Our Commitment to Sustainability - Personal Care … · 05_ASM09_ColleenGoggins_v32.ppt 3 Our Commitment to Sustainability ... Solar PV / thermal 15 Cogeneration 7 ... green power

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05_ASM09_ColleenGoggins_v32.ppt 1

Our Commitment to Sustainability

Christopher Conley| October 2010

10/25/2010 7:38 AM


Our CompanyHeadquartered in New Brunswick, NJ

• Global Leader in health care

• $61.9 billion in worldwide sales

• More than 250 operating companies

• In 60 countries

• Selling products in more than 175 countries

• 114,000 employees Worldwide

Our Strategic Framework

OperatingModel

Our Credo

Broadly based in human health care

Managed for the long term

Decentralized management

approach

Focused on peopleand values

Growth

InnovativeProducts

Robust Pipelines

Global Presence

TalentedPeople

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Our Commitment to Sustainability

“We are responsible to the communities in which we live and work and to the world community as well…

We must maintain in good order the property we are privileged to use, protecting the environment and natural resources.”

–The Johnson & Johnson Credo

Our Journey

“We must use our resources wisely, avoiding wasteof both raw materials and scrap, while we seeksubstitutes for things already in short supply. We must employ replaceable materials where we can, mustlet forests restore themselves as we cut, must preventloss and pollution of water, and must halt wastefulerosion of soil. Means to these ends are known butare now neglected through habit and ignorance of thefact that they pay. Sound business demands their employment, just as it demands reduction of wastein a factory or store.”

[Or Forfeit Freedom, by Robert Wood Johnson, Doubleday & Company, Garden City, New York, 1947, pp. 37-38]

2005 NextGeneration Goals 2010 Healthy Planet Goals

Healthy Future 2015(goals in development)

1990 PollutionPrevention Goals

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Our Achievements

• 2009 Johnson & Johnson debuted third in Newsweek’s list of the top 500 greenest large companies in America

• 2010 Practice Greenhealth “Champion For Change” Award

• #1 Largest Corporate Fleet of Hybrid Vehicles in U.S. Automotive Fleet Magazine 11/09

• #2 Largest Corporate User of On-Site Solar energyWorld Resources Institute 4/08

• EPA “Green Power Leadership Award,” 6th consecutive year

• EPA’s Smartway® Excellence Award for efficient product transport

• 96% of paper packaging is “Certified Sustainable” or has recycled fiber (≥30% PCR)

• Reduced overall water use by 14% (compared to 2005)

• Reduced non-hazardous waste by 32% & hazardous waste by 32% (compared to 2005)

Our Approach

Planet

People

Products

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Planet

Measuring Performance on Environmental Goals

ComplianceZero releases, violations, permit exceedences

Environmental Literacy Increased employee environmental literacy

Biodiversity Enhanced biodiversity conservation

TransparencyShare facility specific sustainability information publicly

Product Stewardship Improved environmental profile of products; take-back programs for electronic equipment

Paper & PackagingIncreased sourcing of paper and packaging from certified forests or increased recycled content; franchise goals for eliminating PVC

CO2 Reduction7% absolute reduction over 1990 levels for stationary sources; 30% reduction in emissions per km for fleet vehicle compared to 2003 levels

Water Use10% absolute reduction over 2005 levels

Waste Reduction10% absolute reduction over 2005 levels for non-hazardous & hazardous waste

External ManufacturingNew operating standards deployed and conformance measured

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Focusing on a Climate Friendly Energy Policy

DIRECT INDIRECTINDIRECT OFFSETS

NET EMISSIONS

1990 308 751 0 1059

2006 341 936 395 883

2007 344 972 385 932

2008 357 968 364 963

2009 337 940 386 891

CO2 Reduction• Our green house gas reduction goal

is the same as the Kyoto protocol

• We go back to 1990 as a baseline year and we do not index our emissions, this is an absolute reduction goal

Carbon Dioxide Net Emissions (Thousand Metric Tons)

Focusing on a Climate Friendly Energy Policy

Reduction Pathways• Energy efficiency – best practices

• On-site cogeneration

• On-site renewables: solar, wind, landfill gas

• Green power purchases

• Carbon trading

How We Are Achieving Our Carbon Dioxide Goal (CO2 Reduction Projects Since 2005)

Energy efficiency 27

Chiller upgrades 16

Solar PV / thermal 15

Cogeneration 7

HVAC 7

Boiler upgrades 4

Biomass 3

Wind 1

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• 39% of energy use from renewable energy sources in 2009

• Installation of on-site cogeneration, renewable energy infrastructure, and purchasing green power

• We plan to triple on-site solar capacity from 4 megawatts to 12 megawatts through seven solar-power projects in 2010

Utilizing Renewable Energy Sources

Janssen Division of Ortho-McNeil-Janssen Pharmaceuticals, Inc. Titusville, NJ

Johnson & Johnson World HeadquartersNew Brunswick, NJ

Johnson & Johnson Consumer Products Company Division of Johnson & Johnson Consumer Companies, Inc. Skillman, NJ

ALZA Corporation Mountain View, CA

Responsible Management of Water

Water Reduction and Usage• Since 2005, we have reduced

absolute water use by 14% (10.8 MM cubic meters)

• Projects to control cooling in energy efficient ways

• Process changes and improvements

• Continued focus on minimizing and eliminating sources of active pharmaceutical ingredients from waste water

2005 2006 2007 2008 2009 2010 Goal

12.513

11.7 11.510.8

11.3

Water Use MM m3

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Responsible Management of Waste

Waste Reduction• Manufacturing efficiency projects

• Plant consolidations

• Increased recycling

• Lean and process redesign

• Equipment upgrades

• Already exceeded our waste reduction goals for 2010 for both hazardous and non-hazardous waste

Non Hazardous and Hazardous Waste Reduction

(million of kilograms)

2005 2006 2007 2008 2009

62.3

35.2

57.3

29.5

49.4

34

51.9

29.3

42.2

24

vv

Non Hazardous Waste

Hazardous Waste

People

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Community Outreach

Every Mother, Every Child

• New five-year program supports the U.N.’s Millennium Development Goals (starting in 2010)

• J&J has pledged grant money, drugs and research funding for new HIV and tuberculosis medications to improve the health of women and children in developing nations

Kangela and her son, Liso

Found hope with mothers2mothers

Employee Engagement

• Employees make the biggest impacts

• Achieve our Healthy Planet 2010 goals

• 5-year program in place

• 80% of employees engaged

• Use the corporate topic or choose your own

Literacy Campaign: Why focus on employees?

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Measuring Performance on Healthy People Goals

• Create, promote and sustain an organizational culture of health− Promote eight health services offerings at 75% of sites /

companies worldwide in 2009; 13 health services offerings by 2010

• Reduce Population Health Risk Factors− Among employees who participate in the voluntary health

screening, demonstrate more than 66% in the “low risk” health category in 2009; more than 70% by 2012

• Promote a consistent approach to the deployment of occupational health services and standards

− Complete greater than 87% of periodic medical surveillance on time in 2009; 93% by 2012

Focusing on Workplace Safety

Improving Safety• Our Health and Safety Policy is supported by global

workplace safety standards and a safety management system

• Our Safe People 2010 goals include lost workday case rates and serious illness/injury case rates at or below 2006 levels, zero non-compliances and zero fines, and implementation of mechanisms to measure and improve safety culture

Fleet Safety• Over 35,000 cars in our

fleet worldwide

• Continue to increase awareness and training efforts to reduce number of accidents

Ergonomics• Ergonomic injuries accounted for 32% of lost workday cases

in 2009, up from 20% in 2008

• We continue to implement an aggressive strategy to modify high-risk tasks and have moved to an operating company focus, supported by electronic tools and awareness training

1995 2007 2008 2009

8.76

5.30 5.56 5.75

Rate of Crashes Per Million Miles Driven (CPMM)

(million of kilograms)

INDICATOR 1995 2005 2006 2007 2008 2009

Lost Workday Case RatePer 100 employees (Goal <0.07)

Johnson & Johnson Pharmaceutical Peer Data

0.310.80

0.060.41

0.070.47

0.080.51

0.100.47

0.120.37

Serious Illness & InjuryPer 100 employees (Goal: <0.035) 0.072 0.033 0.034 0.024 0.032 0.034

Fatalities 1 0 2 0 0 1

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Products

EARTHWARDS™

Continuing to deliver greener products

EARTHWARDS™ is our process to make our products greener. It strives to improve the environmental performance of a product by:

• Reducing Materials

• Reducing Energy

• Reducing Water

• Reducing Waste

• Utilizing safer chemicals

• Packaging more efficiently

• Driving innovation

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Defining a “Greener Product”

A greener product has a 10% or greater improvement in one of the following EARTHWARDS™ areas:

Reducing Energy

Reducing Materials & Utilizing Safer Chemicals

Reducing Water

Reducing Waste

More EfficientPackaging

Doing Good & Doing Well

26Consecutive yearsof adjusted earnings increases*

48Consecutive years of dividend increases~70% of sales from #1 or #2 global market share position~25% of sales from new products introduced in the past 5 years

Non-GAAP measure; excludes IPR&D charges and other special items*

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2

Thank you

Documents

Our Commitment to Sustainability - Personal Care … · 05_ASM09_ColleenGoggins_v32.ppt 3 Our Commitment to Sustainability ... Solar PV / thermal 15 Cogeneration 7 ... green power