RATING
Outlook
Negative
SECTOR
Manufacture of pharmaceuticals, medicinal chemical and botanical products
Chief Sustainability Officer
T: N/A
E-mail: N/A
Stock Exchange and Ticker
NYSE: JNJ
Website
Contact
T: +1 (732) 524-0400
E.mail: N/A
Listing
- #7 on Drucker Institute’s Top 250 Best-Managed Companies of 2021
- #1 on Fortune’s 2021 World’s Most Admired Companies / Pharmaceutical Industry list (eighth consecutive year)
- #15 on Fortune’s 2021 World’s Most Admired Companies list (19th consecutive year)
- #1 on the Gartner 2021 Healthcare Supply Chain Top 25 list
- #3 on the Gartner 2021 Top 25 Supply Chain Companies list (second consecutive year)
- #45 on The Just 100 List in 2021 (second consecutive year)
- Included on TIME’s list of the 100 Most Influential Companies
- Named as a Top 50 All-Star on Fortune’s 2021 World’s Most Admired Companies list for the 19th consecutive year
- WeConnect Global Champions for Supplier Diversity & Inclusion (Ranked in Top Ten)
Awards
- CDP Climate Change Disclosure A
- CDP Water Security A-
- CDP Palm Oil A-
- CDP Timber B
- 2021 Innovative Applications in Analytics Award from the Institute for Operations Research and the Management Sciences (INFORMS), regarding the creative and unique application of analytical techniques
- EPA SmartWay Excellence Award for outstanding environmental performance and climate-efficient transportation for the eighth time
- An award from the City of Guelph’s Water Smart Business Program for reusing wastewater in Canada
- CPA-Zicklin Index of Corporate Political Disclosure and Accountability (fourth consecutive year with Trendsetter status)
- 2021 Best Place to Work for LGBTQ+ Equality from the Human Rights Campaign Foundation (100% Score)
- Top 1% for Sustainable Procurement in EcoVadis rated companies in the pharmaceuticals industry
- Recognized with a CDP A List rating for leadership in climate action for the fourth consecutive year
- Named on the DiversityInc 2021 Top Companies for ESG list
- Recognized as a “5 Star Employer” in the VETS Indexes Employer Awards
- Earned a 100% score in 2021 from the Human Rights Campaign Foundation and designation of a “Best Place to Work for LGBTQ+ Equality”
- National LGBT Chamber of Commerce (NGLCC) Corporation of the Year Winner
- Women’s Business Enterprise National Council America’s Top Corporations Sixth Time Platinum Level
- National Minority Supplier Development Council (NMSDC) Corporation of the Year (2021 Finalist)
- U.S. Hispanic Chamber of Commerce Million Dollar Club Recognition
- National Business Inclusion Consortium (NBIC) Best of the Best Corporations for Inclusion
- Women’s Enterprise and Minority Business News USA Magazines Corporate Buyers of the Year
Revenue
$93.8B
Market Capitalisation
$448.57B
Employees
144,315
Content source
Johnson & Johnson Sustainability Report
Evaluation of Johnson & Johnson
Johnson & Johnson through its operating industry has the ability to help and support the most vulnerable people. Their reporting proves how much the company focuses on people and less on the environment, however, understandably. Company’s reporting and SDG progress communication are concise and clear and its achievements and targets are backed with factual data or KPIs. The list of company’s 2021 achievements and also targets set for 2025 is substantial and reflects the additude towards people and the planet. We truly hope that J&J will meet all its targets and set new ones, focusing on decarbonisation as well. Unfortunately, not all of the company represents similar views. J&J has been subjected to a couple of controversies over the past years – opioid crisis, baby talk controversy, which impacted millions of lives in an extremely negative way, representing “profit over people” attitude.
Comparing J&J achievements to the Impakter report from 2020, we can clearly see the improvements. The use or renewable energy increased by more than 20%, more money was both invested in R&D and donated to disaster relief . The GHG emissions reduction is not very impressive, as it progressed by merely 2%. J&J should take a bold action towards decarbonisation to truly prove their attitude. The company has also progressed in terms of its targets, releasing report on “Health for Humanity Goals for 2025”, with correlating KPIs and SDGs. Furthermore, we can see higher amount of awards and certifications, and also more detailed reporting, including expanded ESG metrics, procurement requirements and more, which improve the overall credibility.
Unfortunately, Johnson & Johnson contributed extremely negatively to the society during the opioid crisis or baby talc controversy. Such actions impacted thousands of lives and cannot go unseen. If nothing of the sort was to happen ever again, and the company reached its renewable energy and sustainable materials targets, J&J would receive A.
Sustainability Scorecard
Johnson & Johnson Company Activity
Johnson & Johnson (J&J) is an American multinational corporation founded in 1886. Johnson & Johnson is a holding company, which is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. It operates through three segments: Consumer, Pharmaceutical and Medical Devices. Its primary focus is products related to human health and well-being.
The Consumer segment includes a range of products used in the baby care, oral care, skincare, over-the-counter pharmaceutical, women’s health and wound care markets. The Pharmaceutical segment is focused on five therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, and cardiovascular and metabolic diseases.
The Medical Devices segment includes a range of products used in the orthopaedic, surgery, cardiovascular, diabetes care and vision care fields. Its research facilities are located in the United States, Belgium, Brazil, Canada, China, France, Germany, India, Israel, Japan, the Netherlands, Singapore, Switzerland and the United Kingdom.
Johnson & Johnson Sustainability Activity - As per company declarations
As the world’s largest healthcare company, Johnson & Johnson has a unique ability to apply its expertise and partnering power to solve some of the most difficult global health challenges. J&J is advancing a world where healthy people thrive in healthy communities on a healthy planet, and having a healthy company helps us get there.
J&J focuses its sustainability efforts where J&J can achieve the greatest impact. J&J’s Health for Humanity 2025 Goals are aligned with J&J’s purpose and reflect the areas where its stakeholders expect them to lead.
In trying to determine the ways in which J&J can contribute to the global community to create a healthier, more equitable world, J&J developed a clear, pragmatic process for building a commitment to accelerate the SDGs that reflects its unique constellation of strengths.
Certificate & Labels, Standards and Frameworks
- Science Based Targets Initiative (SBTi)
- Biopharma Investor ESG Communications Initiative
- FTSE4Good Index Series (21st consecutive year)
- ISO 14001 (89% of manufacturing and R&D sites)
- ISO 27001 certifications for multiple products, including products from both the MedTech and Pharmaceutical business segments
- ISO 45001 (17%)
- LEED (67 buildings)
- JOHNSON’S Baby received the brand’s first UL EcoLogo certifications for six products in the U.S
- WeSustain Guelph, Canada, in early 2022, received certification from the Wildlife Habitat Council
- ERM Certification and Verification Services (ERM CVS) conducted an independent review and assurance of some parts of 2021 Sustainability Report
- ERM Certification and Verification Services Inc (ERM CVS) was engaged by Johnson & Johnson to provide limited assurance on reported progress against the Health for Humanity 2025
Johnson & Johnson in the news: Press Reviews and Social Media
Johnson and Johnson (J&J) on August 11 announced that it would stop selling its talc-based baby powder from 2023, due to several thousand lawsuits from women who claim that they developed ovarian cancer after using the product due to contamination with asbestos, a carcinogenic. In 2018 22 women were awarded $4.7 billion worth of compensation, after it was found that J&J’s talcum contained asbestos. All 22 were suffering from ovarian cancer. The company has repeatedly stated that the powder does not contain asbestos, and does not cause cancer. It was also reported that J&J stoped using the ingredient in 2020 in North America, but continued its use in r4other parts of the world.
Controversies over the last 5 years:
- Alleged deceptive marketing of transvaginal surgical mesh devices in USA
- Improper sale of pain medications, contributing to the national opioid epidemic
- Coronavirus (COVID-19) Update: FDA Limits Use of Janssen COVID-19 Vaccine to Certain Individuals | FDA
The FDA has been limiting the use of Janssen COVID-19 vaccine, as it has determined that the risk of thrombosis with thrombocytopenia syndrome (TTS), a syndrome of rare and potentially life-threatening blood clots in combination with low levels of blood platelets with onset of symptoms approximately one to two weeks following administration of the vaccine.
Highlights from Johnson & Johnson Sustainability Report
Achievements
- Leading number of overarching and clear targets with KIPs
- Total products and cash contributed globally at $2,738 M
- Surveys says 87% of employees would recommend Johnson & Johnson as a great place to work
Weaknesses and Setbacks
- Renewable energy use dropped 2% compared to previous year (52% in 2021)
- Water use in areas of high or extremely high baseline water stress
- Baby talc controversy
- Reporting may be overwhelming
Targets vs Progress Reported
Target | Results reported |
---|---|
Source 100% of global electricity use from renewable energy by end of FY25 | - They sourced 38% of their FY22 electricity use from renewable sources, a 13 percentage point increase from the previous year |
Achieve LEED Gold certification for the new Santa Clara headquarters building in FY23 | - Target date for certification was delayed due to COVID-19 impacts on construction schedule |
Divert 80% of waste from landfill at Santa Clara headquarters | - They diverted 56% of FY22 waste from landfill, a 12 percentage point decrease from the previous year |
Implement an ISO 50001 Energy Management System in FY22 | - Achieved |
Assess scope 3 emissions along the value chain in FY22 | - Achieved |