Novo Nordisk

Novo Nordisk is a global healthcare company focused on the discovery, development, manufacturing and marketing of pharmaceutical products for the treatment of diabetes, obesity and haemophilia. Within the company’s diabetes and obesity segment it concentrates on insulin, GLP-1 and other protein-related products as well as delivery systems and needles and oral anti-diabetic drugs. Within the biopharmaceuticals segment, it covers haemophilia care, growth hormone therapy and hormone replacement therapy.

Topic: Diversity, Equity & Inclusion

WHEB’s Objective: Supporting high quality management extends the company’s overall positive impact and long-term success.

Company Objective: To understand decision to remove gender diversity target for North American business segment.

Desired Outcome: We believe that better DEI practices can lead to higher quality management and therefore better decision-making.

Background: Diversity, Equity, and Inclusion (“DEI”), has become a politicised symbol of partisan battles, overshadowing its core purpose of strengthening both organisations and broader society. In the US especially, actions taken by President Trump¹ are forcing companies to retreat on DEI commitments. For example, Novo Nordisk is amongst 200² of the largest corporates to have recently dropped senior management gender diversity targets in the US³.

Activity: We contacted Novo Nordisk’s Investor Relations team to better understand the decision to drop gender targets in the US, particularly as this would contradict the core values of the Novo Foundation.

Outcome:

Milestone 2 – Company shares or agrees to disclose on the issue

Novo Nordisk explained that its decision to remove gender diversity targets for its North American business was driven by evolving legal risks. Specifically, recent U.S. government investigations into DEI practices, initially focused on federal agencies and now extending to the private sector, have raised concerns about compliance with federal regulations. These investigations could potentially jeopardize the company’s eligibility to participate in Medicare and Medicaid programs, which account for over 20% of its U.S. business.

Despite this change, Novo Nordisk remains majority-owned by the Novo Foundation, which maintains strong ESG commitments. The company continues to uphold its DEI initiatives outside the U.S., aligning with the Foundation’s values.

As shareholders, we recognise the importance of protecting the company’s operational resilience and access to critical markets. While the rollback of DEI targets in the U.S. is concerning, we acknowledge the complex regulatory environment and the potential financial risks involved. We will continue to engage with Novo Nordisk to encourage alignment with long-term sustainability goals while navigating these challenges.