Methodology report for Novo Nordisk’s environmental profit and loss account

Introduction

The Novo Nordisk Environmental Profit and Loss Account (E P&L) is a response to PUMA’s call for contributions to the E P&L methodology and the expert review of PUMA’s E P&L.

The Novo Nordisk E P&L is reported in two parts; the main report, which focuses on the results and the application of these in a Novo Nordisk context, and the methodology report which focuses on the methodology applied for establishing the E P&L results.

The following methodology report:

1. Summarises the methodological contributions and deviations from PUMA’s original E P&L methodology.
2. Provides a detailed explanation of the data sets, quantification methods, and valuation methodologies used to complete the E P&L.

Not all of the points from the review have been addressed in this E P&L, but those that have are listed in section 1.1. These are the main conclusions and contributions to the E P&L methodology from this analysis.

Modelling approach and scope

The report combines environmentally extended input-output modelling with more detailed life cycle data for selected purchases. FORWAST supports estimates of greenhouse gas emissions and air pollution, while a separate Trucost model estimates water use. Glucose is examined through hybrid modelling, including indirect land use change. This approach provides broad supply-chain coverage, but sector averages and geographical assumptions limit product-specific precision. Consumer use and end-of-life disposal are excluded. The report documents the 2011 account, so its data and assumptions should be interpreted in that historical context.