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Sustainability Governance

Sustainability Governance

Robust governance structures with clear chains of accountability enable us to deliver on both our commitments and stakeholder expectations. Our sustainability governance includes Board of Directors oversight, management accountability, corporate policies and management systems, and clearly stated public policies and positions on key environmental, social and governance (ESG) topics. We view effective management of these matters as a business fundamental and seek continuous improvement in these areas because they underpin the long-term success of our Company and our ability to deliver value for our stakeholders.

The Johnson & Johnson Enterprise Governance Council (EGC) serves as the primary governance body overseeing ESG ESG Environmental, Social and Governance View entire glossary topics and supporting the implementation of the Company’s Enterprise Risk Management Framework. The EGC is comprised of senior leaders who represent our Pharmaceutical, Medical Devices and Consumer Health business segments and our global enterprise functions with oversight of these priority issues.

In 2020, the EGC considered an assessment of its current governance structure and kicked off a project to optimize governance to reflect the evolving nature of management of ESG topics across the Company. The EGC also oversaw the work of the Enterprise Human Rights Governance Council, which reports to the EGC and is responsible for strengthening our approach to human rights due diligence and management. See our section on Human Rights. In addition to developing an ESG training program for EGC members and their teams launching in 2021, the EGC oversaw the process for setting our Health for Humanity 2025 Goals. The EGC also oversaw and supported the Company’s Priority Topics Assessment (PTA PTA Priority Topics Assessments View entire glossary ) update undertaken in late 2020 to better understand the impacts of the COVID-19 pandemic and the social and racial injustice movement on stakeholder views regarding sustainability priorities for Johnson & Johnson.

For more information, see our Position on Sustainability Governance.

Engaging with Our Stakeholders

As a global healthcare company, Johnson & Johnson interacts with numerous stakeholder groups at the global, national and local levels. Our Credo, written more than 75 years ago, embraces the diversity of stakeholders to whom we are responsible, and serves as our guide to creating long-term value for our Company and for society. Ongoing and proactive engagement with these groups makes our Company stronger and better informed. It helps us gain valuable insight into our stakeholders’ perspectives and the topics that matter to them. It enables us to develop products and services that are responsive to their needs. This engagement also allows us to share information about our Company’s strategy, practices and performance. The following are select examples of stakeholder engagements conducted in 2020.

Stakeholder engagement on ESG: The PTA PTA Priority Topics Assessment View entire glossary is an important mechanism to engage with and understand the views of our key stakeholders on ESG ESG Environmental, Social and Governance View entire glossary topics that they believe are priorities for Johnson & Johnson. In 2020, we conducted a PTA update that engaged Johnson & Johnson leaders spanning multiple functions and geographies, and external stakeholders including NGOs, partners, suppliers, and customers.

Members of both our management team and the Board of Directors met virtually with many shareholders around the world to discuss our Health for Humanity sustainability approach and our progress in key ESG measures. In June 2020, we hosted our third Health for Humanity Report investor webcast to accompany the release of our annual Health for Humanity Report. It provided shareholders the opportunity to ask questions of leaders in Investor Relations; Quality & Compliance; Medical Safety; Global Public Health; and Environmental Health, Safety & Sustainability.

Participation in strategic initiatives: To support dialogue and efforts related to the role of business in society, we continued to participate in important initiatives like the Council for Inclusive Capitalism with The Vatican, Chief Executives for Corporate Purpose’s CEO Investor Forum and Business Roundtable (BRT). Johnson & Johnson’s Chairman and CEO, Alex Gorsky, serves as Chair of BRT's Corporate Governance Committee while Wanda Hope, Johnson & Johnson’s Chief Diversity, Equity & Inclusion Officer, chairs BRT’s Diversity and Inclusion Working Group. In December 2020, Johnson & Johnson was recognized as the first foreign-funded open innovation platform to have been accredited by the Shanghai Municipal People's Government, allowing Johnson & Johnson to support Shanghai in the development of globally influential scientific innovation centers. In September 2020, Johnson & Johnson joined other life sciences companies and the Bill & Melinda Gates Foundation in signing an unprecedented communiqué that outlined a commitment to equitable access to the innovations being developed to fight the COVID-19 pandemic.

Engaging with policymakers: As a global company, Johnson & Johnson works with patient groups, providers, governments, and other stakeholders worldwide to ensure patients have access to affordable, safe, quality healthcare. We work with health systems, so they may recognize and value medical innovation, and we support others who share our goals. We are committed to working with stakeholders so they have a better understanding of the positions we take, why we take them and how we work to advance them.

In 2020, we engaged in a variety of forums in the United States and around the world to advance policy related to the efficient and equitable access for COVID-19 vaccines. Further, recognizing the pandemic’s impact on health inequities and the importance of addressing the needs of diverse populations, we supported PhRMA’s release of industry-wide principles to address diversity in clinical trials and participated in a Women's Congressional Policy Institute briefing on “Childbirth Should Not be a Death Sentence: Global Maternal Health and the Impact of COVID-19.” We also advocated for key pieces of legislation, including the Black Maternal Health Momnibus Act of 2020 in Congress and extending Medicaid’s postpartum insurance coverage for pregnant women from an arbitrary 60-day period to the 12 months following birth. As the founding knowledge partner and sponsor of All Policies for a Healthy Europe, in 2020 we helped develop numerous publications across thematic areas of the economy of well-being (covering COVID-19, health systems sustainability, value-based healthcare, mental health and cancer), digital health and environmental health. Please see our approach to Public Policy Engagement.

Engaging with ESG standard setters: In 2020, the Global Reporting Initiative (GRI) in partnership with the Robert Wood Johnson Foundation, published a new framework called the Culture of Health for Business (COH4B), as part of a goal to stimulate private sector contribution to health through the practice of sustainability reporting. The publication followed two years of consultation and development, in which Johnson & Johnson participated as a member of the COH4B Advisory Committee. In this 2020 Health for Humanity Report, we report our performance against COH4B practices and metrics. Visit the Reporting Hub to see our COH4B Framework.

Improving our ESG Policies and Positions: As transparency and disclosure on ESG has become of increasing interest among various stakeholders, we have continued to improve our disclosures on key ESG topics in 2020 with separate positions on a discrimination-free workplace, our innovative ecosystem, our efforts to strengthen health systems and our commitment to business continuity. For more information see ESG Policies & Positions.

Stakeholder engagement for this Report: Various internal stakeholders across Johnson & Johnson's global teams provided their input for this Report. The Chairman and CEO, the Disclosure Sub-Committee and the Disclosure Committee reviewed the Report outline and new metrics, and the Disclosure Committee reviewed the full Report. The final content was reviewed by the full Executive Committee, including the Chairman and CEO. See also our Position on Stakeholder Engagement.

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