Novo Nordisk demonstrates shared value in China
In our second Blueprint for Change Programme business case, Novo Nordisk reports that its Triple Bottom Line business principle, balancing economic, social and environmental decisions, has created value for both the Chinese society and Novo Nordisk.
The Blueprint on China, conducted in collaboration with Accenture, confirms the relationship between our market entry strategy, which included physician training, patient education and local production, and the value that has been created for both Novo Nordisk and the Chinese society by reducing the personal and economic burden of diabetes.
"We do business based on the Triple Bottom Line business principle because we believe this is the way to maximise value on multiple dimensions," says Ole Kjerkegaard Nielsen, Programme Director Business Integration at Novo Nordisk. "The Blueprint on China demonstrates that this is happening."
The shared value in training
Conducted in 2010, the Blueprint highlights the training of 220,000 physicians and 280,000 people with diabetes as a driver of shared value. According to the Blueprint, since 1997, patient education has saved the Chinese society DKK 3.7 billion by reducing diabetes related complications while increasing insulin sales for Novo Nordisk by DKK 596 million. Additionally, our investments in strengthening the local healthcare system have built strong relationships with local stakeholders including people with diabetes and healthcare professionals.
Producing locally to reduce environmental impact
The Blueprint further details our initiatives to reduce CO2 emissions through a state of the art production facility in Tianjin, China which was established with a 20% CO2, energy and waste reduction target compared to the current best in class production facility in Brazil. The production facility will make better use of localised suppliers and reduce product distribution distances, saving 25,000 tons of CO2 from 2012 to 2018.
Novo Nordisk in China
We have been operating in China for nearly 50 years and today China is Novo Nordisk's third largest market. Novo Nordisk currently holds 63% of the total insulin market and 70% of the modern insulin market, both measured in volume. Our affiliate office, production site and research and development centre contribute to 14,600 direct and indirect jobs. In 2011, China became a separate region in the organisation of Novo Nordisk's business markets.
Read the complete Blueprint for Change: Changing diabetes in China.
About the Blueprint for Change Programme
Novo Nordisk's 'Blueprints for Change' Programme articulates and communicates the sustainable value created through Novo Nordisk's Triple Bottom Line business approach. The Programme is used to reach out to and engage with stakeholders to gauge external perspectives and expertise that can inspire and enable innovation and increased beneficial impacts.
Read more about the Blueprint for Change Programme.