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biotechnology
Benefits by design: Novonesis CEO’s strategy for sustainable growth
Ester Baiget, CEO of Novonesis, discusses how the Danish biosolutions powerhouse leverages modern technology and its 'library of strengths' to transform food production and washing operations....
Novonesis CEO Ester Baiget explains how the Danish biosolutions powerhouse uses advanced tech and its ‘library of strengths’ to transform food production and laundry processes.
Novonesis, the Danish powerhouse born from the 2024 merger of enzyme and cultures specialists Novozymes and Chr. Hansen, is rapidly becoming the world leader in the field of biosolutions. By leveraging the power of microbiology with science, they increasingly transform the way the world produces, consumes, and lives.
But the process of blending two corporate cultures, integrating complex technologies, and navigating regulatory roadblocks requires more than science alone. For CEO Ester Baiget, the key is leadership rooted in humility, transparency, and a relentless focus on sustainable growth.
“We’re in a really, really good place,” she says, reflecting on the company’s journey since the merger in January 2024. But Baiget warns against complacency. “The worst thing you can do in an integration is to ever celebrate success. You always have to be thinking and seeking what can go wrong, looking forward, and putting the measurements in place.”
But we asked everyone, ‘What do you want to take with you?’ and, just as importantly, ‘What would you be OK leaving behind?’
Merging cultures, building a new home
In chemistry and biology, not all combinations lead to harmony. The same is true for mergers, where blending corporate cultures can trigger unpredictable reactions. Yet Baiget, a Spanish chemical engineer by training, is confident that the combined company is well positioned to become much more than the sum of its parts.
With almost 11,000 employees and annual sales of €4bn, Novonesis achieved an employee engagement score of 8.5 just over a year after the merger – a strong signal of cohesion.
Preparation was key. In the 14 months before merging, employees were asked to identify the cultural “ingredients” they wanted to carry forward and what they were willing to leave behind. “We made it very clear: we’re moving to a new home,” Baiget explains. “But we asked everyone, ‘What do you want to take with you?’ and, just as importantly, ‘What would you be OK leaving behind?’”
Supported by anthropologists and sociologists, this feedback was distilled into a shared vision for Novonesis. Changing the company name was a symbolic but important step, signaling not a takeover but the creation of something new. “We build the house, we draw the house, we put the name to the house, we put in the cultural commitment pillars of that house, and then we draw the path from both companies to get there,” she says.
“With the right policies and investments, the global biosolutions market could generate €877bn in economic value and create over five million jobs by 2035.”
A library of strengths unlocking nature’s potential
Biosolutions are sustainable, biology-based technologies that harness nature’s tools – such as enzymes, microbes, fermentation, and bio-refinement – to tackle environmental, agricultural, industrial, and food system challenges.
With the right policies and investments, the global biosolutions market could generate €877bn in economic value and create over five million jobs by 2035, according to a report produced by the Amsterdam Data Collective.
Novonesis is a key player in this transformation, boasting 10,000 patents and a catalogue of over 100,000 microbial strains. But managing such an extensive portfolio and turning it into real-world impact is no small feat. “We have a library of strengths – we don’t have a pile of strengths,” Baiget explains. “Everything is structured, classified, and traceable across multiple dimensions.”
To unlock this biological library’s potential, Novonesis combines AI, CRISPR, and advanced bioengineering with a world-class R&D team skilled in biotechnology and data analytics. Baiget calls this combination the company’s “secret recipe of success.”
“The beauty isn’t just in the library itself,” she explains. “It’s in how we connect it to real-world applications and needs. How do you develop an enzyme that breaks down proteins to improve starch processing, or create probiotics that help cultures thrive?”
A tangible example is gluten sensitivity. For people with mild gluten sensitivity (not full intolerance), Novonesis designs enzymes that break gluten into smaller, more digestible proteins. It then develops microbes to further digest these proteins, enhancing overall digestibility. “This is the magic we’re creating,” says Baiget.
Customer-centric innovation
Novonesis draws on its biological library, alongside close customer relationships, to create products ranging from enzymes that improve the quality, texture, and shelf life of bread to solutions that reduce plastic waste by enabling polymer and microplastic replacements. This innovation-driven approach supports a robust 38% profit margin.
“We are all about benefits,” smiles Baiget. “We [represent] 1% to 5% of the cost of the products our customers produce, but we are a big enabler of the value they generate. This is why we are outgrowing all the markets we serve.”
Strategic investments in regional capabilities – from Latin America to South Asia – enable the company to stay close to customers and respond to local trends, particularly in expanding segments such as household care.
For instance, Novonesis has built a ‘powder lab’ in India to co-develop detergents tailored to local preferences, whether soap bars or sachets. In Turkey, a baking lab has opened doors to enzyme applications in flatbreads. “It’s not that sophisticated, I’m afraid,” Baiget adds modestly. “It’s just about being close to our customers and playing in a different way.”
I don’t think I’m very authoritarian; I think I’m rather living all the colors. But in some areas, it is black and white – and this is one of them.
Sustainability is ‘black and white’
Baiget, who spent 25 years at Dow Chemical before becoming Novozymes CEO in 2020 amid the COVID-19 crisis, sees her role as asking the right questions rather than having all the answers. But when it comes to sustainability, she is uncompromising.
Since 2018, Novonesis has reduced its Scope 1 and 2 emissions by more than 60% – all while growing revenues by 20%.
Named one of TIME magazine’s Top 100 Climate Leaders in 2024, Baiget understands the broader responsibilities of sustainable production. “It’s not just about CO₂ emissions,” she says. “It’s about water intensity, your biodiversity footprint, how you produce, your role in the communities where you operate, and how you treat your people. It’s about making sure everyone feels at home – like they belong.”
Sustainability, she believes, is also a powerful talent magnet. “If your purpose of bettering the world with biology is only true in what you do, and not in how you do it, what kind of purpose is that? What kind of talent would you attract?”
She adds, “That honesty – and brutal transparency – is what keeps you moving. There’s only one compass that operates everywhere.” Baiget stresses that there is no room for compromise or negotiation. “I don’t think I’m very authoritarian; I think I’m rather living all the colors. But in some areas, it is black and white – and this is one of them.”
Regulatory headwinds are slowing progress
Despite the sector’s momentum, regulatory hurdles remain a major barrier. Baiget highlights that biosolutions are still regulated under frameworks designed for traditional chemicals, a mismatch that stifles innovation. Biosolutions are naturally absorbed and broken down by the environment, yet must navigate the same lengthy and complex approval paths designed to assess persistent synthetic molecules.
She acknowledges that current regulations were developed with the best knowledge available at the time. “Now, we need a new framework that reflects today’s science and solutions,” she insists. “There’s a responsibility for companies to sit at the table with regulators and explain how ‘good’ can look and the need for creating a different path. Because it’s not only about delivering the answers of the future: decarbonization, lower CO₂, and healthier lives. It’s also about creating jobs and creating wealth.”
If your job as a CEO is to help your company be better, then much of what you do is connect.
A global leader shaping the future
The scale of these challenges is the reason why Baiget devotes significant time to engaging with global stakeholders. In addition to serving on the board of Dutch paint company AkzoNobel, she co-chairs the World Economic Forum’s Alliance of CEO Climate Leaders, serves as Vice Chair of The B Team, and is a member of the board of the Science-Based Targets Initiative. These roles inform her leadership philosophy – tuning into global signals and translating them into strategic action.
“It’s how you define your job,” she says. “If your job as a CEO is to help your company be better, then much of what you do is connect. And for that, you need to get out, sniff, and bring those dots home.”
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