One of the most visible manifestations of our commitment to Triple Bottom Line Management is our integrated reporting. Since 2004, we have reported on financial, social and environmental performance in one combined report. Our annual reporting includes both non-financial and financial statements which provide detail on our efforts to have a net positive impact on society by reducing environmental impacts, increasing quality of life through better healthcare treatment, as well as providing an attractive return on investment for shareholders.
The integrated reporting format was introduced to enhance Novo Nordisk's financial valuation and to explore the relationship between financial and non-financial performance. More broadly, the objectives of Novo Nordisk's reporting efforts have both an external and an internal dimension.
- Increase accountability to all stakeholders (to those with a financial stake in company performance as well as those without)
- Increase internal accountability for achieving performance objectives
We were one of the first companies to integrate financial and non-financial reporting. Our commitment to reporting leadership includes a desire to continuously improve. Some of the areas on which we are focused include.
- Reporting sustainability information based on its importance to the company's strategy and the extent to which it impacts key business activities.
- Reporting information for each critical business activity, demonstrating the connection between sustainability and financial performance in a disaggregated format.
- Reporting all performance against targets and explaining the strategic intent of targets.
- Assessing and reporting on how the company is reducing its risk and will earn profits through sustainability-focused management.
- Using metrics that are standardised and comparable over time. Ideally, metrics should also be comparable with companies in and outside of our industry.
It is Novo Nordisk’s responsibility to ensure that those areas in which the company has significant impact are addressed. Issues are prioritised to be reported either in the annual report (most material), or in additional online information (material, often catering to specific stakeholder interests), or not reported (not material).
In assessing what information to include in the annual report, legal requirements and commitments Novo Nordisk has made to disclosure are considered. Furthermore, it is assessed whether information is tied directly or indirectly to Novo Nordisk’s ability to create value. Short- and long-term value creation is taken into consideration.
The outcomes of formal reviews, research, stakeholder engagement and internal materiality discussions are presented as a proposal for annual reporting to Executive Management and the Board of Directors. In addition, Novo Nordisk’s external assurance provider is requested to assure whether the social and environmental performance data included in the annual report cover the material aspects. The conclusion is available in the Independent assurance report in our Annual Report 2011.