Novo Nordisk new Super Sector Leader in Dow Jones Sustainability indexes
-September 2005
In its 2005 analysis of sustainability leadership, the SAM group announces that it has rated Novo Nordisk a Super Sector Leader in healthcare, effective with the opening of equity markets on 19 September. The rating places Novo Nordisk as a healthcare leader on the global Dow Jones Sustainability World Index as well as the pan-European Dow Jones STOXX Sustainability Index.
“Novo Nordisk has been included in these indexes since they were formed in 1999, and always placed among the best. However, this is the first time that the company wins the attractive position as a Super Sector Leader. This is a very valuable recognition of our unwavering commitment to sustainability, since it is a measure of our performance and reporting as compared with industry peers,” says Lise Kingo, Executive Vice President of Novo Nordisk.
“Super Sector Leaders in the indexes clearly have a higher visibility towards investors, and are also shortlisted for global benchmarks, and this is particularly helpful to Novo Nordisk, which despite its leadership in this field is a relatively small company when compared with big pharma or with other global sustainability leaders. So this is a great opportunity to promote Novo Nordisk and what we stand for. And it is an obligation for us to carry on and stay in the driver's seat,” says Lise Kingo.
How Novo Nordisk is rated
In its rating, SAM describes Novo Nordisk as “the sustainability leader of the pharmaceutical industry and has an excellent overall sustainability performance. Its commitment to sustainability has been integrated across the whole company in terms of business levels and segments. The company shows industry leadership through a clear priority setting, recognizing business dilemmas and a stringent risk management process. Concerning environmental issues, Novo Nordisk is positioned among the best in the industry with an excellent reporting and good performance figures. The company has a long tradition for actively seeking the dialogue with stakeholders and engaging in partnerships to prevent diabetes. It publicly outlines and explains its position on controversial political and ethical issues such as access to health, animal experimentation, gene technology, human rights, intellectual property rights and stem cells. Moreover, it focuses on identifying and developing talent in the organization and actively supports diversity.”
The total score given to Novo Nordisk is 82%, as compared with 78% in 2004. Improved performance is noted in all three dimensions: economic, environmental and social performance. The industry average rating is 56%.
Full scores (ie 100%) are given to the company’s performance on the parameters ‘Animal testing’, ‘Environmental reporting’, ‘Investor relations’, ‘Social reporting’ and ‘Standards for suppliers’.
About the 2005 review
Accounting for issues such as corporate governance, climate change, supply chain standards, and labor practices, the annual review of the DJSI family is based on a thorough assessment of corporate economic, environmental and social performance. Its results will influence the investment decisions of asset managers in 14 countries who have licensed the DJSI family as benchmarks and underlying for a variety of sustainability-driven portfolios – including mutual funds, segregated accounts, structured products, as well as an exchange traded fund that is listed on Euronext. Total assets under management in DJSI-based investment vehicles currently amount to 3.3 billion Euro (4.1 billion USD).
For more information, see the Dow Jones Sustainability Indexes
