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Novozymes' contribution to the European Green Deal OAuErubriooploegaincacloamnpswaneyr,sw, nitehaar ygoloubal reach Novozymes is the European leader in industrial biotechnology and the biggest producer of enzyme solutions worldwide Enzymes - Numbers and people U' U Enabling Technology Global market share of enzyme products by company Others 7% CHR HANSEN 2% AMANO 6% Economic effects associated with the activities of the European industrial biotech AB ENZYMES 8% DUPONT 18% DSM 8% BASF 3% Source: Guerrand (2017) Novozymes 48% DIRECT UPSTREAM DOWNSTREAM INDUCED TOTAL Employment (FTE) 94,000 269,000 98,000 25,000 486,000 Turnover (B) 31.5 38.6 18.1 4.6 92.8 Value added (B) 8.4 15.2 5.9 2.1 31.6 Source: EuropaBio (2016) Where our products are used AGRICULTURE & INDUSTRIAL BIOSOLUTIONS CONSUMER BIOSOLUTIONS BioAg Animal Health & Nutrition Bioenergy Water Fine Chemicals Detergent Softeners Dishwash Medical cleaning Professional cleaning Grain Milling Oils & Fats Starch & Distilling Textile & Leather Pulp & Paper Baking Dairy Beverages Protein Food Our plans for the future Biodegradable plastics and textiles Enzymes can break down PET plastic used in plastic and textiles to make them biodegradable. With French biotech company Carbios, we are scaling up PET-degrading enzyme production to an industrial scale. Alternative proteins Enzymes enable the rapidly growing alternative proteins industry to create nutritious alternatives to animal products. Enzymes are used in all types of alternative proteins to add flavour, texture, and nutrients. Energy-efficient and non-toxic Carbon Capture & Storage The enzymatic carbon capture process use an enzyme present in the human lung instead of toxic chemicals to extract CO2. It produces no toxic waste, aerosols or contaminants and is more energyefficient than conventional processes. What is preventing us from achieving the Green Deal's goals Enzymes are safe and sustainable, as recognized in EU Ecolabel and other EU legislation. However - they are labelled as "Substance of Concern" because of their respiratory sensitizing properties. This will have a spill-over effect across legislation and is counterproductive to the Green Deal. REACH Regulation Revision Products containing enzymes (e.g., EU Ecolabel detergents) would be restricted under the Generic Approach to Risk Management. Safe and Sustainable by Design " " substance under upcoming framework Textiles Strategy Enzyme use in textile products would be phased out Taxonomy The manufacturing and use of enzymes would not be considered sustainable. In turn - biodegradable plastics produced with enzymes would not be Taxonomy aligned. Ecodesign for Sustainable Products proposal The use of enzymes in many products would be tracked and minimised. Policy asks Exempt safe, biological substances as defined in the Sustainable Use of Pesticides Regulation proposal from the definition of substances of concern Recognize enzymes' role in the green transition by aligning the Taxonomy and Safe and Sustainable by Design initiatives with the role that bio-based solutions provide Remove enzymes from the scope of upcoming regulatory tools (e.g., REACH Regulation - Generic Approach to Risk Management, MAF) to prevent a negative effect on the market 4 Envision a dedicated regulatory framework for bio-based substances in the long-term Thank you