Climate Change Data

Environmental Metrics

ESG Focus Areas

• Access to healthcare
• Employee health & wellness
• Climate change
• Supply chain sustainability
• Product stewardship
• Community engagement
• Diversity & Inclusion
• Compliance

Environmental Achievements

• Reduced facility carbon dioxide emissions by 12.7% on an absolute basis compared to a 1990 baseline.
• Opened two more solar power installations, bringing the total to 10 in the U.S.
• Reduced hazardous waste by 4% and non-hazardous waste by 6% in the past two years.
• Increased product shipped by rail instead of truck by 18% in 18 months in the U.S. and Canada.
• Decreased water consumption by 6% in the past two years.

Social Achievements

• Signed a royalty-free license agreement to make HIV/AIDS drug more affordable in Africa.
• Launched ACCESS2WELLNESS™ website to improve access to assistance programs for uninsured patients in the U.S.
• Campaign for Nursing’s Future™ resulted in a 57% increase in enrollment in nursing programs.
• Achieved a tobacco-free environment at 98% of worldwide workplaces.
• Expanded anonymous reporting pathways for ethical concerns.

Governance Achievements

• Created new compliance officers in three business segments and a central Corporate Compliance Committee.
• Launched a corporate blog to engage with stakeholders.
• Implemented a retail pharmacy card through Patient Assistance Foundation.

Climate Goals & Targets

Environmental Challenges

• Patent expirations
• Increased regulatory scrutiny
• Need for improved access to products
• Productivity of research and development
• Global challenge of climate change
• Sustainable supply chain
• Lifecycle issues of some products
• Counterfeit products
• Balancing affordable healthcare with costs of new products
• Improving efficiency of patient assistance programs
• Reversing decrease in nursing school faculty
• Extending ethical behavior standards to external manufacturers
• Assessing risks of pharmaceuticals in the environment
• Continuing to reduce environmental impacts beyond initial improvements
• Supporting stronger public policy for responsible energy management and climate change.

Mitigation Strategies

• Integrated Pfizer Consumer Healthcare
• Implemented Health Care Regulatory Guidance Documents for Promotional and Marketing Practices
• Expanded pathways for anonymous reporting of ethical concerns
• Signed royalty-free license agreement with Aspen for HIV/AIDS drug distribution in Africa
• Launched ACCESS2WELLNESS™ website
• Implemented retail pharmacy card
• Campaign for Nursing’s Future™
• Established five-year Healthy Planet goals
• Investing in renewable energy (solar, geothermal)
• Purchasing Renewable Energy Certificates (RECs) and carbon offsets
• Improving fleet efficiency (hybrid vehicles)
• Forest Products Purchasing Guidelines
• Standards for Responsible External Manufacturing
• Supplier diversity program
• SmartWay transportation program
• Product stewardship program
• Green chemistry practices
• Design for Environment principles
• Addressing pharmaceuticals in the environment through research and partnerships.

Supply Chain Management

Supplier Audits: Evaluated nearly 20% of external manufacturers by end of 2007; goal of 100% by 2010.

Responsible Procurement

• Compliance with legal requirements related to business conduct, labor practices, and EHS regulations.
• Standards for Responsible External Manufacturing.
• Forest Products Purchasing Guidelines.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G3 (partially)

Certifications: ISO 14001

Sustainable Products & Innovation

• Paraben-free baby products
• Recycled packaging
• Energy-efficient diagnostic equipment

Awards & Recognition

• Green Power Partner of the Year (multiple years)
• Green Power Leadership Award (multiple years)
• Top Corporation for Women Businesses
• Corporation of the Year
• America’s Most Admired Companies
• World’s Most Respected Companies
• 100 Best Companies for Working Mothers
• and others listed on page 39

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Economic
• Governance

Environmental Achievements

• Reduced carbon dioxide emissions at all company-owned facilities by 9 percent on an absolute basis compared to 1990, while worldwide sales rose by more than 400 percent.
• Obtained 34 percent of electricity from renewable resources.
• Reduced hazardous and non-hazardous waste generation in company-owned facilities by 16 percent from 2005–2008.
• Amassed more than 2,100 hybrid vehicles in the U.S. fleet.

Social Achievements

• Disclosed grants for professional education and charitable contributions made by U.S. pharmaceutical companies on operating company websites.
• Signed a royalty-free license agreement with Emcure to distribute HIV/AIDS medicine in least-developed markets at a lower price.
• Implemented new sales and marketing codes in U.S. pharmaceuticals and medical devices and diagnostics businesses.
• Gave over 156,000 needy patients in the U.S. over 878,000 units of prescription medicines through the Patient Assistance Program.
• Supported over 100 HIV/AIDS philanthropy programs in over 50 countries.

Governance Achievements

• Established a Corporate Compliance Committee to provide oversight for all health care compliance activities.
• Implemented new sales and marketing codes and direct-to-consumer communications codes in the U.S. pharmaceuticals and medical devices and diagnostics businesses.
• Committed to posting payments to physicians by June 2011.

Climate Goals & Targets

Environmental Challenges

• Extending ethical, quality, and corporate citizenship standards to external suppliers.
• Expanding transparency initiatives while maintaining the benefits of a decentralized business model.
• Maintaining citizenship and social responsibility activities despite challenging global economic conditions.
• Building on partnerships to develop and make available new treatments for diseases prevalent in the developing world.
• Continuing to implement mechanisms to address contractor safety.
• Achieving carbon dioxide reductions in company-owned facilities as the business grows.
• Assessing and managing potential risks of pharmaceuticals and personal care products to the environment.
• Driving new growth from existing businesses and new ventures, and expanding global reach despite a difficult worldwide economy.
• Reducing the risk to patients and consumers from growing counterfeit activity.
• Protecting intellectual property rights.
• Overcoming scientific and regulatory challenges to sustain the productivity of research and development.
• Collaborating with others to drive meaningful health care reform.

Mitigation Strategies

• Revised Contractor Management standard to ensure sufficient qualification and competence of contractors.
• Implemented a worldwide Safety Time-Out! to reflect on safety challenges and prevent accidents.
• Developed a new product lifecycle to identify ways to green products.
• Increased vigilance to reduce environmental noncompliance events.
• Increased training efforts and categorized drivers according to risk level to focus efforts on high-risk drivers.
• Expanded the Johnson & Johnson Volunteer Support Program (VSP) to include retirees and employees outside the United States.
• Developed Guidelines for Reusability to make refillable packaging viable.
• Integrated sustainable practices into core procurement processes and the supply chain.
• Recruited new suppliers into the EPA’s Green Supplier Network.
• Developed a proprietary screening process to score ingredients and products for environmental impacts.
• Evolved supplier raw material questionnaire to include criteria to address key product stewardship attributes.

Supply Chain Management

Supplier Audits: 35% of external manufacturers audited against Standards for Responsible External Manufacturing

Responsible Procurement

• Compliance with applicable legal requirements related to business conduct, labor and employment practices, and the Policy on Employment of Young Persons.
• Standards for Responsible External Manufacturing for external manufacturers of finished products or active pharmaceutical ingredients.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events resulting in facility closure, supply chain disruption, or loss of inventory.

Transition Risks

• Increased energy costs due to taxes and renewable-energy directives.
• Increased costs associated with tracking and managing climate change issues.
• Costs associated with increased investment in CO2 reduction projects.

Reporting Standards

Frameworks Used: GRI G3 Guidelines

Certifications: ISO 14001

Sustainable Products & Innovation

• JOHNSON’S® Baby Long Protecting Cream

Awards & Recognition

• Fortune magazine's Most Admired Companies
• The World’s Most Reputable Companies (Reputation Institute)
• World’s Most Respected Companies (Barron’s)
• Top 10 Companies for Executive Women (Diversity Inc)
• Top 10 Companies for Women Executives (National Association for Female Executives)
• 100 Best Companies for Working Mothers (Working Mother magazine)
• Most Socially Responsible Companies (Boston College Center for Corporate Citizenship)
• Outstanding Corporate Citizen (America’s Blood Centers)
• Most Admired Pharmaceutical Companies (Med Ad News)
• Benjamin Franklin Award for Public Diplomacy (U.S. State Department)
• Top 50 Companies for Diversity® (DiversityInc)
• Best Places to Work for Gay, Lesbian, Bisexual and Transgender Equality (Human Rights Campaign Foundation)
• Sodalitas Social Award, Best Sustainability Initiative
• Dow Jones Sustainability Index, North America
• Most Admired U.S. Companies (Harris Interactive)
• FTSE4Good Index
• Safety Performance Award, Gold Class 1
• CEO Cancer Gold Standard™ Award
• Wall Street Journal Asia 200 Survey
• Facility of the Year
• Tell Award
• Top 50 Hybrid Fleets
• Standard & Poor’s New U.S. Carbon Efficient Index
• Award for Business Excellence (Global Business Coalition)
• Access to Medicine Index

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Combined reduction in Scope 1, 2 and 3 emissions between 2016 and 2021 equal to 15% (for categories reported above only).
• Between 2016 and 2022, Johnson & Johnson reduced its global Scope 1 & 2 emissions by 41%.
• Between 2016 and 2022, Scope 3 emissions for the categories reported decreased 22% (for categories reported above only).
• In 2022, 67% of Johnson & Johnson global electricity use came from renewable sources (100% in Europe).

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Engage key suppliers in decarbonisation strategies

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GHG Protocol Corporate Standard

Certifications: ISO 14001 (91% of manufacturing and R&D sites globally)

Environmental Metrics

ESG Focus Areas

• Better Health for All
• Innovation
• Our People
• Environmental Health
• Responsible Business Practices

Environmental Achievements

• Helsingborg, Sweden site achieved carbon (CO2)-neutral status for all energy sources across manufacturing, R&D, and warehouse facilities.
• 25% of the company's electricity use came from renewable energy sources.
• CO2 emissions decreased by 21% globally since 2010 (Scope 1 and Scope 2).

Social Achievements

• mMitra program positively impacted the lives of one million women and their children in India.
• Launched 8 weeks Global Parental Leave Standard.
• Donated 1.2 billion VERMOX (mebendazole) doses since 2006.

Governance Achievements

• Established the Johnson & Johnson Enterprise Governance Council (EGC) in early 2016 to enhance corporate governance structure.
• 51% of supplier spend represented by suppliers enrolled in Sustainable Procurement Program.

Climate Goals & Targets

Environmental Challenges

• Delays in tube and pump recyclability efforts.
• Enrolling suppliers covering 80% of spend in Sustainable Procurement Program (only 51% achieved).
• Accurately predicting and measuring the reduction in infection rate for VERMOX donations is not feasible.

Mitigation Strategies

• Taking corrective action to improve progress on recyclability target.
• Implementing ongoing and new pilot projects in China, Mexico, Philippines, Russia, and Thailand to expand healthcare access.
• Adjusted VERMOX target to remove reporting on infection reduction rate.

Supply Chain Management

Responsible Procurement

• Sustainable Procurement Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water and resource scarcities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Third-party Assurance: ERM Certification and Verification Services Inc.

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 17

Commitment focused on health workforce, women’s and children’s health, essential surgery, global disease challenges, and environmental health.

Sustainable Products & Innovation

• PROXISURE Suturing Device
• ACUVUE OASYS 1-DAY Contact Lenses
• SYMTUZA

Awards & Recognition

• Fortune’s 2017 Change the World List (#9)
• Clarivate Analytics Top 100 Global Innovator
• Gartner Top 25 Supply Chain Index (#13)
• U.S. EPA’s SmartWay Excellence Award
• BRAKE Fleet Safety Awards Global Road Safety Award
• Thai FDA Quality Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Supply Chain Sustainability
• Renewable Energy

Environmental Achievements

• Reduced Scope 1 & 2 emissions by 34% compared to 2016 baseline.
• Sourced 52% of electricity from renewable sources.
• Completed 19 renewable energy and energy efficiency projects through the CO2 Capital Relief Program.

Social Achievements

• Expanded the Johnson & Johnson Supplier Sustainability Program.
• Launched the J&J Centers for Global Health Discovery.

Governance Achievements

• Board-level oversight of climate-related issues.
• Executive compensation linked to ESG goals.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events.
• Challenges in sourcing renewable electricity in certain countries due to market structure and regulatory barriers.
• Difficulty in allocating emissions to different customers due to diverse product lines and complex supply chains.

Mitigation Strategies

• Implemented a CO2 Capital Relief Program for emission reduction projects.
• Engaged suppliers through the CDP Supply Chain program and EcoVadis assessments.
• Developed responsible sourcing criteria for commodities linked to deforestation.
• Participated in initiatives like Energize to decarbonize the pharmaceutical supply chain.

Supply Chain Management

Supplier Audits: 881 EcoVadis assessments in 2021

Responsible Procurement

• Responsibility Standards for Suppliers (RSS)
• CDP Supply Chain program participation
• EcoVadis assessments

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (storms, floods)
• Water scarcity
• Extreme temperatures

Transition Risks

• Carbon pricing mechanisms
• Changing customer behavior
• Supply chain disruptions

Opportunities

• Reduced indirect costs from energy efficiency and renewable energy
• Development of new products and services to address climate-related health impacts

Reporting Standards

Frameworks Used: The Greenhouse Gas Protocol, TCFD

Third-party Assurance: ERM CVS

Awards & Recognition

• CDP Supplier Engagement Leader