Audited by PwC

Independent assurance report on Novozymes' environmental and social responsibility reporting 2008

Subject matter, responsibilities, objectives and scope of assurance report
The environmental and social data and information presented in the Annual Report on which this Assurance Report is based are also comprised by our audit of the Annual Report. As further agreed with Management, we have performed work to express a conclusion in relation to each of the key principles of the AA1000 Assurance Standard (2003): materiality, completenessand responsiveness, and to evaluate the environmental and social responsibility data and information in the Annual Report for 2008, as well as underlying systems, processes and competences underpinning performance.

The environmental and social responsibility reporting is the responsibility of Novozymes’ Management. Our responsibility is to express a conclusion as well as to make recommendations on the environmental and social responsibility information in the Annual Report.

Basis of conclusion
We planned and performed our work based on the AA1000 Assurance Standard and in accordance with the International Standard on Assurance Engagements (ISAE) 3000, “Assurance Engagements other than Audits or Reviews of Historical Financial Information (revised)”, to obtain reasonable assurance that the environmental and social responsibility reporting in the Annual Report is free from material misstatements and that the information has been presented in accordance with the accounting policies applied. On the basis of an assessment of materiality and risk, our assurance work included an examination, on a sample basis, of management and reporting systems, processes and competences supporting Novozymes’ performance, as well as systems, procedures and evidence supporting the social and environmental data and information disclosed in the Annual Report. Our assurance work further included interviews with members of Executive Management, local management and specialists in key environmental and social areas, as well as an assessment of stakeholder engagement and Novozymes’ understanding of non-financial impacts, including its sphere of influence. Further, we performed an assessment of the reporting against peer reporting, media reports and industry knowledge. Our activities were undertaken at selected reporting units in the USA, China, India and Denmark. We believe that the work performed provides a reasonable basis for our conclusion.

Conclusion
Based on the work performed, we state our conclusion in relation to each of the key principles of the AA1000 Assurance Standard (2003): materiality, completeness and responsiveness.

Materiality
In our opinion, the Annual Report, while mainly addressing corporate financial stakeholders, provides a fair and balanced representation of material aspects of Novozymes’ environmental and social performance.

Reported qualitative and quantitative environmental and social indicators form part of the strategic and operational decision-making at Novozymes, including as an element in the evaluation of Management’s performance.

The presentation of data and information relating to Novozymes’ environmental and social performance is comparable to previous years and assists key stakeholders in interpreting the Annual Report in relation to their decision-making needs.

Completeness
In our opinion, the environmental and social responsibility data and information in the Annual Report have been included as a result of relevant activities for identifying and assessing environmental and social performance and impacts. Stakeholder engagement is mostly driven through selected initiatives focused at established issues and stakeholders. In 2008, Novozymes further designed and prepared a tool for stakeholder mapping and engagement which will be introduced in 2009.

Novozymes identifies and manages material aspects of its environmental and social performance within and beyond the boundaries of its direct management control. For example, Novozymes explores how its technologies and product portfolio can help to reduce customers’ products’ environmental impact. The latter applies especially applies to reduction of the CO2 emission level. In 2008, for example, Novozymes completed a comprehensive LCA study on how the use of enzymes can reduce the CO2 emission level in customers’ processes. Novozymes continues its efforts to identify and manage environmental and social impacts within the Company’s sphere of influence. In 2008, Novozymes thus designed and developed a system to manage risks in the supply chain more systematically.

Responsiveness
In our opinion, the environmental and social responsibility data and information in the Annual Report address aspects material to Novozymes’ key corporate stakeholders. In general, reported indicators and targets related to environmental and social performance are linked to relevant policies and management systems.

Responsiveness is supported by well-functioning management systems, which include use of internal and external environmental and social audits as well as values-based audits (facilitations). Also, Novozymes engaged actively in the global debate on climate change, including specifically the debate on sustainable use of bio-fuels.

In our opinion, the existing management and reporting systems as well as internal control systems support the reliability and accuracy of the environmental and social data and information in the Annual Report.

Commentary
According to the AA1000 Assurance Standard (2003), we are required to include recommendations for improvements in relation to environmental and social responsibility. The recommendations as well as our statement of independence and competence to undertake this assignment in line with the requirements of the AA1000 Assurance Standard (2003) will be found under “Supplementary reporting” in the online report. Our recommendations do not affect the conclusion stated above.

 

Bagsvaerd, January 22, 2009

 

PricewaterhouseCoopers
Statsautoriseret Revisionsaktieselskab




Kim Füchsel
State Authorized Public Accountant


Helle Bank Jørgensen
State Authorized Public Accountant