Novozymes attaches great importance to reporting in a timely and correct way, as this is seen as key to building a trustworthy company.
Novozymes’ risk management and internal controls relating to financial reporting are organized with a view to:
Novozymes’ internal controls and risk management systems are updated on an ongoing basis and have been designed with a view to discovering and eliminating errors and defects in the financial statements. However, as there is always a risk of misuse of assets, unexpected losses, etc., the internal controls and risk management systems can only provide reasonable and not absolute assurance that all material errors and defects are discovered and rectified.
The internal controls and risk management systems also cover environmental and social data in The Novozymes Report.
A more detailed description of Novozymes’ risk management and internal controls concerning the financial reporting process can be found this report - the statutory report on corporate governance that is required from 2009 according to the Danish Financial Statements Act, Section 107b.
The financial reporting process is monitored by the Audit Committee. As part of this monitoring, all cases of fraud and concerns raised by internal and external persons, etc., are reported to the Audit Committee. In 2009, eight cases were reported. Of these, four led to the dismissal of employees.
From 2009, a new Danish law has made it mandatory to report on corporate responsibility. However, Novozymes already fulfills these requirements as integrated financial, environmental, and social reporting has been included in our annual reporting for many years. Furthermore, Novozymes provides additional information in accordance with the GRI and the UN Global Compact, which requires member companies to publish a Communication on Progress.
The information in the annual report and the Communication on Progress together form the statutory report on corporate responsibility that is required according to the Danish Financial Statements Act, Section 99a.