Long-term scenarios

Audited by PwC

Executive Management conducts an annual evaluation of the opportunities for future growth. The basis for this evaluation is reports on long-term scenarios regarding each of the business areas, supplemented by selected key scenarios. The reports contain sensitivity analyses and, for expansion projects and larger investment proposals, a calculation of the net present value of the investment is included.

Part of this scenario work involves identifying potential bottlenecks for future growth, such as the need to expand production capacity.

Changes in external factors are included in the scenario work. For example, the current emphasis on environmental measures aims to reduce CO2 emissions, but what lies beyond CO2 reductions? One project emerged from this work and has been finalized in 2009. As a result, Novozymes has strengthened the focus on water availability and consumption.

Some of the scenarios presented to Executive Management spring from risks identified by the enterprise risk management setup.

My Report
Every drop counts
Water is increasingly being recognized as a critical sustainable development issue in international politics. The availability of freshwater per capita is steadily decreasing on a global scale, and in many regions water resources cannot meet demand ...