Climate Resilience

^‡ Independent assurance statements by ERM CVS.

¹ 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.

² Our diverse product portfolio makes it difficult to track an organization-specific metric, therefore we use revenue as denominator for energy intensity. Energy intensity ratio includes electricity, stationary fuels, and district heating and cooling.

³ Selected year 2019 global GHG emissions inventory including Scope 1, Scope 2 (location- and market-based) emissions, Scope 3 emission categories 1, 2, 3, 4, 5, 6, 8, 9, the percentage of electricity use generated by renewable energy sources, and NOx and SOx emissions (from combustion sources) were third-party assured by ERM Certification and Verification Services Inc. Please refer to Independent Assurance Statement for GHG Emissions Data in this Report.

⁴ In accordance with guidance from World Resources Institute Corporate Accounting and Reporting Standard, we restated the 2017-2018 values to reflect newly released electricity grid emission factors as well as addition or removal of acquisitions and divestitures. This threshold for restatement deviates from the one included in the About this Report section. We do not currently use purchases, sales or transfers of offsets in our GHG accounting. Gases covered in these calculations include CO₂, CH₄, N₂O, and HFCs. Perfluorinated chemicals, sulfur hexafluoride and nitrogen trifluoride do not result from our operations. We do not calculate or report biogenic CO₂ emissions in MT CO₂e separately from the gross direct (Scope 1) GHG emissions. Electricity emission factors are obtained from the International Energy Agency’s CO₂ Emissions from Fuel Combustion Report and the U.S. Environmental Protection Agency's eGRID publication for location-based Scope 2 reporting, and from supply contracts and residual emission factors, where available, for market-based Scope 2 reporting. Fuel emission factors are obtained from the EPA Climate Leaders publication. Global Warming Potentials are obtained from the Intergovernmental Panel on Climate Change Fifth Assessment Report. The chosen consolidation approach for emissions is operational control.

⁵ We did not report Scope 2 emissions using the market-based method prior to 2017. Starting from 2017, we are reporting Scope 2 emissions using both location-based and market-based methods, based on the latest Scope 2 guidance from the World Resources Institute in the Corporate Accounting and Reporting Standard.

⁶ Emissions were calculated using Company spend in the reporting year paired with appropriate economic input/output (IO) emission factors from Carnegie Mellon’s 2002 dataset. Where more specific primary data were able to be obtained, they were used in place of the IO calculation methodology.

⁷ Business Travel emissions for reporting year 2017 and 2018 are being restated because of the reclassification of spend into updated categories.

⁸ Emissions from Employee Commuting were calculated using survey data from a sample of employees in all regions and extrapolated for all global employees. It should be noted that because of the assumptions that were made, Johnson & Johnson did not receive third-party limited assurance for this scope, but will work to improve these assumptions in the coming years.

⁹ Emissions from Fuel-and Energy-related Activities were calculated for emissions from transportation and distribution losses from purchased electricity. Emissions were calculated by combining purchased electricity with an appropriate emissions factor and percentage grid loss for each location.

¹⁰ Emissions from Upstream Leased Assets were calculated by applying the energy intensity from office locations in our Scope 1 and Scope 2 footprint to the building area of leased assets less than 50,000 SqFt, which are excluded from Scope 1 and Scope 2 reporting.

¹¹ Emissions from Waste Generated in Operations were calculated for non-hazardous waste from manufacturing and R&D operations using DEFRA's emissions factors for waste. Emissions for 2017-2018 are being restated because of an update in calculation methodology.

¹² Emissions from Downstream Transportation and Distribution were calculated using the U.S. EPA’s SmartWay Program, and are provided for U.S. shippers only.

¹³ Emissions from the Use of Sold Products and the End-of-Life Treatment of Sold Products were calculated using sales volumes for all Johnson & Johnson products combined with lifecycle assessment (LCA) models where sales volumes could be obtained; where they could not be obtained, sales revenues and average unit prices were used to estimate volumes. Because of the size of our product portfolio, LCAs were not performed for every Johnson & Johnson product, so products were placed into LCA categories and a representative product LCA was applied. It should be noted that because of the assumptions that were made, Johnson & Johnson did not receive third-party limited assurance for these scopes, but will work to improve these assumptions in the coming years.

¹⁴ Emissions from the Processing of Sold Products, Downstream Leased Assets, Franchises, and Investments are not applicable to Johnson & Johnson operations.

¹⁵ Greenhouse gases covered in these calculations include CO₂ only.

¹⁶ Includes site-specific data from all Johnson & Johnson manufacturing and R&D sites only.