Increasing productivity and resource efficiency make sense from both an environmental and a financial point of view. To track performance over time, we have calculated annual corporate eco-productivity indices (EPIs) and set targets for these, since we began reporting in 1993. These were based on our total annual consumption of water, energy and raw materials in relation to the turnover of Enzyme Business, where most of our resource-consuming production takes place.

In relation to site management these indices were of little value as they could not be broken down to site level and used for target setting. During 1998 we have therefore developed new site EPIs, based on the actual amount of product recovered in relation to the consumption of water and energy respectively. The site EPIs can be aggregated into corporate EPIs, but at this stage the new aggregated EPIs are based solely on sites where basic production (BP) takes place, i.e. fermentation and recovery. We call this our EPI_BP. The water and energy used in the basic production processes account for 72% and 58% respectively of our total consumption. During the transition towards developing corporate EPIs based on the new site EPIs, we will this year also report on the former EPIs and the targets that were set for these in our 1997 report.

New 1999-2000 target: Further develop our site and corporate EPIs to include the finishing stage of production.

Energy

1995-98 target: An average annual increase in energy eco-productivity by 4 percentage points.

Even though our total energy consumption decreased by 2.3%, the former EPI increased by only 2 percentage points and the target has not been achieved. The main factor influencing the relatively small improvement in energy eco-productivity is the 1% decrease in the indexed turnover of Enzyme Business in 1998.

In 1998, 2.37 million GJ of energy were consumed in basic production, resulting in an increase in the new EPI_BP to 106. This indicates that we have consumed less energy per unit of product recovered than in 1997. This represents savings of 220,000 GJ, corresponding to approximately DKK 11.1 million.

With the liberalization of the Danish electricity sector we have been able to purchase hydroelectric power from Sweden. Apart from being an environmentally sound electricity generation method it is also a lower-cost alternative. This has been a contributing factor to the decrease in average energy costs per unit of 6% in basic production in 1998.

During the next three years we also expect to see further savings in energy consumption in Denmark as a result of a DKK 20 million investment subsidized by the Danish Energy Agency for energy-saving equipment at our sites at Kalundborg and Copenhagen.

New 1999 target: Increase the basic production eco-productivity (EPI_BP) for energy by 4 percentage points.

Water

1995-98 target: An average annual increase in water eco-productivity by 5 percentage points.

Our total water consumption in 1998 was 4% less than in 1997 and the corporate water EPI increased from 168 to 174, therefore our target has been achieved.

The new EPI_BP of 111 corresponds to water consumption savings of 360,000 m³. This was a result of an improved efficiency in water utilization which was partly offset by an average increase in water prices, so that overall water costs for basic production were DKK 0.5 million less than calculated costs for 1998.

Water-saving programmes have been implemented at a number of our sites. For example at our largest site, Kalundborg, we have found ways to reduce the use of high-quality water. In 1998 the programme resulted in a 9.6% reduction despite an increase in production. Increases in water consumption occurred at our new enzyme site in Tianjin, China, due to the start of production this year. Our insulin formulation and filling sites in Chartres, France, and at Hillerød, Denmark, have been expanded and consumption of water has doubled at these sites.

New 1999 target: Increase the basic production eco-productivity (EPIBP) for water by 5 percentage points.

Raw materials and packaging materials
Figures for 1994-1997 are stated for purchased quantities. From 1998 we have changed the accounting method and the stated figures are now for consumed quantities. The figures for 1998 are, therefore, not comparable with those of former years. The target for raw materials eco-productivity has been an average annual increase by two percentage points. However, due to the disparity of our raw materials and their environmental impact the target has been annulled. The new method is based on information from several data systems. Even though this method eventually will lead to more relevant and reliable figures, it is also a more complex procedure. Figures for consumption of raw materials and packaging for 1998 may be subject to some uncertainty. Further integration of data systems is required.