Johnson & Johnson’s 2021 Health for Humanity Report (the Report) details our progress in sustainability. It is also our primary source of annual disclosure on ESG performance and should be reviewed in conjunction with disclosures on the ESG Policies & Positions page. Data in this Report cover the period between January 1, 2021, and December 31, 2021, unless otherwise indicated. Reporting on other matters specific to financial performance of the Company and its subsidiaries can be found in our 2021 Annual Report.
This Report covers Johnson & Johnson’s worldwide operations across our three business segments: Pharmaceutical, MedTech and Consumer Health. 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” and all similar references are to Johnson & Johnson and its consolidated subsidiaries, unless otherwise stated or the context otherwise requires. All monetary references to dollars ($) refer to U.S. Dollars (USD).
Various activities highlighted throughout the Report are funded by 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. The Foundation operates worldwide as Johnson & Johnson Foundation (founded 1953) and Johnson & Johnson Foundation Scotland (founded 2007). More details on foundation activities can be found in the Johnson & Johnson Foundation U.S. 2021 Annual Report and the Johnson & Johnson Foundation Scotland 2021 Directors’ Report.
The Report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option. We also disclose our performance against additional ESG standards and frameworks (see ESG Disclosure Index), including:
- GRI’s Culture of Health for Business (COH4B) framework;
- 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, augmenting disclosures against this set of 17 indicators; and
- UN Global Compact (UNGC); this Report serves as our UNGC annual Communication on Progress.
Materiality approach:50 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 2021 Priority Topics Assessment for details of our latest update and Priority Topics Matrix.
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 2020 Goals Scorecard (see Health for Humanity 2025 Goals - First Year of Progress - ERM CVS); and
- Select 2021 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 Emissions, Electricity and Water Data - ERM CVS). 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 (2021 Our Voice 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)
- Human Rights (Collective Bargaining Agreements)
- Product Quality Indicators
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 2021 Annual Report.
Acquisitions: 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 grace period 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.
The dates and details of recent acquisitions can be found in Note 18 (Acquisitions and Divestitures) on page 84 of our 2021 Annual Report.
Divestitures: Except for injury statistics and violations or fines, EH&S data of divested companies are excluded in the reporting year.
Restatements: We use a 5% change threshold to apply to significant changes in data or information that is restated, unless otherwise noted. There are a number of 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.
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 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 impact of the COVID-19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays and cancellations of medical procedures, supply chain disruptions and other impacts to the business, or on the Company’s ability to execute business continuity plans as a result of the COVID-19 pandemic. 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 2, 2022, 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 release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.
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