Engagement

As a leading bioinnovator, Novozymes seeks to engage in dialogue with the wider stakeholder landscape about the role of biology and biotechnology in addressing key global challenges. Our stakeholders include peers, industry partners, academia, civil society, influencers and policymakers. Novozymes is dedicated to ensuring transparency in its outreach. We engage in the areas of sustainability, bioinnovation, biotechnology, 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., agriculture, science education and bioeconomy.

Novozymes presents information and its positions to policymakers and other interested parties in accordance with national and international laws and codes of conduct established by industry associations and other institutions. We have a public affairs presence in Copenhagen, Brussels, Washington D.C., New Delhi and Beijing.

Our employees are registered in dedicated lobbyist registers, as legally required in the US, and in the Transparency Register in Brussels. No registers exist in the other locations.

Novozymes is committed to communicating in a respectful way. We publish a comprehensive list of our global memberships on Novozymes.com.

Spend on advocacy and policy influence

In 2017, Novozymes was a member of several global and local industry associations and other stakeholder organizations. We also engaged with the media, governments, NGOs and international organizations. The total amount spent on these activities was approximately DKK 10.8 million. This figure excludes employee costs, travel, rental, media-monitoring expenses and other related expenditure. Novozymes does not make direct contributions to political parties.

Engaging with policymakers

Our advocacy supports our business interests, the UN Sustainable Development Goals (SDGs)The 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. and the Paris Climate Change Agreement (Paris Agreement). In 2017, we connected with influencers and policymakers through a range of global engagements.

Supporting a low-carbon economic growth agenda through the G20

Novozymes is a member of International Chamber of Commerce (ICC), the G20 CEO Advisory Group and the Business 20 (B20). During the German 2017 chairmanship, Novozymes’ President and CEO, Peder Holk Nielsen, was cochairman of the taskforce on energy, climate and resource efficiency. The taskforce produced a policy paper giving recommendations to the G20 about how to decouple economic growth from climate change impact. The policy paper was handed to German chancellor Angela Merkel ahead of the G20 meeting in Hamburg.

Preparing for the EU Renewable Energy Directive post-2020

In preparation for the EU Renewable Energy Directive post-2020, Novozymes is advocating for the use of sustainable, low-carbon fuels in the transportation sector in Europe. We are partnering with ePURE – the European Renewable Ethanol Association – to ensure that sustainable conventional ethanol plays a role in the EU energy mix post-2020. We also support the progressive deployment of advanced biofuelsLiquid fuels produced from primary crops or biomass such as sugarcane, grains, agricultural residues, algae and household waste. They are typically used to replace gasoline and diesel in transportation. One of the advantages of biofuels is that they are the only existing liquid alternative to fossil fuels. by gradually ramping up blending obligations.

Together with Scania and Shell, Novozymes set up the Biofuels for Europe website, which translates the latest academic research on key issues related to biofuels into an easy-to-understand and science-based source of information to help EU policymakers make informed decisions.

Promoting advanced biofuels through the BioRefining Alliance

Novozymes is a founding member of the Danish BioRefining Alliance. The alliance works to promote the use of advanced biofuels as a sustainable part of Denmark's future energy mix. Its objective is to foster political support to make Denmark a leader in tomorrow’s bioeconomy. The alliance is also active in the EU Renewable Directive process, supporting 2G biorefining.

In 2017, the primary focus areas were to secure continued political support for establishing a 2G production plant in Denmark and consult with relevant political authorities on the bioeconomy.

Working strategically with the Danish government globally

As Denmark strives for sustainability leadership, the Danish government is an important partner for Novozymes in encouraging other governments and the global community to move toward policies that enable a market for green technologies.

Novozymes works with the Danish Trade Council, a governmental export and investment promotion organization under the auspices of the Danish Ministry of Foreign Affairs, to develop opportunities in key markets. Furthermore, we also work with the Danish Ministry of Foreign Affairs on international export programs in markets relevant for our business. As a result, in 2017, Novozymes took part in trade delegations to India, Japan and Indonesia.

Protecting the biofuel sector through Fuels America

In the US, a key focus area for our advocacy is to promote the domestic biofuel sector. Novozymes is a founding member of Fuels America, a coalition of organizations committed to protecting the US Renewable Fuel Standard (RFS).

In 2017, Fuels America sought to defend existing blending limits for conventional biofuels through targeted outreach to policymakers and the White House, following a proposal to revamp the RFS extensively from the US Environmental Protection Agency. Fuels America also launched an extensive public media campaign to highlight how the country’s domestic biofuel production is good for the economy, energy security and the environment.

Securing RenovaBio in Brazil

Novozymes is a founding member of the Brazilian Association of Industrial Biotechnology (ABBI). It seeks to promote innovation and the sustainable development of the industrial biotechnology sector in the country. Through our engagement with ABBI, we worked in the development of new biotech public polices as well as sustainability programs that promote biotechnology in the country.

In 2017, Emerson George De Vasconcelos, Regional President of Novozymes Latin America, was elected as the president of the board of directors of ABBI. We also contributed, through ABBI, to the preparation of the bill to set up RenovaBio, a policy that will support the Brazilian government in cutting carbon emissions. This policy is one step toward achieving the country’s commitment to the Paris Agreement and promoting biofuels production and usage in the country. This bill was approved by both legislative houses and signed into law in December 2017.

Novozymes works closely with various stakeholders from the private sector, governments, civil society and academia to support the global sustainable development agenda. Here are the highlights from 2017: 

HelloScience

In 2017, Novozymes launched the new online open innovation platform HelloScience. With an open and collaborative approach, the objective is to foster and deliver innovative solutions to some of the world’s greatest challenges related to the UN Sustainable Development Goals (SDGs)The 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.. HelloScience invites researchers, start-ups, NGOs, associations and companies to contribute knowledge, expertise, impactful solutions or just great ideas. The first theme for the platform is water scarcity, and includes a call from UNICEF about detecting contamination in drinking water.

A range of contributors have shown great interest in this open platform and, toward the end of 2017, the global leader in advanced pump technologies, Grundfos, offered its expertise and joined HelloScience. Novozymes and Grundfos will combine biology and pump technology, and kick off an open innovation collaboration for clean water.

Biobased Industries Joint Undertaking (BBI JU)

Novozymes is a founding member of BBI JU, a public–private partnership that was set up by the European Union and the Biobased Industries Consortium (BIC). Its aim is to develop a sustainable bioeconomy in Europe. BBI JU wants to break Europe’s dependence on fossil fuels by converting biomassOrganic material, predominantly plants or plant residues. and waste into greener everyday products, and by creating new markets for biobased products such as food, feed, chemicals, materials and fuels.

Since 2014, Novozymes has benefited from its BBI JU membership by expanding its research and innovation competencies, reinforcing existing partnerships and connecting with new actors. So far, Novozymes has taken part in four projects. One example is the URBIOFIN project, which was launched in Spain in 2017. This demo project, led by Imecal, aims to create economic, environmental and technical value by converting the organic fraction of municipal solid waste into by-products such as bioethanol, biochemicals, bioplastics and additives.

International Chamber of Commerce (ICC)

ICC is the world’s leading business organization, and is the only one with official UN Observer Status at the United Nations in New York. We are involved in a number of its global commissions, such as environment and energy and its national committees.

In 2017, Novozymes worked with ICC on the UN SDGs and the Global Business Alliance for the 2030 Agenda. Through our engagement with ICC, we were able to participate in a number of UN events, such as the UN Forum on Science, Technology and Innovation and the High-Level Political Forum on Sustainable Development. In addition, Novozymes was involved in ICC’s activities relating to the UN General Assembly in September, including the Private Sector Forum, cohosted by the UN Global CompactAn international UN initiative with the intention of bringing companies together with UN agencies, labor and civil society to support ten principles in the areas of human rights, labor standards, the environment and anticorruption. See www.unglobalcompact.org..

United States Council for International Business (USCIB)

In 2017, Novozymes also continued its collaboration with ICC’s US affiliate, the United States Council for International Business (USCIB). Novozymes’ President and CEO, Peder Holk Nielsen, is on the Board of Trustees, where he serves as a sustainability champion. He was heavily involved in USCIB’s program of activities for the UN General Assembly in September. The focus was on the theme “Business Makes It Happen” in terms of helping to ensure successful implementation of the UN SDGs. We also supported USCIB’s outreach relating to public–private partnerships during Global Partnerships Week in Washington D.C. in spring 2017 and at the UN General Assembly in September 2017.

World Business Council for Sustainable Development (WBCSD)

WBCSD is a global organization comprising more than 200 leading businesses working together to drive transition and acceleration of sustainable development. In 2017, Novozymes continued its engagement and involvement with various WBCSD workstreams, most notably below50 and Sustainable Lifestyles.

below50

Novozymes is a founding member of below50, a global campaign to reduce emissions in the transportation sector by increasing the demand for sustainable fuels. In 2017, below50 established three regional hubs in Australia, Brazil and the US, in collaboration with key stakeholders in each region to facilitate targeted market implementation. below50 also continued to raise awareness of the benefits of low-carbon fuels globally, and hosted technology roadshows and investment dialogues in Australia, Brazil, China and India in 2017. At COP23 in Bonn, Germany, representatives from Novozymes spoke about the importance of global campaigns such as below50.

See our interview with Gerard Ostheimer, Cofounder and Senior Advisor of below50, to know more about how this global campaign fuels a sustainable transportation future.

Novozymes promotes key issue-based and sectoral initiatives affiliated with several UN agencies. Here are the highlights of our engagement in 2017:

UN Global Compact Action Platforms

The UN Global CompactAn international UN initiative with the intention of bringing companies together with UN agencies, labor and civil society to support ten principles in the areas of human rights, labor standards, the environment and anticorruption. See www.unglobalcompact.org. has developed a new portfolio of action platforms to support and align businesses to achieve the UN Sustainable Development Goals (SDGs)The 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.. As a leading member of the UN Global Compact, Novozymes engages in several of these action platforms.

Blueprint for the SDG Leadership Action Platform

This action platform provides guidance for SDG leadership, given that the successful achievement of the SDGs requires action and engagement from all businesses, regardless of size or location.

Throughout 2017, Novozymes was active within the platform as part of its ongoing commitment to the UN Global Compact. Novozymes’ employees contributed to a series of working meetings and calls as well as physical discussions held on the margins of the UN General Assembly. The objective was to help outline a value- and principle- based approach to encourage the uptake of the SDGs by all types of businesses.

Reporting on the SDG Action Platform

The action platform aims to collect and establish best practices on SDG reporting from various businesses. Novozymes has been a frontrunner in using the SDGs strategically in setting its long-term vision and purpose. In 2017, Novozymes participated in the platform with a series of meetings to share its experiences and provide insights into and guidance on the fast-evolving landscape of sustainability reporting.

Caring for Climate

Novozymes supports the Paris Agreement and has publicly articulated its position on climate change on Novozymes.com. We also endorse the three UN Global Compact Business Leadership Criteria for Carbon Pricing:

1. Set an internal price for carbon high enough to materially affect investment decisions to drive down greenhouse gas emissions.
2. Publicly advocate the importance of carbon pricing through policy mechanisms that take into account country-specific economies and policy contexts.
3. Communicate on progress over time on the above two criteria in public corporate reports.

Novozymes has adopted an internal carbon pricing model whereby a shadow price is applied to its direct and indirect carbon emissions when assessing its global portfolio of operational eco-efficiency projects. This tool helps us quantify the climate benefits of one efficiency project over another and prioritize investments in regions where our operational carbon footprint is greater (i.e. Asia PacificAustralia, Bangladesh, Cambodia, Hong Kong, India, Indonesia, Iran, Japan, Kazakhstan, Kyrgyzstan, Laos, Malaysia, Myanmar, Nepal, New Zealand, P.R. China, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Turkmenistan, Uzbekistan, Vietnam. and the Americas).

We also continue to publicly advocate for carbon pricing and other low-carbon development mechanisms globally. In terms of disclosure, Novozymes is committed to reporting its progress through various channels, including its integrated annual report and CDP disclosure. In 2017, we achieved leadership level A minus (A-) in the CDP Climate Change Program for our climate change mitigation efforts.

SE4All (Sustainable Energy For All)

The UN Sustainable Energy for All (SE4All) initiative aims to double the share of 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. in the global energy mix by 2030, in support of the UN SDGs. In 2017, Novozymes sponsored the secretariat of the SE4All High Impact Opportunity on 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. .

Back in 2015, SE4All launched the Sustainable Bioenergy Accelerator, which is a partnership between the UN Food and Agriculture Organization (FAO), the Roundtable on Sustainable Biomaterials (RSB) and other international organizations working to accelerate the development and deployment of bioenergy solutions for power and fuel. Novozymes supports the work of the Accelerator.

In 2017, three Accelerator members and international technical agencies – the International Renewable Energy Agency (IRENA), the UN FAO and the International Energy Agency (IEA Bioenergy) – jointly wrote and published a briefing paper. The paper underscores the importance of bioenergy in achieving the UN SDGs related to climate, food, sustainable land use and sustainable energy.

In March, Everest Energy (an Accelerator partner) established SusInc in Nairobi, Kenya. SusInc is a project accelerator making financing in renewable energy smarter and faster. The objective is to create bankable projects and foster investor engagement in East Africa.

Novozymes’ regional subsidiaries in Brazil, China, India, the Nordic region and the US are active members of the UN Global CompactAn international UN initiative with the intention of bringing companies together with UN agencies, labor and civil society to support ten principles in the areas of human rights, labor standards, the environment and anticorruption. See www.unglobalcompact.org.'s local networks. Furthermore, regional subsidiaries engage in relevant local working groups and arrangements to further the UN Sustainable Development Goals (SDGs)The 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.. Here is an overview of activities in 2017:

Brazil

In 2017, Novozymes supported the adoption of RenovaBio through ABBI (see Advocacy and policy engagement). To reinforce our contributions to the biofuelsLiquid fuels produced from primary crops or biomass such as sugarcane, grains, agricultural residues, algae and household waste. They are typically used to replace gasoline and diesel in transportation. One of the advantages of biofuels is that they are the only existing liquid alternative to fossil fuels. segment, we cofounded and became a member of the board of the National Union of Corn Ethanol (UNEM).

In 2017, Pedro Luiz Fernandes, Vice President of Corporate Affairs and Sustainability of Novozymes Latin America, was elected to the board of directors of the Brazilian Association of Industry and Commerce of Food Ingredients and Additives (ABIAM).

The Enzymes Working Team is also led by Novozymes Latin America and helps in the dialogue with the Brazilian health authorities. The association focuses on Brazilian legislation and the Mercosur regulatory framework on food ingredients and additives.

China

In 2017, Novozymes retained its board membership of the UN Global Compact Network China. As part of the network, we are responsible for reviewing annual working plans and for supporting the implementation of local initiatives. In 2017, we raised awareness about the importance of the SDGs by sharing knowledge within the network, and encouraged MiniJ, one of our new customers, to commit to the UN Global Compact’s Ten Principles and engage in local promotion of the SDGs.

In October 2017, we attended the 72^nd United Nations Day in Beijing. The event was also attended by government agencies, international organizations and private sector organizations. The objective of the event was to inspire and mobilize stakeholders to act on the SDGs.

Denmark

In 2017, we engaged with our peers from the UNGC Nordic Network to seek stakeholder feedback on our annual reporting. The group shared feedback on companies’ business models, SDG communications, 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. assessments and so on. Going forward, Novozymes will continue to engage in peer reviews of the COP to gain further insights into better reporting practices.

India

Novozymes continued its role as convener of the Sustainability Alliance Partners platform, which promotes the environmental principles of the UN Global Compact. The group supports the conceptualization of various approaches to take the sustainability agenda forward in India.

In 2017, we participated in Making Global Goals Local Business – India, an event organized by the UN Global Compact. Claus Stig Pedersen, Novozymes’ Head of Corporate Sustainability, was the keynote speaker at the Blueprint for SDG leadership session.

We also participated in the Business and Climate Summit, one of the leading annual forums for businesses, investors and policymakers to build the partnerships needed to accelerate the low-carbon transition.

In 2017, Novozymes was part of the Confederation of Indian Industry (CII) Climate Change Council. The council engages with the government to understand the role of industry in meeting India’s Nationally Determined Contribution (NDC) related to the Paris Agreement. Novozymes also cochairs the CII Bioenergy committee in India. The committee looks at biofuels policies and plays a thought leadership role in terms of the overall issue of biomassOrganic material, predominantly plants or plant residues. collection and aggregation.

As part of our engagement with CII, we participated in the 12th Sustainability Summit, organized by the CII and the ITC Centre of Excellence for Sustainable Development. The summit focused on topics such as climate change action, clean energy and sustainable living with good health and nutrition.

North America

In 2017, Novozymes continued to support the UN's efforts to promote the SDGs in the private sector, and we elevated the discussion at numerous prominent events throughout the year. Claus Stig Pedersen, Novozymes’ Head of Corporate Sustainability, talked about how companies can align their strategies and innovation pipelines with the SDGs to create a positive impact at Sustainable Brands 2017 Detroit and the LAUNCH Circular Innovation Summit. Arlan Peters, Head of Sustainability for North America, also spoke about aligning corporate strategies with the SDGs at the CERES Conference 2017 and GreenBiz 2017.