Recommendations and declaration of independence and competencies
As part of the assurance process, PricewaterhouseCoopers (PwC) reports observations and recommendations to Novozymes. PwCs recommendations are reported to Novozymes at three levels based on the materiality of the underlying observations: the Board of Directors, Executive Management and local management.
According to the AA1000 Assurance Standard, we are required to include in our assurance commentary recommendations for improvement in relation to Novozymes’ environmental and social performance and reporting. Such recommendations do not affect the conclusions in the assurance statement.
Novozymes has recently expanded its business activities in the enzymes and BioBusiness area to find new applications for its products and technologies. Continual business expansion also takes place via acquisitions and partnerships. In 2007, Novozymes launched the Rethink Tomorrow initiative that includes a strategic priority to use its products and technologies to address global environmental challenges, in particular climate change. In view of this development, we recommend that Novozymes:
Declaration of independence and competencies
The AA1000 Assurance Standard requires us to make a statement with respect to our independence of Novozymes A/S and our qualifications for undertaking the assurance engagement. The scope, the basis of opinion and our conclusions are presented in our assurance report on Novozymes A/S’ Annual Report 2007.
Our assurance team possesses the requisite skills and experience within financial and non-financial assurance, sustainability management, social and environmental issues as well as industry-specific knowledge to undertake this assignment. Our assurance team has been drawn from our Sustainable Business Solutions team, which comprises individuals with an educational and professional background within areas such as financial and non-financial auditing and reporting, environmental engineering and management, corporate sustainability management, communication, business, the natural and social sciences, as well as from our financial audit services department.
As financial auditors of Novozymes A/S, we are required to meet the independence requirements of international professional standard setting and national regulatory bodies. In addition, PricewaterhouseCoopers’ own Global Independence Policy, which in some areas exceeds those of international professional standard setting and regulatory bodies, is applicable to the firm, the partners and its professional staff, including all members of the assurance team. In general, we conduct business without any financial interests in, or personal or business relationships with our audit clients and their affiliates.
Gladsaxe, 24 January 2008