Novo Nordisk has become the first pharmaceutical company in the world to publish an environmental profit and loss account so that it can further integrate sustainability into its core business. The EP&L was developed in partnership with natural capital analysts Trucost, NIRAS and 2.-0 LCA consultants.
Novo Nordisk, which is best known for making insulin to treat diabetes, has a well-established sustainability strategy through which it measures, manages and reports its environmental impacts. The EP&L takes this to the next level by putting a financial value on these impacts so that their significance can be easily understood and managed alongside other business issues.
Trucost’s analysis shows that the environmental impacts of Novo Nordisk’s business cost €223m in 2011. However, Novo Nordisk’s own operations were responsible for only 13% of these costs. Three quarters came from supply chain impacts such as greenhouse gases released from agricultural production of maize to make glucose, the main ingredient in insulin.
A significant benefit of the EP&L approach is that it provides a single metric to compare the relative scale of all environmental impacts across company operations, supply chains and product portfolios. The results of the EP&L will be used by Novo Nordisk to ensure its sustainability strategy is focused on the most costly environmental ‘hotspots’ in its business enabling the company to reduce operational and supply chain risks from volatile energy and raw materials prices, natural resource scarcity and regulatory costs.
Press Release dated February 17, 2014