Novozymes launches new purpose statement, strategy, and long-term targets
Help secure better lives
With this strategy, Novozymes reinforces its commitment to help solve some of the pressing global challenges facing a growing world. As the world leader in industrial biotechnology, Novozymes understands that biology can bring answers to some of these challenges. Pooling insight and expertise together helps find the sustainable answers needed.
“It is important to focus on relationships that make a difference. We call it Partnering for Impact,” says Peder Holk Nielsen. “For us, partnerships mean deep-rooted collaborations with mutual benefits and obligations. Impact is about creating healthier foods, better climate, cleaner air, nature in balance or more jobs. And it is about optimizing a partner’s processes, creating new products or reducing their environmental footprints. Creating impact for our partners is often also a very direct way to better lives in a growing world.”
The new strategy sets out four focus areas for Novozymes, namely; 1) Rally for change, 2) Lead innovation, 3) Focus on opportunities and 4) Grow people. These focus areas will not only be addressed at a corporate level but also be reflected in the separate strategies for each industry area. With the special focus being on Rally for change, Novozymes will explore new kinds of partnerships, and become a driving force in bringing together coalitions of the willing, for example, working with governments and international organizations to create sustainable energy from waste or partnering with countries to solve challenges about access to nutritious food and clean water.
To measure progress, Novozymes has set new targets.
“As part of our new purpose and strategy, we have set a series of long-term targets to assess how we are doing,” says Peder Holk Nielsen. “Over the next five years we aim to reach, educate, catalyze, deliver, save and enable to make a lasting difference.”
Novozymes’ enzymatic solutions should reach 6 billion people by 2020, while simultaneously striving to educate 1 million people about the potential of biology. The company aims to partner with key public and private organizations – to catalyze five global partnerships for change. Novozymes wants to deliver 10 transformative innovations that change the lives of many people, and save 100 million tons CO2 through the use of their products by 2020. Through investing more in their employees and leadership development, Novozymes want to enable their people develop.
Updated long-term financial targets
Novozymes’ updated long-term organic sales growth target is 8-10% in local currency on average throughout the period from 2015 to 2020. This replaces the previous target of +10%, and reflects the current visibility of the global economy and end markets and innovation pipeline. The EBIT margin is also updated, increasing from more than 24% to 26% and above, and is expected to be achievable through 2015 to 2020. The updated long-term target for ROIC including goodwill is 25% and above, and replaces the previous target of more than 22%. This is expected to be reached throughout the period.