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Corporate Social Responsibility in the

pharmaceutical industry

The Novo Nordisk Way..

Dialogue and ActionMadrid 24 November 2006

Lars Rebien Srensen

President and CEO

Novo Nordisk A/S

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Page 2Dialogue and Action

The business of business is business!

But when the time horizon is long enough

social and environmental challengesbecome crucial for companies to retaintheir license to operate

Lars Rebien Srensen,November, 2006

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Pressure on the pharmaceutical industry

Research &Development

Sales &Marketing

ProductionStakeholderneeds

Stakeholdersuccess

Innovation andbusiness model

Healthcarecost containment

All-time lowstakeholder trust

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Challenges for the industry

Pharmaindustry

Increasing focus on

risk management

Increasing focus onproduct innovation and

solving real medical needs

Increasing focus on

business practices

Increasing focus ongood citizenship

Increasing need forjoint solutions and

a broader business design

Industry challenges:Innovation, cost and trust

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The Triple Bottom Line- integrating ethics and business

Business ethics

Bio ethicsHuman ethics

Economically viableCorporate profitability and growth

Socio- and health economics

Diabetes care

Biopharmaceuticals

Socially responsibleEmployees, patients,

communities

Environmentally soundExternal environment,experimental animals

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Identifying present and future issues

Level oflearning

Responsiblelobbying

Full business integration

Strategy revisitedLevel ofintegration

Issue identification

Review and strategy

Stakeholder dialogueIndicators, data and targets

Embedding in the organisation

Health and safetyBioethics

Sustainable supply chain

Environmental management

Human rightsAccess to health

Diversity

Globalisation

Business ethicsClimate change

Socio-economics

Healthy lifestyles

Trend spotting,stakeholder engagement

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Novo Nordisks business approach

CORPORATEGOVERNANCE

CLIMATECHANGE

GLOBALSOCIETY LEVEL COMBATING

CHRONIC DISEASES

HUMANRIGHTS

BUSINESSETHICS

ACCOUNTABLEPARTNERSHIPS

DIVERSITY

RESPONSIBLELOBBYING

ACCESS TOHEALTH

PUBLICHEALTH STRATEGY

INFRA-STRUCTURE

NATIONALCHANGING DIABETES

PROGRAMMES

ADDITIONALFUNDING

SOCIO-ECONOMICS

PRICINGSCHEMES

ACCESSTO CARE

EDUCATION

AWARENESSPRODUCTQUALITY

PRODUCTSAFETY

DAWN CUSTOMERINNOVATION

CUSTOMERSATISFACTION

OPTIMALCONTROL

RESEARCH &DEVELOPMENT

IPR, QUALITY,REGULATORY

PRODUCTION MARKETING SALES,DISTRIBUTION

NATIONALMARKET LEVEL

PATIENTLEVEL

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Is climate change a real problem?

The precautionaryprinciple assumes thatthere is a risk, when wecannot prove if the risk is

real

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Without cLEAN

Without CO2 strategy

A strategy to address climate change

350,000 t

210,000 t

2004 CO2 line

>158,000 t

192,000 t

~

280,000 t

630,000 tCO2 emissions

Target 10%reduction

by 2014

2004 2006 2008 2010 20142012

With cLEAN

Without CO2 strategy

With cLEAN

With CO2 strategy

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Strategy to provide improved access tohealth for people with diabetes

WHO priorities

Development of nationalhealthcare strategies

Development ofhealthcare capacity

Best possible pricing

Additional funding

Novo Nordisk's response

National DiabetesProgramme & DAWN

National DiabetesProgramme

Best possible pricingscheme in LDCs

World DiabetesFoundation

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Conclusions why an ethical approachmakes good business sense

License to operate and innovate

Proactive risk management

New business opportunities

Innovation

Employee engagement

Stakeholder trust and market credibility

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