Novozymes is a global leader in industrial biotechnology with over 6,000 employees. They produce enzymes and microorganisms that are used in a variety of industries such as food, detergents, biofuels, and more. Novozymes uses life cycle assessments to evaluate the environmental impact of their products and has found their solutions can significantly reduce greenhouse gas emissions. Their enzymes are also helping customers reduce water usage and waste in industries like textiles. Novozymes works closely with partners like Procter & Gamble and Nestle to integrate sustainable solutions into their product pipelines.

1. Life Cycle Thinking and Bio-Innovation
April 22, 2014
Arlan Peters
Head of Sustainability
Novozymes North America
arpp@novozymes.com

2. NOVOZYMES IN NUMBERS
DKK 11,746
million sales
48%MARKET SHARE
Within industrial enzymes
700+
products
130countries
6,000+
employees
different industries
30+ 24.7%
EBIT margin
6,500+granted patents and
pending patent

4. Delivering solutions from
nature:
food applications, detergents,
pharmaceutical products, the
energy sector and countless other
applications
Helping companies
become more efficient:
energy efficiency, saving raw
materials, reducing waste and
replacing chemicals
This unique approach
leads to:
“more with less”
higher quality, lower costs, better
yields and a better environment
4
We Rethink Everyday Products - Everyday

5. September 11, 2012
“The world’s largest consumer goods company, Procter & Gamble (P&G),
has named Novozymes as "External Business Partner of the Year" for the
fifth year in a row. Procter & Gamble announced the awards at its annual
External Business Partner Summit on September 11, 2012 in Cincinnati.
Novozymes Recognized by P&G for 5 years In a Row
Nestlé Honors Novozymes with Innovation Partnership Award
July 04, 2012
Last week Nestlé, the world’s largest food company, honored
Novozymes with its “Innovation Partnership Award” – the company’s
highest R&D honor for external partners.
Novozymes was the only recipient of the award and was chosen from a
field of more than 100 projects with external partners and 15 award
nominations. A great compliment to the team involved…
Integration with Partners’ Product Pipeline

6. Our vision: a future where our biological solutions
create the necessary balance between better
business, cleaner environment and better lives.
Address Macro Trends Worldwide
 Climate change
 Growing population
 Scarce resources
 Increasing regulation
novozymes®

7. Novozymes is Recognized Sustainability-driven
Organization
Novozymes in the Dow Jones Sustainability Indexes (DJSI):
• Included in DJSI Biotechnology sector since
2000, sector leader 2000-2007 and 2009-2012
• ‘Gold Class’ rating in 2010-2013 in
Sustainable Asset Management (SAM) Sustainability Yearbook

8. We link business and sustainability
We have used LCA since 2004 to estimate the
impact of our solutions in R&D, in production
and when used by our customers
.
Studies are
conducted in
agreement with ISO
14040 on LCA and
published in various
journals
Life Cycle Assessment - LCA

9. BioInnovation Effects on Greenhouse Gas Emissions
CO2 COSTS PRODUCING 1KG ENZYME: 1-10 KG
CO2 REDUCTION USING 1 KG ENZYME
IN DIFFERENT INDUSTRIES :
CEREAL
3,800 KG
ANIMAL FEED
30 KG
OIL & FATS
1,300 KG
FOOD
200 KG
TEXTILES
100 KG
LEATHER
40 KG
BIOFUELS
150 KG
PAPER
UP TO
600 KG BIOCATALYSIS
3,400 KG
DETERGENT
150 KG
52 Million tons CO2 emission reductions in 2013 =
emissions from >17 million cars

10. LCA ”light” Introduced at Earliest Stages of Development
 Novozymes uses LCA ”light” (= a rough LCA) to clarify the environmental performance of
new products in development
 LCA light builds on assumptions rather than real data that always supports full LCAs
LCA “light” supports:
 Decision making about project portfolios
 Selection of focus areas
 Selection of candidates for full LCAs
 Strengthened customer dialogue through
 Sharing of technical insights
 Scenario-building
 Added customer value
New Lead Discovery Development
Pre-
New Lead Launch

11. A Value Chain Approach to Sustainability:
The Carbon Footprint of Washing
Consumers
Waste &
recycling
Raw
materials
Detergent
production
Packaging
& transport
Retail
People who
wash
Waste &
Recycling
 20-30% of
total CO2
emissions
 10% of total
CO2 emissions
 60-70% of
total CO2
emissions
Note: % CO2 distribution based on European wash conditions
Sources: Novozymes’ life cycle assessments and Unilever detergent value chain carbon footprint estimates
Developed world markets

12. Example: “I Do 30” Campaign
Warm wash with
conventional
detergent
Low temp. wash
with more enzyme
and less surfactant
We compare the
environmental impact of
producing detergent
enzymes on the one side
and saving surfactant and
energy for heating the
wash water on the other
Clean laundry
Others
Builders
Surfactants
Surfactants
Builders
Others
60C
Surfactants
Builders
Others
30C
...samebenefitto theuser- but
differentenvironmentalimpact

13. Textiles Is Sustainability Focus Area
WATER IS BECOMING SCARCER
• Global consumption of water is
doubling every 20 years
• Today 1.1 billion people lack access
to safe drinking water
• Global population is estimated to
reach 8 billion in 2025 sharing
estimated 70 percent of accessible
freshwater
Source: www.un.com
Water demand
(liters/ton)
High
Medium
Low
>105
<105
Low Medium High
Electricity
Food
&
Drink
Oil
Refining
Metal
Fibers
Rubber
Paper
Textiles
&
Chemicals
Leather
Electronics
Pollution Potential
Source: Dystar

14. Cotton
cultivation
Spinning
Knitting
Weaving
Textile
treatment
Finishing &
sewing
Novozymes’ own calculations
Chapaign et al (2005)
The water footprint of cotton consumption by UNESCO-IHE Institute for Water Education
~ 4000 m3/ton of fabric
~ 4000 m3/ton of fabric ~ 200 m3/ton of fabric ~ 100 m3/ton of fabric
Source:
Pesticides Cotton residues
causing
biochemical oxygen
demands (BOD)
Dye
Chemicals
Cotton residues
causing
biochemical oxygen
demands (BOD)
Chemicals
> 10 m3/ton of fabric
Green water (e.g. rain)
Blue water (tap water)
Emissionstowater
Water Consumption In Conventional Textile
Production

15. Cotton
cultivation
Spinning
Knitting
Weaving
Textile
treatment
Finishing &
sewing
Novozymes’ own calculations
Chapaign et al (2005)
The water footprint of cotton consumption by UNESCO-IHE Institute for Water Education
~ 4000 m3/ton of fabric
~ 4000 m3/ton of fabric ~ 150 m3/ton of fabric ~ 100 m3/ton of fabric
Source:
Pesticides Cotton residues
causing
biochemical oxygen
demands (BOD)
Dye
Chemicals
Cotton residues
causing
biochemical oxygen
demands (BOD)
Chemicals
> 10 m3/ton of fabric
Emissionstowater
Green water (e.g. rain)
Blue water (tap water)
Water Consumption In Best Practice Enzymatic
Textile Production

16. Biopolished cotton textile Nonbiopolished cotton textile
Treated fabric (no dead cotton) Nontreated fabric (dead cotton)
Novozymes’ Enzymes For Biopolishing Create Better
Textile – Extending Product Life

17. Cotton cultivation
Spinning
Knitting
Weaving
Textile treatment
Finishing &
sewing
Improved quality
- 20% Extended lifetime
- Consumer satisfaction
Biopolished textiles
and garments
~ 4000 m3/ton of fabric
~ 4000 m3/ton of fabric ~ 200 m3/ton of fabric ~ 100 m3/ton of fabric> 10 m3/ton of fabric
Sources:
• Novozymes
• Chapagain et al (2005)
• The water footprint of cotton consumption by UNESCO-IHE Institute for Water Education
LINT
GREY
FABRIC
FABRIC
20% = 1660 m3 water/ton of fabric saved
Green water (e.g. rain) Blue water (tap water)
Water Savings Potential With 20% Life Time
Extension From Biopolishing

18. Sustainability: A Source Of Innovation
THANK YOU!