1. Driving Business with Sustainability and Partnerships
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Driving Business with Sustainability and Partnerships
Stefan Maard
Head of Sustainability Innovation

2. Inspired by the world
The draft United Nations Sustainable Development Goals and Post 2015 Development Agenda guided the development of our new Purpose, Strategy and Long Term Targets
We understand the SDGs to be the best representation of the global consensus on priority global challenges available
Our long-term targets are also an example of how we want to partner for impact: The targets are guided by the United Nations’ Sustainable Development Goals. In reaching our targets, we help create impact for the world.
Right now [September 2015], representatives of more than 193 countries are making history.
They have set 17 Sustainable Development Goals (SDGs) to direct the fundamental changes the world needs to tackle poverty and climate change, and grow sustainably and equitably both now and in the future.
Over the next 15 years, countries are expected to use these goals to frame policies, allocate financing and drive changes that will help build a more fair and sustainable world – for all.
The goals aim to unite governments, NGOs, companies and communities to work together to drive the sustainability agenda for the greatest impact.
Businesses play a key role and bear a big responsibility in doing so.
It’s a given for Novozymes to take on this responsibility and lead development towards a more sustainable tomorrow.
So when we defined our non-financial long-term targets we ensured that they reflected the intentions within the SDGs; and at the same time, the SDGs are a yardstick for measuring our progress on those targets.
As probably the first company in the world, we have succeeded to transform these very large and complex global sustainability goals into something that is operational on a business level.
Once we fulfill our targets we will have helped the world to become more sustainable, while ensuring our company’s continued growth.

3. 15 Novozymes Impact Categories Reading the SDGs taught us:
We break down the complexity within the Global Goals (SDGs) to impact categories relevant to our business
17 Goals
169 targets
15 Novozymes Impact Categories
Nutrification
Land use
Food supply
Health
Chemicals
Climate change
Energy supply
Sanitation
Poverty
Resources
Forest
Acidification
Water supply
Gender
Waste
Reading the SDGs taught us:
Poverty and social oriented
Possible to relate our technology to the SDGs:
Climate change (SDG 13)
Agricultural productivity (SDG 2.3)
Chemicals (SDG 3.9)
Need to strengthen understanding of social impacts
To ProMan:
17 goals:
1. End poverty
2. End hunger
6. Clean water
7. Renewable energy
13. Renewable energy
14. Life under water
15. Life on land
Each SDG and target were evaluated and related to the capabilities of NZ technology to create impact
Reading the SDGs taught us:
SDGs are poverty and social oriented
Our current technology more directed towards reduction of environmental impacts
Still, it is possible to relate our technology to a good number of SDGs
Climate change (SDG 13)
Agricultural productivity (SDG 2.3)
Chemicals (SDG 3.9)
We need to strengthen our understanding of social impacts in the future
We defined 15 impact categories that we can handle:
- Some are well-known whereas others may seem as bit new and exotic, like “poverty”, “health”, “gender”
……………..
General:
To make this approach operational, we break down the complexity within the SDGs to impact categories relevant to our capabilities which can be measured on an ongoing basis leveraging our experience in over ten years of LCA excellence
We see many benefits from understanding the impact of our company and our technology in a SDG context and will furthermore integrate SDG impact assessments into our existing annual corporate materiality assessment to prioritize sustainability activities on a corporate level

4. Working Version Our impact categories are mapped back to the SDGs
Novozymes Impact Categories…
… are measured and mapped back to SDGs and targets
Break down SDG complexity to manageable impact categories
Take lifecycle assessment approach to measure impact
Nutrification
Land use
Food supply
Health
Chemicals
Climate change
Energy supply
Sanitation
Poverty
Resources
Forest
Acidification
Water supply
Education
Waste
Working Version
To make this approach operational, we break down the complexity within the SDGs to impact categories relevant to our capabilities which can be measured on an ongoing basis leveraging our experience in over ten years of LCA excellence
We see many benefits from understanding the impact of our company and our technology in a SDG context and will furthermore integrate SDG impact assessments into our existing annual corporate materiality assessment to prioritize sustainability activities on a corporate level

5. ILLUSTRATIVE
We are developing SDG assessment and management tools to maximize our contribution
Novozymes Innovation Opportunities
High impact opportunities
Opportunity Screening Funnel
SDG Assessment
Products, Tech, Applications A
Launch
Business models B
Partnerships C
SDG ASSESSMENT STEPS
Identification
Understand the technology / activity for SDG assessment
Qualitative assessment
Review contribution to each impact category
Qualitatively assess and describe the impact
Choose relevant impact categories for further quantification where contribution, positive as well as negative, is expected
Quantitative assessment
Quantify contribution to relevant impact categories

6. Our new approach will encourage us to think creatively about business development
If the SDG impact potential is much larger than achievable with the standard business case we should ask:
How can we close the gap on commercially attractive terms?
Which partnerships can help us realize the potential?
Impact potential
Business Case
Our new approach will encourage us to think creatively about business development
In order to succeed we will need to think creatively about business development
When - NZ solutions have high SDG impact potentials
Then - rethink business cases and attract non business partners for more business and impact
If the SDG impact potential is much larger than suggested by the business case
Then we should ask:
Who has enough stakes in that societal impact and development to be willing to partner with us for realizing the potential of the solution?
For example, stakeholders in societal development are potential partners for impact :
Governments and regulators
Academia
Opinion leaders , organizations NGO´s
Consumers, retailers and customers,
And we should think about what additional business development levers can be used, for example:
Develop new business or service models
Identify and communicate new value propositions
Influence legislation to create an enabling environment
Solution 1
Solution 2
Solution 3 1 2 3

7. Walking the walk: Novozymes co-founding a new impact venturing vehicle with WBCSD and other partners…
DIVA is a unique venture incubation partner that both co-develops and co-invests in opportunities, helping corporations reach further with their ambitions for business development and impact, and creating deal flow for impact investors
9/17/2018