BM6010 Sustainability

and Purposeful Business

Novo Nordisk Case Study

Novo Nordisk is a global healthcare company with 90 years of innovation and leadership in diabetes care. The
company has a leading positions within haemophilia care, growth hormone therapy and hormone replacement
therapy. It employs 36,000 employees in 75 countries and markets its products in 180 countries.

Novo Nordisk believe that a healthy economy, environment and society are fundamental to long-term business
success. This is why they manage their business according to the Triple Bottom Line (TBL). The pursue business
solutions that maximise value to their stakeholders as well as shareholders. In practice, this means that any decision
should always seek to combine three considerations: is it financially, socially and environmentally responsible? This
way, Novo Nordisk continuously optimises their business performance and enhance their contribution to the
societies they operate in.

The TBL principle is anchored in Novo Nordisk’s business philosophy and in their Articles of Association, which state
that Novo Nordisk ”strives to conduct its activities in a financially, environmentally and socially responsible way.”

The company’s Blueprint for Change programme enables Novo Nordisk to create value through TBL. This is done by
identifying the drivers of value creation, measuring realised benefits for both society and the organisation, and
sharing this information with their stakeholders. Based on that, the company optimises its value creation and inspire
others to make sustainability-driven business decisions.

For instance, as part of the Blueprint for Change programme, Novo Nordisk have been working in Indonesia to
change diabetes awareness and access to healthcare and medication for diabetics.

In Indonesia, barriers to diabetes care prevent many people from living a healthy and productive life. Less than 1%
of people living with diabetes receive proper treatment. Insulin is received by 1 in 8 persons who need it. Lack of
public awareness, shortage of diabetes specialists and the low level of knowledge among many healthcare
professionals are among the key barriers to quality care.

Novo Nordisk has been investing to address the barriers. Investment in healthcare education has a positive effect
on doctors’ knowledge and patients' outcomes, while including other healthcare professionals such as general
practitioners, nurses and diabetes educators could help alleviate the burden. Novo Nordisk believes that by investing
in prevention, awareness, diagnosis and treatment, they can improve lives of many people and save billions of dollars
in the cost to society, stimulate market growth and enhance business opportunities for everyone involved.

Being reliant on energy intensive production, Novo Nordisk is conscious of its environmental performance. They
believe that taking early and voluntary steps to reduce their carbon footprint is a long-term risk mitigation strategy
as well as an act of corporate responsibility. Combining the two is sound business. In 2009, Novo Nordisk achieved
the CO2reduction target of their first generation climate strategy five years ahead of schedule.

By providing better treatment, raising awareness and advocating for earlier diagnosis the company enables people
with chronic conditions to live healthier, longer and more productive lives. By promoting responsible and ethical
business practices throughout their global value chain and continuously reducing the negative environmental
impacts generated by their activities, they are stimulating economic growth that is socially just and environmentally
sustainable. To Novo Nordisk, the TBL principle delivers long-term growth for the business by building trust,
protecting and enhancing their licence to operate and attracting and retaining the best people.

Source: Novo Nordisk (2014) NovoNordisk Sustainability

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 BM6010 Sustainability
and Purposeful Business

Questions

1. What is the ‘Triple Bottom Line’?

2. How are they addressing their triple bottom line? Give examples of how each of the three pillars of sustainability
are being addressed.

3. What are the benefits to Novo Nordisk of adopting the triple bottom line principle?

4. What are externalities?

5. What externalities would Novo Nordisk be creating if they did not have a Blueprint for Change programme?

6. With the Blueprint for Change programme in place, what externalities are Novo Nordisk creating?

7. How is the Blueprint for Change programme allowing the stimulation of market growth?

8. What do you think is meant by the term ‘licence to operate’ in the last sentence of the case study?