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Judging OPERATiOns PERfORmAnCE AT A sTRATEgiC lEvEl 55

for example, laundry and dishwashing detergents (where they remove stains and enable low-
temperature washing), while other enzymes improve the quality of bread, beer and wine, or
increase the nutritional value of animal feed. They are also used in the production of biofuels
where they turn starch or cellulose from biomass into sugars that can be fermented to ethanol.
How does Novozymes judge its own performance? It is a commercial company with inves-
tors who expect a return on their investment, but the company also strives to balance good
business for its customers and its shareholders with the impact it has on environmental and
social change. In terms of the conventional financial performance of its operations, the com-
pany tracks revenues from its various markets as well as its raw materials costs, productivity
improvements, investment in research and development, sales and administrative costs, as well
as the effects of such operational factors as the product mix at its processing operations. Of
course, Novozymes also monitor how good their operations are at interacting with customers
and suppliers.
In terms of its environmental performance, Novozymes has two aspects to monitor. The first
is their products and services’ impact on their customers’ performance. The company conducts
peer-reviewed Life Cycle Assessment (LCA) studies to document the environmental impact of
its biosolutions for its customers and advise them on ways to reduce their CO emissions. As
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regards its own operations, Novozymes attempts to reduce the consumption of natural resources
(including water usage) every year and mitigate the negative environmental impact of its pro-
duction processes. Likewise, the improvement in energy efficiency is driven by continuous pro-
cess optimisations and the implementation of energy-saving projects at their global production
sites. But all production processes produce waste and by-products, so Novozymes seek continual
improvement in the amount of waste and by-products that are sent for landfill or incineration.
This has the double effect of reducing the cost of waste treatment as well as minimising the
company’s environmental footprint. As a result of these efforts, the Dow Jones Sustainability
Index, a global sustainability benchmark, has ranked Novozymes among the top 3 per cent of
companies in the chemical industry sector.
The company also tracks several aspects of their social performance. These include employee
satisfaction and development, diversity and equal opportunities, occupational health and
safety, compliance with human rights and labour standards, corporate citizenship efforts and
business integrity. Perhaps most impressively, Novozymes sets long-term performance targets
in key aspects of their performance that are integrated into incentive schemes throughout the
organisation. Long-term financial performance is measured conventionally through the rate
of sales growth, profitability and the return on invested capital. However, in addition, they
also have a number of ‘impact targets’. Within five years the company says that their aim is to

● reach six billion people, especially in emerging markets, with their products that enhance
sustainability.
● educate by providing knowledge of the potential of biology to one million people by
training in factories, local-community outreach and involvement with universities and
business schools.
● catalyse five global partnerships for change through high-impact partnerships with pub-
lic and private organisations to create answers for a sustainable world.
● deliver ten transformative innovations that change the lives of many people and fulfill
sustainability goals.
● save the world 100 million tons of CO a year through customers applying our products.
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● enable their employees to develop their skills.

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