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ESG Policies & Positions

Johnson & Johnson is committed to helping mitigate our impact on climate change and climate change’s impact on our business and society. To do our part to help maintain a healthy climate, we take a holistic approach that includes improving the footprint of our operation and value chain, supporting policies that aim to achieve a low-carbon economy, and working with others to drive impact at scale. We have made significant progress against our Health for Humanity 2025 Goals that focus on carbon neutrality and renewable electricity. We will also continue to engage our upstream suppliers in emissions reductions associated with our procurement practices and recognize we must continue at a pace to meet our commitments.

Health for Humanity 2025 Goals | Environmental Health

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Renewable Electricity
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Progress: Produced or procured 52% of electricity from renewable energy sources.

Signed four new renewable Power Purchase Agreements (PPAs)—one in North America and three in Europe—as well as two Utility Green Tariff contracts in the U.S.
Carbon Neutrality
for Our Operations (by 2030)
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Progress: 34% reduction in Scope 1 + 2 carbon emissions vs. 2016 baseline. Carbon credits were not utilized towards this reduction.
Scope 3 Emissions Reductions (by 2030)
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Progress: +1% increase in greenhouse gas (GHG) emissions – Scope 3 (upstream) vs. 2016 baseline.

Initiated execution road maps and enhanced data methodologies.

Johnson & Johnson was recognized with a CDP A List rating in 2021 for our leadership in climate action for the fourth consecutive year.
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Our operational (Scope 1 + Scope 2) emissions goal has been validated by the Science Based Targets initiative (SBTi) as being consistent with the reductions required to keep global warming to 1.5°C, and our operational carbon neutrality goal goes beyond what the latest climate science deems necessary to meet the goals of the Paris Climate Agreement. Our value chain (Scope 3) emissions goal has been validated by SBTi as being consistent with a 2°C reduction scenario, and we will be reevaluating this goal based on the guidance from SBTi issued in 2021.

Through our due diligence and continuous improvement process, we are evaluating potential additional sources of greenhouse gas emissions within our manufacturing processes. We will report additional greenhouse gas emissions, if material, in future disclosures.

Scope 1 + 2 GHG Emissions (MT CO2e)*

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* See the Greenhouse Gas (GHG) Emissions table in the ESG Performance Data section of this Report for footnote considerations related to Scope 1 + Scope 2 emissions data.

Scope 1 + 2 GHG Emissions Intensity by Revenue

GHG emission intensity line chart

Upstream Scope 3 GHG Emissions (MT CO2e) by Source*

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* Waste generated in operations of 8,759 MT CO2e was excluded from the donut chart because of scale. See the Greenhouse Gas (GHG) Emissions table in the ESG Performance Data section of this Report for additional footnote considerations related to Scope 3 GHG emissions data.

To achieve carbon neutrality, we will make further investments in energy efficiency, alternative fuel sources and environmentally-preferred fleet vehicle choices while expanding our use of renewable energy. To reduce upstream emissions, we will partner with our key suppliers to encourage them to reduce their emissions. We will balance any remaining carbon emissions by supporting solutions that accelerate nature’s ability to remove carbon from the atmosphere.

Johnson & Johnson is a signatory of the UN-backed Race To Zero campaign and SBTi Business Ambition for 1.5°C, with an ambition to reach net zero emissions across our value chain by 2045.

Our Climate Action Plan At-A-Glance

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* This visual representation is illustrative only and includes all GHG categories except indirect downstream use of sold products

Each year, the United States Environmental Protection Agency (EPA) recognizes the top 1% – 2% of EPA SmartWay Partners with a SmartWay Excellence Award for their achievements. In 2021, Johnson & Johnson received the EPA SmartWay Excellence Award for outstanding environmental performance and climate-efficient transportation for the eighth time. More than 97% of Johnson & Johnson freight in North America is transported with SmartWay-registered carriers with a strong record of fuel efficiency and GHG reduction.

CO2 Capital Relief Program Overview (2005-2021)*

Capital expenditure for energy efficiency: Energy efficiency programs at our most energy-intensive manufacturing and R&D sites are allocated up to $40 million per year in capital relief through our CO2 Capital Relief Program, for energy projects that demonstrate potential CO2 savings and a financial return of at least 15%.
291
projects approved
260
projects completed
$470 million
total spent on completed projects
$87 million
annual energy cost savings
2,512
TJ annual energy savings
313,965
MT CO2 annual GHG emissions avoided
* Results from completed projects. Based on fuel and electricity reduction calculations. Avoidance of energy consumption and GHG emissions were calculated by comparing energy consumption before project implementation and expected consumption after implementation using engineering estimates at the time the projects are approved.

Renewable electricity

Generating and procuring renewable electricity has been a critical element of our energy program for two decades. Johnson & Johnson maintains more than 50 on-site renewable energy systems in 17 countries and has executed multiple deals for off-site renewable electricity procurement. In 2021, Johnson & Johnson signed four new renewable Power Purchase Agreements (PPAs)—one in North America and three in Europe—as well as two Utility Green Tariff contracts in the United States. These agreements, and our prior renewable electricity efforts, are expected to provide the equivalent of 100% renewable electricity for our operations in the United States, Canada and Europe by 2023.

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On-Site Generated Energy Use by Type (TJ)*

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* Includes site-specific data from all Johnson & Johnson owned and leased sites over 50,000 square feet where Johnson & Johnson has operational control as well as manufacturing and R&D sites under 50,000 square feet, unless otherwise noted.

52% Renewable Electricity Across Our Operations*

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* Percentage of electricity used by Johnson & Johnson that is generated from renewable sources. Europe includes Belgium, France, Germany, Greece, Ireland, Italy, Netherlands, Poland, Spain, Sweden, Switzerland, and the United Kingdom. North America includes United States and Canada only.

Contact lenses made with renewable electricity

With our new renewable agreements, Johnson & Johnson Vision will be powered entirely with 100% renewable electricity. That means all ACUVUE brand contact lenses will be made using 100% renewable electricity, since Johnson & Johnson Vision’s production site in Limerick, Ireland, is already powered by 100% wind.

As a leader in the healthcare industry, we’re guided by our strong sense of purpose, helping people around the world see better, connect better, live better. That commitment extends to how we innovate to support the health of the planet, and that includes making all our contact lenses with renewable electricity.
Peter Menziuso
Worldwide President, Johnson & Johnson Vision

Expanding solar energy

We continued to expand the installation of on-site solar arrays at our facilities, with new installations in 2021 in China, Colombia, South Africa and Thailand. New this year was the introduction of on-site PPA structure in the form of multiyear "energy as a service" contracts at two sites, enabling GHG-reduction benefits without the need for capital investment. At one of the largest manufacturing sites in South Africa, the Cape Town installation represented the first renewable electricity initiative for Johnson & Johnson in South Africa.

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Our teams are finding creative ways to supply renewable energy, both on-site and off-site, to bring us closer to our climate goals. On the demand side, our designers and engineers are using innovative technologies and techniques to decrease the amount of power needed to run global operations, even as Johnson & Johnson continues to grow.
Paul Gioioso
Vice President, Engineering & Property Services, Johnson & Johnson

Johnson & Johnson Consumer Health, Bangkok, Thailand.

Reducing carbon emissions by land, air and sea

As part of our ongoing efforts to leverage data science across our operations, in 2021, we automated a manual freight load planning process to produce a 3D loading plan that optimizes space utilization of shipping containers, resulting in lower GHG emissions from shipping, a faster loading process and cost savings. In Europe, we identified opportunities to switch deliveries from our Belgium distribution center to Denmark, France and Spain from air to road—significantly reducing the carbon emissions with minimal impact to customer service.

Eliminating ozone-depleting substances

Chlorofluorocarbons have been eliminated from use in our facilities for several years. We plan to eliminate the use of hydrochlorofluorocarbons (HCFCs) by the end of 2025, or earlier where required by government regulations, and in 2021, all Johnson & Johnson manufacturing sites were required to prepare an HCFC phase-out plan.

The Johnson & Johnson MedTech office in Irvine, CA
Green Building
We continue to pursue Leadership in Energy & Environmental Design (LEED) certification or equivalents (for example, Building Research Establishment Environmental Assessment Methodology [BREEAM]). In 2021, we added seven LEED certifications and one recertification across our facilities, bringing our total at the end of 2021 to 67 LEED-certified and BREEAM-certified Johnson & Johnson sites. More than 9.4 million square feet of Johnson & Johnson workspace is now LEED-certified.

Johnson & Johnson's site in Irvine, CA, which was our 60th LEED-certified site.

Energy Use & Energy Intensity*

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* See the Energy Use table in the ESG Performance Data section of this Report for footnote considerations related to Energy Use data.

At Johnson & Johnson, we are continuously evaluating climate-related risks and opportunities to strengthen our business and to ensure that we can continue to meet our patient and customer needs. In 2021, we undertook a focused assessment of the potential physical climate-related risks on our own properties and certain supplier locations. We identified several opportunities to improve business resilience such as access to reliable energy and water supply in the event of a disruption that we will build into our long-range capital planning process. Several projects are planned and budgeted, including a potable water tank, storm water pumps and additional emergency generation.

Partnering for climate action

In 2021, we further engaged in partnerships and coalitions to help make a positive impact on the health of our climate beyond our value chains.
Becoming a Sustaining Sponsor of the Beyond the Megawatt Initiative of the Clean Energy Buyers Alliance. This initiative is advancing several projects designed to help mobilize deeper environmental and social impacts in large customer energy procurement with a target outcome of contributing to carbon-free energy systems that are resilient, equitable and environmentally sustainable.
Joining the International Leadership Group for a Net Zero National Health Service (NHS) and signed an open letter with other leading CEOs to show our support for the UK NHS climate plan.
Aligning with more than 400 corporations and investors to sign an open letter to President Biden calling for an ambitious U.S. emissions reduction target. The initiative was led by the We Mean Business Coalition.
Participating with nine pharmaceutical companies to launch Energize, an initiative to help decarbonize the global pharmaceutical supply chain. The program aims to educate key industry suppliers on renewable procurement opportunities and help them in their transition to renewable energy.
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To learn more about our partnerships at the intersection of climate change and health equity, see Our Race to Health Equity.

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