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2009 Novus Sustainability Report


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  • 1. Health through Nutrition2009 Sustainability Report
  • 2. What’s in this Report?Table of Contents Welcome and Background Welcome 01 From the CEO 02 Motivating Factors 03 Novus’s Background 12 Sustainable Culture 16 Sustainability in Practice Social 24 Economic 37 Environmental 58 Quality of Life 66 GRI Index 68 Key Performance Indicators 70 Appendix 74
  • 3. Welcome This report summarizes the past progress and future commitment of Novus International, Inc. to providing innovative solutions that will help feed the world affordable, wholesome food and achieve a higher quality of life. The earth’s population is increasing by 75 million people per year. In the next 40 years, its limited natural resources will have to bear the burden of feeding 3 billion people more than the global population of 6.6 billion today. The strain on the planet’s resources makes it imperative to protect quality of life by moving forward in ways that support global sustainability. Health through Nutrition is Novus’s second sustainability report. The first report covered the 18-month period ending June 30, 2008, which complied with the Level C guidelines of the Global Reporting Initiative (GRI). This report covers the 12-month period ending December 31, 2009, with footnote data pertaining to the date range of July 1 to December 31, 2008. It fulfills the more rigorous Level B GRI guidelines. Going forward, Novus plans to publish a sustainability report on an annual basis.GRI: 3.1, 3.2, 3.3, 3.5, 3.6, 3.7, 3.9, 3.10 and 3.11 Novus International, Inc. Health through Nutrition 2009 | 1
  • 4. From the CEO Dear Reader, As we worked to compile Health through Nutrition, nearly the same amount of arable land and water I was reminded that it takes planning, time and resources currently available. These astounding thousands of small steps to make sustainable statistics highlight the relevance of establishing changes. I am proud of the efforts and enthusiasm sustainable practices across the value chain of that our global Novus team has shown by working nutrition. Developing sustainable practices that will together towards our sustainability goals. support the needs of our growing population, protect environmental resources and ensure the profitability Novus is a participant in the farm-to-table of our customers are Novus’s highest priorities. nutrition continuum and because of this, we have a distinct responsibility to the communities we For our team at Novus, sustainability is a culture serve. Novus’s Vision is To Help Feed the World that begins on an individual level. We believe that Affordable, Wholesome Food and Achieve a innovation, education and collaboration will improve the quality of life Higher Quality of Life. Our performance as a for people around the world and ultimately, our business performance. company and our Vision are not separate— each is connected inextricably with the other. Thank you for investing the time to get to know Novus a little better This relationship is clearly expressed in the and to learn about the ways we are working to increase our positive Novus triple bottom line: social, economic and impact on the world each day. This is our second sustainability report. environmental (SEE). We intend to measure our continuous improvement against this report and future reports each year. The components of SEE comprise Health through Nutrition and are integrated into our business At Novus, we value transparency. In this spirit, I invite you to send approach. Our activities and goals, as they relate any questions or comments that you may have about this report to to this triple bottom line, will continue to be shaped as we innovate, learn and collaborate. In this way, we intend to maintain our long-term Sincerely, commitment to Novus’s sustainable culture and global Vision. During the reporting period for Health through Nutrition, the United Nations announced that Thad W. Simons by 2050 we will have to feed our world double President and Chief Executive Officer the amount of food that we do today, using Novus International, Inc.GRI: 1.1 Novus International, Inc. Health through Nutrition 2009 | 2
  • 5. Our Motivating Factors Working within a framework of Core Values, Novus employees have collectively brought to marketmore than 100 new products over the past few years. This innovation and agility would not be possible without a culture that combines entrepreneurial thinking with organized structure and the motivating Vision to Help Feed the World Affordable, Wholesome Food and Achieve a Higher Quality of Life. Novus International, Inc. Health through Nutrition 2009 | 3
  • 6. Vision To help feed the world affordable, wholesome food and achieve a higher quality of life. Novus has a clearly defined Vision. Feeding the world over the next four decades will require producing more food than in the previous 4,000 years. Satisfying this increasing demand without straining, depleting or polluting the earth’s natural resources will continue to be a complex challenge. It will require innovative solutions in nutrition, combined with a solid commitment to global sustainability. Mission Make a clear difference in sustainably meeting the growing global need for nutrition and health. Our core expertise and experience in health and nutritional research empower Novus to move toward our Mission. Together, our Vision and Mission form the solid bedrock that supports Health through Nutrition.GRI: 1.2 and 3.13 Novus International, Inc. Health through Nutrition 2009 | 5
  • 7. Core Values Global sustainability is a fundamental imperative at Novus. It is the common denominator between our corporate Vision, Mission and Core Values. As you read the first section of this report, Novus’s Background and Sustainable Culture, please note the icons below—they are meant to provide examples of how we integrate our Core Values into our work each day. Seek excellence from Provide products with Maximize long-term every employee demonstrable value customer satisfaction Protect our employees, Act with integrity the public and the environmentGRI: 1.2, 3.13, 4.8 and 4.11 Novus International, Inc. Health through Nutrition 2009 | 6
  • 8. Novus’s Core Values bring our Vision and Mission to life. The Core Values define, in practical terms, how our 600-plus employees conduct business with each other, with customers and with other stakeholders. They guide all business strategies, plans and objectives. They shape our company’s culture, which begins at the individual level and carries through to the marketplace. We seek excellence from every We strive to provide products with It is critical that we maximize long- employee. We encourage, expect demonstrable value. Our research term customer satisfaction. Whether and support alignment, diversity, focuses on leading-edge concepts, related to products, services individual growth, initiative and and we are committed to supplying or innovation, we must always teamwork. preferred products and services. anticipate our customers’ needs and exceed their expectations. We protect our employees, We act with integrity. We treat all These Core Values are of the public and the environment. of our stakeholders—including Specifically, we make health, safety employees, customers, suppliers, profound importance to each and environmental considerations a business partners, our owners and Novus employee. They are priority in everything we do. the public—in a fair and ethical manner. essential to the way we work each day and to Health through Nutrition.GRI: 1.2, 2.8, 3.13, 4.8 and 4.11 Novus International, Inc. Health through Nutrition 2009 | 7
  • 9. Each of the preceding Core Values affects the way we measure our progress in terms Critical Success Factors of our triple bottom line of social, economic and environmental (SEE) considerations. They also provide a basis for our four Critical Success Factors—growth, profitability, people and reputation. Novus’s Critical Success Factors provide the framework for the way we set our business goals and align towards our long-term strategy. Growth Profitability People Reputation Continually assess and develop Implement improved business Provide an environment that enables Expand on our positive image our portfolio of products, processes, measure and employees to bring their full capabilities by initiating and supporting customers and suppliers. support systems that will move to bear with behaviors consistent activities and programs that Implement performance- Novus closer to our customers with the Novus Management and demonstrate Novus’s integrity enabling programs and and deliver increased year- Integrity Systems, in accordance with and aspirations to meet technologies to achieve a over-year market value. the Novus Mission, Vision and Core corporate objectives in a long-term competitive position. Values. Promote a safe and healthy responsible, sustainable work-life balance to motivate employees manner. to achieve our Novus Three-Year Growth and Diversification efforts. Long-Term Strategy Supporting Our Long-Term Strategy Critical Success Factors Every Novus employee understands exactly what his or her key accountabilities are. Each person realizes that these key accountabilities have a direct effect Three-Year Objectives on Novus’s short-term corporate goals, three-year objectives, Critical Success Factors and ultimately, our long-term strategy. Short-Term Corporate Goals Every person plays a role. And every person has the opportunity and responsibility to make a critical contribution to the long-term success of our company. Individual Key AccountabilitiesGRI: 1.2, 3.13, 4.9 and 4.10 Novus International, Inc. Health through Nutrition 2009 | 8
  • 10. Our Triple Bottom Line As you read the second section of this report, Novus’s Sustainability in Practice, please note the icons below—they are meant to provide examples of how we integrate sustainability into our work each day. Social Economic Environmental We measure our progress in terms of our triple bottom line: social, economic and environmental (SEE). The products we sell, the way in which we conduct business with stakeholders and our respect for the earth’s natural resources are all interconnected, integrated and equally important.GRI: 1.2, 3.13 and 4.16 Novus International, Inc. Health through Nutrition 2009 | 9
  • 11. “Raindrop,” Douglas Auer and Michael Hayes, 2009 Media: GlassNovus commissioned this piece for our global headquarters. It is made of blown glassspheres and volumetric flasks. The materials chosen and the forms created highlight thelink between scientific development and the preservation of the natural world. Novus International, Inc. Health through Nutrition 2009 | 10
  • 12. Novus’s Background and Sustainable Culture Novus International, Inc. Health through Nutrition 2009 | 11
  • 13. Novus’s Background Novus International, Inc. creates Health through Nutrition products for livestock, pets and people. Novus has employees working in over 90 countries, serving more than 2,500 customers worldwide. Based in St. Charles, Missouri, Novus has facilities including corporate offices, research and development laboratories and manufacturing operations in more than 35 countries, as well as smaller offices with field staff in an additional 60 countries. The organization has annual revenues approaching $1 billion. Based on Science Novus International, Inc. was founded in 1991, but our scientific roots and history originated over 50 years ago. In the 1950s, St. Louis, Novus revolutionized poultry nutrition through the development of ALIMET®, a liquid feed supplement. Missouri-based Monsanto Company began conducting livestock and poultry feed metabolism studies. In 1959, one of its products received FDA approval as an animal feed additive, which helped launch the Monsanto division that would become world affordable, wholesome food.” At the time, this Vision statement Novus. In 1991, in an effort to focus on its was considered a bold goal and some questioned how Novus core businesses—seed, herbicide and could realistically make a contribution. We were a small, business- biotechnology—Monsanto sold its Feed to-business company with two products for the poultry industry, Ingredients division to Mitsui & Co., Ltd. but we understood that Novus’s core knowledge of health and ( and Nippon Soda Co., Ltd. nutrition related to poultry could be beneficial to other species. ( The new owners saw Novus’s strategic potential for growth. Working from a strong base of scientific understanding, we have brought to market more than 100 new products over the past decade. Today the In our first year, we put into place the Novus product portfolio provides a holistic approach to Health through corporate Vision of “helping to feed the Nutrition for poultry, cattle, pigs, pets, farm-raised fish, horses and people.GRI: 2.3, 2.4, 2.5, 2.6, 2.7 and 2.8 Novus International, Inc. Health through Nutrition 2009 | 12
  • 14. Working Closely with Our Customers Novus is committed to having a genuinely We are motivated to contribute to an agriculture industry that is global reach. We connect with our customers equipped to provide nutritious, affordable food to people everywhere at the local level, work with them in their own in the world and to do so through sustainable, responsible practices. communities and understand their needs in a Novus has a culture of sustainability that begins at the individual level meaningful way. Novus customers have the and carries through to the marketplace. We approach our work through unique experience of localized research and the lens of sustainability, and this is a requisite consideration at Novus. development, technical support, customer service Every business project is cross-checked to ensure that our criteria for and logistics. This commitment to working closely sustainability are achieved. with our customers provides Novus with real- time, hands-on knowledge of current and future The need for food is projected to grow by 100% over the next four customer needs. decades. We have made great strides as an industry, developing strategies to improve productivity including crop, genetic and nutritional We work with our customers to improve technologies. However, there their business operations through increased is still much work that needs productivity and profitability. Novus’s Health to be accomplished. For through Nutrition programs support healthy, example, we are currently happy animals that are more productive and only achieving 60% of the generate less waste, reducing their environmental genetic growth potential of impact. Additionally, Novus products protect the broilers. Technology related nutritional quality of feed and feed ingredients, to nutritional strategies and which are farmers’ largest operational best management practices investments and most important tools for can close this gap. As the ensuring livestock health. productivity of our industry increases, so does access to The Importance of Agriculture affordable, wholesome food. Novus’s history and largest market segment is based in livestock agriculture. The importance of achieving our Vision comes full circle when you consider the growing demand for food on our planet. Meeting this need can only be achieved through the technological innovation of companies like Novus.GRI: 2.7 Novus International, Inc. Health through Nutrition 2009 | 13
  • 15. Health through Nutrition Our products and programs offer Health through Nutrition. Every day, the collective efforts of our employees are focused on achieving a higher quality of life, for animals and people, through nutrition. Our heritage and core strength is science, which will always be the bedrock from which we continuously innovate. Today Novus employs over 150 scientists— more than a quarter of our entire employee population—who have attained a Ph.D. or Master’s degree in animal science or a Doctorate of Veterinary Medicine. The dedication of these employees builds on our many years of experience in animal nutrition, and continually strengthens our core competence in scientific research and innovation. Novus scientists work in laboratories around the world, including Brazil, China, Vietnam and the United States. By establishing research facilities at the local level, where our customers live and “Slides,” Julia Dibner, Cell Biologist and Photographer work, we are able to better understand and serve David Burt, Artistic Director, 2009 their needs. Media: Digital Photography Cells from the organs and bones of animals were prepared and stained for scientific analysis, Our entire organization is oriented towards then photographed microscopically. The artists then isolated forms and compositions present collaborative innovation. Novus continually in the images, and cropped and manipulated the photographs to create a finished piece. expands our global partnership network of universities, non-governmental organizations (NGOs) and industry associations. Through these relationships, we engage in joint research projects with students, professors and subject matter experts to adapt best-in-breed solutions for local challenges.GRI: 2.7 Novus International, Inc. Health through Nutrition 2009 | 14
  • 16. A Standard for Sustainability Major Milestones Novus’s first product defined a standard for sustainability for the more than 100 products that the company has since developed. ALIMET® feed supplement was first introduced to In 2009, we celebrated the 25th anniversary the poultry industry by Monsanto in 1979. The product helped farmers feed their animals of ALIMET production at our facility in more efficiently, enabling them to raise healthier chickens while lowering feed costs. Chocolate Bayou, Texas, and the 50th Thanks to ALIMET, farmers were more productive, more profitable and better able to anniversary of SANTOQUIN®, the first provide the world with greater quantities of wholesome food at an affordable price. feed additive approved by the FDA. ALIMET also helps animals digest feed more efficiently, which has important benefits to These two livestock feed additives have the environment. Nitrogen, a chemical component in animal waste, is a pollutant to both helped improve animal health and enhance land and water. Poultry fed ALIMET produce waste with lower nitrogen levels. ALIMET business operations for producers around demonstrates that a leap forward in agricultural productivity can be achieved without the world for many decades. increased strain on the environment. Additionally, as a liquid methionine source, ALIMET helps feed mills operate more Over the last 25 years, we have grown the efficiently, reducing energy requirements. The organic acid effect of ALIMET, particularly ALIMET production facility in Chocolate in combination with other organic acids, is successful in reducing harmful bacteria, Bayou into the largest liquid methionine such as Salmonella, in feed. manufacturing plant in the world. Novus’s nutrition solutions for the poultry industry resulted in dramatic productivity SANTOQUIN helps farmers get the increases that are one of the great agricultural success stories of our time. In the next greatest return on their largest operating wave of innovation, Novus research scientists discovered ways to apply our company’s investments: feed and feed ingredients. core expertise in health and nutrition to other animal species and industry segments. SANTOQUIN protects feed from the They found ways that other animals could benefit from Novus’s insights into poultry damaging effects of oxidation, which is nutrition, leading to a range of products that bring Health through Nutrition to cattle, beneficial to animal health and to farmers’ pigs and farm-raised fish. sustained business operations. Our extensive experience with production livestock has proven to be equally important to The quality of feed ingredients has a direct improving the health of pets and their owners. Novus’s Arenus® division offers nutrition and measurable impact on the health of solutions for dogs, horses, ornamental fish and birds. Arenus delivers products through animals. Animals who are fed a quality diet, retail channels directly to pet-owner consumers, creating a business-to-consumer sales balanced with the proper levels of amino channel that supplements Novus’s primary business-to-business sales model. acids, have a lower incidence of health Novus recognizes that many of the challenges faced in animal health and nutrition are challenges and are more productive. similar to the challenges we face as humans, such as increasing bone strength, reducing joint-related lameness and building lean muscle mass. So we applied our core expertise to the area of human nutrition, and in 2009 launched Stratum™ Nutrition, which offers a range of specialty and functional ingredients to the food supplement, food and beverage industries.GRI: 2.7 Novus International, Inc. Health through Nutrition 2009 | 15
  • 17. Sustainable Culture Novus’s company culture of global sustainability When a holistic system functions at optimum efficiency, is expressed through three basic principles: output is maximized and waste is minimized. Taking an integrated viewpoint is characteristic of a Novus-style solution. This point of Maximize Output, Minimize Waste view takes into consideration not only the intended result, but also Collaborate by Sharing Information the by-product of that result. As part of our culture, we strive to Local Solutions for a Global Marketplace conduct our work in ways that minimize our environmental footprint. Novus products are geared towards maximizing output and minimizing waste. Leveraging a broad product portfolio, we take a comprehensive approach to optimizing the health of animals. This approach maximizes farmers’ outputs, fortifies livestock against disease and ultimately leads to the production of higher quality food. Novus’s Health through Nutrition programs support healthy, happy animals who generate less waste for the environment and are more productive. On June 3, 2009, the Governor of the State of Missouri, Jay Nixon, along with 450 other guests, participated in a ribbon release ceremony, commemorating the opening of Novus’s Platinum LEED Certified global headquarters facility. Platinum LEED is the highest energy and environmental designation available in the U.S.GRI: 2.7 Novus International, Inc. Health through Nutrition 2009 | 16
  • 18. Sustainable CultureAt Novus, sustainability begins at the individual level and isevident in the daily activities of each employee. It is demonstratedin the way that employees put into practice our collectiveaspirations, Novus’s Mission, Vision and Core Values. Novus International, Inc. Health through Nutrition 2009 | 17
  • 19. Collaborate by Sharing InformationNovus’s culture is shaped by the spirit of discovery andinnovation on which our rich history is based. Our collaborativework style encourages the open flow of information amonga community of colleagues who share common interests inscientific progress and improving the markets we serve.At Novus, a collaborative approach is also typical of ourrelationships with customers. We freely share our industryknowledge with customers in an open dialogue about theirmost important business challenges. We consult with them to Chief Sustainability Officerdevelop innovative solutions that meet their specific needs. Joyce Cacho, Ph.D.Our open culture is also reflected in the relationships wehave developed with students and professors at universitiesaround the world. We have something to learn fromeveryone and, in turn, we want to share all that we can.Our office and meeting spaces are open to encourage discussion This past year, we formalized our commitment toand collaboration. People know each other on a first-name sustainability at Novus, adding the role of Chiefbasis and respect one another as individuals. This sustainability Sustainability Officer. In January 2009, Novusreport to stakeholders, Health through Nutrition, is another welcomed Joyce Cacho, Ph.D. to coordinate andexample of Novus’s commitment to sharing information openly. synergize our sustainability efforts. Cacho leads the planning and implementation of Novus’s globalLocal Solutions for a Global Marketplace corporate social responsibility program and initiatives. Her extensive background in managingAt Novus, we place a high priority on understanding our customers’ international agribusiness initiatives and projectsneeds and believe that living and working in their specific with The Corporate Council on Africa (CCA) and U.S.geographies are key to building this knowledge. Additionally, International University (USIU) have prepared her towe have found that working directly with our customers, globally, lead Novus’s sustainability efforts around the a critical differentiator for Novus in our industry. For thesereasons, we are committed to having a genuinely global reach.Novus customers have the unique experience of localizedresearch and development, technical support, customerservice and logistics. We understand that our customers’ needsvary based on their location in the world. Local resourcesenable us to provide support with agility and in a way thatbrings demonstrable value to our customers’ businesses. Novus International, Inc. Health through Nutrition 2009 | 18
  • 20. Corporate Governance Statement Corporate governance at Novus is the The Novus Compliance Committee responsibility of the Board of Directors. In 2005, the Board chartered the Novus Compliance Committee (NCC), The Board represents the interests of comprised of all members of Novus’s senior management team as well as our shareholders and stakeholders, including shareholder representatives. The purpose of the NCC is to review and evaluate employees, customers and the public. The Board, compliance issues and concerns throughout the organization. It also focuses with the advice of the executive management on prevention, detection, response and security and proposes actions for the team, determines the company’s long-term continuous improvement of Novus’s business management and operations. strategy, while the Novus management team defines the company’s short-term strategies The matters within the scope of the NCC’s review include all legal and and handles day-to-day business operations. regulatory matters that affect or may affect Novus’s operations worldwide. It also oversees conformity by Novus with the requirements of organizations The Novus Integrity System in which the company maintains memberships and with standards, In 1998, the Board approved and adopted policies or programs to which Novus subscribes. The NCC manages the Novus Integrity System (NIS). The NIS is compliance issues and reports to the Board on a periodic basis. comprised of written policies to ensure that all employees understand that good ethics and good business are synonymous when viewed from moral, legal and practical standpoints. The NIS is reflective of the Board’s commitment to corporate and personal integrity, and prompts every employee to conduct the business of Novus within an ethical framework.GRI: 3.13, 4.1, 4.3, 4.4, 4.6, 4.8, 4.9 and 4.11 The Novus Board of Directors Meeting in Tokyo, Japan | 19
  • 21. Novus’s Global Headquarters Our new 90,000 square-foot (8,361 square-meter) encourage communication and collaboration among employees. A headquarters is Platinum LEED certified, the floor ventilation system allows employees to adjust the temperature highest energy and environmental designation of their personal workspaces. The facility includes a fitness center available in the United States. It is the fourth that is open to employees at no charge and also offers employees building in Missouri and one of only 150 in the free fitness classes and training. The company allocates reserved entire United States to achieve this distinction. parking spaces close to the building as an incentive for employees to carpool or to drive low-emission or fuel-efficient vehicles. In recognition of our design and building efforts, in 2009, Novus President and CEO, Thad Simons, Novus provides employees with wholesome, healthy lunches at won the “Heroes of the Planet” award for no charge each day. Lunch menus for the Novus Café are planned Sustainable Employee Programs. This award by a licensed nutritionist and are low fat, low sodium and portion recognizes the achievement of a company that controlled. Employees benefit by learning about good nutrition, has outperformed its industry in promoting and having healthy options to eat for lunch and many have even advancing environmental sustainability. reported weight loss. Novus benefits because employees stay on-site to eat their lunches, eliminating the commute time to and The building has multiple skylights that provide an from restaurants. Additionally, employees collaborate with one outdoor view and natural light to 90% of employee another over their lunch breaks in the Novus Café, which is great workspaces. The open floor plan is designed to for our culture and for advancing the goals of our organization. Our headquarters has a wide range of green features, including 5,000 square feet (464 square meters) of solar panels, a storm water system, bamboo floors and energy-efficient flat screen televisions in community areas. The facility was built out of materials derived from rapidly renewable, recycled and salvaged resources. Additionally, we have incorporated native Missouri flora into our landscaping. We are also working with the Missouri Department of Conservation to create habitats on our property for wildlife, including birds, reptiles and fish.GRI: 2.9; KPI: EN3 and EN26 Novus International, Inc. Health through Nutrition 2009 | 20
  • 22. “As a company, we believe that our commitment to global sustainability begins at home.” –Dr. Giovanni Gasperoni, Executive Vice President, Marketing and SalesGRI: 2.9; KPI: EN3 and EN26 Novus International, Inc. Health through Nutrition 2009 | 21
  • 23. Sustainability in PracticeWe approach our work through the lens of sustainability, a requisite consideration at Novus. Every business project is cross-checked to ensure that our criteria for sustainability— social, economic and environmental (SEE)—are achieved. Novus International, Inc. Health through Nutrition 2009 | 23
  • 24. Corporate Social Responsibility Novus employees are integrated into the fabric Novus has direct relationships in more than 90 countries on six continents with of the communities and countries in which we customers, suppliers, consumers, students, teachers and neighbors. We believe live and work. Ultimately, we are all citizens our diverse employee base and inclusive work environment are essential to of the planet and the natural environment innovation and central to how we differentiate ourselves in the marketplace. that provides the basic resources that fuel our businesses and sustain our lives. We are an equal opportunity employer, committed to the hiring, advancement and fair treatment of individuals without regard to race, color, religion, gender, For Novus, Corporate Social Responsibility sexual orientation, age, national origin, ethnicity, disability, veteran status or (CSR) begins with a commitment to and by each any other status protected under federal, state or local law. We comply with individual employee. Each employee brings the law, but mere compliance is not our motivation. We aspire to a higher a unique perspective and knowledge to the standard, based on a deeply-rooted sense of integrity and social responsibility. company—skills, talents and experience— that are the essential elements of the value we are able to deliver to the marketplace. Each year, Novus CSR at Novus is not “charity” work or employees volunteer their time, in partnership a contribution. It is the way we engage with the United Way, to with the world around us to develop the support organizations relationships that can make a long-term, such as the St. Louis Area Food Bank. positive impact. CSR at Novus is about taking the responsibility and concerted action to seek out synergistic collaborations. Giving a charitable donation to an organization or funding the construction of a building at a university are finite activities. Building synergistic relationships requires a commitment and an investment of time, but the positive effects are ongoing. Relationship building is the Novus approach to CSR. To learn more about the CSR activities of our parent companies, please visit Mitsui CSR report: Nippon Soda annual report: 2.5 Novus International, Inc. Health through Nutrition 2009 | 24
  • 25. Employee DevelopmentAs a knowledge-based company, we recognize that ourgreatest return on investment in employees comes from ouremployee development programs—education and training.The next few pages provide examples of the manydevelopment programs we offer at Novus. Green TeamThe Novus Management System Our Green Team is a volunteer-based employee teamAll employee development at Novus is rooted in the responsible for integrating environmentally sound practicesNovus Management System (NMS)—a living set of into our day-to-day activities at Novus. From office supplies toprinciples that guide us in most effectively structuring, recycling, the Green Team helps us live our Mission by engagingstaffing and managing our organization. in and providing education about environmental conservation. Activities of the Green Team include:Among the tenets of the NMS are honesty, respect and fairness.Novus managers have many difficult decisions to make, and Nature Conservationoften there are no clear answers. NMS principles help guide Green Team members address site-specific opportunitiesour decision-making process so that we keep these tenets in to improve Novus’s footprint on water, soil and energymind, always striving for trust—whether between managers conservation.and subordinates, or throughout the organization as a whole. Community InvolvementThe Novus Online Learning System Our Team collaborates with organizations that are working toThe Novus Online Learning System is a comprehensive improve our local communities, including Habitat for Humanitytraining resource that is available to every Novus employee. and the Missouri Department of Conservation.There is a wide range of online training available, includingmodules based on the Novus Management System, the Global EngagementNovus Integrity System and our products and markets. Novus Green Teams are currently being established at our facilities throughout the world.In addition to modules that are specifically about Novus’sbusiness, the system also provides a wider selection ofprofessional development tools, including foreign languagecourses from Rosetta Stone® and value-added sales training. Novus International, Inc. Health through Nutrition 2009 | 25
  • 26. The Novus Speakers Series Video Diaries and PodcastsThe Novus Speakers Series creates opportunities More and more, we are using technology to share information, learn andfor our employees to become better informed stay connected globally. For example, when our EVP, Marketing and Sales,about issues affecting their communities and our Dr. Giovanni Gasperoni, recently visited Kenya, he captured photographsindustry. Speakers from both inside and outside and maintained a video diary to document the trip. To share his experiencesthe company address employees. One of our goals with his fellow employees, he posted the media to NovusConnect, so thatfor this program is to capitalize on the diversity all employees would have the opportunity to learn firsthand about theof our workforce by fostering opportunities for significance of our work in Africa.employees to learn from one another.Speakers over the past year have includedrepresentatives from the United NationsAssociation, Habitat for Humanity,Stray Rescue, Missouri Department ofConservation and the United Way. We postvideocasts of the Novus Speaker Series on ourcompany intranet, NovusConnect.NovusConnectThrough NovusConnect, we provide theopportunity for all employees around theworld to learn and collaborate with oneanother. NovusConnect serves as a centrallocation for sharing information, fromresearch data to corporate forms, in anorganized and searchable environment.NovusConnect also provides a variety of toolsto support global communication, such asannouncements, alerts, presentation librariesand MySites (our version of Facebook). Thesetools allow employees to share information about More and more, we are using technology to sharethemselves and access information about otherpeers in the organization. Novus employees can information, learn and stay connected globally.create blogs, join discussion forums and usea survey center to create polls about mattersimportant to their roles in the organization. Novus International, Inc. Health through Nutrition 2009 | 26
  • 27. The Novus Art Program All HandsThe Novus Art Program provides our employees an opportunity to select Each quarter, Novus gathers for an all-handsart created by living artists in their local regions, without any restriction on communications meeting. These meetings includethe artist’s medium or subject of choice. The pieces selected by employees updates from various departments across theare then displayed at our global headquarters in St. Charles, Missouri. organization and typically feature presentations by our personal trainers, nutritionists and Green Team.To date, our collection includes pieces from Brazil, China, Haiti, the All communications meetings are video recordedUnited States, Vietnam and Zimbabwe. The program gives our employees and available for viewing by all Novus employees,the opportunity to appreciate the diversity of our global culture. At Novus, globally.we value art and its contribution to our shared humanity. Special EventsAs part of the Novus Art Program, we host a fundraising campaign andevent each year to support the Arts and Education Council. As part of this Novus hosts a variety of special events for employeescampaign, we host the Annual Novus Art Walk. Last year, more than 20 each year. For example, this past November, welocal artists showed and sold their work at the Art Walk. More than 300 hosted a Healthy Thanksgiving at our headquarterspeople attended this festive event at our global headquarters and enjoyed for all employees and their families. The eventart, live music and food. featured many traditional Thanksgiving delicacies, such as stuffing, cranberry sauce and mashed This past year, we added an potatoes, but with a healthy preparation (low fat, low “Arts” component to the Novus sodium, portion controlled). As a special gift, Novus Global Scholars Program. Our gave families a copy of a cookbook featuring many first recipients will be dancers of the dishes prepared for the event. in the St. Louis Ballet. Each year, the St. Louis Ballet recruits Snapshot Newsletter top-quality talent based on artistic merit. The Novus program Novus provides education on health, nutrition and will help support the living sustainable practices for everyday life to employees expenses of these talented artists. through many platforms. For example, we send the All dancers from the St. Louis Novus Snapshot newsletter to each employee on a Ballet give back to the community monthly basis. The Snapshot provides educational through education programs information on current events both inside Novus for local children. Additionally, and the industries in which we work. Each issue Novus will sponsor the creation also includes a healthy recipe provided by Novus’s of a modern dance piece that will approved nutritionist. be part of the St. Louis Ballet’s upcoming performance season.“A Nice Day,” Zhou Renkang, 2009 (China)Media: Chinese Brush Painting on Rice Paper Novus International, Inc. Health through Nutrition 2009 | 27
  • 28. Sustainability Projects Around the World We encourage our employees, in each region of the world, to seek out Latin America North and engage in sustainability programs. We invite you to read about a Agriculture producers experience various nutritional challenges, few of these over the next few pages. often highly specific to their local conditions and production infrastructure. Latin America South Through a partnership with industry leaders in the state of Alagoas, To help address the challenges of our customers in Latin Brazil, Novus is working with more than 1,000 family farmers to create America, we constructed a manufacturing plant in Mexico City. and improve sustainable farming systems. Novus has partnered This facility allows us to offer our Latin America North (LAN) with local government leaders, Globoaves (Brazil’s largest producer customers smaller product packages and custom blends or of day-old chicks and fertile eggs for the production of broilers and premixes. These blends include a variety of products such as laying hens) and Sebrae (a small business development organization) MHA®, MINTREX® and AGRADO®. Through the use of Novus to offer poultry farmers a way to improve their quality of life. We are blends and premixes, our customers can address specific transferring our experience in poultry nutrition and animal husbandry production challenges by purchasing smaller quantities of to help the farmers produce more affordable protein. The goal is to multiple products in one package. These smaller-quantity expand this program to reach 16,000 families within the next five years. packages also provide savings for our customers in terms of For more information, visit transportation and warehousing costs. Our carbon footprint and is reduced, as products are produced locally in appropriate China quantities, and transportation distance is drastically reduced. The Novus Graduate Scholars Program ( Africa engages eight agricultural universities in China. Each year, a panel Smallholder agriculture is fundamental to the economic growth of Novus judges chooses four post-graduate students from each of emerging markets. From our experience, we know that university to receive a monetary scholarship that partially funds the smallholder farmers have the power to produce the food that students’ educations. One scholar from each university is invited to our is needed in the these regions and that access to affordable international research center in St. Charles, Missouri to learn about the livestock inputs and technologies is essential. In Africa, more global agriculture industry and to partner with our scientists on research than 70% of the population earns their livelihood through relevant to their local market needs. Our purpose is to encourage strong farming. Most of these are smallholder farmers who are research programs and help the students develop an international dependent upon unreliable rains and an uncertain agricultural perspective on agriculture. Additionally, through this program, we have structure. developed a network of technical collaborators in China. North-West Agriculture & Forestry University One of our goals in Africa is to provide smallholder farmers Sichuan Agricultural University with accessible livestock solutions to better feed their families Huazhong Agricultural University and increase their incomes. By providing education and Health North-East Agricultural University through Nutrition solutions for their livestock, farmers will increase their productivity and have more products to sell at China Agricultural University market. This additional income can be used to feed their families Nanjing Agricultural University more nutritious food, pay school fees, health expenses and Zhejiang University purchase additional livestock. South China Agricultural University 4.17 | 28
  • 29. Asia Pacific Asia Pacific is one of the most aquaculture-dependent regions of the world, from the standpoint of economic development and food supply. The aquaculture and livestock industries rely heavily on the use of fish meal, which is derived from wild, ocean- caught fish. However, fish meal is an unsustainable and increasingly expensive source of protein for agriculture supplementation. Our team in Asia Pacific has implemented a fish meal replacement program that we employ to offer customers a significantly lower cost of feed with optimized animal performance. The program supports amino acid balance, animal health and meat quality. It is environmentally friendly, because we substitute a significant percentage of fish meal and minimize the impact of fish caught wild from our oceans for this purpose. Novus works with feed mills in Europe Africa that support the work of At Novus, we place an emphasis on the sustainability smallholder farmers. of our solutions for our customers. In Europe, we have developed a program that optimizes the feed milling process by using a surfactant. The program utilizes our SURF·ACE™ product to improve the efficiency of the feed production process. Feed production can be an energy-intensive process, especially for those using granulators or extruders. Customers using SURF·ACE in their feed mills have experienced a 10% reduction in energy consumption while increasing the output of their presses. This program improves the mills’ efficiency, reduces the impact on the In Alagoas, Brazil, Novus is working with more than 1,000 family environment and increases feed production. farmers to create sustainable farming systems.GRI: 4.17 Novus International, Inc. Health through Nutrition 2009 | 29
  • 30. Novus Scholar Programs Talent Sustainability China Meeting the global demand for food in the future Novus provides four graduate scholarships at the eight leading agriculture- based universities in China, with students eventually traveling to our corporate will require people who are willing to dedicate their headquarters to participate in an internship program. careers to the agriculture industry. At Novus, we work to attract and develop new talent, not only for The Novus Research Fellowship in China supports the development of internationally competitive research programs for promising young scientists our company, but for the benefit and advancement specializing in the field of animal nutrition and health. of the entire industry. India Novus Scholar Programs Our partnership with Bombay Veterinary College ( links the scientific talents of Novus with one of the most established veterinary institutions Through various Novus Scholar Programs, we award in Asia. This provides an important opportunity for collaboration that is mutually beneficial, while encouraging the continued growth of agriculture-related studies scholarships to support the research and work of in the region. students and professors who are and will be industry leaders in agriculture. In addition to funding their Korea studies, we also seek to build relationships with these In 2008, we established a partnership with Pukyong National Universitys (PKNU) College of Fisheries Sciences ( in Busan, Korea. Through Scholars and offer opportunities for many of the this program with PKNU, we are supporting aquaculture students who have participants to work with us as interns in our research demonstrated promise in areas associated with nutrition, metabolism, growth, facilities around the world. We can learn from their development, health and disease in aquaculture. research and they can benefit from our industry Mozambique experience and relationships. In some cases, these Last year, we became the first private-sector company to sponsor the African Scholars become Novus employees, customers or Women in Agricultural Research and Development (AWARD) program suppliers. (, which seeks to advance the careers of African women. We invite you to learn more about the AWARD program in the Civil Society section, later in this report. Goals for the program include: Thailand • Encourage students in animal agriculture to In 2009, we established a relationship with the Department of Animal Science, develop strong research programs and gain Faculty of Agriculture at Kasetsart University ( in Thailand, where an international perspective on agriculture. we award a scholarship to a student working on a Master’s degree in Poultry Nutrition. This student is also given the opportunity to participate in an internship at our research headquarters. • Build relationships with professors and students who are and will be the future leaders in agriculture. Vietnam In 2008, we funded the construction of a 1,000-square-meter Aqua Research Facility at Nong Lam University Campus in Ho Chi Minh City. We fund two • Establish a technical collaboration network scholarships through this program. to help us develop solutions relevant to our customers in diverse regions of the world. United States At the University of Arkansas (, we have endowed a Chair in Poultry Science. The professor appointed to that Chair works with visiting scientists from other universities throughout the world and teaches graduate- level courses related to nutrition and metabolism. At Auburn University (, we award a scholarship to aGRI: 2.9 and 4.12 graduate student and provide that student with a paid internship at Novus. | 30
  • 31. Career Development and Placement Programs Novus Matching Gift Program We actively engage with organizations, industry and In addition to volunteering time to non-governmental organizations, our academia to support the career development of talented employees also make financial contributions. To encourage our employees students and develop channels for recruitment. to become engaged in civil society and to give back, we have established the Novus Matching Gift Program. Through this program, the company matches, dollar-for-dollar, contributions to qualifying local and global causes. Below are a few examples of organizations that have received support from the The mission of the Missouri Colleges Fund is to acquire Novus Matching Gift Program: resources to help educate students in member private liberal-arts colleges and universities, comprised of a 16-school network. Novus has established science-specific scholarships within the fund. During our two years of program participation, Meds & Food for Kids (MFK) is a St. Louis based non-profit organization with operations in Haiti since Novus has hosted a “Science Day” for scholarship 2003. In response to the earthquake in Haiti, Novus partnered with MFK to help raise donations and participants. On “Science Day,” students are introduced to distribute “Medika Mamba,” a fortified, peanut-butter-based, ready-to-use-therapeutic food (RUTF) a variety of people working in diverse occupations across to people left hungry after the disaster. For more information on MFK, visit our organization and other participating area companies. ® Heifer International helps people change their lives from a state of hunger and poverty into self-reliance and hope. They provide gifts of livestock and training, helping families improve Novus has aligned with Texas A&M’s agribusiness department their nutrition and generate income in sustainable ways. For more information on to establish a joint career placement program. Over the past Heifer International, visit year, Novus has collaborated with Texas A&M to provide full-time employment to five graduating students. Novus employees went the extra mile for our 2009 United Way Annual Giving Campaign. We achieved 110% of our goal with an overall participation rate of 87%, with 100% participation from our Little Rock employees. Novus employees volunteered their time to work at the St. Louis Area Food Bank, where they packaged more than 6,000 meals for the hungry. For more information on the United Way, visit IFAMA’s mission is achieved through providing members with multiple vehicles for information sharing, knowledge advancement, discussion and debate, networking and career development. IFAMA has established a global network of academic institutions that have agribusiness or related departments. Students are invited to present The Arts and Education Council (AEC), through donations, supports more than 80 non-profit arts and arts education organizations. Every year, the funds generated by the AEC provide more than five million research about agriculture technology and best practice children and adults the opportunity to experience music, theater, dance, film, literary arts, visual arts management at IFAMA conferences around the world. and outreach programs. For more information on the AEC, visit For a complete listing of Novus Matching Gift Program recipients, visit page 81 in the Appendix.GRI: 4.12 and 4.17 | 31
  • 32. Community must leave school or the workforce, and are not in a position to return until Our Vision for sustainability is global. But in later in life. Because the AWARD program has no age restriction, participating our global reach, we touch specific cities and women have the opportunity to re-engage in and add value to the industry in countries in which we live and work. Reflecting meaningful ways. our triple bottom line, our employees engage with their communities at multiple levels—social, “My goal is to help Mozambique’s farmers produce more poultry economic and environmental (SEE). Novus at a lower cost, raising incomes and increasing food security.” supports employees’ engagement in their –Mena dos Anjos, Novus AWARD Fellow communities through many programs. We have committed ourselves over the next five years to ten externships, Civil Society through which African women will work at our headquarters, another Novus collaborates with partners in civil society Novus facility or with one of our partner organizations such as the Missouri whose work aligns with the Novus Vision, Botanical Garden. Participants will receive mentoring to help them move to Mission and Core Values. We invite you to read the next level in their education. about some of these dynamic and collaborative relationships over the next few pages. In October 2009, we welcomed our first AWARD research fellow, Mena dos Anjos, a Senior Lecturer in Animal Nutrition at the University of Mondlane in Mozambique. Mena holds a Master of Science degree in Veterinary Medicine with a specialization in poultry production and health from the Royal Veterinary and Agricultural University in Denmark. Mozambique is heavily dependent on poultry production. In fact, more than Economic opportunity for women in Africa is a matter of 70% of rural families in Mozambique keep chickens, which contribute to social justice. Almost 80% of the agricultural labor force income and food security. The cost of poultry feed is a challenge for the in Africa is female, but only 10% to 15% of the continent’s people of Mozambique. Mena is working at Novus on a project to enhance agricultural students are female. Last year, Novus locally available dried peas to create a more feasible and low-cost feed became the first private-sector company in the United alternative for poultry. She is collaborating with researchers at Novus to States to sponsor the African Women in Agricultural understand the nutritional balance requirements when utilizing these locally Research and Development (AWARD) program and the available ingredients. first organization to host a U.S. placement of an AWARD fellow. AWARD seeks to advance the careers of African When she completes her program here, Mena will return to her academic women in agricultural research. position in Mozambique. She will try to attract more young people from Mozambique to animal nutrition research, and she will apply the research There is no age restriction for the AWARD program. This she worked on at Novus. Her goal is to help Mozambique’s farmers produce is important because the majority of similar programs more poultry at lower cost, raising incomes and increasing food security. restrict participation to women 35 years or younger in age. Due to family responsibilities, many African women For more information on AWARD, visit www.genderdiversity.cgiar.orgGRI: 4.12, 4.15, 4.16 and 4.17 Novus International, Inc. Health through Nutrition 2009 | 32
  • 33. milk dependency of calves and enables farmers to bring milk to market. Additionally, farmers gain the ability to raise healthier and more productive replacement heifers. To improve cattle nutrition in Uganda, our scientists developed a dry season supplement that also adds essential minerals and feed quality ingredients to Every country in Africa has unique locally available protein and energy sources. livestock industry challenges that require specific solutions. We are planning to test both programs in additional regions of Africa in the near future. In Kenya, a challenge for farmers is calf mortality. A cow provides a single source of income for many Kenyan families. If a family’s calf lives, it can support them in achieving a sustainable income. Calf mortality impairs the farmers ability to produce a steady income from selling dairy cows and supplying their local communities with dairy products. In 2009, our President and CEO, Thad Simons, was elected to the Board of Ugandan farmers struggle to provide adequate the Corporate Council on Africa, which has the goal of improving social and nutrition to their cattle during the dry season. economic conditions for the people of Africa by strengthening business In Uganda, longer dry seasons and the increased relationships between African countries and the United States. use of marginal land are compromising health and reducing the production of cattle. It is critical that we empower African nations and farmers, through knowledge sharing and technology, to build the capacity to meet their own requirements for In 2009, a team from Novus traveled to Africa to food. The continent of Africa’s demand for food is expected to greatly increase identify the priorities in these two countries and in the first half of this century. Our involvement with the Corporate Council on to determine how we could contribute. The Novus Africa is one way to collaborate with African farmers and facilitate an exchange team met with officials of the Nairobi-based ILRI of knowledge. and East Africa Dairy Development (established by Heifer International). After investing time in In the fall of 2009, Novus chaired two panels at the Corporate Council on Africa’s both countries to understand the challenges and Biennial Summit. The panelists discussed aquaculture and the role of education circumstances, we engaged our R&D scientists and technology in agriculture. to work towards solutions. For more information about the CCA, visit To address calf mortality in Kenya, we developed a nutritionally complete diet that reducesGRI: 4.12 and 4.17 Novus International, Inc. Health through Nutrition 2009 | 33
  • 34. Balancing the Agricultural Bottom Line The WAF, in cooperation with Novus, hosted the first Asia Regional Roundtable on March 8-10, 2009, in Phuket, Thailand. The theme of the Roundtable, “Balancing the Agricultural Bottom Line,” focused on the global and Asia-specific economic impact of the global recession on agriculture. Roundtable attendees were encouraged to discuss the case for creating strategic alliances in the food chain, sustainable practices for agricultural growth and the new paradigm in consumer requirements and food demand. The World Agricultural Forum (WAF) is a policy More than 75 people from 19 different countries participated in the event. neutral and internationally inclusive agriculture and Attendees included government officials, CEOs, academia, NGOs and farmers. agribusiness-driven forum that brings together leaders from private sectors with policy makers and key policy Novus, along with three other participating organizations, presented the influencers to focus on providing food, fuel, fiber and insights and discussed highlights from the event at the WAF’s Sixth Biennial water to the world’s growing population. World Congress on May 18-20, 2009, in St. Louis, Missouri. Based on the success of and interest in the Regional Roundtable model, the WAF plans to For more information about the WAF, visit host future roundtables over the next year in Brazil, China, Uganda and India. More than 75 leaders in agriculture from 19 countries attended the first World Agricultural Forum Asia Regional Roundtable, “Balancing the Agricultural Bottom Line.”GRI: 4.12 and 4.17 | 34
  • 35. OASIS® Helps Protect the Red-Necked Ostrich The largest of three species in the ostrich family, the red-necked ostrich was once abundant in Niger. Like other ostriches, this species’ population numbers are declining due to human Our Arenus division has partnered with the Saint Louis Zoo’s Orthwein environmental interference and predation. Animal Nutrition Center to study the effects of Arenus’s structural health supplement, STEADFAST®. The partnership, in the form of a grant, placed In an attempt to rescue the red-necked a graduate student from the University of Missouri – Columbia with the ostrich from becoming an endangered Saint Louis Zoo for a two-year period. The primary focus of the research species, Novus developed a plan with the is assessing the effects of STEADFAST on enhancing joint health in Saint Louis Zoo’s Saharan Wildlife Recovery various mammals. Center. The Zoo’s Recovery Center is a world leader in combating the extinction of Saharan The importance of animal nutrition and its effects on treating and/or wildlife. preventing health issues is a new undertaking in zoos. The Saint Louis Zoo is a world-class facility and one of only a few in the United States that Upon hatching at the Wildlife Recovery staffs an animal nutritionist and maintains a dedicated nutrition center. Center, red-necked ostriches often face a long trip to the facility where they will grow to adulthood. During this trip, nutrition and For more information about the Saint Louis Zoo, visit hydration are frequently not available for the hatchling. Our OASIS hatchling supplement, originally developed for domestic fowl, is a hydrated nutritional formulation that supports this critical phase of life. OASIS is used during transport from the hatchery to farms to maintain gut health and hydration. Novus is providing OASIS to the Zoo’s Saharan Wildlife Recovery Center. OASIS will benefit the red-necked ostrich, as it has done for chickens, turkeys and ducks in farm environments around the world.GRI: 4.12 Novus International, Inc. Health through Nutrition 2009 | 35
  • 36. Industry Associations We recognize our responsibility to collaborate and cooperate with Recognition other stakeholders in our industry. We participate in a range of Novus is very proud of the meaningful awards and recognition industry associations as a highly effective way to integrate our we have received over the past year. Below are a few examples: Vision into the mainstream of modern agriculture. Below are a few examples of industry associations that Novus employees participate in: In 2009, we proudly became the first company in the feed-ingredient industry to become a member of the Sustainable Agricultural Initiative (SAI) Platform. The food industry established this organization to support agricultural practices and HEROES OF THE PLANET production systems that preserve and promote the efficient use of resources. SUSTAINABLE EMPLOYEE PROGRAMS Awarded to Thad Simons St. Louis Business Journal The Center for Food Integrity (CFI) was established in 2007 to increase consumer trust and confidence in the contemporary U.S. food system. Its primary mission is to promote dialogue, model best practices, address issues that are important to consumers and serve as a resource for accurate, balanced information about the U.S. food system. TOP 50 PLACES TO WORK Awarded to Novus The American Feed Industry Association (AFIA) is the world’s largest organization solely devoted to representing the business, legislative and regulatory interests of the animal feed industry and its suppliers. The program establishes comprehensive standards of excellence that go beyond existing regulations to maximize food and feed safety. RESPONSIBLE CARE ENERGY EFFICIENCY AWARD Awarded to Novus The United States Soybean Export Council (USSEC) represents U.S.-grown soybeans, soybean meal, IP soybeans and soy protein isolates to international markets. USSEC travels the world with partner companies like Novus, educating farmers on the advantages of soybean inclusion into the rations for their animals. For a complete listing of Novus industry association memberships, please visit page 80 in the Appendix.GRI: 2.10, 4.12, 4.13 and 4.14 | 36
  • 37. Economic The basic definition of sustainability is to “keep a process or action going.” Healthy businesses provide livelihoods for families, technologies that improve the quality of our lives and the framework for innovation that will be required to sustain our growing world. Core to our Vision is supporting our customers with products and services that improve and create efficiencies in their business operations. In the fabric of economic sustainability, we are all interwoven, and the strength of one is dependent on the strength of the entire community.GRI: 2.2 and 2.7 Novus International, Inc. Health through Nutrition 2009 | 37
  • 38. Product Development at Novus Successful product development is the result of great Collaborating to Meet Demand Responsibly ideas and a structured process that ultimately bring In business, innovation is where the commercial meets the creative. Within the these products to market. At Novus, innovation begins Novus framework of innovation, we generate ideas that can be commercialized with our individual employees. We seek excellence from profitably. We believe that innovation requires well-rounded, collaborative input all employees, expect alignment and value diversity. across our organization and with customers and partners outside of Novus. We reward curiosity and initiative. We seek to develop For this reason, we have created an innovation structure that integrates the products and programs that are responsible from a competencies and ideas of both internal and external sources. We believe that social, economic and environmental (SEE) standpoint. varied perceptions bring value and honesty to the innovation process. We know that innovation is a necessity for meeting the food demands of our world in the future. Value chain synergies are central to meeting the global food demands of the future. Through joint R&D, we combine our core capabilities to bring new Structure is critical to successfully bringing innovative products to market. New product and process technologies are essential to products to market. At Novus our innovation framework our future as we work to fulfill a dramatically higher demand for food using is based on four pillars: virtually the same natural resources we have today. Strategy The Novus Idea Network relies on collaboration from internal and external Defining the long-term application for an idea, conditions sources. necessary for success and assuring alignment with our Mission, Vision and Core Values. The Novus Idea Network Idea Generation and Capture A formalized process for idea generation and capture that considers the viewpoints of our internal and Discussion University external network of stakeholders. Forums Network Idea Social Infrastructure Work ows Networking Validating the business and economic aspects of an Novus Working Employee idea. Ensuring that there is a real application for this Teams Diversity Idea Recruiting Customers idea in the markets we serve, that it can be responsibly Network produced and that it will generate profits. Intranet Associations Balancing Our Idea Portfolio Internal ERP CSR External Maintaining a portfolio of ideas and strategically Sources Sources selecting what ideas to commercialize and when. | 38GRI: 2.2 and 2.7
  • 39. Value Chain of Food Production Localized Product Development with Customers Novus and our products are part of the value chain of food production and we take this Working with our customers at the local level is key to innovation at responsibility very seriously. We share this Novus. It is the reason we work directly in so many different countries. responsibility and stewardship with the partners In all regions where we conduct business, we hire employees who have we choose. At Novus, we select partners whose the education, knowledge and local expertise to support our customers business practices align with our Mission, Vision and collaborate to meet their needs. By working locally, we are able and Core Values. Through the Novus Quality to understand how our products can be applied effectively in varying System (NQS), we demand accountability circumstances—ranging from multi-national corporations in and transparency from ourselves and our Brazil to smallholder farms in Africa. partners. We choose our partners based on mutual alignment of best practices including: Knowledge Sharing and Transfer Traceability Central to our product development process is the idea that creating best Quality Assurance practices and successful models that others can replicate extends the Food Safety Practices power of innovation. We want the work we do through our innovation Employee Standards and Safety process—including research and development—to be applied as widely Animal Well-Being as possible. We are committed to creating scientifically-based innovations that promote Health through Nutrition. Today’s consumers are more aware of and engaged in the food they eat, from both We feel a deep responsibility to share the knowledge we gain and the nutritional and social points of view. Greater technology we develop. Through transferring knowledge, our goal awareness is driving new standards of is to empower people to improve agricultural practices in their local production and the opportunity for education. communities. This commitment is tangibly expressed in our direct In our product development process, we and local approach with our customers, the way we collaborate with focus on supporting our customers and partners and through the collaborative relationships we build with non- consumers in this evolving industry. governmental organizations (NGOs), students and professors. Novus is Part of the Value Chain of Food Production Feed & Producer Processor Distributor Wholesaler Retailer Consumer Supplements From Field to ForkGRI: 2.2 and 2.7 Novus International, Inc. Health through Nutrition 2009 | 39
  • 40. Novus Quality System The Novus Quality System encompasses a collection of documentation and process surrounding management review, integrity, training, product development and manufacture of products. The Novus Quality System assures that our customers around the world are sold products in which they can be confident. As part of this system, raw material specifications, manufacturing specifications and sales specifications ensure that all manufacturing plants adhere to the parameters we set forth. The manufacturing specifications may include product appearance, particle size, moisture, uniformity and active ingredients. The sales specifications summarize the functionality of the product and provide the customer with the characteristics that Novus will guarantee about the product. As an example, from the beginning of the manufacturing process, Novus develops raw material specifications. We conduct a minor impurities analysis to ensure that raw materials are free of undesirable substances, such as heavy metals. Manufacturing specifications assure compliance to the sales specifications, determined through input provided by Novus Marketing and Sales. The product can then be delivered to the customer with a guaranteed functionality. These specifications benefit Novus and our customers. Our advantage is a thorough understanding of the critical points along the continuum of manufacturing-to-product delivery and usage.GRI: 2.2 and 2.7 Novus International, Inc. Health through Nutrition 2009 | 40
  • 41. University Research Collaboration Novus develops mutually beneficial partnerships with university research In the United States, we have worked with North Carolina State University facilities around the world. Through these initiatives, researchers and and poultry producers to determine the effects of trace mineral nutrition on students are able to pursue the expansion of knowledge and the application bone development and strength. These trials were developed in response of that knowledge to advance agriculture. These alliances allow us to to direct concerns from the industry to solve an economic and animal interact with businesses and to take our research to local field conditions welfare issue. to benefit our customers. For more than ten years, we have worked with the University of Missouri – In the dairy region of Argentina, we worked with university extension Columbia. This relationship has helped us discover facilities that mimic field agents to evaluate our ruminant nutrition programs under field conditions. conditions to collect reliable data. The extension agents put us in contact with a farmer whose herd was experiencing leg problems and milk fat challenges. Through this partnership, we were able to develop a program with our MFP™ and AGRADO® products to improve hoof health and milk fat production. The assistance of the university and its extension agents allowed us to share our knowledge, products and research under local conditions for the benefit of a farmer. These findings were then presented at a scientific meeting for the benefit of researchers worldwide. We also share our analytical, experimental design, equipment and laboratory design expertise with our university collaborators. In many cases, we might assist with upgrading a university feeding facility or help them design new facilities. In Thailand, the facility at Kasetsart University was designed to replicate a commercial broiler setting. In Vietnam, we helped Nong Lam University officials plan a new aquaculture center to conduct research with Pangasius, a genus of catfish. The goal of these projects is to help the universities better conduct significant research initiatives using local Each summer, Dr. Chris Knight travels to China to select the new, feedstuffs and Novus products to increase production and animal health. annual class of Novus Graduate Scholars. Our findings strongly suggest that university-industry research Our current collaborative university projects do not just include research relationships benefit academic institutions and customers. In cooperation initiatives. Many times, we are simply assisting universities with establishing with Bombay Veterinary College in India, we are conducting a two- documentation or training standards. It is essential that the research year research project on chelated trace mineral nutrition in poultry community maintain controls and procedures to ensure quality data is production. We are transferring the trace mineral knowledge we have obtained and shared with our industry for the benefit of producers. established in the United States to broiler and layer customers in India.GRI: 2.2 and 2.7 Novus International, Inc. Health through Nutrition 2009 | 41
  • 42. The Novus Product Portfolio The global demand for food is increasing at a in the world and to do so through sustainable, responsible practices. Through rapid rate each year, and this future demand will a broad product portfolio, Novus takes a comprehensive approach to optimize need to be fulfilled using nearly the same natural the health of animals. This approach maximizes the farmers’ outputs and resources currently available. For these reasons, produces animals that are more resistant to sickness and disease, which allows we embrace science, technology and best them to consistently yield higher quality food. By improving their bio-efficiency, practices as the foundation of our research animals also produce less waste that contains lower quantities of by-products and development process. that could pollute the environment. We are motivated to develop products that Additionally, our products create efficiencies that support the creation of more and will enable the agriculture industry to provide higher quality protein, enabling farmers to increase their profits while lowering the Health through Nutrition to people everywhere cost of food and ultimately helping people achieve a higher quality of life. Amino Acids Methionine ALIMET® and its sister products MHA®, MERA™ Met and MFP™ contain a precursor to methionine, an essential amino acid. Amino acids are the Methionine is an essential amino acid. Very simply building blocks of protein, which make feed more nutritious and efficient. stated, animals will be limited in their growth without proper amounts of methionine. It is the first limiting amino acid in poultry and the second limiting amino ® acid in ruminants and pigs. ® To meet the growing demand for animal protein, it is ALIMET liquid feed supplement contains MHA feed supplement, a dry critical that we improve the conversion of the proteins 88% HMTBa, a precursor to methionine, granular powder, is a leading in animal feed to meat. Amino acids play an important and delivers an organic acid effect, source of methionine in role in improving this efficiency in the animal. resulting in better performance and premixes and farm feed mills. reduced nitrogen excretions. ALIMET contains 88% HMTBa, a precursor to methionine that is 100% available to the animal. By this, we mean MFP that 100% of the HMTBa in ALIMET will be converted to TM methionine and available to the animal. This results in greater productivity for the producer. MERA Met is a source of MFP is a source of methionine for specific use methionine for specific use in in aquaculture diets. beef and dairy cattle diets.GRI: 2.2, 2.7 and 4.17 | 42
  • 43. Enzymes All animals naturally produce enzymes to break down major nutrients, including protein. Through a technology partnership with BioResource International, Inc. (BRI), Novus has introduced CIBENZA™, a family of enzymes that provide producers with an excellent source of versatile and pellet stable solutions. CIBENZA enzymes help producers achieve improved animal performance and greater flexibility in dietary formulations. Producers must maximize their return on animal feed investments. CIBENZA DP100 is a heat-stable protease that improves dietary Less-than-optimal digestibility results in wasted feed and wasted protein digestibility for optimal animal performance. CIBENZA money. CIBENZA enzymes are ideal for corn/soy diets and DP100 usage can reduce ration costs by lowering protein levels in alternative ingredients, such as cassava, sorghum, palm and copra. the feed up to 10% without sacrificing animal performance, while We produce CIBENZA for poultry, pork, aquaculture and rendering. lowering nitrogen excretion into the environment. CIBENZA DE200 is a heat-stable mannanase that improves energy availability. CIBENZA DE200 allows producers to save on feed costs and increase formulation flexibility through the use of a Demonstrable Environmental Value variety of raw materials in feed rations. Animals consuming nutritionally balanced diets excrete less CIBENZA PHOS is a heat-stable phytase. CIBENZA PHOS enables waste, which provides a demonstrable environmental value. animals to obtain more phosphorus from feed, resulting in less Furthermore, when animals are fed according to best practice phosphorous being emitted into the environment. nutrition, productivity gains reduce the strain on the agriculture industry’s limited resources. It is possible to feed more livestock CIBENZA CSM is a blend of enzymes designed by Novus to work without increasing the amount of water and acreage required. with local feedstuffs. CIBENZA CSM is blended locally at Novus manufacturing facilities in Mexico and China. For example, we estimate that if all of the broilers grown in the United States were fed CIBENZA DP100, a special enzyme CIBENZA IND900 is a heat-stable protease enzyme for feather that more efficiently converts soybeans into usable protein, meal processing. CIBENZA IND900 allows customers to create a the reduction in soybean demand by the poultry industry would high-quality feed product using less energy. be equivalent to saving 1.75 million acres of farmland for other purposes and an 11% gain in productivity industry wide. In addition to that, animals eating less protein consume less water, an essential element required for protein digestion, which will help conserve much needed fresh water resources.GRI: 2.2, 2.7 and 4.17 Novus International, Inc. Health through Nutrition 2009 | 43
  • 44. Chelated Trace Minerals Novus has a unique line of chelated trace mineral products that When considering mineral sources, bioavailability is extremely offer a wide range of benefits. Trace minerals such as zinc, copper, important. Chelated trace minerals, in comparison to inorganic trace manganese and selenium are essential to all animals for a wide minerals, have much higher absorption rates within animals. variety of physiological processes. Immune development and response, and tissue and bone development are just a few examples. More minerals in means more minerals out. Feeding high levels of Deficiencies in trace minerals can lead to reduced performance inorganic minerals means that a larger portion of minerals consumed and even death. enter the environment by way of excretion, creating pollution. Novus’s chelated mineral technology has a high absorption rate and offers The need for trace minerals varies with diet, water source, disease solutions to farmers to improve animal health and productivity while challenge and reproduction. Animals have mineral reserves to draw reducing the impact of their operations on the environment. upon but these must be replenished on an ongoing basis. The MINTREX® product family offers chelated trace mineral technology for aquaculture, poultry, pork, beef, dairy and pets. MINTREX combines HMTBa with an essential trace mineral in a two-to-one chelated molecule. These products are available in customized blends. ZORIEN® SeY is a special strain of yeast, Saccharomyces cerevisiae, that is enriched with an organic form of selenium, which is needed in trace amounts for cellular function. ZORIEN SeY delivers significant health benefits to aquaculture, poultry, pork, beef and dairy. TM GLYTREX™ provides the benefits of chelated trace mineral nutrition, including gut stability and increased absorption. GLYTREX is available in customized blends. Over the past year, Novus acquired the Animal Nutrition Division of Albion Laboratories, Inc. Products from the acquisition, including the MAAC® chelated trace mineral product line, will align with our GLYTREX family. The acquisition furthers our commitment to continually offer a broader range of products to address the needs of our customers.GRI: 2.2, 2.7 and 4.17 Novus International, Inc. Health through Nutrition 2009 | 44
  • 45. Chelated Trace Mineral Technology Return on Investment Eggshell Quality Consider the example of farmers seeking to ensure their poultry’s need for zinc (Zn). Symptoms of zinc deficiency can include a Whether delivering table eggs to the grocery store or suppressed immune system, poor feathering and dermatitis. production eggs to the hatchery, the success of farmers’ businesses depends on consistently producing high- Inorganic zinc sulphate is an inexpensive, though not particularly quality eggs with strong shells. bioavailable, form of mineral supplementation. Farmers might need to feed their poultry 100 parts per million of inorganic zinc sulphate. The most effective way to achieve the highest production By substituting MINTREX Zn, a highly available chelated form of possible is to boost the performance of layers through the mineral, farmers can feed their poultry 32 parts per million, optimal nutrition that incorporates chelated trace mineral improving the animals’ health and performance while reducing technology. waste. The quality of eggshells directly affects the salability of eggs. If eggs develop cracks or break during transit, Inorganic Trace Minerals they cannot be sold. Additionally, eggs produced by layers with unbalanced mineral levels contain excessive calcium deposits, which further limit salability. Chelated trace mineral technology is effective in improving eggshell quality because it is more bioavailable to animals. More minerals are absorbed and ultimately utilized by the layers’ biological systems to strengthen eggshells. = Complete Feed Chelated trace mineral technology enables farmers to reduce their levels Through the use of chelated rather than inorganic of mineral inclusion—saving money and = Mineral reducing waste to the environment. minerals, farmers can precisely supplement animal diets with lower levels and better results. When using chelated trace minerals, farmers are less likely to “over- The economic return on investment of our chelated trace minerals supplement” their flocks, which leads to excessive can be as high as 5:1 for farmers. But these returns cannot be calcium deposits. counted only in dollars. They also translate to lower quantities of zinc excretions into the environment. Deposits of zinc, copper and other trace mineral metals are all reduced by MINTREX. This results in reduced volumes of heavy metals being deposited into our soil.GRI: 2.2, 2.7 and 4.17 Novus International, Inc. Health through Nutrition 2009 | 45
  • 46. Antioxidants Novus antioxidant products are available in two categories: feed preservatives and dietary supplements. Feed Preservative Antioxidants Oxidation of animal feed and feedstuffs can result in rancidity of fats and destruction of vitamins A, D, E and amino acids. If unchecked, a single degraded ration ingredient can lead to lower animal feed consumption and nutrient deficiencies. Novus products, including SANTOQUIN®, FEEDGUARD™ and NATUGUARD™ feed preservatives, protect the nutritional value of feed. NATU SANTOQUIN feed preservative provides FEEDGUARD feed preservative is a NATUGUARD feed preservative is unsurpassed protection from oxidative dry, free-flowing product for use in a natural-based antioxidant used rancidity. Oxidation decreases the value dry mixes. It is a proprietary blend of to preserve fats, oils, vitamins and of unprotected ingredients as soon antioxidants that is used to preserve pigments contained in animal feed. as they are produced and continues fats, oils, vitamins and pigments The ratios of active antioxidants in to degrade nutrients over time. contained in dry animal feed. NATUGUARD have been developed SANTOQUIN protects feed ingredients to provide optimal performance at and prolongs nutritional shelf life in the best cost possible. complete feed.GRI: 2.2, 2.7 and 4.17 | 46
  • 47. Dietary Antioxidants Dietary antioxidants for animals promote healthier immune systems and tissues by capturing free radicals and optimizing oxidative balance. By reducing the amount of energy required to fight disease and improving health, dietary antioxidants enable animals to grow more productively. The AGRADO product family contains dietary antioxidants that have been reviewed and approved by the FDA for use in total mixed rations of lactating dairy cows. In addition to being beneficial to the dairy market, AGRADO products offer benefits for cattle and pigs. AGRADO products have superior efficacy against both animal and plant-sourced fats in the total mixed ration, protect key ingredients from oxidation and reduce harmful free radical formation that can negatively affect health and productivity.GRI: 2.2, 2.7 and 4.17 Novus International, Inc. Health through Nutrition 2009 | 47
  • 48. Feed Quality Novus’s solutions for feed quality protect the value of high-quality ingredients to ensure optimal animal health, performance and improved feed conversion rates. The Novus family of products for feed quality includes SOLIS®, ZORIEN® MOS, PRO-STABIL™ and CAPTURA™. SOLIS is an anti-caking agent approved for use in animal feed. When properly mixed, SOLIS has the ability to target the challenges of fungal metabolites. ZORIEN MOS is a prebiotic additive containing mannanoligosaccharides MOS and beta-glucans, derived from a selected strain of Saccharomyces cerevisiae yeast cell wall for use in production livestock. PRO-STABIL is available as a granulated or liquid preservative premix. It contains propionic acid as its main agent and is used in the preservation and stabilization of compound feed and feed materials. CAPTURA is a free-flowing premixture that reduces the effects of moisture and toxins in animal feed.GRI: 2.2, 2.7 and 4.17 Novus International, Inc. Health through Nutrition 2009 | 48
  • 49. Feed Mill Management Our feed mill management and feed quality solutions support farmers Feed Mill Efficiency Program and feed mills in creating the highest-quality rations possible. We developed the product SURF·ACE Feed mill management products like SURF·ACE™, a liquid preservation to support our feed mill customers in premixture, increase pellet output while improving feed quality. increasing the nutritional content of the feed they create, improving their IDEA™ (Immobilized Digestible Enzyme Assay) quickly and accurately enables business operations and reducing feed mills and farmers to determine the protein amino acid digestibility of their environmental impact. feed ingredients like soybean meal, poultry and feather meal, fish meal, Distillers’ Dried Grains with Solubles (DDGS), and meat and bone meal. SURF·ACE helps decrease the surface tension on feed particles and reduce dissipation of moisture pellets. The product binds with dietary fat present during feed production, resulting in better lubrication of machinery and increased feed output SURF·ACE is a liquid preservation premixture that offers multiple with reduced energy consumption. economic and environmental benefits during the production of pelleted feed. SURF·ACE exerts an emulsifier action that increases pellet output, In a study of SURF·ACE spanning 6 improves conditioning, enhances the durability of the pelleted feed and countries, feed mills experienced improves the overall quality of the final feed. a 14% average savings in energy consumption, equating to $2.90 (USD) per ton. Additionally, feed produced D ™ using SURF·ACE has an optimized ratio of dry content to moisture, as intended in dietary formulations. IDEA provides a farm-level tool for our customers to test the quality of their feed ingredients and to determine the protein amino acid digestibility. Additionally, IDEA is used to test the quality and safety of pet food ingredients.GRI: 2.2, 2.7 and 4.17 Novus International, Inc. Health through Nutrition 2009 | 49
  • 50. Gut Environment Modifiers Gut Environment Modifiers (GEMs) support beneficial bacteria while degrading their non-beneficial counterparts. GEMs enhance digestion and absorption without reliance on antibiotics. ® ACTIVATE® is a blend of GEMs combined with ALIMET. Pork and poultry producers use ACTIVATE products as an important component of Salmonella reduction programs. ACTIVATE also aids in increasing sow feed Salmonella Prevention intake. Gut environment modifiers (GEMs) help control and prevent harmful agents, such ACIDOMATRIX™ is a proprietary line of protected GEMs as bacteria, from proliferating in the small for pork. It provides benefits that increase performance intestines of animals. Bacteria, such as during diet changes or in antibiotic-free diets. Salmonella, can have a negative effect on animal health, ultimately harming ACIDOMIX® is a combination of liquid organic and production and possibly human health. inorganic acids. ACIDOMIX is designed to improve food and water quality while helping to prevent the The European Food Safety Authority (EFSA) has assessed the public health colonization of harmful bacteria. risks from Salmonella in pigs. The EFSA assessment suggests that pigs and pig MERA™ Cid is a proprietary blend of feed-grade organic meat may be responsible for 10% to 20% acids that supports beneficial bacteria in fish and shrimp of all human cases of salmonellosis in by acidifying the environment. MERA Cid supports the EU. Effectively controlling Salmonella healthy growth in an antibiotic-free environment. at the farm level can have a direct impact on the food chain and reduce the PROVENIA™ is an energy-rich, flavored complementary number of related human illnesses. feed for piglets. When Salmonella proliferate in the intestine, it becomes difficult for animals to absorb nutrients. This results in poor health and Biologicals performance. Through the various GEM- Line products and programs we offer, such ADVENT® is a vaccine against coccidiosis, one of the as ACTIVATE WD, farmers can manage greatest threats to poultry. The product is sprayed onto a wide variety of challenges, such as broiler chicks shortly after they are hatched, providing the transmission of Salmonella in pigs. protection through a single, antibiotic-free application. ACTIVATE WD is for use in the drinking water of pigs, and for the control and destruction of environmental pathogens.GRI: 2.2, 2.7 and 4.17 | 50
  • 51. Early Nutrition Early Nutrition is fundamental to the overall health of chicks and piglets. OASIS hatchling supplement is a hydrated Eggs—The New Superfood nutritional formulation specially designed for the first days of life for hatchling poultry. OASIS is For years, eggs have been considered a powerhouse used during transport from the hatchery to farms of nutrition. This reputation is due to eggs’ exceptional or as a top dress application on starter feed. nutritional profile as a nutrient-dense food containing high-quality protein and a substantial amount of essential vitamins and minerals. Eggs are a good source of folate, phosphorous, vitamins A, D, B12 Enrichment and K, riboflavin, selenium and choline. The nutrient density of eggs makes them a valuable contributor In recent years, people have become more concerned about how to the overall nutritional balance of the diet. Eggs food choices impact their health and well-being. In late 2007, are an economical source of high-quality protein, Novus began marketing DHA GOLD® to animal producers. DHA an important component in the diets of the elderly, is an essential component for many cells in the human body and low-income families, growing children and people studies have shown that a DHA-rich diet can lead to increased attempting to lose weight. brain, eye and heart health. Including DHA GOLD in animal feed is a safe and effective way to nutritionally enhance the DHA content In addition to being a wholesome and nutritious food, of meat and eggs. When included in livestock diets, DHA has health eggs can also be classified as a functional food. benefits to animals and ultimately, enriches the food products. Research has shown that eggs supply significant amounts of carotenoids that may play a role in disease Enrichment of food products is very important in emerging prevention. Researchers have demonstrated that markets where diets are often lacking in balanced nutrition. eggs are a source of highly bioavailable forms of the Providing supplementation through eggs provides nutrition carotenoids lutein and zeaxanthin. These antioxidant- and can be less expensive than through traditional tablets. like compounds have been shown to help in the Other nutrients that can be supplemented through egg prevention of macular degeneration, a leading cause or protein enrichment include Zinc and Selenium. of blindness in the elderly, and have been associated with lower risk of cataract extraction. Eggs are also a significant source of choline. Choline is essential for DHA GOLD is an all-natural, vegetarian normal functioning of all cells, including those involved source of the omega-3 fatty acid ® with metabolism, brain and nerve function, memory and docosahexaenoic acid (DHA). the transportation of nutrients throughout the body. For additional information on the health benefits of eggs, visit or www.incredibleegg.orgGRI: 2.2, 2.7 and 4.17 | 51
  • 52. Novus Nutrition Brands Novus Nutrition Brands, LLC, (NNB) is a subsidiary of Below are two examples of products from our Arenus product family: Novus International, Inc. NNB is comprised of Novus Pet Nutrition (NPN), Arenus and Stratum Nutrition. ASSURE® is an innovative digestive supplement for horses that, when fed daily, helps to support overall hindgut health through our exclusive GST® technology. ASSURE may control the risk of digestive colic through its blend of direct-fed NPN is a division of NNB dedicated to providing microbials. nutritional ingredient solutions to the pet food manufacturing industry. Products offered to STEADFAST® is a patent-pending health manufacturers include the Novus line of chelated supplement specifically designed to support trace minerals, antioxidants, amino acids, prebiotics, joint integrity, bones, tendons, ligaments and enzymes, yeasts and protein quality testing. other connective tissues in dogs and horses. To learn more about Arenus, visit Arenus is a premier provider of innovative health and nutrition products, offered direct to consumers, for dogs, horses, ornamental fish and birds. The division is an audited member of the National Animal Supplement Council (NASC), an industry group dedicated to protecting the health of companion animals and horses. Based on science, Arenus products are developed with the input of nutritionists, veterinarians and other animal professionals.GRI: 2.2, 2.3, 2.7, 3.8 and 4.17 | 52
  • 53. Stratum Nutrition offers a portfolio of branded, value-added ingredients for human health applications. Stratum focuses on growing a portfolio of specialty and functional ingredients that target business-to-business manufacturers of foods, beverages and dietary supplements. Vitamin Angels is dedicated to reducing child mortality worldwide by advancing the availability, access and use of essential nutrients to Stratum Nutrition has entered into strategic partnerships with two newborns, infants and children under five. ingredient manufacturers, KitoZyme and ESM Technologies. KitoZyme produces a new vegetarian ingredient, chitin-glucan, which supports Through our partnership with Vitamin Angels, Novus is able to help arterial and overall heart health. Through a technology partnership with improve the quality of life for children. We have committed to making ESM Technologies, Stratum is working to accelerate the global use of the significant donations in the way of monetary funds, as well as the raw ingredient Natural Eggshell Membrane (NEM) in supplements, functional material zinc. Through our partnership, Vitamin Angels is establishing foods and beverages. NEM represents a unique and safe technology that a new zinc program that will provide relief for diarrhea, one of the fits a key target health platform for us—joint and bone health. most widespread and deadly health problems affecting children under the age of five around the world. Below are examples of products from the Stratum Nutrition product family: The Vitamin Angels pilot program will be delivered to Sauri, Dertu and Eldoret, Kenya through the infrastructure of Millennium Villages. ESC® is a naturally pure calcium source. It consists of The goal of Millennium Villages is to empower communities to lead in a natural form of calcium carbonate, which the body their own development. To ensure success, participants must give a needs to maintain healthy bone mineral density. significant amount of their time, skills and resources. NEM® is a natural eggshell membrane ingredient clinically This large-scale humanitarian project, coordinated through Vitamin ® proven to support joint comfort and flexibility. NEM is Angels’ “Thrive to Five” initiative, was launched during the group’s composed of naturally occurring glycosaminoglycans, 2009 Celebration of Angels event. The launch of the program including chondroitin and hyaluronic acid, as well as collagen coincided with Novus’s launch of our new Stratum Nutrition division, and other beneficial proteins essential for joint health. which focuses on human Health through Nutrition. This partnership supports Novus’s decision to expand the scope of its solutions to ARTINIA™ is a high-purity natural ingredient that features include ingredients and technologies that directly support human the benefits of soluble and insoluble fibers to support the nutrition—healthy ingredients that are put into human supplements, body’s natural defenses against oxidized-LDL cholesterol. beverages and foods. To learn more about Stratum Nutrition, For more information about Vitamin Angels and Millennium Villages, visit visit www.millenniumvillages.orgGRI: 2.2, 2.3, 2.7, 3.8 and 4.17 Novus International, Inc. Health through Nutrition 2009 | 53
  • 54. Programs Animal Well-Being The challenge of global sustainability is complex From a business perspective, it is in the best interest of farmers to do everything and involves multiple, inter-related issues. We they can to ensure that their animals have the best nutrition, environmental look at our customers’ business challenges from conditions and care. Animals are more productive when they are healthy. an integrated perspective, recognizing that it is an oversimplification to expect a single product Health through Nutrition is central to animal well-being. Healthy animals are to solve a multi-faceted problem. Our customers’ happy animals and Novus has been working to support the well-being of animals businesses are impacted by social, economic and for nearly two decades. Many programs specifically focused on animal well- environmental (SEE) factors. being have been designed based on our broad product portfolio. Below are a few examples: We look at health and nutrition issues from a holistic perspective, recognizing that only an integrated Joint Health for Horses approach will make a clear, sustainable economic Strenuous activities like training and competition, along with age, can difference to our customers. We provide complete erode horses’ joints over time, causing aches, pains and reduced mobility. solutions that deliver long-term Health through STEADFAST EQUINE by Arenus is a joint health supplement specifically Nutrition. designed to support performance and longevity. While many equine joint health products may be useful in addressing a single joint-specific Our goal at Novus is to help our customers treat issue, STEADFAST EQUINE takes a multi-faceted program approach systemic issues, not symptoms. Many times animals to supporting the horses’ entire joint systems. Not only does it provide may experience specific problems, but there can be essential components to joints, but also to bones, tendons and ligaments. larger underlying issues that when addressed, will Hoof Health for Cattle restore and sustain health for the long term. Hoof health is key to keeping cows happy and healthy. Environment and nutrition both play a critical role in hoof health. Nutritional deficiencies can Novus is uniquely positioned to help our customers negatively impact hoof health and cow mobility. Through nutritional programs fortify and protect animal health. In many cases our including chelated trace minerals, we help to improve the mineral status in the products proactively prevent health problems before animals and strengthen hoof health, keeping cows healthy and mobile. they begin. Footpad Health for Poultry Based on an understanding of our customers’ Footpad lesions are a common issue with poultry and can cause discomfort needs and the factors that drive our market today, for birds. Novus has developed a program to help eliminate some of the most we approach the agriculture industry through four common causes of footpad dermatitis. Highly bioavailable MINTREX chelated major program categories: trace minerals strengthen the soles of the feet, making them more resistant to footpad issues. Proper amino acid nutrition with ALIMET enables maximum Animal Well-Being tissue integrity and CIBENZA enzymes assist in aggressively reducing protein Performance and nitrogen excretions to reduce wet or caked litter conditions. Food Safety EnvironmentalGRI: 4.17 Novus International, Inc. Health through Nutrition 2009 | 54
  • 55. Achieving Oxidative Balance Humans and animals alike must eat different types of food or feed to be healthy. When diets are out of balance Performance or animal rations are not quite right, we For the livestock industry, the term "performance" can become lethargic, get sick or even relates to an animal achieving an optimal state of die. We cannot operate at full potential. health and growing to genetic potential. A strategic approach to nutrition is critical for farmers working Doctors tell us to consume foods rich in to keep their livestock healthy and productive. Novus antioxidants, like blueberries, spinach works, through nutritional strategies, to help farmers and tea to enhance our health and well- achieve the highest performance possible. being. In much the same manner, we can add dietary antioxidants to animal Examples of Novus’s nutritional strategies to feed to accomplish similar goals. enhance performance include: In the case of dairy cows, a complete Optimizing Feed Utilization feed must contain high-quality Minimizing Structural Health Challenges ingredients to maximize animal Maximizing Reproductive Health performance. Best practice management Reducing Feed-Borne Pathogens partly accomplishes this goal. But Supporting Optimal Digestive Health even after feed is produced and in Preventing and Eliminating Feed Toxins fact, even after food is consumed and in the digestive tract, harmful products can form and upset the oxidative balance in animals. Lowering Feed Costs and Improving Performance A strategic approach to nutrition is critical for farmers working to keep their livestock healthy and Whether an Olympic athlete or high- productive. Feed ingredients are an enormous investment for farmers, representing up to 70% of total producing dairy cow, nutritional operating costs. Nutritional strategies can help protect and maximize this investment. Most importantly, programs containing dietary antioxidants animals who consume a nutritionally balanced diet are healthier and better equipped to achieve their are particularly important for genetic potential. achieving high performance and reaching full potential. For example, all animals naturally produce enzymes that break down major nutrients, including protein. However, animals are not capable of breaking down some components that naturally occur in animal feed such as fiber or phytic acid, which means that nutrients are not absorbed and feed is wasted. When animal diets are supplemented with enzymes, the digestion of nutrients is optimized, leading to improved animal health and lower operating costs. Diets optimally formulated with products from the CIBENZA product family can improve the digestibility of animal diets. In a corn/soy diet for poultry, for example, approximately 90% of the feed is digestible, while 10% is converted to waste matter. By maximizing the digestible portion of the feed, farmers canGRI: 4.17 recognize a higher return on their investment and animals achieve their genetic potential. | 55
  • 56. Food Safety and Mycotoxins Mycotoxins vary throughout the world, Food Safety with different regions experiencing Food Safety is extremely complex because there are many different mycotoxin-related challenges. points along the farm-to-table continuum. At Novus, we have The highest risk to human health is in developed On-Farm Prevention Management Programs, which emerging markets, where pasteurization enable our customers to manage all points of potential pathogen is not yet widely adopted. In these areas, introduction. Our programs combine management best practices the aflatoxin M1 is of widespread with preventative, nutritional strategies. concern. Novus offers many solutions to support Food Safety including: When cattle consume aflatoxin, the milk they produce quickly becomes Pathogen Prevention contaminated with M1, which can Mycotoxin Management ultimately have devastating health Water Quality Support effects—including death of animals and Best Practice Consulting of people who consume their products. African nations, including Kenya, As part of the value chain of food production, we take our Senegal and Somalia, have experienced role and responsibility very seriously. We implement quality aflatoxin contaminations, which have assurance programs and maintain traceability for all the claimed thousands of human lives. products we produce. In response to the global problem of mycotoxins, more than 100 countries have enacted legislation to control the amount of mycotoxins in animal feed, as well as in food for human consumption. Novus products SOLIS and CAPTURA are anti-caking agents. These products bond with mycotoxins during the digestive processes of animals and safely carry them out through their waste.GRI: 4.17 Novus International, Inc. Health through Nutrition 2009 | 56
  • 57. Food and waterborne diseases are leading causes of illness and death in less developed countries, killing an estimated 2.2 million people annually, most of whom are children. –World Health Organization, 2010 Novus International, Inc. Health through Nutrition 2009 | 57
  • 58. Environmental The agriculture industry plays a unique role in the global effort to protect and preserve the environment. It is our responsibility to feed a large majority of the world. In that respect, agriculture’s relatively small size has a disproportionately large impact on humanity and the environment. We face the challenge of working with our natural resources to meet the world’s increasing demand for food in a way that does not exhaust the environment’s capacity to produce what we need. We also have the responsibility of utilizing natural resources efficiently, maximizing productivity, while taking care to minimize waste. The environmental challenge of sustainability is largely dependent upon how we manage social and economic issues—as individuals, as companies and as members of our local communities. Novus International, Inc. Health through Nutrition 2009 | 58
  • 59. The Importance of Chicken and Fish in Feeding the World When comparing all sources of protein, poultry and fish are the mostProducts efficient, economical sources on earth. This is because there is a lowerNovus products are geared towards maximizing production cost per kilogram (kg) and therefore a lower consumer price point.output and minimizing waste. Leveraging a broadproduct portfolio, we take a comprehensive Feed costs impact both the demand for and production of protein. Whenapproach to optimize the health of animals. This comparing the various segments of the protein industry, the poultry segment isapproach maximizes the farmers’ output, fortifies less impacted by rising raw material costs due to efficiency of feed conversion.livestock against disease and ultimately leads The table below provides a comparison of feed conversion efficiency betweento the production of higher-quality food. Novus’s beef, pork, poultry, dairy and fish.Health through Nutrition programs supporthealthy, happy animals who generate less waste Average Feed-to-Protein Conversion Ratiointo the environment and are more productive. Feed (kg) Protein (kg) Beef 5.0 1 Pork 3.0 1 Poultry 2.0 1 Fish 1.7 1 Source: Novus Analysis, 2010Fish Meal Replacement The level of industrialization of an operation directly and drastically impactsNearly one-third of the world’s wild-caught fish animal performance. The conversion numbers above apply to conventionalare used to create fish meal for animal feed, farming environments. In emerging markets, where small farm operations arepredominantly for the aquaculture industry. As still common and widespread, conditions are variable, infrastructure can bethe world’s demand for protein continues to grow, limited, raw materials are often low quality and animal nutrition programs areso will the demand for fish meal. Novus offers not optimized due to lack of resources.products to reduce the potential environmentalstrain of overfishing on the ecosystems of Bringing best management practices, such as amino acid and enzyme balanceour oceans for the creation of fish meal. in animal diets, to the farm level in emerging markets empowers farmers to increase their output, providing access to more food for their families and theirOur MERA Met and MERA Met Ca products provide communities.amino acids and other nutritional supplementsthat enable producers to mix or replace fish meal In these regions, chicken and fish hold great potential as sustainable sourceswith soybean meal. This significantly lowers the of protein because the price of production is low by comparison, the productionfarmers’ operating costs, because soybean-based cycle is short and the protein output can be high when best practices are adopted.feed is much more economical than fish meal-based Farmers can have fast access to food to eat and take to market. In contrast, anfeed and does not compromise animal health. investment in larger livestock, such as dairy cows, can represent the largest asset for families; and if the cows become sick or die, the effect can be devastating. Novus International, Inc. Health through Nutrition 2009 | 59
  • 60. Operations and Manufacturing It is obvious that manufacturing processes have an environmental impact. Striving to diminish that impact, we make our manufacturing operations more efficient in the same way that we improve animal nutrition—more efficient use of input, more productive output and less waste. A majority of what comes into the manufacturing plant as raw materials is shipped out to the customer as product, generating as little waste as possible. Novus’s largest plant, our Chocolate Bayou facility in Alvin, Texas, was built in the early 1980s to produce ALIMET. Chocolate Bayou was designed at a time when the world had recently experienced the economic and social shocks of the 1979 Oil Crisis. Consequently, the plant was designed with a keen eye toward Novus’s largest plant operation, where we produce ALIMET®, is located in Chocolate Bayou, Texas. the efficient use of energy and the minimization of waste. Due to the nature of the products we produce, Novus Commitment to Responsible Care Management manufacturing plants are generally mixing plants. We combine Novus is certified as a Responsible Care Management System ingredients, like a recipe, more than processing or refining them. company. Responsible Care® was launched in 1988 as the On balance, our plants produce very little waste and expel American Chemistry Council’s ( comprehensive minimal emissions into the atmosphere. Environmental, Health, Safety and Security (EHS&S) performance improvement Certifications initiative. It incorporates progressive principles based on benchmarked best practices of leading private sector companies, initiatives developed through Novus is committed to best practices as an organization. Below are the Global Environmental Management Initiative, International Standards a few examples of how we express this through our operations and Organization and other bodies, and requirements of national regulatory manufacturing: authorities. ISO 14001 Kosher Through our business, we strive to provide commercial solutions that promote ISO 9000 FAMI-QS reduced waste and the reuse and/or recycle of our natural resources. We are GMP Safe Feed / Safe Food committed as an organization to offering sustainable programs to our industry Responsible Care Management and to achieving success through integrity. This commitment extends beyond social obligations or the imposed regulations of any one government or governing body, which may not yet reflect the higher standards by which we are driven.KPI: EN3 Novus International, Inc. Health through Nutrition 2009 | 60
  • 61. Supply Chain Sustainability On any given day, Novus has hundreds of thousands of pounds of material in motion over highways and railways. It is imperative that we understand the environmental impact of our supply chain so that we can improve our processes and become a better steward of the environment. Whenever possible, we remove trucks from the highway through the utilization of lesser polluting and more fuel efficient railcars. When there is no practical choice but to use trucks, we contract our freight movement with logistics service providers and carriers that are certified, active participants in the Environmental Protection Agency’s (EPA) SmartWay Transportation Partnership. The EPA’s SmartWay Transportation Partnership is a voluntary program that recognizes partners for setting and achieving greenhouse gas reduction goals in freight transport. The tenets of the SmartWay certification consist of an agreement between the transportation company and the EPA. The participants agree to benchmark their performance as the basis of a three-year action plan to increase the efficiencies of their fleets, and/or commit to increasing the volume of freight shipped with SmartWay-certified carriers by 10% each year. Nearly 90% of Novus’s finished goods distributed in the U.S. are carried by vendors that are active partners in the EPA’s voluntary program. Through collaboration with Certified SmartWay Transportation Partners and our commitment to utilize rail movements whenever feasible, Novus continues to embrace the goal of sustainability at every level of our organization.KPI: EC2 and EN26 Novus International, Inc. Health through Nutrition 2009 | 61 57
  • 62. The AIMS inventory management system has improvedInventory Management supply chain efficiency and reduced environmentalTechnology is another way we stay in impact for Novus customers.close contact with our customers. Oneexample is our patented AutomatedInventory Management System (AIMS®).Simply put, AIMS includes a sensor and a tankthat supplies ALIMET to a feed mill or mixer. Novusmonitors the level of the tank and automaticallyreplenishes the bulk liquid supply as needed,creating business efficiencies for our customers.Novus pioneered vendor-managed inventoryfor feed industry bulk liquids in 1993. Sincethen, AIMS has improved supply chainefficiency and reduced environmentalimpact through the reduction of intermediatebulk container (IBC) and drum usage.In 2009, we upgraded the AIMS infrastructure.The new version of AIMS uses satellitecommunication with a submersible differentialpressure sensor for level measurement. Thenew platform provides precise and dependableinventory readings, a back-up power supplyand a local display of tank inventory.Novus customers can monitor their tankinventory levels and usage through the localdisplay as well as on the Internet via Novus monitors the ALIMET level in AIMSNovus Premium Services at tanks and automatically replenishes the supply for customers as needed. Novus International, Inc. Health through Nutrition 2009 | 62
  • 63. Tough and flexible, Novus Recyclable, Low Density bags can be printed on Polyethylene (LDPE) with water-based inks Continuous Improvement: Packaging that do not use solvents Many Novus products are delivered to our customers or heavy metals in bags—more than 2 million per year. Last year, we understood that we had a real opportunity to improve our impact on the environment by taking a creative look at our product packaging. We formed a cross- departmental task force to research our options and to make recommendations for improvement. There were key considerations as we began to plan. Novus bags must be durable because they are shipped all over the world. They must be strong because they commonly hold 25 kilograms, or 55 pounds, of product. Finally, our bags must feature multilingual, printed text that is educational for customers and meets the regulatory requirements of importing countries. We worked with the American Feed Industry Association (AFIA) to ensure our bag design supported the Safe Feed / Safe Food initiative. The result is a bag made of recyclable, low- density polyethylene (LDPE). It is tough, flexible and can be printed on with water-based inks that do not use solvents or heavy metals. In 2009, we began using this bag to fill all shipments of our MINTREX and ACTIVATE products. This is the beginning of a multi-year process in which we will roll out the new bag design through our family of over 100 products. Each year, Novus ships more than 2 million bags of product to customers.KPI: EC2 and EN26 Novus International, Inc. Health through Nutrition 2009 | 63
  • 64. To help feed the world affordable, wholesome foodand achieve a higher quality of life. Novus International, Inc. Health through Nutrition 2009 | 64
  • 65. Quality of LifeNovus International, Inc. Health through Nutrition 2009 | 65
  • 66. Quality of Life At Novus, we focus our sustainability efforts on Sustainable Culture, Global Vision improvements that matter, to make the most meaningful At Novus, sustainability begins at the individual level and is evident in the daily impact that we can. Our commitment begins with Novus’s activities of each employee. It is demonstrated in the way that employees put into Mission, Vision and Core Values, where sustainability practice our collective aspirations, Novus’s Mission, Vision and Core Values. Our is embedded, and manifests itself in a systemic, long- sustainable culture is based on minimized waste, collaboration and creating local term approach, based on our triple bottom line of social, solutions for our customers based on industry best practices. economic and environmental (SEE) responsibility. Sustainability in Practice Health through Nutrition is the purpose of our products We approach our work through the lens of sustainability and this is a requisite and programs. The collective efforts of our employees consideration at Novus. Every business project is cross-checked to ensure that are focused every day on achieving a higher quality our criteria for sustainability–social, economic and environmental (SEE) are of life, for animals and people, through nutrition. Our achieved. heritage and core strength is science and it will always be the bedrock from which we continuously innovate. The Importance of Agriculture The importance of achieving our Vision comes full circle when you consider the growing demand for food on our planet. During the reporting timeframe of this report, the United Nations announced that by 2050 we will have to double our food production to meet global demand, using nearly the same water and arable land available today. Meeting this need can only be achieved through the technological innovation of companies like Novus. We are motivated to contribute to an agriculture industry that is equipped to provide nutritious, affordable food to people everywhere in the world and to do so through sustainable, responsible practices. Novus International, Inc. Health through Nutrition 2009 | 66
  • 67. GRI Indicator Index Vision and Strategy 1.1 A message from the President Page 2 1.2 Key impacts, risks and opportunities Pages 5-9 Profile 2.1 Name of the organization Front Cover 2.2 Primary products Pages 37-53 2.3 Operational structure of the company (divisions, subsidiaries) Pages 12, 52-53 2.4 Location of headquarters Page 12 2.5 Countries of operation Pages 12, 24, 74 2.6 Nature of ownership Page 12 2.7 Markets served Pages 12-16, 37-53 2.8 Scale of organization Pages 7, 12 2.9 Significant changes Pages 20-21, 30 2.10 Awards received Page 36 Report Parameters 3.1 Reporting period Page 1 3.2 Previous report Page 1 3.3 Reporting cycle Page 1 3.4 Contact point Page 81 3.5 Process for defining report content Page 1 3.6 Boundary of the report Page 1 3.7 Any specific limitations of the report Page 1 3.8 Basis for reporting on subsidiaries Pages 52-53 3.9 Data measurement and calculation basis Page 1 3.10 Explanation of any restatements from previous reports Page 1 3.11 Significant changes from previous reports Page 1 3.12 GRI contents index This Page 3.13 Policy and current practice Pages 5-9, 19 Novus International, Inc. Health through Nutrition 2009 GRI INDICATOR INDEX | 68
  • 68. GRIGovernance4.1 Governance structure Page 194.2 Chairman of board different than CEO Page 754.3 Board structure Pages 19, 754.4 How shareholders and employees provide recommendations to the board Page 194.5 The Felt Fair Pay (FFP) system helps ensure all Novus employees This Page are fairly compensated. FFP helps us account for country variables such as the amount of paid vacation and the number of work-months in a calendar year. Through FFP, we can be assured that all Novus employees are getting paid at essentially the same rate—according to their role level—no matter where they are in the world.4.6 Processes to ensure conflict of interest avoidance Page 194.7 Qualifications and expertise of governance body Page 754.8 Internally developed statements and implementation status Pages 6-7, 194.9 Procedures for governance oversight and management Pages 8, 194.10 We have an organization in which every employee documents his Page 8 and This Page or her key accountabilities in a Key Accountabilities Document (KAD). This starts with the CEO and cascades down through every single employee. These key accountabilities have a direct effect on Novus’s short-term goals, three-year objectives, Critical Success Factors, and ultimately on our long-term strategy.4.11 Precautionary approach to principle Pages 6-7, 194.12 Externally developed initiatives Pages 30-364.13 Memberships and associations Pages 36, 804.14 List of stakeholder groups engaged by organization Pages 36, 804.15 Basis for identifying stakeholders to engage Page 324.16 Approach to stakeholder engagement Pages 9, 324.17 Key topics and concerns for stakeholders Pages 28-29, 31-34, 42-56 Novus International, Inc. Health through Nutrition 2009 GRI INDICATOR INDEX | 69
  • 69. Key Performance Indicators Economic July 2008 - Dec. 2008 Jan. 2009 - Dec. 2009 EC We believe that leading global companies understand that society This Page This Page and government provide the license for business to operate with the expectation of partnership. Novus seeks to support growth of the animal protein value chain by improving productivity, addressing local community farming needs for diversification and sharing in management of natural resources. Growth of Novus Nutrition Brands acknowledges the importance of human nutrition in economic growth and the important contribution of companion animals to the quality of life. EC2 Novus understands that climate change can result in risks and Pages 61, 63, This Page Pages 61, 63, This Page opportunities, affecting economic performance. EC6 Novus will conduct business with suppliers who are globally competitive This Page This Page and will provide the lowest long-term cost of ownership. Novus is dedicated to working closely with local suppliers to educate them about our strategic purchasing requirements. As appropriate, Novus will help local suppliers understand the need and potential actions for their business to be globally competitive. EC7 Novus’s policy is to hire locally in each area of the world we are located. This Page This Page Environment EN Novus is committed to operating in a way that recognizes that natural This Page This Page resources are finite. We incorporate renewable energy best practices in the operation of our headquarters building and animal feed blending plants throughout the world. We include our suppliers in industry logistics programs that achieve energy efficiency targets. EN3 Direct energy consumption by primary energy source Pages 20-21, 60 Pages 20-21, 60 Direct energy consumption by Direct energy consumption by primary energy source: primary energy source: • Natural Gas - 39,349.60 MCF • Natural Gas - 108,906.20 MCF • Electricity - 6,441,772.00 • Electricity - 14,099,224.00 KWH KWH • Purchased Steam - 215.00 • Purchased Steam - 473.00 MMLB MMLB EN16 Total direct and indirect greenhouse gas emissions by weight 19,378 metric tons 43,929 metric tons emissions of ozone-depleting substances by weight Novus International, Inc. Health through Nutrition 2009 KEY PERFORMANCE INDICATORS | 70
  • 70. KPI July 2008 - Dec. 2008 Jan. 2009 - Dec. 2009EN19 Emissions of ozone-depleting substances by weight 0 0EN22 Total weight of waste by type and disposal method 181,970 metric tons 428,640 metric tonsEN22 Liquid waste to local treatment 24,540 metric tons 48,755 metric tonsEN22 Liquid waste to deep well 157,264 metric tons 379,555 metric tonsEN22 Solid waste 120 metric tons 234 metric tonsEN22 Air emissions 47 metric tons 96 metric tonsEN23 Total number and volume of spills 0 0EN26 Initiatives to mitigate environmental impacts of products and services, and Pages 20-21, 61, 63 Pages 20-21, 61, 63 extent of impact mitigationLaborLA Integrity is one of five tenets that define the Vision of Novus. This Page This Page Human Resources policy articulates the framework for hiring and conditions of employment. Adhering to the highest standards of excellence with respect to interactions with all stakeholders, employees, suppliers, business partners, our owners and the public is embedded in Novus International’s business strategy.LA1 Total workforce by employment type, employment contract and region Page 78 Page 78LA2 Total number and rate of employee turnover Page 78 Page 78 by age group, gender and regionLA4 Percentage of employees covered by collective bargaining agreements 6% 12%LA7 Rates of injury, occupational diseases, lost days, and absenteeism, Page 79 Page 79 and number of work-related fatalities by regionLA8 Education, training, counseling, prevention and risk control Novus offers pre-tax programs in place to assist workforce members, their families, reimbursements to employees and their families for the cost or community members regarding serious diseases of flu vaccinations. In response to the H1N1 pandemic, Novus provided anti-bacterial products and prevention training. Additionally, the company provides fitness classes at no cost to global headquarters employees. Novus International, Inc. Health through Nutrition 2009 KEY PERFORMANCE INDICATORS | 71
  • 71. KPIHuman Rights July 2008 - Dec. 2008 Jan. 2009 - Dec. 2009HR Novus is committed to attracting and retaining a diverse workforce This Page This Page that delivers strong business results. We value individuals and support professional and personal development, especially in the areas of health and wellness. Novus, as a leading global company in health and nutrition, recognizes that flexibility and access to nutritious programs and products are critical to individual performance. Through Novus’s providing of free access to healthy lunches and the fitness facility at Novus headquarters, employees can incorporate wellness into their daily routine. Novus also supports self-improvement through university degree and certification programs.HR4 In 2009, Novus had zero incidents of discrimination. This Page This PageHR6 Child labor: Novus does not condone or allow child labor or any forced or This Page This Page compulsory labor in any of its operations around the world.HR7 Forced or compulsory labor: Novus does not condone or allow child labor or This Page This Page any forced or compulsory labor in any of its operations around the world.SocialSO Corruption, anti-competitive behavior and compliance are taken very This Page This Page seriously throughout Novus. In addition to an active Compliance Committee, employees are annually required to sign a Compliance form, acknowledging awareness of the importance of adherence to Novus regulations about corruption and anti-competitive behavior to continued employment.SO2 Percentage and total number of business units analyzed for risks related Novus executed a Novus executed a global, self-assessment global, self-assessment to corruption for fraud in CY2009. for fraud in CY2009. Novus International, Inc. Health through Nutrition 2009 KEY PERFORMANCE INDICATORS | 72
  • 72. KPI July 2008 - Dec. 2008 Jan. 2009 - Dec. 2009SO3 Percentage of employees trained in organization’s anti-corruption policies This Page This Page and procedures: All new employees receive training in anti-corruption policies and procedures. Refresher courses and training are executed annually as appropriate based on management’s recommendations. Novus employees are requested annually to positively affirm their compliance with Novus Integrity System, which contains Novus’s anti-corruption policies and procedures; compliance in completion of this by all Novus staff globally is 99%.SO5 Public policy positions and participation in public policy development and None were developed in None were developed in lobbying CY2009. CY2009.SO8 Monetary value of significant fines and total number of non-monetary 0 0 sanctions for non-compliance with environmental laws and regulationsProductsPR Novus develops processes and product technology to improve the This Page This Page nutrition and health of animal livestock, companion animals and humans. Collaborating with local researchers and industry experts serves to reduce the risk from misuse of processes or product technology.PR3 Type of product and service information required by 100% of our products are 100% of our products procedures, and percentages of significant products and registered through government are registered through agencies throughout the government agencies services subject to such information requirements world. throughout the world.PR6 Programs for adherence to laws, standards and voluntary Prior to external release, all Prior to external release, all codes related to marketing communications, including advertising, marketing and advertising, marketing and public relations materials public relations materials advertising, promotion and sponsorship are reviewed by Novus’s are reviewed by Novus’s Regulatory and Legal Regulatory and Legal departments. departments.PR9 Monetary value of significant fines for non-compliance with laws and There were no fines. There were no fines. regulations concerning the provision and use of products and services Novus International, Inc. Health through Nutrition 2009 KEY PERFORMANCE INDICATORS | 73
  • 73. Appendix 2.5: Countries of Operation CITY COUNTRY OPERATION Buenos Aires Argentina Major Sales Office Melbourne Australia Major Sales Office Sydney Australia Major Sales Office Brussels Belgium Regional Headquarters Porto Alegre Brazil Major Sales Office São Paulo Brazil Regional Headquarters; Manufacturing Plant; Major Sales Office Beijing China Research Facility Shanghai China Regional Headquarters; Manufacturing Plant Bogota Colombia Major Sales Office London England Major Sales Office Nantes France Major Sales Office Gudensberg Germany Manufacturing Plant Hyderabad India Major Sales Office Jakarta Indonesia Major Sales Office Milano Italy Major Sales Office Tokyo Japan Major Sales Office Nairobi Kenya Major Sales Office Kuala Lumpur Malaysia Major Sales Office Mexico City Mexico Regional Headquarters Manila Philippines Major Sales Office Warsaw Poland Major Sales Office Moscow Russia Major Sales Office Singapore Regional Headquarters; Manufacturing Plant Seoul South Korea Major Sales Office Madrid Spain Major Sales Office Taipei Taiwan Major Sales Office Bangkok Thailand Regional Headquarters Istanbul Turkey Major Sales Office Beaumont, TX United States Manufacturing Plant Chocolate Bayou, TX United States Manufacturing Plant Lincoln, NE United States Manufacturing Plant Little Rock, AR United States Manufacturing Plant St. Charles, MO United States Global Headquarters Caracas Venezuela Major Sales Office Ho Chi Minh City Vietnam Major Sales Office; Research Facility Novus International, Inc. Health through Nutrition 2009 APPENDIX | 74
  • 74. APPENDIX4.2, 4.3 and 4.7: Chairman and Board Members NAME BOARD POSITION TITLE COMPANY Susumu Katagiri Director - Chairman SVP and DOO Chemicals Divisions Mitsui & Co. (U.S.A.), Inc. Makoto Masuda Director - Vice Chairman Director, General Manager, Finance Nippon Soda & Co., Ltd. Koichiro Sato Secretary Novus Vice President, Planning Novus International, Inc. Toshimich Okubo Director Novus Executive Vice President Novus International, Inc. Masami Yokoyama Director Novus Executive Vice President Novus International, Inc. Kohei Taguchi Director General Manager, AgriScience Division Mitsui & Co., Ltd. Kenichi Kitajima Director General Manager, Strategic Businesses Development Division Mitsui & Co., Ltd. Tomofumi Osaki Director General Manager, Investment Management Department Mitsui & Co. (U.S.A.), Inc. Tsutomu Sakuma Director Director, Corporate Planning Department Nippon Soda & Co., Ltd. Hiroyuki Honda Director General Manager, Nutrition Department Mitsui & Co. (U.S.A.), Inc. Thad W. Simons, Jr. Director Chief Executive Officer and President Novus International, Inc. Alice V. Sterkel Assistant Secretary Vice President Legal Council and Chief Compliance Officer Novus International, Inc. John C. Wade Treasurer Senior Vice President Finance and Chief Financial Officer Novus International, Inc. Steve Lorbert Quality Assurance Officer Vice President Chemistry and Quality Assurance Novus International, Inc. Novus International, Inc. Health through Nutrition 2009 APPENDIX | 75
  • 75. APPENDIXTrademarks ™ ACIDOMATRIX is a trademark of Novus International, Inc. ® ACIDOMIX is a registered trademark of Novus Deutschland GmbH ® ACTIVATE is a trademark of Novus International, Inc., and is registered in the United States and other countries ® ADVENT is a trademark of Viridus Animal Health, LLC, and is registered in the United States and other countries ® AGRADO is a trademark of Novus International, Inc., and is registered in the United States and other countries ® AIMS is a service mark of Novus International, Inc., and is registered in the United States and other countries ® ALIMET is a trademark of Novus International, Inc., and is registered in the United States and other countries ® ARENUS is a trademark of Novus Nutrition Brands, LLC, and is registered in the United States and other countries ™ ARTINIA is a trademark of Novus Nutrition Brands, LLC ® ASSURE is a registered trademark of Novus Nutrition Brands, LLC ® CAPTURA is a registered trademark of Novus International, Inc. ™ CIBENZA is a trademark of Novus International, Inc. ® DHA GOLD is a registered trademark of Martek Biosciences Corporation ® ESC is a registered trademark of ESM Technologies, LLC ™ FEEDGUARD is a trademark of Novus International, Inc. ™ GLYTREX is a trademark of Novus International, Inc. ® GST is a trademark of Novus Nutrition Brands, LLC, and is registered in the United States and other countries Novus International, Inc. Health through Nutrition 2009 APPENDIX | 76
  • 76. APPENDIX™ IDEA is a trademark of Novus International, Inc.MAAC is a trademark of Novus International, Inc., and is registered in the United States and other countries®™ MERA is a trademark of Novus International, Inc.™ MFP is a trademark of Novus International, Inc.MHA is a trademark of Novus International, Inc., and is registered in the United States and other countries®MINTREX is a trademark of Novus International, Inc., and is registered in the United States and other countries®NATUGUARD is a trademark of Novus International, Inc., and is registered in the United States and other countries®NEM is a registered trademark of ESM Technologies, LLC®NOVUS is a trademark of Novus International, Inc., and is registered in the United States and other countries®OASIS is a trademark of Novus International, Inc., and is registered in the United States and other countries®™ PRO-STABIL is a trademark of Novus Deutschland GmbH™ PROVENIA is a trademark of Novus International, Inc.SANTOQUIN is a trademark of Novus International, Inc., and is registered in the United States and other countries®SOLIS is a trademark of Novus International, Inc., and is registered in the United States and other countries®™ SURF.ACE is a trademark of Novus International, Inc.STEADFAST is a trademark of Novus Nutrition Brands, LLC, and is registered in the United States and other countries®™ STRATUM NUTRITION is a trademark of Novus Nutrition Brands, LLCZORIEN is a trademark of Novus International, Inc., and is registered in the United States and other countries® Novus International, Inc. Health through Nutrition 2009 APPENDIX | 77
  • 77. APPENDIXLA1: Total workforce by employee type, employment contract and region July through December, 2008 January through December, 2009Employment Type Employment Contract Asia EAME LATAM NA Total Asia EAME LATAM NA TotalFull-Time Salaried 131 54 47 213 445 171 65 59 259 554 Hourly 0 6 5 10 21 0 11 8 22 41Full-Time Total 131 60 52 223 466 171 76 67 281 595Part-Time Salaried 0 0 0 2 2 0 5 0 2 7 Hourly 0 5 0 1 6 0 0 0 2 2Part-Time Total 0 5 0 3 8 0 5 0 4 9Total 131 65 52 226 474 171 81 67 285 604LA2: Total number and rate of employee turnover by age group, gender and region July through December, 2008 January through December, 2009Gender Age Groups Asia EAME LATAM NA Total Asia EAME LATAM NA TotalFemale Under 25 0 1 0 0 1 1 0 0 0 1 26-35 0 3 2 2 7 7 0 1 6 14 36-45 0 0 0 1 1 1 0 0 4 5 46-55 0 0 1 0 1 0 0 0 0 0 Over 55 0 0 0 0 0 1 0 0 2 3Female Total 0 4 3 3 10 10 0 1 12 23Male Under 25 0 0 0 0 0 1 1 0 0 2 26-35 1 0 0 0 1 1 0 4 2 7 36-45 0 3 2 0 5 5 0 3 2 10 46-55 0 2 1 3 6 2 0 0 2 4 Over 55 0 0 0 0 0 0 0 0 2 2Male Total 1 5 3 3 12 9 1 7 8 25Total 1 9 6 6 22 19 1 8 20 48 Novus International, Inc. Health through Nutrition 2009 APPENDIX | 78
  • 78. APPENDIXLA7: Rates of injury, occupational disease, lost days and absenteeism, and number of work-related fatalities by region 2008 2009 Region SG&A Work Related Injuries Region SG&A Work Related Injuries Asia 0 Asia 0 EAME* 0 EAME* 2 LATAM 0 LATAM 1 NA 0 NA 0 Total 0 Total 3 * Lost days: 0 * Lost days: 2 Novus International, Inc. Health through Nutrition 2009 APPENDIX | 79
  • 79. 4.13 and 4.14: Memberships and Associations APPENDIX Alabama Poultry & Egg Association Federation of Animal Science Societies (FASS) North Carolina Poultry Federation Alabama Poultry Association Florida Feed & Grain Association North Dakota Poultry Industries Alabama Poultry Producers Georgia Egg Producers Northwest Poultry Council – Vancouver, WA American Association of Avian Pathologists (AAAP) Georgia Feed & Grain Association – Atlanta, GA Ontario Agribusiness Association American Association of Swine Veterinarians (AASV) Georgia Poultry Federation – Gainesville, GA Ontario Institute of Agrologists American Chemical Society Groundwater Protection Council Pacific Egg & Poultry Association (PEPA) – Sacramento, CA American Dairy Science Association (ADSA) Illinois Farm Bureau PennAg Industries Association American Feed Industry Association (AFIA) Illinois Pork Producers Association Pet Food Institute American Food Institute Institute of Food Technologists Poultry Middle East & North Africa American Food Safety Institute International Fishmeal and Fish Oil Organisation (IFFO) Poultry Science Association (PSA) American Institute of Chemical Engineers International Society of Mycotoxicology Professional Animal Auditor Certification Organization American Meat Science Association Iowa Pork Producers Association (PAACO) American Oil Chemists Society Iowa Poultry Association Society of Rheology American Registry of Professional Animal Scientists Iowa Turkey Federation South Carolina Poultry Federation (ARPAS) Jordanian Agriculture Engineering Association Southern Feed & Grain Association American Society for Nutrition – Jordanian Businessmen Association Southern Poultry Science Association American Journal of Clinical Nutrition Licensing Executives Society Space Solar Alliance for Future Energy (SSAFE) American Society for Testing of Materials Louisiana Poultry Association St. Louis Agribusiness Club American Society of Agricultural & Biological Engineers Louisiana Poultry Federation – Baton Rouge, LA Tennessee Poultry & Egg Association – Nashville, TN American Society of Animal Science Midwest Poultry Consortium Texas Board of Professional Engineers American Society of Mechanical Engineers Midwest Poultry Federation Texas Chemical Council American Society of Pharmacognosy Minnesota Turkey Growers Association Texas Poultry Federation – Austin, TX American Soybean Association (ASA) Mississippi Feed & Grain Association The Poultry Federation – Little Rock, AR American Veterinary Medical Association (AVMA) Mississippi Poultry Association U.S. Poultry & Egg Association – Tucker, GA Animal Nutrition Association of Canada Missouri Soybean Association U.S. Soybean Export Council (USSEC) & American Soybean Asian Fisheries Society National AgriMarketing Association Association International Marketing (ASA-IM) Asociación Mexicana de Especialistas en Nutrición Animal National Animal Supplement Council United Egg Producers – Alpharetta, GA (AMENA) National Association of Credit Management United States Grains Council (USGC) Asociación Nacional de Especialistas en Ciencias Avícolas (NACM) Gateway Region University of Guelph Alumni Association (ANECA) National Association of Credit Management Virginia Poultry Federation Association for Corporate Growth (NACM) North Central Virginia State Feed Association Association of Energy Engineers National Association of Farm Broadcasters (NAFB) Washington University Executive MBA Association of Registered Professional Animal Scientists National Biodiesel Board Alumni Board Member (ARPAS) National Cattlemen’s Association Wisconsin Poultry & Egg Industries Broiler & Egg Association of Minnesota National Chicken Council – Washington DC World Aquaculture Association California Poultry Federation (CPF) – Modesto, CA National Coalition Food Agricultural Research (NC-FAR) World Aquaculture Society Carolina Feed Industry Association National Corn Growers Association (NCGA) Worlds Poultry Science Association (WPSA) Center for Food Integrity National Pork Producers Council (NPPC) Comparative Nutrition Society National Renderers Association (NRA) Council of Agricultural Science & Technology (CAST) National Small Business Association Delmarva Poultry Industry Association National Turkey Federation – Washington DC Equine Science Society Nebraska Poultry Industries FCIB North America Game Bird Association Novus International, Inc. Health through Nutrition 2009 APPENDIX | 80
  • 80. Novus Matching Gift Program Recipients APPENDIX 100 Neediest Cases Missouri Botanical Garden University of Delaware Advocates for Self Government Mothers Without Borders University of New Hampshire Foundation, Inc. American Cancer Society Multiple Myeloma Research Foundation University of Utah American Heart Association National Council on Alcoholism & Drug Abuse Virginia Tech Foundation, Inc. American Red Cross (NCADA) Vision for Youth, Inc. American Society for the Prevention of National Multiple Sclerosis Society Vitamin Angels Cruelty to Animals (ASPCA) National Tiger Sanctuary (GREEN) West Lincoln – Broadwell School Arbor Day Foundation National Trust for Historic Preservation Wide Horizons for Children Arts & Education Council Office of Stewardship & Development – Wyman Center Auburn University Fisheries Alumni Archdiocese of St. Louis XXXXY Fund BJC Hospice Office of University Development – Yellowstone Park Foundation CATO Institute Penn State University Old Settlers YMCA of the Ozarks Colorado College Partners For Madagascar Contemporary Art Museum Pioneer Clubs Dance St. Louis Planned Parenthood of St. Louis Disabled American Veterans Princeton University Donald Danforth Plant Science Center Purdue University Annual Sciences Ecclesiastical Ladies Relay for Life of Avery County ELCA World Hunger Appeal Robert Morris University Friends of Tower Grove Park Rotary Club of Ryde (Novus Australia) Guardian Angel Settlement Association Salvation Army Contact Us Haggai Institute Shakespeare Festival St. Louis Hansen Foundation Sidney Dollars for Scholars If you have comments on Health through Nutrition Heifer International Sister to Sister Foundation or would like further information, please visit Here’s Life Inner City Smiser Alumni Center Honor Society of Phi Beta Kappa St. Jude Childrens Research Hospital Hospice of Southern Illinois St. Louis Area Food Bank Alternatively, you may contact the Novus Sustainability Humane Society of Missouri St. Louis Art Museum Team by sending an email to Huntingtons Disease Society of America St. Louis Auburn Club – Scholarship Fund Iowa Foundation for Agriculture Advancement St. Louis Food Bank or request in writing to the following address: Iowa State University (ISU) Foundation St. Louis Zoo – Marlin Perkins Society James S. McDonnell USO – Lambert St. Louis Airport St. Louis Zoological Park Novus International, Inc. Jewish Federation of St Louis Susan G. Komen for the Cure Attn: Sustainability Team KETC-TV (PBS) Channel 9 The Magic House KFUO-FM Circle of Friends The Ronald Reagan Foundations 20 Research Park Drive KWMU-FM – Public Radio Thunderbird Annual Fund St. Charles, MO 63304 Lawrence University Truman State University Foundation United States of America Leukemia & Lymphoma Society United States Equestrian Team Foundation Liddy Shriver Sarcoma Initiative United Way of Arkansas Maryville University United Way of Greater St. Louis Please provide your name, affiliation and postal and/ Midtown Center University of Arkansas, Chemical Engineering Dept. or email address. You may obtain an electronic copy of Novus’s sustainability report at
  • 81. Health through Nutrition2009 Sustainability Report