2009 Novus Sustainability Report

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  • 1.Health through Nutrition2009 Sustainability Report

2. Whats in this Report?Table of Contents Welcome and Background Welcome01 From the CEO 02 Motivating Factors 03 Novuss Background 12 Sustainable Culture16 Sustainability in Practice Social 24 Economic 37 Environmental58 Quality of Life66 GRI Index68 Key Performance Indicators 70 Appendix 74 3. WelcomeThis report summarizes the past progress and future commitment of Novus International, Inc.to providing innovative solutions that will help feed the world affordable, wholesome food and achieve a higher quality of life. The earths population is increasing by 75 millionpeople per year. In the next 40 years, its limited natural resources will have to bear the burdenof feeding 3 billion people more than the globalpopulation of 6.6 billion today. The strain onthe planets resources makes it imperative to protect quality of life by moving forward in ways that support global sustainability.Health through Nutrition is Novuss second sustainability report. The first report covered the18-month period ending June 30, 2008, whichcomplied with the Level C guidelines of theGlobal Reporting Initiative (GRI). This report covers the 12-month period ending December 31, 2009, with footnote data pertaining to the date range of July 1 to December 31, 2008. It fulfills the more rigorous Level B GRIguidelines. Going forward, Novus plans to publisha sustainability report on an annual basis.GRI: 3.1, 3.2, 3.3, 3.5, 3.6, 3.7, 3.9, 3.10 and 3.11Novus International, Inc. Health through Nutrition 2009 | 1 4. From the CEODear Reader,As we worked to compile Health through Nutrition,nearly the same amount of arable land and waterI was reminded that it takes planning, time andresources currently available. These astoundingthousands of small steps to make sustainable statistics highlight the relevance of establishingchanges. I am proud of the efforts and enthusiasmsustainable practices across the value chain ofthat our global Novus team has shown by workingnutrition. Developing sustainable practices that willtogether towards our sustainability goals. support the needs of our growing population, protect environmental resources and ensure the profitabilityNovus is a participant in the farm-to-tableof our customers are Novuss highest priorities.nutrition continuum and because of this, we havea distinct responsibility to the communities weFor our team at Novus, sustainability is a cultureserve. Novuss Vision is To Help Feed the Worldthat begins on an individual level. We believe thatAffordable, Wholesome Food and Achieve a innovation, education and collaboration will improve the quality of lifeHigher Quality of Life. Our performance as a for people around the world and ultimately, our business performance.company and our Vision are not separateeach is connected inextricably with the other. Thank you for investing the time to get to know Novus a little betterThis relationship is clearly expressed in theand to learn about the ways we are working to increase our positiveNovus triple bottom line: social, economic and impact on the world each day. This is our second sustainability report.environmental (SEE). We intend to measure our continuous improvement against this report and future reports each year.The components of SEE comprise Health throughNutrition and are integrated into our business At Novus, we value transparency. In this spirit, I invite you to sendapproach. Our activities and goals, as they relate any questions or comments that you may have about this report toto this triple bottom line, will continue to besustainability@novusint.com.shaped as we innovate, learn and collaborate.In this way, we intend to maintain our long-term Sincerely,commitment to Novuss sustainable culture andglobal Vision.During the reporting period for Health throughNutrition, the United Nations announced that Thad W. Simonsby 2050 we will have to feed our world doublePresident and Chief Executive Officerthe amount of food that we do today, using Novus International, Inc.GRI: 1.1Novus International, Inc. Health through Nutrition 2009 | 2 5. Our Motivating Factors Working within a framework of Core Values, Novus employees have collectively brought to marketmore than 100 new products over the past few years. This innovation and agility would not be possible without a culture that combines entrepreneurial thinking with organized structure and the motivatingVision to Help Feed the World Affordable, Wholesome Food and Achieve a Higher Quality of Life.Novus International, Inc. Health through Nutrition 2009 | 3 6. Vision To help feed the world affordable, wholesome food and achievea higher quality of life.Novus has a clearly defined Vision. Feeding the world over the next fourdecades will require producing more food than in the previous 4,000 years.Satisfying this increasing demand without straining, depleting or pollutingthe earths natural resources will continue to be a complex challenge.It will require innovative solutions in nutrition, combined with a solidcommitment to global sustainability.Mission Make a clear difference in sustainably meeting the growingglobal need for nutrition and health.Our core expertise and experience in health and nutritional researchempower Novus to move toward our Mission.Together, our Vision and Mission form the solid bedrock that supportsHealth through Nutrition.GRI: 1.2 and 3.13 Novus International, Inc. Health through Nutrition 2009 | 5 7. Core ValuesGlobal sustainability is a fundamental imperative at Novus. It is the common denominatorbetween our corporate Vision, Mission and Core Values. As you read the first section of this report, Novuss Background and Sustainable Culture, please note the icons belowthey are meant to provide examples of how we integrate our Core Values into our work each day. Seek excellence fromProvide products with Maximize long-term every employee demonstrable valuecustomer satisfaction Protect our employees, Act with integrity the public and the environmentGRI: 1.2, 3.13, 4.8 and 4.11Novus International, Inc. Health through Nutrition 2009 | 6 8. Novuss Core Values bring our Vision and Mission to life. The Core Values define, in practical terms, how our600-plus employees conduct business with each other, with customers and with other stakeholders. They guide allbusiness strategies, plans and objectives. They shape our companys culture, which begins at the individual leveland carries through to the marketplace.We seek excellence from every We strive to provide products with It is critical that we maximize long-employee. We encourage, expectdemonstrable value. Our research term customer satisfaction. Whetherand support alignment, diversity, focuses on leading-edge concepts,related to products, servicesindividual growth, initiative and and we are committed to supplyingor innovation, we must alwaysteamwork. preferred products and services. anticipate our customers needs and exceed their expectations. We protect our employees,We act with integrity. We treat all These Core Values are of the public and the environment.of our stakeholdersincluding Specifically, we make health, safety employees, customers, suppliers,profound importance to each and environmental considerations a business partners, our owners and Novus employee. They are priority in everything we do.the publicin a fair and ethicalmanner. essential to the way wework each day and toHealth through Nutrition.GRI: 1.2, 2.8, 3.13, 4.8 and 4.11 Novus International, Inc. Health through Nutrition 2009 | 7 9. Each of the preceding Core Values affects the way we measure our progress in terms Critical Success Factors of our triple bottom line of social, economic and environmental (SEE) considerations. They also provide a basis for our four Critical Success Factorsgrowth, profitability, people and reputation. Novuss Critical Success Factors provide the framework for the way we set our business goals and align towards our long-term strategy. GrowthProfitabilityPeople Reputation Continually assess and developImplement improved businessProvide an environment that enablesExpand on our positive image our portfolio of products,processes, measure and employees to bring their full capabilities by initiating and supporting customers and suppliers.support systems that will move to bear with behaviors consistentactivities and programs that Implement performance-Novus closer to our customerswith the Novus Management anddemonstrate Novuss integrity enabling programs and and deliver increased year-Integrity Systems, in accordance withand aspirations to meet technologies to achieve a over-year market value.the Novus Mission, Vision and Core corporate objectives in a long-term competitive position.Values. Promote a safe and healthy responsible, sustainablework-life balance to motivate employeesmanner.to achieve our Novus Three-YearGrowth and Diversification efforts.Long-Term Strategy Supporting Our Long-Term StrategyCritical Success FactorsEvery Novus employee understands exactly what his or her key accountabilitiesare. Each person realizes that these key accountabilities have a direct effect Three-Year Objectiveson Novuss short-term corporate goals, three-year objectives, Critical SuccessFactors and ultimately, our long-term strategy. Short-Term Corporate GoalsEvery person plays a role. And every person has the opportunity and responsibilityto make a critical contribution to the long-term success of our company. Individual Key AccountabilitiesGRI: 1.2, 3.13, 4.9 and 4.10 Novus International, Inc. Health through Nutrition 2009 | 8 10. Our Triple Bottom Line As you read the second section of this report, Novuss Sustainability in Practice, please note the icons belowthey are meant to provide examples of how we integrate sustainability into our work each day. Social EconomicEnvironmental We measure our progress in terms of our triple bottom line: social, economic and environmental (SEE). The products we sell, the way in which we conduct business with stakeholders and our respect for the earths natural resources are all interconnected, integrated and equally important.GRI: 1.2, 3.13 and 4.16 Novus International, Inc. Health through Nutrition 2009 | 9 11. Raindrop, Douglas Auer and Michael Hayes, 2009 Media: GlassNovus commissioned this piece for our global headquarters. It is made of blown glassspheres and volumetric flasks. The materials chosen and the forms created highlight thelink between scientific development and the preservation of the natural world. Novus International, Inc. Health through Nutrition 2009 | 10 12. Novuss Background and Sustainable Culture Novus International, Inc. Health through Nutrition 2009 | 11 13. Novuss BackgroundNovus International, Inc. creates Health throughNutrition products for livestock, pets and people.Novus has employees working in over 90countries, serving more than 2,500 customersworldwide. Based in St. Charles, Missouri, Novushas facilities including corporate offices, researchand development laboratories and manufacturingoperations in more than 35 countries, as well assmaller offices with field staff in an additional60 countries. The organization has annualrevenues approaching $1 billion.Based on ScienceNovus International, Inc. was founded in 1991,but our scientific roots and history originatedover 50 years ago. In the 1950s, St. Louis,Novus revolutionized poultry nutrition through the development of ALIMET, a liquid feed supplement.Missouri-based Monsanto Company beganconducting livestock and poultry feed metabolismstudies. In 1959, one of its products received FDAapproval as an animal feed additive, which helpedlaunch the Monsanto division that would become world affordable, wholesome food. At the time, this Vision statementNovus. In 1991, in an effort to focus on its was considered a bold goal and some questioned how Novuscore businessesseed, herbicide andcould realistically make a contribution. We were a small, business-biotechnologyMonsanto sold its Feed to-business company with two products for the poultry industry,Ingredients division to Mitsui & Co., Ltd. but we understood that Novuss core knowledge of health and(www.mitsui.com) and Nippon Soda Co., Ltd. nutrition related to poultry could be beneficial to other species.(www.nippon-soda.co.jp). The new ownerssaw Novuss strategic potential for growth.Working from a strong base of scientific understanding, we have brought to market more than 100 new products over the past decade. Today theIn our first year, we put into place the Novus product portfolio provides a holistic approach to Health throughcorporate Vision of helping to feed the Nutrition for poultry, cattle, pigs, pets, farm-raised fish, horses and people.GRI: 2.3, 2.4, 2.5, 2.6, 2.7 and 2.8Novus International, Inc. Health through Nutrition 2009 | 12 14. Working Closely with Our Customers Novus is committed to having a genuinelyWe are motivated to contribute to an agriculture industry that is global reach. We connect with our customers equipped to provide nutritious, affordable food to people everywhere at the local level, work with them in their own in the world and to do so through sustainable, responsible practices. communities and understand their needs in a Novus has a culture of sustainability that begins at the individual level meaningful way. Novus customers have theand carries through to the marketplace. We approach our work through unique experience of localized research and the lens of sustainability, and this is a requisite consideration at Novus. development, technical support, customer serviceEvery business project is cross-checked to ensure that our criteria for and logistics. This commitment to working closely sustainability are achieved. with our customers provides Novus with real- time, hands-on knowledge of current and futureThe need for food is projected to grow by 100% over the next four customer needs. decades. We have made great strides as an industry, developing strategies to improve productivity including crop, genetic and nutritional We work with our customers to improve technologies. However, there their business operations through increased is still much work that needs productivity and profitability. Novuss Healthto be accomplished. For through Nutrition programs support healthy, example, we are currently happy animals that are more productive andonly achieving 60% of the generate less waste, reducing their environmental genetic growth potential of impact. Additionally, Novus products protect thebroilers. Technology related nutritional quality of feed and feed ingredients, to nutritional strategies and which are farmers largest operationalbest management practices investments and most important tools forcan close this gap. As the ensuring livestock health.productivity of our industry increases, so does access to The Importance of Agriculture affordable, wholesome food. Novuss history and largest market segment is based in livestock agriculture. The importance...


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