Novo Nordisk’s environmental profit and loss account

Novo Nordisk’s environmental profit and loss account

The Novo Nordisk Environmental Profit and Loss Account (E P&L) is a response to PUMA’s call for contributions to the E P&L methodology and the expert review of PUMA’s E P&L. The Novo Nordisk E P&L is reported in two parts; the main report, which focuses on the results and the application of these in a Novo Nordisk context, and the methodology report which focuses on the methodology applied for establishing the E P&L results.

Overview of results

  • The total environmental impact amounts to 223 million Euro, including both Novo Nordisk operations and indirect impacts throughout the supply chain.
  • The main environmental impacts occur in tier 1 and tier 3 (75 per cent). Novo Nordisk’s own operations constitute only 13 per cent of the total environmental impact.
  • The results of the Novo Nordisk E P&L reveal that Novo Nordisk’s most material impacts on nature occur in tiers 1 and 3 with the emission of GHGs.
  • Indirect spend constitutes more than 85 per cent of the total spend at Novo Nordisk in 2011.
  • The environmental impacts relating to Indirect spend total 156 million Euros, or 70 per cent of the total environmental cost.
  • Tier 1 and 3 are the largest contributors to the environmental costs relating to water consumption, likely driven by raw materials extraction, farming, machinery and equipment, buildings, etc.
  • Direct spend accounts for a smaller share of the total spend, but includes operational energy usage, water usage and a large share of product distribution.
  • The total environmental cost relating to Direct spend is 67 million Euros, approximately 30 per cent of the total impact of the E P&L.
  • The tier distribution shows that the main impacts are located in Novo Nordisk operations, and tier 3.
  • Novo Nordisk operational environmental costs are driven by the energy and water consumption at the production facilities, tier 1 impacts are driven by product distribution, tier 2 from processing of raw materials and tier 3 includes raw material impacts, primarily from corn production for glucose and oil extraction for plastic materials.

Further reading: Methodology document

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