Policy view from a macro perspective

Transcription

1 European CSR policy from a macro perspective 31 January 2012 Responsible Investment Summit: Smart, Sustainable, Inclusive Capital for 2020 Europe Policy view from a macro perspective Susanne Stormer VP, Corporate Sustainability Novo Nordisk

2 Challenges for Europe abound 31 January 2012 Slide no 2 Ageing population Environment and climate Social cohesion Growth and employment Source: The World Guide to CSR (Visser and Tolhurst, 2010)

3 Europeans are losing confidence in business as a force for good 31 January 2012 Slide no 3 % of well educated, high income citizens who trust business to do what is right Source: Edelman Trust Barometer (Edelman, 2012)

4 31 January 2012 Slide no 4 The social contract must be renegotiated

5 31 January 2012 Slide no 5 A European ambition for growth EU strategy Enterprises should have in place a process to Identify, prevent and mitigate their possible adverse impacts Maximise the creation of shared value for their owners, and for their other stakeholders and society at large. Enterprise 2020 The company of the future, Enterprise 2020, operates profitably through mainstreamed responsibility and transparency, and innovates solutions for the planet and its people in close cooperation with stakeholders.

6 Policy guidance in Europe: Consistent with emerging global framework 31 January 2012 Slide no 6 OECD Guideline for Multinational Enterprises ILO Declaration of Principles for Multinational Enterprises UN Guiding Principles on Business and Human Rights UN Global Compact Ten Principles ISO Guidance Standard Global Reporting Initiative Source: A renewed EU strategy for CSR (European Commission, October 2011)

7 31 January 2012 Europe has a strong tradition for collaboration and responsible business Slide no 7 Source: Towards a greater understanding of the changing role of business in society (European Commission, 2011)

8 31 January 2012 Europe leads the pack - how can we leverage this potential? Slide no 8 Source: Sustainability Nears A Tipping Point (MIT Sloan and BCG, 2012)

9 New strategies for value creation 31 January 2012 Slide no 9 Source: Towards a greater understanding of the changing role of business in society (European Commission, 2011)

10 31 January 2012 Slide no 10 Enterprise 2020: Smart, sustainable and inclusive growth

11 Survival of the fittest: Strategies in a new economy 31 January 2012 Slide no 11

12 31 January 2012 Slide no 12 Sustainability is edging its way into core business Source: The business of sustainability: McKinsey Global Survey (McKinsey Quarterly, October 2011)

13 31 January 2012 Slide no 13 Novo Nordisk: Triple Bottom Line approach drives value Industrial symbiosis, Kalundborg Reductions in CO 2 emissions sales development CO 2 emission development 2014 CO 2 emission target Creating shared value Integrated reporting VALUE TO SOCIETY VALUE TO BUSINESS SHARED VALUE

14 31 January 2012 Creating, capturing and communicating shared value 1/2 Slide no 14 Maximise upside Minimise downside 01: The Climate Change Challenge Tangible Value Intangible Value Cost Risk Blueprint for Change: A business case study on the value creation of the Novo Nordisk climate strategy from

15 31 January 2012 Creating, capturing and communicating shared value 2/2 Slide no 15 02: Changing diabetes in China A business case study to explore the value of educating patients and health care professionals and building strong relations with local stakeholders 03: Creating shared value in the United States A business case study to analyse how aligning the needs of patients and stakeholders with business strategy has contributed to commercial success and helped improve quality of care, early diagnosis and diabetes prevention

16 31 January 2012 Slide no 16 A business case for investments: Green growth to solve big challenges

17 31 January 2012 Novo Nordisk: Strategic priorities for a healthy future Slide no 17 Sustainable capitalism - maximising long-term value Sustainability challenges Rise in NCDs Social inequity Resource scarcity Climate change Next generation -women empowerment -disease prevention Healthy people healthy planet - healthy lifestyles

18 Sustainable capitalism an oxymoron or a pleonasm? 31 January 2012 Slide no 18 When the wrong measures of success drive decisions, strengths can mutate into serious liabilities Christopher Meyer and Julia Kirby Source: Runaway Capitalism (Harvard Business Review, January-February 2012)

19 31 January 2012 Slide no 19 Profitability and accountability are key 450 Share performance - a proxy for good management? Accounting for multiple dimensions of performance - uncovering shareholder value? Novo Nordisk OMXC January 2005 January 2006 January 2007 January 2008 January 2009 January 2010