DJO Global, Inc.
Climate Impact & Sustainability Data (2010, 2012)
Reporting Period: 2010
Environmental Metrics
Total Carbon Emissions:76,899 metric tons of CO2e (estimated)
Scope 1 Emissions:2,220 metric tons CO2e
Scope 2 Emissions:20,646 metric tons CO2e
Scope 3 Emissions:56,223 metric tons CO2e
Renewable Energy Share:<1% (2010), target 50-60% (2011)
Total Energy Consumption:25 million kWh (indirect) + 39,437 GJ (direct)
Water Consumption:66,062 m3
Waste Generated:2,030.9 tons (estimated)
Carbon Intensity:Not disclosed
ESG Focus Areas
- Environmental Stewardship
- Product Stewardship
- Work Culture and Job Satisfaction
- Community Support
- Sustainable Revenue Growth
Environmental Achievements
- UK facility achieved ISO 14001 certification
- Reduced natural gas consumption by 38.8% at five major sites
- Reduced electricity consumption by 4.8% at six major sites and one contract manufacturer
- Vista, CA headquarters implemented a storm water filtration and sediment collection system
- Increased recycled content in packaging materials
Social Achievements
- DJO Mexico ranked #1 in the country by Great Places to Work
- DJO Vista ranked #7 in San Diego by Great Places to Work
- Received AME Manufacturing Excellence Award (Vista and Mexico)
- Implemented Values Campaigning and employee outreach programs
- Achieved over $80 million in cost savings from integration programs
Governance Achievements
- Established a Sustainability Reporting Team
- Implemented a Code of Conduct for all employees
- Established a Compliance Hotline
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Achieve ISO 14001 certification at all manufacturing facilities
Short-term Goals:
- Reduce GHG emissions by 5% in 2011
- Reduce water intensity by 5% in 2011
- Map and measure waste streams at all sites by 2011, aiming to eliminate 25% of landfill waste by 2014
Environmental Challenges
- Reduced healthcare utilization and reimbursement pressures
- Economic headwinds
- Single-patient-use medical devices burdening landfills
- Need to reduce global carbon footprint
- Need to strengthen relationships with key stakeholders
Mitigation Strategies
- Investing in a new U.S. Commercial Operations team
- Strengthening corporate culture through Values Campaigning
- Designing better, more recyclable packaging
- Exploring opportunities to use more environmentally preferable materials
- Piloting a product recycling program with a key customer
- Setting a 5% GHG emission reduction target for 2011
- Setting a 5% water intensity reduction target for 2011
- Goal to eliminate one quarter of landfill-bound waste by 2014
Supply Chain Management
Supplier Audits: Periodic on-site visits to top 50% of suppliers by spend (2010); goal to include human rights clauses for top ten foreign suppliers in 2011
Responsible Procurement
- Seeking quality products and services through mutually beneficial and ethical relationships with suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Weather patterns, temperatures, sea levels, water availability, employee health
Transition Risks
- Governmental actions, environmental actions, health and safety regulations
Opportunities
- Sourcing more renewable energy
Reporting Standards
Frameworks Used: GRI G3
Certifications: ISO 13485, ISO 14001 (three facilities)
Third-party Assurance: Not disclosed
Sustainable Products & Innovation
- EnergyStar compliant computers
Awards & Recognition
- DJO Mexico – Great Places to Work (#1)
- DJO Vista – Great Places to Work (#7)
- DJO Vista – AME Manufacturing Excellence Award
- DJO Mexico – AME Manufacturing Excellence Award
- San Diego’s “Largest Private Company”
Reporting Period: 2012
Environmental Metrics
Total Carbon Emissions:73,707 metric tons of CO2e (Scope 1, 2, and 3 combined)
Scope 1 Emissions:2,077 metric tons CO2e
Scope 2 Emissions:18,202 metric tons CO2e
Scope 3 Emissions:53,507 metric tons CO2e
Renewable Energy Share:Approximately 50% of electricity usage offset by RECs
Total Energy Consumption:34.8 million kWh
Water Consumption:105,661 cubic meters
Waste Generated:Detailed breakdown by type and disposal method in report (total weight decreased by 12.7% from 2011)
Carbon Intensity:Not disclosed
ESG Focus Areas
- Environmental Stewardship
- Strengthening relationships with key stakeholders
- Product stewardship
- Internal programs to strengthen diversity and culture
- External initiatives to strengthen communities
Environmental Achievements
- Reduced waste by 12.7% compared to 2011
- Increased recycling by 20.6% compared to 2011
- Reduced total GHG emissions by 2.2% from 2011 to 2012 and 8% from 2010 to 2012
- Offset 28.5 million kWh of electricity usage with renewable energy credits
Social Achievements
- Tijuana plant named 5th place for "2012 Best Companies to Work for in Mexico"
- Various community investment programs (details in report)
- Employee engagement initiatives through partnership with Gallup
Governance Achievements
- Established a Sustainability Reporting Team (SRT) and Global Green Team (GGT)
- Implemented a Code of Conduct and Code of Ethics
- Implemented processes to avoid conflicts of interest
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Reduce GHG emissions by 5% in 2013
- Reduce water intensity by 5% in 2013
- Reduce landfill waste by 25% compared to 2010 by 2014
- Complete ISO 14001 certification process for remaining major sites by 2014
Environmental Challenges
- Reducing global carbon footprint
- Supply chain improvements/use of environmentally preferable materials
- Managing sustainability risks and opportunities across various business segments
- Predicting the extent of climate change impacts on operations
- Addressing water availability risks in water-stressed regions
Mitigation Strategies
- Investing in renewable energy sources
- Streamlining transportation operations
- Improving employee commuting habits
- Implementing conservation measures
- Improving manufacturing operations and installing low-flow appliances
- Source reduction, increasing recyclable content, and increasing recycling levels
- Developing better packaging that is smaller, more recyclable, and includes greater post-consumer recycled content
- Examining existing products to use more environmentally preferable materials
- Exploring product development processes to design new products with environmental concerns in mind
- Pilot program with a key customer to recycle high-use products
- Implementing a compliance program to assess potential corruption risk
- Providing more in-depth and specific training to identify and monitor potential conflicts
Supply Chain Management
Supplier Audits: Periodic on-site visits to top 50% of suppliers by spend; audit of Medireha in 2011
Responsible Procurement
- Code of Supplier Conduct (CSC) implemented in 2012
Climate-Related Risks & Opportunities
Physical Risks
- Weather patterns, temperatures, sea levels, water availability, employee health
Transition Risks
- Governmental actions, environmental actions, health and safety regulations
Opportunities
- Sourcing renewable energy, improving energy efficiency
Reporting Standards
Frameworks Used: GRI G3.1
Certifications: ISO 13485 (multiple facilities), ISO 14001 (Guildford, Mouguerre, Sfax)
Third-party Assurance: Not disclosed
Sustainable Products & Innovation
- Products designed with environmental concerns in mind, such as recyclable packaging
Awards & Recognition
- 2012 Deloitte Fast 500 Award
- #1 Largest Privately Held Company in San Diego (3 consecutive years)
- Association for Manufacturing Excellence Award
- Great Place to Work Award (Mexico and Latin America)
- Shingo Prize Silver Medallion
- Baja California Gender Equity Certification
- Baja California Quality Award