2009 Novus Sustainability Report

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1.Health through Nutrition2009 Sustainability Report2. 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 of achieving our Vision comes full circle when you consider the growing demand for food on our planet. Meeting this need can only be achieved through the technological innovation of companies like Novus.GRI: 2.7Novus International, Inc. Health through Nutrition 2009 | 13 15. Health through Nutrition Our products and programs offer Health through Nutrition. Every day, the collective efforts of our employees are focused on achieving a higher quality of life, for animals and people, through nutrition. Our heritage and core strength is science, which will always be the bedrock from which we continuously innovate. Today Novus employs over 150 scientists more than a quarter of our entire employee populationwho have attained a Ph.D. or Masters degree in animal science or a Doctorate of Veterinary Medicine. The dedication of these employees builds on our many years of experience in animal nutrition, and continually strengthens our core competence in scientific research and innovation. Novus scientists work in laboratories around the world, including Brazil, China, Vietnam and the United States. By establishing research facilities at the local level, where our customers live and Slides, Julia Dibner, Cell Biologist and Photographer work, we are able to better understand and serveDavid Burt, Artistic Director, 2009 their needs. Media: Digital Photography Cells from the organs and bones of animals were prepared and stained for scientific analysis, Our entire organization is oriented towards then photographed microscopically. The artists then isolated forms and compositions present collaborative innovation. Novus continually in the images, and cropped and manipulated the photographs to create a finished piece. expands our global partnership network of universities, non-governmental organizations (NGOs) and industry associations. Through these relationships, we engage in joint research projects with students, professors and subject matter experts to adapt best-in-breed solutions for local challenges.GRI: 2.7Novus International, Inc. Health through Nutrition 2009 |14 16. A Standard for SustainabilityMajor Milestones Novuss first product defined a standard for sustainability for the more than 100 products that the company has since developed. ALIMET feed supplement was first introduced toIn 2009, we celebrated the 25th anniversary the poultry industry by Monsanto in 1979. The product helped farmers feed their animalsof ALIMET production at our facility in more efficiently, enabling them to raise healthier chickens while lowering feed costs. Chocolate Bayou, Texas, and the 50th Thanks to ALIMET, farmers were more productive, more profitable and better able to anniversary of SANTOQUIN, the first provide the world with greater quantities of wholesome food at an affordable price.feed additive approved by the FDA. ALIMET also helps animals digest feed more efficiently, which has important benefits toThese two livestock feed additives have the environment. Nitrogen, a chemical component in animal waste, is a pollutant to bothhelped improve animal health and enhance land and water. Poultry fed ALIMET produce waste with lower nitrogen levels. ALIMETbusiness operations for producers around demonstrates that a leap forward in agricultural productivity can be achieved withoutthe world for many decades. increased strain on the environment. Additionally, as a liquid methionine source, ALIMET helps feed mills operate moreOver the last 25 years, we have grown the efficiently, reducing energy requirements. The organic acid effect of ALIMET, particularly ALIMET production facility in Chocolate in combination with other organic acids, is successful in reducing harmful bacteria, Bayou into the largest liquid methionine such as Salmonella, in feed. manufacturing plant in the world. Novuss nutrition solutions for the poultry industry resulted in dramatic productivity SANTOQUIN helps farmers get the increases that are one of the great agricultural success stories of our time. In the nextgreatest return on their largest operating wave of innovation, Novus research scientists discovered ways to apply our companys investments: feed and feed ingredients. core expertise in health and nutrition to other animal species and industry segments.SANTOQUIN protects feed from the They found ways that other animals could benefit from Novuss insights into poultrydamaging effects of oxidation, which is nutrition, leading to a range of products that bring Health through Nutrition to cattle, beneficial to animal health and to farmers pigs and farm-raised fish. sustained business operations. Our extensive experience with production livestock has proven to be equally important to The quality of feed ingredients has a direct improving the health of pets and their owners. Novuss Arenus division offers nutrition and measurable impact on the health of solutions for dogs, horses, ornamental fish and birds. Arenus delivers products throughanimals. Animals who are fed a quality diet, retail channels directly to pet-owner consumers, creating a business-to-consumer salesbalanced with the proper levels of amino channel that supplements Novuss primary business-to-business sales model.acids, have a lower incidence of health Novus recognizes that many of the challenges faced in animal health and nutrition arechallenges and are more productive. similar to the challenges we face as humans, such as increasing bone strength, reducing joint-related lameness and building lean muscle mass. So we applied our core expertise to the area of human nutrition, and in 2009 launched Stratum Nutrition, which offers a range of specialty and functional ingredients to the food supplement, food and beverage industries.GRI: 2.7Novus International, Inc. Health through Nutrition 2009 | 15 17. Sustainable Culture Novuss company culture of global sustainabilityWhen a holistic system functions at optimum efficiency, is expressed through three basic principles:output is maximized and waste is minimized. Taking an integrated viewpoint is characteristic of a Novus-style solution. This point of Maximize Output, Minimize Waste view takes into consideration not only the intended result, but also Collaborate by Sharing Informationthe by-product of that result. As part of our culture, we strive to Local Solutions for a Global Marketplaceconduct our work in ways that minimize our environmental footprint. Novus products are geared towards maximizing output and minimizing waste. Leveraging a broad product portfolio, we take a comprehensive approach to optimizing the health of animals. This approach maximizes farmers outputs, fortifies livestock against disease and ultimately leads to the production of higher quality food. Novuss Health through Nutrition programs support healthy, happy animals who generate less waste for the environment and are more productive. On June 3, 2009, the Governor of the State of Missouri, Jay Nixon, along with 450 other guests, participated in a ribbon release ceremony, commemorating the opening of Novuss Platinum LEED Certified global headquarters facility. Platinum LEED is the highest energy and environmental designation available in the U.S.GRI: 2.7 Novus International, Inc. Health through Nutrition 2009 | 16 18. Sustainable CultureAt Novus, sustainability begins at the individual level and isevident in the daily activities of each employee. It is demonstratedin the way that employees put into practice our collectiveaspirations, Novuss Mission, Vision and Core Values. Novus International, Inc. Health through Nutrition 2009 | 17 19. Collaborate by Sharing InformationNovuss culture is shaped by the spirit of discovery andinnovation on which our rich history is based. Our collaborativework style encourages the open flow of information amonga community of colleagues who share common interests inscientific progress and improving the markets we serve.At Novus, a collaborative approach is also typical of ourrelationships with customers. We freely share our industryknowledge with customers in an open dialogue about theirmost important business challenges. We consult with them toChief Sustainability Officerdevelop innovative solutions that meet their specific needs. Joyce Cacho, Ph.D.Our open culture is also reflected in the relationships wehave developed with students and professors at universitiesaround the world. We have something to learn fromeveryone and, in turn, we want to share all that we can.Our office and meeting spaces are open to encourage discussion This past year, we formalized our commitment toand collaboration. People know each other on a first-namesustainability at Novus, adding the role of Chiefbasis and respect one another as individuals. This sustainabilitySustainability Officer. In January 2009, Novusreport to stakeholders, Health through Nutrition, is another welcomed Joyce Cacho, Ph.D. to coordinate andexample of Novuss commitment to sharing information openly. synergize our sustainability efforts. Cacho leads the planning and implementation of Novuss globalLocal Solutions for a Global Marketplace corporate social responsibility program and initiatives. Her extensive background in managingAt Novus, we place a high priority on understanding our customers international agribusiness initiatives and projectsneeds and believe that living and working in their specificwith The Corporate Council on Africa (CCA) and U.S.geographies are key to building this knowledge. Additionally,International University (USIU) have prepared her towe have found that working directly with our customers, globally,lead Novuss sustainability efforts around the globe.is a critical differentiator for Novus in our industry. For thesereasons, we are committed to having a genuinely global reach.Novus customers have the unique experience of localizedresearch and development, technical support, customerservice and logistics. We understand that our customers needsvary based on their location in the world. Local resourcesenable us to provide support with agility and in a way thatbrings demonstrable value to our customers businesses.Novus International, Inc. Health through Nutrition 2009 | 18 20. Corporate Governance StatementCorporate governance at Novus is the The Novus Compliance Committeeresponsibility of the Board of Directors. In 2005, the Board chartered the Novus Compliance Committee (NCC),The Board represents the interests of comprised of all members of Novuss senior management team as well asour shareholders and stakeholders, including shareholder representatives. The purpose of the NCC is to review and evaluateemployees, customers and the public. The Board, compliance issues and concerns throughout the organization. It also focuseswith the advice of the executive management on prevention, detection, response and security and proposes actions for theteam, determines the companys long-term continuous improvement of Novuss business management and operations.strategy, while the Novus management teamdefines the companys short-term strategies The matters within the scope of the NCCs review include all legal andand handles day-to-day business operations. regulatory matters that affect or may affect Novuss operations worldwide. It also oversees conformity by Novus with the requirements of organizationsThe Novus Integrity System in which the company maintains memberships and with standards,In 1998, the Board approved and adoptedpolicies or programs to which Novus subscribes. The NCC managesthe Novus Integrity System (NIS). The NIS is compliance issues and reports to the Board on a periodic basis.comprised of written policies to ensure that allemployees understand that good ethics and goodbusiness are synonymous when viewed frommoral, legal and practical standpoints.The NIS is reflective of the Boards commitmentto corporate and personal integrity, and promptsevery employee to conduct the businessof Novus within an ethical framework.GRI: 3.13, 4.1, 4.3, 4.4, 4.6, 4.8, 4.9 and 4.11 The Novus Board of Directors Meeting in Tokyo, Japan| 19 21. Novuss Global HeadquartersOur new 90,000 square-foot (8,361 square-meter) encourage communication and collaboration among employees. Aheadquarters is Platinum LEED certified, thefloor ventilation system allows employees to adjust the temperaturehighest energy and environmental designationof their personal workspaces. The facility includes a fitness centeravailable in the United States. It is the fourththat is open to employees at no charge and also offers employeesbuilding in Missouri and one of only 150 in the free fitness classes and training. The company allocates reservedentire United States to achieve this distinction. parking spaces close to the building as an incentive for employeesto carpool or to drive low-emission or fuel-efficient vehicles.In recognition of our design and building efforts,in 2009, Novus President and CEO, Thad Simons,Novus provides employees with wholesome, healthy lunches atwon the Heroes of the Planet award forno charge each day. Lunch menus for the Novus Caf are plannedSustainable Employee Programs. This award by a licensed nutritionist and are low fat, low sodium and portionrecognizes the achievement of a company thatcontrolled. Employees benefit by learning about good nutrition,has outperformed its industry in promoting andhaving healthy options to eat for lunch and many have evenadvancing environmental sustainability. reported weight loss. Novus benefits because employees stayon-site to eat their lunches, eliminating the commute time to andThe building has multiple skylights that provide an from restaurants. Additionally, employees collaborate with oneoutdoor view and natural light to 90% of employee another over their lunch breaks in the Novus Caf, which is greatworkspaces. The open floor plan is designed tofor our culture and for advancing the goals of our organization.Our headquarters has a wide range of green features, including5,000 square feet (464 square meters) of solar panels, a storm watersystem, bamboo floors and energy-efficient flat screen televisionsin community areas.The facility was built out of materials derived from rapidlyrenewable, recycled and salvaged resources. Additionally, wehave incorporated native Missouri flora into our landscaping. Weare also working with the Missouri Department of Conservation tocreate habitats on our property for wildlife, including birds, reptilesand fish.GRI: 2.9; KPI: EN3 and EN26 Novus International, Inc. Health through Nutrition 2009 | 20 22. As a company, we believe that our commitmentto global sustainability begins at home.Dr. Giovanni Gasperoni, Executive Vice President, Marketing and SalesGRI: 2.9; KPI: EN3 and EN26 Novus International, Inc. Health through Nutrition 2009 | 21 23. Sustainability in PracticeWe approach our work through the lens of sustainability, a requisite consideration at Novus.Every business project is cross-checked to ensure that our criteria for sustainabilitysocial, economic and environmental (SEE)are achieved.Novus International, Inc. Health through Nutrition 2009 | 23 24. Corporate Social ResponsibilityNovus employees are integrated into the fabric Novus has direct relationships in more than 90 countries on six continents withof the communities and countries in which we customers, suppliers, consumers, students, teachers and neighbors. We believelive and work. Ultimately, we are all citizens our diverse employee base and inclusive work environment are essential toof the planet and the natural environmentinnovation and central to how we differentiate ourselves in the marketplace.that provides the basic resources that fuelour businesses and sustain our lives.We are an equal opportunity employer, committed to the hiring, advancement and fair treatment of individuals without regard to race, color, religion, gender,For Novus, Corporate Social Responsibility sexual orientation, age, national origin, ethnicity, disability, veteran status or(CSR) begins with a commitment to and by eachany other status protected under federal, state or local law. We comply withindividual employee. Each employee bringsthe law, but mere compliance is not our motivation. We aspire to a highera unique perspective and knowledge to thestandard, based on a deeply-rooted sense of integrity and social responsibility.companyskills, talents and experiencethat are the essential elements of the valuewe are able to deliver to the marketplace. Each year, NovusCSR at Novus is not charity work oremployees volunteer their time, in partnershipa contribution. It is the way we engage with the United Way, towith the world around us to develop the support organizationsrelationships that can make a long-term, such as the St. LouisArea Food Bank.positive impact. CSR at Novus is abouttaking the responsibility and concertedaction to seek out synergistic collaborations.Giving a charitable donation to an organizationor funding the construction of a building at auniversity are finite activities. Building synergisticrelationships requires a commitment and aninvestment of time, but the positive effectsare ongoing. Relationship building is theNovus approach to CSR.To learn more about the CSR activities of our parent companies, please visit Mitsui CSR report: www.mitsui.co.jp/en/csr/report/index.htmlNippon Soda annual report: www.nippon-soda.co.jp/e/index.htmGRI: 2.5Novus International, Inc. Health through Nutrition 2009 | 24 25. Employee DevelopmentAs a knowledge-based company, we recognize that ourgreatest return on investment in employees comes from ouremployee development programseducation and training.The next few pages provide examples of the manydevelopment programs we offer at Novus. Green TeamThe Novus Management System Our Green Team is a volunteer-based employee teamAll employee development at Novus is rooted in the responsible for integrating environmentally sound practicesNovus Management System (NMS)a living set ofinto our day-to-day activities at Novus. From office supplies toprinciples that guide us in most effectively structuring,recycling, the Green Team helps us live our Mission by engagingstaffing and managing our organization.in and providing education about environmental conservation. Activities of the Green Team include:Among the tenets of the NMS are honesty, respect and fairness.Novus managers have many difficult decisions to make, andNature Conservationoften there are no clear answers. NMS principles help guideGreen Team members address site-specific opportunitiesour decision-making process so that we keep these tenets into improve Novuss footprint on water, soil and energymind, always striving for trustwhether between managers conservation.and subordinates, or throughout the organization as a whole. Community InvolvementThe Novus Online Learning System Our Team collaborates with organizations that are working toThe Novus Online Learning System is a comprehensiveimprove our local communities, including Habitat for Humanitytraining resource that is available to every Novus employee. and the Missouri Department of Conservation.There is a wide range of online training available, includingmodules based on the Novus Management System, theGlobal EngagementNovus Integrity System and our products and markets. Novus Green Teams are currently being established at our facilities throughout the world.In addition to modules that are specifically about Novussbusiness, the system also provides a wider selection ofprofessional development tools, including foreign languagecourses from Rosetta Stone and value-added sales training. Novus International, Inc. Health through Nutrition 2009 | 25 26. The Novus Speakers SeriesVideo Diaries and PodcastsThe Novus Speakers Series creates opportunitiesMore and more, we are using technology to share information, learn andfor our employees to become better informedstay connected globally. For example, when our EVP, Marketing and Sales,about issues affecting their communities and our Dr. Giovanni Gasperoni, recently visited Kenya, he captured photographsindustry. Speakers from both inside and outsideand maintained a video diary to document the trip. To share his experiencesthe company address employees. One of our goalswith his fellow employees, he posted the media to NovusConnect, so thatfor this program is to capitalize on the diversity all employees would have the opportunity to learn firsthand about theof our workforce by fostering opportunities forsignificance of our work in Africa.employees to learn from one another.Speakers over the past year have includedrepresentatives from the United NationsAssociation, Habitat for Humanity,Stray Rescue, Missouri Department ofConservation and the United Way. We postvideocasts of the Novus Speaker Series on ourcompany intranet, NovusConnect.NovusConnectThrough NovusConnect, we provide theopportunity for all employees around theworld to learn and collaborate with oneanother. NovusConnect serves as a centrallocation for sharing information, fromresearch data to corporate forms, in anorganized and searchable environment.NovusConnect also provides a variety of toolsto support global communication, such asannouncements, alerts, presentation librariesand MySites (our version of Facebook). Thesetools allow employees to share information about More and more, we are using technology to sharethemselves and access information about otherpeers in the organization. Novus employees can information, learn and stay connected globally.create blogs, join discussion forums and usea survey center to create polls about mattersimportant to their roles in the organization. Novus International, Inc. Health through Nutrition 2009 | 26 27. The Novus Art Program All HandsThe Novus Art Program provides our employees an opportunity to select Each quarter, Novus gathers for an all-handsart created by living artists in their local regions, without any restriction oncommunications meeting. These meetings includethe artists medium or subject of choice. The pieces selected by employeesupdates from various departments across theare then displayed at our global headquarters in St. Charles, Missouri. organization and typically feature presentations byour personal trainers, nutritionists and Green Team.To date, our collection includes pieces from Brazil, China, Haiti, theAll communications meetings are video recordedUnited States, Vietnam and Zimbabwe. The program gives our employeesand available for viewing by all Novus employees,the opportunity to appreciate the diversity of our global culture. At Novus,globally.we value art and its contribution to our shared humanity.Special EventsAs part of the Novus Art Program, we host a fundraising campaign andevent each year to support the Arts and Education Council. As part of thisNovus hosts a variety of special events for employeescampaign, we host the Annual Novus Art Walk. Last year, more than 20each year. For example, this past November, welocal artists showed and sold their work at the Art Walk. More than 300 hosted a Healthy Thanksgiving at our headquarterspeople attended this festive event at our global headquarters and enjoyed for all employees and their families. The eventart, live music and food. featured many traditional Thanksgiving delicacies,such as stuffing, cranberry sauce and mashedThis past year, we added an potatoes, but with a healthy preparation (low fat, lowArts component to the Novus sodium, portion controlled). As a special gift, NovusGlobal Scholars Program. Ourgave families a copy of a cookbook featuring manyfirst recipients will be dancersof the dishes prepared for the event.in the St. Louis Ballet. Each year,the St. Louis Ballet recruits Snapshot Newslettertop-quality talent based onartistic merit. The Novus program Novus provides education on health, nutrition andwill help support the livingsustainable practices for everyday life to employeesexpenses of these talented artists. through many platforms. For example, we send theAll dancers from the St. LouisNovus Snapshot newsletter to each employee on aBallet give back to the community monthly basis. The Snapshot provides educationalthrough education programsinformation on current events both inside Novusfor local children. Additionally, and the industries in which we work. Each issueNovus will sponsor the creation also includes a healthy recipe provided by Novussof a modern dance piece that will approved nutritionist.be part of the St. Louis Balletsupcoming performance season.A Nice Day, Zhou Renkang, 2009 (China)Media: Chinese Brush Painting on Rice PaperNovus International, Inc. Health through Nutrition 2009 | 27 28. Sustainability Projects Around the WorldWe encourage our employees, in each region of the world, to seek out Latin America Northand engage in sustainability programs. We invite you to read about a Agriculture producers experience various nutritional challenges,few of these over the next few pages.often highly specific to their local conditions and production infrastructure.Latin America SouthThrough a partnership with industry leaders in the state of Alagoas, To help address the challenges of our customers in LatinBrazil, Novus is working with more than 1,000 family farmers to create America, we constructed a manufacturing plant in Mexico City.and improve sustainable farming systems. Novus has partnered This facility allows us to offer our Latin America North (LAN)with local government leaders, Globoaves (Brazils largest producercustomers smaller product packages and custom blends orof day-old chicks and fertile eggs for the production of broilers andpremixes. These blends include a variety of products such aslaying hens) and Sebrae (a small business development organization)MHA, MINTREX and AGRADO. Through the use of Novusto offer poultry farmers a way to improve their quality of life. We areblends and premixes, our customers can address specifictransferring our experience in poultry nutrition and animal husbandryproduction challenges by purchasing smaller quantities ofto help the farmers produce more affordable protein. The goal is tomultiple products in one package. These smaller-quantityexpand this program to reach 16,000 families within the next five years. packages also provide savings for our customers in terms ofFor more information, visit www.alimentos-en.globoaves.com.brtransportation and warehousing costs. Our carbon footprintand www.sebrae.com.bris reduced, as products are produced locally in appropriateChinaquantities, and transportation distance is drastically reduced.The Novus Graduate Scholars Program (www.novusscholars.com)Africaengages eight agricultural universities in China. Each year, a panel Smallholder agriculture is fundamental to the economic growthof Novus judges chooses four post-graduate students from eachof emerging markets. From our experience, we know thatuniversity to receive a monetary scholarship that partially funds thesmallholder farmers have the power to produce the food thatstudents educations. One scholar from each university is invited to our is needed in the these regions and that access to affordableinternational research center in St. Charles, Missouri to learn about thelivestock inputs and technologies is essential. In Africa, moreglobal agriculture industry and to partner with our scientists on research than 70% of the population earns their livelihood throughrelevant to their local market needs. Our purpose is to encourage strong farming. Most of these are smallholder farmers who areresearch programs and help the students develop an international dependent upon unreliable rains and an uncertain agriculturalperspective on agriculture. Additionally, through this program, we havestructure.developed a network of technical collaborators in China.North-West Agriculture & Forestry University www.nwsuaf.edu.cn One of our goals in Africa is to provide smallholder farmersSichuan Agricultural University http://202.115.176.32with accessible livestock solutions to better feed their familiesHuazhong Agricultural University www.hzau.edu.cn/enand increase their incomes. By providing education and HealthNorth-East Agricultural University through Nutrition solutions for their livestock, farmers will www.chinatefl.com/heilongjiang/teach/neau increase their productivity and have more products to sell atChina Agricultural University www.cau.edu.cn market. This additional income can be used to feed their familiesNanjing Agricultural University www.njau.edu.cnmore nutritious food, pay school fees, health expenses andZhejiang University www.zju.edu.cn purchase additional livestock.South China Agricultural University www.scau.edu.cnGRI: 4.17| 28 29. Asia PacificAsia Pacific is one of the most aquaculture-dependentregions of the world, from the standpoint of economicdevelopment and food supply.The aquaculture and livestock industries rely heavily onthe use of fish meal, which is derived from wild, ocean-caught fish. However, fish meal is an unsustainable andincreasingly expensive source of protein for agriculturesupplementation.Our team in Asia Pacific has implemented a fish mealreplacement program that we employ to offer customersa significantly lower cost of feed with optimized animalperformance. The program supports amino acid balance,animal health and meat quality. It is environmentallyfriendly, because we substitute a significant percentageof fish meal and minimize the impact of fish caught wildfrom our oceans for this purpose. Novus works with feed mills inEurope Africa that support the work ofAt Novus, we place an emphasis on the sustainability smallholder farmers.of our solutions for our customers. In Europe, we havedeveloped a program that optimizes the feed millingprocess by using a surfactant.The program utilizes our SURFACE product to improvethe efficiency of the feed production process. Feedproduction can be an energy-intensive process,especially for those using granulators or extruders.Customers using SURFACE in their feed mills haveexperienced a 10% reduction in energy consumptionwhile increasing the output of their presses. This programimproves the mills efficiency, reduces the impact on the In Alagoas, Brazil, Novus is working with more than 1,000 familyenvironment and increases feed production. farmers to create sustainable farming systems.GRI: 4.17 Novus International, Inc. Health through Nutrition 2009 | 29 30. Novus Scholar ProgramsTalent Sustainability ChinaMeeting the global demand for food in the futureNovus provides four graduate scholarships at the eight leading agriculture-based universities in China, with students eventually traveling to our corporatewill require people who are willing to dedicate their headquarters to participate in an internship program.careers to the agriculture industry. At Novus, wework to attract and develop new talent, not only forThe Novus Research Fellowship in China supports the development ofinternationally competitive research programs for promising young scientistsour company, but for the benefit and advancementspecializing in the field of animal nutrition and health.of the entire industry.IndiaNovus Scholar ProgramsOur partnership with Bombay Veterinary College (www.mafsu.in) links thescientific talents of Novus with one of the most established veterinary institutionsThrough various Novus Scholar Programs, we awardin Asia. This provides an important opportunity for collaboration that is mutuallybeneficial, while encouraging the continued growth of agriculture-related studiesscholarships to support the research and work ofin the region.students and professors who are and will be industryleaders in agriculture. In addition to funding theirKoreastudies, we also seek to build relationships with these In 2008, we established a partnership with Pukyong National Universitys (PKNU)College of Fisheries Sciences (www.pknu.ac.kr) in Busan, Korea. ThroughScholars and offer opportunities for many of thethis program with PKNU, we are supporting aquaculture students who haveparticipants to work with us as interns in our research demonstrated promise in areas associated with nutrition, metabolism, growth,facilities around the world. We can learn from theirdevelopment, health and disease in aquaculture.research and they can benefit from our industryMozambiqueexperience and relationships. In some cases, theseLast year, we became the first private-sector company to sponsor the AfricanScholars become Novus employees, customers or Women in Agricultural Research and Development (AWARD) programsuppliers.(www.genderdiversity.cgiar.org), which seeks to advance the careers of Africanwomen. We invite you to learn more about the AWARD program in the CivilSociety section, later in this report.Goals for the program include:Thailand Encourage students in animal agriculture to In 2009, we established a relationship with the Department of Animal Science,develop strong research programs and gain Faculty of Agriculture at Kasetsart University (www.ku.ac.th) in Thailand, wherean international perspective on agriculture.we award a scholarship to a student working on a Masters degree in PoultryNutrition. This student is also given the opportunity to participate in an internshipat our research headquarters. Build relationships with professors and students whoare and will be the future leaders in agriculture.VietnamIn 2008, we funded the construction of a 1,000-square-meter Aqua ResearchFacility at Nong Lam University Campus in Ho Chi Minh City. We fund two Establish a technical collaboration network scholarships through this program.to help us develop solutions relevant to ourcustomers in diverse regions of the world.United StatesAt the University of Arkansas (www.uark.edu), we have endowed a Chair inPoultry Science. The professor appointed to that Chair works with visitingscientists from other universities throughout the world and teaches graduate-level courses related to nutrition and metabolism.At Auburn University (www.auburn.edu), we award a scholarship to aGRI: 2.9 and 4.12 graduate student and provide that student with a paid internship at Novus.| 30 31. Career Development and Placement ProgramsNovus Matching Gift Program We actively engage with organizations, industry andIn addition to volunteering time to non-governmental organizations, our academia to support the career development of talented employees also make financial contributions. To encourage our employees students and develop channels for recruitment. to become engaged in civil society and to give back, we have establishedthe Novus Matching Gift Program. Through this program, the companymatches, dollar-for-dollar, contributions to qualifying local and global causes.Below are a few examples of organizations that have received support from the The mission of the Missouri Colleges Fund is to acquireNovus Matching Gift Program: resources to help educate students in member private liberal-arts colleges and universities, comprised of a 16-school network. Novus has established science-specific scholarships within the fund. During our two years of program participation,Meds & Food for Kids (MFK) is a St. Louis based non-profit organization with operations in Haiti since Novus has hosted a Science Day for scholarship 2003. In response to the earthquake in Haiti, Novus partnered with MFK to help raise donations and participants. On Science Day, students are introduced to distribute Medika Mamba, a fortified, peanut-butter-based, ready-to-use-therapeutic food (RUTF) a variety of people working in diverse occupations acrossto people left hungry after the disaster. For more information on MFK, visit www.mfkhaiti.org our organization and other participating area companies.Heifer International helps people change their lives from a state of hunger and poverty intoself-reliance and hope. They provide gifts of livestock and training, helping families improve Novus has aligned with Texas A&Ms agribusiness department their nutrition and generate income in sustainable ways. For more information on to establish a joint career placement program. Over the past Heifer International, visit www.Heifer.org year, Novus has collaborated with Texas A&M to provide full-time employment to five graduating students.Novus employees went the extra mile for our 2009 United Way Annual Giving Campaign. We achieved110% of our goal with an overall participation rate of 87%, with 100% participation from our Little Rockemployees. Novus employees volunteered their time to work at the St. Louis Area Food Bank, wherethey packaged more than 6,000 meals for the hungry. For more information on the United Way, visit IFAMAs mission is achieved through providing memberswww.unitedway.org with multiple vehicles for information sharing, knowledge advancement, discussion and debate, networking and career development. IFAMA has established a global network of academic institutions that have agribusiness or related departments. Students are invited to presentThe Arts and Education Council (AEC), through donations, supports more than 80 non-profit arts andarts education organizations. Every year, the funds generated by the AEC provide more than five million research about agriculture technology and best practicechildren and adults the opportunity to experience music, theater, dance, film, literary arts, visual arts management at IFAMA conferences around the world.and outreach programs. For more information on the AEC, visit www.keeparthappening.orgFor a complete listing of Novus Matching Gift Program recipients, visit page 81 in the Appendix.GRI: 4.12 and 4.17|31 32. Communitymust leave school or the workforce, and are not in a position to return until Our Vision for sustainability is global. But inlater in life. Because the AWARD program has no age restriction, participating our global reach, we touch specific cities and women have the opportunity to re-engage in and add value to the industry in countries in which we live and work. Reflectingmeaningful ways. our triple bottom line, our employees engage with their communities at multiple levelssocial, My goal is to help Mozambiques farmers produce more poultry economic and environmental (SEE). Novusat a lower cost, raising incomes and increasing food security. supports employees engagement in their Mena dos Anjos, Novus AWARD Fellow communities through many programs.We have committed ourselves over the next five years to ten externships, Civil Societythrough which African women will work at our headquarters, another Novus collaborates with partners in civil societyNovus facility or with one of our partner organizations such as the Missouri whose work aligns with the Novus Vision, Botanical Garden. Participants will receive mentoring to help them move to Mission and Core Values. We invite you to read the next level in their education. about some of these dynamic and collaborative relationships over the next few pages. In October 2009, we welcomed our first AWARD research fellow,Mena dos Anjos, a Senior Lecturer in Animal Nutrition at the Universityof Mondlane in Mozambique. Mena holds a Master of Science degree inVeterinary Medicine with a specialization in poultry production and healthfrom the Royal Veterinary and Agricultural University in Denmark.Mozambique is heavily dependent on poultry production. In fact, more than Economic opportunity for women in Africa is a matter of70% of rural families in Mozambique keep chickens, which contribute to social justice. Almost 80% of the agricultural labor force income and food security. The cost of poultry feed is a challenge for the in Africa is female, but only 10% to 15% of the continentspeople of Mozambique. Mena is working at Novus on a project to enhance agricultural students are female. Last year, Novus locally available dried peas to create a more feasible and low-cost feed became the first private-sector company in the Unitedalternative for poultry. She is collaborating with researchers at Novus to States to sponsor the African Women in Agriculturalunderstand the nutritional balance requirements when utilizing these locally Research and Development (AWARD) program and the available ingredients. first organization to host a U.S. placement of an AWARD fellow. AWARD seeks to advance the careers of AfricanWhen she completes her program here, Mena will return to her academic women in agricultural research.position in Mozambique. She will try to attract more young people fromMozambique to animal nutrition research, and she will apply the research There is no age restriction for the AWARD program. Thisshe worked on at Novus. Her goal is to help Mozambiques farmers produce is important because the majority of similar programsmore poultry at lower cost, raising incomes and increasing food security. restrict participation to women 35 years or younger in age. Due to family responsibilities, many African womenFor more information on AWARD, visit www.genderdiversity.cgiar.orgGRI: 4.12, 4.15, 4.16 and 4.17 Novus International, Inc. Health through Nutrition 2009 | 32 33. milk dependency of calves and enables farmers to bring milk to market.Additionally, farmers gain the ability to raise healthier and more productivereplacement heifers.To improve cattle nutrition in Uganda, our scientists developed a dry seasonsupplement that also adds essential minerals and feed quality ingredients to Every country in Africa has unique locally available protein and energy sources. livestock industry challenges that require specific solutions. We are planning to test both programs in additional regions of Africa in thenear future. In Kenya, a challenge for farmers is calf mortality. A cow provides a single source of income for many Kenyan families. If a familys calf lives, it can support them in achieving a sustainable income. Calf mortality impairs the farmers ability to produce a steady income from selling dairy cows and supplying their local communities with dairy products. In 2009, our President and CEO, Thad Simons, was elected to the Board of Ugandan farmers struggle to provide adequatethe Corporate Council on Africa, which has the goal of improving social and nutrition to their cattle during the dry season.economic conditions for the people of Africa by strengthening business In Uganda, longer dry seasons and the increased relationships between African countries and the United States. use of marginal land are compromising health and reducing the production of cattle.It is critical that we empower African nations and farmers, through knowledge sharing and technology, to build the capacity to meet their own requirements for In 2009, a team from Novus traveled to Africa tofood. The continent of Africas demand for food is expected to greatly increase identify the priorities in these two countries andin the first half of this century. Our involvement with the Corporate Council on to determine how we could contribute. The Novus Africa is one way to collaborate with African farmers and facilitate an exchange team met with officials of the Nairobi-based ILRI of knowledge. and East Africa Dairy Development (established by Heifer International). After investing time in In the fall of 2009, Novus chaired two panels at the Corporate Council on Africas both countries to understand the challenges and Biennial Summit. The panelists discussed aquaculture and the role of education circumstances, we engaged our R&D scientistsand technology in agriculture. to work towards solutions. For more information about the CCA, visit www.africacncl.org To address calf mortality in Kenya, we developed a nutritionally complete diet that reducesGRI: 4.12 and 4.17 Novus International, Inc. Health through Nutrition 2009 | 33 34. Balancing the Agricultural Bottom Line The WAF, in cooperation with Novus, hosted the first Asia Regional Roundtable on March 8-10, 2009, in Phuket, Thailand. The theme of the Roundtable, Balancing the Agricultural Bottom Line, focused on the global and Asia-specific economic impact of the global recession on agriculture. Roundtable attendees were encouraged to discuss the case for creating strategic alliances in the food chain, sustainable practices for agricultural growth and the new paradigm in consumer requirements and food demand. The World Agricultural Forum (WAF) is a policyMore than 75 people from 19 different countries participated in the event. neutral and internationally inclusive agriculture and Attendees included government officials, CEOs, academia, NGOs and farmers. agribusiness-driven forum that brings together leaders from private sectors with policy makers and key policyNovus, along with three other participating organizations, presented the influencers to focus on providing food, fuel, fiber and insights and discussed highlights from the event at the WAFs Sixth Biennial water to the worlds growing population.World Congress on May 18-20, 2009, in St. Louis, Missouri. Based on the success of and interest in the Regional Roundtable model, the WAF plans to For more information about the WAF, visit host future roundtables over the next year in Brazil, China, Uganda and India. www.worldagforum.org More than 75 leaders in agriculture from 19 countries attended the first World Agricultural Forum Asia Regional Roundtable, Balancing the Agricultural Bottom Line.GRI: 4.12 and 4.17 | 34 35. OASIS Helps Protect the Red-Necked OstrichThe largest of three species in the ostrich family, the red-neckedostrich was once abundant in Niger. Like other ostriches,this species population numbers are declining due to humanOur Arenus division has partnered with the Saint Louis Zoos Orthwein environmental interference and predation.Animal Nutrition Center to study the effects of Arenuss structural healthsupplement, STEADFAST. The partnership, in the form of a grant, placed In an attempt to rescue the red-neckeda graduate student from the University of Missouri Columbia with theostrich from becoming an endangeredSaint Louis Zoo for a two-year period. The primary focus of the researchspecies, Novus developed a plan with theis assessing the effects of STEADFAST on enhancing joint health inSaint Louis Zoos Saharan Wildlife Recoveryvarious mammals.Center. The Zoos Recovery Center is a worldleader in combating the extinction of SaharanThe importance of animal nutrition and its effects on treating and/or wildlife.preventing health issues is a new undertaking in zoos. The Saint LouisZoo is a world-class facility and one of only a few in the United States that Upon hatching at the Wildlife Recoverystaffs an animal nutritionist and maintains a dedicated nutrition center. Center, red-necked ostriches often face along trip to the facility where they will growto adulthood. During this trip, nutrition andFor more information about the Saint Louis Zoo, visit www.stlzoo.orghydration are frequently not available for thehatchling.Our OASIS hatchling supplement, originally developed for domesticfowl, is a hydrated nutritional formulation that supports this criticalphase of life. OASIS is used during transport from the hatchery tofarms to maintain gut health and hydration.Novus is providing OASIS to the Zoos Saharan Wildlife RecoveryCenter. OASIS will benefit the red-necked ostrich, as it has done forchickens, turkeys and ducks in farm environments around the world.GRI: 4.12 Novus International, Inc. Health through Nutrition 2009 | 35 36. Industry AssociationsWe recognize our responsibility to collaborate and cooperate with Recognitionother stakeholders in our industry. We participate in a range of Novus is very proud of the meaningful awards and recognition industry associations as a highly effective way to integrate our we have received over the past year. Below are a few examples: Vision into the mainstream of modern agriculture.Below are a few examples of industry associations that Novus employeesparticipate in:In 2009, we proudly became the first company in the feed-ingredient industry tobecome a member of the Sustainable Agricultural Initiative (SAI) Platform. Thefood industry established this organization to support agricultural practices andHEROES OF THE PLANETproduction systems that preserve and promote the efficient use of resources.SUSTAINABLE EMPLOYEE PROGRAMSAwarded to Thad SimonsSt. Louis Business JournalThe Center for Food Integrity (CFI) was established in 2007 to increase consumertrust and confidence in the contemporary U.S. food system. Its primary mission isto promote dialogue, model best practices, address issues that are important toconsumers and serve as a resource for accurate, balanced information about theU.S. food system.TOP 50 PLACES TO WORKAwarded to NovusThe American Feed Industry Association (AFIA) is the worlds largest organization solelydevoted to representing the business, legislative and regulatory interests of the animalfeed industry and its suppliers. The program establishes comprehensive standards ofexcellence that go beyond existing regulations to maximize food and feed safety.RESPONSIBLE CAREENERGY EFFICIENCY AWARDAwarded to NovusThe United States Soybean Export Council (USSEC) represents U.S.-grown soybeans,soybean meal, IP soybeans and soy protein isolates to international markets. USSECtravels the world with partner companies like Novus, educating farmers on theadvantages of soybean inclusion into the rations for their animals.For a complete listing of Novus industry association memberships, please visitpage 80 in the Appendix.GRI: 2.10, 4.12, 4.13 and 4.14 | 36 37. Economic The basic definition of sustainability is to keep a process or action going. Healthy businesses provide livelihoods for families, technologies that improve the quality of our lives and the framework for innovation that will be required to sustain our growing world. Core to our Vision is supporting our customers with products and services that improve and create efficiencies in their business operations. In the fabric of economic sustainability, we are all interwoven, and the strength of one is dependent on the strength of the entire community.GRI: 2.2 and 2.7Novus International, Inc. Health through Nutrition 2009 | 37 38. Product Development at Novus Successful product development is the result of greatCollaborating to Meet Demand Responsibly ideas and a structured process that ultimately bringIn business, innovation is where the commercial meets the creative. Within the these products to market. At Novus, innovation beginsNovus framework of innovation, we generate ideas that can be commercialized with our individual employees. We seek excellence fromprofitably. We believe that innovation requires well-rounded, collaborative input all employees, expect alignment and value diversity.across our organization and with customers and partners outside of Novus. We reward curiosity and initiative. We seek to developFor this reason, we have created an innovation structure that integrates the products and programs that are responsible from acompetencies and ideas of both internal and external sources. We believe that social, economic and environmental (SEE) standpoint.varied perceptions bring value and honesty to the innovation process. We know that innovation is a necessity for meeting the food demands of our world in the future.Value chain synergies are central to meeting the global food demands of thefuture. Through joint R&D, we combine our core capabilities to bring new Structure is critical to successfully bringing innovativeproducts to market. New product and process technologies are essential to products to market. At Novus our innovation frameworkour future as we work to fulfill a dramatically higher demand for food using is based on four pillars:virtually the same natural resources we have today. StrategyThe Novus Idea Network relies on collaboration from internal and external Defining the long-term application for an idea, conditionssources. necessary for success and assuring alignment with our Mission, Vision and Core Values. The Novus Idea Network Idea Generation and Capture A formalized process for idea generation and capture that considers the viewpoints of our internal andDiscussion University external network of stakeholders. ForumsNetworkIdeaSocial Infrastructure Work owsNetworking Validating the business and economic aspects of an NovusWorking Employee idea. Ensuring that there is a real application for this Teams DiversityIdeaRecruitingCustomers idea in the markets we serve, that it can be responsiblyNetwork produced and that it will generate profits. Intranet Associations Balancing Our Idea Portfolio Internal ERP CSR External Maintaining a portfolio of ideas and strategically SourcesSources selecting what ideas to commercialize and when. | 38GRI: 2.2 and 2.7 39. Value Chain of Food ProductionLocalized Product Development with Customers Novus and our products are part of the value chain of food production and we take thisWorking with our customers at the local level is key to innovation at responsibility very seriously. We share this Novus. It is the reason we work directly in so many different countries. responsibility and stewardship with the partners In all regions where we conduct business, we hire employees who have we choose. At Novus, we select partners whosethe education, knowledge and local expertise to support our customers business practices align with our Mission, Visionand collaborate to meet their needs. By working locally, we are able and Core Values. Through the Novus Quality to understand how our products can be applied effectively in varying System (NQS), we demand accountability circumstancesranging from multi-national corporations in and transparency from ourselves and ourBrazil to smallholder farms in Africa. partners. We choose our partners based on mutual alignment of best practices including:Knowledge Sharing and Transfer Traceability Central to our product development process is the idea that creating best Quality Assurancepractices and successful models that others can replicate extends the Food Safety Practicespower of innovation. We want the work we do through our innovation Employee Standards and Safetyprocessincluding research and developmentto be applied as widely Animal Well-Beingas possible. We are committed to creating scientifically-based innovationsthat promote Health through Nutrition. Todays consumers are more aware of and engaged in the food they eat, from bothWe feel a deep responsibility to share the knowledge we gain and the nutritional and social points of view. Greater technology we develop. Through transferring knowledge, our goal awareness is driving new standards ofis to empower people to improve agricultural practices in their local production and the opportunity for education.communities. This commitment is tangibly expressed in our direct In our product development process, we and local approach with our customers, the way we collaborate with focus on supporting our customers andpartners and through the collaborative relationships we build with non- consumers in this evolving industry. governmental organizations (NGOs), students and professors.Novus is Part of the Value Chain of Food Production Feed & Producer Processor Distributor Wholesaler Retailer Consumer SupplementsFrom Field to ForkGRI: 2.2 and 2.7Novus International, Inc. Health through Nutrition 2009 | 39 40. Novus Quality System The Novus Quality System encompasses a collection of documentation and process surrounding management review, integrity, training, product development and manufacture of products. The Novus Quality System assures that our customers around the world are sold products in which they can be confident. As part of this system, raw material specifications, manufacturing specifications and sales specifications ensure that all manufacturing plants adhere to the parameters we set forth. The manufacturing specifications may include product appearance, particle size, moisture, uniformity and active ingredients. The sales specifications summarize the functionality of the product and provide the customer with the characteristics that Novus will guarantee about the product. As an example, from the beginning of the manufacturing process, Novus develops raw material specifications. We conduct a minor impurities analysis to ensure that raw materials are free of undesirable substances, such as heavy metals. Manufacturing specifications assure compliance to the sales specifications, determined through input provided by Novus Marketing and Sales. The product can then be delivered to the customer with a guaranteed functionality.These specifications benefit Novus and our customers. Our advantage is a thorough understanding of the critical points along the continuum of manufacturing-to-productdelivery and usage.GRI: 2.2 and 2.7Novus International, Inc. Health through Nutrition 2009 | 40 41. University Research CollaborationNovus develops mutually beneficial partnerships with university researchIn the United States, we have worked with North Carolina State Universityfacilities around the world. Through these initiatives, researchers and and poultry producers to determine the effects of trace mineral nutrition onstudents are able to pursue the expansion of knowledge and the applicationbone development and strength. These trials were developed in responseof that knowledge to advance agriculture. These alliances allow us to to direct concerns from the industry to solve an economic and animalinteract with businesses and to take our research to local field conditions welfare issue.to benefit our customers.For more than ten years, we have worked with the University of Missouri In the dairy region of Argentina, we worked with university extension Columbia. This relationship has helped us discover facilities that mimic fieldagents to evaluate our ruminant nutrition programs under field conditions.conditions to collect reliable data.The extension agents put us in contact with a farmer whose herdwas experiencing leg problems and milk fat challenges. Through thispartnership, we were able to develop a program with our MFP andAGRADO products to improve hoof health and milk fat production.The assistance of the university and its extension agents allowed us toshare our knowledge, products and research under local conditionsfor the benefit of a farmer. These findings were then presented ata scientific meeting for the benefit of researchers worldwide.We also share our analytical, experimental design, equipment andlaboratory design expertise with our university collaborators. In manycases, we might assist with upgrading a university feeding facility orhelp them design new facilities.In Thailand, the facility at Kasetsart University was designed to replicatea commercial broiler setting. In Vietnam, we helped Nong Lam Universityofficials plan a new aquaculture center to conduct research withPangasius, a genus of catfish. The goal of these projects is to help theuniversities better conduct significant research initiatives using localEach summer, Dr. Chris Knight travels to China to select the new,feedstuffs and Novus products to increase production and animal health. annual class of Novus Graduate Scholars.Our findings strongly suggest that university-industry research Our current collaborative university projects do not just include researchrelationships benefit academic institutions and customers. In cooperation initiatives. Many times, we are simply assisting universities with establishingwith Bombay Veterinary College in India, we are conducting a two- documentation or training standards. It is essential that the researchyear research project on chelated trace mineral nutrition in poultrycommunity maintain controls and procedures to ensure quality data isproduction. We are transferring the trace mineral knowledge we have obtained and shared with our industry for the benefit of producers.established in the United States to broiler and layer customers in India.GRI: 2.2 and 2.7Novus International, Inc. Health through Nutrition 2009 | 41 42. The Novus Product PortfolioThe global demand for food is increasing at ain the world and to do so through sustainable, responsible practices. Throughrapid rate each year, and this future demand willa broad product portfolio, Novus takes a comprehensive approach to optimizeneed to be fulfilled using nearly the same natural the health of animals. This approach maximizes the farmers outputs andresources currently available. For these reasons,produces animals that are more resistant to sickness and disease, which allowswe embrace science, technology and bestthem to consistently yield higher quality food. By improving their bio-efficiency,practices as the foundation of our researchanimals also produce less waste that contains lower quantities of by-productsand development process. that could pollute the environment.We are motivated to develop products thatAdditionally, our products create efficiencies that support the creation of more andwill enable the agriculture industry to providehigher quality protein, enabling farmers to increase their profits while lowering theHealth through Nutrition to people everywherecost of food and ultimately helping people achieve a higher quality of life. Amino AcidsMethionine ALIMET and its sister products MHA, MERA Met and MFP contain a precursor to methionine, an essential amino acid. Amino acids are theMethionine is an essential amino acid. Very simply building blocks of protein, which make feed more nutritious and efficient.stated, animals will be limited in their growth withoutproper amounts of methionine. It is the first limitingamino acid in poultry and the second limiting aminoacid in ruminants and pigs. To meet the growing demand for animal protein, it isALIMET liquid feed supplement contains MHA feed supplement, a drycritical that we improve the conversion of the proteins88% HMTBa, a precursor to methionine,granular powder, is a leadingin animal feed to meat. Amino acids play an importantand delivers an organic acid effect, source of methionine inrole in improving this efficiency in the animal.resulting in better performance andpremixes and farm feed mills.reduced nitrogen excretions.ALIMET contains 88% HMTBa, a precursor to methioninethat is 100% available to the animal. By this, we mean MFPthat 100% of the HMTBa in ALIMET will be converted to TMmethionine and available to the animal. This results ingreater productivity for the producer. MERA Met is a source of MFP is a source of methionine for specific use methionine for specific use in in aquaculture diets. beef and dairy cattle diets.GRI: 2.2, 2.7 and 4.17 | 42 43. Enzymes All animals naturally produce enzymes to break down major nutrients, including protein. Through a technology partnership with BioResource International, Inc. (BRI), Novus has introduced CIBENZA, a family of enzymes that provide producers with an excellent source of versatile and pellet stable solutions. CIBENZA enzymes help producers achieve improved animal performance and greater flexibility in dietary formulations. Producers must maximize their return on animal feed investments. CIBENZA DP100 is a heat-stable protease that improves dietary Less-than-optimal digestibility results in wasted feed and wastedprotein digestibility for optimal animal performance. CIBENZA money. CIBENZA enzymes are ideal for corn/soy diets andDP100 usage can reduce ration costs by lowering protein levels in alternative ingredients, such as cassava, sorghum, palm and copra. the feed up to 10% without sacrificing animal performance, while We produce CIBENZA for poultry, pork, aquaculture and rendering. lowering nitrogen excretion into the environment.CIBENZA DE200 is a heat-stable mannanase that improves energyavailability. CIBENZA DE200 allows producers to save on feedcosts and increase formulation flexibility through the use of a Demonstrable Environmental Value variety of raw materials in feed rations. Animals consuming nutritionally balanced diets excrete lessCIBENZA PHOS is a heat-stable phytase. CIBENZA PHOS enables waste, which provides a demonstrable environmental value.animals to obtain more phosphorus from feed, resulting in less Furthermore, when animals are fed according to best practicephosphorous being emitted into the environment. nutrition, productivity gains reduce the strain on the agriculture industrys limited resources. It is possible to feed more livestockCIBENZA CSM is a blend of enzymes designed by Novus to work without increasing the amount of water and acreage required.with local feedstuffs. CIBENZA CSM is blended locally at Novusmanufacturing facilities in Mexico and China. For example, we estimate that if all of the broilers grown in the United States were fed CIBENZA DP100, a special enzymeCIBENZA IND900 is a heat-stable protease enzyme for feather that more efficiently converts soybeans into usable protein,meal processing. CIBENZA IND900 allows customers to create a the reduction in soybean demand by the poultry industry wouldhigh-quality feed product using less energy. be equivalent to saving 1.75 million acres of farmland for other purposes and an 11% gain in productivity industry wide. In addition to that, animals eating less protein consume less water, an essential element required for protein digestion, which will help conserve much needed fresh water resources.GRI: 2.2, 2.7 and 4.17Novus International, Inc. Health through Nutrition 2009 | 43 44. Chelated Trace Minerals Novus has a unique line of chelated trace mineral products thatWhen considering mineral sources, bioavailability is extremely offer a wide range of benefits. Trace minerals such as zinc, copper, important. Chelated trace minerals, in comparison to inorganic trace manganese and selenium are essential to all animals for a wide minerals, have much higher absorption rates within animals. variety of physiological processes. Immune development and response, and tissue and bone development are just a few examples. More minerals in means more minerals out. Feeding high levels of Deficiencies in trace minerals can lead to reduced performance inorganic minerals means that a larger portion of minerals consumed and even death.enter the environment by way of excretion, creating pollution. Novusschelated mineral technology has a high absorption rate and offers The need for trace minerals varies with diet, water source, diseasesolutions to farmers to improve animal health and productivity while challenge and reproduction. Animals have mineral reserves to drawreducing the impact of their operations on the environment. upon but these must be replenished on an ongoing basis. The MINTREX product family offers chelated trace mineral technology for aquaculture, poultry, pork, beef, dairy and pets. MINTREX combines HMTBa with an essential trace mineral in a two-to-one chelated molecule. These products are available in customized blends. ZORIEN SeY is a special strain of yeast, Saccharomyces cerevisiae, that is enriched with an organic form of selenium, which is needed in trace amounts for cellular function. ZORIEN SeY delivers significant health benefits to aquaculture, poultry, pork, beef and dairy.TM GLYTREX provides the benefits of chelated trace mineral nutrition, including gut stability and increased absorption. GLYTREX is available in customized blends. Over the past year, Novus acquired the Animal Nutrition Division of Albion Laboratories, Inc. Products from the acquisition, including the MAAC chelated trace mineral product line, will align with our GLYTREX family. The acquisition furthers our commitment to continually offer a broader range of products to address the needs of our customers.GRI: 2.2, 2.7 and 4.17 Novus International, Inc. Health through Nutrition 2009 | 44 45. Chelated Trace Mineral TechnologyReturn on Investment Eggshell Quality Consider the example of farmers seeking to ensure their poultrysneed for zinc (Zn). Symptoms of zinc deficiency can include a Whether delivering table eggs to the grocery store orsuppressed immune system, poor feathering and dermatitis. production eggs to the hatchery, the success of farmers businesses depends on consistently producing high- Inorganic zinc sulphate is an inexpensive, though not particularly quality eggs with strong shells. bioavailable, form of mineral supplementation. Farmers might needto feed their poultry 100 parts per million of inorganic zinc sulphate. The most effective way to achieve the highest production By substituting MINTREX Zn, a highly available chelated form of possible is to boost the performance of layers through the mineral, farmers can feed their poultry 32 parts per million, optimal nutrition that incorporates chelated trace mineral improving the animals health and performance while reducing technology.waste. The quality of eggshells directly affects the salability of eggs. If eggs develop cracks or break during transit,Inorganic TraceMinerals they cannot be sold. Additionally, eggs produced by layers with unbalanced mineral levels contain excessive calcium deposits, which further limit salability. Chelated trace mineral technology is effective in improving eggshell quality because it is more bioavailable to animals. More minerals are absorbed and ultimately utilized by the layers biological systems to strengthen eggshells.= Complete FeedChelated trace mineral technologyenables farmers to reduce their levels Through the use of chelated rather than inorganicof mineral inclusionsaving money and = Mineralreducing waste to the environment. minerals, farmers can precisely supplement animal diets with lower levels and better results. When using chelated trace minerals, farmers are less likely to over- The economic return on investment of our chelated trace minerals supplement their flocks, which leads to excessive can be as high as 5:1 for farmers. But these returns cannot be calcium deposits.counted only in dollars. They also translate to lower quantities of zincexcretions into the environment. Deposits of zinc, copper and othertrace mineral metals are all reduced by MINTREX. This results inreduced volumes of heavy metals being deposited into our soil.GRI: 2.2, 2.7 and 4.17 Novus International, Inc. Health through Nutrition 2009 | 45 46. Antioxidants Novus antioxidant products are available in two categories: feed preservatives and dietary supplements. Feed Preservative Antioxidants Oxidation of animal feed and feedstuffs can result in rancidity of fats and destruction of vitamins A, D, E and amino acids. If unchecked, a single degraded ration ingredient can lead to lower animal feed consumption and nutrient deficiencies. Novus products, including SANTOQUIN, FEEDGUARD and NATUGUARD feed preservatives, protect the nutritional value of feed.NATU SANTOQUIN feed preservative provides FEEDGUARD feed preservative is aNATUGUARD feed preservative is unsurpassed protection from oxidativedry, free-flowing product for use ina natural-based antioxidant used rancidity. Oxidation decreases the value dry mixes. It is a proprietary blend of to preserve fats, oils, vitamins and of unprotected ingredients as soon antioxidants that is used to preserve pigments contained in animal feed. as they are produced and continues fats, oils, vitamins and pigments The ratios of active antioxidants in to degrade nutrients over time.contained in dry animal feed. NATUGUARD have been developed SANTOQUIN protects feed ingredientsto provide optimal performance at and prolongs nutritional shelf life in the best cost possible. complete feed.GRI: 2.2, 2.7 and 4.17 | 46 47. Dietary AntioxidantsDietary antioxidants for animals promote healthierimmune systems and tissues by capturing freeradicals and optimizing oxidative balance.By reducing the amount of energy required to fightdisease and improving health, dietary antioxidantsenable animals to grow more productively.The AGRADO product family contains dietary antioxidants that have been reviewed and approved by the FDA for use in total mixed rations of lactating dairy cows. In addition to being beneficial to the dairy market, AGRADO products offer benefits for cattle and pigs. AGRADO products have superior efficacy against both animal and plant-sourced fats in the total mixed ration, protect key ingredients from oxidation and reduce harmful free radical formation that can negatively affect health and productivity.GRI: 2.2, 2.7 and 4.17 Novus International, Inc. Health through Nutrition 2009 | 47 48. Feed QualityNovuss solutions for feed quality protect the value of high-quality ingredients to ensureoptimal animal health, performance and improved feed conversion rates. The Novus familyof products for feed quality includes SOLIS, ZORIEN MOS, PRO-STABIL and CAPTURA.SOLIS is an anti-caking agent approvedfor use in animal feed. When properlymixed, SOLIS has the ability to target thechallenges of fungal metabolites.ZORIEN MOS is a prebiotic additivecontaining mannanoligosaccharidesMOSand beta-glucans, derived from aselected strain of Saccharomycescerevisiae yeast cell wall for use inproduction livestock.PRO-STABIL is available as a granulatedor liquid preservative premix. It containspropionic acid as its main agentand is used in the preservation andstabilization of compound feed and feedmaterials.CAPTURA is a free-flowing premixturethat reduces the effects of moisture andtoxins in animal feed.GRI: 2.2, 2.7 and 4.17 Novus International, Inc. Health through Nutrition 2009 | 48 49. Feed Mill Management Our feed mill management and feed quality solutions support farmers Feed Mill Efficiency Program and feed mills in creating the highest-quality rations possible. We developed the product SURFACE Feed mill management products like SURFACE, a liquid preservation to support our feed mill customers in premixture, increase pellet output while improving feed quality.increasing the nutritional content of the feed they create, improving their IDEA (Immobilized Digestible Enzyme Assay) quickly and accurately enablesbusiness operations and reducing feed mills and farmers to determine the protein amino acid digestibility of their environmental impact. feed ingredients like soybean meal, poultry and feather meal, fish meal, Distillers Dried Grains with Solubles (DDGS), and meat and bone meal.SURFACE helps decrease the surface tension on feed particles and reduce dissipation of moisture pellets. The product binds with dietary fat present during feed production, resulting in better lubrication of machinery and increased feed output SURFACE is a liquid preservation premixture that offers multiple with reduced energy consumption. economic and environmental benefits during the production of pelleted feed. SURFACE exerts an emulsifier action that increases pellet output,In a study of SURFACE spanning 6 improves conditioning, enhances the durability of the pelleted feed and countries, feed mills experienced improves the overall quality of the final feed. a 14% average savings in energy consumption, equating to $2.90 (USD) per ton. Additionally, feed producedD using SURFACE has an optimized ratio of dry content to moisture, as intended in dietary formulations. IDEA provides a farm-level tool for our customers to test the quality of their feed ingredients and to determine the protein amino acid digestibility. Additionally, IDEA is used to test the quality and safety of pet food ingredients.GRI: 2.2, 2.7 and 4.17 Novus International, Inc. Health through Nutrition 2009 | 49 50. Gut Environment Modifiers Gut Environment Modifiers (GEMs) support beneficial bacteria while degrading their non-beneficial counterparts. GEMs enhance digestion and absorption without reliance on antibiotics. ACTIVATE is a blend of GEMs combined with ALIMET. Pork and poultry producers use ACTIVATE products as an important component of Salmonella reduction programs. ACTIVATE also aids in increasing sow feedSalmonella Prevention intake.Gut environment modifiers (GEMs) helpcontrol and prevent harmful agents, such ACIDOMATRIX is a proprietary line of protected GEMs as bacteria, from proliferating in the small for pork. It provides benefits that increase performance intestines of animals. Bacteria, such as during diet changes or in antibiotic-free diets. Salmonella, can have a negative effecton animal health, ultimately harming ACIDOMIX is a combination of liquid organic and production and possibly human health. inorganic acids. ACIDOMIX is designed to improve food and water quality while helping to prevent theThe European Food Safety Authority(EFSA) has assessed the public health colonization of harmful bacteria.risks from Salmonella in pigs. The EFSAassessment suggests that pigs and pig MERA Cid is a proprietary blend of feed-grade organic meat may be responsible for 10% to 20% acids that supports beneficial bacteria in fish and shrimp of all human cases of salmonellosis in by acidifying the environment. MERA Cid supports the EU. Effectively controlling Salmonella healthy growth in an antibiotic-free environment.at the farm level can have a directimpact on the food chain and reduce the PROVENIA is an energy-rich, flavored complementarynumber of related human illnesses. feed for piglets.When Salmonella proliferate in the intestine,it becomes difficult for animals to absorbnutrients. This results in poor health and Biologicalsperformance. Through the various GEM-Line products and programs we offer, such ADVENT is a vaccine against coccidiosis, one of theas ACTIVATE WD, farmers can manage greatest threats to poultry. The product is sprayed onto a wide variety of challenges, such as broiler chicks shortly after they are hatched, providing the transmission of Salmonella in pigs. protection through a single, antibiotic-free application.ACTIVATE WD is for use in the drinkingwater of pigs, and for the control anddestruction of environmental pathogens.GRI: 2.2, 2.7 and 4.17 | 50 51. Early Nutrition Early Nutrition is fundamental to the overall health of chicks and piglets.OASIS hatchling supplement is a hydrated EggsThe New Superfoodnutritional formulation specially designed for thefirst days of life for hatchling poultry. OASIS is For years, eggs have been considered a powerhouseused during transport from the hatchery to farms of nutrition. This reputation is due to eggs exceptionalor as a top dress application on starter feed. nutritional profile as a nutrient-dense food containing high-quality protein and a substantial amount of essential vitamins and minerals. Eggs are a good source of folate, phosphorous, vitamins A, D, B12 Enrichmentand K, riboflavin, selenium and choline. The nutrient density of eggs makes them a valuable contributor In recent years, people have become more concerned about how to the overall nutritional balance of the diet. Eggs food choices impact their health and well-being. In late 2007, are an economical source of high-quality protein, Novus began marketing DHA GOLD to animal producers. DHA an important component in the diets of the elderly, is an essential component for many cells in the human body and low-income families, growing children and people studies have shown that a DHA-rich diet can lead to increased attempting to lose weight. brain, eye and heart health. Including DHA GOLD in animal feed is a safe and effective way to nutritionally enhance the DHA content In addition to being a wholesome and nutritious food, of meat and eggs. When included in livestock diets, DHA has health eggs can also be classified as a functional food. benefits to animals and ultimately, enriches the food products. Research has shown that eggs supply significant amounts of carotenoids that may play a role in disease Enrichment of food products is very important in emerging prevention. Researchers have demonstrated that markets where diets are often lacking in balanced nutrition. eggs are a source of highly bioavailable forms of the Providing supplementation through eggs provides nutrition carotenoids lutein and zeaxanthin. These antioxidant- and can be less expensive than through traditional tablets. like compounds have been shown to help in the Other nutrients that can be supplemented through egg prevention of macular degeneration, a leading cause or protein enrichment include Zinc and Selenium. of blindness in the elderly, and have been associated with lower risk of cataract extraction. Eggs are also a significant source of choline. Choline is essential forDHA GOLD is an all-natural, vegetarian normal functioning of all cells, including those involvedsource of the omega-3 fatty acid with metabolism, brain and nerve function, memory anddocosahexaenoic acid (DHA). the transportation of nutrients throughout the body. For additional information on the health benefits of eggs, visit www.thinkegg.com or www.incredibleegg.orgGRI: 2.2, 2.7 and 4.17| 51 52. Novus Nutrition BrandsNovus Nutrition Brands, LLC, (NNB) is a subsidiary ofBelow are two examples of products from our Arenus product family:Novus International, Inc. NNB is comprised of NovusPet Nutrition (NPN), Arenus and Stratum Nutrition.ASSURE is an innovative digestivesupplement for horses that, when fed daily,helps to support overall hindgut healththrough our exclusive GST technology.ASSURE may control the risk of digestivecolic through its blend of direct-fedNPN is a division of NNB dedicated to providingmicrobials.nutritional ingredient solutions to the pet foodmanufacturing industry. Products offered toSTEADFAST is a patent-pending healthmanufacturers include the Novus line of chelatedsupplement specifically designed to supporttrace minerals, antioxidants, amino acids, prebiotics,joint integrity, bones, tendons, ligaments andenzymes, yeasts and protein quality testing.other connective tissues in dogs and horses.To learn more about Arenus, visit www.arenus.comArenus is a premier provider of innovative health andnutrition products, offered direct to consumers, fordogs, horses, ornamental fish and birds. The division isan audited member of the National Animal SupplementCouncil (NASC), an industry group dedicated toprotecting the health of companion animals andhorses. Based on science, Arenus products aredeveloped with the input of nutritionists, veterinariansand other animal professionals.GRI: 2.2, 2.3, 2.7, 3.8 and 4.17 | 52 53. Stratum Nutrition offers a portfolio of branded, value-added ingredientsfor human health applications. Stratum focuses on growing a portfolioof specialty and functional ingredients that target business-to-businessmanufacturers of foods, beverages and dietary supplements. Vitamin Angels is dedicated to reducing child mortality worldwide by advancing the availability, access and use of essential nutrients toStratum Nutrition has entered into strategic partnerships with two newborns, infants and children under five.ingredient manufacturers, KitoZyme and ESM Technologies. KitoZymeproduces a new vegetarian ingredient, chitin-glucan, which supportsThrough our partnership with Vitamin Angels, Novus is able to helparterial and overall heart health. Through a technology partnership with improve the quality of life for children. We have committed to makingESM Technologies, Stratum is working to accelerate the global use of the significant donations in the way of monetary funds, as well as the rawingredient Natural Eggshell Membrane (NEM) in supplements, functionalmaterial zinc. Through our partnership, Vitamin Angels is establishingfoods and beverages. NEM represents a unique and safe technology thata new zinc program that will provide relief for diarrhea, one of thefits a key target health platform for usjoint and bone health.most widespread and deadly health problems affecting children under the age of five around the world. Below are examples of products from the Stratum Nutrition product family: The Vitamin Angels pilot program will be delivered to Sauri, Dertu and Eldoret, Kenya through the infrastructure of Millennium Villages.ESC is a naturally pure calcium source. It consists ofThe goal of Millennium Villages is to empower communities to lead ina natural form of calcium carbonate, which the bodytheir own development. To ensure success, participants must give aneeds to maintain healthy bone mineral density.significant amount of their time, skills and resources.NEM is a natural eggshell membrane ingredient clinicallyThis large-scale humanitarian project, coordinated through Vitaminproven to support joint comfort and flexibility. NEM isAngels Thrive to Five initiative, was launched during the groupscomposed of naturally occurring glycosaminoglycans,2009 Celebration of Angels event. The launch of the programincluding chondroitin and hyaluronic acid, as well as collagen coincided with Novuss launch of our new Stratum Nutrition division,and other beneficial proteins essential for joint health.which focuses on human Health through Nutrition. This partnership supports Novuss decision to expand the scope of its solutions toARTINIA is a high-purity natural ingredient that features include ingredients and technologies that directly support humanthe benefits of soluble and insoluble fibers to support thenutritionhealthy ingredients that are put into human supplements,bodys natural defenses against oxidized-LDL cholesterol.beverages and foods.To learn more about Stratum Nutrition, For more information about Vitamin Angels and Millennium Villages, visitvisit www.stratumnutrition.com www.vitaminangels.org www.millenniumvillages.orgGRI: 2.2, 2.3, 2.7, 3.8 and 4.17Novus International, Inc. Health through Nutrition 2009 | 53 54. Programs Animal Well-BeingThe challenge of global sustainability is complexFrom a business perspective, it is in the best interest of farmers to do everythingand involves multiple, inter-related issues. Wethey can to ensure that their animals have the best nutrition, environmentallook at our customers business challenges fromconditions and care. Animals are more productive when they are healthy.an integrated perspective, recognizing that it isan oversimplification to expect a single product Health through Nutrition is central to animal well-being. Healthy animals areto solve a multi-faceted problem. Our customers happy animals and Novus has been working to support the well-being of animalsbusinesses are impacted by social, economic andfor nearly two decades. Many programs specifically focused on animal well-environmental (SEE) factors. being have been designed based on our broad product portfolio. Below are a few examples:We look at health and nutrition issues from a holisticperspective, recognizing that only an integrated Joint Health for Horsesapproach will make a clear, sustainable economic Strenuous activities like training and competition, along with age, candifference to our customers. We provide complete erode horses joints over time, causing aches, pains and reduced mobility.solutions that deliver long-term Health throughSTEADFAST EQUINE by Arenus is a joint health supplement specificallyNutrition. designed to support performance and longevity. While many equine joint health products may be useful in addressing a single joint-specificOur goal at Novus is to help our customers treat issue, STEADFAST EQUINE takes a multi-faceted program approachsystemic issues, not symptoms. Many times animalsto supporting the horses entire joint systems. Not only does it providemay experience specific problems, but there can be essential components to joints, but also to bones, tendons and ligaments.larger underlying issues that when addressed, will Hoof Health for Cattlerestore and sustain health for the long term.Hoof health is key to keeping cows happy and healthy. Environment and nutrition both play a critical role in hoof health. Nutritional deficiencies canNovus is uniquely positioned to help our customers negatively impact hoof health and cow mobility. Through nutritional programsfortify and protect animal health. In many cases our including chelated trace minerals, we help to improve the mineral status in theproducts proactively prevent health problems beforeanimals and strengthen hoof health, keeping cows healthy and mobile.they begin. Footpad Health for PoultryBased on an understanding of our customersFootpad lesions are a common issue with poultry and can cause discomfortneeds and the factors that drive our market today, for birds. Novus has developed a program to help eliminate some of the mostwe approach the agriculture industry through fourcommon causes of footpad dermatitis. Highly bioavailable MINTREX chelatedmajor program categories:trace minerals strengthen the soles of the feet, making them more resistant to footpad issues. Proper amino acid nutrition with ALIMET enables maximumAnimal Well-Beingtissue integrity and CIBENZA enzymes assist in aggressively reducing proteinPerformance and nitrogen excretions to reduce wet or caked litter conditions.Food SafetyEnvironmentalGRI: 4.17Novus International, Inc. Health through Nutrition 2009 | 54 55. Achieving Oxidative BalanceHumans and animals alike must eatdifferent types of food or feed to behealthy. When diets are out of balancePerformanceor animal rations are not quite right, we For the livestock industry, the term "performance"can become lethargic, get sick or evenrelates to an animal achieving an optimal state ofdie. We cannot operate at full potential. health and growing to genetic potential. A strategicapproach to nutrition is critical for farmers workingDoctors tell us to consume foods rich into keep their livestock healthy and productive. Novusantioxidants, like blueberries, spinach works, through nutritional strategies, to help farmersand tea to enhance our health and well- achieve the highest performance possible.being. In much the same manner, wecan add dietary antioxidants to animalExamples of Novuss nutritional strategies tofeed to accomplish similar goals. enhance performance include:In the case of dairy cows, a complete Optimizing Feed Utilizationfeed must contain high-qualityMinimizing Structural Health Challengesingredients to maximize animalMaximizing Reproductive Healthperformance. Best practice management Reducing Feed-Borne Pathogenspartly accomplishes this goal. ButSupporting Optimal Digestive Healtheven after feed is produced and inPreventing and Eliminating Feed Toxinsfact, even after food is consumedand in the digestive tract, harmfulproducts can form and upsetthe oxidative balance in animals.Lowering Feed Costs and Improving PerformanceA strategic approach to nutrition is critical for farmers working to keep their livestock healthy andWhether an Olympic athlete or high- productive. Feed ingredients are an enormous investment for farmers, representing up to 70% of totalproducing dairy cow, nutritionaloperating costs. Nutritional strategies can help protect and maximize this investment. Most importantly,programs containing dietary antioxidantsanimals who consume a nutritionally balanced diet are healthier and better equipped to achieve theirare particularly important forgenetic potential.achieving high performance andreaching full potential.For example, all animals naturally produce enzymes that break down major nutrients, including protein.However, animals are not capable of breaking down some components that naturally occur in animalfeed such as fiber or phytic acid, which means that nutrients are not absorbed and feed is wasted.When animal diets are supplemented with enzymes, the digestion of nutrients is optimized, leading toimproved animal health and lower operating costs.Diets optimally formulated with products from the CIBENZA product family can improve the digestibilityof animal diets. In a corn/soy diet for poultry, for example, approximately 90% of the feed is digestible,while 10% is converted to waste matter. By maximizing the digestible portion of the feed, farmers canGRI: 4.17 recognize a higher return on their investment and animals achieve their genetic potential. | 55 56. Food Safety and MycotoxinsMycotoxins vary throughout the world,Food Safety with different regions experiencingFood Safety is extremely complex because there are many different mycotoxin-related challenges.points along the farm-to-table continuum. At Novus, we have The highest risk to human health is indeveloped On-Farm Prevention Management Programs, which emerging markets, where pasteurizationenable our customers to manage all points of potential pathogen is not yet widely adopted. In these areas,introduction. Our programs combine management best practicesthe aflatoxin M1 is of widespreadwith preventative, nutritional strategies.concern.Novus offers many solutions to support Food Safety including: When cattle consume aflatoxin, themilk they produce quickly becomesPathogen Prevention contaminated with M1, which canMycotoxin Managementultimately have devastating healthWater Quality Support effectsincluding death of animals andBest Practice Consultingof people who consume their products.African nations, including Kenya,As part of the value chain of food production, we take ourSenegal and Somalia, have experiencedrole and responsibility very seriously. We implement qualityaflatoxin contaminations, which haveassurance programs and maintain traceability for all theclaimed thousands of human lives.products we produce.In response to the global problem ofmycotoxins, more than 100 countrieshave enacted legislation to control theamount of mycotoxins in animal feed, aswell as in food for human consumption.Novus products SOLIS and CAPTURA areanti-caking agents. These products bondwith mycotoxins during the digestiveprocesses of animals and safely carrythem out through their waste.GRI: 4.17Novus International, Inc. Health through Nutrition 2009 | 56 57. Food and waterborne diseases are leading causes of illness and death in less developed countries, killing an estimated 2.2 million people annually, most of whom are children.World Health Organization, 2010Novus International, Inc. Health through Nutrition 2009 | 57 58. Environmental The agriculture industry plays a unique role in the global effort to protect and preserve the environment. It is our responsibility to feed a large majority of the world. In that respect, agricultures relatively small size has a disproportionately large impact on humanity and the environment. We face the challenge of working with our natural resources to meet the worlds increasing demand for food in a way that does not exhaust the environments capacity to produce what we need. We also have the responsibility of utilizing natural resources efficiently, maximizing productivity, while taking care to minimize waste. The environmental challenge of sustainability is largely dependent upon how we manage social and economic issuesas individuals, as companies and as members of our local communities. Novus International, Inc. Health through Nutrition 2009 | 58 59. The Importance of Chicken and Fishin Feeding the WorldWhen comparing all sources of protein, poultry and fish are the mostProductsefficient, economical sources on earth. This is because there is a lowerNovus products are geared towards maximizingproduction cost per kilogram (kg) and therefore a lower consumer price point.output and minimizing waste. Leveraging a broadproduct portfolio, we take a comprehensiveFeed costs impact both the demand for and production of protein. Whenapproach to optimize the health of animals. Thiscomparing the various segments of the protein industry, the poultry segment isapproach maximizes the farmers output, fortifies less impacted by rising raw material costs due to efficiency of feed conversion.livestock against disease and ultimately leadsThe table below provides a comparison of feed conversion efficiency betweento the production of higher-quality food. Novuss beef, pork, poultry, dairy and fish.Health through Nutrition programs supporthealthy, happy animals who generate less waste Average Feed-to-Protein Conversion Ratiointo the environment and are more productive.Feed (kg)Protein (kg)Beef 5.01Pork 3.01Poultry2.01Fish 1.71 Source: Novus Analysis, 2010Fish Meal ReplacementThe level of industrialization of an operation directly and drastically impactsNearly one-third of the worlds wild-caught fishanimal performance. The conversion numbers above apply to conventionalare used to create fish meal for animal feed, farming environments. In emerging markets, where small farm operations arepredominantly for the aquaculture industry. Asstill common and widespread, conditions are variable, infrastructure can bethe worlds demand for protein continues to grow, limited, raw materials are often low quality and animal nutrition programs areso will the demand for fish meal. Novus offersnot optimized due to lack of resources.products to reduce the potential environmentalstrain of overfishing on the ecosystems ofBringing best management practices, such as amino acid and enzyme balanceour oceans for the creation of fish meal. in animal diets, to the farm level in emerging markets empowers farmers toincrease their output, providing access to more food for their families and theirOur MERA Met and MERA Met Ca products provide communities.amino acids and other nutritional supplementsthat enable producers to mix or replace fish meal In these regions, chicken and fish hold great potential as sustainable sourceswith soybean meal. This significantly lowers theof protein because the price of production is low by comparison, the productionfarmers operating costs, because soybean-based cycle is short and the protein output can be high when best practices are adopted.feed is much more economical than fish meal-based Farmers can have fast access to food to eat and take to market. In contrast, anfeed and does not compromise animal health. investment in larger livestock, such as dairy cows, can represent the largest assetfor families; and if the cows become sick or die, the effect can be devastating. Novus International, Inc. Health through Nutrition 2009 | 59 60. Operations and Manufacturing It is obvious that manufacturing processes have an environmental impact. Striving to diminish that impact, we make our manufacturing operations more efficient in the same way that we improve animal nutritionmore efficient use of input, more productive output and less waste. A majority of what comes into the manufacturing plant as raw materials is shipped out to the customer as product, generating as little waste as possible. Novuss largest plant, our Chocolate Bayou facility in Alvin, Texas, was built in the early 1980s to produce ALIMET. Chocolate Bayou was designed at a time when the world had recently experienced the economic and social shocks of the 1979 Oil Crisis. Consequently, the plant was designed with a keen eye towardNovuss largest plant operation, where we produce ALIMET, is located in Chocolate Bayou, Texas. the efficient use of energy and the minimization of waste. Due to the nature of the products we produce, NovusCommitment to Responsible Care Management manufacturing plants are generally mixing plants. We combine Novus is certified as a Responsible Care Management System ingredients, like a recipe, more than processing or refining them. company. Responsible Care was launched in 1988 as the On balance, our plants produce very little waste and expel American Chemistry Councils (www.americanchemistry.com) comprehensive minimal emissions into the atmosphere.Environmental, Health, Safety and Security (EHS&S) performance improvement Certifications initiative. It incorporates progressive principles based on benchmarked bestpractices of leading private sector companies, initiatives developed through Novus is committed to best practices as an organization. Below are the Global Environmental Management Initiative, International Standards a few examples of how we express this through our operations and Organization and other bodies, and requirements of national regulatory manufacturing: authorities. ISO 14001KosherThrough our business, we strive to provide commercial solutions that promote ISO 9000 FAMI-QSreduced waste and the reuse and/or recycle of our natural resources. We are GMPSafe Feed / Safe Foodcommitted as an organization to offering sustainable programs to our industry Responsible Care Managementand to achieving success through integrity. This commitment extends beyondsocial obligations or the imposed regulations of any one government or governingbody, which may not yet reflect the higher standards by which we are driven.KPI: EN3Novus International, Inc. Health through Nutrition 2009 | 60 61. Supply Chain SustainabilityOn any given day, Novus has hundreds of thousandsof pounds of material in motion over highways andrailways. It is imperative that we understand theenvironmental impact of our supply chain so thatwe can improve our processes and become a bettersteward of the environment. Whenever possible, weremove trucks from the highway through the utilizationof lesser polluting and more fuel efficient railcars.When there is no practical choice but to use trucks,we contract our freight movement with logisticsservice providers and carriers that are certified, activeparticipants in the Environmental Protection Agencys(EPA) SmartWay Transportation Partnership.The EPAs SmartWay Transportation Partnership isa voluntary program that recognizes partners forsetting and achieving greenhouse gas reductiongoals in freight transport. The tenets of the SmartWaycertification consist of an agreement between thetransportation company and the EPA. The participantsagree to benchmark their performance as the basis ofa three-year action plan to increase the efficienciesof their fleets, and/or commit to increasing the volumeof freight shipped with SmartWay-certified carriers by10% each year. Nearly 90% of Novuss finished goodsdistributed in the U.S. are carried by vendors that areactive partners in the EPAs voluntary program.Through collaboration with Certified SmartWayTransportation Partners and our commitment toutilize rail movements whenever feasible, Novuscontinues to embrace the goal of sustainabilityat every level of our organization.KPI: EC2 and EN26 Novus International, Inc. Health through Nutrition 2009 | 6157 62. The AIMS inventory management system has improvedInventory Management supply chain efficiency and reduced environmentalTechnology is another way we stay inimpact for Novus customers.close contact with our customers. Oneexample is our patented AutomatedInventory Management System (AIMS).Simply put, AIMS includes a sensor and a tankthat supplies ALIMET to a feed mill or mixer. Novusmonitors the level of the tank and automaticallyreplenishes the bulk liquid supply as needed,creating business efficiencies for our customers.Novus pioneered vendor-managed inventoryfor feed industry bulk liquids in 1993. Sincethen, AIMS has improved supply chainefficiency and reduced environmentalimpact through the reduction of intermediatebulk container (IBC) and drum usage.In 2009, we upgraded the AIMS infrastructure.The new version of AIMS uses satellitecommunication with a submersible differentialpressure sensor for level measurement. Thenew platform provides precise and dependableinventory readings, a back-up power supplyand a local display of tank inventory.Novus customers can monitor their tankinventory levels and usage through the localdisplay as well as on the Internet viaNovus monitors the ALIMET level in AIMSNovus Premium Services at www.novusint.comtanks and automatically replenishes the supplyfor customers as needed.Novus International, Inc. Health through Nutrition 2009 | 62 63. Tough and flexible, NovusRecyclable, Low Densitybags can be printed onPolyethylene (LDPE)with water-based inks Continuous Improvement: Packagingthat do not use solvents Many Novus products are delivered to our customersor heavy metalsin bagsmore than 2 million per year. Last year, we understood that we had a real opportunity to improve our impact on the environment by taking a creative look at our product packaging. We formed a cross- departmental task force to research our options and to make recommendations for improvement. There were key considerations as we began to plan. Novus bags must be durable because they are shipped all over the world. They must be strong because they commonly hold 25 kilograms, or 55 pounds, of product. Finally, our bags must feature multilingual, printed text that is educational for customers and meets the regulatory requirements of importing countries. We worked with the American Feed Industry Association (AFIA) to ensure our bag design supported the Safe Feed / Safe Food initiative. The result is a bag made of recyclable, low- density polyethylene (LDPE). It is tough, flexible and can be printed on with water-based inks that do not use solvents or heavy metals. In 2009, we began using this bag to fill all shipments of our MINTREX and ACTIVATE products. This is the beginning of a multi-year process in which we will roll out the new bag design through our family of over 100 products.Each year, Novus ships more than 2 million bags of product to customers.KPI: EC2 and EN26Novus International, Inc. Health through Nutrition 2009 | 63 64. To help feed the world affordable, wholesome foodand achieve a higher quality of life.Novus International, Inc. Health through Nutrition 2009 | 64 65. Quality of LifeNovus International, Inc. Health through Nutrition 2009 | 65 66. Quality of Life At Novus, we focus our sustainability efforts onSustainable Culture, Global Vision improvements that matter, to make the most meaningful At Novus, sustainability begins at the individual level and is evident in the daily impact that we can. Our commitment begins with Novussactivities of each employee. It is demonstrated in the way that employees put into Mission, Vision and Core Values, where sustainability practice our collective aspirations, Novuss Mission, Vision and Core Values. Our is embedded, and manifests itself in a systemic, long-sustainable culture is based on minimized waste, collaboration and creating local term approach, based on our triple bottom line of social, solutions for our customers based on industry best practices. economic and environmental (SEE) responsibility. Sustainability in Practice Health through Nutrition is the purpose of our products We approach our work through the lens of sustainability and this is a requisite and programs. The collective efforts of our employees consideration at Novus. Every business project is cross-checked to ensure that are focused every day on achieving a higher quality our criteria for sustainabilitysocial, economic and environmental (SEE) are of life, for animals and people, through nutrition. Our achieved. heritage and core strength is science and it will always be the bedrock from which we continuously innovate. The Importance of Agriculture The importance of achieving our Vision comes full circle when you consider the growing demand for food on our planet. During the reporting timeframe of this report, the United Nations announced that by 2050 we will have to double our food production to meet global demand, using nearly the same water and arable land available today. Meeting this need can only be achieved through the technological innovation of companies like Novus. We are motivated to contribute to an agriculture industry that is equipped to provide nutritious, affordable food to people everywhere in the world and to do so through sustainable, responsible practices.Novus International, Inc. Health through Nutrition 2009 | 66 67. GRI Indicator IndexVision and Strategy1.1 A message from the President Page 21.2 Key impacts, risks and opportunities Pages 5-9Profile2.1 Name of the organization Front Cover2.2 Primary products Pages 37-532.3 Operational structure of the company (divisions, subsidiaries) Pages 12, 52-532.4 Location of headquarters Page 122.5 Countries of operation Pages 12, 24, 742.6 Nature of ownershipPage 122.7 Markets served Pages 12-16, 37-532.8 Scale of organizationPages 7, 122.9 Significant changesPages 20-21, 302.10Awards receivedPage 36Report Parameters3.1 Reporting period Page 13.2 Previous reportPage 13.3 Reporting cyclePage 13.4 Contact pointPage 813.5 Process for defining report contentPage 13.6 Boundary of the report Page 13.7 Any specific limitations of the report Page 13.8 Basis for reporting on subsidiariesPages 52-533.9 Data measurement and calculation basis Page 13.10Explanation of any restatements from previous reportsPage 13.11Significant changes from previous reportsPage 13.12GRI contents index This Page3.13Policy and current practicePages 5-9, 19Novus International, Inc. Health through Nutrition 2009 GRI INDICATOR INDEX | 68 68. GRIGovernance4.1Governance structurePage 194.2Chairman of board different than CEOPage 754.3Board structure Pages 19, 754.4How shareholders and employees provide recommendations to the board Page 194.5The Felt Fair Pay (FFP) system helps ensure all Novus employees This Page are fairly compensated. FFP helps us account for country variables such as the amount of paid vacation and the number of work-months in a calendar year. Through FFP, we can be assured that all Novus employees are getting paid at essentially the same rateaccording to their role levelno matter where they are in the world.4.6Processes to ensure conflict of interest avoidancePage 194.7Qualifications and expertise of governance body Page 754.8Internally developed statements and implementation status Pages 6-7, 194.9Procedures for governance oversight and managementPages 8, 194.10 We have an organization in which every employee documents his Page 8 and This Page or her key accountabilities in a Key Accountabilities Document (KAD). This starts with the CEO and cascades down through every single employee. These key accountabilities have a direct effect on Novuss short-term goals, three-year objectives, Critical Success Factors, and ultimately on our long-term strategy.4.11 Precautionary approach to principle Pages 6-7, 194.12 Externally developed initiativesPages 30-364.13 Memberships and associationsPages 36, 804.14 List of stakeholder groups engaged by organizationPages 36, 804.15 Basis for identifying stakeholders to engagePage 324.16 Approach to stakeholder engagementPages 9, 324.17 Key topics and concerns for stakeholdersPages 28-29, 31-34, 42-56 Novus International, Inc. Health through Nutrition 2009 GRI INDICATOR INDEX | 69 69. Key Performance IndicatorsEconomicJuly 2008 - Dec. 2008 Jan. 2009 - Dec. 2009ECWe believe that leading global companies understand that societyThis PageThis Pageand government provide the license for business to operate with theexpectation of partnership. Novus seeks to support growth of theanimal protein value chain by improving productivity, addressing localcommunity farming needs for diversification and sharing in managementof natural resources. Growth of Novus Nutrition Brands acknowledgesthe importance of human nutrition in economic growth and the importantcontribution of companion animals to the quality of life.EC2 Novus understands that climate change can result in risks and Pages 61, 63, This PagePages 61, 63, This Pageopportunities, affecting economic performance.EC6 Novus will conduct business with suppliers who are globally competitive This PageThis Pageand will provide the lowest long-term cost of ownership. Novus isdedicated to working closely with local suppliers to educate them aboutour strategic purchasing requirements. As appropriate, Novus willhelp local suppliers understand the need and potential actions for theirbusiness to be globally competitive.EC7 Novuss policy is to hire locally in each area of the world we are located. This PageThis PageEnvironmentENNovus is committed to operating in a way that recognizes that natural This PageThis Pageresources are finite. We incorporate renewable energy best practicesin the operation of our headquarters building and animal feed blendingplants throughout the world. We include our suppliers in industrylogistics programs that achieve energy efficiency targets.EN3 Direct energy consumption by primary energy sourcePages 20-21, 60Pages 20-21, 60Direct energy consumption by Direct energy consumption byprimary energy source: primary energy source: Natural Gas - 39,349.60 MCF Natural Gas - 108,906.20 MCF Electricity - 6,441,772.00 Electricity - 14,099,224.00KWHKWH Purchased Steam - 215.00 Purchased Steam - 473.00MMLB MMLBEN16Total direct and indirect greenhouse gas emissions by weight19,378 metric tons 43,929 metric tonsemissions of ozone-depleting substances by weightNovus International, Inc. Health through Nutrition 2009 KEY PERFORMANCE INDICATORS |70 70. KPIJuly 2008 - Dec. 2008Jan. 2009 - Dec. 2009EN19Emissions of ozone-depleting substances by weight 0 0EN22Total weight of waste by type and disposal method 181,970 metric tons 428,640 metric tonsEN22Liquid waste to local treatment 24,540 metric tons48,755 metric tonsEN22Liquid waste to deep well 157,264 metric tons 379,555 metric tonsEN22Solid waste 120 metric tons 234 metric tonsEN22Air emissions 47 metric tons96 metric tonsEN23Total number and volume of spills 0 0EN26Initiatives to mitigate environmental impacts of products and services, and Pages 20-21, 61, 63 Pages 20-21, 61, 63extent of impact mitigationLaborLAIntegrity is one of five tenets that define the Vision of Novus.This Page This PageHuman Resources policy articulates the framework for hiringand conditions of employment. Adhering to the highest standardsof excellence with respect to interactions with all stakeholders,employees, suppliers, business partners, our owners and thepublic is embedded in Novus Internationals business strategy.LA1 Total workforce by employment type, employment contract and regionPage 78 Page 78LA2 Total number and rate of employee turnoverPage 78 Page 78by age group, gender and regionLA4 Percentage of employees covered by collective bargaining agreements 6%12%LA7 Rates of injury, occupational diseases, lost days, and absenteeism, Page 79 Page 79and number of work-related fatalities by regionLA8 Education, training, counseling, prevention and risk controlNovus offers pre-taxprograms in place to assist workforce members, their families,reimbursements to employeesand their families for the costor community members regarding serious diseases of flu vaccinations. In responseto the H1N1 pandemic, Novusprovided anti-bacterial productsand prevention training.Additionally, the companyprovides fitness classes at nocost to global headquartersemployees.Novus International, Inc. Health through Nutrition 2009 KEY PERFORMANCE INDICATORS | 71 71. KPIHuman RightsJuly 2008 - Dec. 2008Jan. 2009 - Dec. 2009HR Novus is committed to attracting and retaining a diverse workforce This PageThis Page that delivers strong business results. We value individuals and support professional and personal development, especially in the areas of health and wellness. Novus, as a leading global company in health and nutrition, recognizes that flexibility and access to nutritious programs and products are critical to individual performance. Through Novuss providing of free access to healthy lunches and the fitness facility at Novus headquarters, employees can incorporate wellness into their daily routine. Novus also supports self-improvement through university degree and certification programs.HR4In 2009, Novus had zero incidents of discrimination. This PageThis PageHR6Child labor: Novus does not condone or allow child labor or any forced orThis PageThis Page compulsory labor in any of its operations around the world.HR7Forced or compulsory labor: Novus does not condone or allow child labor or This PageThis Page any forced or compulsory labor in any of its operations around the world.SocialSO Corruption, anti-competitive behavior and compliance are taken veryThis PageThis Page seriously throughout Novus. In addition to an active Compliance Committee, employees are annually required to sign a Compliance form, acknowledging awareness of the importance of adherence to Novus regulations about corruption and anti-competitive behavior to continued employment.SO2Percentage and total number of business units analyzed for risks related Novus executed a Novus executed aglobal, self-assessmentglobal, self-assessment to corruptionfor fraud in CY2009. for fraud in CY2009. Novus International, Inc. Health through Nutrition 2009 KEY PERFORMANCE INDICATORS | 72 72. KPIJuly 2008 - Dec. 2008Jan. 2009 - Dec. 2009SO3Percentage of employees trained in organizations anti-corruption policies This Page This Page and procedures: All new employees receive training in anti-corruption policies and procedures. Refresher courses and training are executed annually as appropriate based on managements recommendations. Novus employees are requested annually to positively affirm their compliance with Novus Integrity System, which contains Novuss anti-corruption policies and procedures; compliance in completion of this by all Novus staff globally is 99%.SO5Public policy positions and participation in public policy development and None were developed inNone were developed in lobbying CY2009. CY2009.SO8Monetary value of significant fines and total number of non-monetary 0 0 sanctions for non-compliance with environmental laws and regulationsProductsPR Novus develops processes and product technology to improve the This Page This Page nutrition and health of animal livestock, companion animals and humans. Collaborating with local researchers and industry experts serves to reduce the risk from misuse of processes or product technology.PR3Type of product and service information required by100% of our products are100% of our products procedures, and percentages of significant products andregistered through government are registered throughagencies throughout the government agencies services subject to such information requirementsworld.throughout the world.PR6Programs for adherence to laws, standards and voluntaryPrior to external release, allPrior to external release, all codes related to marketing communications, including advertising, marketing andadvertising, marketing andpublic relations materialspublic relations materials advertising, promotion and sponsorshipare reviewed by Novuss are reviewed by NovussRegulatory and LegalRegulatory and Legaldepartments.departments.PR9Monetary value of significant fines for non-compliance with laws and There were no fines.There were no fines. regulations concerning the provision and use of products and servicesNovus International, Inc. Health through Nutrition 2009KEY PERFORMANCE INDICATORS | 73 73. Appendix 2.5: Countries of Operation CITYCOUNTRY OPERATION Buenos AiresArgentina Major Sales Office Melbourne Australia Major Sales Office SydneyAustralia Major Sales Office BrusselsBelgium Regional Headquarters Porto AlegreBrazilMajor Sales Office So Paulo BrazilRegional Headquarters; Manufacturing Plant; Major Sales Office Beijing China Research Facility ShanghaiChina Regional Headquarters; Manufacturing Plant BogotaColombiaMajor Sales Office LondonEngland Major Sales Office NantesFranceMajor Sales Office GudensbergGermany Manufacturing Plant Hyderabad India Major Sales Office Jakarta Indonesia Major Sales Office MilanoItaly Major Sales Office Tokyo Japan Major Sales Office Nairobi Kenya Major Sales Office Kuala LumpurMalaysiaMajor Sales Office Mexico City MexicoRegional Headquarters ManilaPhilippines Major Sales Office WarsawPolandMajor Sales Office MoscowRussiaMajor Sales Office Singapore Regional Headquarters; Manufacturing Plant Seoul South Korea Major Sales Office MadridSpain Major Sales Office TaipeiTaiwanMajor Sales Office Bangkok ThailandRegional Headquarters IstanbulTurkeyMajor Sales Office Beaumont, TXUnited States Manufacturing Plant Chocolate Bayou, TX United States Manufacturing Plant Lincoln, NE United States Manufacturing Plant Little Rock, AR United States Manufacturing Plant St. Charles, MO United States Global Headquarters Caracas Venezuela Major Sales Office Ho Chi Minh City VietnamMajor Sales Office; Research FacilityNovus International, Inc. Health through Nutrition 2009 APPENDIX | 74 74. APPENDIX4.2, 4.3 and 4.7: Chairman and Board Members NAME BOARD POSITIONTITLECOMPANYSusumu Katagiri Director - Chairman SVP and DOO Chemicals DivisionsMitsui & Co. (U.S.A.), Inc.Makoto Masuda Director - Vice ChairmanDirector, General Manager, Finance Nippon Soda & Co., Ltd.Koichiro Sato Secretary Novus Vice President, Planning Novus International, Inc.Toshimich Okubo DirectorNovus Executive Vice President Novus International, Inc.Masami Yokoyama DirectorNovus Executive Vice President Novus International, Inc.Kohei Taguchi DirectorGeneral Manager, AgriScience DivisionMitsui & Co., Ltd.Kenichi KitajimaDirectorGeneral Manager, Strategic Businesses Development Division Mitsui & Co., Ltd.Tomofumi OsakiDirectorGeneral Manager, Investment Management DepartmentMitsui & Co. (U.S.A.), Inc.Tsutomu SakumaDirectorDirector, Corporate Planning DepartmentNippon Soda & Co., Ltd.Hiroyuki HondaDirectorGeneral Manager, Nutrition DepartmentMitsui & Co. (U.S.A.), Inc.Thad W. Simons, Jr. DirectorChief Executive Officer and PresidentNovus International, Inc.Alice V. SterkelAssistant Secretary Vice President Legal Council and Chief Compliance OfficerNovus International, Inc.John C. WadeTreasurer Senior Vice President Finance and Chief Financial OfficerNovus International, Inc.Steve Lorbert Quality Assurance Officer Vice President Chemistry and Quality Assurance Novus International, Inc.Novus International, Inc. Health through Nutrition 2009 APPENDIX | 75 75. APPENDIXTrademarks ACIDOMATRIX is a trademark of Novus International, Inc. ACIDOMIX is a registered trademark of Novus Deutschland GmbH ACTIVATE is a trademark of Novus International, Inc., and is registered in the United States and other countries ADVENT is a trademark of Viridus Animal Health, LLC, and is registered in the United States and other countries AGRADO is a trademark of Novus International, Inc., and is registered in the United States and other countries AIMS is a service mark of Novus International, Inc., and is registered in the United States and other countries ALIMET is a trademark of Novus International, Inc., and is registered in the United States and other countries ARENUS is a trademark of Novus Nutrition Brands, LLC, and is registered in the United States and other countries ARTINIA is a trademark of Novus Nutrition Brands, LLC ASSURE is a registered trademark of Novus Nutrition Brands, LLC CAPTURA is a registered trademark of Novus International, Inc. CIBENZA is a trademark of Novus International, Inc. DHA GOLD is a registered trademark of Martek Biosciences Corporation ESC is a registered trademark of ESM Technologies, LLC FEEDGUARD is a trademark of Novus International, Inc. GLYTREX is a trademark of Novus International, Inc. GST is a trademark of Novus Nutrition Brands, LLC, and is registered in the United States and other countries Novus International, Inc. Health through Nutrition 2009 APPENDIX | 76 76. APPENDIXIDEA is a trademark of Novus International, Inc.MAAC is a trademark of Novus International, Inc., and is registered in the United States and other countriesMERA is a trademark of Novus International, Inc.MFP is a trademark of Novus International, Inc.MHA is a trademark of Novus International, Inc., and is registered in the United States and other countriesMINTREX is a trademark of Novus International, Inc., and is registered in the United States and other countriesNATUGUARD is a trademark of Novus International, Inc., and is registered in the United States and other countriesNEM is a registered trademark of ESM Technologies, LLCNOVUS is a trademark of Novus International, Inc., and is registered in the United States and other countriesOASIS is a trademark of Novus International, Inc., and is registered in the United States and other countriesPRO-STABIL is a trademark of Novus Deutschland GmbHPROVENIA is a trademark of Novus International, Inc.SANTOQUIN is a trademark of Novus International, Inc., and is registered in the United States and other countriesSOLIS is a trademark of Novus International, Inc., and is registered in the United States and other countriesSURF.ACE is a trademark of Novus International, Inc.STEADFAST is a trademark of Novus Nutrition Brands, LLC, and is registered in the United States and other countriesSTRATUM NUTRITION is a trademark of Novus Nutrition Brands, LLCZORIEN is a trademark of Novus International, Inc., and is registered in the United States and other countriesNovus International, Inc. Health through Nutrition 2009 APPENDIX | 77 77. APPENDIXLA1: Total workforce by employee type, employment contract and region July through December, 2008January through December, 2009Employment TypeEmployment ContractAsiaEAMELATAM NATotalAsia EAMELATAM NATotalFull-TimeSalaried1315447 213 445 171 65 59259554 Hourly0 6 510 210 11 822 41Full-Time Total1316052 223 466 171 7667 281595Part-TimeSalaried0 0 0 2205 0 27 Hourly0 5 0 1600 0 22Part-Time Total0 5 0 3805 0 49Total1316552 226 474 171 81 67285604LA2: Total number and rate of employee turnover by age group, gender and region July through December, 2008 January through December, 2009GenderAge GroupsAsia EAMELATAM NA TotalAsia EAME LATAMNA TotalFemaleUnder 25 0 1 00 1 10 0 0 126-350 3 22 7 70 1 61436-450 0 01 1 10 0 4 546-550 0 10 1 00 0 0 0Over 550 0 00 0 10 0 2 3Female Total 0 4 3310100 11223MaleUnder 25 0 0 00 0 11 0 0 226-351 0 00 1 10 4 2 736-450 3 20 5 50 3 21046-550 2 13 6 20 0 2 4Over 550 0 00 0 00 0 2 2Male Total 1 5 3312 91 7 825Total1 9 6622191 82048 Novus International, Inc. Health through Nutrition 2009 APPENDIX | 78 78. APPENDIXLA7: Rates of injury, occupational disease, lost days and absenteeism, and number of work-related fatalities by region 2008 2009 RegionSG&A Work Related Injuries Region SG&A Work Related Injuries Asia0Asia 0 EAME* 0EAME*2 LATAM 0LATAM1 NA0NA 0 Total 0Total3 * Lost days: 0 * Lost days: 2 Novus International, Inc. Health through Nutrition 2009 APPENDIX | 79 79. 4.13 and 4.14: Memberships and Associations APPENDIXAlabama Poultry & Egg Association Federation of Animal Science Societies (FASS)North Carolina Poultry FederationAlabama Poultry Association Florida Feed & Grain Association North Dakota Poultry IndustriesAlabama Poultry Producers Georgia Egg ProducersNorthwest Poultry Council Vancouver, WAAmerican Association of Avian Pathologists (AAAP) Georgia Feed & Grain Association Atlanta, GA Ontario Agribusiness AssociationAmerican Association of Swine Veterinarians (AASV)Georgia Poultry Federation Gainesville, GA Ontario Institute of AgrologistsAmerican Chemical Society Groundwater Protection Council Pacific Egg & Poultry Association (PEPA) Sacramento, CAAmerican Dairy Science Association (ADSA) Illinois Farm Bureau PennAg Industries AssociationAmerican Feed Industry Association (AFIA) Illinois Pork Producers AssociationPet Food InstituteAmerican Food Institute Institute of Food TechnologistsPoultry Middle East & North AfricaAmerican Food Safety InstituteInternational Fishmeal and Fish Oil Organisation (IFFO)Poultry Science Association (PSA)American Institute of Chemical EngineersInternational Society of MycotoxicologyProfessional Animal Auditor Certification OrganizationAmerican Meat Science Association Iowa Pork Producers Association(PAACO)American Oil Chemists Society Iowa Poultry Association Society of RheologyAmerican Registry of Professional Animal Scientists Iowa Turkey Federation South Carolina Poultry Federation (ARPAS)Jordanian Agriculture Engineering AssociationSouthern Feed & Grain AssociationAmerican Society for Nutrition Jordanian Businessmen AssociationSouthern Poultry Science Association American Journal of Clinical Nutrition Licensing Executives Society Space Solar Alliance for Future Energy (SSAFE)American Society for Testing of Materials Louisiana Poultry AssociationSt. Louis Agribusiness ClubAmerican Society of Agricultural & Biological Engineers Louisiana Poultry Federation Baton Rouge, LA Tennessee Poultry & Egg Association Nashville, TNAmerican Society of Animal ScienceMidwest Poultry Consortium Texas Board of Professional EngineersAmerican Society of Mechanical EngineersMidwest Poultry Federation Texas Chemical CouncilAmerican Society of Pharmacognosy Minnesota Turkey Growers Association Texas Poultry Federation Austin, TXAmerican Soybean Association (ASA)Mississippi Feed & Grain Association The Poultry Federation Little Rock, ARAmerican Veterinary Medical Association (AVMA)Mississippi Poultry AssociationU.S. Poultry & Egg Association Tucker, GAAnimal Nutrition Association of CanadaMissouri Soybean Association U.S. Soybean Export Council (USSEC) & American SoybeanAsian Fisheries Society National AgriMarketing Association Association International Marketing (ASA-IM)Asociacin Mexicana de Especialistas en Nutricin AnimalNational Animal Supplement Council United Egg Producers Alpharetta, GA (AMENA)National Association of Credit ManagementUnited States Grains Council (USGC)Asociacin Nacional de Especialistas en Ciencias Avcolas(NACM) Gateway Region University of Guelph Alumni Association (ANECA)National Association of Credit ManagementVirginia Poultry FederationAssociation for Corporate Growth (NACM) North CentralVirginia State Feed AssociationAssociation of Energy Engineers National Association of Farm Broadcasters (NAFB) Washington University Executive MBAAssociation of Registered Professional Animal ScientistsNational Biodiesel Board Alumni Board Member (ARPAS)National Cattlemens Association Wisconsin Poultry & Egg IndustriesBroiler & Egg Association of MinnesotaNational Chicken Council Washington DC World Aquaculture AssociationCalifornia Poultry Federation (CPF) Modesto, CA National Coalition Food Agricultural Research (NC-FAR) World Aquaculture SocietyCarolina Feed Industry AssociationNational Corn Growers Association (NCGA) Worlds Poultry Science Association (WPSA)Center for Food Integrity National Pork Producers Council (NPPC)Comparative Nutrition Society National Renderers Association (NRA)Council of Agricultural Science & Technology (CAST) National Small Business AssociationDelmarva Poultry Industry Association National Turkey Federation Washington DCEquine Science SocietyNebraska Poultry IndustriesFCIBNorth America Game Bird AssociationNovus International, Inc. Health through Nutrition 2009 APPENDIX | 80 80. Novus Matching Gift Program Recipients APPENDIX100 Neediest Cases Missouri Botanical GardenUniversity of DelawareAdvocates for Self GovernmentMothers Without BordersUniversity of New Hampshire Foundation, Inc.American Cancer SocietyMultiple Myeloma Research Foundation University of UtahAmerican Heart Association National Council on Alcoholism & Drug AbuseVirginia Tech Foundation, Inc.American Red Cross (NCADA)Vision for Youth, Inc.American Society for the Prevention of National Multiple Sclerosis SocietyVitamin AngelsCruelty to Animals (ASPCA) National Tiger Sanctuary (GREEN) West Lincoln Broadwell SchoolArbor Day Foundation National Trust for Historic Preservation Wide Horizons for ChildrenArts & Education Council Office of Stewardship & Development Wyman CenterAuburn University Fisheries Alumni Archdiocese of St. Louis XXXXY FundBJC HospiceOffice of University Development Yellowstone Park FoundationCATO Institute Penn State University Old Settlers YMCA of the OzarksColorado College Partners For MadagascarContemporary Art MuseumPioneer ClubsDance St. LouisPlanned Parenthood of St. LouisDisabled American Veterans Princeton UniversityDonald Danforth Plant Science Center Purdue University Annual SciencesEcclesiastical LadiesRelay for Life of Avery CountyELCA World Hunger Appeal Robert Morris UniversityFriends of Tower Grove ParkRotary Club of Ryde (Novus Australia)Guardian Angel Settlement AssociationSalvation Army Contact UsHaggai Institute Shakespeare Festival St. LouisHansen FoundationSidney Dollars for ScholarsIf you have comments on Health through NutritionHeifer International Sister to Sister Foundationor would like further information, please visitHeres Life Inner City Smiser Alumni Center www.novusint.comHonor Society of Phi Beta KappaSt. Jude Childrens Research HospitalHospice of Southern Illinois St. Louis Area Food Bank Alternatively, you may contact the Novus SustainabilityHumane Society of Missouri St. Louis Art MuseumTeam by sending an email to sustainability@novusint.comHuntingtons Disease Society of AmericaSt. Louis Auburn Club Scholarship FundIowa Foundation for Agriculture AdvancementSt. Louis Food Bankor request in writing to the following address:Iowa State University (ISU) Foundation St. Louis Zoo Marlin Perkins SocietyJames S. McDonnell USO Lambert St. Louis Airport St. Louis Zoological ParkNovus International, Inc.Jewish Federation of St LouisSusan G. Komen for the CureAttn: Sustainability TeamKETC-TV (PBS) Channel 9The Magic HouseKFUO-FM Circle of FriendsThe Ronald Reagan Foundations20 Research Park DriveKWMU-FM Public Radio Thunderbird Annual FundSt. Charles, MO 63304Lawrence UniversityTruman State University Foundation United States of AmericaLeukemia & Lymphoma SocietyUnited States Equestrian Team FoundationLiddy Shriver Sarcoma Initiative United Way of ArkansasMaryville University United Way of Greater St. LouisPlease provide your name, affiliation and postal and/Midtown Center University of Arkansas, Chemical Engineering Dept. or email address. You may obtain an electronic copy ofNovuss sustainability report at www.novusint.com 81. Health through Nutrition2009 Sustainability Report