People Places Practices

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Responsibility Standards for Suppliers Our standards include requirements to: • Comply with applicable laws and regulations • Behave ethically and with integrity • Integrate quality into business processes • Respect human and employment rights • Promote health, safety and well-being of employees • Embrace sustainability and operate in an environmentally responsible manner • Implement management systems • Be transparent about impact on the environment and social issues Sourcing of Raw Materials The Johnson & Johnson Family of Companies approaches the issue of responsible sourcing of raw materials in several ways. Our Responsibility Standards for Suppliers state that suppliers are expected to operate in a responsible manner, and work to reduce their environmental impacts including those associated with material sourcing. For more information on our efforts with our suppliers, see the Procurement & Supplier Management section of this report. Johnson & Johnson also has specific responsible sourcing programs for forest products (see Packaging and Procurement & Supplier Management) and palm oil. And, as mentioned earlier in this section, we focus on improving the impacts of our products through our Earthwards ® approach. Johnson & Johnson Safety Assurance Process 1 2 3 4 5 Partner only with suppliers that meet our ingredient safety standards and product stewardship principles to source our raw materials Conduct ingredient safety assessments Conduct clinical evaluation of formulations Conduct “in-use” testing Ongoing evaluations of ingredients in beauty and baby care products 2015 Citizenship & Sustainability Report 42
Progressive palm oil policies and practices since 2006 2006 Joined the Roundtable for Sustainable Palm Oil (RSPO) 2011 Set goal to source all ingredients derived from palm oil from certified sustainable sources 2012 Our work with small holders gives first certification to independent RSPO small holders in Thailand 2014 Became a member of The Forest Trust (TFT), launched our Responsible Palm Oil Sourcing Criteria, and began direct evaluation of the suppliers used in our supply chains 2015 Qualified our first supplier of RSPO-certified soap noodles in South America Palm Oil Palm oil is the most widely used vegetable oil in the world and a common ingredient and feedstock to ingredients in many foods, fuels and personal care products. Growing populations and an increased demand for such products means palm oil production has never been higher and is continually increasing. This demand for palm oil has led to conversion of high-conservation value forests, contributed to the destruction of habitats, compromised biodiversity, and generated social conflicts between indigenous communities and growers. We do not buy palm oil but instead buy ingredients derived from palm oil (called derivatives) and its by-product, palm kernel oil. Our purchases of these derivatives represent a tiny fraction of global palm oil production. Oil from a variety of growers, processing plants and countries is intermingled during the manufacturing and delivery, which makes verifying the origins of the oils used to produce the oleo-chemicals we use in our products very difficult. Since launching our Responsible Palm Oil Sourcing Criteria in 2014, we have engaged all our leading suppliers who represent the majority of our palm oil derivatives supply. Our Sourcing Criteria are being used to assess our top suppliers against our commitments and to map our derivatives supply chain with the goal of achieving full transparency on our palm oil’s origin. Our goal is to fully implement our sourcing criteria by year-end 2020. For more information, see Raw Material Sourcing and Palm Oil Tracability. Increasing Small Holder Yield Researchers at Wageningen University in the Netherlands, in partnership with Johnson & Johnson, are seeking to understand the barriers that small holders face to sustainably increase oil palm yields in their plantations in Indonesia. The project is exploring opportunities to address the financial and labor constraints facing small holders, and to find pathways to move from current poor management and average yields of 15–18 tons of fresh fruit bunches per hectare to greater than 22 tons per hectare. Working with the small holders, the researchers are identifying and implementing sustainable practices, such as applying the right amount of fertilizers and other good practices, and simultaneously measuring the yield, number of bunches and vegetative growth of the palms. The data will help the researchers to understand the mechanisms behind yield improvement and to design suitable approaches for projects at a larger scale. “Our goal is to find ways to increase sustainable production in small holder systems, so that the increased demands for palm oil can be met without the need for large-scale expansion, and the position of small holder palm oil producers is improved,” said Wageningen University researchers. 2015 Citizenship & Sustainability Report 43
Page 1 and 2: People. Places. Practices. Finding
Page 3 and 4: Our Credo We believe our first resp
Page 5 and 6: Provided below are the material are
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
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Page 39 and 40: INCREASING RECYCLING IN THE BATHROO
Page 41: Our Ingredients & Raw Materials Our
Page 45 and 46: Climate Human health and environmen
Page 47 and 48: Energy Use 18 We made good progress
Page 49 and 50: Energy Consumption in Terajoules Fa
Page 51 and 52: goods transport, we work with our t
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Page 55 and 56: that will enable focused environmen
Page 57 and 58: Notable Waste Reduction Projects, 2
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Page 75 and 76: Labor Practices 44, 45 & Workforce
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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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