The Novo Nordisk Way of Management sets out a commitment to continuous improvements of the company’s social, environmental and economic performance. Against this governance framework, targets are set to provide direction and impetus for moving forward.

Novo Nordisk’s strategy for sustainable development rests on a three-tiered approach. First, the corporate governance structure defines our commitments. Second, the stakeholder engagement approach enables us to stay attuned to emerging issues and concerns. And third, target-setting and systematic follow-up procedures help ensure continuous improvement and exchange of better practices in the organisation.

The pursuit of the overall objective to balance social, environmental and economic concerns in every business decision made translates into both corporate and individual targets. These, in turn, are applied as a management tool, linking directly into Novo Nordisk’s Balanced Scorecard. Each year, short-term targets are defined in the corporate Balanced Scorecard, and subsequently carried over into relevant units’ individual scorecards. For each target, a responsible manager is identified, and through inclusion in Balanced Scorecards at corporate and unit levels, internal procedures are in place to secure systematic follow-up and reporting.

From strategic objectives to business goals 
(click to see illustration)

In the areas of bioethics, environment, health and safety, and social responsibility, the strategic objectives are built into the annual Balanced Scorecard targets for relevant units.
At production sites, for example, targets for reduction of water and energy use reflect the strategic objective to improve eco-productivity. The People Strategy, in turn, and its
specific targets apply to all organisational units.

Status of progress against our targets by the end of 2002 can be seen in this table

Progress against targets   
(click to view full table)

Page numbers after targets refer to the articles presenting the issue in context in the printed report.

The 28 targets for the company’s social and environmental performance were defined as part of the annual Balanced Scorecard process in 2001. They reflect what we have identified as the key Triple Bottom Line issues for Novo Nordisk as a global healthcare company in the short- and medium-term timeframe.

Of the targets that were to be met by the end of 2002, 14 have been met, and three have been redefined:

• A mandatory climate survey, eVoice 2001, was conducted to assess how employees think about the company, their job and their development opportunities. The goal was to follow up on the findings through mandatory surveys. However, it was later decided that conducting the eVoice in 2002 was not to be mandatory. In 2003 there will again be a company-wide climate survey.
• All affiliates were to make a plan in 2002 on assisting in the development and implementation of a national diabetes strategy in their country. In the course of 2002, due to budget cuts, one of the workshops for affiliates was cancelled. Instead, money was allocated to a workshop in the US. A programme is in place by January 2003.
• The deadline for reporting on lorry transport of a number of raw materials has been extended from 2002 to 2003 as it has been a greater task than anticipated to report in full on all transports.

Financial targets are defined for the long term. A detailed status on the company’s financial performance is found in the Annual Financial Report.