level of knowledge about the opportunities presented by biology, industrial biotechnology and gene technology, and their role in society.

The position paper on biodiversity articulates how Novozymes endorses, acknowledges and respects the globally recognized principles on the utilization of genetic resources according to the United Nations Convention on Biological Diversity (CBD) and the complementary Nagoya Protocol on Access and Benefits Sharing (ABS). Novozymes has internal procedures to ensure that the company lives up to its commitments.

We acknowledge the importance of biodiversity and healthy ecosystems in ensuring sustainable development and achievement of the UN Sustainable Development GoalsThe UN Sustainable Development Goals (SDGs) are an intergovernmental set of 17 aspirational goals with 169 targets. The goals were officially implemented on September 25, 2015, at the United Nations Headquarters in New York, US. (SDGs). Business & Biodiversity is a new focus area that emphasizes private sector engagement and responsibility toward biodiversity-related issues. Going forward, Novozymes will assess and monitor outcomes in this new area and undertake a broader strategic discussion regarding its management and reporting of biodiversity issues.

Product stewardshipThe practice of designing and managing products to minimize adverse environmental, health and safety impacts across the product life cycle. is material to Novozymes, as our biological solutions are used as industrial processing aids or ingredients in consumer goods. Our enzymeProteins that act as catalysts, helping to convert one substance into another. products and microorganisms are formulated with other ingredients (e.g. as encapsulated granulates) so that they are safe when used and are stable in terms of shelf life.

Novozymes’ approach to product stewardship is to mitigate the risk of potential harm to both human health and the environment during the manufacture, handling and use of its products. Novozymes ensures this by the implementation of its Quality and Product Safety Policy, which is an essential component of Novozymes’ Quality Management System. This is supplemented by our approach to and position on related topics such as REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals), product information and labelling, traceability and animal testing.

Documented processes for product stewardship are enforced globally and externally audited by Bureau Veritas. Many cross-functional teams contribute to the implementation of this approach, but the primary responsibility rests with the Vice President for Intellectual Property, Regulatory and Product Safety.

In 2017, Novozymes continued its preparations and is on track to meet the 2018 registration deadline to ensure that technical enzymes sold in lower volumes are in compliance with REACH. Novozymes also continued to promote adherence to enzyme safety standards throughout the industry value chains, to reduce the risk of enzyme allergies among employees and downstream users. Novozymes chairs the Enzyme Safety Working Group, which has a coordinating role within the Association of Manufacturers and Formulators of Enzyme Products (AMFEP) to promote advanced safety procedures related to the use of enzyme products through trade associations.