Annual Report 2007 - Novo Nordisk

Full-time positions
Geographical areas
1,000 full-time positions
30
25
20
15
10
5
03 04 05 06 07
Denmark
Europe (excluding Denmark)
North America
International Operations
Japan & Oceania
Remuneration
Geographical areas
%
100
80
60
40
20
03 04 05 06 07
Denmark
Europe (excluding Denmark)
North America
International Operations
Japan & Oceania
Sales per average
full-time position
Index (2003 = 100)
130
120
110
100
90
03 04 05 06 07
Sales per average
full-time position
Realised during the year
Environmental impacts
Compared to sales
Index (2003 = 100)
120
100
80
60
40
03 04 05 06 07
CO2 emissions per sales
Waste per sales
gramme, based on similar performance criteria as the
programmes for senior management. The pool will
operate with a maximum contribution per participant
equal to four months’ fixed base salary. The shares
in the pool are also locked up for a three-year period
before they potentially may be transferred to the
participants.
On 30 January 2008, the Board of Directors approved
the establishment of a pool for 2007 by allocating
a total of 527,665 Novo Nordisk B shares, corresponding
to a cash value of DKK 135 million. This was
based on an assessment of the economic value generated
in 2007 as well as the performance of the R&D
portfolio and key sustainability projects. This allocation
amounts to 3.25 months of fixed base salary on average
per participant. This amount will be recognised
over four years.
Non-financial performance
In 2007, Novo Nordisk continued to perform well in
terms of managing direct and indirect economic, environmental
and social impacts in areas of strategic importance.
The Triple Bottom Line approach aims to deliver
long-term value to the business and contribute to
global society. See p 53 for an overview of non-financial
measures.
Economics
Novo Nordisk created 2,344 new positions worldwide
and had 25,516 full-time positions, measured as fulltime
equivalents (FTE) at the end of the year. This is an
increase of 10% on 2006 and reflects increased activities
in all business areas. Via the multiplier effect, the
increase translates into 56,100 indirect jobs in the supply
chain worldwide.
In 2007, the number of employees outside Denmark
exceeded the number of employees in Denmark. This is
reflected in the distribution of remuneration between
geographical areas.
Environment
In 2007, the energy-related emissions of CO 2 from
Novo Nordisk’s global operations increased by 3%. The
total energy consumption also increased by 3%. Since
2005, the company has implemented energy-saving
projects at all production sites, which have resulted in
an estimated 12,000 ton reduction in total CO 2 emissions.
Comparing the CO 2 emissions to sales shows a
continued positive development from 2003 to 2007.
Assessments of performance against the company’s
ambitious long-term target to reduce its CO 2 emission
by 10% over a 10-year period as part of the WWF
Climate Savers Programme, indicate that performance
is on track.
The Eco Intensity Ratios (EIR) showed improved performance
in both business areas, and for both water
and energy.
The quantity of waste decreased by 27% from 2006
to 2007. The positive development is due to an increased
focus on waste, which has resulted in a 56%
decrease of the quantity of hazardous waste. In comparison
to sales growth there is a continued positive development
from 2003 to 2007.
Compliance with environmental regulation is a high
priority, and in 2007 the results of preventive measures
were clear: the number of breaches of regulatory limit
values decreased by 82% from 123 in 2006 to 22 in
2007. In the same period, the number of accidental releases
decreased by 22% to a total of 105.
During 2007, a total of 14 suppliers were audited on
their environmental and social performance. As a
follow-up on the revised responsible sourcing programme,
nine internal trainings on the new social and
environmental implementation procedure were conducted
with the participation of a total of 168 employees
responsible for procurement from all lines of business.
Social
By the end of 2007, Novo Nordisk employed 26,008
persons (full-time and part-time positions) – an increase
of 10% compared to 2006.
The level of ‘engaging culture’ (employee engagement)
is measured by the average answers of 10 equally
weighted questions in the annual survey, eVoice. In
2007, the consolidated score (on a scale of 1–5) was as
high as 4.1, increasing by 0.1 from 2006. In 2007, the
focus on the facilitations and follow-up on resulting
action points was maintained. In 2007, 99% of all action
points arising from facilitations were closed.
In 2007, the annual spending on training, measured
as average spend per employee, increased by 16%, reflecting
the company’s strategic priority on talent and
leadership development, and on lifelong learning offered
to all employees. Moreover, the fact that the
company took on board some 4,200 new employees
during the year has required that additional resources
be spent on induction training.
Changing Diabetes ® , Novo Nordisk’s global campaign
to improve prevention, detection and care, effectively
put diabetes on the public and political agendas.
On the first UN-observed World Diabetes Day, 14
November 2007, Novo Nordisk organised events to
mark the day across the world. In total 278,764 people
in 50 countries took part. The company’s global advocacy
effort to promote awareness of and action on diabetes
is a response to the UN Resolution on diabetes,
adopted in December 2006, in recognition of diabetes
as a major global health challenge and in respect of the
human right to proper care. See pp 26–29.
Novo Nordisk’s strategy to improve access to diabetes
care is a long-term leadership strategy to promote
medicines as well as to provide sustainable diabetes
care for all. The company has revisited its activities and
framed a new global programme targeting particularly
vulnerable populations: migrant communities in developed
countries, people in least developed countries
and emerging economies, and children. See p 29.
14 Novo Nordisk Annual Report 2007