Corporate Social Responsibility in the

pharmaceutical industry
– The Novo Nordisk Way…..

Lars Rebien Sørensen

President and CEO
Novo Nordisk A/S

‘Dialogue and Action’

Madrid 24 November 2006
 Dialogue and Action Page 2

‘The business of business – is business!

But when the time horizon is long enough
social and environmental challenges
become crucial for companies to retain
their license to operate’
Lars Rebien Sørensen,
November, 2006
 Dialogue and Action Page 3

Pressure on the pharmaceutical industry

Innovation and Healthcare All-time low

business model cost containment stakeholder trust

Stakeholder Research & Sales & Stakeholder

Production
needs Development Marketing success
 Dialogue and Action Page 4

Challenges for the industry

Industry challenges:
Innovation, cost and trust

Increasing focus on Increasing focus on

business practices risk management
Pharma
industry
Increasing focus on
Increasing focus on
product innovation and
good citizenship
solving real medical needs

Increasing need for

joint solutions and
a broader business design
 Dialogue and Action Page 5

The Triple Bottom Line

- integrating ethics and business

Economically viable
Corporate profitability and growth Business ethics
Socio- and health economics

Human ethics Diabetes care

Bio ethics
Biopharmaceuticals
Socially responsible Environmentally sound
Employees, patients, External environment,
communities experimental animals
 Dialogue and Action Page 6

Identifying present and future issues

Level of Environmental management

Strategy revisited
integration Health and safety
Bioethics
Sustainable supply chain Full business integration
Human rights
Access to health
Embedding in the organisation
Diversity
Business ethics
Climate change
Socio-economics Stakeholder dialogue
Indicators, data and targets
Healthy lifestyles
Review and strategy
Globalisation
Responsible Issue identification
lobbying
Trend spotting, Level of
stakeholder engagement
learning
 Dialogue and Action Page 7

Novo Nordisk’s business approach

GLOBAL
SOCIETY LEVEL COMBATING
CORPORATE CHRONIC DISEASES
GOVERNANCE

NATIONAL HUMAN
CLIMATE
RIGHTS
CHANGE ACCESS MARKET LEVEL EDUCATION
PRICING TO CARE
SCHEMES AWARENESS
PRODUCT PATIENT PRODUCT
QUALITY LEVEL SAFETY

RESEARCH & IPR, QUALITY, PRODUCTION MARKETING SALES,

DEVELOPMENT REGULATORY DISTRIBUTION

DAWN OPTIMAL
CUSTOMER CUSTOMER
PUBLIC CONTROL
INNOVATION SATISFACTION SOCIO-
HEALTH STRATEGY ECONOMICS
ADDITIONAL
INFRA- NATIONAL
FUNDING
STRUCTURE CHANGING DIABETES
BUSINESS PROGRAMMES ACCESS TO
ETHICS HEALTH
ACCOUNTABLE RESPONSIBLE
PARTNERSHIPS LOBBYING

DIVERSITY
 Dialogue and Action Page 8

Is climate change a real problem?

The precautionary
principle assumes that
there is a risk, when we
cannot prove if the risk is
real
 Dialogue and Action Page 9

A strategy to address climate change

CO2 emissions Without cLEAN®

630,000 t Without CO2 strategy

~
280,000 t

With cLEAN®
Without CO2 strategy
350,000 t

With cLEAN®
>158,000 t
With CO2 strategy

210,000 t Target 10%

2004 CO2 line 192,000 t reduction
by 2014

2004 2006 2008 2010 2012 2014

 Dialogue and Action Page 10

Strategy to provide improved access to

health for people with diabetes

WHO priorities Novo Nordisk's response

Development of national National Diabetes
healthcare strategies Programme & DAWN

Development of National Diabetes

healthcare capacity Programme

Best possible pricing Best possible pricing

scheme in LDCs

Additional funding World Diabetes

Foundation
 Dialogue and Action Page 11

Conclusions – why an ethical approach

makes good business sense…

• License to operate and innovate

• Proactive risk management

• New business opportunities

• Innovation

• Employee engagement

• Stakeholder trust and market credibility