Pilot Programme
webinar
4 March 2014
Agenda
■ The link between <IR> 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
Integrated
strategic
management
The journey of Novo
Nordisk
Susanne Stormer
Vice President
Corporate Sustainability
Novo Nordisk - integrated strategic management
IIRC webinar, 4 February 2014
Purpose-led and values-driven
The Triple Bottom Line business principle
The Novo Nordisk way
•
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
Novo Nordisk - integrated strategic management
Novo Nordisk’s strategy
IIRC webinar, 4 February 2014
Novo Nordisk - integrated strategic management
IIRC webinar, 4 February 2014
Integrated strategic management
A solid governance structure is in place
Governance
Stakeholders
- Trend spotting
- Stakeholder engagement
- Partnerships
Performance
-
Balanced Scorecard
Personal performance goals
Long-term incentive programme
Quarterly management reporting
Annual reporting
Integrating
thinking in
business processes
- Articles of Association
- Novo Nordisk Way
- Policies and strategies
- Boards and Committee
- Annual strategy review by
the Board of Directors
Aspirations & goals
- Strategic long-term targets
and 2020 aspirations
- Specific short-term targets
Novo Nordisk - integrated strategic management
Our long-term targets
BSC Reported in AR
IIRC webinar, 4 February 2014
Novo Nordisk - integrated strategic management
IIRC webinar, 4 February 2014
Excerpt from the statements: social metrics
2011
2012
2013
Long term
target
20.9
22.8
24.3
40by20
Least developed countries where Novo Nordisk sells
insulin
36
35
35
Working the Novo Nordisk Way
4.3
4.3
4.4
4.0
Diverse senior management teams
62%
66%
70%
100%
Frequency of occupational accidents
3.61
3.61
3.5
Employee turnover
9.8
9.1
0
1
Social performance in 2013
Patients reached with Novo Nordisk diabetes care
products in millions (estimate)
(employee engagement score)
Warning letters and re-inspections
1. Comparative numbers have been restated
8.1
1
Questions
Technical priorities
BREAKTHROUGH PHASE
■ Provide guidance and examples
■ Gather Framework feedback
■ Demonstrate evidence base/business case for <IR>
■ Reduce barriers to implementation
Projects
ONGOING
SPECIFIC TOPICS
■
■
■
■
■
■
■
■
■
■
■
■
Monitor implementation
Examples database
Policy input
Business case/evidence
Academics
Other initiatives
Megatrends, capitals and value
Value
Materiality and boundaries
Navigating <IR>
Public sector
Assurance
Pilot Programme involvement
TASK FORCES
■ Subject-matter expertise
■ Regional representation
■ Stakeholder/functional balance
■ Skill set, gender, diversity
Technical
Pilot
Programme
priorities
involvement
INPUT OPPORTUNITIES
Project
scoping
Task
force
Review
team
Ongoing
P
P
P
P
Monitor implementation
■ additional guidance
■ implementation challenges
■ unclear terminology
Assurance
■ demand
■ technical
■ readiness
P
P
Contact: michael.nugent@theiirc.org
Technical
Pilot
Programme
priorities
involvement
INPUT OPPORTUNITIES
Evidence base/business case for <IR>
■ 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
Project
scoping
Task
force
P
■ anecdotal support including investor
reaction and board response
Contact: lisa.french@theiirc.org
Review
team
Ongoing
P
P
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
Mega-trends, capitals and value
PROJECT OBJECTIVES
■ Root <IR> 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
Pilot Programme involvement
INPUT OPPORTUNITIES
Mega-trends, capitals and value
Project
scoping
Task
force
Review
team
Ongoing
P
P
P
P
Contact: lisa.french@theiirc.org
Materiality and reporting boundaries
PROJECT OBJECTIVES
■ Reconcile materiality determination approach defined by the
International <IR> 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
Pilot Programme involvement
INPUT OPPORTUNITIES
Project
scoping
Materiality and reporting boundaries
Task
force
Review
team
Ongoing
P
P
P
Contact: lisa.french@theiirc.org
Questions
IIRC Pilot Programme Conference 2014
■ Madrid, Spain
■ Eurostars Madrid Tower Hotel
■ Start at lunchtime on Wednesday 24 September
■ Finish at lunchtime on Friday 26 September
Next webinar on
Wednesday 7 May