Novo Nordisk CSR Content Analysis
CSR Content Analysis on Novo Nordisk
Novo Nordisk is a global company based in Denmark operates in the pharmaceutical and healthcare industry. In pursuit of corporate sustainability, Novo Nordisk operates in accordance with the Triple Bottom Line principle which balances financial, social and environmental considerations. In 2013, 78.32% of Novo Nordisk’s total revenue was generated from diabetes care products, thus sustainability initiatives relevant to this core activity are important to the company. Three major initiatives are discussed below.
1. cLEAN
1.1 Importance cLEAN is the LEAN manufacturing principles developed by Novo Nordisk. Due to the energy-intensive production of insulin products, potential lack of energy in the future resulted from climate change is a crucial risk to Novo Nordisk. It is important for the company to mitigate this risk so that the threat of inability to produce can be avoided. cLEAN enables the company to produce in a more energy-efficient way. By implementing this initiative, Novo Nordisk can reduce the energy consumed and carbon emissions as well as cut manufacturing cost, which benefits both the society and the company.
1.2 Assessment
The performance of this initiative can be assessed quantitatively via percentage of production cost to sales, energy consumption and carbon emissions. The figures in the following table indicate energy efficiency is improved in 2013 since the manufacturing cost contributed to finished goods was 0.34% less compared to that of 2012. However, energy consumption and relevant CO₂ emissions have increased as a result of increased production and new production facilities came into use in 2013.
2012
2013
Change
COGS/Sales (%)
17.26%
16.92%
(0.34%)
Energy consumption (1,000 GJ)
2433
2572
5.71%
CO₂ emissions from energy consumption
(in 1,000 tons)
122
125
2.46%
1.3 Recommendation
The company can report energy intensity according to G4 Specific Standard Disclosures to better reflect
Novo Nordisk is a global company based in Denmark operates in the pharmaceutical and healthcare industry. In pursuit of corporate sustainability, Novo Nordisk operates in accordance with the Triple Bottom Line principle which balances financial, social and environmental considerations. In 2013, 78.32% of Novo Nordisk’s total revenue was generated from diabetes care products, thus sustainability initiatives relevant to this core activity are important to the company. Three major initiatives are discussed below.
1. cLEAN
1.1 Importance cLEAN is the LEAN manufacturing principles developed by Novo Nordisk. Due to the energy-intensive production of insulin products, potential lack of energy in the future resulted from climate change is a crucial risk to Novo Nordisk. It is important for the company to mitigate this risk so that the threat of inability to produce can be avoided. cLEAN enables the company to produce in a more energy-efficient way. By implementing this initiative, Novo Nordisk can reduce the energy consumed and carbon emissions as well as cut manufacturing cost, which benefits both the society and the company.
1.2 Assessment
The performance of this initiative can be assessed quantitatively via percentage of production cost to sales, energy consumption and carbon emissions. The figures in the following table indicate energy efficiency is improved in 2013 since the manufacturing cost contributed to finished goods was 0.34% less compared to that of 2012. However, energy consumption and relevant CO₂ emissions have increased as a result of increased production and new production facilities came into use in 2013.
2012
2013
Change
COGS/Sales (%)
17.26%
16.92%
(0.34%)
Energy consumption (1,000 GJ)
2433
2572
5.71%
CO₂ emissions from energy consumption
(in 1,000 tons)
122
125
2.46%
1.3 Recommendation
The company can report energy intensity according to G4 Specific Standard Disclosures to better reflect