1. Pilot Programme webinar 4 March 2014

2. ■ The link between and enhanced business performance Susanne Stormer, Novo Nordisk ■ Technical priorities – call for contributions Michael Nugent / Lisa French, IIRC ■ IIRC Pilot Programme activities for 2014 Sarah Grey / Kate Jefferies, IIRC Agenda

3. Susanne Stormer Vice President Corporate Sustainability Integrated strategic management The journey of Novo Nordisk

4. Purpose-led and values-driven IIRC webinar, 4 February 2014 Our ambition is to strengthen our leadership in diabetes. We aspire to change possibilities in haemophilia and other serious chronic conditions where we can make a difference. Our key contribution is to discover and develop innovative biological medicines and make them accessible to patients throughout the world. The Company’s objects are to carry out research and development and to manufacture and commercialise pharmaceutical, medical and technical products and services as well as any other activity related thereto as determined by the Board of Directors. The company strives to conduct its business in a financially, environmental and socially responsible way. Articles of Association The Triple Bottom Line business principle The Novo Nordisk way Novo Nordisk - integrated strategic management

5. Novo Nordisk’s strategy IIRC webinar, 4 February 2014 Novo Nordisk - integrated strategic management

6. Integrated strategic management A solid governance structure is in place Stakeholders Governance Aspirations & goals Integrating thinking in business processes Performance - Articles of Association - Novo Nordisk Way - Policies and strategies - Boards and Committee - Annual strategy review by the Board of Directors - Strategic long-term targets and 2020 aspirations - Specific short-term targets - Trend spotting - Stakeholder engagement - Partnerships - Balanced Scorecard - Personal performance goals - Long-term incentive programme - Quarterly management reporting - Annual reporting IIRC webinar, 4 February 2014 Novo Nordisk - integrated strategic management

7. Our long-term targets BSC Reported in AR IIRC webinar, 4 February 2014 Novo Nordisk - integrated strategic management

8. Excerpt from the statements: social metrics 3.6 1 Frequency of occupational accidents 3.5 Least developed countries where Novo Nordisk sells insulin 3635 Warning letters and re-inspections 10 1 Social performance in 2013 1. Comparative numbers have been restated Patients reached with Novo Nordisk diabetes care products in millions (estimate) 20.922.824.340by20 Working the Novo Nordisk Way (employee engagement score) 4.34.44.34.0 Diverse senior management teams 62%66%70%100% Employee turnover 9.89.18.1 201120132012 Long term target IIRC webinar, 4 February 2014 Novo Nordisk - integrated strategic management

9. Questions

10. BREAKTHROUGH PHASE ■ Provide guidance and examples ■ Gather Framework feedback ■ Demonstrate evidence base / business case for ■ Reduce barriers to implementation Technical priorities

11. ONGOING ■ Monitor implementation ■ Examples database ■ Policy input ■ Business case / evidence ■ Academics ■ Other initiatives Projects SPECIFIC TOPICS ■ Megatrends, capitals and value ■ Value ■ Materiality and boundaries ■ Navigating ■ Public sector ■ Assurance

12. TASK FORCES ■ Subject-matter expertise ■ Regional representation ■ Stakeholder / functional balance ■ Skill set, gender, diversity Pilot Programme involvement

13. INPUT OPPORTUNITIES Project scoping Task force Review teamOngoing Monitor implementation ■ additional guidance ■ implementation challenges ■ unclear terminology  Assurance ■ demand ■ technical ■ readiness   Technical prioritiesPilot Programme involvement Contact: michael.nugent@theiirc.org

14. Evidence base / business case for INPUT OPPORTUNITIES Project scoping Task force Review teamOngoing ■ hard data including reduced net reporting costs, return on investment, streamlining efficiency, cash flow implications of integrated thinking, stable investor base and reduced cost of capital ■ anecdotal support including investor reaction and board response   Technical prioritiesPilot Programme involvement Contact: lisa.french@theiirc.org

15. Mega-trends, capitals and value Megatrend. A large social, economic, political, environmental or technological change that is slow to form. Once in place, megatrends influence activities, processes and perceptions in business, government and society, possibly for decades. ■ shifting demographics / aging population ■ pace of technological change ■ cyber-security ■ urbanization ■ climate change ■ water scarcity

16. PROJECT OBJECTIVES ■ Root in business reality by connecting topical issues to the six capitals and value creation ■ Raise profile of capitals that often go overlooked ■ Consider how integrated reports can demonstrate connectivity and address short- and long-term performance tradeoffs Mega-trends, capitals and value

17. INPUT OPPORTUNITIES Project scoping Task force Review teamOngoing Mega-trends, capitals and value  Pilot Programme involvement Contact: lisa.french@theiirc.org

18. Materiality and reporting boundaries PROJECT OBJECTIVES ■ Reconcile materiality determination approach defined by the International Framework with those used in traditional financial and sustainability reporting ■ Illustrate link between materiality and conciseness ■ Showcase examples of materiality determination processes and the link to boundary determination

19. INPUT OPPORTUNITIES Project scoping Task force Review teamOngoing Materiality and reporting boundaries  Pilot Programme involvement Contact: lisa.french@theiirc.org

20. Questions

21. ■ Madrid, Spain ■ Eurostars Madrid Tower Hotel ■ Start at lunchtime on Wednesday 24 September ■ Finish at lunchtime on Friday 26 September IIRC Pilot Programme Conference 2014

22. Next webinar on Wednesday 7 May