The company's management recognizes the "move to sustainable development . . . can be an opportunity to create competitive advantages, if successfully integrated into the corporate strategy." It understands the planet's limited resources, the increasing pressures on those resources, and the need to live "more off the earth's interest, and less off its capital."
Novo Nordisk's largest environmental impacts are associated with its energy, water, and raw materials use. The company is working to reduce its carbon dioxide emissions, in line with the Kyoto Protocol, through energy-saving initiatives and renewable energy purchases. Novo Nordisk has entered into an agreement with DONG Energy (Denmark's largest energy company). DONG will assist Novo Nordisk in identifying energy-saving initiatives, and in return, Novo Nordisk will purchase corresponding quantities of energy from offshore wind farms. Areas for improvement include transparency surrounding the company's life cycle thinking aimed at minimizing resource consumption across production stages.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 9/30/12 and may not reflect current opinions or subsequent events.