Data in this annual Report cover the period between January 1, 2022, and December 31, 2022, unless otherwise indicated, and was published in June 2023. Reporting on other matters specific to financial performance of the Company and its subsidiaries can be found in our 2022 Annual Report.
This Report covers Johnson & Johnson’s worldwide operations across our three business segments: Pharmaceutical, MedTech and Consumer Health.7 For select metrics, we report segment-level data. Contract manufacturers are excluded from the scope of this Report, unless otherwise noted. References in this Report to “Johnson & Johnson,” the “Company,” “we,” “us” and “our” all refer to Johnson & Johnson and its consolidated subsidiaries, unless otherwise stated or indicated by context. All monetary references to dollars ($) refer to U.S. Dollars (USD).
This Report also covers some activities of the Johnson & Johnson Foundation, a registered charity and a company limited by guarantee. The Foundation is a separate legal entity from the Johnson & Johnson Family of Companies and is funded solely by the Johnson & Johnson Family of Companies, The Foundation operates worldwide as Johnson & Johnson Foundation United States (founded 1953) and Johnson & Johnson Foundation Scotland (founded 2007). More details on Foundation activities can be found in the Johnson & Johnson Foundation United States 2022 Annual Report and the Johnson & Johnson Foundation Scotland 2022 Directors’ Report.
The Report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards (see ESG Disclosure Index: GRI Content Index). We also disclose our performance against additional ESG standards and frameworks (see ESG Disclosure Index), including:
- Sustainability Accounting Standards Board (SASB) relevant Standards: HC-BP, HC-MS, CG-HP;
- Task Force on Climate-related Financial Disclosures (TCFD), building on our responses to the CDP climate change questionnaire;
- Norges Bank Investment Management and Basel Institute on Governance’s “Measuring effectiveness of anti-corruption programmes” reporting framework, adding disclosures against this set of 17 indicators; and
- UN Global Compact (UNGC); see our annual Communication on Progress.
The content in this Report is guided by our PTA, which helps us identify and prioritize the ESG topics that matter most to our stakeholders and to our Company. Please see our Priority Topics Assessment for details of our latest update and Priority Topics.
Independent review and assurance
ERM Certification and Verification Services (ERM CVS) conducted an independent review and assurance of the following information and data in the Report:
- Progress against our Health for Humanity 2025 Goals and associated data presented in the Health for Humanity 2025 Goals Scorecard (see ERM CVS’s Health for Humanity 2025 Goals Assurance); and
- Select 2022 global GHG emissions inventory, the percentage of electricity use generated by renewable energy sources, NOx and SOx emissions (from combustion sources) and select water management data (see GHG & Air Emissions, Electricity and Water Data Assurance). Our Scope 1, 2 and 3 GHG emissions are reported using the WBCSD/WRI GHG Protocol: A Corporate Accounting and Reporting Standard (2004, as updated January 2015).
PricewaterhouseCoopers LLP (PwC) performed limited assurance on certain data in the following categories (see PwC’s Report of Independent Accountants and Management’s Assertion):
- Our Giving
- Diversity, Equity & Inclusion (select metrics)
- Environmental Health & Safety (EH&S Compliance and Certifications)
- Employee Retention and Turnover
- Employee Engagement (Our Credo Survey Results) (select metrics)
- Employee Safety
- Ethics and Compliance (Inquiries and Complaints as Recorded with Our Credo Integrity Line by Category)
- Ethics and Compliance (Compliance-Related Allegations Investigated Through Triage Committee)
- Product Quality Indicators
- Tax Contributions
Our Global Audit & Assurance organization reviewed select data for accuracy, completeness and validity. The financial data and general information about the business in this Report were previously audited for disclosure in our 2022 Annual Report.
EH&S data of recently acquired companies, except for employee road safety data and site ISO and OHSAS certification data, are included in the Report two years after acquisition, unless otherwise noted. This approach allows the new acquisitions to adjust their EH&S management and reporting systems to Johnson & Johnson standards.
- Road safety data are integrated the first year after acquisition, where available, and two years after acquisition at the latest.
- ISO and OHSAS certification data are integrated three years after acquisition.
Abiomed, which was acquired in late December 2022, is reflected only in the financial data included in this Health for Humanity Report. Due to the timing of the acquisition and the nature of our Human Resources Information System, no other Abiomed data are included in this 2022 Health for Humanity Report. See the Johnson & Johnson 2022 Annual Report for more information on Abiomed.
The dates and details of recent acquisitions can be found in Note 18 (Acquisitions and Divestitures) on page 82 of our 2022 Annual Report.
Except for injury statistics and violations or fines, EH&S data of divested companies are excluded in the reporting year.
In November 2021, the Company announced its intention to separate the Company’s Consumer Health business into a new, publicly traded company. In September 2022, Kenvue was announced as the name for the planned New Consumer Health Company. Kenvue was part of Johnson & Johnson for all of 2022 (the reporting period for this 2022 Health for Humanity Report). Kenvue completed an initial public offering of 198,734,444 shares of its common stock on May 8, 2023. As of the closing of the initial public offering, the Company owns approximately 89.6% of the total outstanding shares of Kenvue common stock. The Company remains on track to complete the separation in 2023, subject to market conditions.
In future reporting years, starting with the 2023 Health for Humanity Report, Kenvue data will not be included nor restated.
We use a 5% change threshold to apply to significant changes in data or information that is restated, unless otherwise noted. There are several potential reasons that may lead to a restatement of either prior periods or baseline data (e.g., a significant change in newly published measures, new acquisitions or divestitures, data errors or improvements in data collection methodology over time). Depending on circumstances, each is evaluated using this threshold, and appropriate disclosures are included in the Report. Data that were not disclosed in prior years are noted as “not reported” in relevant tables throughout the Report.
We welcome your queries and feedback on this Report. Please contact the Johnson & Johnson Enterprise ESG Program Office at: WW-Corporate-Governance@its.jnj.com.
Cautionary Note Regarding Forward-Looking Statements
This Report contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, market position, business strategy and the anticipated separation of the Company’s Consumer Health business. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the Company to successfully execute strategic plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws, supply chain due diligence, regulation of greenhouse gas emission and related reporting; and global healthcare reforms; trends toward healthcare cost containment; changes in behavior and spending patterns of purchasers of healthcare products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the healthcare industry by government agencies; the Company’s ability to satisfy the necessary conditions to consummate the separation of the Company’s Consumer Health business on a timely basis or at all; the Company’s ability to successfully separate the Company’s Consumer Health business and realize the anticipated benefits from the separation; the New Consumer Health Company’s ability to succeed as a standalone publicly traded company; and risks related to the ongoing impact of the COVID-19 global pandemic, including continued supply chain disruptions and other impacts to the business. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s Annual Report on Form 10-K for the fiscal year ended January 1, 2023, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and in Johnson & Johnson’s subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this Report speaks only as of the date of this report. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.
Third-party trademarks used herein are trademarks of their respective owners.
7 Johnson & Johnson’s Consumer Health segment, now Kenvue, operated as part of Johnson & Johnson for all of 2022.
8 Materiality, as used in this Report, and our PTA process are different than the definitions used in the context of filings with the U.S. Securities and Exchange Commission.