The Science Based Target initiative (SBTi) approves Novo Holdings’ emissions reduction targets

Novo Holdings today announced that its emissions reduction targets have been approved by the SBTi, the leading corporate climate action organisation that assists companies with aligning their emissions reduction targets with climate science. This approval formalises Novo Holdings’ commitment to reduce greenhouse gas (GHG) emission in alignment with the 1.5°C pathway outlined in the Paris Agreement.

As a responsible investor, Novo Holdings recognises its role in actively addressing climate change and is fully committed to making a positive impact through its investments and operations. At Novo Holdings, decarbonisation is viewed not only as a responsibility, but also as a strategic opportunity to create long-term value for its portfolio companies and broader society.

Kasim Kutay, CEO of Novo Holdings, said: “Climate action is essential to human as well as planetary health, and our commitment to science-based targets reflects our focus on planetary health as a core component of our strategy. Setting and achieving these targets contribute to living up to our role as a responsible investor while creating sustainable value across our portfolio.”

Maja Engholm Pedersen, Head of Sustainability & Impact at Novo Holdings, added: “As engaged owners, we have both the opportunity and the responsibility to inspire positive change, especially in tackling a challenge like climate change. We are excited to collaborate with our portfolio companies on their decarbonisation journeys to ensure that we collaboratively create meaningful climate impact.

Novo Holdings’ Science Based Targets (SBTs)

With 2022 as a baseline year, Novo Holdings has committed to the following targets:

Internal operations:

• Reducing Novo Holdings’ operational emissions (Scope 1 and 2) by 80% by 2030. Our direct and indirect operational emissions (Scope 1 and 2) are predominantly the result of operating our offices. We aim to reduce these emissions by sourcing 100% renewable energy.

Investment portfolio:

• Private equity: 70% of eligible private equity portfolio companies by invested capital to set SBTi-validated targets by 2028, reaching 100% by 2030.

• Publicly listed equities and corporate bonds: 94% of the listed equity and corporate bond portfolio by invested capital to set SBTi-validated targets by 2028.

• Real estate: reducing GHG emissions from the real estate investment portfolio by 54% per square metre by 2030 within direct investment and eligible real estate fund portfolio.

• Electricity generation projects: continuing to finance electricity generation projects solely for renewable electricity through 2030.

Portfolio companies:
As an engaged owner and investor, Novo Holdings prioritises advancing decarbonisation in collaboration with its portfolio companies, actively supporting portfolio companies in setting and achieving Science Based Targets through the SBTi. This approach will enable companies to measure emissions, create actionable reduction plans, and formalise their sustainability goals. The target applies to private equity-sized companies in which Novo Holdings has a 25% or greater ownership share.

At Novo Holdings, the SBTi is regarded as a valuable tool for many portfolio companies to meet evolving market demands and enhance their climate resilience.

Sonion, a Danish-based Novo Holdings’ portfolio company, announced the approval of its Science Based Targets today.

Mette Boje-Larsen, SVP General Counsel & Head of Compliance at Sonion, said: "For Sonion, committing to SBTi not only assists us in delivering positive climate impact but has become an important factor in meeting the sustainability expectations of our global hearing aid manufacturing customers.”

Next steps
Following the approval of Novo Holdings’ SBTs, subsequent actions, in alignment with Novo Holdings’ sustainability strategy, are identified. These include:

• Onboarding of new portfolio companies to encourage the establishment of SBTs, and actively support them in creating plans to meet these goals.

• Providing advisory support at key milestones to keep portfolio companies on track with their climate goals.

• Develop sector roadmaps with actionable steps for reducing emissions.

• Facilitate knowledge-sharing to promote best practices among companies.

About the SBTi
The SBTi is a corporate climate action organisation that enables companies and financial institutions worldwide to play their part in combating the climate crisis. SBTi develops standards, tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in line with what is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at latest. The SBTi is incorporated as a charity, with a subsidiary which hosts their target validation services. Its partners are CDP, the United Nations Global Compact, the We Mean Business Coalition, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). www.sciencebasedtargets.org

About Novo Holdings A/S
Novo Holdings is a holding and investment company that is responsible for managing the assets and the wealth of the Novo Nordisk Foundation. The purpose of Novo Holdings is to improve people’s health and the sustainability of society and the planet by generating attractive long-term returns on the assets of the Novo Nordisk Foundation. Wholly owned by the Novo Nordisk Foundation, Novo Holdings is the controlling shareholder of Novo Nordisk A/S and Novonesis A/S (Novozymes A/S) and manages an investment portfolio with a long-term return perspective. In addition to managing a broad portfolio of equities, bonds, real estate, infrastructure and private equity assets, Novo Holdings is a world-leading life sciences investor. Through its Seed, Venture, Growth, Asia, Planetary Health and Principal Investments teams, Novo Holdings invests in life science companies at all stages of development. As of year-end 2023, Novo Holdings had total assets of EUR 149 billion. www.novoholdings.dk

About the Novo Nordisk Foundation
Established in Denmark in 1924, the Novo Nordisk Foundation is an enterprise foundation with philanthropic objectives. The vision of the Foundation is to improve people’s health and the sustainability of society and the planet. The Foundation’s mission is to progress research and innovation in the prevention and treatment of cardiometabolic and infectious diseases as well as to advance knowledge and solutions to support a green transformation of society.