Codes, standards and practices

Novo Nordisk strives to communicate effectively with all its stakeholders and holds itself accountable to stakeholders for the company’s performance. We maintain open, respectful, timely and transparent communication and reporting. The company’s reporting on financial and non-financial performance meets current global reporting standards (such as the IFRS and the GRI Sustainability Reporting Guidelines) and seeks inspiration from best practice. The accuracy, completeness and reliability of the information provided is verified through internal controls, independent audits and assurance.

As an international company listed on the stock exchanges in Copenhagen, New York and London, Novo Nordisk is in compliance with Danish, US and UK securities laws, with the Danish Recommendations on Corporate Governance, and is in general in compliance with corporate governance standards in New York and London.

Compliance is supported by company standards and a set of management tools that drive and monitor performance. According to one of the Fundamentals: ‘Every manager must establish and maintain procedures in the unit for living up to relevant laws, regulations, and group commitments.’

The Novo Nordisk Way of Management forms the values-based governance framework for the company. From vision to policies, it explicates how values are put into action. It is sufficiently specific to guide decision-making, yet at the same time allows for the adoption of new, supporting guidelines, policies or practices in response to evolving societal expectations or business developments.

The Novo Nordisk Way of Management also specifies the commitments to financial, environmental and social responsibility. This includes subscribing to:

• The International Chamber of Commerce’s Charter for Sustainable Development
• The United Nations Convention on Biological Diversity
• The United Nations Universal Declaration of Human Rights
• The United Nations Global Compact.

Beyond compliance with international and national legislation and regulations and with local authorities, Novo Nordisk subscribes to a number of voluntary codes and standards.

Below is a listing of those that are deemed most relevant:

As an international company listed on the stock exchanges in Copenhagen, New York and London, Novo Nordisk is in compliance with Danish, US and UK securities laws.

Novo Nordisk is in compliance with the Danish Recommendations on Corporate Governance, and is in general in compliance with corporate governance standards on the New York and London Stock Exchanges.

Novo Nordisk has chosen an integrated approach to reporting on its financial and non-financial performance. Hence, reporting follows current international standards in terms of both mandatory and voluntary reporting. The information is audited and assured. 

As of 2004 Novo Nordisk’s financial accounting principles comply with International Financial Reporting Standards (IFRS). This is one year ahead of requirements.

In 2005, again a year ahead, Novo Nordisk is in full compliance with the requirements for documenting and reporting performance spelled out by the Sarbanes-Oxley Act. Novo Nordisk provides this information in its Form 20-F submitted in January 2006.

Novo Nordisk’s non-financial reporting follows the accountability standard AA1000 Framework. This states that reporting must provide a complete, accurate, relevant and balanced picture of the organisation’s approach to and impact on society. The report is assured against the AA1000 Assurance Standard.

Novo Nordisk reports, and has done so since 2002, in accordance with the Global Reporting Initiative’s (GRI’s) 2002 Sustainability Reporting Guidelines, which require reporting according to 11 principles and against a list of indicators. See the GRI index with an overview of the full ‘in accordance’ reporting.

Novo Nordisk is (since 2002) a signatory to the United Nations Global Compact, a platform for promoting good corporate principles and learning in the areas of human rights, labour, environment and anti-corruption. The company reports on actions to implement its 10 principles during 2005 in a Communication on Progress, including performance metrics aligned with the GRI Guidelines.

Other codes and standards that Novo Nordisk subscribes to are:

UN Convention against Corruption (2005)

UN Universal Declaration of Human Rights (1999)

International Chamber of Commerce Business Charter for Sustainable Development (1999)

Environmental management ISO14001

As a pharmaceutical company, Novo Nordisk is regulated by the FDA. This also regulates quality, advertising and marketing. In addition, the company has implemented the following certified management systems:

Novo Nordisk’s production is certified according to the ISO9000 standard.

In 2006 Novo Nordisk will adopt a management system certified according to OHSAS18001 for Novo Nordisk in Denmark and Product Supply globally.

Novo Nordisk subscribes to the WHO Ethical Criteria for Medicinal Drug Promotion.

Novo Nordisk is included in several indices for sustainable investments, including the Dow Jones Sustainability Index, in which the company was rated Super Sector Leader in 2005.

Novo Nordisk has joined the WWF Climate Savers programme.

See a list of awards for the company’s sustainability-driven activities.

This page has been assessed by PricewaterhouseCoopers as part of its assessment of Novo Nordisk’s statement that it reports ‘in accordance’ with GRI. Please refer to Audit and assurance for a full description of the nature of assurance offered.