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Our Approach

Sustainability Governance

GRI
Global Reporting Initiative
102-19
Delegating authority
102-20
Executive-level responsibility for economic, environmental, and social topics
102-29
Identifying and managing economic, environmental, and social impacts

Starting at the Board of Directors level, the governance of citizenship and sustainability at Johnson & Johnson encompasses our three business segments (Consumer, Medical Devices and Pharmaceutical) as well as global enterprise functions. The Science, Technology & Sustainability Committee (STSC) has general oversight of our sustainability activities. Along with our Johnson & Johnson Executive Committee, the STSC reviews annual progress against our Health for Humanity 2020 Goals, initiatives being advanced by the Enterprise Governance Council, and our overall citizenship and sustainability efforts. Select members of the Executive Committee review the Health for Humanity Report.

Our office of Corporate Governance is responsible for raising visibility to citizenship and sustainability issues and activities that span multiple groups across the Enterprise, and for facilitating connections between teams and departments around governance of environment, social and governance (ESG) topics. In partnership with our Environmental Health, Safety & Sustainability, Global Public Health, Global Community Impact and Sustainable Procurement teams, Corporate Governance connects and aligns various activities that contribute to advancing our citizenship and sustainability agenda.

To enhance our corporate governance structure, in early 2016 we established the Johnson & Johnson Enterprise Governance Council (EGC). The EGC is comprised of senior leaders who represent our three business segments and our global enterprise functions with line of sight to, and ability to impact, ESG issues. The EGC has a formalized process and protocols for this governing body, including the quarterly assessment of an ESG priority topics scorecard, proprietary reputational research on our identified ESG priority topics, and ongoing elevation of topics for further review and assessment. This process is informed by our Enterprise Risk Management (ERM) Framework, which assists the EGC, management teams and the Board of Directors in identifying potential business risks. For more information, please see our Enterprise Risk Management Framework. Further, ESG priority topics are integrated into the ongoing standardized approach to risk assessments across the Enterprise by risk functions with management, which ensures a clear and consistent view of existing and emerging risk, identifies controls, and enables mitigations to be established to address those risks. The outcomes of these assessments are reflected in the progress updates shared as part of the ESG priority topics scorecard reviews by the EGC.

In 2018, the EGC led initiatives to further embed governance processes around key ways in which we work across the Enterprise, helping to improve our corporate culture and connectivity. In addition, the EGC kicked off work to refresh the Company’s ESG priority topics and establish an enterprise Human Rights Working Group. The EGC continues to drive increased preparedness for ESG issues management, and fosters alignment and coordination of internal and external engagement efforts on these issues. Another important function of the EGC is to review and support progress against our Health for Humanity 2020 Goals and United Nations Sustainable Development Goals (UN SDG) commitments.

The Enterprise Governance Council Working Group (EGCWG) is the cross-functional “activation arm” of the EGC. The EGCWG is comprised of key enterprise functions and draws on the expertise of various subject matter experts across the Company, consulting with external advisors for additional specialized insight, as needed, to drive actions identified by the EGC. This diverse working group met four times in 2018 to review the status of key projects and emerging ESG topics and issues identified through our proprietary global intelligence system that analyzes which stakeholders, platforms and programs have the most impact on reputation. The EGCWG has accountability for tracking and managing the Health for Humanity 2020 Goals, UN SDG commitments, and our Health for Humanity Report, and works proactively across the enterprise to foster engagement around goal progress and commitments.

In addition to people across the Enterprise with formal job responsibilities related to citizenship and sustainability, thousands of employees around the globe support the implementation of our strategic citizenship and sustainability initiatives in their everyday work and help us make steady progress toward our bold vision of changing the trajectory of health for humanity.

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