People Places Practices

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Letter from Our Chairman & CEO For 130 years Johnson & Johnson has been helping people everywhere live longer, healthier and happier lives. Written nearly 75 years ago, Our Credo guides everything we do with a strong sense of responsibility, inspiration and a clear measure of accountability. Our Credo outlines our commitments to the people, places and communities we touch every day with our products and solutions, and informs our strategic approach to our Citizenship & Sustainability efforts. At Johnson & Johnson, we aspire to improve health in all we do, and everywhere we go. Since the launch of our Healthy Future 2015 goals in 2010 we have worked to advance global health; steward a healthy environment; increase sustainability among our suppliers; foster the most engaged, health-conscious and safe employees in the world; advance community wellness; enhance outcome measurement in philanthropy; and increase transparency and collaboration. We met most of our goals and, in so doing, helped even more people and deepened our relationships with our stakeholders. Our performance is presented in this report and highlighted in Successes and Opportunities. Also in 2015, we expanded the ways we think about health and sought new ways to make everyone, everywhere, healthier as we finalized our new Citizenship & Sustainability 2020 Goals, described in detail within this report. Our Citizenship & Sustainability 2020 Goals continue our legacy of work to advance healthier societies and will help more people live healthier lives through the ideas we generate, products we make, and good habits and practices we create. These new goals have three key focus areas: • People: We will help people be healthier by providing better access and care in more places around the world. • Places: We will make the places we live, work and play healthier by using fewer and smarter resources. • Practices: We will team up with partners and employees to further advance our culture of health and well-being. We believe we can use our expertise, influence, global reach and partnerships to help make this world a healthier, better place. We are acutely aware of the dramatically changing global healthcare market. Populations of developed nations are aging rapidly and intractable diseases are taking hold in some developing countries, increasing healthcare costs; middle classes are expanding in many developing nations, putting pressure on existing healthcare infrastructure and capacity; and patients are becoming increasingly involved in their own healthcare decisions, necessitating a holistic approach to meeting their needs by integrating wellness solutions, innovative new medicines and advanced technologies. We believe the most important contribution we can make to the dynamic challenges we are facing is innovation—innovation in products and solutions, services, processes and practices. The promise of innovation in health care is great, but it comes with the need for forward-focused investment in R&D, a holistic approach to evolving global healthcare markets and bold future-facing strategies that build upon our proven strategic principles. In developing our new Citizenship & Sustainability 2020 Goals we have broadened our view to consider not just the challenges of the business we are in, but of the world in which we operate. Global trends that could impact our ability to help people and the environment be healthier include: population growth, poverty and inequality, rising global instability, climate change, water and resource scarcity, human rights issues, and pressures to increase transparency. These and many other global challenges are recognized within the UN Sustainable Development Goals (SDGs) ratified in late 2015. The SDGs provide a comprehensive framework for governments, NGOs, private sector and other entities to consider in their strategic plans moving forward. Later in 2016 we will provide a perspective on the role we can play in addressing the SDGs. As the world’s largest, broadly based healthcare company, guided as we are by Our Credo, we are committed to fulfill our unique opportunity to help billions of people live longer, healthier, happier lives today, and for generations to come. Sincerely, Alex Gorsky Chairman of the Board of Directors and Chief Executive Officer 2015 Citizenship & Sustainability Report 4
Provided below are the material areas where we have achieved our greatest successes in 2015 and those where opportunities remain. A general description of each area is given along with a link to the section of the report where details are available. Successes Global Health We launched a new, enterprise-wide Global Public Health strategy and organization to leverage the full breadth and depth of Johnson & Johnson to deliver comprehensive, long-term health solutions that deliver better health outcomes for families and communities. Quality & Safety of Products We continually explore new ways to foster our proactive quality culture and use our expertise to engage in leadership roles with external stakeholders to influence and shape regulations, ensuring the Company continues to deliver safe and effective products to improve the lives of our patients and customers. Procurement and Our Suppliers By collaborating with our partners to strengthen the social and environmental performance of our supply base, we are driving sustainability efforts beyond our four walls, while also strengthening the Company. Climate We have realized a 9.8 percent reduction in facility CO 2 emissions against our 2010 baseline; approximately seven percent of the Company’s energy is currently generated by clean/renewable sources; and on-site renewable and clean technology energy capacity has increased to 54 megawatts. In 2015, we extended our commitments with two new energy and climate goals based on the latest climate science. Product Stewardship Improving the sustainability profiles of our products and/or packaging has been an integral part of the Company’s goal-setting efforts for many years. Using our Earthwards ® approach, we are reducing the social and environmental impacts of our products. Governance We created a new office of Worldwide Corporate Governance that will partner with the Environment, Health, Safety & Sustainability and Citizenship teams to measure progress against the completion of our Healthy Future 2015 goals and track progress on our new Citizenship & Sustainability 2020 Goals. Opportunities Access While we have strong access programs in place, our efforts must continue to evolve to address challenges stemming from limitations of existing healthcare infrastructure and increasing demands by people who need greater access to quality health care. Water We operate in many areas of the world where water quality and quantity are an issue. While we are not a large water user, we are undertaking additional efforts to evaluate water availability in the areas in which we operate and to implement water risk mitigation efforts in those areas where water risks are the highest. Human Rights Managing the human rights considerations in our supply base is a critical and complex undertaking. Efforts are ongoing to expand human rights as a filter for supplier risk prioritization, update our Responsibility Standards for Suppliers to reflect all relevant provisions from the UN Guiding Principles on Human Rights, and apply our Standards to all suppliers. Transparency We continue to assess how we approach transparency for any identified material issues and work to raise the bar of our reporting in accordance with the Global Reporting Initiative (GRI) strategic framework that we and hundreds of other companies use for Citizenship & Sustainability reporting. Stakeholder Engagement Our senior leadership establishes broad parameters for stakeholder engagement; we do not have an overarching policy for stakeholder engagement or one group that leads it. As a decentralized company, our employees engage with many stakeholders on a variety of topics related to our businesses throughout the world. 2015 Citizenship & Sustainability Report 5
Page 1 and 2: People. Places. Practices. Finding
Page 3: Our Credo We believe our first resp
Page 7 and 8: Sales by Geographic Region (in bill
Page 9 and 10: Citizenship & 2020 GOALS Sustainabi
Page 11 and 12: Goal: Achieve World Health Organiza
Page 13 and 14: Our Materiality Assessment G4-18-21
Page 15 and 16: People We’ll help people be healt
Page 17 and 18: • Piloting and scaling therapeuti
Page 19 and 20: Tuberculosis Our goal in TB is to e
Page 21 and 22: Access & Affordability of Health Ca
Page 23 and 24: MDR-TB therapies, expanding upon th
Page 25 and 26: Innovation Innovation is critical t
Page 27 and 28: are taking an integrated approach t
Page 29 and 30: Philanthropy At Johnson & Johnson,
Page 31 and 32: implement projects that would build
Page 33 and 34: 9 Environmental Responsibility G4-1
Page 35 and 36: Product Stewardship With the world
Page 37 and 38: ® Selected Products that Received
Page 39 and 40: INCREASING RECYCLING IN THE BATHROO
Page 41 and 42: Our Ingredients & Raw Materials Our
Page 43 and 44: Progressive palm oil policies and p
Page 45 and 46: Climate Human health and environmen
Page 47 and 48: Energy Use 18 We made good progress
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Page 51 and 52: goods transport, we work with our t
Page 53 and 54: Percentage of Water Consumption Ant
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that will enable focused environmen
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Notable Waste Reduction Projects, 2
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Governance & Ethical Performance Ou
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Supply Chain The Customer is at the
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triggers to allow escalation of sig
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Supply Chain Risk Management Johnso
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Procurement & Supplier Management T
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EN33, LA15, HR11, S010 Responsible
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• Support initiatives to verify s
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42 Human Rights G4-58 Johnson & Joh
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Labor Practices 44, 45 & Workforce
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We currently have 11 Board members,
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Employee Recruitment, Development &
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Workplace 50 Health & Safety functi
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lower in Asia-Pacific, EMEA and Lat
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Health-Conscious, 54 Safe Employees
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These services are centered on prev
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Employee Diversity & Inclusion Our
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Stakeholder Engagement G4-24-G4-27
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and individuals; and recognizing ex
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Report Profile G4-13, G4-23, G4 28-
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2015 Data Summary Table Employee He
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2015 Data Summary Table Environment
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2015 Data Summary Table 21 Operatio
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United Nations Global Compact Envir
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Global Reporting Initiative (GRI) I
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People Places Practices

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