Johnson & Johnson’s 2020 Health for Humanity Report (the Report) details our progress in sustainability. It is also our primary source of annual disclosure on environmental, social and governance (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, 2020, and December 31, 2020, unless otherwise indicated. Reporting on other matters specific to financial performance of the Company and its subsidiaries can be found in our 2020 Annual Report.
This Report covers Johnson & Johnson’s worldwide operations across our three business segments: Pharmaceutical, Medical Devices 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.
The Report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option. New this year, we report our performance against GRI’s new framework, the Culture of Health for Business (COH4B) practices and metrics. The Report also includes the Sustainability Accounting Standards Board (SASB) Index, providing disclosures against relevant SASB Standards, and our first qualitative Task Force on Climate-related Financial Disclosures (TCFD) disclosure, building on our responses to the CDP climate questionnaire in previous years. The Report also serves as our annual United Nations Global Compact Communication on Progress.
Materiality22 Approach: The content in this Report is guided by our Priority Topics Assessment (PTA), which helps us identify and prioritize the environmental, social and governance topics that matter most to our stakeholders and to our Company (for more information, please see Sustainability Priorities). As we navigate the rapidly evolving space of ESG frameworks, standards and guidelines, we leverage these material issues to prioritize our disclosures and effectively communicate to our stakeholders. We will continue to evaluate these topics in the future and, accordingly, our ESG disclosure may evolve over time.
Independent Review and Assurance: ERM Certification and Verification Services (ERM CVS) conducted independent review and assurance of the following information and data in the Report (see independent assurance statements by ERM CVS):
- Progress against our Health for Humanity 2020 Goals, and associated data presented in the Health for Humanity 2020 Goals Progress Scorecard.
- Progress against United Nations Sustainable Development Goals (UN SDGs) commitments, and associated data presented in the UN SDGs Commitment Progress Scorecard.
- Select year 2020 global greenhouse gas (GHG) emissions inventory, the percentage of electricity use generated by renewable energy sources, and NOx and SOx emissions (from combustion sources).
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) Governance
- Employee Turnover
- Employee Safety (select metrics)
- Ethics and Compliance (Our Credo Integrity Line Complaints & Inquiries)
- Ethics and Compliance (Triage Committee Investigations)
- Product Quality
Our Global Audit & Assurance 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 2020 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 83 of our 2020 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 and business strategy. 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: 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, 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 health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies. 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 3, 2021, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” in the Company’s most recently filed Quarterly Report on Form 10-Q and the Company’s subsequent 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 release 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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