Your SlideShare is downloading. ×
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
2008 Novus Sustainability Report
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

2008 Novus Sustainability Report

735

Published on

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
735
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
11
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  1. 2008 Sustainability Report
  2. Contents COMPANY PROFILE ................................................................................. 3 MESSAGE FROM THE PRESIDENT ....................................................... 6 SCOPE OF REPORT .................................................................................. 8 VISION FOR SUSTAINABILITY ........................................................... 10 INDUSTRY CHALLENGES, ACTIONS AND FUTURE PLANS ........ 11 CRITICAL SUCCESS FACTORS ............................................................ 13 GROWTH ............................................................................................. 13 PROFITABILITY ................................................................................. 15 PEOPLE ................................................................................................. 18 REPUTATION ...................................................................................... 20 SUMMARY ................................................................................................ 24 ABBREVIATIONS, REFERENCES, AND TABLES ............................. 25 GRI INDEX ................................................................................................ 26 CONTACT US ........................................................................................... 28 | NOVUS International
  3. Novus International, Inc. is a global leader in creating science-based health and nutrition solutions. Over 2,500 clients in more than 80 countries trust the Novus product family to be an integral part of their daily animal agricultural operations. The company is privately owned by Mitsui Co. (U.S.A.), Inc. and Nippon Soda Co., Ltd. and is headquartered in the Saint Louis, Missouri, USA area. Novus’s Mission is to “help feed the world affordable, wholesome food.” to deliver sustainable solutions that improve performance for ourCompany Profile customers. We feel a deep responsi- bility to transfer the knowledge we gain as well as the technology and At Novus, we believe that sound innovations we develop to people research development is the foun- around the world who can use them dation for success in developing and to improve agricultural practices in delivering solutions to customers. their local communities. We believe in Performance through Novus provides products and Innovation, which is why we employ programs for the poultry, pork, dairy, more than 50 scientists, engineers, beef, equine, and companion animal nutritionists and Doctors of Veterinary industries. At the end of fiscal year Medicine to create new products and 2008 (March 31, 2008), Novus had programs. In addition to our in-house approximately 400 employees located expertise, Novus has developed a in 20 different countries, selling close global network of university profes- to 70 products to support livestock sors and academics, which helps performance, improved animal well- to ensure that our products are being, food safety and the environ- grounded in science and fact. Novus’s ment. Our products promote nutrition primary research development and health, and can be divided into center is located at the company’s technology platforms: amino acids, headquarters near Saint Louis, but organic acids, organic trace minerals, we also employ a global network of antioxidants, vaccines, mycotoxin university and industry collaborators control, and enzymes and yeasts. For to develop and test solutions for local specific information about Novus, its needs. products and solutions, please visit As Novus continues to grow, we our Web site at www.novusint.com. will continue to expand our profes- Novus continues to grow through sional networks and affiliations the innovation and performance Company Profile |
  4. l Global Headquarters of its key product lines and with the guidance of senior management l Regional Headquarters and its Board of Directors. Under l Manufacturing Plant the guidance of President and CEO l Major Sales Office Thad W. Simons Jr., Novus respon- l Research Facility sibly grew sales to more than $700 million in fiscal year 2008. With the support of our parent companies and the Chairman of the Board, Shinji Tsuchyia, Novus has been successful in expanding its business by devel- oping and providing safe, environmen- tally-friendly products and solutions that improve our customers’ business performance. Novus Corporate Governance Statement Corporate governance at Novus International, Inc. is the responsi- North America South America Asia - Pacific Beaumont, Texas, USA Bogotá, Colombia Bangkok, Thailand bility of the Board of Directors. The Chocolate Bayou, Texas, USA Buenos Aires, Argentina Beijing, China Novus Board represents the inter- Lincoln, Nebraska, USA Caracas, Venezuela Hyderabad, India ests of the Novus shareholders and Little Rock, Arkansas, USA Indaiatuba, Brazil Jakarta, Indonesia stakeholders, including employees, Mexico City, Mexico Porto Alegre, Brazil Seoul, South Korea Ottawa, Ontario, Canada Santiago, Chile Shanghai, China customers and the public. The Novus Saint Charles, Missouri, USA Europe Singapore Board, with the advice of the execu- Bergamo, Italy Sydney, Australia tive management team, determines Brussels, Belgium Yunnan, China the company’s long-term strategy, Gudensburg, Germany while the Novus management team Madrid, Spain Nantes, France defines the company’s short-term Warsaw, Poland strategies and handles day-to-day business and operations. In 1998, the Novus Board of Direc-Novus products responsibly serve all of animal agriculture Novus’s health and nutrition products and the gut and metabolic processes to develop, products to help producers improve the programs serve virtually all of animal agricul- manufacture and support multiple lines health and nutrition of dairy cows. Based ture –designed with our goal of sustainability of nutritional and health products for the on sound scientific research, our products in mind. Novus’s programs consist of tailored, poultry industry. Novus serves the broiler, are safe, reliable, and efficacious. Novus complementary combinations of products broiler breeder, game bird, layer, turkey, provides products and solutions for the and services to maximize its customer’s turkey breeder and duck segments. transition, early-lactation, mid-lactation, performance, addressing concerns such late-lactation and replacement heifer as gut health and oxidative balance. These Swine markets. programs take advantage of the science, Novus has developed a unique range skills and knowledge at Novus to address of programs for pork producers to support Beef concerns in all the markets we serve. animal health and performance. Novus can Novus’s complete production cycle help producers improve animal wellbeing, programs and products for livestock deliver Poultry increase performance rates, and direct optimal animal health and performance. Novus has a broad range of complete feed to high-value, lean gain. Novus serves Novus helps producers effectively manage production cycle programs and products to the swine nursery, growing, grow-finish, the health of their cattle from calf to feedlot, meet the needs of modern poultry produc- finishing and sow segments. ultimately improving their bottom lines. tion. Novus has over five decades of basic Novus provides products for cow/calf oper- and applied research, development and Dairy ations, feedlots, stockers, backgrounders manufacturing expertise in amino acids and Novus offers a diverse family of and for the receiving markets segments. antioxidants. We utilize our understanding of complete production cycle programs and | NOVUS International
  5. Overall growth since 2002 Novus Board has made clear through the NIS and other Novus policies and procedures that the companyFY 02 Debt to Equity ratio will strive at all times to make deci- sions that are not only lawful but also 2008 ~1.3 morally and ethically sound.FY 03 In 2005, the Board chartered the Novus Compliance Committee,FY 04 comprised of all members of Novus’sFY 05 senior management team as well as shareholder representatives.FY 06 The purpose of this committee is to review and evaluate complianceFY 07 issues and concerns throughout the Novus organization. It also focusesFY 08 on prevention, detection, response and security, as well as to propose 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 actions for the continuous improve- ment of Novus’s business manage- (USD 000) ment and operations. The matters within the scope of the Compliance Sales by Region FY08 tors approved and adopted the Novus Committee’s review include all legal Integrity System (NIS), containing and regulatory matters that impact Australia written policies to ensure that all or may impact Novus’s operations employees understand that good worldwide. The Committee also Latin America ethics and good business are synony- oversees compliance and conformity North America mous when viewed from moral, by Novus with the requirements of legal and practical standpoints. The organizations in which the company Asia NIS is a constant reminder of the maintains memberships and for Board’s commitment to corporate and standards, policies or programs to EAME personal integrity, and prompts every which Novus subscribes. The Compli- employee of the need to conduct the ance Committee manages compli- business of Novus within the ethical ance issues and reports to the Board framework adopted by the Board. The on a periodic basis.Aquaculture bilities in the equine, pet, human and other ingredients (i.e. MINTREX, ZORIEN and Novus Aqua is dedicated to developing non-food animal markets. NNB is focused MHA).products with performance and innovation on developing and delivering unique,that exceed customers’ expectations in the value-added products and technologies that Novus Pet Nutrition (NPN)global aquaculture market. Novus Aqua can optimize the health, performance and Novus Pet Nutrition serves pet food manu-focuses its efforts on providing products and longevity of individual animals or people. NNB facturers and ingredient suppliers to the petservices based on sound scientific studies. is divided into three distinct business areas: food industry. Novus Pet Nutrition productsWe are sensitive to current and future social, are animal health solutions that include plat-economic, and environmental conditions. Arenus: forms for the improvement of gut health andWe offer efficient alternatives, products, ARENUS is the umbrella brand for a line reduction in oxidative stress. Novus Pet Nutri-and services for sustainable aquaculture of finished dose form equine, canine and tion products include organic trace minerals,and business practices. Novus products and feline dietary supplements. Arenus products methionine analogues, antioxidants, omega-3programs address nutrition, health and the are marketed to horse and pet owners and fatty acids, enzymes and others.environment through water treatment, probi- are sold through veterinarians, select retailotics, hatchery products, fish meal replace- affiliates and direct to consumers via www. Novus Human Nutrition (NHN)ment and sustainable antibiotic-free culture. arenusperformance.com. The first product Novus Human Nutrition has been group sold under the ARENUS brand is chartered to develop and deliver unique,Novus Nutrition Brands STEADFAST by ARENUS, a line of structural science-based products and services to Novus Nutrition Brands (NNB) is a health products. STEADFAST products other businesses within the human dietarysegment of Novus with marketing responsi- leverage the science of Novus’s proprietary supplement and food industries. Company Profile |
  6. I’m proud to say that this is Novus’s first ever Sustainability Report and that we will be following the G3 Guidelines set out by the Global Reporting Initiative. Even so, monitoring environmental, economic, and social factors were a part of our core values from the inception of our company back in 1991. meet the global challenges facing Message from the President animal production. Animal wellbeing, efficiencies of production, food safety and environmental issues are impor- tant challenges and critical to our Novus is very much a customer- customers. If properly addressed, focused company. With a reputation they provide benefits for all stake- built on quality and reliability, we holders, not just Novus. We positively strive to exceed customer expec- influence the industry by supporting tations. We make every possible a shift towards responsible produc- effort to maintain or improve our tion of food through using fewer corporate citizenship on a global resources and offering animal protein basis, each day earning the business producers options to reduce their of our customers and the respect environmental impact. of our stakeholders. We do this by supporting and promoting compli- Critical Success Factors ance with laws, regulations and At our annual 2008 strategic voluntary industry standards that planning conference, we identified protect our community, workplace four factors critical to the future and the environment. success of Novus: Growth, Profit- Corporate Social Responsibility ability, People and Reputation. (CSR) or Sustainability has become Novus decided to build on these an increasingly important part of four factors, developing strategies doing business. We understand that and tactics to meet our goals as an for Novus to be successful, we must organization while providing benefits Thad Simons Jr., President ensure that our sustainability values to our stakeholders in a sustainable are embedded in every employee’s manner. These factors are guideposts daily activities — what employees to our people and help us deliver on want in order to improve Novus’s our ethical, social and environmental outlook. This ‘natural symbiosis’ responsibilities while operating with between company and employee fiscal accountability. activities builds new, repeatable and sustainable business practices that Serious about food safety help achieve the goal of “meeting the Looking first at food safety, Novus needs of the present without compro- is very serious about this concern mising the ability of future genera- and realizes that it is a global public tions to meet their own needs. 1 ” health issue. Outbreaks of food-borne This report intends to outline our disease have been documented recent sustainability efforts as well on every continent within the past as endeavors to make sure we are decade, some with devastating always acting in the best interests of social and economic consequences. our stakeholders. Sustainability at Producers at every level of the food Novus is founded on the triple bottom supply chain are being called upon line: social, economic and environ- to actively participate in the delivery mental factors. While the environ- of safe products to the public. At the mental and social factors are vital same time, consumers want to mini- to satisfying the demands of stake- mize the use of antibiotic drugs. holders, they also must be economi- Safe food begins at the farm cally justified to be sustainable. level. As an example, Novus’s We strive to assist our customers gastrointestinal health products in finding sustainable solutions to used in drinking water and/or feed | NOVUS International
  7. balancing environmental concerns. We are committed to protecting the environment in all areas where we conduct business. Our organization works through scientific research and development. We do this both by using our own scientists and on a larger scale, our global partnerships with university and independent scientists and experts – to create nutritional programs that reduce the environmental impact of animal agriculture. Novus raises standards of animal wellbeing The wellbeing of farm animals is an increasingly important public andSection headline here, please. political issue throughout the world and is important from both ethical and business perspectives. Animals in less stressful environments have help reduce the colonization of better performance, a lower occur- salmonella in poultry and swine. rence of disease, and higher repro- The animals are healthier, resulting duction rates. in enhanced animal comfort and Novus collaborates with optimum production efficiency. producers throughout the world to Used in combination with our raise the standards of animal well- coccidiostat, poultry can be effi- being. For example, Novus worked ciently produced in a drug-free with a leading poultry producer environment. to improve the quality of life for turkeys that were experiencing high Safe sourcing of rates of structural abnormalities ingredients and mortality associated with rapid growth. To approach this common Safe sourcing of product ingredi- challenge for poultry producers, ents is particularly important for the Novus created a customized nutri- global food chain. Novus has a high tional strategy. The result: More than quality network of vendors supplying a 40% overall decreased occurrence the ingredients for our products, of foot pad lesions, leg weakness and in many cases we manufacture and leg fracture. With this signifi- the ingredients ourselves. Novus cant increase in structural health, maintains traceability in all products the animals were able to express we produce, so producers can rest normal behavior and had greater assured that their animal nutrients alertness, mobility and freedom are safe. of movement. In addition to these Novus offers solutions for anti- health benefits, the producer microbial safety. Our antimicrobial increased his profitability. products reduce pathogens, mold In summary, we are delivering and resulting mycotoxins. To be clear, a “triple bottom line. As we look ” Novus’s solutions for health and towards the future, Novus’s goals safety do not contain antibiotics. We and objectives will include contin- enable producers to competitively uous improvements to build on increase performance and profits our exceptional performance and through the use of antibiotic-free creation of business practices that health and nutrition programs. are truly sustainable, which will help Novus also strives to help to feed the world affordable whole- producers meet the nutritional some food and achieve a higher demands of modern livestock while quality of life. Message from the President |
  8. Novus believes that doing business sustainably is an ongoing process, and we are committed to embedding and implementing sustainable practices in our everyday activities. This report covers Novus International, Inc. and its major subsidiaries from 1 January, 2007 to 30 June, 2008. It is prepared for all stakeholders, including business partners, customers, residents of our local communities, government agencies, non-governmental organizations (NGOs), and our employees. Section headline here, please. ence. Changes in these activities will require ongoing cooperation with Scope of Report our customers, suppliers, and value chain partners. These changes offer all parties opportunities to improve the In this report, we describe Novus’s “triple bottom line. ” approach to sustainability, relevant The specific topics within the spec- data, programs, projects and key trum of activities on which Novus can activities we are executing. This focus its efforts are the environment, includes Novus’s activities in procure- food safety, animal wellbeing and ment, manufacturing, distribution performance. These have been four and sales of products that are directly tenets of Novus’s operations almost under the control of Novus’s manage- since inception and are critical to our ment. Often, Novus can measure, industry and stakeholders. estimate and assess the benefits and This report describes and reviews burdens that result from our actions. activities and topics that Novus has Where sustainable benefits are avail- pursued, in line with our Vision, able and it is appropriate for Novus Mission and Core Values. Topics, to influence their capture, we can projects and proposals for future institute improvements. action will expand and continue to This report covers selected activi- evolve within the company. They will ties along the value chains that are take into account relevant, current controlled by Novus, but not directly issues relating Novus’s activities and managed by us. These are activi- our relationship with stakeholders. ties that Novus has identified both In the future, it is possible that topics as important and that we can influ- and projects could be presented and | NOVUS International
  9. discussed with external stakeholders staff, distributors, consultants and to ensure that we are focused on the any other non-permanent employees items of greatest impact for the indus- working with Novus under long- or tries in which we operate. short-term contracts (e.g., consul- Over time, Novus will be able tants). to develop a basis for deriving Key Environmental parameters in Performance Indica- this report and on our website are tors (KPIs) that can calculated from the data supplied by be used to monitor Novus’s production sites. Most of the progress in sustain- data reported has been recorded by ability activities and Novus staff or corporate management reporting. Reporting teams as part of our normal manage- will likely be based ment processes. Some, such as ‘Total on information held workforce by employment type, (or already reported) employment contract, and region’ and by corporate offices ‘Operations identified as having signif- and on informa- icant risk for incidents of child labor, tion gathered from and measures taken to contribute the businesses and to the elimination of child labor’ are operating compa- gathered specifically for this report. nies that are fully owned by Novus. All the data was checked, collated and Acquisitions will be included in future confirmed by Novus management. sustainability reports when they are Assembly and reporting of the 100% owned by Novus before the end above data and activities constitute of our fiscal year, which is currently qualification for Report Application 31 March. Divestments during a fiscal Level C of the current guidelines of the year and activities or operations of Global Reporting Initiative (G3). A GRI Novus’s contract manufacturers and index and an Application Level Grid distributors are not included in this on pages 26-27 list the performance sustainability report. A review of indicators reported in this sustain- our agreements will be made and a ability report. future determination provided as to Novus is also addressing issues Novus’s ability to report on third party that are external to the boundaries manufacturing partner’s operations or of its activities and includes activities activities. such as support for advanced degrees Statistics on social data reported, in agricultural education, certification such as number of employees, relate programs, environmental funding and to all Novus sites, excluding agency partnerships, and responsible andHow Novus helps customersEnvironment past decade, some with devastating economic Performance Novus strives to help producers meet and social consequences. Producers at every Performance can be measured in manythe nutritional demands of modern livestock level of the food supply chain are being called ways and has many different definitions. Atwhile balancing environmental concerns. We upon to actively participate in the delivery of Novus, we focus on things that matter to ourare committed to protecting the environment safe products to the public. customers. Challenges that customers facein all areas where we conduct business. can come from many directions: economic,The organization works, through scientific Animal Wellbeing the environment, competitors, regulators,research and development, to create nutri- The wellbeing of farm animals is an consumers, and their own internal hurdles.tional programs that reduce the environmental increasingly important public and political Given the global nature of our business andimpact of animal agriculture. issue throughout the world and is important variation of the issues across species we from both ethical and business perspectives. serve, Novus has many opportunities to helpFood Safety Animals in less stressful environments have our customers. Food safety is a global public health issue. better performance, a lower occurrence ofOutbreaks of food-borne disease have been disease and higher reproduction rates.documented on every continent within the Scope of Report |
  10. As we finish our first 17 years, we have created a global organization with strong commitments to sustainable business practices. We will continue to grow and expand, all while using our Vision, Mission and Core Values as tools for aligning our activities and improving our leadership role in the industry. Novus’s business strategies and Vision for Sustainability actions flow directly from the Vision, Mission and Core Values – this includes embedding sustainable prac- tices in every employee’s activities. Novus takes the industry’s challenges: performance, the environment, food Vision • Mission • Core Values safety, and animal wellbeing very seriously and as such, they form an integral part of our corporate objec- tives regarding growth, profit, people Performance Growth and reputation. Environment Profit Food Safety People Vision ■ To help feed the world afford- Animal Wellbeing Reputation able, wholesome food and achieve a higher quality of life. Mission ■ Make a clear difference inNovus’ business strategies and actions stem directly from the company’s vision, mission and core values. This includes sustainably meeting theembedding sustainable practices in every employee’s activities. growing global needs for nutrition and health. Core Values ■ Maximize long-term customer satisfaction: anticipate their needs and exceed their expectations. ■ Provide products with demonstrable value: research leading-edge concepts and supply preferred products and services. ■ Act with integrity: treat all stakeholders – employees, customers, suppliers, business partners, our owners and the public – in a fair and ethical manner. ■ Protect our employees, the public and the environment: make health, safety, security and environmental considerations a priority in all that we do. ■ Seek excellence from all employees: expect and support alignment, diversity, individual growth, initiative and teamwork.10 | NOVUS International
  11. At Novus, we believe in empow- ering those working in animal agriculture – from farm to table – with the tools and knowledge to make a positive impact in their local communities and the world. Our core vision: “help feed the world affordable, wholesome food and Industry Challenges, Actions achieve a higher quality of life” helps us realize scientifically-based and Future Plans innovations that address the key challenges facing the global animal agriculture industry. Sustainability Objectives: Highlights: 2007-08 Directions: Focus on things that matter to our Partnered with the University 2009 and Beyond customers because their challenges of Illinois to demonstrate the value Provide innovative health, impede them from achieving optimal of amino acid supplementation nutrition, safety and quality solutions performance. in commercial dairy herds and that improve performance andPerformance Address challenges that come concluded that quality and volume deliver benefits to our customers and from many directions and stake- of food could be increased while their stakeholders. holders: economic, environment, lowering the cost of production. Develop new and/or improved competitors, regulators, consumers Developed the IDEA screening solutions that provide a higher and customers’ own internal hurdles. tool to enable producers who use ROI for our customers as well as Use and share knowledge and Distillers’ Dried Grain with Solubles sustainability characteristics. skills to improve performance against (DDGS) as a feed ingredient to easily Continue implementing the Novus any number of factors, globally and accurately test the nutritional Management System so we can across all species served. value of the raw materials. improve our managerial leadership, Launched Steadfast Equine, a which will result in improved total structural health supplement that performance for Novus and its helps horses of all ages maintain their customers. peak performance and wellbeing. Objectives: Highlights: 2007-08 Directions: Through scientific research and Successfully passed the Amer- 2009 and Beyond development, create nutritional ican Chemistry Council’s Responsible programs that reduce the Care audit of Novus’s headquarters Long-term plans are to continue environmental impact of animal and Chocolate Bayou sites - no major reporting using the GRI format, and agriculture. findings. continue to attain a high-level ofEnvironment Help producers meet the Invested $20 million in a new disclosure across Novus’ s own nutritional demands of modern global headquarters and expansion operations. livestock while balancing of the Research Center, designed Regularly review the opportunity environmental concerns, including within the environmentally-focused to develop new sustainability improved use and management of framework of the U.S. Green Building projects in each of our world inputs and waste. Council’s LEED program. areas to develop win-win-win As feasible, protect the Novus’s blending plant in Indaia- opportunities for Novus, our environment in all areas where we tuba, Brazil sustainably designed. customers and other stakeholders. conduct business. Facility collects, cleans and or sepa- Continue developing and investing rates water, waste, and recyclables in solutions that reduce consumption and minimizes energy use through of natural resources, improve use or smart control systems. conversion of nutrients and reduce waste to the environment. Industry Challenges, Actions, and Future Plans | 11
  12. is about finding new ways of living, working and innovating that meet individual, business, and society needs without compromising the needs of future generations. We continually work as an orga- nization to assess how we can gear ourselves through innova- tive thought and action towards sustainable business practices and product offerings. Objectives: Highlights: 2007-08 Directions: Increase awareness and oppor- Developed a test model with the 2009 and Beyond tunities to improve management and University of Georgia for measuring Deliver quality to our customers control of food safety as it is a global the effectiveness in reducing trans- by being present for initial new public health issue. mission of Salmonella in broilers. product processing and trials at our Reduce the outbreaks of food- The tests showed organic acids are customers’ locations. Food Safety borne disease globally, by providing an efficient tool for improving food Expand our geographic reach, appropriate preventative and inter- safety. especially in underserved markets, vention-type products and advice. Grew ADVENT® sales in the where we can improve animal Actively participate in the delivery poultry market for control of agriculture and key aspects of food of safe products to the public and coccidiosis. ADVENT® coccidiosis safety. help producers develop efficient control vaccine stimulates high Continue to work with our systems to meet current and new protective immunity, reducing drug network of partners and customers regulatory food safety requirements. resistance and allowing antibiotic to understand their issues and free production. develop solutions and programs that Introduced CapturaTM AF, a free will improve food safety, globally. flowing mycotoxin binder specifically designed for the African market to control aflatoxins in animal feed. Objectives: Highlights: 2007-08 Directions: Ensure that our customers Worked with customers in China 2009 and Beyond understand all the resources Novus to reduce skin infections on poultry has to improve the wellbeing of farm farms by using a combination of Our long term plans are to Animal Wellbeing animals. education, advice and training, continue reporting using the GRI Based on the local hierarchy of resulting in better overall health and format, and eventually reach needs, work with producers to inte- lower mortality rates. complete disclosures in all areas. grate valid, global public and political Worked with producers to Work on establishing new concerns as well as balance ethical improve their sourcing by using tools for sharing Novus’s and our and business perspectives. IDEATM, a non-intrusive test kit devel- industry’s knowledge in a non- Develop programs that provide oped by Novus, to help producers commercial setting. less stressful environments for determine amino acid digestibility of Expand training and education animals and this will result in better proteins for animal consumption. efforts with universities and our performance, a lower occurrence Expanded sales of OASIS® customers in order to raise standards of disease, and higher reproduction hatchling supplement, which is a as well as gain insights to key global rates. hydrated nutritional formulation and regional issues facing them. specially designed for the first days of life for poultry.12 | NOVUS International
  13. In order to grow responsibly, Novus identified four Critical Success Factors — Growth, Profitability, People and Reputation — that are the cornerstones in keeping our organization focused on factors important to our stakeholders. partners to develop and innovate value chains, discovering new ways of improving the food supply. OurCritical Success Factors teams also identify methods to upgrade food quality and nutritional value in emerging economies. One example of growth is through Growth our partnership with Martek Biosci- ences Corporation. Novus sells their Continually assess and high-quality, all-vegetarian source develop our portfolio of of omega-3 fatty acids used for products, customers and enrichment in food production. The suppliers, and implement product is a dried, non-GMO, whole- performance-enabling cell algae that offers an eco-friendly programs and technologies sustainable supply instead of relying to achieve a long-term on fish oil. It has a higher efficiency competitive position. of DHA incorporation than fish oil. At Novus, we are constantly This makes it a more environmental looking for new ways to grow our source of DHA enrichment, and company responsibly and in line it still delivers the proven human with our critical success factors. We health benefits of DHA. endeavor to expand our product line with new products in new markets, Increase Animal-Based and become even more sustainable Food Supply in all that we do. The company’s growth will involve: partnerships -To increase animal productivity and/or licensing agreements, acqui- while lowering operating costs. sitions, organic development and To demonstrate the value of geographic expansion. amino acid supplementation, Novus As part of organic growth, our partnered with the University of Research and Development depart- Illinois to conduct field demonstra- ment diligently works to create new tions in commercial dairy herds. The products that are environmentally goal of the study was to explore the friendly yet deliver the best quality effect of simple methionine supple- and economic returns possible. Our mentation. The study concluded Marketing, Sales and Operations that a producer could generate teams are exploring viable opportu- a 5:1 increase in milk and milk nities to meet the needs of currently components by following the Novus underserved markets around the program. The program can help world. They do this by working with increase the quality and volume Critical Success Factors | 13
  14. not-for-profit organization formed Corporate Council on Africa to build trust and confidence in the U.S. food system. It was formed The Corporate Council on Africa (CCA) is at the forefront of strength- to serve as a resource where ening and facilitating commercial consumers and other stakeholders relationships between the United could find accurate, balanced infor- States and the African continent. mation about the food system and CCA works closely with govern- engage in constructive dialogue ments, multilateral groups and on important issues affecting the businesses to improve Africa’s production and supply of food in the trade and investment climate, and United States. to raise the profile of the conti- Globally, today’s food systems nent within the U.S. business are comprised of many interdepen- community. CCA’s June program, dent segments, from the farmers “Investing in Agriculture Links in and ranchers who grow and raise Africa, brought together potential ” our food, to the processors and business partners and provides food companies that package food Novus an opportunity to develop a products, to the restaurants and sustainable business in nations that retail outlets that make it available to will need to improve food quality consumers. and supply for nearly 1 billion The food system is constantly people. changing and we want to provide As a gold sponsor for the event, Thad Simons and United States Secretary of information that helps consumers Novus hosted a workshop titled, Agriculture Edward T. Schafer understand those changes and a “Education and Knowledge Building in Agriculture Production. Novus ” forum for stakeholders to discuss brings together partners that are investing in reducing risk and expanding them. their business presence in Africa. Novus and the CFI believe the “At Novus, we work to empower emerging markets by transferring our entire system can learn from indi- knowledge in the latest research and technologies related to animal health vidual companies or associations and nutrition, explains CEO Thad Simons. “The Corporate Council on ” that have embraced sound principles Africa is providing a platform for this type of open knowledge exchange. and model best practices in agri- We applaud their efforts and are proud to be in partnership. ” culture. Sound principles and best practices can help the entire system improve performance and reduce of food while lowering the cost of the number of food safety incidents. production. This makes wholesome Novus acts as a guide and offers food accessible to a greater number products, principles and best prac- of people. Improving performance tices that enable food chain partici- in animal agriculture and thus food’s pants to meet regulatory challenges affordability and accessibility is in their operations, and achieve particularly important today, with profitable and responsible business increasing hunger becoming a more solutions. Our involvement in the important global issue every year. CFI underscores Novus’s commit- Novus has practical experience ment to provide sustainable solu- in improving overall performance tions that positively influence the and reducing structural problems, food chain, environmentally, socially, increasing yield in both poultry and and economically.Improving performance in animal agriculture and thus pork industries.food’s affordability and accessibility is particularly Improved Sustainableimportant today. Food Safety Environment - Helping build consumer trust and confidence in contemporary -Help producers meet nutritional food systems by sharing practical demands of modern livestock while information with customers and balancing environmental concerns. consumers to help them under- Minerals in the diet of farm stand how to prevent the spread of animals are essential for optimum disease. nutrition and performance, but Novus is an active participant they pose real environmental and Board Member of the Center challenges. Many nutritionally- for Food Integrity (CFI). The CFI is a important minerals are very diffi-14 | NOVUS International
  15. cult to absorb through an animal’s Reduced EnerGy digestive system. Novus created Consumption special formulations of organic trace minerals (OTM) that have high In 2007, Novus identified that one digestive absorption rates. of its products, a key product in the Novus’s OTMs are more bioavail- performance management area, had able to the animal at the point more benefits than its intended use of absorption compared to other of moisture management through sources of trace minerals. This emulsification. Working with a product provides higher mineral German customer, we found that the availability to the animal, better product’s emulsifying action helped performance and a significant posi- reduce their energy consumption at tive financial impact for the farmer. the feed mill. The resistance of the Users reduce the amount fed to feed produced in the mixer/pelleter their animals, while getting better was lower and there was less wear performance and a calculated ROI of and tear on their equipment. about 5:1 from using Novus’s OTM solutions. Novus’s mineral programs achieve farmers’ goals of animal profitablility performance and profitability with a positive environmental impact with Implement improved busi- reduced levels of minerals that enter ness processes, measures the environment. and supporting systems that will move Novus closer to its customers and deliverNovus has implemented quality programs and maintains increased year-over-year market value.traceability for the products we produce, so producers can rest Profitability is a key ingredient to sustainability as it is part of the tripleassured that the Novus products ingested by animals are safe. bottom line that includes social and environmental factors. Renewable Fuel Sources Amino acid nutrition is extremely -Create solutions that help important in protecting the environ- producers get the maximum value ment. Novus works with customers of by-products from renewable fuel to develop feed formulations that production. deliver specific nutrients required Novus is developing technologies by livestock. When the feed achieves to help customers get maximum this, the precise dosing results in a value of the by-products from reduction in the amount of manure renewable fuel production. Novus produced and minimizes the impact developed a screening tool to on the environment. enable producers who use Distillers’ Novus is co-sponsor of the Dried Grain with Solubles (DDGS) as Responsible Nutrition Project with a feed ingredient to easily and accu- Sindirações, a trade organiza- rately test the nutritional value of tion in Brazil. This project brings the product. DDGS, the by-product together producers, academia and of corn-derived ethanol produc- allied industry partners around tion, offers both opportunities and nutritional strategies to reduce challenges for livestock producers. environmental impact of pork and DDGS are an inexpensive livestock poultry production. A Responsible feed alternative, but their nutritional Nutrition Guide combining the content is highly variable. In order to findings of the group’s research optimize muscle gain for a produc- and practical suggestions to er’s livestock, Novus developed a reduce nitrogen, phosphorus and test kit that helps determine amino trace mineral pollution is being acid digestibility of DDGS. The finalized and is expected to be result is more precise formulation published in early 2009. of diets that improve profitability Critical Success Factors | 15
  16. by lowering feeding costs while The use of local by-products reducing nitrogen excretion into the and feedstuffs can help producers environment. Additionally, Novus greatly reduce their operating costs. offers a line of enzymes to make the However, one of the challenges is DDGS more digestible. assuring the quality and nutritional Novus also recognizes that the value of these products. Novus helps issue of non-fossil energy sources by applying a deep knowledge of is an important concern facing our food quality control with the use of global community. We have made antioxidants. Our technologies help producers leverage local resources. One example: Novus is helping Novus: An Active Member of Key Associations aquaculture producers develop Name Description Role/Activity programs to support community- ACC American Chemistry Council Member based fish meal production. The rapid growth of aquaculture as an ADSA American Dairy Science Association Member industry has spurred the demand Member and for, and price increases of, fish meal. AFIA American Feed Industry Association Committee Member Novus offers sustainable solutions Arbeitsgemeinschaft Qualitätsmanagement that allow our customers to reduce AGQM Biodiesel e.V. (Biodiesel Quality Member fish meal use and offer improved Management Association) animal nutrition. Novus’s platforms CCA Corporate Council on Africa Member to improve lean muscle gain and CFI Center for Food Integrity Board Member gastrointestinal health of aquacul- Feed Additive and Premixture Quality System ture resulted in the development of FAMI-QS Asbl Member a product that partially substitutes European Association FEFANA EU Feed Additives Premixture Association Member fish meal without compromising performance. The fish meal is GAA Global Aquaculture Alliance Member supplemented with a Novus product NASC National Animal Supplement Council Member that is a source of methionine, NCC National Chicken Council Allied Member organic calcium and organic acid to NPPC National Pork Producers Council Member optimize overall performance at a PFI Pet Food Institute Associate Member lower cost. By leveraging Novus’s products and approach, fish meal PSA Poultry Science Association Member that is both consistent in quality and Safe Supply of Affordable Food affordable can be produced at the SSAFE Member Everywhere, Inc. local level. Producers can also enjoy UEP United Egg Producers Allied Member the business benefit of significantly WAC World Affairs Council Member reduced feed expenses because the WAF World Agricultural Forum Board Member transportation and possible importa- tion costs are reduced. WAS World Aquaculture Society Member Fresh Water Conservation alternative fuels an area of strategic - Create new technologies to development and created a unique protect water and its conservation. biodiesel stabilizer based on our Aquaculture represents the deep knowledge of antioxidants. fastest growing sector of global food Novus’s biodiesel stabilizer prevents production and is highly dependent oxidation from exposure to air, heat, on the use of fresh water. Novus light, trace metals, and temperature is contributing to the conservation variations - allowing customers to of fresh water through our new utilize biodiesel over a longer time aquaculture initiative that helps period. This makes biodiesel a more producers lessen the environmental practical alternative. impact of aquaculture. For example, Novus developed Use of Local By-products an amino-acid based dietary supple- -Help producers greatly reduce ment that makes feed highly digest- their operating costs through the ible for carp, the most farmed fish use of local by-products and feed- species in the world. With the Novus stuffs that are of high quality with solution, the level of undigested nutritional value. food passing into the water from16 | NOVUS International
  17. Novus ReceivesNASC’s BestManufacturingPracticesCertification Arenus joined the National AnimalSupplement Council (NASC) in November2006 and successfully completed the initialBest Manufacturing Practices Certificationaudit from NASC in June 2008. Arenusreceived an “A” in the audit, which isthe highest possible rating. The NASCis a voluntary certification organizationthat provides guidance to the companionanimal health products industry for compli- fish as pollution is reduced. From Responsible Careance with regulatory standards. Members a business perspective, producers ManaGement Systemmust demonstrate compliance by: using enjoy higher performance in their (RCMS)accurate labels with complete ingredient fish populations and improved feedlistings, not making unsubstantiated claims costs through optimized rations. -A managed approachon labels or in advertisements, manufac- The result: better returns for farmers to environment, health,turing products under rigorous quality and less of an impact on the envi- safety and security.standards, and ensuring the safety of the ronment. Novus is also working on Novus is RCMS-certi-the ingredients by tracking adverse events. a complementary product line to fied by the AmericanEven though this certification is not obliga- improve water quality at the pond Chemistry Council (ACC).tory to sell supplements in the companion that will further contribute to fresh Novus passed the RCMS, third-partyanimal industry, Novus completed this water conservation. audit of our Chocolate Bayou, Texasrigorous audit. Novus also sees opportunities and Headquarter facilities. An RCMS to improve conservation at its own framework helps deliver results in facilities. Working together with the community awareness and emer- city of Indaiatuba, Brazil, Novus gency response, security, distribu- installed a system for collecting tion, employee health and safety, rainwater to be treated and reused pollution prevention, process safety by our plant and municipality. We and product stewardship. are expecting to collect over 80,000 liters of rainwater per year. Certifications Chocolate Little Gudensburg, Brussels, Indaiatuba, Shanghai, Headquarters, Bayou, Rock, Germany Belgium Brazil China Missouri Texas Arkansas FAMI-QS 4 4 4 4 4 4 GMP+ 4 4 4 4 ISO14000 4 ISO9001 4 4 4 4 4 4 NASC 4 Safe Feed/ Iso22000 4 4 EUREPGAP Safe Food (HACCP) Critical Success Factors | 17
  18. Product Stewardship products have been establishedEnvironmental ProGram – based on thorough evaluations of EHSS data.Health, Safety, Product stewardship goes Potential risks are characterized, beyond just complying with envi- regulatory compliance is assured,and Security ronmental, health, safety and secu- and risk management practices are(EHSS) rity (EHSS) regulations. It expands the focus of an EHSS program established where necessary and appropriate as an integral part of Novus has a strong commitment to to include minimizing product the decision on whether and how aenvironmental responsibility, health, safety, risk from inception, past the point product is marketed. The results ofand security. We responsibly design our of sale to ultimate disposal. It the Product Safety Assessment aremanufacturing process, operational and emphasizes interaction with the communicated through Materialtransportation-related procedures with a customer to assure proper use and Safety Data Sheets (MSDS), labels,focus on safety. Our record of protecting the to learn more about possible health and supplemental product steward-public is bolstered by our strong ties to the or environmental impacts. Our ship information as applicable.communities in which we operate, and an code provides a way to manage a Novus continues to monitor prod-active and open communication effort. We product through its life cycle. It also ucts even after they are marketed. Asare dedicated to providing a safe and healthy encourages continuous improve- new health and safety data or newworkplace for all of our employees. ment in the EHSS fields, always product use and exposure informa- The dedication of Novus to protecting looking for better ways to make tion become available, the informa-employees and maintaining the highest a safer product, to educate our tion is analyzed and adjustments aresafety standards was recognized in 1996 customers and to encourage their made to the Product Safety Assess-when the U.S. Occupational Safety feedback about our products. ment, if needed.Health Administration (OSHA) awarded our Novus has a product steward-Chocolate Bayou manufacturing facility with ship risk evaluation and manage-the OSHA Star Award. This award, OSHA’s ment system in place. Our practice peoplehighest honor, recognizes outstanding safety is to evaluate products through alland health standards. The Chocolate Bayou stages of their life cycle to be sure Provide a healthy work-plant has retained OSHA Star status every that they: life balance and accelerateyear since 1996. ■ Deliver benefits to the development of employee ■ Novus believes that all injuries, as end user. programs that provide current well as safety, environmental, secu- ■ Are safe and environmentally and future opportunities for rity and transportation incidents, sound. personal, professional and are preventable. As such, our goal ■ Meet product regulatory corporate growth, while for all is zero. requirements of the countries adhering to our core values ■ Our manufacturing and research in which we do business. and management systems. and development facilities have Novus conducts a formal People are the core of our organi- had no reportable environmental Product Safety Assessment on zation. We empower our employees releases since the inception of most new or modified products. so we all have a shared sense of Novus in 1991. These assessments address commitment to responsible behavior ■ There have been no reportable matters such as determining a and business practices. In doing this, transportation incidents in the clear understanding of product Novus endeavors to maintain open, history of the company. characteristics and expected uses. honest and fair communication The assessment also includes for the benefit of all stakeholders. conducting a review of available Novus actively seeks out opportuni- health, safety, environmental, ties and tries to create an environ- exposure and regulatory informa- ment within the company that chal- tion. The nature of Novus’s busi- lenges norms and keeps employees ness is such that many of our feed thinking forward in order to deliver ingredient and vaccine products fresh ideas. have been evaluated by the U.S. Food and Drug Administration LearninG Individual (FDA), the U.S. Department of Agri- Development culture (USDA), the Association of American Feed Control Officials Manager Once Removed (MoR) (AAFCO) or other appropriate Mentoring Process agencies in the United States and Novus takes the individual devel- other countries in which we manu- opment of its employees very seri- facture or market such products. ously and therefore has instituted Regulations on the use of such the MoR Mentoring Process. MoRs18 | NOVUS International
  19. Some examples of forward-thinking elements of sustainabledesign and construction found inour new global headquarters: ■ Raised floor system that are accountable for establishing are acting fairly and honestly. is salvaged from another development plans for their Subordi- project. nates-once-Removed (SoRs). MoRs LEED BuildinG ■ Landscape design requiring are directly concerned with the talent Novus’s new global headquarters zero irrigation, equating to pool and the long-range develop- is our symbol to the world and an thousands ment of their SoRs. expression of our sustainable efforts. of gallons of water saved Through this mentoring process, The 90,000 square foot structure each year. MoRs work with each SoR individu- consolidates Novus’s headquarters ■ Skylights and floor-to- ally with regard to that person’s work and the Novus International Research ceiling windows to maxi- future and career development, Center. The structure is designed mize the use of training and education, beyond within the environmentally-focused natural light. that needed in his or her present framework of the U.S. Green Building ■ The use of rapidly-renew- role. SoRs discuss their aspirations Council’s Leadership in Energy and able and recycled materials and career opportunities within the Environmental Design (LEED) certifi- throughout. company with their MoR, rather than cation. The global headquarters will ■ A storm water system that their immediate managers. accommodate many established and will greatly reduce the envi- forward-thinking elements of sustain- ronmental impact of runoff Novus Learning System able design and construction. and quality to streams and We took steps over the Our new global headquarters is eventually the past year to finalize the Novus also designed to give our employees Missouri River. Learning System and implement it the world-class facilities they ■ Many interior finish mate- throughout the company. Our goal deserve. Our building will capitalize rials manufactured with is to establish a learning culture on natural sunlight and circulates rapidly-renewable mate- that provides growth opportuni- fresh air, conditions which appear rials and certified wood ties to benefit individuals at Novus to lead to a decline in illness and products. worldwide. We believe our system enhanced employee satisfaction. ■ 5,000 square feet of solar will enable our employees to Studies have concluded that workers panels – currently, the be successful, while acting with perform better with natural sunlight.2 largest array in integrity at all times. Novus held This is just another step towards the state of Missouri. a week-long workshop with all providing our people the best health of our managers and world area standards available. directors to discuss the new Novus Management System. This allowed Renewable EnerGy management to learn new effec- Credits (RECs) tive leadership techniques that will help our company culture flourish. As a part of our ongoing commit- Furthermore, our integrity system ment to implementing new sustain- ensures that all of our employees able projects, Novus has invested in Critical Success Factors | 19
  20. Renewable Energy Credits (RECs). cated to providing whatever support Novus has purchased 100% of the we could to the victims of the energy we use in renewable energy tragedy. Novus employed a match- credits at our new global headquar- giving campaign with its employees ters in the Saint Louis, Missouri, that provided over $US 45,000 to the area. We want to do our part as a relief effort for those affected by the global company by investing in catastrophes. renewable energy; therefore we buy the corresponding amount (1.4 reputation million kilowatt-hours (KWH) per year) of renewable energy we spend Expand on our positive at the facility. Each KWh of clean, image by initiating and renewable electricity reduces the supporting activities and need for an additional KWH of what programs that demonstrate is often pollution-causing conven- Novus’s integrity and aspi- tional electricity. The energy we buy rations to meet corporate is then put back into the power grid, objectives ever-more respon- providing environmental benefits for sibly, in a sustainable manner. everyone from this displacement of Novus has earned a positive conventional power. image in the industry by our dedi- cation to sustainability principles,Direct Energy Consumption by growing through science thatfrom January 2007-June 2008 creates products and services that Total Energy Usage Total Energy Usage Energy Use per KG of help improve health and nutrition Million BTU Million KJ production (KJ per KG) world-wide. 1,166,995 1,231,180 3,045 Novus InteGrity System It is fundamental to the philos- ophy of the Novus Vision thatTotal CO2 Emissions in Metric Tons good ethics and good business arefrom January 2007-June 2008 synonymous when viewed fromDirect CO2 Emissions 8,722 moral, legal and practical stand- points. The Novus Integrity SystemIndirect CO2 Emissions from Electrical or Steam Supplier 54,704 (NIS) and its critical components are essential to our pursuit of the Support for Communities Novus Vision. The NIS, the Novus Novus has a matching program Management System, and Novus’s with its employees for contributions employee policies are reminders of given to charities. We decided that Novus’s and each of its employee’s contributions for the year would go commitments to corporate and to the United Way, which gives out personal integrity. money to various charities around Commitment to each other, to the St. Louis community. People our customers, and to the public donate to the United Way for many are key parts of our effort to make reasons, but primarily to support our Novus a company we can all be entire community by caring for one proud of. The trust and respect of all another. The United Way uses volun- people – fellow workers, customers, teers and paid personnel to manage suppliers, the community, friends how the funds are distributed and and the general public – are assets to ensure that the supported orga- that cannot be purchased. They nizations use the money effectively. must be earned every day. That is In 2007, Novus and its employees why all of Novus’s business must be donated over $US 82,000 to the conducted according to the highest United Way. ethical, moral and legal standards. The disasters that fell upon The modern business environ- Myanmar and China in May 2008 ment can present complex issues were a reminder that we must act as that challenge each of us to deter- a united community to help those in mine the right course of conduct. need. As a global company, we have Since the Novus Integrity System operations in Asia and were dedi- cannot address every issue that will 20 | NOVUS International
  21. arise, it is intended to provide the four, two-year graduate scholarships company with guidelines that will at each of eight leading animal nutri- assist us in meeting these chal- tion and health programs at univer- lenges. We strive at all times to sities across China. The program is make decisions that are not only intended to contribute to the devel- lawful, but also morally and ethi- opment of up-and-coming scientistsTop: 2008 students from China engaging cally sound. in animal agriculture and further ourin field work knowledge-sharing commitment.Above: Dr. Ma Deying, 2008 Novus Re- Novus Sponsors Research The goal: Create scientifically-search Fellowship award recipient and Shares KnowledGe based innovations to address key World-Wide challenges facing animal agriculture. We feel a deep responsibility to Through partnerships with scien- transfer knowledge and technology tists and universities on a global to people around the world who can scale, Novus engages in knowledge use it to improve farming practices in transfer that helps scientists and their local communities. universities address local issues as Purposes: well as to help Novus gain insights ■ Encourage students in animal into world agriculture. Researchers agriculture to develop strong in countries such as China and India research programs, helping help Novus learn through Novus them gain an international grants on how to solve local chal- perspective of agriculture. lenges. Novus can then use such ■ Help Novus learn more about understanding to determine how its agriculture in China. products can help nations advance ■ Gain understanding of the animal health and nutrition in a university system, the profes- responsible way. sors and the students. ■ Develop a network of technical Graduate Scholars collaborators to work with ProGrams Novus in creating solutions for China’s animal agriculture Novus Graduate Scholars (China) challenges. The Novus Graduate Scholars (NGS) program was initiated in 2006 Novus Research Fellowship (China) as a commitment by Novus to fund The Novus Research Fellowship Critical Success Factors | 21
  22. (NRF), awarded annually, is a two- encourages the continued growth year grant made through a university of agriculture-related studies in the department. region.” This award was created to support the development of inter- Auburn Research Award nationally competitive research This annual award is presented programs with promising young to an Auburn University graduate scientists in China specializing in the student for research excellence in field of animal nutrition and health. one or more areas of animal nutri- To qualify for the award, applicants tion, metabolism, growth and must submit research proposals development of health and disease. that are evaluated by a panel of The 2007 award is being offered to renowned scientists. Elias J. Bungenstab, who is currently researching the effects of poultry litter fertilization in forage-based cattle feed. Elias exemplifies the type of candidate Novus is proud to present this award to. He not only gets assistance in his pursuit of a Ph.D., but is developing a sustainable solution for the beef cattle industry. Novus Contributes to ImprovinG Animal WellbeinG Standards - Help producers find ways to increase the wellbeing of farm animals; animals in less stressful envi- ronments have better performance, a lower occurrence of disease, and higher reproduction rates. Animal wellbeing is an increas- ingly important public and political issue around the world from both2008 Novus staff and internship participants an ethical and business perspective. The recipient of the 2008 NRF Novus collaborates with producers award was Dr. Ma Deying from the throughout the world to raise the Institute of Animal Nutrition, North- standards of animal wellbeing. As east Agriculture University in Harbin, previously mentioned, Novus worked China. Dr. Deying’s winning proposal with a leading poultry producer in is related to alternatives to in-feed China to improve the quality of life antibiotics in commercial poultry for animals that were experiencing operations. structural health issues related to growth weight. Joint Research Agreement Student In Southeast Asia, Novus has Scholarships — Bombay Veterinary leveraged its expertise in poultry College (India) production and wellbeing to reduce Novus is sponsoring three veteri- problems associated with skin infec- nary students to conduct a two-year tions that can dramatically impact research project on organic trace both quality of life and animal health mineral nutrition in poultry produc- and performance. Through our expe- tion with local needs. rienced and highly trained staff we “Our partnership with Bombay were able to identify problems that Veterinary College links the scien- led to a high incidence of skin infec- tific talents of Novus with one of tions and provide training, advice, the oldest institutions in Asia, says ” and nutritional tools to reduce skin Simons. “This is a great opportunity infection problems by 15%. By for both partners to collaborate in a reducing the incidence of skin infec- way that is mutually beneficial and tions on-farm, these chickens had22 | NOVUS International
  23. better overall health with much less all we do. Our goal is to improve our mortality. understanding of their needs and to High water quality is important make sustainability a reality in the for humans and animals alike. In world in which we operate. China, Novus has taken a special We are currently working with a interest in this need and created a number of organizations to discuss program for education and imple- sustainability issues. For example, mentation of water quality plans we recently held our first sustain- with Nanjing Agricultural University. ability roundtable and continue to As a key member, a Novus presen- take part in the World Agricultural tation at the 2008 Animal Ecology Forum. Society Conference promoted the Novus participated in the 2007 water quality program as it relates World Agricultural Forum (WAF) held to animal wellbeing, health and May 8 to10 in St. Louis. “Our mission subclinical loss. Novus now retains at Novus aligns with the WAF goals and we are proud to support this unique and valuable organization, ” says Novus CEO Thad Simons. The WAF Congress meets every twoNovus has made it a priority to make communication with years in St. Louis, uniting global leaders of industry, government,stakeholders an integral part of how we do business. civil society, and academia to iden- tify solutions to enable sustainable agri-systems capable of contributing to global economic development. The theme of the 2007 congress executive membership with the was “Creating Prosperity through National Animal Ecology Society, and Investments in Agriculture” and key has plans to continue to foster the discussions focused on infrastructure growth of this program. development, trade, water and bio- Globally, the quality of animal energy. feed can be a major concern for As an official sponsor and exhib- animal wellbeing. Animal feed that itor, Novus held it’s first-ever sustain- has spoiled or is contaminated ability roundtable as part of the WAF . with naturally-occurring toxins can Novus held the “think tank” with dramatically impact wellbeing and over 40 executive-level members of performance by making animals the global animal agriculture industry sick, more prone to diseases, or and two members of the Interna- lead to developmental or structural tional Finance Corporation’s (IFC) problems. Novus has developed a agribusiness department. The round- suite of technologies that identify table helped establish the need for a high quality ingredients, eliminate balance between helping customers harmful substances from animal reduce their environmental footprint feeds, and preserve and protect feed and reducing our own. from environmental factors that can As part of our continued commit- damage the nutrients inside. Through ment to furthering the WAF’s these products and our expertise mission, Novus provides financial at applying them, Novus has had a assistance and helps provide over- positive impact on animal wellbeing sight in bringing in new members and performance around the world. to carry out agricultural economic development throughout the world. Communication with We work towards improving the Stakeholders quality of life within the communities we do business, because we are also We understand that Novus has a part of them. a responsibility to listen to all of its stakeholders in how we do business. For that reason, Novus has made it a priority to make communication with stakeholders an integral part of Critical Success Factors | 23
  24. Publishing a sustainability report is new for Novus, but there is nothing new about Novus’s dedication to corporate responsibility and sustainability. We’ve been an active participant and supporter of sustainability efforts since our company was formed 17 years ago. Over that period, our Core Values have not changed. We remain dedicated to the triple bottom line of environmental, social and economic factors in all products we produce and solutions we provide for our customers and stakeholders. As demand for animal protein increases on a global scale, acting responsibly will have a positive Summary influence on the environment, food safety, animal wellbeing and the performance of our customers as well as our own performance. Novus exists because our stake- Furthermore, acting responsibly holders and health and nutrition will result in sustainable, long-term customers exist. As a result, Novus benefits for generations to come. continues to develop and provide Because of actions we have taken innovative solutions that address the to position our company in the past, environmental, social, and economic we are able to respond to our goal of issues they face in a sustainable the triple bottom line today and into manner. the future on a global scale. One huge issue facing both Looking at additional actions we Novus and the entire food production are implementing today, Novus looks system – from poultry to aquaculture forward to reporting on its perfor- – is that global population is on the mance again in 2009 and beyond. rise. In order to remain sustain- able, Novus must aspire to develop innovative products, programs, and solutions that positively impact the “triple bottom line.”24 | NOVUS International
  25. Abbreviations, References and TablesABBREvIATIONSAAFCO: American Association of Feed Control Officials LEED: Leadership in Energy and Environmental DesignCFI: Center for Food Integrity MoR: Manager Once RemovedCSR: Corporate Social Responsibility MSDS: Material Safety Data SheetsDDGS: Distillers’ Dried Grain with Solubles NGS: Novus Graduate ScholarsDHA: Docosahexaenoic acid, an omega-3 essential NHN: Novus Human Nutrition fatty acid NIS: Novus Integrity SystemEHSS: Environmental, Health, Safety Security NNB: Novus Nutrition BrandsFDA: U.S. Food and Drug Administration: NRF: Novus Research FellowshipGMO: Genetically Modified Organism NGOS: Non-Governmental OrganizationsGRI: Global Reporting Initiative OSHA: U.S. Occupational Safety and Health AdministrationGMP+: Good Manufacturing Practices plus Hazard Analysis Critical Control Point (HAACP) OTM: Organic Trace MineralsIFC: International Finance Corporation REC: Renewable Energy CreditsISO: International Organization for Standardization, a ROI: Return on Investment worldwide organization that develops many different kinds of standards SoR: Subordinate Once Removed ■ 9001: ISO 9001 is a procedural and documentation system that assures customers that a company has a good Quality Management System. ■ 14000: ISO 14000 is a procedural and documentation system and provides requirements for environmental management systems for organizations wishing to operate in an environmentally sustainable manner.REFERENCES: 1 Gro H. Brundtland. 2 Heschong Mahone Group, Inc. “Windows and Offices: A Study of Office Worker Performance and the Indoor Environment” – CEC PIER 2003.TABLES: Employee Data Employees by Region Total Employees 401 North America 180 45% Female Employees 149 (31%) EAME 58 14% Male Employees 252 (69%) Latin America - S 30 7% Senior Management 31 people (8%) Latin America - N 17 4% China 63 16% *Novus International does not condone or allow child labor or Australia 6 2% any forced or compulsory labor in any of its operations around Singapore 7 2% the world APEC 40 10% Glossary and Abbreviations | 25
  26. GRI Index Vision and Strategy 1.1 A Message from the President Pages 6-7 Profile 2.1 Name Novus International, Inc.; Page 3 2.2 Primary products Company profile: Pages 3-5 2.3 Operational structure of the company (divisions, Pages 3-5 subsidiaries) 2.4 Location of headquarters Saint Charles, MO; Pages 3, 21-22 2.5 Countries of operation Company profile: Page 4 2.6 Nature of ownership Page 3 2.7 Markets served Company profile: Pages 3-5 2.8 Scale of organization Company profile: Pages 3-5 2.9 Significant changes New headquarters; Page 19 2.10 Awards received None Report Parameters 3.1 Reporting period 1 January, 2007-30 June, 2008; Pages 8-9 3.2 Previous report This is Novus’s first Sustainability Report ever; Pages 8-9 3.3 Reporting cycle Annual; pages 8-9 3.4 Contact point Contact us: Page 28 3.5 Process for defining report content Pages 8-9 3.6 Boundary of the report Pages 8-9 3.7 Any specific limitations of the report Pages 8-9 3.8 Basis for reporting on subsidiaries Page 9 3.10 Explanation of any restatements from previous None reports 3.11 Significant changes from previous reports None 3.12 GRI contents index This page Governance 4.1 Governance structure Pages 4-5 4.2 Chairman of Board different than CEO Yes; Page 5 4.3 Board Structure Page 5 4.4 How shareholder and employees provide recom- Via executives; Page 5 mendations to the board 4.14 List of stakeholder groups engaged by organization Page 16 4.15 Basis for identifying stakeholders to engage Page 2326 | NOVUS International
  27. GRI IndexKey Performance IndicatorsEconomic DisclosuresEC2 Financial implications due to climate change Reference Feed International, July/August 2008.EC7 Local recruitment Page 25 , The Novus policy is to hire locally in each area of the world we are located.Environmental DisclosuresEN3 Direct energy consumption Page 20EN16 Direct and indirect greenhouse gas emissions Page 20EN19 Emissions of ozone-depleting substances Page 20EN23 Total number and volume of significant spills Page 20 , No significant spills at our facilities. Small incidents related to transportation have been resolved quickly and in an environmentally respon- sible manner.Social DisclosuresLabor Practices and Decent WorkLA1 Total workforce data Page 25LA4 Collective bargaining agreements Novus has no employees covered by collective bargaining agreements.Human RightsHR6 Child labor Page 25HR7 Forced or compulsory labor Page 25SocietySO2 Analysis of risks related to corruption Page 5 , Deloitte and Touche LLP completed an anti-fraud assessment and found no deficiencies as of 31 March, 2008.SO3 Employees trained in anti-corruption policies and Page 5 , The Novus Integrity System addresses procedures “Prohibited Payments” and the “Foreign Corrupt Practices Act.” All employees receive training on the NIS policies, and are required to certify each year that they know of no violations with respect to the NIS policies.SO5 Participating in public policy development and Novus expressed concern regarding Docket ID lobbying No. EPA-HQ-OAR-2008-0380. We advised the U.S. Environmental Protection Agency (EPA) to take a balanced position on the Renewable Fuel Standard (RFS) mandate for the production of ethanol derived from grain. Novus suggested that the U.S. EPA should consider Governor Perry’s (Texas) petition and study his request to reduce the RFS by 50% for 2008. Competition between corn for ethanol for food or fuel was becoming intense and mandating levels of fuels derived from grains could have led to an allocation away from food, when demand for food was growing rapidly as well.Product ResponsibilityPR3 Product and service information and disclosures Pages 17-18 , 100% of our products are registered through government agencies throughout the world. GRI Index | 27
  28. Contact Us If you have comments on Novus’s Sustainability Report, or would like further information, please follow the links on our web site, www.novusint.com. Alternatively, you can contact the Sustainability Report Team by sending an e-mail to sustainability@novusint.com, or in writing at: Novus International, Inc. 20 Research Park Drive St. Louis, MO 63304 United States of America Attn: Sustainability Team Please provide your name, affiliation and postal and/or email address. Copies of Novus’s Sustainability Report can be obtained electronically at www.novusint.com28 | NOVUS International

×