Assets
| Type | Time | Amount | Unit |
|---|---|---|---|
| ifrs-full:Assets | 2024-12-31 | 15195600000 | eur |
| ifrs-full:Assets | 2023-12-31 | 3809400000 | eur |
Revenue
| Type | Start date | End date | Amount | Unit |
|---|---|---|---|---|
| ifrs-full:Revenue | 2024-01-01 | 2024-12-31 | 3833500000 | eur |
| ifrs-full:Revenue | 2023-01-01 | 2023-12-31 | 2402200000 | eur |
XML
See the xml submitted here:
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<mrv:PrimaryActionsForFulfillmentOfTargetFigureOfUnderrepresentedGenderBoardOfDirectors contextRef="ctx-2" id="f0__s9__9__29" xml:lang="en">We have set ambitious diversity targets for the Board of Directors to ensure the right mix of com-petencies to address the challenges of a large global company. Our policy on diversity, equity and inclusion covers the workforce and the Board of Directors. In 2024, the Board Competency Profile was updated and aligned with the competency and diversity needs of Novonesis.</mrv:PrimaryActionsForFulfillmentOfTargetFigureOfUnderrepresentedGenderBoardOfDirectors>
<mrv:StatusOfAchievementOfTargetFigureOfUnderrepresentedGenderBoardOfDirectors contextRef="ctx-2" id="f0__s9__9__30" xml:lang="en">Novonesisâ gender diversity target for shareholder-elected board members requires that at least 40% of the board members be female and at least 40% be male. As of December 31, 2024, 33% of Novonesisâ shareholder-elected board members, and 50% of Novonesisâ employ-ee-elected Board members, were women*. Despite not meeting our own gender diversity tar-get, the composition of the Board of Directors met the gender diversity requirements set out in Danish legislation during 2024. </mrv:StatusOfAchievementOfTargetFigureOfUnderrepresentedGenderBoardOfDirectors>
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<mrv:LinkToCorporateGovernanceReport contextRef="ctx-1" id="f0__s9__7__33">https://www.novonesis.com/en/about-us/corporate-gov-ernance/articles-association-and-statutory-reports</mrv:LinkToCorporateGovernanceReport>
<mrv:LinkToStatementOfDiversityPolicies contextRef="ctx-1" id="f0__s9__7__34">https://www.novonesis.com/en/about-us/corporate-gov-ernance/articles-association-and-statutory-reports</mrv:LinkToStatementOfDiversityPolicies>
<mrv:LinkToStatementOfPolicyForDataEthics contextRef="ctx-37" id="f0__s9__7__35">https://www.novonesis.com/en/about-us/corporate-gov-ernance/articles-association-and-statutory-reports</mrv:LinkToStatementOfPolicyForDataEthics>
<mrv:SustainabilityReport contextRef="ctx-1" id="f0__s9__7__36" xml:lang="en">Basis for preparationSustainability is integral to how we work at Novonesis. Our efforts are driven by our sustaina-bility ambition âPeople. Planet. Positive.â, depicting our aim to deliver biosolutions that enable a healthier planet and healthier people - our hand-print - while reducing the impact of our produc-tion and supply chain - our footprint. We have demonstrated sustainability leadership for decades and are committed to reporting transparently on environmental, social and gov-ernance (ESG) matters to our stakeholders. Our foundation is built on the triple bottom line approach, which focuses on reporting environ-mental and social performance, in addition to financial performance. We welcome the new EU Corporate Sustainability Reporting Directive (CSRD) and the underlying European Sustainability Reporting Standards (ESRS). We have adopted and implemented these standards throughout 2024, marking yet another milestone by publishing our first Sustainability statement.The Sustainability statement has been prepared in accordance with the ESRS, as developed by the European Financial Reporting Advisory Group (EFRAG). The Sustainability statement is prepared on a consolidated basis and comprise data and information from Novozymes A/S (Novonesis) and subsidiaries controlled by Novozymes A/S (Novonesis). Consolidation of the sustainability data follows the same principles as our financial reporting. When estimates or assumptions are used for reported sustainability data, they are detailed in our accounting policies within the relevant ESG sections. All topics disclosed in the ESG sections have been assessed as material in our Double Materiality Assessment(DMA). During the DMA, we evaluate impacts, risks and opportunities throughout our value chain, both upstream and downstream, taking into consideration the geo-graphical areas where we operate. In accordance with the CSRD, our Sustainability statement includes mandatory requirements and selected voluntary requirements. We are committed to ensuring the highest data quality in our assess-ments, as this approach allows us to strive for accuracy and reliability in the information we dis-close, while we work continuously to improve our data collection and reporting processes.Since sustainability is deeply integrated into our business model and strategy, selected CSRD dis-closure requirements are incorporated by refer-ence in the first part of the Management Review. These include our business model and strategic direction (SBM-1), the entity-specific topic Innovation (MDR-A, MDR-M, MDR-T), sustainabili-ty-related incentive schemes (GOV-3) and the composition and diversity of the Board of Directors and Executive Management (GOV-1). Please see our Content indexfor an overview of our CSRD-related disclosures and the page references. According to ESRS E2-5, we are required to report on enzymes that are generated, used dur-ing production, procured, and that leave our facili-ties as emissions, products, or parts of products. We consider this information sensitive for com-petitive reasons, and therefore we will not dis-close these amounts. ESRS MDR-A requires us to report the current CAPEX and OPEX allocations for our sustainability-related action plans. As sus-tainability is deeply integrated into our business model and operations, it is challenging to quantify these allocations, and we will not disclose these figures. Furthermore, we have not been able to identify a credible method to calculate Scope 3 biogenic emissions across our agricultural raw materials, as required by ESRS E1-6. We are in dia-logue with external partners to develop a credible methodology to report accurate numbers in the future, and therefore this will not be disclosed.Risk management and internal controls for sustainability reportingOur risk management and internal controls for sustainability reporting are designed to ensure that our Sustainability statement accurately reflects our performance. These controls help us measure, monitor and evaluate our performance, while complying with the CSRD and ensuring that there are no material misstatements.To achieve this, we have implemented procedures for reporting that ensure the completeness and accuracy of our sustainability data. We have embedded segregation of duties and relevant internal controls and checks within these proce-dures. We will continue to refine and adjust our internal controls, and review them annually, start-ing in 2025. The review will be submitted to the Audit Committee, which will follow up on the areas for improvement. Recognized for our sustainability effortsNovonesis is proud to be recognized for our sustainability leadership and perfor-mance by many leading rating agencies and platforms, such as CDP, MSCI, Sustainalytics, Ecovadis, FTSE4Good and UN Global Compact.Read more about our ratings and performance on our website:Read more Sustainability governance and due diligence Sustainability is anchored at all levels of deci-sion-making in our organization and fully inte-grated into the responsibilities of the senior lead-ership team. The Board of Directors has oversight of our overall approach to sustainability. The Executive Leadership Team assesses long-term sustainabil-ity trends and their impact on our business model, operations, and market position. They integrate sustainability into business strategies, our innova-tion pipeline, and external positioning. The Board of Directors and the Executive Leadership Team bring a wealth of international management, biotechnology and sustainability leadership expertise. To continuously enhance their sustainability skills, they participate in sessions on sustainability to discuss Novonesisâ approach and broader topics. Internal and external experts are invited to provide more specialized insights, when relevant. The acquired skills and expertise contribute significantly to mitigating risks, capitaliz-ing on sustainable business opportunities, and ensuring responsible governance practices.The Board of Directors approves our sustainability strategy, targets, policy and Double Materiality Assessment (DMA), enabling the Board of Directors to oversee material sustainability mat-ters. The assessment of material impacts, risks and opportunities (IRO), targets and the corre-sponding actions are presented at least once a year to the Board of Directors and the Executive Leadership Team. Please read more about our impacts, risks and opportunities in this overview.The Board of Directors has the overall responsibil-ity for overseeing risks and maintaining a robust risk management and internal control system. Novonesis has an Enterprise Risk Management(ERM) framework. Risks identified in the DMA pro-cess will be integrated into our ERM framework and managed in the same manner as other key business risks. Our sustainability strategy and targets are driven by our ambition to be a leader in sustainability and to positively impact people and the planet through our innovation, operations and employ-ees. The Executive Leadership Team has appointed the Executive Vice President (EVP) of Strategy & Integration, the Chief Operating Officer, the EVP of People & Stakeholder Relations, the Chief Science Officer, the Vice President of Global Sustainability, and the Senior Vice President of Corporate Finance to oversee the various sustainability matters. They report directly to the Executive Leadership Team on our sustainability performance and our progress on sustainability initiatives, and they drive our sus-tainability target-setting process. Our sustainabil-ity targets are approved by our Executive Leadership Team and the Board of Directors, and they regularly review our progress. For sustainability topics where we do not have corporate targets, we ensure the effectiveness of our actions by adhering to local and national regu-lations, and by monitoring our performance against internal action plans and roadmaps. Read more about our sustainability-related incen-tive schemes in the Summary of the Remuneration Report. Our sustainability due diligence To ensure sustainable growth and reliability as a partner to our customers, suppliers, shareholders, and the communities in which we operate, we iden-tify, assess and mitigate potential impacts, risks and opportunities through our due diligence process. Our human rights due diligence process follows the UN Guiding Principles on Business and Human Rights and the Organisation for Economic Cooperation and Development (OECD) Due Diligence Guidance for Responsible Business Conduct. We detail our approach to human rights due diligence, grievance mechanisms and reme-dies in the Working conditions and human rightssection and our Sustainability Commitment on Human and Labor Rights.As a member of the UN Global Compact, we report our annual Communication on Progress (CoP) on the UNGC website: Read more We have a robust environmental due diligence process across our production sites. We review local environmental impact assessments at least annually. The ISO 14001 standard guides our envi-ronmental risk assessments at production sites, where key identified risks are incorporated into our Enterprise Risk Management process. We are striving to ensure that all our production sites are ISO 14001 certified. Currently, all our production sites, except three minor ones, are certified. These assessments inform our standard operating procedures and emergency response plans. We take into account the views of neighbors and local municipalities during the permit issuance process, and we engage with local communicates when rel-evant. By adhering to these standards and prac-tices, we aim to foster responsible production and operations by continuously considering our obliga-tions to local stakeholders and the environment.The core elements of the CSRD due diligence process are described across our Sustainability statement and Management Review. 1Embedding due diligence in governance, strategy and business modelRead more in Corporate Governance, Sustainbility ambition: People. Planet. Positive.2Engaging with affected stakeholders in all key steps of the due diligenceRead more in Interests and views of stakeholders3Identifying and assessing adverse impactsRead more in Double Materiality Assessment4Taking actions and tracking effectiveness of these efforts and communicating themRead more in Environment, Social, and GovernanceCore elements of the CSRD due diligence processPolicies and Sustainability CommitmentsWe take a clear stance on the issues that matter to our business. Our policies are central to how we conduct business, and define our commitments and guiding principles. Our policies and Business partner code of conductare available on our website: Read more PoliciesOur policies are available on our website, and the following is an overview of the policies for our material sustainability topics. They are communi-cated internally to relevant employees via our intranet, through annual e-learnings, as an appen-dix to employment contracts, and through other training and communication materials.Novonesis Sustainability PolicyOur Sustainability Policy outlines our commitment to sustainability and our overall principles for inte-grating sustainability into our operations and busi-ness. It applies to all employees and activities at Novonesis. Our Board of Directors approves the policy, and our Executive Vice President of People & Stakeholder Relations is the most senior person responsible for policy implementation.Our policy includes innovating biosolutions to enable healthier lives on a healthier planet, along with commitments to governance, environmental resilience, social responsibility, and how sustaina-bility is embedded in operations broadly. We are commited to the UN Global Compact and actively engage various stakeholders to monitor, minimize and report on the environmental and social impacts of our own operations and supply chain.Novonesis Diversity, Equity and Inclusion PolicyOur Diversity, Equity and Inclusion Policy outlines key principles for creating a work environment and culture where employees feel genuinely accepted, are equally treated, and supported in expressing their thoughts, beliefs and opinions. It applies to all employees and activities at Novonesis. Our Board of Directors approves the policy, and our Executive Vice President of People & Stakeholder Relations is the most senior person responsible for policy implementation.The monitoring process involves regular assess-ment and communication of diversity, equity and inclusion initiatives to all employee groups and the Board of Directors.Novonesis Occupational Health and Safety PolicyOur Occupational Health and Safety Policy outlines our commitment to ensuring a safe and healthy work environment. It applies to all employees and activities of Novonesis. It also covers the safety of workers in the value chain while working at our sites. Our Board of Directors approves the policy, and our Chief Operating Officer is the most senior person responsible for policy implementation.This policy addresses impacts, risks and opportu-nities related to health and safety by promoting a strong safety culture, maintaining effective man-agement systems, ensuring employee well-being, reducing risks, and continuously improving occu-pational health and safety practices. The monitor-ing process involves regular assessment of safety incidents and statistics, occupational health cases, and sharing this information with employ-ees and the Board of Directors.Novonesis Quality and Product Safety PolicyThe Novonesis Quality and Product Safety Policy outlines our commitment to providing safe, high-quality and competitive products for cus-tomers. It applies to all employees and activities at Novonesis. It also covers the safety of workers in the value chain by informing customers about the safe use of our biosolutions. Our Board of Directors approves the policy, and our Chief Operating Officer is the most senior person responsible for policy implementation.Product safety is ensured by continuously identi-fying and mitigating risks, improving products and services to meet customer needs, and complying with regulatory requirements. Employee empowerment is emphasized to ensure a strong culture of quality and product safety. All these initiatives contribute to building trust with customers and partners. Novonesis Business Integrity PolicyOur Business Integrity Policy emphasizes our commitment to conducting business with honesty, fairness, and adherence to responsible and ethical practices. It applies to all employees and activities at Novonesis. Our Board of Directors approves the policy, and our Executive Leadership Team is ulti-mately responsible for its implementation.The policy covers compliance with laws and regu-lations, anti-corruption measures, fair business practices, international trade sanctions, data eth-ics, human rights, labor rights, equal opportunity, and engagement with business partners. Our goal is to maintain high standards of business integrity worldwide. We are committed to investigating ille-gal or unethical misconduct promptly, inde-pendently and objectively, and to take appropriate action in the event of any violation.Novonesis Whistleblower PolicyOur Whistleblower Policy allows our employees, customers, suppliers, business partners and other stakeholders to report any suspected violations of law, our policies or procedures, or other serious concerns, such as unethical conduct, through secure, confidential and anonymous reporting. Our Executive Leadership Team is ultimately responsible for its implementation.The policy aims to foster a culture of openness and accountability in support of our high standards for business integrity. All reports are kept strictly confidential. The process for reporting is guided by this policy. The company monitors reports to ensure compliance with the law and to prevent potential risks related to unethical behavior.All whistleblower reports are reviewed by the Whistleblower Manager and the Chief Legal Compliance Officer. All investigations will be over-seen by an Investigation Group and reported to the Audit Committee.Please refer to our Whistleblower Policy here: Read more Sustainability CommitmentsOur Sustainability Commitments outline our Executive Leadership Teamâs commitments on our material sustainability topics that are not already covered by our policies. These are internal documents that are reviewed annually and are communicated directly to relevant stakeholders, who must implement them.Climate ChangeOur Sustainability Commitment on Climate Change outlines our targets and plans to reach net-zero GHG emissions by 2050, in line with the Paris Agreement and the ambition of limiting global warming to 1.5°C, compared to pre-indus-trial levels. It describes our approach to the decar-bonization of our operations and value chain, cli-mate adaptation and risk management. It also outlines how we strive to enable a low-carbon future through dialogue and advocacy, and how we ensure transparency and responsibility through our data management and reporting. The commitment also outlines the management of our impacts, risks and opportunities across climate change mitigation, adaptation, energy efficiency and renewable energy. Our Chief Operating Officer, Chief Scientific Officer, Executive Vice President of Strategy and Integration, and our Executive Vice President of People and Stakeholder Relations are responsible for its implementation. PollutionOur Sustainability Commitment on Pollution out-lines our actions to prevent pollution throughout our value chain, including the development of products to prevent pollution, and ensuring com-pliance with statutory and legal requirements to monitor and control environmental impacts. It out-lines our approach and the process to continu-ously monitor our use of substances of concern. We continuously identify opportunities for the phase-out, except for enzymes, which have a pos-itive environmental impact and will remain a key component of our business going forward. The commitment describes our management strategy for pollutants and substances of concern, detail-ing their safe return to the environment in strict compliance with all legal and regulatory discharge requirements. Finally, it outlines our processes and systems designed to prevent and manage poten-tial environmental incidents. Our Chief Operating Officer is responsible for its implementation.WaterOur Sustainability Commitment on Water describes our efforts to reduce water use and reuse water, while continuing to manufacture high-quality products in accordance with local water conditions. It also outlines our approach to conducting water risk assessments in our opera-tions and at the water basins close to our produc-tion sites. Our Chief Operating Officer is responsi-ble for its implementation.BiodiversityOur Sustainability Commitment on Biodiversity outlines our endorsement of the global principles outlined in the UN Convention on Biological Diversity (CBD) and the Global Biodiversity Framework (GBF). We ensure that our actions align with the principles of Access and Benefit Sharing (ABS) to prevent biopiracy and promote fair and equitable sharing of benefits, in alignment with the Nagoya Protocol Agreement. It also states our commitment to prevent and mitigate any potential impacts from our operations, to ensure that we try to avoid negatively impacting any biodiversity-sensitive area at or near our sites. We work with our value chain to understand how we can develop partnerships and improve our overall footprint, and we are working towards ena-bling a deforestation-free supply chain. Our Chief Operating Officer, Chief Scientific Officer, Executive Vice President of Strategy and Integration, and our Executive Vice President of People and Stakeholder Relations are responsible for its implementation.WasteOur Sustainability Commitment on Waste outlines our commitment to manage resources and waste in a circular manner. We promote a circular economy across our operations by prioritizing waste genera-tion prevention and promoting reuse, recycling and other recovery methods, and improving the recy-clability of our packaging. Our Chief Operating Officer is responsible for its implementation.Human and Labor RightsOur Sustainability Commitment on Human and Labor Rights outlines our commitment to respect human rights, as defined by the UN Guiding Principles on Business and Human Rights, the International Bill of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the OECD Guidelines for Multinational Enterprises. We outline how we embed human rights across our business and value chain, conduct due diligence and impact assessments, and provide remedy and grievance mechanisms for our employees and external stakeholders. Our Executive Vice President of People and Stakeholder Relations is responsible for its implementation.Responsible SourcingOur Sustainability Commitment on Responsible Sourcing outlines our commitment to source responsibly with high ethical standards and to engage our suppliers to minimize the environmen-tal and social impact of our supply chain. We do this by considering sustainability, quality and com-mercial aspects when selecting our suppliers. It outlines our commitment to the UN Global Compact and its Ten Principles. It requires our busi-ness partners to uphold the standards outlined in our Business partner code of conduct and expects them to apply and promote the same, or equivalent, standards in their value chain. Our Chief Operating Officer is responsible for its implementation.Interests and views of stakeholdersWe are committed to better our world with biol-ogy and creating value for our stakeholders. To deliver on our purpose, we actively engage with our stakeholders on a regular basis to listen and learn. Through ongoing dialogue, we aim to understand their perspectives and needs, which help shape our strategic activities, sustainability efforts and our Double Materiality Assessment. The outcomes of our stakeholder engagement are described across our Sustainability statement and Management Review. We have mapped the relevant sections in the table, where you can find more information. Stakeholder engagement on sustainability mat-ters is governed in accordance with our Sustainability governance and due diligence.StakeholderPurpose of engagement Engagement methodsRead more EmployeesMonitor and improve employee development and well-being, focusing on training and skill devel-opment, fair treatment, remunera-tion, health and safety, and diver-sity, equity and inclusion mattersEngagement surveysIndividual development plans and business targets Daily interactions with colleagues and managersTownhalls with the Executive Leadership Team and Vice PresidentsWorking conditions and human rightsDiversity, equity and inclusionHealth and safetyCustomersDeliver biosolutions that meet customer needs, while enabling a healthier planet and healthier lives. Focus on workers in the value chain and ethical business practicesBusiness meetings Partnerships and alliancesCustomer questionnaires and satisfaction surveysBusiness modelStrategic directionWorkers in our downstream value chainPeople. Planet. Positive.SuppliersEnsure ethical business practices, and collaborate on strategic sus-tainability initiativesRegular dialogueStrategic partnerships and alliancesParticipation in industry associations and industry alliancesContractual obligationsWorkers in our upstream value chainClimate changeBusiness conductInvestorsCommunicate sustainability perfor-mance in a transparent mannerInvestor engagementsSustainability-focused investor calls Investor surveys and questionnaires Reporting and disclosuresMessage from the Chair and the CEODouble Materiality AssessmentRegulatoryauthoritiesEnsure compliance with regulationsEngagement with local and national regulatory bodies to ensure complianceEngagement with industry associationsSustainability governance and due diligenceAssociations, policymakers, foundations, and local communitiesAdvocate for biosolutions, and engage to learn and develop sustainability effortsMemberships of industry associa-tions, alliances, and chambers of commercePublic policy consultations and face-to-face meetings with public authoritiesBilateral engagements and strategic partnerships Regionally based corporate social responsibility activities Business conductClimate changePollutionWaterSustainability governance and due diligenceDouble Materiality AssessmentIn 2024, we conducted a Double Materiality Assessment (DMA) in accordance with the CSRD requirements. The insights gained are important in shaping our future sustainability strategies and initiatives, and they ensure that we continue to make informed decisions that positively impact both our stakeholders and the environment.Our approachWe initiated the DMA process by mapping our value chain, including both upstream and down-stream activities, while considering our global business operations and our relationships. In this process, we considered all the geographical areas where we operate; our facilities and other assets; and distribution channels to cover various inputs and outputs. Additionally, we identified stakehold-ers who are directly involved in or affected by our activities, as well as those interested in our devel-opment and reporting. We interviewed more than 30 external and inter-nal stakeholders to achieve a holistic representa-tion of our business and value chain. Our external stakeholders included investors, customers, suppliers and NGOs. Internally, we engaged with a broad representation of stakeholders across vari-ous departments, functional areas and regions.We created a list of sustainability topics based on research on existing sustainability standards and frameworks such as the European Sustainability Reporting Standards (ESRS), the Sustainability Accounting Standards Board (SASB), and the Global Reporting Initiative (GRI); peer benchmark-ing; and existing internal reports and assessments. During the interviews, subject matter experts identified the positive and negative impacts, risks and opportunities across the sustainability topics and provided a rationale for their scoring. We invited participants to assess and evaluate the materiality of any applicable data points for Novonesis, based on the thresholds defined. The results from these interviews were then calibrated in numerous workshops, involving senior manage-ment and internal experts, to determine overall materiality. The final results of the DMA were approved by the Executive Leadership Team and the Board of Directors.Double Materiality Assessment process:1Mapping our value chain and stakeholders2Creating a list of relevant sustainability topics based on standards and frameworks3Identifying and assessing impacts, risks and opportunities with stakeholders4Receiving approval from the Executive Leadership Team and the Board of DirectorsImpact materiality We assessed actual or potential impacts, whether negative or positive, based on the following criteria:⢠Scale:The magnitude of the impacts on peo-ple and/or the environment⢠Scope:The extent and geographical reach of the impacts, such as the extent of environmen-tal impact or how far-reaching the effects would be on people (e.g., local or global reach)⢠Irremediability:The extent to which impacts can be remediated, e.g., restoring the environ-ment or affected people to their prior state⢠Time horizon and likelihood:Potential impacts are scored based on the expected time frame and probability of their occur-rence. We use a scale from 1â5 with the defini-tions below:Score 1: Short-term â within a reporting periodScore 2:Medium-term â 1â3 yearsScore 3: Long-term â 3â5 yearsScore 4:Very long-term â more than 5 yearsFor potential negative human rights impacts, we pri-oritized the severity of the impact over its likelihood.Financial materiality We assessed inherent risks and opportunities based on their potential to impact our development or financial status. The scoring criteria included:⢠Financial impact:The magnitude of the finan-cial effects, where thresholds for financial materiality were aligned with our risk manage-ment framework⢠Time horizon and likelihood:Assessed using the same methodology as impact materialityDMA resultsA topic is deemed material if at least one material impact, risk or opportunity (IRO) is identified within a specific topic. As an outcome of the assessment, we identified nine topics as material to Novonesis, as shown on the right. This includes five environmental, two social, one governance and one Novonesis-specific topic.We describe each topic, including its impact, risks and opportunities, in the Sustainability statement. Our entity-specific topic, Innovation, relating to both social and environmental matters, is reported in the first part of the Management Review, as it is a cornerstone of our growth and competitiveness, and a key driver of sustainable development.Double materiality overviewOur biosolutions are produced with natural resources, such as agricultural raw materials. We work closely with suppliers to explore joint opportunities and to address the environmental and social impact of our supply chain.We are a leading biosolutions partner with +10,000 employees. With a broad biosolutions toolbox and agile production setup, we can scale biosolutions to meet customer needs, while reducing our environmental footprint.Our biosolutions enable a healthier planet and healthier lives. We help customers enhance profitability, minimize their environmental impact and deliver products that meet consumer needs. E1.3 E2.2 E4.2 E1.1E3.4 E1.4 S2.2 E1.3 E2.4 E3.2 E1.1 E2.5 E2.3 E3.3E1.2E3.1E4.1 E1.1 E3.3 E2.1E5.1I1 G1.2 E5.1 S1.1 S1.3 E4.3 S1.2 E5.2 G1.1 G1.2 I1 S2.1 I3G1.3G1.3 I1 G1.2 I2 G1.4 Positive impact or opportunity Negative impact or risk Environmental Social Governance Innovation (Novonesis-specific) Impacts, risks and opportunitiesOverview of impacts, risks and opportunitiesEnvironmentTopicIRO titleIRO referenceIRO typeIRO descriptionClimate changeDelivering biosolutions for a healthier planet and reducing our emissionsE1.1We are committed to delivering biosolutions that enable a healthier planet with healthier people, while reducing the environ-mental impact of our production and supply chain. We discover, develop and produce biosolutions that drive positive change for our customers across our downstream value chain, saving more carbon emissions than what we generate in the production of our biosolutions. As a production company, we emit greenhouse gases. If we do not take action to decarbonize, our emissions would likely increase as our business grows. However, we are committed to actively decarbonizing our own value chain and operations to improve the resilience of our company. We will achieve our commitments by executing on our climate transition plan, which aims to reduce our Scopes 1, 2 and 3 emissions.Developing biosolutions for alternative fuelsE1.2We are a leading producer of biosolutions for the biofuels industry and play an important role in advancing biofuels. We help enable energy independence from fossil fuels and increase economic output from arable land, biomass and waste residues.Carbon taxation presenting both opportunities and risks E1.3Carbon taxation can help evaluate the costs of the carbon pollution of fossil-based products and incentivize the shift to more sustainable practices and materials. This can create a significant market and growth opportunity for resource-efficient biosolu-tions, which helps address many of the challenges societies face today. While carbon taxation may lead to higher input and costs for Novonesis, we believe the opportunities outweigh the risks.Increasing volatility in energy and raw material pricesE1.4Fluctuations in energy and raw material prices, driven by geopolitical events or crises linked to climate change, may result in potential cost increases. We mitigate this risk by monitoring fluctuations in important raw materials to identify potential risks and take proactive measures. Furthermore, we work on reducing dependencies on critical and single-sourced raw materials and engage with our stakeholders to enhance our supply chain robustness.In most cases, IROs are assessed to have a low impact on the 2024 financial performance and are not expected to significantly affect the financial performance in 2025. If an IRO does have a financial impact on the 2025 performance, details are provided in the IRO tables.OpportunityPositive impactRiskNegative impactEnvironment (continued)TopicIRO titleIRO referenceIRO typeIRO descriptionPollutionReducing pollution for our customers through the use of biosolutionsE2.1Our biosolutions positively impact the operations and end products of our customers across more than 30 industries. Examples include reducing pollution by limiting the need for chemical pesticides and fertilizers in agriculture; reducing energy and waste in raw material processing, such as starch and dairy; and reducing the use of chemicals in laundry detergents. We see a business opportunity to deliver effective pollution-reducing biosolutions for our customers.Using agricultural raw materials may contribute to soil and water pollutionE2.2The use of fertilizers and pesticides in the agricultural value chain can result in nutrient and pesticide pollution of soil and water. This is a challenge we are actively addressing through our innovative biosolutions for agriculture. We rely on agricultural raw materials to produce our biosolutions and acknowledge that our procurement of agricultural raw materials can potentially contribute to soil and water pollution in our upstream value chain.Increasing regulation could impact both costs and productionE2.3There is a potential risk to our operations if wastewater or other waste streams fail to meet regulatory requirements. Increased regulation could also lead to higher costs for improving or expanding water treatment and waste facilities. We continuously invest in improvements to our wastewater treatment facilities, such as using wastewater for cooling in production.Potential spills at production sitesE2.4The potential release of untreated wastewater from production could negatively impact bodies of water and soil around our sites. We take the necessary preventative steps and ensure that our wastewater is treated in accordance with regulatory requirements.Enzymes are respiratory sen-sitizers that are classified as âsubstances of concernâE2.5Enzymes are biodegradable catalysts that speed up or ignite specific reactions and processes. They enable our customers to produce more effectively by using less energy and fewer raw materials, and by reducing waste. Enzymes are respiratory sensi-tizers, and these are classified as âsubstances of concernâ in the EU Chemical Strategy for Sustainability. Therefore, there is a potential risk of increasing regulation, which may impact our business.Environment (continued)TopicIRO titleIRO referenceIRO typeIRO descriptionWaterReducing water consumption and pollution through biosolu-tions for our customersE3.1Many of our biosolutions in textiles and household care enable our customers to reduce their water consumption and improve water quality compared with conventional methods. Our biosolutions also help prevent water pollution by reducing the reliance on chemicals at our customersâ sites or in end products for consumers. For example, our biosolutions reduce pollution by limit-ing the need for chemical pesticides and fertilizers in agriculture, and they reduce the use of chemicals in laundry detergents.Dependent on water for our production processesE3.2We are dependent on the availability of freshwater for our production. Our usage may affect local water resources and aquatic ecosystems. Additionally, the transportation and treatment of water and wastewater can increase our energy consumption and GHG emissions. We have set targets to improve freshwater withdrawal and restore water in areas where water, sanitation and hygiene are a challenge. Water scarcity impacts our production or customersâ manufacturingE3.3There is a risk of water resources around our sites becoming scarce, as water availability is impacted by climate change. We may be faced with limitations on withdrawing sufficient water for production or may alternatively be required to invest in new water technologies, like desalination. In addition, our customers can depend on water for their production, and they could also be impacted by water scarcity. We have set targets to improve freshwater withdrawal and restore water in areas where water, sanitation and hygiene are a challenge. Water consumption in agricultureE3.4Our use of agricultural raw materials contributes to water consumption in the upstream value chain, both in the field and during the processing of these materials. Water usage may affect local water resources. To address these challenges, we engage with suppliers and collaborate with customers in agriculture to spur innovation. Certain biosolutions are designed to help make crops more resilient to climate change, increase crop yields, and reduce the use of fertilizers and pesticides.Environment (continued)TopicIRO titleIRO referenceIRO typeIRO descriptionBiodiversityReducing the need for conventional pesticides in agriculture and antibiotics in animal feedE4.1Our biosolutions help reduce the need for pesticides, antibiotics, and nutrient addition in downstream agriculture of crops and animal husbandry. We see opportunities to expand our business in agriculture, in both existing and emerging markets, to enhance planetary health and to strengthen food systems.Sourcing agricultural raw materials associated with deforestationE4.2We source agricultural raw materials for our production, which may be linked to deforestation. We have set strong require-ments for our suppliers on environmental protection, including deforestation. We are a member of the Roundtable on Sustainable Palm Oil (RSPO) and are working towards ensuring that all our palm oil-derived products sourced are RSPO-certified. We will continue to evaluate the need for certifications across our procurement landscape to mitigate the risk of con-tributing to deforestation and biodiversity loss.Potential spills at production sitesE4.3Untreated wastewater and biomass released could potentially impact local biodiversity. We ensure that the biomass generated is reused appropriately and that our wastewater is treated in accordance with regulatory requirements.WasteApplying biosolutions for effective manufacturing, and adopting innovative packaging solutions to minimize wasteE5.1Biosolutions allow for an efficient use of resources for our customers, thereby reducing waste during the manufacturing pro-cess, as well as reducing materials in the final product. Furthermore, we are actively implementing packaging projects to reduce plastic waste in both our own operations and our downstream value chain. By adopting more efficient packaging solu-tions, we are significantly decreasing the amount of plastic used and discarded.Generating substantial amounts of biomass as a by-productE5.2We generate substantial amounts of biomass as a by-product of our production. This biomass is either used for energy produc-tion or applied as nutrients on agricultural land. There may be a potential negative impact if we do not dispose of the biomass in accordance with regulatory requirements.Social TopicIRO titleIRO referenceIRO typeIRO descriptionOwn workforceCreating an attractive work-place for employeesS1.1We aspire to offer a great workplace with competitive benefits for our employees across all regions to attract and retain top talent.Overlooking critical social issuesS1.2We are dedicated to continuously understanding and assessing issues of social, political, and economic polarization, along with the risks they pose. Upholding our responsibilities is crucial to us, as it reflects our core values and beliefs. Failure to do so could damage our reputation, making us a less desirable workplace and business partner.Handling of enzymes may pose potential safety concerns for workersS1.3We drive and promote a safety-first culture throughout our organization, and educate our employees on safe enzyme-handling processes. Despite these rigorous efforts, there is an extremely low risk of employees experiencing sensitization and respira-tory allergies due to overexposure to enzymes. Our safety procedures adhere to regulatory requirements and comply with any regulatory changes.Workers in our value chainRisk of workers in the value chain being sensitized by handling of enzymesS2.1We drive and promote a safety-first culture throughout our value chain, and educate our customers on safe enzyme-handling processes. Despite these rigorous efforts, there is an extremely low risk of workers at our customer sites experiencing sensiti-zation and respiratory allergies due to very high exposure to enzymes. Thus, we provide ongoing support to help them use our products safely.Risk of suppliers breaching human rightsS2.2Procuring agriculture-based raw materials exposes us to a potential negative impact due to potential breaches of human rights, child labor and forced labor within the agricultural value chain. We have set strong requirements for our suppliers on respect-ing and protecting the human rights of their workers.GovernanceTopicIRO titleIRO referenceIRO typeIRO descriptionBusiness conductEnabling our future success through a thriving corporate culture G1.1As an innovation company, diversity of thought and inclusion of different voices and ideas are crucial to our future success. We are dedicated to fostering an inclusive culture where employees feel valued and are given equal opportunities to realize their potential, and where we succeed together. Protecting our whistleblowersG1.2We have a Whistleblower Hotline, along with a governance framework, to ensure anonymity and provide accessible channels for raising concerns within our operations. We also expect business partners to offer secure and confidential grievance redressal mechanisms.Advocating for the green transitionG1.3Our biosolutions play a vital role in enabling the green transition. Our advocacy and other forms of stakeholder engagement with authorities, policymakers and industry organizations promote healthier lives on a healthier planet.Risk of corruption and unethical practicesG1.4If we fail to adhere to our anti-corruption standards and ethical business practices, the risk of potential financial fines and regulatory sanctions can materialize. Additionally, this could lead to reputational damage. We are committed to conducting business with honesty, fairness, and adherence to responsible and ethical practices. We adhere to these principles by main-taining internal standards, procedures, guidelines and other appropriate measures to ensure awareness of and compliance with these principles.InnovationTopicIRO titleIRO referenceIRO typeIRO descriptionInnovationDeveloping new transforma-tive biosolutions to enable a healthier planet and healthier livesI1Our business is driven by innovation, and, in 2024, we invested close to 11% of our sales in research and development. Our bio-solutions significantly enhance planetary health by optimizing resource efficiency, reducing waste across industries, and ena-bling advancements in biofuels to reduce dependence on fossil fuels in transportation. In addition, introducing innovative food and beverage solutions improves nutrition; extends the shelf life of food; offers unique health benefits; and unlocks alternative protein sources.Classification as a chemical companyI2The lack of biological frameworks in the EU regulation and the classification of respiratory sensitizers, which include enzymes, as a âsubstance of concernâ in the EU Chemical Strategy for Sustainability, make it challenging to assess enzymes fairly, based on their characteristics and contributions to the green transition. This classification presents regulatory risks, impacting the development and reach of our biosolutions. We actively engage with authorities, policymakers and industry organizations to navigate the regulatory landscape and emphasize the positive impact of biosolutions.Failing to introduce new bio-solutions to the market can lead to a loss of market shareI3Innovation is vital for maintaining our competitive advantage. This includes both access to genetic material and the ability to discover, develop and produce biosolutions cost-effectively and at scale. The potential failure to consistently introduce new biosolutions would put market share and opportunities at risk.EU Taxonomy The EU Taxonomy Regulation (EU) 2020/852 is a classification system that encompasses a stand-ard set of definitions for sustainable activities. The aim of the Regulation is to help the EU guide sus-tainable investments by requiring companies to report on the parts of net sales*, capital expendi-tures (CAPEX) and operational expenditures (OPEX) that are associated with environmentally sustainable economic activities.The defined activities are centered around six environmental objectives: Climate change mitiga-tion; climate change adaptation; sustainable use and protection of water and marine resources; transition to a circular economy; pollution preven-tion and control; and protection and restoration of biodiversity and ecosystems.For 2024, all six objectives are in scope for report-ing eligibility, which means that companies must assess whether they have economic activities that are included in the different annexes of the Delegated Acts, and report the eligible proportion of net sales, CAPEX and OPEX. In 2024, all six objectives must now be further assessed for alignment of eligible activities with the Regulation. Alignment is determined by the assessment of compliance with the technical screening criteria, doing no significant harm to any of the other environmental objectives and minimum social safeguards.Despite the positive environmental impact of our biosolutions and our focus on minimizing our envi-ronmental footprint, our core activities do not fall within the current scope of reportable activities as defined in the EU Taxonomy. However, we have screened our non-core activities against the six objectives to identify the proportion of any eligi-ble and potentially aligned activities.We screened the activities listed in the technical annexes under the Delegated Regulations 2021/2139 and 2023/2486, including amendments to Delegated Regulations 2021/2139, as set forth in the Delegated Regulations 2023/2485. This screening included interviews with relevant pro-ject managers, in order to identify any ongoing activities for which Novonesis might be eligible to report. Once eligible activities were identified, a deep dive was performed to assess whether the activities could be considered aligned according to the EU taxonomy standards.Our internal procedures are set up to ensure that no activity is double counted, which means that none of the identified activities contribute to mulitple environmental objectives. Therefore, dis-aggregation of KPIs is not required.Taxonomy-eligibilityBased on our eligibility screening, Novonesisâs eli-gible activities are as follows:⢠CCM/CCA 4.20 - Cogeneration of heat/cool and power from bioenergy: Upgrading biogas to biomethane for use in electricity and dis- trict heating production. New project in 2024, eligible for CAPEX.⢠CCM/CCA 5.4 - Renewal of wastewater col- lection and treatment: Recycling treated wastewater for use in production. Eligible for CAPEX.⢠CCM/CCA 5.9 - Material recovery from non-hazardous waste: Production of biomass. Eligible for CAPEX. ⢠CCM/CCA 7.7 - Acquisition and ownership of buildings: As part of the combination, Novonesis has acquired the lands and build- ings of Chr. Hansen. New project in 2024, eli- gible for CAPEX.⢠CCM 9.1 - Close to market research, develop- ment and innovation: Carbon capture projects. Eligible for OPEX.* The EU Taxonomy Regulation applies the term âturnoverâ. To reflect the terminology used in our financial reporting, we use the term ânet salesâ.Net salesWe identified no relevant eligible net sales. Net sales is defined as net sales included in the con-solidated financial statements for the year 2024. Please see Note 2.2 on Net sales.Capital expenditures (CAPEX)We identified eligible CAPEX of EUR 481.1 million, corresponding to 10.9% of total CAPEX. CAPEX is defined as additions to tangible and intangible assets during the financial year, consid-ered before depreciation, amortisation and any re-measurements, including those resulting from revaluations and impairments, for the relevant financial year and excluding fair value changes. The denominator also includes additions to tangi-ble and intangible assets resulting from business combinations. Goodwill is not considered. Please see Note 3.1 on Goodwill and other intangible assets, and Note 3.2 on Property, plant and equipment.Operational expenditures (OPEX) We identified eligible OPEX of EUR 0.5 million, corresponding to 0.1% of total OPEX.OPEX is defined as direct non-capitalized costs that relate to research and development, building renovation measures, short-term lease, mainte-nance and repair, and any other direct expendi-tures relating to the day-to-day servicing of assets of property, plant and equipment by the undertak-ing or third party to whom activities are out-sourced that are necessary to ensure the contin-ued and effective functioning of such assets.2024Net salesCAPEXOPEXTaxonomy-aligned activities---Taxonomy-eligible, but not Taxonomy-aligned activities-10.9%0.1%Total Taxonomy-eligible activities-10.9%0.1%Taxonomy-non-eligible activities100%89.1%99.9%Net sales2024Substantial contribution criteriaDNSH criteria ('Does Not Significantly Harm')Economic Activities (1)Code (2)Net sales (mEUR)(3)Proportion of net sales (%)(4)Climate Change Mitigation (5)Climate Change Adaptation (6)Water(7)Pollution (8)Circular Economy (9)Biodiversity and Eco-systems (10)Climate Change Mitigation (11)Climate Change Adaptation (12)Water (13)Pollution (14)Circular Economy (15)Biodiversity (16)Minimum Safeguards (17)Proportion of Taxonomy-aligned (A.1.) or -eligible (A.2.) net sales 2023 (18)Category (enabling activity) Category(transitional activity)A. TAXONOMY-ELIGIBLE ACTIVITIESA.1. Environmentally sustainable activities (Taxonomy-aligned)Y;N;N/ELY;N;N/ELY;N;N/ELY;N;N/ELY;N;N/ELY;N;N/ELY/NY/NY/NY/NY/NY/NY/NNet sales of environmentally sustainable activities (Taxonomy-aligned) (A.1) ----------------Of which enabling----------------EOf which transitional------------TA.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)EL;N/ELEL;N/ELEL;N/ELEL;N/ELEL;N/ELEL;N/ELNet sales of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)---------Net sales of Taxonomy-eligible activities (A.1 + A.2)---------B. TAXONOMY-NON-ELIGIBLE ACTIVITIESNet sales of Taxonomy-non-eligible activities3,833.5100%TOTAL3,833.5100%Y: Yes - Taxonomy-eligible and Taxonomy-aligned activity N: No -Taxonomy-eligible but not Taxonomy-aligned activity EL: Eligible - Taxonomy-eligible activity N/EL: Not eligible - Taxonomy-non-eligible activityCapex2024Substantial contribution criteriaDNSH criteria ('Does Not Significantly Harm')Economic Activities (1)Code (2)CAPEX (mEUR)(3)Proportion of CAPEX (%) (4)Climate Change Mitigation (5)Climate Change Adaptation (6)Water(7)Pollution (8)Circular Economy (9)Biodiversity and Eco-systems (10)Climate Change Mitigation (11)Climate Change Adaptation (12)Water (13)Pollution (14)Circular Economy (15)Biodiversity (16)Minimum Safeguards (17)Proportion of Taxonomy- aligned (A.1.) or -eligible (A.2.) CAPEX 2023(18)*Category (enabling activity)(19)Category(transitional activity)(20)A. TAXONOMY-ELIGIBLE ACTIVITIESA.1. CAPEX of environmentally sustainable activities (Taxonomy-aligned)Y;N;N/ELY;N;N/ELY;N;N/ELY;N;N/ELY;N;N/ELY;N;N/ELY/NY/NY/NY/NY/NY/NY/NCAPEX of environmentally sustainable activities (Taxonomy-aligned) (A.1)----------------Of which enabling----------------EOf which transitional-----------TA.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned)EL;N/ELEL;N/ELEL;N/ELEL;N/ELEL;N/ELEL;N/ELCogeneration of heat/cool and power from bioenergyCCM/CCA 4.201.90.1%ELELN/ELN/ELN/ELN/EL-Renewal of wastewater collection and treatmentCCM/CCA 5.4.2.60.01%ELELN/ELN/ELN/ELN/EL2.8%Material recovery from non-hazardous wasteCCM/CCA 5.9. 0.10.01%ELELN/ELN/ELN/ELN/EL0.6%Acquisition and ownership of buildingsCCM/CCA 7.7476.510.8%ELELN/ELN/ELN/ELN/EL-CAPEX of Taxonomy-eligible but not environmentally sus-tainable activities (not Taxonomy-aligned activities) (A.2)481.110.9%10.9%-----3.4%A. CAPEX of Taxonomy-eligible activities (A.1+A.2)481.110.9%10.9%-----3.4%B. TAXONOMY-NON-ELIGIBLE ACTIVITIESCAPEX of Taxonomy-non-eligible activities3,944.589.1%TOTAL4,425.6100%Y: Yes - Taxonomy-eligible and Taxonomy-aligned activity N: No -Taxonomy-eligible but not Taxonomy-aligned activity EL: Eligible - Taxonomy-eligible activity N/EL: Not eligible - Taxonomy-non-eligible activity* In 2024, the aligned activities from 2023 (CCM 5.4 with 1% and CCM 5.9 with 0.6% of total CAPEX) have been reassessed. The 2023 activities are only eligible from 2024, because a more in-depth assessment of compliance with the substantial contribution category has been conducted, concluding that Novonesis does not have the necessary evidence or data to prove compliance with the DNSH criteria for climate change adaptation.Opex2024Substantial contribution criteriaDNSH criteria ('Does Not Significantly Harm')Economic Activities(1)Code (2)OPEX (mEUR)(3)Proportion of OPEX (%) (4)Climate Change Mitigation (5)Climate Change Adaptation (6)Water (7)Pollution (8)Circular Economy (9)Biodiversity and Eco-systems (10)Climate Change Mitigation (11)Climate Change Adaptation (12)Water (13)Pollution (14)Circular Economy (15)Biodiversity (16)Minimum Safeguards (17)Proportion of Taxonomy-aligned (A.1.) or -eligible (A.2.) OPEX 2023 (18)*Category (enabling activity)(19)Category(transitional activity)(20)A. TAXONOMY-ELIGIBLE ACTIVITIESA.1. Environmentally sustainable activities (Taxonomy-aligned)Y;N;N/ELY;N;N/ELY;N;N/ELY;N;N/ELY;N;N/ELY;N;N/ELY/NY/NY/NY/NY/NY/NY/NOPEX of environmentally sustainable activities (Taxonomy-aligned) (A.1) ----------------Of which enabling----------------EOf which transitional-----------TA.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)EL;N/ELEL;N/ELEL;N/ELEL;N/ELEL;N/ELEL;N/ELClose to market research, development and innovationCCM 9.1.0.40.1%ELN/ELN/ELN/ELN/ELN/EL0.1%Renewal of waste water collection and treatmentCCM/CCA 5.4.--------0.1%Nature-based solutions for flood and drought risk prevention and protectionWTR 3.3--------0.2%OPEX of Taxonomy-eligible but not environmentally sus-tainable activities (not Taxonomy-aligned activities) (A.2)0.40.1%0.1%-----0.4%A. OPEX of Taxonomy-eligible activities (A.1+A.2)0.40.1%0.1%-----0.4%B. TAXONOMY-NON-ELIGIBLE ACTIVITIESOPEX of Taxonomy-non-eligible activities427.899.9%TOTAL428.2100%Y: Yes - Taxonomy-eligible and Taxonomy-aligned activity N: No -Taxonomy-eligible but not Taxonomy-aligned activity EL: Eligible - Taxonomy-eligible activity N/EL: Not eligible - Taxonomy-non-eligible activity* In 2024, the aligned activity from 2023 (CCM 5.4 with 0.1% of total OPEX) has been reassessed. The 2023 activity is only eligible from 2024 because a more in-depth assessment of compliance with the substantial contribution category has been conducted, concluding that Novonesis does not have the necessary evidence or data to prove compliance with the DNSH criteria for climate change adaptation. Furthermore, in 2024, as of last year, the material threshold for OPEX is EUR 135,000, and therefore only activity CCM 9.1 is reported as eligible.Climate changeWe aim to build a net-zero future, and climate action is an integral part of our business. We are determined to decouple our companyâs growth from our carbon footprint.As a world-leading biosolutions partner, we provide innovative biosolutions that meet the needs of businesses, consumers and our planet by helping to increase yield and efficiency, and by enabling climate-smart technologies such as biofuels and carbon capture. This reduces the reliance on fossil fuels and supports the transition to a low-carbon society. Our sustainability ambition âPeople. Planet. Positive.â and our decarbonization pathway drive our actions to address climate change mitigation, adaptation, energy efficiency and renewable energy deployment. Our approach to climate is guided by our Sustainability Commitment on Climate Changeand our Sustainability Policy. Read more about the impacts, risks and opportunities for this topichere.Managing climate-related risks Climate change mitigation and adaptation are sig-nificant considerations in our risk assessment for the business. Through our Enterprise Risk Management (ERM) framework and our Double Materiality Assessment (DMA), we identify and address climate-related transitional and physical risks in our operations, supply chain, and in the markets we operate in. To ensure the resiliency of our business and operations, short- and long-term risks are identified, assessed, reported on, and mitigated at different levels of the organization, including the Board of Directors and the Executive Leadership Team. In addition, our investments related to climate mitigation and adaptation are integrated into our financial planning.Through this process, we have identified a transi-tional risk related to carbon taxation that, along with geopolitical tensions and climate change-in-duced events, can impact the price of and access to the raw materials we source for our production. However, carbon taxation can also create a signifi-cant market and growth opportunity for resource-efficient biosolutions. Thus, the diversity of our portfolio, along with our global presence and manufacturing technologies, provides us with resilience, which is needed to consistently procure raw materials and achieve sustainable growth, even amidst volatile market conditions. We have also identified that the most significant physical risks for our production sites are water scarcity and water stress, driven by climate change, as we use freshwater in our production process. We have conducted a scenario analysis to assess how water stress could impact our pro-duction sites. We used the WRIâs Aqueduct tool, and its pessimistic scenario for water stress at the basin level for 2030, to identify sites that are at a high or an extremely high risk of water stress. This scenario is in alignment with Shared Socioeconomic Pathway 3 (SSP3) and Representative Concentration Pathway 8.5 (RCP8.5), and it represents a fragmented world with uneven economic development, higher population growth, lower Gross Domestic Product (GDP) growth, and a lower rate of urbanization, all of which potentially affect water use and availability. We have identified mitigation actions and set targets, as described in our Watersection.Moving forward, scenario analysis will be an integrated part of our broader ERM and DMA processes.Our climate transition plan Our approachWe are committed to high standards and ambi-tious actions and goals to improve our climate footprint across Scopes 1, 2 and 3. We are decar-bonizing our operations and supply chain in line with a science-based pathway to reach net-zero greenhouse gas (GHG) emissions by 2050*. The Taskforce for Climate-related Financial Disclosure (TCFD), the Science Based Targets ini-tative (SBTi) and the GHG protocol have guided and informed the preparation of our Climate change section. Climate is a key material issue for Novonesis, and we are committed to our climate leadership posi-tion. We are committed to a 75% reduction of GHG emissions from our operations (Scopes 1 and 2) and a 35% reduction from our supply chain (Scope 3) by 2030 from a 2018 baseline. By 2025, we aim to reduce absolute GHG emissions from operations across Scopes 1 and 2 by 65% from a 2018 baseline. This would mark a significant achievement in decoupling growth from resource usage, as we have grown our business considera-bly during the same period.Further, we are committed to sourcing 100% renewable electricity by 2025 across our opera-tions, in line with the practices defined by the RE100 initiative.As per the guidelines from the SBTi, in 2024 we integrated our GHG emissions and merged our accounting methodologies. Our 2030 and 2050 tar-gets remain SBTi-validated*, as our base year cov-erage and target boundary are in alignment with the SBTi guidelines and criteria. During 2025, we expect to review our consolidated climate targets.Our targets are developed based on climate sci-ence, aligned with the Intergovernmental Panel on Climate Change (IPCC) scenarios. Our 2030 Scope 1 and 2 GHG emission targets aim to limit global warming to 1.5°C above pre-industrial levels, while our 2030 Scope 3 target is aligned with the goal of limiting temperature rise to well below 2°C, in accordance with the SBTi guide-lines. Our net-zero by 2050 target is aligned with a 1.5°C scenario under the Paris Agreement. Our cli-mate targets do not include GHG removals, car-bon credits or avoided emissions as a means of achieving the GHG emission reduction targets.We have considered future developments that can impact our targets and emissions during the development of our climate transition plan, and we have described our decarbonization levers below. Our climate transition plan has been approved by the Executive Leadership Team, as described in Sustainability governance and due diligence.Our decarbonization levers across Scope 1 and Scope 2 We believe that the cleanest megawatt hour is the one that is never used. Therefore, we strive first and foremost to implement optimization and energy-saving projects to reduce our overall energy consumption, to reuse energy where pos-sible, and, finally, to increase our sourcing of renewable energy.⢠We reduce our energy demand in our produc-tion by implementing optimization and ener-gy-saving projects, while also liberating energy for local communities. This includes projects such as heat recovery from compres-sors, automation and optimization of chiller operations, and replacement of pumps.⢠We have a target to source 100% renewable electricity by 2025. Achieving and maintaining this target after 2025 will be a key lever to reduce our Scope 1 and 2 GHG emissions.⢠After 2025, we will accelerate decarbonization in our operations further by pursuing shifts to low-carbon energy sources. The exploration of decarbonization technologies that will ena-ble us to shift to renewable sources of energy has commenced.* Novonesis commits to reach net-zero GHG emissions across the value chain by 2050 from a 2018 base year. Near-Term Targets: Novonesis commits to: reduce absolute Scope 1 and 2 GHG emissions by 75% by 2030 from a 2018 base year; increase annual sourcing of renewable electricity from 37% in 2018 to 100% by 2025; and reduce absolute Scope 3 GHG emissions from purchased goods and services, fuel and energy-related activities, upstream transportation and distribution, waste generated in operations, and business travel by 35% by 2030 from a 2018 base year. Long-Term Targets: Novonesis commits to: reduce absolute Scope 1 and 2 GHG emissions by 90% by 2050 from a 2018 base year, and reduce absolute Scope 3 GHG emissions from purchased goods and services, fuel and energy-related activities, upstream transportation and distribution, waste generated in operations and business travel by 90% within the same time frame. The target boundary includes biogenic emissions and removals associated with the use of bioenergy.Our decarbonization levers across Scope 3 Scope 3 emissions accounted for approximately 75% of our 2018 baseline emissions. In 2024, we identified the following key levers that set the tra-jectory for our 2030 and net-zero targets:⢠Mobilizing our suppliers on climate action through integrating decarbonization efforts further into our procurement strategies, initiat-ing supplier dialogues, and pushing for renew-able energy transition in our supplier base⢠Executing and leveraging high-impact initia-tives such as low-carbon transportation, switching to low-carbon raw materials, and developing our renewable energy ambitions⢠Continuing to strengthen our foundations across data management, climate embed-ment, and climate capacity building to support our journey to net-zero emissions⢠Exploring technologies, tools and considera-tions that could be critical to driving decar-bonization after 2030 and towards the net-zero horizon.2024 actionsDuring the year, we focused on consolidating and implementing the existing climate transition plans to decarbonize GHG emissions across Scopes 1, 2 and 3. Furthermore, our focus was on establishing a new and updated roadmap for the combined company, including setting a strong data foundation and GHG inventory.In 2024, we successfully reduced our Scope 1, 2 and 3 GHG emissions by 11% from a 2018 baseline, demonstrating our commitment to climate action. Furthermore, we advanced in our decarboniza-tion journey and reduced our combined Scope 1 and 2 GHG emissions by 63%, compared to 2018. This reduction was driven by the signifi-cant increase in the share of renewable sources of electricity, heat and steam and our investments in energy efficiency. We are on track to meet our 2025 target of 65% reduc-tion and our 2030 target of 75% reduction across Scopes 1 and 2.Energy efficiency is an integral component of our climate transition plan, and we have made significant progress across a number of our production sites. At our facilities in China, we have made progress in reducing steam usage, which resulted in an energy saving of 1,250 MWh*. We have also optimized our chiller sys-tems and recovery processes, leading to a reduction in electricity use of more than 556 MWh. Furthermore, we are investing in heat pumps that will allow us to reduce our steam consumption procured from the local utility. This investment is expected to reduce our Scope 1 and 2 emissions by 3.6%, compared to our 2018 baseline.An ongoing project in Denmark involving the optimization of reverse osmosis technology is expected to save more than 6,200 MWh of energy per year beyond its water savings potential, when fully operational and running successfully. We are also optimizing our down-stream processing steps, which is expected to result in electricity savings of 2,600 MWh.In 2024, we sourced 93% of our electricity from renewable sources, and we are on track to achieve our target of sourcing 100% renewable electricity by 2025. We sourced 410,633 MWh of renewable electricity from unbundled sources. In 2024, we sourced renewable elec-tricity for our site in Blair, Nebraska, in the U.S. In addition, we sourced renewable electricity for all our sites in India and improved addition-ality by investing in a group-captive solar pro-ject in India, which became operational in 2024.Our total Scope 3 emissions increased by 8% in 2024, compared to our 2018 baseline. This increase was driven by our purchased goods and services. During the same period, we achieved solid growth in our sales, decoupling our Scope 3 emissions from our overall growth. This was primarily driven by our optimization efforts in operations. Our transition to renewa-ble energy and low-carbon modes of transport reduced our emissions across category 3: Fuel- and energy-related activities, and cate-gory 4: Upstream transportation and distribu-tion, respectively.In 2024, we commenced the development of our climate transition plan. We conducted workshops with colleagues from across our sites to increase our opportunities to manufac-ture more efficiently, while lowering our green-house gas emissions and developing a supplier engagement strategy and framework. Moving forward, we expect to update and optimize our climate transition plan annually.* On average, a Danish family or household uses 4.5 MWh annually. Source: Andel Energi.In 2024, we reduced our Scope 1 and 2 GHG emissions by63%from a 2018 baseline, while delivering solid growth.Energy consumption and mixUnit2024Fuel consumption from coal and coal productsMWh-Fuel consumption from crude oil and petroleum productsMWh5,852Fuel consumption from natural gasMWh332,205Fuel consumption from other fossil sourcesMWh1,076Consumption of purchased or acquired electricity, heat, steam and cooling from fossil sourcesMWh243,015Total fossil energy consumption MWh582,148Fuel consumption from renewable sources, including biomass MWh8,458Consumption of purchased or acquired electricity, heat, steam and cooling from renewable sourcesMWh971,875The consumption of self-generated non-fuel renewable energy MWh334Total renewable energy consumption MWh980,667Consumption from nuclear sourcesMWh14,309Total energy consumptionMWh1,577,124Share of fossil sources in total energy consumption%37Share of consumption from nuclear sources in total energy consumption%1Share of renewable sources in total energy consumption%62Energy intensity MWh/mEUR400Accounting policiesEnergy consumption and mix Total energy consumption and mix metrics include internally and externally generated energy consumption from fossil fuels, nuclear sources and renewable energy sources. The renewable energy percentage is based on a market-based approach, comparing total renewable energy consumption with total energy consumption. Total energy consumption from all sources (fossil, nuclear and renewable) includes all manufacturing and non-manufacturing sites with more than 100 headcount. Reported quantities are based on meter readings and supplier invoices. Internally generated energy is measured as fuel consumption converted to energy, based on the lower of the combustion value and the weight by volume. This is except for the U.S., where the higher of the combustion value is applied, as per legal requirement. Fuel con-sumption is converted to energy using factors supplied by utility providers or local authorities. The energy source mix is categorized according to the type of fuel used: renewable fuel (energy produced from waste) or fossil fuel (including natural gas, fuel oil, and others). Externally generated energy comprises pur-chased electricity, heat, and steam. The energy source mix for electricity is classified into renewable, fossil, and nuclear types based on Power Purchase Agreements (PPAs), Energy Attribute Certificates (EACs), and the 2023 electricity generation source statistics of the International Energy Agency (IEA). Similarly, the energy source mix for dis-trict heating and steam is categorized into renewable, fossil, and nuclear types based on declarations provided by the suppliers.Novonesis is categorized as a company oper-ating in the high climate impact sector, under Regulation (EC) No 1893/2006 of the European Parliament and of the Council, as 100% of our energy consumption is related to these activities. The energy intensity is calculated as the total energy consumption divided by the pro forma revenue figures, stated in million EUR. Read more about our Financial performance here.Greenhouse gas emissionsRetrospectiveMilestones and target yearsUnit20182024202520302050ProgressScope 1Gross Scope 1 GHG emissionstCO2e88,93693,5495%Gross Scope 1 GHG emissions from regulated emission-trading schemes%7%8%14%Scope 2Gross location-based Scope 2 GHG emissionstCO2e440,774351,812(20%)Gross market-based Scope 2 GHG emissionstCO2e400,17988,605(78%)Total Scope 1 and 2 Total Scope 1 and 2 location-based GHG emissionstCO2e529,710445,361(16%)Total Scope 1 and 2 market-based GHG emissionstCO2e489,115182,154(65%)(75%)(100%)(63%)Scope 3Total gross Scope 3 GHG emissionstCO2e1,303,2371,405,943(35%)(100%)8%Significant Scope 3 categoriesCategory 1: Purchased goods and servicestCO2e1,002,2931,139,14614%Category 3: Fuel and energy-related activities (not included in Scope 1 or Scope 2)tCO2e108,17192,135(15%)Category 4: Upstream transportation and distributiontCO2e155,795143,299(8%)Category 5: Waste generated in operationstCO2e17,56710,547(40%)Category 6: Business traveltCO2e19,41020,8177%Total Scope 1, 2 and 3 GHG emissionsTotal location-based Scope 1, 2 and 3 GHG emissionstCO2e1,832,9471,851,3041%Total market-based Scope 1, 2 and 3 GHG emissionstCO2e1,792,3521,588,097(11%)GHG intensityTotal location-based GHG intensitytCO2e/mEUR469Total market-based GHG intensitytCO2e/mEUR403The accounting of biogenic CO2emissions follows the CSRD and the GHG Protocol. In 2018, Scope 1 biogenic CO2emissions were 178,418 tCO2. In 2024, they amounted to 171,250 tCO2. In 2018, the location-based Scope 2 biogenic CO2emissions were 41,955 tCO2, and in 2024 they amounted to 85,708 tCO2. Lastly in 2018, the market-based Scope 2 biogenic CO2emissions were 21,807 tCO2, and in 2024 they amounted to 81,102 tCO2.In Scope 3, Novonesis has included 0% primary data obtained from suppliers or other value chain partners. In this context, we consider only Scope 3 emissions calculated with supplier-specific emission factors as primary data. We are embarking on a journey to obtain and integrate supplier-specific emission factors.Accounting policiesScope 1, 2, 3 and total GHG emissionsAll greenhouse gas (GHG) emissions are reported in accordance with the Greenhouse Gas Protocol, following the same consolidation principles as the financial statements. GHG emissions are calcu-lated by multiplying consumption and activity data with the relevant emission factors. When activity and consumption data are not available, extrapola-tions are performed to calculate emissions from company cars in Scopes 1 and 2, and in Scope 3 category 1 and category 4. Scope 1 emissions are calculated based on con-sumption data. The emission factors are from the UK Department for Environment, Food & Rural Affairs (UK DEFRA), the US Environmental Protection Agency (US EPA), the EU Commission (for climate-friendly alternatives to HFCs, industrial refrigerators), and the Danish Energy Agency (DEA). Company car-related emissions are calcu-lated based on a combination of fuel- and dis-tance-based methods. Scope 1 biogenic CO2 emissions are reported sep-arately, covering fermentation and wastewater treatment. The emissions from fermentation are calculated by multiplying aerobic fermentation vol-umes, which are estimated based on sales data, with internally developed emission factors. Wastewater emissions are estimated based on the UNFCCC methodology using wastewater volumes and chemical oxygen demand content. Scope 2 is reported according to both the mar-ket-based approach, which includes the Energy Attribute Certificates, and the location-based approach. The emission factor sources are the UK DEFRA, the International Energy Agency (IEA), the Association of Issuing Bodies (AIB), the US EPA eGRID, the DEA, and supplier-specific information. Scope 2 biogenic CO2 emissions are reported sep-arately and cover the combustion of biofuels used by energy providers. The biogenic CO2emissions related to electricity are reported according to both market-based and location-based approaches. The emission factors are sourced from Ecoinvent and the IEA. Scope 3 emissions include GHG emissions from categories that are significant for Novonesis. We identified five material categories for Scope 3, which collectively constitute more than 90% of our complete Scope 3 inventory.Scope 3 category 1 includes all upstream, cradle-to-gate GHG emissions from purchased goods and services. This covers both our direct and indi-rect spend. Direct spend includes, but is not lim-ited to, agricultural materials, chemicals and pack-aging materials. Indirect spend covers goods and services supporting the business, such as facility management, IT and consulting. A hierarchy for selecting the most accurate emission factor is applied, following the order of supplier-specific, quantity-based (Ecoinvent cut-off, Agri-footprint, and other literature sources), and spend-based (Exiobase). Supplier-specific emission factors are not relevant for the financial year 2024. Scope 3 category 3 includes the GHG emissions related to the production of fuels and energy con-sumed by Novonesis across all sites in scope, as well as grid loss for grid-supplied energy. The emissions are calculated using the location-based approach, with emission factors from UK DEFRA and the IEA.Scope 3 category 4, upstream transportation and distribution, includes GHG emissions related to all intercompany and customer deliveries, paid by Novonesis. The GHG emissions are calculated using a distance-based approach. The calculations are validated and adjusted with route- and material-specific uplifts, based on expertise and experience. We use well-to-wheel emission factors from UK DEFRA.Scope 3 category 5, waste generated in opera-tions, is calculated reflecting both the treatment and waste type. The emission factor sources are UK DEFRA and Ecoinvent. Scope 3 category 6, business travel, is calculated by the travel agencies used by Novonesis and is based on supplier-specific data on distance trave-led and UK DEFRA emission factors. The GHG intensity is calculated as the total GHG consumption divided by the proforma revenue fig-ures, stated in EUR million. Read more about our Financial performance here.Contractual instruments for energy consumption are assessed annually, both in terms of types of contracts (PPAs, EACs and Guarantees of Origin) and whether the energy is bundled or unbundled with attributes. The percentages are calculated based on the MWh as per the contracts covering our energy consumption.PollutionOur biosolutions help prevent water and soil pollution by reducing reliance on fossil fuels and hazardous chemicals, thereby minimizing environmental damage for our customers across various industries such as agriculture, dairy, food, textiles and detergents. Compliance with environmental regulations is a prerequisite for conducting our business. We are dedicated to upholding all national and local environmental and pollution regulations, ensuring high standards for environmental management across our operations, including pollution prevention measures.Our approach to pollution is guided by our Sustainability Commitment on Pollutionand our Sustainability Policy.Read more about the impacts, risks and opportunities for this topic here.Our approachOur biosolutions reduce pollution Our biosolutions help reduce the environmental impacts for our customers and end consumers, as they make processes more efficient and reduce the use of energy and chemical inputs. In some applications and industries, our biosolutions are recognized as âBest Available Technologyâ under the EU Industrial Emissions Directive.Despite the positive environmental impact of our biosolutions and our focus on minimizing our envi-ronmental footprint, respiratory sensitizers, which include enzymes, a key component of our business, are identified as âsubstances of concernâ in the EU Chemical Strategy for Sustainability. This classifica-tion is based on enzymesâ potential to cause res-piratory sensitization for workers in manufacturing who may be exposed to very high enzyme concen-trations. However, enzymes do not pose a risk to consumers, as evidenced by their long-proven his-tory of biodegradability and safe use in consumer products. We continuously work to improve the safety standards for workers handling enzymes across our operations and value chain, in collabora-tion with industry peers and associations such as the Association of Manufacturers and Formulators of Enzyme Products (AMFEP) and the American Cleaning Institute (ACI).Mitigating pollution from our operations and supply chainThe potential impact of our operations on pollu-tion is mainly derived from wastewater discharge and the generation of nutrient-rich biomass resi-due, which is returned to the environment as compost and fertilizer. For more details, read our section on Waste. We strictly adhere to all requirements for the release of wastewater and biomass into the envi-ronment. Our environmental management system, operated by our Corporate Safety and Environment function, is fundamental in our work to manage the potential impacts across water and soil pollution. If an environmental incident should occur, we will manage the situation promptly, report it to authorities as required, and take ade-quate action to prevent potential incidents in the future. For more details, please read our Sustainability governance and due diligencesection.We require our business partners and suppliers to operate responsibly and in compliance with all legal requirements. Our biosolutions are produced with natural resources, and we source agricultural raw materials, which can contribute to the use and intensification of land and other environmental impacts through cultivation and agricultural prac-tices. To mitigate these impacts, our suppliers are required to adhere to our Business partner code of conduct, which includes requirements on air, noise, water, land and odor pollution. 2024 actionsDuring the year, two new wastewater treatment plants were installed at one of our production sites in India, to ensure compliance with legal requirements. The processed wastewater is treated in a new biological wastewater treat-ment plant, followed by treatment in a reverse osmosis plant. The treated water is then recy-cled as feed water for cooling towers. This facility is currently in the commissioning phase and is expected to be fully operational by early 2025. Additionally, a new treatment plant for sanitary wastewater was installed and is already in operation. We have also assessed the use of substances of concern in our production process and iden-tified eight substances as pertinent. We will continue to ensure that we adhere to the legal requirements for using substances of concern. We continuously monitor our use of substances of concern and identify opportunities for their phase-out, except for enzymes, which have a positive environmental impact and will remain a key component of our business going forward. This year, we identified pollutants that caused emissions to water and soil from our wastewa-ter and biomass waste generated in produc-tion. We ensured that the biomass generated is used appropriately and that are our wastewater is treated in accordance with regulatory requirements. Emissions to waterUnit2024Nitrogentonnes636Phosphorustonnes127Emissions to soilUnit2024Nitrogentonnes2,267Phosphorustonnes1,062Accounting policiesPollution to water and soil from nitrogen and phosphorus is calculated based on the measurement of pollutants in waste-water and waste biomass with end use in agriculture. Only production sites with fermentation or rennet processes are included. Extrapolations have been made for some sites to estimate full-year data. Air pollutants are not material. Substances of Concern ProcuredUsed during productionGeneratedLeft facilities as emissionsLeft facilities as productsLeft facilities as part of productsHazard statement code* Unit202420242024202420242024H317tonnes781297---484H334**tonnes297297----H361tonnes1--1--H372tonnes1--1--H373tonnes483--483--H410tonnes160--160--H411tonnes6,4246,395-1-28H412tonnes7,0143,618-3,383-13Totaltonnes15,16110,607-4,029-525* Hazard Class and Category Code(s) can be found in Regulation (EC) No 1272/2008 of the European Parliament and of the Council.** Enzymes are excluded from reporting and are not included in the reported numbers.Accounting policiesSubstances of concernUse of substances of concern (SoCs) is based on the assessment of raw materi-als used in our main production sites in Denmark. To calculate consolidated amounts used globally, the raw materials used in Denmark are extrapolated based on global consumption of raw materials. Enzymes procured, generated, used in the production and leaving our facilities are excluded from reporting. SoCs in products are calculated based on pro-duction and sales data. SoCs in emissions are estimated based on a high-level eval-uation of whether the SoCs are trans-formed during fermentation, or whether they are not biodegradable and thus end up in emissions. SoCs are reported based on the hazard statement code.WaterWater stewardship is essential for our operations. We use water for fermentation, as a coolant, a solvent, a cleaning agent and as a component of our final products. Additionally, many of the raw materials required in our operations are agricultural commodities and depend on water for production.Our biosolutions help prevent water pollution by reducing the need for chemicals and enable our customers to reduce their water consumption, compared with conventional methods in industries such as household care and textiles. Read more about the impacts, risks and opportunities for this topic here.Our approachOur water stewardship approach is based on sci-ence, and our ambition is to manage water in bal-ance with local conditions. We are committed to achieving overall water security by preserving water as a resource, addressing water challenges through biosolutions, and collaborating with com-munities to take collective action. Our approach to water is guided by our Sustainability Commitment on Waterand our Sustainability Policy.In our operations, we aim to reduce the use of freshwater by implementing recycling and water efficiency projects, while ensuring compliance with local regulations. We have targets to improve freshwater withdrawal by saving or recycling 8% more water by 2025, 15% more by 2030 and 20% more by 2035, compared with a 2021 baseline. In addition, we drive collective action with local communities and organizations to address poten-tial challenges with the water bodies we source from. In areas near our operations where water, sanitation and hygiene (WASH) are significantly challenged, we aim to restore 10 billion liters of water by 2025 and 30 billion liters of water by 2030, from a 2021 baseline.In accordance with the Water Framework Directive, consideration of the status of water bod-ies is important for direct discharges to water bod-ies within the EU. In the EU, Novonesis discharges its wastewater to municipal wastewater treatment plants, and is therefore not directly affected by the water plans associated with the directive.2024 actionsWe conducted an annual water risk assess-ment using the World Resource Instituteâs Aqueduct Water Risk Atlas. We used a pessi-mistic scenario for water stress at the basin level for the year 2030. In 2024, six of our pro-duction sites and offices were situated in areas with high or extremely high risk of water stress. All production and other sites with more than 100 headcount are included in our targets and actions reported in this section.In recent years, we have developed con-text-based water management plans for all of our production sites in legacy Novozymes. These plans were developed in partnership with external water experts and are based on site-specific risks and opportunities. The plans contain actions to improve the balance of nearby water bodies and address site-specific challenges related to scarcity, quality, and evolving regulations. In 2024, the production sites identified to be near areas of high or extremely high risk of water stress had context-based water management plans. Moving forward, we will review our approach to contextual water management for Novonesis. We continued our efforts to implement water recycling and efficiency projects. At our site in Kalundborg, Denmark, we continued an ongo-ing nanofiltration and reverse osmosis project focusing on water recycling. The installed sys-tem has an estimated annual water saving potential of 200,000-300,000 m3, and it will also deliver energy savings, while increasing our production capacity. We also continued to work on other water recycling projects at our sites in the U.S. and China. Each project has an expected water recycling capacity of 100,000-200,000 m3and is key to bringing us closer to our target of real-izing freshwater recycling and saving of 8% by 2025. These projects will become operational in 2025.We recycled and saved 330,727 m3of water through recycling and water saving projects. This represents a 3.2% increase in water recycling and/or savings compared with total freshwater withdrawal in 2021, bringing us closer to our 2025 target.Since 2020, we have engaged in the Novonesis Water Opulence (NOWO) project near our Patalganga site in India, which aims to enhance water availability and mitigate WASH chal-lenges for the local basin. To date, the project has benefited approximately 3,100 people across five villages. In 2024, we worked on expanding the water distribution network to ensure the availability of water to nearby vil-lages. This project successfully restored 5,400,000 m3of water this year. Since 2021, we have restored 14,520,000 m3(14.52 billion lit-ers), already reaching our target to restore 10 billion liters of water by 2025. Moving forward, we will continue working on water efficiency and recycling by exploring technologies, conducting basin assessments, and improving our water data collection. Water consumption, withdrawal and dischargeUnit2024Total water withdrawal m310,469,560Total water dischargem38,539,937Total water consumptionm31,929,623Total water consumption in areas at water risk, including areas of high-water stress m3562,422Total water recycled and reusedm3330,727Water intensity m3/mEUR489Accounting policiesFreshwater target Freshwater is defined as naturally occurring water that is not salty. Projects included in the target must be implemented after 2021, and they should reduce freshwater withdrawal and improve water efficiency. The target is assessed as a percentage of annual savings from all pro-jects during the fiscal year compared to the water withdrawal recorded in our base year.Water, Sanitation and Hygiene (WASH) targetWater restoration aims to improve water availa-bility and address local water basin risks through activities such as building loose boulder struc-tures and gabion bunds, checking dams, and recharging trenches. We assess our progress toward the target by summing the total amount of water restored since our base year in 2021.Water consumption, withdrawal, discharge, recycling and reuseTotal water consumption is the amount of water consumed within our production sites and other sites with more than 100 headcount, and which is not discharged back to the envi-ronment or a third party. Total water withdrawal is the sum of all water drawn into the boundaries of Novonesis from all sources. The reported quantities are stated based on the metered water intake and include quantities withdrawn at production sites and other sites with more than 100 headcount. The reported quantities of steam are converted to volumes of running water and are subject to calculations. Total water discharge is measured as the vol-ume discharged by Novonesis or, when meas-urements are not available, calculations are made based on water withdrawal.Total water consumption in areas at water risk refers to water consumption at our sites located in areas of high and extremely high water risk. These sites are identified annually, based on WRIâs Aqueduct tool 4.0 methodol-ogy. The threshold for sites in areas at water risk is set at medium-high.Total water recycled and reused is defined fol-lowing the ESRS definition; additionally it includes freshwater savings from related pro-jects. Calculations are based on the annual sav-ings in each fiscal year from all projects improving freshwater withdrawal.Water intensity is calculated as the total water consumption divided by the proforma revenue figures, stated in million EUR. Read more about our Financial performance here.Biodiversity Our biosolutions are based on natureâs own microorganisms. As a business based on biology, we interact with nature and biodiversity in various stages and activities across innovation, operations and product application. We are committed to upholding the globally recognized principles of the UN Convention on Biological Diversity and the Global Biodiversity Framework. We ensure that our actions align with the principles of Access and Benefit Sharing (ABS) to prevent biopiracy and promote fair and equitable sharing of benefits, in alignment with the Nagoya Protocol Agreement. We aim to respect local biodiversity by ensuring no negative impact on biodiversity-sensitive areas near our sites. Our biosolutions help reduce the pressures on biodiversity, such as climate impact, resource use and pollution for our customers, consumers and our planet. Read more about the impacts, risks and opportunities for this topic here.Our approachOur approach to biodiversity is guided by our Sustainability Policy, and our Sustainability Commitments on Biodiversity, Climate Changeand Pollution.We closely follow the developments in biodiver-sity at international and regional forums, and regu-larly assess how to incorporate best practices into our operations. We actively engage with external stakeholders on innovation and biological resources at forums such as the annual Conference of Parties (COP) of the UN Convention on Biological Diversity.We operate according to local legislations and ensure that we have the relevant environmental permits in place for all production sites. As part of our environmental management system, we have internal procedures on how to consume water and dispose of wastewater, and we address pollution levels and biomass distribution. These efforts help address any potential impacts from waste streams or potential environmental incidents.We have a Business partner code of conductin place that requires our suppliers not to contribute to deforestation or pollution, and we have a Sustainability Commitment on Responsible Purchasingthat ensures sustainable procurement practices. These risks, associated with the sourc-ing of agricultural raw materials for our operations, are important to address, as they may be linked with deforestation, soil pollution and other envi-ronmental impacts. Our approaches, actions and metrics related to Pollution, Wasteand Waterare described in the respective sections. 2024 actionsIn 2024, we developed our biodiversity assess-ment methodology to build a stronger founda-tion for future activities at and around our sites. We initiated the development of a biodiver-sity risk analysis framework to identify and assess priority sites, based on the parameters of location, activities and environmental per-formance. We therefore conducted an assessment with the assistance of interna-tional databases to understand our proximity to biodiversity-sensitive areas, and we iden-tifed that 26 of our sites are located within five kilometers of a biodiversity-sensitive area. We developed a methodology for biodi-versity assessments that we will pilot in the future. With the learnings from pilots and our existing assessments, we aim to develop a roadmap for conducting risk-based and site-specific biodiversity assessments and mitigation plans as needed.We acknowledge the importance of fighting deforestation and biodiversity loss across the value chain. We are a member of the Roundtable on Sustainable Palm Oil (RSPO) and are working towards ensuring that all sourced palm oil-derived products are RSPO-certified. This certification ensures sustainable palm oil production that helps halt deforesta-tion and ensures no harm to endangered spe-cies. In 2023, we received our first RSPO Supply Chain Mass Balance (MB) certification in Denmark, and, in 2024, our Franklinton site was RSPO Supply Chain MB certified. We will continue to address deforestation across our value chain and monitor evolving regulatory requirements such as the EU Deforestation Regulation. Accounting policiesKey biodiversity areas within a five-kilome-ter radius of Novonesis are identified using the Integrated Biodiversity Assessment Tool methodology (IBAT), which covers all sites with more than 100 headcount. The Integrated Biodiversity Assessment Tool methodology (IBAT) is available here: Read more WasteWe are committed to managing resources and waste in a circular manner throughout our organization. We implement site-specific waste management initiatives, make our packaging more circular, and manufacture and innovate biosolutions that help our customers reduce waste in their operations.Read more about the impacts, risks and opportunities for this topic here.Our approachResponsible packaging and waste management are key for us to reduce the environmental impact of our operations. We are therefore committed to ensuring zero waste to landfill from our operations by 2030, and to continue to manage 100% of our biomass in a circular manner. In addition to this, we have a target of having three key circular packaging projects implemented by 2030.Our Sustainability Commitment on Wasteoutlines how we manage circularity in our waste streams.Guided by our target of achieving zero waste to landfill by 2030, we are working with zero-waste plans for all material sites. Most of the waste gen-erated during the production of our biosolutions is biomass. Our biomass waste is generated from fermentation, and includes eluate, filter cake, and surplus sludge from internal wastewater treatment facilities. Our biomass is used as a raw material in other applications, such as for biogas production or as compost or fertilizer in agriculture. Our non-biomass waste is either subject to recy-cling, reuse, and other recovery or incineration, or sent to a landfill, depending on its nature. We actively work with relevant partners across our regions to explore opportunities to manage waste locally and to ensure compliance with all applicable regulations. Our operations have dedicated resources in the Corporate Safety and Environment function to ensure the implementation of our target. We aim to minimize the waste generated by our packaging materials, and we have a target of imple-menting three key circular packaging projects by 2030. We have a dedicated team of packaging spe-cialists, who identify projects for our target that can improve the circularity or reduce the plastic con-tent in our packaging materials. We strive to use less virgin plastic wherever possible, and we have processes established to assess new materials on specific recyclability and reusability criteria before they are approved for biosolutions packaging.2024 actionsIn 2024, 100% of the biomass waste pro-duced was managed in a circular manner. The non-biomass waste recycling rate was 83%, while 17% was sent to landfill or incineration without energy recovery. Total waste gener-ated was 831,563 tonnes. In 2024, we worked with a third party to develop an energy recovery and reuse option for waste streams, such as filter pads, and manifested liquid waste, with potential impact in 2026-2027. This will increase our recycling rate at the respective sites and contribute towards reducing waste to landfill. In addition, we piloted and identified a partner who will offtake the non-biodegradable dust gener-ated from our production, starting from mid-2025. This will reduce the amount of granula-tion dust currently landfilled by an estimated 40 tonnes per year. We also engaged with our customers to meet our targets for circular packaging effectively.We will continue to focus on circular manage-ment of our waste to achieve our targets. This includes completing the development of zero-waste plans for all our remaining material sites, which will help us identify suitable actions and initiatives to achieve our zero-waste target. We will also maintain our focus on achieving 100% circularity of our biomass. In addition, we will continue our work on converting our pack-aging to reduce the usage of virgin plastic.Total wasteUnit2024Total amount of waste generatedtonnes831,563Total amount of non-recycled wastetonnes821,164Percentage of non-recycled waste*%98.7Percentage of circular waste%99.6Percentage of non-circular waste%0.4* Please note that 99% of non-recycled waste is biomass, which is subject to recovery and reuse treatment. This is not classified as recycled according to ESRS; however, this waste treatment is 100% circular.Total waste by disposal method 2024Biomass used in agriculture59%Biomass used in biogas facilities38.6%Non-biomass recycling1%Non-biomass other recovery waste1%Non-biomass landfill and incineration without energy recovery0.4%Total waste by type and disposal methodUnit2024Hazardous wasteTotal hazardous waste diverted from disposaltonnes2,716Due to preparation for reusetonnes-Due to recyclingtonnes96Due to other recovery operationstonnes2,620Total hazardous waste directed to disposaltonnes114Directed to disposal by incinerationtonnes83Directed to disposal by landfillingtonnes28Directed to disposal by other disposal operationstonnes3Total amount of hazardous waste generatedtonnes2,830Non-hazardous wasteTotal non-hazardous waste diverted from disposaltonnes825,345Due to preparation for reusetonnes489,247Due to recyclingtonnes10,303Due to other recovery operationstonnes325,795Total non-hazardous waste directed to disposaltonnes3,388Directed to disposal by incinerationtonnes11Directed to disposal by landfillingtonnes3,141Directed to disposal by other disposal operationstonnes236Total amount of non-hazardous waste generatedtonnes828,733Accounting policiesTotal wasteTotal waste consists of biomass and non-bio-mass. Biomass is generated from fermenta-tion, and includes eluate, filter cake, and sur-plus sludge from internal wastewater treatment facilities. Biomass is measured or calculated by volume or weight produced. All other waste generated from our operations is classified as non-biomass. Total waste is the registered volume of waste, categorized into hazardous and non-hazardous waste. Hazardous waste is defined and classified based on country-specific regulations. All waste treatment types are reported based on the information provided by suppliersâ waste reports. If suppliers are unable to provide the actual treatment details of collected waste, the waste is reported according to coun-try-specific waste-sorting regulations.Circular and non-circular wasteCircular waste is the total quantity of waste sent to recycling, reuse and other recovery treatment. Non-circular waste is the total quantity of waste sent to landfill, incineration without energy recovery and other disposal. Non-recycled waste is the waste not recy-cled. This includes non-circular waste plus a major part of circular waste sent for reuse and other recovery treatment.Zero waste to landfill targetThe target is assessed as the percentage of non-biomass waste that is sent to landfill or is incinerated without energy recovery com-pared to the total non-biomass waste.Maintain circular handling of biomass wasteThe target is assessed as the percentage of our circular biomass waste compared to the total biomass waste. Please see above for what is considered circular and non-circular waste. Working conditions and human rightsOur employees are vital to our future success, and we are committed to fostering an inclusive and diverse organization where all employees can thrive. We take responsibility for upholding proper labor practices and ensuring respect for human rights both within our organization and throughout our value chain. We provide benefits to our employees, ensuring equity across all regions, in an effort to remain an attractive employer. Our approach to working conditions and human rights is guided by our Sustainability Commitment on Human and Labor Rightsand our Sustainability Policy.Read more about the impacts, risks and opportunities for this topic here.Our approachWe are committed to respecting human and labor rights, as defined in the UN Guiding Principles on Business and Human Rights, the International Bill of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the OECD Guidelines for Multinational Enterprises. We publish annually a statement required by the UK Modern Slavery Act and the Canadian Supply Chain Act. We have implemented a unified management approach and reporting structure for labor practices and human rights. Our People and Organization (P&O) function collaborates with our people leaders to ensure equal rights for all employees.We have integrated human rights into our opera-tional policies and procedures; we conduct due diligence and impact assessments in countries where we operate; and we offer grievance mech-anisms. This is facilitated through our externally hosted Whistleblower Hotline, which is available to both internal and external stakeholders. The hot-line allows people to report concerns safely and without fear of retaliation, ensuring fair treatment and resolution. Whistleblower reports are logged, monitored and analyzed to identify trends and areas of concern, with summaries presented to the Audit Committee. We have conducted awareness cam-paigns for the Whistleblower Hotline across the entire company and will explore options for assess-ing employee awareness of and trust in the Hotline. Read more about the Whistleblower Hotline here.We use the Supplier Ethical Data Exchange (Sedex) platform to engage with our suppliers and customers to ensure ethical and responsible prac-tices. All our production sites regularly complete self-assessment questionnaires, and some of our sites have undergone third-party Sedex Members Ethical Trade Audit (SMETA) audits. These assess-ments focus on understanding and preventing unsafe working conditions, overwork, discrimina-tion, low pay, and forced labor. They help us better understand and prevent potential negative effects among our workforce.We provide or help to provide appropriate reme-diation to harmed individuals, workers and local communities, in situations where we have identi-fied that we have caused or contributed to nega-tive impacts, through the relevant judicial and non-judicial mechanisms.We are committed to providing equal opportunities and preventing discrimination within our global organization. This commitment extends to all aspects, including age, sex, gender identity, race, national origin, ethnicity, disability, education, sexual orientation, social origin, and political and religious beliefs. Consequently, we have internally estab-lished a global non-discrimination and anti-harass-ment policy. We recognize and respect our work-ersâ right to fair compensation, to form and join unions and associations, and to bargain collectively.2024 actionsWe prioritize the well-being and professional development of our employees. In 2024, to support the ongoing integration work, we introduced a monthly employee engagement survey, and we established a network of change agents across our company to enable all our employees globally to share their thoughts, concerns and ideas instantly and confidentially. These important insights are shared with leaders across the organization and with our Executive Leadership Team. This year, we achieved an engagement rate of over8.2 in our employee engagement survey. It is the responsibility of managers to discuss and act on the survey findings with their teams, while the Head of People and Organization ensures that leaders are empow-ered to play an active role in this process. Moving forward, these engagement surveys will be conducted every quarter.This year, we conducted an assessment of the wages and compensation of our work-force. We confirmed that all our employees are receiving adequate wages and compen-sation globally. As a responsible corporate citizen, we recog-nize our role in seeking to prevent or mitigate adverse human rights impacts, not just in operations but also through our business rela-tionships. In 2024, there were 29 cases of dis-crimination, including harassment, reported. Each case has been investigated and, if sub-stantiated, necessary actions have been taken to address the concerns raised. In 2024, in accordance with our commitment to the United Nations Guiding Principles (UNGP) on business and human rights, we conducted a human rights impact assess-ment, with a focus on integrating human rights into our global policies and governance. During this assessment, we concluded that we have strong policies and procedures in place to address any human rights issues raised or reported.We will continue to uphold human rights by strengthening our existing processes and integrating our approach to assess and miti-gate human rights risks within our own global workforce. Incidents, complaints and severe human rights impactsUnit2024Reported incidents of discrimination, including harassmentNo.29Reported complaints on other social/human rights matters, excluding the cases reported aboveNo.8Severe human rights issues and incidents connected with own workforceNo.-Fines, penalties, and compensation for incidents, complaints and severe human rights issues and incidents connected to own workforceEUR-Collective bargaining coverage and social dialogue Collective bargainingSocial dialogueCoverage Rate (%)*Employees (European Economic Area) Workplace representation (European Economic Area)38DenmarkN/A66N/ADenmark* Table presents only the information from relevant countries where Novonesis has at least 50 employees, representing at least 10% of the total number of our employeesAccounting policiesIncidents, complaints and severe human rights impactsThe number of incidents and complaints includes all cases reported through our Whistleblower Hotline, P&O managers, and cases collected via the internal litigation reporting process. The number of complaints and incidents of discrimination includes the total number of cases reported, which are not necessarily substantiated. The number of cases reported under severe human rights violations includes only the sub-stantiated incidents where the fact of the inci-dent is not disputed by Novonesis. Fines, penalties and compensation resulting from the incidents are recorded as expenses in EUR incurred in the financial year, which can be reliably estimated. Collective bargaining and social dialogueThe coverage includes the European Economic Area (EEA) countries. The only country in scope within the EEA is Denmark, as it represents a minimum of 10% of all our employees at the end of the reporting period. This is calculated as a percentage of employ-ees in Denmark covered by a collective bar-gaining agreement or worker representative. Adequate wageAdequate wage legislation has been estab-lished to promote statutory minimum wages globally and to improve working and living conditions for employees. All active Novonesis employees, except for students and those on learning schemes, are included in the ade-quate wage analysis. We have used Eurostatâs âStructure of Earningsâ report for European countries and the International Labour Organizationâs (ILO) âGlobal Wage Reportâ for the rest of the world to benchmark employee wages.Number of employees by contract type, broken down by genderEmployees by contract typeMaleFemaleOtherNot disclosedTotalNumber of permanent employees5,9424,07531010,030Number of temporary employees220220-1441Number of non-guaranteed hours employees4368--111Number of employees6,2054,36331110,582Employee turnoverUnit2024Rate of employee turnover%12.4Total number of employees who have left Novonesis No.1,301The employee turnover was impacted by the combination of Novozymes and Chr. Hansen into Novonesis. Number of employees per countryCountry*Number of employees (headcount)Denmark4,645U.S.1,881China1,056* Table presents only the information from relevant countries where Novonesis has at least 50 employees, representing at least 10% of the total number of our employees.Accounting policiesCharacteristics of Novonesis employeesAll active employees directly on Novonesisâ payroll are included, except for external and contingent workers. Our workforce is characterized by permanent employees with no contract end date; tempo-rary employees with a specified contract end date; and employees with non-guaranteed hours where the contract does not guarantee a fixed number of hours.Employees are reported at the end of the reporting period. This is calculated by taking the average number of employees on all types of contract at the end of each month. This applies to countries with 50 or more employ-ees, representing at least 10% of the total workforce. âOtherâ is defined as gender specified by the employees themselves. âNot disclosedâ gen-der represents blank observations where employees have actively chosen not to dis-close their gender. Employee turnoverThe number of employees who have left the company is measured as the number of per-manent employees who left Novonesis during the preceding year. The rate of employee turnover is calculated as the number of permanent employees leaving Novonesis during the preceding year, com-pared to the average number of permanent employees. This excludes employees at divested entities transferred to the acquiring company.Diversity, equity and inclusionAs a global company, diversity, equity and inclusion (DE&I) are central to our culture and business. We believe that diverse teams are essential to driving creativity and innovation inside and outside of our walls, and our inclusive culture recognizes and values the unique contributions of each individual.We focus on fostering a culture where everyone feels respected, and we provide a supportive environment for employees to freely express their views.Our approach to diversity, equity and inclusion is guided by our Sustainability Commitment on Human and Labor Rights, Diversity, Equity and Inclusion Policyand our Sustainability Policy.Read more about the impacts, risks and opportunities for this topichere.Our approachOur leadership is responsible for shaping our cul-ture and establishing an inclusive workplace, emphasizing diversity in recruitment, retention, fair compensation and employee engagement. We ensure transparency in our DE&I efforts by annually reporting diversity data and sharing our initiatives with the Board of Directors and relevant committees, in alignment with the international standards we adhere to, as described in our Policies and Sustainability Commitments.We are committed to addressing historical and structural inequities that exist in society, in order to establish a more equitable and just workplace. Our focus is on identifying and bridging gaps for employees who may be at greater risk of marginali-zation due to characteristics such as ability, age, gender, ethnicity or sexual orientation. Our commit-ment to equity includes structured reviews and pro-active monitoring to ensure equal opportunities and fair compensation, and we work actively to elimi-nate unconscious bias and address any disparities.By 2030, our aim is to achieve gender parity, with a minimum of 45% women and 45% in senior mangement at the director level and above with direct reports. Recognizing that focusing solely on gender diversity is insufficient, we understand that, in order to thrive, employees must feel val-ued, respected and united by having a shared sense of purpose. Therefore, we prioritize inclu-sion as a fundamental element of our employee engagement. We take a regional approach to develop and define programs based on local demographics to address diversity dimensions beyond gender. Many of our sites have Employee Resource Groups, which aim to foster DE&I locally.In our regular employee engagement survey, we include questions related to DE&I, company cul-ture and change. The survey provides valuable insights into employeesâ perceptions about DE&I within our organization, including their sense of belonging, fairness and growth opportunities. 2024 actionsDuring 2024, we achieved significant pro-gress in our integration efforts. We reached key integration milestones, including estab-lishing the full organization and laying the foundation for a new unified culture.DE&I was an integral part of setting up the new organization and management positions. We ensured diversity through geographical representation globally; equity through pro-portional representation of employees from legacy companies; and inclusion by focusing on gender diversity.In 2024, the gender split across senior management was 36% women and 64% men. The gender pay gap across our global work-force was recorded at 2% in favor of women, driven by our workforce composition.As a global company, cultural celebrations are an important part of growing an inclusive com-munity, as are activities covering allyship, unconscious bias, disability awareness and inclusive leadership. We continued to foster DE&I activities across all our regions. For example, in North America, employee resource groups such as the Womenâs Initiative Network (WIN) and LGBTQ+ joined forces to promote employee engagement with DE&I.Moving forward, we will launch a global DE&I council to work with initiatives across all regions. We will continue to integrate our cul-ture commitments and DE&I into the design of our new people processes such as recruit-ment, onboarding and leadership development.* Director level and above with direct reports.Gender distribution at senior management*GenderNumber of employees at senior management (headcount)Percentage of employees at senior management (%)Male 19864Female11236Other--Employee age distribution AgePercentage of employees (%)Under 30 years old1330-50 years old60Over 50 years old27Compensation and gender pay gapUnit2024Gender pay gap%(2)Annual total remuneration ratioRatio66Accounting policiesDiversity Gender parity in senior management meas-ures the number and percentage of women, men and other genders at director level and above, including vice presidents, senior vice presidents and executive vice presidents with people responsibility. The numbers are based on the headcount at the end of the reporting period.The employee age distribution is derived from contractual obligations by headcount at the end of the reporting period.Remuneration ratio and gender pay gapThe gender pay gap is defined as the differ-ence in annual average pay levels between female and male employees, stated as the percentage of the annual average pay level of male employees. Annual total remuneration ratio is calculated by dividing the total remuneration of the high-est-paid individual and the median total remu-neration of all employees. Employee total remuneration is calculated for all employees and defined as base salary, bonus, long-term incentives, allowances, and major benefits. To compare global data, standard exchange rates established by our Finance department are used to convert all amounts to EUR. Additionally, for purposes of comparison, parttime employees will have their total remu-neration expressed as 100% Full-Time Equivalent (FTE).Health and safetyWith our commitment to care, we ensure that we maintain a strong safety culture in everything we do. We prioritize physical and psychological safety, and continually drive safety efforts across our organization. We are also committed to helping employees thrive at every stage of their professional journey. We strive for a positive work-life balance, enabling everyone to bring out their best both at work and beyond.Read more about the impacts, risks and opportunities for this topic here.Our approachWe promote safety throughout the organization and comply with all applicable occupational health and safety laws and regulations. We aim to mini-mize injuries occurring when performing work-re-lated activities and thus, have a target to maintain our Lost Time Injury Frequency (LTIF) with absence at less than or equal to 1.5 by 2025.Our Occupational Health and Safety Policysets guidelines to promote a safety-first culture. These guidelines are implemented by our Corporate Safety and Environment function in collaboration with representatives from across the organization to create a safe working environment. As part of our commitment to ensure worker safety, we have established strict procedures and management systems. Our health and safety man-agement system is designed to ensure that robust safety reporting, processes, equipment, stand-ards, tools and training are fully integrated into our daily operations. This enables us to take preven-tive and corrective actions, and continuously improve our employeesâ health, safety and, thus, well-being at work. Our global incident-handling system enables us to track our performance and monitor trends to drive improvements, corrective actions and inspections. We develop focused and data-driven safety initiatives through data collection of inci-dents, such as lost time injuries, injuries without absence, near misses and observations, and take actions to prevent them. We are dedicated to employee safety through our comprehensive enzyme safety program. This pro-gram sets forth clear guidelines for safe enzyme handling. Our program includes setting continuous improvement goals and taking follow-up actions by conducting regular inspections, performing annual self-evaluations, taking air measurements, and monitoring enzyme sensitization and/or allergy cases. To minimize enzyme exposure, this program also outlines best practices for the design and con-struction of production plants and laboratories.We inform employees about potential sensitiza-tion and allergy risks during the hiring process of relevant employee groups. In the rare cases where allergies occur, we provide necessary remediation, such as vocational rehabilitation, and we assist employees in finding alternative posi-tions within the company if the working environ-ment is not suitable for their condition.As a result, the prevention of enzyme allergies is ingrained in our safety-first culture and is funda-mental to our internal operations and those of our contract manufacturers. 2024 actionsBy using our medical screening data actively, we make improvements to the working envi-ronment, removing enzyme exposures and preventing allergy development. In 2024, we commenced the combination of our legacy medical screening programs for early reac-tion to enzymes. These programs provide important feedback on the effectiveness of the working environment. The screening pro-cess is voluntary, and all employees in scope are provided with sufficient information and time to make an informed decision about their attendance in the program.We communicate and raise awareness about health and safety-related measures and prac-tices across our global sites and offices. We have developed a Safety & Environment Collaboration for Unified Risk Elimination (SECURE) communication, which is distrib-uted to relevant areas in Novonesis, with the aim of raising awareness about identified issues, their root causes, and corrective and preventive actions. Furthermore, we ensure the standardization of our policies and practices through our Global Minimum Requirements (GMRs). They define the minimum level of requirements that must be complied with at all our sites, and are part of any internal audit or Environmental, Health and Safety (EHS) Assessment.In 2024, our Lost Time Injury Frequency (LTIF) with absence was recorded at 1.5, which is in line with our target. We will continue to drive a safety culture to ensure that safety behav-iors are ingrained in our organization and to proactively prevent injuries. Health and safetyUnit2024*Employees covered by Novonesisâ health and safety management system%100Recordable work-related accidentsNo.35Rate of recordable work-related accidentsRate1.9Lost Time Injury Frequency (LTIF) with absence per million working hoursRate1.5Fatalities**No.-* Non-employees are not reported for 2024.** This table includes data on our employees, except for the number of fatalities, which accounts for both our employees and other workers, such as value chain workers, operating on Novonesis sites.Accounting policiesHealth and safety management system100% of our workforce is covered by our health and safety management system based on headcount. This includes contract workers present on our sites. Read more about Characteristics of Novonesis employeesfor a description of headcount.Recordable work-related accidentsThe number of recordable work-related acci-dents for our own workforce consists of two types of incidents: Lost Time Injuries (LTI) and significant injuries other than LTI.A LTI is an injury that occurs while performing work-related activities at our sites, preventing the employee from resuming work on their next scheduled working day. Injuries are included if the confirmed root cause, after investigation, falls within Novonesisâ span of responsibility and control as an employer. This includes injuries sustained by substitutes (temporary) operating under Novonesisâ management.A significant injury (other than LTI) is a high-se-verity injury that causes serious irreversible impact and/or permanent damage but does not prevent an employee from resuming work the next scheduled working day. Rate of recordable work-related accidentsThe rate of recordable work-related accidents is calculated by dividing the number of recordable work-related accidents by the cumulated monthly work hours in the report-ing year. Work hours are determined by multi-plying the number of FTEs by 147.25 (as defined by the OECD). The result is multiplied by one million to express the frequency of recordable work-related accidents per million working hours.Lost Time Injury Frequency (LTIF)LTIF is calculated by dividing the number of registered LTIs by the cumulated monthly work hours in the reporting year. Work hours are determined by multiplying the number of FTEs by 147.25 (as defined by the OECD). The result is multiplied by one million to express the fre-quency of LTIs per million working hours. FatalitiesFatalities are recorded in our health and safety reporting system as part of work-related inju-ries and illnesses that result in death within our own workforce and among other workers on our sites.Workers in our upstream value chainWe uphold high ethical standards while doing business in a global environment. Our responsible procurement practices focus on addressing environmental, social and governance issues across our value chain. We source a wide variety of goods and services from our suppliers globally, and we focus on making our supply chain more sustainable and secure by collaborating with our suppliers and integrating sustainability into our procurement processes.Read more about the impacts, risks and opportunities for this topichere.Our approachWe are committed to responsible sourcing with high ethical standards. We engage our suppliers to minimize the environmental and social impact of our supply chain, in addition to considering quality and commercial aspects.Our approach towards workers in the value chain is defined by our Sustainability Policy, Sustainability Commitment on Human and Labor Rights, and our Business partner code of con-duct, and it is managed through our responsible sourcing program anchored within our Global Procurement department. Our responsible sourcing program is based on our Supplier Performance Management (SPM) pro-cess, and external platforms such as Responsibly and Supplier Ethical Data Exchange (Sedex). Combined with ongoing supplier dialogues, we use these systems to identify, assess and monitor sustainability risks in our supply chain. We monitor any human rights violations related to our suppli-ers through the external Responsibly platform. We are committed to upholding the principles of the UN Global Compact and to respecting inter-nationally recognized human and labor rights throughout our supply chain. Our suppliers must adhere to our Business partner code of conduct, which outlines our requirements on respecting human and labor rights in their workforce. We require our suppliers to complete questionnaires upon request and to accommodate visits and audits as necessary to confirm compliance. While we strive to maintain effective risk manage-ment, we acknowledge that violations may still occur within our supply chain. Business partners are encouraged to report issues when they arise. If an incident occurs that violates relevant laws, regulations or international conventions, we develop corrective actions with our supplier. If suppliers are unwilling to make improvements, we reserve the right to terminate the collaboration with immediate notice.We encourage our business partners to offer secure and confidential grievance redressal mechanisms for workers across their operations and value chain, without any fear of retaliation. We also provide a publicly available Whistleblower Hotlinethat allows our suppliers and their work-force to raise concerns through a secure and anonymous channel. 2024 actionsDuring the year, we focused on developing an integrated sustainable procurement strategy, including the alignment of supply chain risk assessment tools, our due diligence strategy, and embedding sustainability across our pro-curement processes. In 2024, we onboarded our procurement team to our sustainability risk assessment platform for suppliers, which leverages artificial intelligence to gather sup-pliersâ sustainability data and is used for rating suppliersâ sustainability performance. We have also started preparing for the coming EU legislations, which will impact our supply chain and the workers in the supply chain, such as the EU Deforestation Regulation.We recognize there may be potential human and labor rights violations across our value chain, including in the agricultural sector, where the majority of our raw materials are sourced. Although no human rights incidents were reported to us or identified by us in 2024, we are working to deepen our understanding of the risks associated with the commodities and geographies within our supply chain. Every year, our sourcing teams receive train-ing focusing on human rights and modern slavery issues, that may exist in our supply chain. In 2024, we conducted training for employees in procurement to enhance their ability to detect potential issues in our supply chain. The training focused on improving understanding of reporting violations, working with suppliers to resolve issues and identify-ing common sustainability themes. Additionally, employees were trained to lever-age systems and tools to identify and respond to sustainability risks in the supply chain. As a member of the Roundtable on Sustainable Palm Oil (RSPO), we are working towards ensuring that any palm oil-derived product we procure is RSPO-certified. This ensures that our suppliers of palm oil-derived products adhere to international and local labor and human rights standards, ensuring the adequate protection of the rights of work-ers and their families on plantations. We will continue to work and deliver on our responsi-ble sourcing strategy, while ensuring compli-ance with emerging supply chain regulations. Workers in our downstream value chainWe are committed to maintaining and continuously improving the safety of our customers and their employees when handling our biosolutions. Our biosolutions are produced responsibly and enable healthier lives and a healthier planet. However, incorrect handling of enzymes or high exposure to them may result in sensitization and allergies. We recognize that this can potentially affect value chain workers, and we are taking appropriate measures to prioritize and help ensure their safety.Read more about the impacts, risks and opportunities for this topic here.Our approachWe prioritize the safety of our customersâ workers by following the measures outlined in our Quality and Product Safety Policy. We believe in shared responsibility and collaboration with our custom-ers by keeping them informed on safe enzyme handling practices, by helping them use our prod-ucts safely and by providing ongoing support.As a leading biosolutions partner, we have led the process of establishing industry-wide safety stand-ards on enzymes, while driving the market towards safer manufacturing practices and leading product technology, which is integral to our reputation.We regularly assess and address potential risks to ensure that all our products, whether existing or in development, are safe to use and handle. This is managed by our Risk Assessment Committee (RAC), which evaluates risks associated with new applications of enzymes and potential allergenicity. We provide training for our employees to help them guide customers on the safe handling of enzymes at their sites. To support this, we have an internal safety catalog in place to document safety assessments and guidelines that cover worker safety related to our products. We provide safety data sheets with every product, containing detailed safety instructions for our customers.Our customers can raise inquiries and concerns directly to our customer support, which is man-aged by our Corporate Quality function. We have a robust process for addressing these complaints and concerns, by conducting thorough investiga-tions and communicating clear outcomes and recommendations to our customers.We also conduct compliance assessments to ensure that products are used according to their intended purpose. When necessary, we take appropriate measures, with the strictest action being discontinuation of sales. Customers rarely complain about safety or report incidents, which demonstrates the effectiveness of our precau-tionary actions. Customers that have become familiar with enzyme safety often contact us when they use our products for new applications. In addition, we actively engage with trade associa-tions, such as the Association of Manufacturers and Formulators of Enzyme Products (AMFEP), and we collaborate with our customers, as well as with other companies, to ensure safe enzyme use across many industries. This approach amplifies our voice and secures commitments from members. We are proactively involved in mitigating and rem-edying potential negative impacts on workersâ health and safety.2024 actionsIn 2024, we did not receive any reports from our customers on their workersâ safety being impacted by enzymes. However, in line with our commitment to enzyme safety, we led dis-cussions on enzyme safety and published guidance through active involvement with global trade associations to help our custom-ers and the industry manage enzyme-related risks effectively.In 2024, our customers reported new uses of some of our biosolutions and the formulation of biosolutions with enzymes at higher con-centrations. We conducted safety assess-ments at our customersâ sites and provided guidance on the safe handling of the new uses of enzymes, ensuring workersâ safety as part of their regulatory obligations. Some of the find-ings from our assessments were consolidated as exposure scenarios, as required by the EU regulatory framework on chemicals, REACH.In 2025, several projects are planned to fur-ther improve safety around enzyme products. We will continue to lead discussions on enzyme safety implementation across the enzyme industry and in our customersâ indus-tries through various trade associations glob-ally. As a market leader in feed enzymes, we are working on specific guidelines for the feed industry to safely manage enzymes, in collabo-ration with our partners and relevant trade associations such as the European Feed Manufacturersâ Federation (FEFAC) and the EU Association of Specialty Feed Ingredients and their Mixtures (FEFANA).Our commitment to product stewardship remains unwavering, and we are dedicated to ensuring that all our stakeholders understand the importance of adhering to our product safety standards today and for future solutions.Business conductWe are committed to conducting business in a responsible, ethical and transparent manner, and to meeting stakeholdersâ expectations of high business integrity standards across our operations. We promote an ethical business environment in accordance with relevant laws and regulations, and we believe that proactive and transparent corporate governance promotes sustainable business behavior and long-term value creation. As a company with a global presence, we recognize the potential risks of illegal and unethical practices, which can lead to sanctions, and damage our company and brand. Our approach to business conduct is guided by our Business Integrity Policy. We prioritize anti-corruption and anti-bribery measures across our organization, embedding these principles into our company culture. We work to ensure that employees trust our Whistleblower Hotline and feel empowered to speak up without fear of retaliation. These measures support fostering a culture of integrity and ethical conduct.Read more about the impacts, risks and opportunities for this topic here.Corporate cultureOur approachIt is key for us to maintain a high level of business integrity as part of our organizational culture, and to ensure that our employees understand the behavior expected at Novonesis in all interactions with our stakeholders. It is also important that they feel safe raising any concerns that may arise.Our corporate culture is key to our success. Together, we have laid the foundation for a new culture for Novonesis that guides the way we interact with each other and the world around us. We establish, develop, promote and evaluate our culture through a comprehensive and iterative process. This involves aligning values, fostering open communication and raising awareness through campaigns and training programs. We also assess the impact of cultural initiatives through employee engagement surveys. The culture commitments below have been devel-oped to guide us every day: ⢠Explore: We stay curious about the world, always thinking ahead, and adapt when needed.⢠Impact: We make a difference to customers and the world with actions that matter.⢠Ownership: We believe accountability and determination will get us further faster.⢠Care: We unlock the collective strength of our unique community.Our âOwnershipâ commitment emphasizes that our employees are expected to act with integrity and uphold high ethical standards, even when faced with difficult situations. This commitment embeds ethical business practices into all activities across the organization.2024 actionsDuring the year, we conducted several initia-tives to bring our new culture commitments to life. Through workshops, teams were pre-sented with the culture commitments, spark-ing meaningful discussions about how these commitments could be translated into their daily behaviors and team dynamics. The work-shops facilitated reflections on individual and team-level actions, encouraging participants to set realistic yet ambitious goals aligned with our culture commitments. In addition, we introduced training and work-shop materials to help employees engage in ongoing discussions about our culture. Furthermore, all employees were invited to complete an e-learning course designed to provide a deeper understanding of our new culture, and to get valuable insights into each culture commitment.We aim to integrate our culture commitments into our leadership development programs, performance management and talent attrac-tion. Our goal is to integrate our culture com-mitments into every aspect of our work.Anti-corruption and anti-briberyOur approachWe have a holistic approach to prevent and detect corruption and bribery. It starts with shap-ing a shared culture that integrates ethical busi-ness practices into our daily activities. We have a system of policies, procedures, training programs, and controls to ensure an understanding of busi-ness integrity standards and their application in decision-making processes. Our approach to anti-corruption and anti-bribery is guided by our Business Integrity Policy, which is communicated internally to all employees through our intranet and training programs, and is publicly available to external stakeholders.We have a governance framework for managing investigations of potential fraud and other illegal behavior. An investigation group oversees case investigations, with senior management members from our People & Organization, Finance and Legal functions. Investigations are conducted by employees with the relevant expertise.Our procedures ensure that individuals affected by an allegation do not participate in the investi-gation, and that a potential management chain under investigation in a case has no deci-sion-making power or influence over the scope or conclusions of the investigation. The internal pro-cedures established for case investigations set clear rules for the notification of management and for reporting to the Audit Committee.Every year all relevant employees are required to complete a business integrity e-learning course covering anti-corruption and anti-bribery topics. The quarter-hour session offers guidance on ethi-cal decision-making, includes case examples and exercises, and provides information on where to seek assistance with questions or concerns. This year, our business integrity training placed special emphasis on anti-corruption and anti-bribery including themes of conflicts of interest, gifts and hospitality, which we have identified as areas where employees will benefit from guidance.We acknowledge that certain roles, such as admin-istrative, professional or managerial ones, are potentially more exposed to corruption risks and can benefit from additional support in this area, rather than job roles where there is little interaction with third parties and limited access to company funds. As a result, our training program covers 100% of the former groups, ensuring that everyone has the resources and knowledge needed.Any cases of anti-corruption and anti-bribery can be reported through our Whistleblower Hotline. 2024 actionsFollowing the combination, we have prioritized the alignment of our main policies, proce-dures, training programs, communication and controls across Novonesis. This has been a priority throughout 2024 and will continue into 2025 and onwards. In 2024, we did not record any convictions or fines for violation of anti-corruption and anti-bribery laws. The majority of incidents related to corruption and bribery during the reporting period have concerned conflicts of interest. In most cases, the allegations were not substantiated. In two minor cases, the out-come was a corrective dialogue and a verbal warning. As a general principle, substantiated corruption and bribery cases lead to severe disciplinary sanctions.During the year, we launched a business integrity training focused on anti-bribery and anti-corruption. This e-learning course was provided to all relevant employees across the company, including those in managerial and executive positions. In 2024, 95% of Novonesis employees in scope completed the business integrity training.Next year, we will unify and introduce a new Employee Code of Conduct for clear commu-nication of rules and expectations to employ-ees, with respect to actions and deci-sion-making impacting the integrity of our company. We will also work on developing a uniform approach to employee training, cov-ering legal compliance across various busi-ness integrity-related topics.Political engagements and lobbying activitiesWe embrace our sustainability leadership and actively advocate for climate action on the global stage. We engage with many stakeholders to demonstrate the role biosolutions play in enabling a healthier planet and healthier people. We support the development of regulations to drive innovation, mitigate climate change and reduce dependency on fossil fuels. We work directly and indirectly with interest groups, govern-ments, policymakers, NGOs and other stakeholders to drive change and support the green transition globally, regionally and in the countries in which we operate. Our Executive Leadership Team is respon-sible for overseeing our political engagements. We have a Business Integrity Policythat guides our external engagements by maintaining high standards of business integrity. We do not provide any direct or indirect political contributions to any parties or political candidates. We are members of industry organizations, which allows us to collabo-rate with other companies to express our views. While some of these organizations may use a por-tion of their budget for political contributions, we do not participate in specific collections for politi-cal parties or candidates. Our members of the Board of Directors and the Executive Leadership Team have not held any similar positions in public office and public administration in the two years preceding their appointment.Lobbying activitiesWe are committed to a constructive dialogue with policymakers and the broader society on topics of interest to our business and pertaining to biosolu-tions, which are key to delivering on the Sustainable Development Goals, jobs and growth. We focus on the following topics: biosolutions, bioeconomy, bioenergy, transformation of food systems and agriculture. We are active in the policy debate through differ-ent channels, including our memberships in indus-try associations, alliances and chambers of com-merce; our responses to public policy consultations; face-to-face meetings with public authorities; and participation in public events.We collaborate with various organizations such as the Alliance for Biosolutions in Denmark, Crop-Life Brasil, the National Association of Manufacturers in the United States, and the European Biosolutions Coalition. Our aim is to raise awareness about bio-solutions and their potential, and to ensure optimal framework conditions for the sector. Novonesis is registered in the EU transparency register with the registration number 780717547356-52.Accounting policiesIncidents of corruption or briberyThe number of convictions and the amount of fines for violations of anti-corruption and anti-bribery laws are collected through our internal litigation reporting process.Functions at risk with respect to corruption and bribery include employees in roles most susceptible to bribery and corruption, such as those with control over financial transactions, regulatory approvals, or external relationships. Our annual business integrity training targets all administrative, professional and managerial employees.All the functions at risk receive the business integrity training, and this is reported as the percentage of functions covered by this train-ing. The completion rate of business integrity training indicates the percentage of employ-ees at risk who have completed the training within the reporting period.Disclosure requirements and incorporation by referenceThe following tables list all the European Sustainability Reporting Standards (ESRS) disclosure requirements in ESRS 2, and the topical standards which have guided the preparation of our Sustainability statement. The tables can be used to navigate to information relating to a specific disclosure requirement in the Sustainability statement.Disclosure requirementPage numberGeneral disclosuresESRS 2BP-1General basis for preparation of the Sustainability statement53BP-2Disclosures in relation to specific circumstances53GOV-1The role of the administrative, management and supervisory bodies31-35, 54GOV-2Information provided to and sustainability matters addressed by the undertakingâs administrative, management and supervisory bodies54GOV-3Integration of sustainability-related performance in incentive schemes47GOV-4Statement on sustainability due diligence55GOV-5Risk management and internal controls over sustainability reporting53SBM-1Strategy, business model and value chain10-13, 20-23, 26-28, 62SBM-2Interests and views of stakeholders59SBM-3Material impacts, risks and opportunities and their interactionwith strategy and business model62-69IRO-1Description of the process to identify and assess material impacts, risksand opportunities60-61IRO-2Disclosure requirements in ESRS covered by the undertakingâs Sustainabilitystatement60-61, 115-117Disclosure requirementPage numberClimate changeESRS E1ESRS 2; GOV-3Integration of sustainability-related performance in incentive schemes47E1-1Transition plan for climate change mitigation77-78ESRS 2; SBM-3Material impacts, risks and opportunities, and their interaction with strategy and business model62-63, 76ESRS 2; IRO-1Description of the processes to identify and assess material climate-related impacts, risks and opportunities55, 60-61E1-2Policies related to climate change mitigation and adaptation56-58E1-3Actions and resources in relation to climate change policies76-78E1-4Targets related to climate change mitigation and adaptation27, 76-78E1-5Energy consumption and mix79E1-6Gross Scope 1, 2, 3 and total GHG emissions81E1-7GHG removals and GHG mitigation projects financed through carbon creditsNot materialE1-8Internal carbon pricingNot relevantE1-9Anticipated financial effects from material physical and transition risks and potential climate-related opportunitiesPhase-inDisclosure requirementPage numberPollutionESRS E2ESRS 2; IRO-1Description of the processes to identify and assess material pollution-related impacts, risks and opportunities55, 60-61E2-1Policies related to pollution56-58E2-2Actions and resources related to pollution83-84E2-3Targets related to pollution54E2-4Pollution of air, water and soil84E2-5Substances of concern and substances of very high concern85E2-6Anticipated financial effects from pollution-related impacts, risks and opportunitiesPhase-inWaterESRS E3ESRS 2; IRO-1Description of the processes to identify and assess material water and marine resources-related impacts, risks and opportunities55, 60-61E3-1Policies related to water and marine resources56-58E3-2Actions and resources related to water and marine resources86-87E3-3Targets related to water and marine resources27, 86-87E3-4Water consumption88E3-5Anticipated financial effects from water and marine resources-related impacts, risks and opportunities Phase-inDisclosure requirementPage numberBiodiversityESRS E4E4-1Transition plan and consideration of biodiversity and ecosystems in strategy and business model89ESRS 2; SBM-3Material impacts, risks and opportunities and their interaction with strategy and business model62, 66, 89-90ESRS 2; IRO-1Description of processes to identify and assess material biodiversity- and ecosystem-related impacts, risks and opportunities55, 60-61E4-2Policies related to biodiversity and ecosystems56-58E4-3Actions and resources related to biodiversity and ecosystems89-90E4-4Targets related to biodiversity and ecosystems54E4-5Impact metrics related to biodiversity and ecosystems change90E4-6Anticipated financial effects from biodiversity- and ecosystem-related risks and opportunitiesPhase-inResource use and circular economyESRS E5ESRS 2; IRO-1Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and opportunities55, 60-61E5-1Policies related to resource use and circular economy56-58E5-2Actions and resources related to resource use and circular economy91-92E5-3Targets related to resource use and circular economy27, 91E5-4Resource inflowsNot materialE5-5Resource outflows92-93E5-6Anticipated financial effects from resource use and circular economy-related impacts, risks and opportunitiesPhase-inDisclosure requirementPage numberOwn workforceESRS S1ESRS 2; SBM-2Interests and views of stakeholders59ESRS 2; SBM-3Material impacts, risks and opportunities and their interaction with strategy and business model55, 62, 67, 95-96, 99, 102-103S1-1Policies related to own workforce56-58S1-2Processes for engaging with own workers and workersâ representatives about impacts95-96, 99, 102-103S1-3Processes to remediate negative impacts and channels for own workers to raise concerns95-96S1-4Taking action on material impacts on own workforce; approaches to mitigating material risks and pursuing material opportunities related to own workforce; and effectiveness of those actions95-96, 99-100, 102-103S1-5Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities27, 99-100, 102-103S1-6Characteristics of the undertakingâs employees98S1-7Characteristics of non-employee workers in the undertakingâs own workforcePhase-inS1-8Collective bargaining coverage and social dialogue97S1-9Diversity metrics101S1-10Adequate wages96-97S1-11Social protectionPhase-inS1-12Persons with disabilitiesPhase-inS1-13Training and skills development metricsPhase-inS1-14Health and safety metrics104S1-15Work-life balance metricsPhase-inS1-16Compensation metrics (pay gap and total compensation)101S1-17Incidents, complaints and severe human rights impacts97Disclosure requirementPage numberWorkers in the value chainESRS S2ESRS 2; SBM-2Interests and views of stakeholders59ESRS 2; SBM-3Material impacts, risks and opportunities and their interaction with strategy and business model55, 62, 67S2-1Policies related to value chain workers56-58S2-2Processes for engaging with value chain workers about impacts105, 107-108S2-3Processes to remediate negative impacts, and channels for value chain workers to raise concerns105-108S2-4Taking action on material impacts on value chain workers; approaches to managing material risks and pursuing material opportunities related to value chain workers; and effectiveness of those actions105-108S2-5Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities54Business conductESRS G1ESRS 2; GOV-1The role of the administrative, supervisory and management bodies54ESRS 2; IRO-1Description of the processes to identify and assess material impacts, risks and opportunities60-61G1-1Corporate culture and business conduct policies and corporate culture56-58G1-2Management of relationships with suppliersNot materialG1-3Prevention and detection of corruption and bribery112G1-4Confirmed incidents of corruption or bribery112G1-5Political influence and lobbying activities113G1-6Payment practicesNot materialEntity-specific topicInnovationMDR-PNovonesis Sustainability Policy67MDR-AInnovating for impact24-25MDR-MShaping a more sustainable future with biosolutions26, 28MDR-TShaping a more sustainable future with biosolutions26, 28, 54Datapoints that derive from other EU legislationThe table below includes all of the datapoints that derive from other EU legislation as listed in ESRS 2 appendix B, indicating where the datapoints can be found.Datapoints that derive from other EU legislationPage numberGeneral disclosuresESRS 221 (d)Board's gender diversity3121 (e)Percentage of board members who are independent3130Statement on due diligence 5540 (d) iInvolvement in activities related to fossil fuel activitiesNot material40 (d) iiInvolvement in activities related to chemical productionNot material40 (d) iiiInvolvement in activities related to controversial weaponsNot material40 (d) ivInvolvement in activities related to cultivation and production of tobaccoNot materialClimate changeESRS E114Transition plan to reach climate neutrality by 205077-7816 (g)Undertakings excluded from Paris-aligned benchmarksNot relevant34GHG emission reduction targets27, 7738Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors)7937Energy consumption and mix7940-43Energy intensity associated with activities in high climate impact sectors7944Gross Scope 1, 2, 3 and total GHG emissions8153-55Gross GHG emissions intensity8156GHG removals and carbon creditsNot materialDatapoints that derive from other EU legislationPage number66Exposure of the benchmark portfolio to climate-related physical risksPhase-in66 (a); 66 (c)Disaggregation of monetary amounts by acute and chronic physical risk; Location of significant assets at material physical riskPhase-in67 (c)Breakdown of the carrying value of its real estate assets by energy-efficiency classesPhase-in69Degree of exposure of the portfolio to climate-related opportunitiesPhase-inPollutionESRS E228Amount of each pollutant listed in Annex II of the E-PRTR Regulation emitted to air, water and soil84WaterESRS E39Water and marine resources5813Dedicated policyNot relevant14Sustainable oceans and seasNot material28 (c)Total water recycled and reused8829Total water consumption in m3per net revenue on own operations88Datapoints that derive from other EU legislationPage numberBiodiversityESRS E416 (a) iActivities negatively affecting biodiversity-sensitive areas9016 (b)Impacts related to land degradation, desertification or soil sealing9016 (c)Operations affecting threatened species9024 (b)Sustainable land/agriculture practices or policies5824 (c)Sustainable oceans/seas practices or policiesNot material24 (d)Policies to address deforestation58Resource use and circular economyESRS E537 (d)Non-recycled waste9239Hazardous waste and radioactive waste*93Own workforceESRS S114 (f)Risk of incidents of forced laborNot material14 (g)Risk of incidents of child laborNot material20Human rights policy commitments5821Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 85522Processes and measures for preventing trafficking in human beingsNot material23Workplace accident prevention policy or management system56, 102-10432 (c)Grievance/complaints handling mechanisms5788 (b) and (c)Number of fatalities, and number and rate of work-related accidents10488 (e)Number of days lost to injuries, accidents, fatalities or illness10497 (a)Unadjusted gender pay gap10197 (b)Excessive CEO pay ratio101103 (a)Incidents of discrimination97104 (a)Non-respect of UNGPs on Business and Human Rights and OECD guidelinesNot relevantDatapoints that derive from other EU legislationPage numberWorkers in the value chainESRS S211 (b)Significant risk of child labor or forced labor in the value chain10617Human rights policy commitments5818Policies related to value chain workers5819Non-respect of UNGPs on Business and Human Rights and OECD guidelines5819Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 810636Human rights issues and incidents connected to its upstream and downstream value chain106Affected communitiesESRS S316Human rights policy commitmentsNot material17Non-respect of UNGPs on Business and Human Rights, ILO principles or/and OECD guidelines paragraphNot material36Human rights issues and incidents paragraph Not materialConsumers and end-usersESRS S416Policies related to consumers and end users paragraph 16Not material17Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraphNot material35Human rights issues and incidents paragraph Not materialBusiness conductESRS G110 (b)United Nations Convention against CorruptionNot relevant10 (d)Protection of whistleblowersNot relevant24 (a)Fines for violation of anti-corruption and anti-bribery laws11224 (b)Anti-corruption and anti-bribery standards112</mrv:SustainabilityReport>
<mrv:DescriptionofTheTaxonomyRegulation contextRef="ctx-1" id="f0__s9__7__37" xml:lang="en">EU Taxonomy The EU Taxonomy Regulation (EU) 2020/852 is a classification system that encompasses a stand-ard set of definitions for sustainable activities. The aim of the Regulation is to help the EU guide sus-tainable investments by requiring companies to report on the parts of net sales*, capital expendi-tures (CAPEX) and operational expenditures (OPEX) that are associated with environmentally sustainable economic activities.The defined activities are centered around six environmental objectives: Climate change mitiga-tion; climate change adaptation; sustainable use and protection of water and marine resources; transition to a circular economy; pollution preven-tion and control; and protection and restoration of biodiversity and ecosystems.For 2024, all six objectives are in scope for report-ing eligibility, which means that companies must assess whether they have economic activities that are included in the different annexes of the Delegated Acts, and report the eligible proportion of net sales, CAPEX and OPEX. In 2024, all six objectives must now be further assessed for alignment of eligible activities with the Regulation. Alignment is determined by the assessment of compliance with the technical screening criteria, doing no significant harm to any of the other environmental objectives and minimum social safeguards.Despite the positive environmental impact of our biosolutions and our focus on minimizing our envi-ronmental footprint, our core activities do not fall within the current scope of reportable activities as defined in the EU Taxonomy. However, we have screened our non-core activities against the six objectives to identify the proportion of any eligi-ble and potentially aligned activities.We screened the activities listed in the technical annexes under the Delegated Regulations 2021/2139 and 2023/2486, including amendments to Delegated Regulations 2021/2139, as set forth in the Delegated Regulations 2023/2485. This screening included interviews with relevant pro-ject managers, in order to identify any ongoing activities for which Novonesis might be eligible to report. Once eligible activities were identified, a deep dive was performed to assess whether the activities could be considered aligned according to the EU taxonomy standards.Our internal procedures are set up to ensure that no activity is double counted, which means that none of the identified activities contribute to mulitple environmental objectives. Therefore, dis-aggregation of KPIs is not required.Taxonomy-eligibilityBased on our eligibility screening, Novonesisâs eli-gible activities are as follows:⢠CCM/CCA 4.20 - Cogeneration of heat/cool and power from bioenergy: Upgrading biogas to biomethane for use in electricity and dis- trict heating production. New project in 2024, eligible for CAPEX.⢠CCM/CCA 5.4 - Renewal of wastewater col- lection and treatment: Recycling treated wastewater for use in production. Eligible for CAPEX.⢠CCM/CCA 5.9 - Material recovery from non-hazardous waste: Production of biomass. Eligible for CAPEX. ⢠CCM/CCA 7.7 - Acquisition and ownership of buildings: As part of the combination, Novonesis has acquired the lands and build- ings of Chr. Hansen. New project in 2024, eli- gible for CAPEX.⢠CCM 9.1 - Close to market research, develop- ment and innovation: Carbon capture projects. Eligible for OPEX.* The EU Taxonomy Regulation applies the term âturnoverâ. To reflect the terminology used in our financial reporting, we use the term ânet salesâ.Net salesWe identified no relevant eligible net sales. Net sales is defined as net sales included in the con-solidated financial statements for the year 2024. Please see Note 2.2 on Net sales.Capital expenditures (CAPEX)We identified eligible CAPEX of EUR 481.1 million, corresponding to 10.9% of total CAPEX. CAPEX is defined as additions to tangible and intangible assets during the financial year, consid-ered before depreciation, amortisation and any re-measurements, including those resulting from revaluations and impairments, for the relevant financial year and excluding fair value changes. The denominator also includes additions to tangi-ble and intangible assets resulting from business combinations. Goodwill is not considered. Please see Note 3.1 on Goodwill and other intangible assets, and Note 3.2 on Property, plant and equipment.Operational expenditures (OPEX) We identified eligible OPEX of EUR 0.5 million, corresponding to 0.1% of total OPEX.OPEX is defined as direct non-capitalized costs that relate to research and development, building renovation measures, short-term lease, mainte-nance and repair, and any other direct expendi-tures relating to the day-to-day servicing of assets of property, plant and equipment by the undertak-ing or third party to whom activities are out-sourced that are necessary to ensure the contin-ued and effective functioning of such assets.2024Net salesCAPEXOPEXTaxonomy-aligned activities---Taxonomy-eligible, but not Taxonomy-aligned activities-10.9%0.1%Total Taxonomy-eligible activities-10.9%0.1%Taxonomy-non-eligible activities100%89.1%99.9%Net sales2024Substantial contribution criteriaDNSH criteria ('Does Not Significantly Harm')Economic Activities (1)Code (2)Net sales (mEUR)(3)Proportion of net sales (%)(4)Climate Change Mitigation (5)Climate Change Adaptation (6)Water(7)Pollution (8)Circular Economy (9)Biodiversity and Eco-systems (10)Climate Change Mitigation (11)Climate Change Adaptation (12)Water (13)Pollution (14)Circular Economy (15)Biodiversity (16)Minimum Safeguards (17)Proportion of Taxonomy-aligned (A.1.) or -eligible (A.2.) net sales 2023 (18)Category (enabling activity) Category(transitional activity)A. TAXONOMY-ELIGIBLE ACTIVITIESA.1. Environmentally sustainable activities (Taxonomy-aligned)Y;N;N/ELY;N;N/ELY;N;N/ELY;N;N/ELY;N;N/ELY;N;N/ELY/NY/NY/NY/NY/NY/NY/NNet sales of environmentally sustainable activities (Taxonomy-aligned) (A.1) ----------------Of which enabling----------------EOf which transitional------------TA.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)EL;N/ELEL;N/ELEL;N/ELEL;N/ELEL;N/ELEL;N/ELNet sales of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)---------Net sales of Taxonomy-eligible activities (A.1 + A.2)---------B. TAXONOMY-NON-ELIGIBLE ACTIVITIESNet sales of Taxonomy-non-eligible activities3,833.5100%TOTAL3,833.5100%Y: Yes - Taxonomy-eligible and Taxonomy-aligned activity N: No -Taxonomy-eligible but not Taxonomy-aligned activity EL: Eligible - Taxonomy-eligible activity N/EL: Not eligible - Taxonomy-non-eligible activityCapex2024Substantial contribution criteriaDNSH criteria ('Does Not Significantly Harm')Economic Activities (1)Code (2)CAPEX (mEUR)(3)Proportion of CAPEX (%) (4)Climate Change Mitigation (5)Climate Change Adaptation (6)Water(7)Pollution (8)Circular Economy (9)Biodiversity and Eco-systems (10)Climate Change Mitigation (11)Climate Change Adaptation (12)Water (13)Pollution (14)Circular Economy (15)Biodiversity (16)Minimum Safeguards (17)Proportion of Taxonomy- aligned (A.1.) or -eligible (A.2.) CAPEX 2023(18)*Category (enabling activity)(19)Category(transitional activity)(20)A. TAXONOMY-ELIGIBLE ACTIVITIESA.1. CAPEX of environmentally sustainable activities (Taxonomy-aligned)Y;N;N/ELY;N;N/ELY;N;N/ELY;N;N/ELY;N;N/ELY;N;N/ELY/NY/NY/NY/NY/NY/NY/NCAPEX of environmentally sustainable activities (Taxonomy-aligned) (A.1)----------------Of which enabling----------------EOf which transitional-----------TA.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned)EL;N/ELEL;N/ELEL;N/ELEL;N/ELEL;N/ELEL;N/ELCogeneration of heat/cool and power from bioenergyCCM/CCA 4.201.90.1%ELELN/ELN/ELN/ELN/EL-Renewal of wastewater collection and treatmentCCM/CCA 5.4.2.60.01%ELELN/ELN/ELN/ELN/EL2.8%Material recovery from non-hazardous wasteCCM/CCA 5.9. 0.10.01%ELELN/ELN/ELN/ELN/EL0.6%Acquisition and ownership of buildingsCCM/CCA 7.7476.510.8%ELELN/ELN/ELN/ELN/EL-CAPEX of Taxonomy-eligible but not environmentally sus-tainable activities (not Taxonomy-aligned activities) (A.2)481.110.9%10.9%-----3.4%A. CAPEX of Taxonomy-eligible activities (A.1+A.2)481.110.9%10.9%-----3.4%B. TAXONOMY-NON-ELIGIBLE ACTIVITIESCAPEX of Taxonomy-non-eligible activities3,944.589.1%TOTAL4,425.6100%Y: Yes - Taxonomy-eligible and Taxonomy-aligned activity N: No -Taxonomy-eligible but not Taxonomy-aligned activity EL: Eligible - Taxonomy-eligible activity N/EL: Not eligible - Taxonomy-non-eligible activity* In 2024, the aligned activities from 2023 (CCM 5.4 with 1% and CCM 5.9 with 0.6% of total CAPEX) have been reassessed. The 2023 activities are only eligible from 2024, because a more in-depth assessment of compliance with the substantial contribution category has been conducted, concluding that Novonesis does not have the necessary evidence or data to prove compliance with the DNSH criteria for climate change adaptation.Opex2024Substantial contribution criteriaDNSH criteria ('Does Not Significantly Harm')Economic Activities(1)Code (2)OPEX (mEUR)(3)Proportion of OPEX (%) (4)Climate Change Mitigation (5)Climate Change Adaptation (6)Water (7)Pollution (8)Circular Economy (9)Biodiversity and Eco-systems (10)Climate Change Mitigation (11)Climate Change Adaptation (12)Water (13)Pollution (14)Circular Economy (15)Biodiversity (16)Minimum Safeguards (17)Proportion of Taxonomy-aligned (A.1.) or -eligible (A.2.) OPEX 2023 (18)*Category (enabling activity)(19)Category(transitional activity)(20)A. TAXONOMY-ELIGIBLE ACTIVITIESA.1. Environmentally sustainable activities (Taxonomy-aligned)Y;N;N/ELY;N;N/ELY;N;N/ELY;N;N/ELY;N;N/ELY;N;N/ELY/NY/NY/NY/NY/NY/NY/NOPEX of environmentally sustainable activities (Taxonomy-aligned) (A.1) ----------------Of which enabling----------------EOf which transitional-----------TA.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)EL;N/ELEL;N/ELEL;N/ELEL;N/ELEL;N/ELEL;N/ELClose to market research, development and innovationCCM 9.1.0.40.1%ELN/ELN/ELN/ELN/ELN/EL0.1%Renewal of waste water collection and treatmentCCM/CCA 5.4.--------0.1%Nature-based solutions for flood and drought risk prevention and protectionWTR 3.3--------0.2%OPEX of Taxonomy-eligible but not environmentally sus-tainable activities (not Taxonomy-aligned activities) (A.2)0.40.1%0.1%-----0.4%A. OPEX of Taxonomy-eligible activities (A.1+A.2)0.40.1%0.1%-----0.4%B. TAXONOMY-NON-ELIGIBLE ACTIVITIESOPEX of Taxonomy-non-eligible activities427.899.9%TOTAL428.2100%Y: Yes - Taxonomy-eligible and Taxonomy-aligned activity N: No -Taxonomy-eligible but not Taxonomy-aligned activity EL: Eligible - Taxonomy-eligible activity N/EL: Not eligible - Taxonomy-non-eligible activity* In 2024, the aligned activity from 2023 (CCM 5.4 with 0.1% of total OPEX) has been reassessed. The 2023 activity is only eligible from 2024 because a more in-depth assessment of compliance with the substantial contribution category has been conducted, concluding that Novonesis does not have the necessary evidence or data to prove compliance with the DNSH criteria for climate change adaptation. Furthermore, in 2024, as of last year, the material threshold for OPEX is EUR 135,000, and therefore only activity CCM 9.1 is reported as eligible.</mrv:DescriptionofTheTaxonomyRegulation>
<fsa:AverageNumberOfEmployees contextRef="ctx-1"
decimals="0"
id="f0__s9__7__63"
unitRef="pure">10208</fsa:AverageNumberOfEmployees>
<fsa:AverageNumberOfEmployees contextRef="ctx-56"
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id="f0__s9__8__63"
unitRef="pure">6805</fsa:AverageNumberOfEmployees>
<sob:StatementByExecutiveAndSupervisoryBoards contextRef="ctx-1" id="f0__s9__7__172" xml:lang="en">The Board of Directors and the Executive Management have today considered and approved the Annual Report of Novozymes A/S (Novonesis A/S) for the financial year January 1 â December 31, 2024.The Consolidated Financial Statements have been prepared in accordance with IFRS Accounting Standards, as adopted by the EU, and additional disclosure requirements in the Danish Financial Statements Act. The Parent Company Financial Statements have been prepared in accordance with the Danish Financial Statements Act. In our opinion, the accounting policies used are appropriate, and the Groupâs internal controls rel-evant to the preparation and presentation of the Annual Report are adequate. The Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the financial position at December 31, 2024, of the Group and the Parent Company, and of the results of the Group and the Parent Company operations and consolidated cash flows for the financial year January 1 â December 31, 2024. The sustainability statement is prepared in accordance with the European Sustainability Reporting Standards ESRS as required by the Danish Financial Statements Act section 99a as well as article 8 in the EU Taxonomy regulation.In our opinion, Managementâs Review includes a true and fair account of the development in the operations and financial circumstances of the Group and the Parent Company, of the results for the year, and of the financial position of the Group and the Parent Company as well as a description of the most significant risks and elements of uncer-tainty facing the Group and the Parent Company. In our opinion, the Annual Report of Novonesis A/S for the financial year January 1 - December 31, 2024, with the file name NOVOZYMES-2024-12-31-en.zip, has been prepared, in all material respects, in accordance with the ESEF Regulation.We recommend that the Annual Report be adopted at the Annual General Meeting.</sob:StatementByExecutiveAndSupervisoryBoards>
<sob:PlaceOfSignatureOfStatement contextRef="ctx-1" id="f0__s9__7__173" xml:lang="en">Bagsvaerd</sob:PlaceOfSignatureOfStatement>
<sob:DateOfApprovalOfAnnualReport contextRef="ctx-1" id="f0__s9__7__174">2025-02-26</sob:DateOfApprovalOfAnnualReport>
<cmn:NameAndSurnameOfMemberOfExecutiveBoard contextRef="ctx-38" id="f0__s9__7__175" xml:lang="en">Ester Baiget</cmn:NameAndSurnameOfMemberOfExecutiveBoard>
<cmn:TitleOfMemberOfExecutiveBoard contextRef="ctx-38" id="f0__s9__7__176" xml:lang="en">President & CEO </cmn:TitleOfMemberOfExecutiveBoard>
<cmn:NameAndSurnameOfMemberOfExecutiveBoard contextRef="ctx-39" id="f0__s9__7__177" xml:lang="en">Rainer Lehmann </cmn:NameAndSurnameOfMemberOfExecutiveBoard>
<cmn:TitleOfMemberOfExecutiveBoard contextRef="ctx-39" id="f0__s9__7__178" xml:lang="en">CFO</cmn:TitleOfMemberOfExecutiveBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-40" id="f0__s9__7__179" xml:lang="en">Cornelis (Cees) de Jong</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:TitleOfMemberOfSupervisoryBoard contextRef="ctx-40" id="f0__s9__7__180" xml:lang="en">Chair</cmn:TitleOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-41" id="f0__s9__7__181" xml:lang="en">Jesper Brandgaard</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:TitleOfMemberOfSupervisoryBoard contextRef="ctx-41" id="f0__s9__7__182" xml:lang="en">Vice Chair</cmn:TitleOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-42" id="f0__s9__7__183" xml:lang="en">Heine Dalsgaard</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-43" id="f0__s9__7__184" xml:lang="en">Lena Bech Holskov</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-44" id="f0__s9__7__185" xml:lang="en">Lise Kaae</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-45" id="f0__s9__7__186" xml:lang="en">Anders Hentze Knudsen</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-46" id="f0__s9__7__187" xml:lang="en">Kasim Kutay</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-47" id="f0__s9__7__188" xml:lang="en">Kevin Lane</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-48" id="f0__s9__7__189" xml:lang="en">Preben Nielsen</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-49" id="f0__s9__7__190" xml:lang="en">Morten Otto Alexander Sommer</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-50" id="f0__s9__7__191" xml:lang="en">Kim Stratton</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-51" id="f0__s9__7__192" xml:lang="en">Jens Ãbro</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<arr:AddresseeOfAuditorsReportOnAuditedFinancialStatements contextRef="ctx-1" id="f0__s9__7__195" xml:lang="en">To the shareholders of Novozymes A/S (Novonesis A/S) </arr:AddresseeOfAuditorsReportOnAuditedFinancialStatements>
<arr:OpinionOnAuditedFinancialStatements contextRef="ctx-1" id="f0__s9__7__196" xml:lang="en">OpinionWe have audited the consolidated financial state-ments and the parent company financial state-ments of Novonesis A/S for the financial year January 1 â December 31, 2024, which comprise income statement, balance sheet, statement of changes in equity and notes, including material accounting policy information, for the Group and the Parent Company, and a consolidated statement of comprehensive income and a consolidated cash flow statement. The consolidated financial state-ments are prepared in accordance with IFRS Accounting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act, and the parent company financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the consolidated financial state-ments give a true and fair view of the financial posi-tion of the Group at December 31, 2024 and of the results of the Groupâs operations and cash flows for the financial year January 1 â December 31, 2024 in accordance with IFRS Accounting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act. Further, in our opinion the parent company finan-cial statements give a true and fair view of the financial position of the Parent Company at December 31, 2024 and of the results of the Parent Companyâs operations for the financial year January 1 â December 31, 2024 in accordance with the Danish Financial Statements Act. Our opinion is consistent with our long-form audit report to the Audit Committee and the Board of Directors. </arr:OpinionOnAuditedFinancialStatements>
<arr:DescriptionOfQualificationsOfAuditedFinancialStatements contextRef="ctx-1" id="f0__s9__7__197" xml:lang="en">Basis for opinionWe conducted our audit in accordance with International Standards on Auditing (ISAs) and additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the âAuditorâs responsibilities for the audit of the con-solidated financial statements and the parent company financial statementsâ (hereinafter col-lectively referred to as âthe financial statementsâ) section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. IndependenceWe are independent of the Group in accordance with the International Ethics Standards Board for Accountantsâ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these require-ments and the IESBA Code. To the best of our knowledge, we have not pro-vided any prohibited non-audit services as described in article 5(1) of Regulation (EU) no. 537/2014. Appointment of auditor We were initially appointed as auditor of Novonesis A/S at the annual general meeting on April 30, 2024 for the financial year 2024. </arr:DescriptionOfQualificationsOfAuditedFinancialStatements>
<arr:KeyAuditMattersAudit contextRef="ctx-1" id="f0__s9__7__198" xml:lang="en">Key audit matters Key audit matters are those matters that, in our professional judgement, were of most signifi-cance in our audit of the financial statements for the financial year 2024. These matters were addressed during our audit of the financial state-ments as a whole and in forming our opinion thereon. We do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled our responsibilities described in the âAuditorâs responsibilities for the audit of the financial statementsâ section, including in relation to the key audit matters below. Accordingly, our audit included the design and performance of procedures to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the financial statements. Key audit matterThe Chr. Hansen business combinationOn January 29, 2024, the merger between Novozymes A/S and Chr. Hansen Holding A/S was com-pleted and effected through the exchange of all shares of Chr. Hansen Holding A/S with newly issued shares in Novozymes A/S for a total consideration of EUR 9.1 billion. To account for the Chr. Hansen business combination, management prepared a purchase price allocation to recognise the fair value of the identifiable assets and liabilities acquired. Significant judgements and estimates have been exercised by management in preparing the pur-chase price allocation. These significant judgements and estimates mainly relate to identifying and assessing the fair value of acquired intangible assets, including technology related assets, strain library, research and development projects, customer relationships and brands, for which observable market prices are typically not available. Given the size of the acquisition and the level of manage-ment judgements and estimates involved, we considered the accounting for the Chr. Hansen busi-ness combination to be a key audit matter for the consolidated financial statements. The accounting policies and critical accounting estimates and disclosures about the Chr. Hansen business combination are included in Note 3.4 to the consolidated financial statements. How our audit addressed the key audit matterAs part of our audit, we have assessed the appropriateness of the accounting policies for business combinations applied by management compared to applicable accounting standards. We involved our internal specialists in assessing the valuation methodologies and key assumptions used by man-agement when assessing the fair value of the acquired assets including in particular intangible assets. We assessed the key assumptions applied by management by comparing these to available market data, underlying accounting records, supporting documentation, past performance of the acquired businesses and our experience from comparable transactions. We assessed the knowledge, skills, abilities, and objectivity of managementâs experts used in determining the fair value of the acquired assets and evaluated the work performed. We further considered the adequacy of disclosures pro-vided by management in the financial statements compared to applicable accounting standards. Key audit matterValuation of acquired intangible assets including goodwill (impairment tests)The Group has recognised significant intangible assets amounting to EUR 10.0 billion, including goodwill, technology and strain library, customer relationships and other intangibles acquired in con-nection with the Chr. Hansen business combination in 2024. The cash-generating units to which the acquired intangible assets including goodwill are allocated are impairment tested by management on an annual basis. The impairment tests are based on man-agementâs determination of value in use, which is based on the net present value of future cash flows applying estimates about key assumptions such as sales growth, adjusted EBITDA margins, discount rates and growth expectations. Due to the inherent uncertainty involved in determining the net present value of future cash flows, we considered the impairment tests used in the valuation of acquired intangible assets to be a key audit matter for the consolidated financial statements. The accounting policies and critical accounting estimates and disclosures about valuation of acquired intangible assets are included in Note 3.1 to the consolidated financial statements. How our audit addressed the key audit matterAs part of our audit, we have tested the mathematical accuracy of the discounted cash flow models used in determining the value in use and compared forecasted profitability to management approved budgets and long-term forecasts. We evaluated the assumptions and methodologies used in the discounted cash flow model, including those in relation to the forecasted sales growth and adjusted EBITDA margins, including comparing with historical sales growth rates. We compared the assumptions applied to externally derived data as well as our own assessments in relation to key assumptions such as long-term growth rates and discount rates. Further, we evaluated the sensitivity analysis on the key assumptions applied. We further considered the adequacy of disclosures pro-vided by management in the financial statements compared to applicable accounting standards. </arr:KeyAuditMattersAudit>
<arr:StatementOnManagementsReviewAuditorsReportOnAuditedFinancialStatements contextRef="ctx-1" id="f0__s9__7__199" xml:lang="en">Statement on the Managementâs review Management is responsible for the Managementâs review. Our opinion on the financial statements does not cover the Managementâs review, and we do not express any assurance conclusion thereon. In connection with our audit of the financial state-ments, our responsibility is to read the Managementâs review and, in doing so, consider whether the Managementâs review is materially inconsistent with the financial statements, or our knowledge obtained during the audit, or other-wise appears to be materially misstated. Moreover, it is our responsibility to consider whether the Managementâs review provides the information required by relevant law and regula-tions. This does not include the requirements in section 99a related to the sustainability statement covered by the separate auditorâs limited assur-ance report hereon. Based on our procedures, we conclude that the Managementâs review is in accordance with the financial statements and has been prepared in accordance with the require-ments of relevant law and regulations. We did not identify any material misstatement of the Managementâs review. </arr:StatementOnManagementsReviewAuditorsReportOnAuditedFinancialStatements>
<arr:StatementOfExecutiveAndSupervisoryBoardsResponsibilityForFinancialStatements contextRef="ctx-1" id="f0__s9__7__200" xml:lang="en">Managementâs responsibilities for the financial statements Management is responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act and for the preparation of parent company financial statements that give a true and fair view in accordance with the Danish Financial Statements Act. Moreover, Management is responsible for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstate-ment, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Groupâs and the Parent Companyâs ability to con-tinue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Group or the Parent Company or to cease operations, or has no realis-tic alternative but to do so. </arr:StatementOfExecutiveAndSupervisoryBoardsResponsibilityForFinancialStatements>
<arr:StatementOfAuditorsResponsibilityForAuditAndAuditPerformed contextRef="ctx-1" id="f0__s9__7__201" xml:lang="en">Auditorâs responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. As part of an audit conducted in accordance with ISAs and additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: ⢠Identify and assess the risks of material mis-statement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstate-ment resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, mis-representations or the override of internal control. ⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circum-stances, but not for the purpose of expressing an opinion on the effectiveness of the Groupâs and the Parent Companyâs internal control. ⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. ⢠Conclude on the appropriateness of Managementâs use of the going concern basis of accounting in preparing the financial state-ments and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Groupâs and the Parent Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Group and the Parent Company to cease to continue as a going concern. ⢠Evaluate the overall presentation, structure and contents of the financial statements, including the note disclosures, and whether the financial statements represent the under-lying transactions and events in a manner that gives a true and fair view. ⢠Plan and perform the group audit to obtain suf-ficient appropriate audit evidence regarding the financial information of the entities or busi-ness units within the group as a basis for form-ing an opinion on the group financial state-ments and the parent company financial statements. We are responsible for the direc-tion, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with gov-ernance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with rele-vant ethical requirements regarding independ-ence, and to communicate with them all relation-ships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements and the parent company financial statements of the cur-rent period and are therefore the key audit mat-ters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter. </arr:StatementOfAuditorsResponsibilityForAuditAndAuditPerformed>
<arr:AuditorsReportOnXbrlTagging contextRef="ctx-1" id="f0__s9__7__202" xml:lang="en">Report on compliance with the ESEF Regulation As part of our audit of the Consolidated Financial Statements and Parent Company Financial Statements of Novonesis A/S, we performed pro-cedures to express an opinion on whether the annual report of Novonesis A/S for the financial year January 1 â December 31, 2024 with the file name NOVOZYMES-2024-12-31-en.zip is prepared, in all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) which includes requirements related to the preparation of the annual report in XHTML for-mat and iXBRL tagging of the Consolidated Financial Statements including notes. Management is responsible for preparing an annual report that complies with the ESEF Regulation. This responsibility includes: ⢠The preparing of the annual report in XHTML format; ⢠The selection and application of appropriate iXBRL tags, including extensions to the ESEF taxonomy and the anchoring thereof to ele-ments in the taxonomy, for all financial infor-mation required to be tagged using judge-ment where necessary; ⢠Ensuring consistency between iXBRL tagged data and the Consolidated Financial Statements presented in human readable for-mat; and ⢠For such internal control as Management determines necessary to enable the prepara-tion of an annual report that is compliant with the ESEF Regulation. Our responsibility is to obtain reasonable assur-ance on whether the annual report is prepared, in all material respects, in compliance with the ESEF Regulation based on the evidence we have obtained, and to issue a report that includes our opinion. The nature, timing and extent of proce-dures selected depend on the auditorâs judge-ment, including the assessment of the risks of material departures from the requirements set out in the ESEF Regulation, whether due to fraud or error. The procedures include: Testing whether the annual report is prepared in XHTML format; ⢠Obtaining an understanding of the companyâs iXBRL tagging process and of internal control over the tagging process; ⢠Evaluating the completeness of the iXBRL tag-ging of the Consolidated Financial Statements including notes; ⢠Evaluating the appropriateness of the compa-nyâs use of iXBRL elements selected from the ESEF taxonomy and the creation of extension elements where no suitable element in the ESEF taxonomy has been identified; ⢠Evaluating the use of anchoring of extension elements to elements in the ESEF taxonomy; and ⢠Reconciling the iXBRL tagged data with the audited Consolidated Financial Statements. In our opinion, the annual report of Novonesis A/S for the financial year January 1 â December 31, 2024 with the file name NOVOZYMES-2024-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation. </arr:AuditorsReportOnXbrlTagging>
<arr:SignatureOfAuditorsPlace contextRef="ctx-1" id="f0__s9__7__203" xml:lang="en">Copenhagen</arr:SignatureOfAuditorsPlace>
<arr:SignatureOfAuditorsDate contextRef="ctx-1" id="f0__s9__7__204">2025-02-26</arr:SignatureOfAuditorsDate>
<cmn:NameOfAuditFirm contextRef="ctx-52" id="f0__s9__7__205" xml:lang="en">EY Godkendt Revisionspartnerselskab </cmn:NameOfAuditFirm>
<cmn:NameOfAuditFirm contextRef="ctx-53" id="f0__s9__7__206" xml:lang="en">EY Godkendt Revisionspartnerselskab </cmn:NameOfAuditFirm>
<cmn:IdentificationNumberCvrOfAuditFirm contextRef="ctx-52" id="f0__s9__7__207">30700228</cmn:IdentificationNumberCvrOfAuditFirm>
<cmn:IdentificationNumberCvrOfAuditFirm contextRef="ctx-53" id="f0__s9__7__208">30700228</cmn:IdentificationNumberCvrOfAuditFirm>
<cmn:NameAndSurnameOfAuditor contextRef="ctx-52" id="f0__s9__7__209" xml:lang="en">Henrik Kronborg Iversen </cmn:NameAndSurnameOfAuditor>
<cmn:DescriptionOfAuditor contextRef="ctx-52" id="f0__s9__7__210" xml:lang="en">State Authorised Public Accountant </cmn:DescriptionOfAuditor>
<cmn:IdentificationNumberOfAuditor contextRef="ctx-52" id="f0__s9__7__211">mne24687</cmn:IdentificationNumberOfAuditor>
<cmn:NameAndSurnameOfAuditor contextRef="ctx-53" id="f0__s9__7__212" xml:lang="en">Jens Thordahl Nøhr </cmn:NameAndSurnameOfAuditor>
<cmn:DescriptionOfAuditor contextRef="ctx-53" id="f0__s9__7__213" xml:lang="en">State Authorised Public Accountant </cmn:DescriptionOfAuditor>
<cmn:IdentificationNumberOfAuditor contextRef="ctx-53" id="f0__s9__7__214">mne32212</cmn:IdentificationNumberOfAuditor>
<arr:AuditorsReportOnSubstainabilityReport contextRef="ctx-1" id="f0__s9__7__216" xml:lang="en">Independent Auditorâs limited assurance report on the Sustainability statementTo the shareholders of Novozymes A/S (Novonesis A/S)Limited assurance conclusion We have conducted a limited assurance engage-ment on the Sustainability statement of Novonesis A/S (the group ) included in the Annual Report 2024, pages 50-119 (the sustainability statement), for the financial year January 1 â December 31, 2024 including disclosures incorporated by refer-ence listed in the table âDisclosure requirements and incorporation by referenceâ on pages 115-117. Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the sustainability statement is not prepared, in all material respects, in accordance with the Danish Financial Statements Act section 99a, including: ⢠compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by management to iden-tify the information reported in the sustainabil-ity statement (the process) is in accordance with the description set out in the chapters âDouble Materiality Assessmentâ and âImpacts, risks and opportunitiesâ, within the âGeneralâ section on pages 60-69 and ⢠compliance of the disclosures in the chapter âEU Taxonomyâ, within the environmental sec-tion on pages 71-75 of the sustainability state-ment with Article 8 of EU Regulation 2020/852 (the Taxonomy Regulation). Basis for conclusion We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance engagements other than audits or reviews of historical financial information (ISAE 3000 (Revised)) and the additional requirements applicable in Denmark. The procedures in a limited assurance engage-ment vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assur-ance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Our responsibilities under this standard are further described in the Auditor's responsibilities for the assurance engagement section of our report. Our independence and quality management We are independent of the group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accordance with these require-ments and the IESBA Code. EY Godkendt Revisionspartnerselskab applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management includ-ing policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Inherent limitations in preparing the sustainabil-ity statement In reporting forward-looking information in accordance with ESRS, management is required to prepare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the group. Actual outcomes are likely to be different since anticipated events frequently do not occur as expected. Management's responsibilities for the sustaina-bility statement Management is responsible for designing and implementing a process to identify the information reported in the sustainability statement in accord-ance with the ESRS and for disclosing this process in the chapters âDouble Materiality Assessmentâ and âImpacts, risks and opportunitiesâ, within the âGeneralâ section on pages 60-69 of the sustaina-bility statement. This responsibility includes: ⢠understanding the context in which the group's activities and business relationships take place and developing an understanding of its affected stakeholders; ⢠the identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and opportunities that affect, or could reasonably be expected to affect, the group's financial position, financial performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term; ⢠the assessment of the materiality of the identi-fied impacts, risks and opportunities related to sustainability matters by selecting and apply-ing appropriate thresholds; and ⢠making assumptions that are reasonable in the circumstances. Management is further responsible for the prepa-ration of the sustainability statement, in accord-ance with the Danish Financial Statements Act section 99a, including: ⢠compliance with the ESRS; ⢠preparing the disclosures in the chapter âEU Taxonomyâ, within the environmental section on pages 71-75 of the sustainability statement, in compliance with Article 8 of the Taxonomy Regulation; ⢠designing, implementing and maintaining such internal control that management determines is necessary to enable the preparation of the sustainability statement that is free from material misstatement, whether due to fraud or error; and ⢠the selection and application of appropriate sustainability reporting methods and making assumptions and estimates that are reasona-ble in the circumstances. Auditor's responsibilities for the assurance engagement Our objectives are to plan and perform the assur-ance engagement to obtain limited assurance about whether the sustainability statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence deci-sions of users taken on the basis of the sustaina-bility statement as a whole. As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional judgement and maintain professional scepticism throughout the engagement. Our responsibilities in respect of the process include: ⢠Obtaining an understanding of the process but not for the purpose of providing a conclu-sion on the effectiveness of the process, including the outcome of the process; ⢠Considering whether the information identi-fied addresses the applicable disclosure requirements of the ESRS, and ⢠Designing and performing procedures to eval-uate whether the process is consistent with the group's description of its process, as dis-closed in the chapters âDouble Materiality Assessmentâ and âImpacts, risks and opportu-nitiesâ, within the âGeneral requirementsâ sec-tion on pages 60-69. Our other responsibilities in respect of the sus-tainability statement include: ⢠Identifying disclosures where material mis-statements are likely to arise, whether due to fraud or error; and ⢠Designing and performing procedures responsive to disclosures in the sustainability statement where material misstatements are likely to arise. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, inten-tional omissions, misrepresentations, or the override of internal control. Summary of the work performed A limited assurance engagement involves per-forming procedures to obtain evidence about the sustainability statement. The nature, timing and extent of procedures selected depend on professional judgement, including the identification of disclosures where material misstatements are likely to arise, whether due to fraud or error, in the sustainability statement. In conducting our limited assurance engagement, with respect to the process, we: ⢠Obtained an understanding of the process by performing inquiries to understand the sources of the information used by manage-ment; and reviewing the group's internal docu-mentation of its process; and ⢠Evaluated whether the evidence obtained from our procedures about the process imple-mented by the group's was consistent with the description of the process set out in the chap-ters âDouble Materiality Assessmentâ and âImpacts, risks and opportunitiesâ, within the âGeneralâ section on pages 60-69. In conducting our limited assurance engagement, with respect to the sustainability statement, we: ⢠Obtained an understanding of the Groupâs reporting processes relevant to the prepara-tion of its sustainability statement including the consolidation processes by obtaining an understanding of the Groupâs control environ-ment, processes and information systems rel-evant to the preparation of the sustainability statement, but not evaluating the design of particular control activities, obtaining evi-dence about their implementation or testing their operating effectiveness; ⢠Evaluated whether material information identi-fied by the process is included in the sustaina-bility statement; ⢠Evaluated whether the structure and the pres-entation of the sustainability statements is in accordance with the ESRS; ⢠Performed inquiries of relevant personnel and analytical procedures on selected information in the sustainability statement; ⢠Performed substantive assurance procedures on selected information in the sustainability statement; ⢠Evaluated methods, assumptions and data for developing material estimates and for-ward-looking information and how these methods were applied; ⢠Obtained an understanding of the process to identify EU taxonomy economic activities for turnover, CAPEX and OPEX and the corre-sponding disclosures in the sustainability statement; ⢠Evaluated the presentation and use of EU tax-onomy templates in accordance with relevant requirements; and ⢠Reconciled and ensured consistency between the reported EU taxonomy economic activities and the items reported in the primary financial statements including the disclosures provided in related notes. </arr:AuditorsReportOnSubstainabilityReport>
<arr:AddresseeOfAuditorsReportOnSubstainabilityReports contextRef="ctx-1" id="f0__s9__7__217" xml:lang="en">To the shareholders of Novozymes A/S (Novonesis A/S)</arr:AddresseeOfAuditorsReportOnSubstainabilityReports>
<arr:IdentificationOfMattersOnWhichAssuranceReportIsProvidedAndDescriptionOfAssuranceEngagementSubstainabilityReport contextRef="ctx-1" id="f0__s9__7__218" xml:lang="en">We have conducted a limited assurance engage-ment on the Sustainability statement of Novonesis A/S (the group ) included in the Annual Report 2024, pages 50-119 (the sustainability statement), for the financial year January 1 â December 31, 2024 including disclosures incorporated by refer-ence listed in the table âDisclosure requirements and incorporation by referenceâ on pages 115-117. </arr:IdentificationOfMattersOnWhichAssuranceReportIsProvidedAndDescriptionOfAssuranceEngagementSubstainabilityReport>
<arr:OpinionOnSubjectMatterOfAssuranceReportSubstainabilityReport contextRef="ctx-1" id="f0__s9__7__219" xml:lang="en">Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the sustainability statement is not prepared, in all material respects, in accordance with the Danish Financial Statements Act section 99a, including: ⢠compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by management to iden-tify the information reported in the sustainabil-ity statement (the process) is in accordance with the description set out in the chapters âDouble Materiality Assessmentâ and âImpacts, risks and opportunitiesâ, within the âGeneralâ section on pages 60-69 and ⢠compliance of the disclosures in the chapter âEU Taxonomyâ, within the environmental sec-tion on pages 71-75 of the sustainability state-ment with Article 8 of EU Regulation 2020/852 (the Taxonomy Regulation). </arr:OpinionOnSubjectMatterOfAssuranceReportSubstainabilityReport>
<arr:StatementOfAuditorsResponsibilitySubstainabilityReport contextRef="ctx-1" id="f0__s9__7__220" xml:lang="en">Our objectives are to plan and perform the assur-ance engagement to obtain limited assurance about whether the sustainability statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence deci-sions of users taken on the basis of the sustaina-bility statement as a whole. As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional judgement and maintain professional scepticism throughout the engagement. Our responsibilities in respect of the process include: ⢠Obtaining an understanding of the process but not for the purpose of providing a conclu-sion on the effectiveness of the process, including the outcome of the process; ⢠Considering whether the information identi-fied addresses the applicable disclosure requirements of the ESRS, and ⢠Designing and performing procedures to eval-uate whether the process is consistent with the group's description of its process, as dis-closed in the chapters âDouble Materiality Assessmentâ and âImpacts, risks and opportu-nitiesâ, within the âGeneral requirementsâ sec-tion on pages 60-69. Our other responsibilities in respect of the sus-tainability statement include: ⢠Identifying disclosures where material mis-statements are likely to arise, whether due to fraud or error; and ⢠Designing and performing procedures responsive to disclosures in the sustainability statement where material misstatements are likely to arise. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, inten-tional omissions, misrepresentations, or the override of internal control. </arr:StatementOfAuditorsResponsibilitySubstainabilityReport>
<arr:SignatureOfSubstainabilityAuditorsPlace contextRef="ctx-1" id="f0__s9__7__221" xml:lang="en">Copenhagen</arr:SignatureOfSubstainabilityAuditorsPlace>
<arr:SignatureOfSubstainabilityAuditorsDate contextRef="ctx-1" id="f0__s9__7__222">2025-02-26</arr:SignatureOfSubstainabilityAuditorsDate>
<cmn:NameOfAuditFirmSubstainability contextRef="ctx-54" id="f0__s9__7__223" xml:lang="en">EY Godkendt Revisionspartnerselskab </cmn:NameOfAuditFirmSubstainability>
<cmn:NameOfAuditFirmSubstainability contextRef="ctx-55" id="f0__s9__7__224" xml:lang="en">EY Godkendt Revisionspartnerselskab </cmn:NameOfAuditFirmSubstainability>
<cmn:IdentificationNumberCvrOfAuditFirmSubstainability contextRef="ctx-54" id="f0__s9__7__225">30700228</cmn:IdentificationNumberCvrOfAuditFirmSubstainability>
<cmn:IdentificationNumberCvrOfAuditFirmSubstainability contextRef="ctx-55" id="f0__s9__7__226">30700228</cmn:IdentificationNumberCvrOfAuditFirmSubstainability>
<cmn:NameAndSurnameOfSubstainabilityAuditor contextRef="ctx-54" id="f0__s9__7__227" xml:lang="en">Henrik Kronborg Iversen </cmn:NameAndSurnameOfSubstainabilityAuditor>
<cmn:DescriptionOfSubstainabilityAuditor contextRef="ctx-54" id="f0__s9__7__228" xml:lang="en">State Authorised Public Accountant </cmn:DescriptionOfSubstainabilityAuditor>
<cmn:fIdentificationNumberOfSubstainabilityAuditor contextRef="ctx-54" id="f0__s9__7__229">mne24687</cmn:fIdentificationNumberOfSubstainabilityAuditor>
<cmn:NameAndSurnameOfSubstainabilityAuditor contextRef="ctx-55" id="f0__s9__7__230" xml:lang="en">Lars Fermann </cmn:NameAndSurnameOfSubstainabilityAuditor>
<cmn:DescriptionOfSubstainabilityAuditor contextRef="ctx-55" id="f0__s9__7__231" xml:lang="en">State Authorised Public Accountant </cmn:DescriptionOfSubstainabilityAuditor>
<cmn:fIdentificationNumberOfSubstainabilityAuditor contextRef="ctx-55" id="f0__s9__7__232">mne45879</cmn:fIdentificationNumberOfSubstainabilityAuditor>
<gsd:InformationOnTypeOfSubmittedReport contextRef="ctx-1" id="f0__s1__72__15">Annual report</gsd:InformationOnTypeOfSubmittedReport>
<cmn:TypeOfAuditorAssistance contextRef="ctx-1" id="f0__s1__72__16">Auditor's report on audited financial statements</cmn:TypeOfAuditorAssistance>
<gsd:ToolForPreparingTheXBRLInstanceDocument contextRef="ctx-1" id="f0__s1__72__17" xml:lang="en">ParsePort XBRL Converter</gsd:ToolForPreparingTheXBRLInstanceDocument>
<gsd:ReportingPeriodStartDate contextRef="ctx-1" id="f0__s1__72__20">2024-01-01</gsd:ReportingPeriodStartDate>
<gsd:ReportingPeriodEndDate contextRef="ctx-1" id="f0__s1__72__21">2024-12-31</gsd:ReportingPeriodEndDate>
<gsd:PrecedingReportingPeriodStartDate contextRef="ctx-1" id="f0__s1__72__22">2023-01-01</gsd:PrecedingReportingPeriodStartDate>
<gsd:PredingReportingPeriodEndDate contextRef="ctx-1" id="f0__s1__72__23">2023-12-31</gsd:PredingReportingPeriodEndDate>
<gsd:LegalEntityIdentifierOfReportingEntity contextRef="ctx-1" id="f0__s1__72__42">529900T6WNZXD2R3JW38</gsd:LegalEntityIdentifierOfReportingEntity>
<fsa:ClassOfReportingEntity contextRef="ctx-1" id="f0__s1__72__43">Reporting class D</fsa:ClassOfReportingEntity>
<gsd:IdentificationNumberCvrOfReportingEntity contextRef="ctx-1" id="f0__s1__72__44">10007127</gsd:IdentificationNumberCvrOfReportingEntity>
<arr:TypeOfModifiedOpinionOnAuditedFinancialStatements contextRef="ctx-1" id="f0__s1__72__47">Opinion</arr:TypeOfModifiedOpinionOnAuditedFinancialStatements>
<arr:TypeOfBasisForModifiedOpinionOnAuditedFinancialStatements contextRef="ctx-1" id="f0__s1__72__48">Basis for Opinion</arr:TypeOfBasisForModifiedOpinionOnAuditedFinancialStatements>
</xbrli:xbrl>