Novo Nordisk Improves Score, Remains at the Top of 2016 Dow Jones Sustainability Indices
Bagsværd, Denmark, September 12, 2016 /3BL Media/ - Novo Nordisk remains at the top of the pharmaceutical sector on the 2016 Dow Jones Sustainability Indices (DJSI) with a score of 83 out of a possible 100. The company’s score is an improvement of two points from 2015, six points behind Roche, the 2016 industry leader.
The DJSI is a leading global sustainability benchmark tracking performance of the world's leading companies in terms of economic, environmental and social criteria. The index serves as benchmarks for investors who integrate sustainability considerations into their portfolios, and provides an engagement platform for companies who want to adopt sustainable best practices.
Novo Nordisk’s 2016 ranking marks the 17th straight year Novo Nordisk has been a member of the Dow Jones Sustainability World Index, one of only 13 companies included on the Index since it was launched in 1999.
“We aim to be a sustainable business and stay focused on our mission to improve treatment for people living with diabetes and other chronic diseases. This requires long-term focus and commitment,” says Charlotte Ersbøll, corporate vice president, Corporate Stakeholder Engagement at Novo Nordisk. “The Indices are a valuable benchmark for us to learn where and how improvements can be made.”
Compared to 2015, Novo Nordisk improved its score on the social and environmental DJSI dimensions and remains unchanged on the economic dimension.
Advancements and setbacks
Novo Nordisk was an industry leader in four of the Index’s 22 categories: Tax Strategy, Environmental Reporting, Corporate Citizenship & Philanthropy and Strategy to Improve Access to Drugs or Products.
Top three performance advancements include (scores out of 100):
- Operational Eco-Efficiency improved by 90%, from 30 in 2015 to 57
- Product Quality and Recall management went up 31%, from 67 in 2015 to 88
- Tax Strategy went up 16%, from 73 in 2015 to 85
Top three performance setbacks include (scores out of 100):
- Innovation Management declined by 16%, from 85 in 2015 to 71
- Marketing Practices declined by 12%, from 89 in 2015 to 78
- Labour Practice Indicators and Human Rights declined by 6%, from 93 in 2015 to 87
Scoring for the DJSI is based on companies’ self-reported data which is used to assess performance in 22 categories divided into economic, environmental and social dimensions. Year-on-year scores are not fully comparable, as questions and weighting are subject to change. Detailed feedback on rationale for scores is not provided by the raters. Nor is relative performance against peers in the index disclosed at this point.
About the Dow Jones Sustainability Indices (DJSI)
The Dow Jones Sustainability Indices are investor-led and serve as a benchmark for investors who integrate sustainability considerations into their portfolios and look for best-in-class performance. The Dow Jones Sustainability Indices track the world’s leading companies in terms of their social, environmental and economic performance.