For Novo Nordisk, it is no longer sufficient to know that a transport supplier has a responsible approach to environmental management. The next step has been to set firm criteria as a basis for cooperation. A further step has been taken in Denmark where standard methods have now been established for measuring the environmental efficiency of road transport.

Status on 1997-98 target: Prepare an environmental policy and action plans for worldwide transportation.

A global policy was established in 1997 with requirements that will be part of the agreements to be made with our strategic transport suppliers during 1998. Thanks to the close cooperation with them, by 1999 we expect to have a much clearer picture of how to reduce emissions from deliveries within Europe.

Status on 1997-98 target: Prepare control procedures to assess our transportation contractors' compliance with our environmental requirements within Europe.

Progress has been made in this area in 1997 and we expect these procedures to be completed in 1998.

Calculating impacts
For the first time we are publishing figures compiled using the new Danish measurement methods. The table shows the volume of emissions from the transportation of goods by truck between Denmark and destinations in two European countries during the fourth quarter of 1997. This is the first step towards being able to compare the environmental impact of transportation.

Danish Ministry of Transport project
In an effort to reduce CO₂ emissions, the Danish Ministry of Transport has initiated a project to assess the advantages of environmental management in the transport sector. The main emphasis is on trials involving major transport contractors and purchasers of transport services. Novo Nordisk is participating actively in this project along with one of our strategic transport suppliers. The project is being conducted in cooperation with the Danish Shippers' Council and the Association of Danish International Road Hauliers.

Direct dispatch cuts transport
In 1997, an optimization programme was started for the finished goods warehouses in Denmark. This is an ongoing project and we will be establishing a more centralized warehousing system for

the distribution of enzymes . The current proportion of enzyme products sent direct from a plant in Denmark to European customers is around 90% and this will be increased. Further reductions in transportation between our own warehouses and sites can therefore be expected.

New 1998-99 target: Start evaluating and introducing methods for calculation of fuel consumption and emissions from transport by air, rail and sea.

New 1998-99 target: All our plants worldwide are to adopt methods for evaluating the fuel consumption and emissions from road transport used for export and import.

Novo Nordisk's Global Transportation Policy

The policy has two main principles:

• Minimizing empty transports by using the same supplier or same transportation unit for both import of raw materials and export of finished products
• Optimizing the utilization of each transport unit to reduce energy consumption to the lowest possible figure per t/km

Requirements of transport agreements

• The transport supplier's targets and attitude towards improving environmental performance
• Compliance with existing legislation (concerning the environment, traffic regulations, regulations on driving and resting time)
• A guarantee that the transport supplier's responsibilities also cover possible subcontractors
• Utilization of the transport unit as a percentage of the total space available
• Environmentally sound diesel and motor oil
• Drivers must be trained in environmentally sound driving
• At least once a year, documentation showing progress on environmental measures is to be submitted to Novo Nordisk

Special requirements for exporting from Denmark to Europe

• The trucks must comply with Euro 2 standards
• In our evaluation of strategic transport suppliers, environmental factors constitute 20% of the total rating system
• The standard emission forms from the Danish Shippers' Council and the Association of Danish International Road Hauliers must be used for documenting and reporting fuel consumption and vehicle emissions

Environmental impact of distributing 1000 tons by road, Oct. to Dec. 1997

Distribution of products from Denmark

Site-to-site transportation in Denmark

Health & Safety