Our Global Procurement organization is responsible for managing supplier relations and hosting a Citizenship Center of Excellence that advances sustainability within our global supply base. Global Procurement works closely with the Environmental Health, Safety & Sustainability organization to monitor and verify supplier compliance with our environmental health and safety requirements.
Our approach to managing responsible supply includes:
- Ensuring compliance with global requirements related to supply chain transparency and disclosure;
- Assessing supplier conformance with Johnson & Johnson’s Responsibility Standards for Suppliers as well as applicable legal and regulatory requirements;
- Auditing supplier performance, with the audit approach prioritized based on EcoVadis scores, geographic location, and the procurement category, among other criteria;
- Expanding supplier engagement through our Sustainable Procurement Program (SPP) to support suppliers in achieving excellence by embedding sustainable social and environmental practices, including transparency, target setting and public disclosure, into their businesses and respective supply chains.
Sustainable Procurement Program
We continue working toward our Health for Humanity 2020 Goal—to enroll supplies covering 80% of our spend in our SPP. In 2018, we achieved our annual target of enrolling 61% of spend in our SPP.
To participate in our SPP, all suppliers, upon enrollment, complete an assessment through EcoVadis, a globally recognized third-party supply chain rating platform, and we monitor EcoVadis scores with an expectation of improvement over time. Additionally, suppliers are required to implement at least one of the following goals established by our procurement teams:
- Publicly report two or more sustainability goals and track progress over time;
- Participate annually in CDP Supply Chain reporting;
- Achieve a minimum standard in EcoVadis, public reporting, or CDP as a High Performer;
- Achieve industry-specific goals, e.g., gaining certain certification, specific public reporting, or delivering social projects.
The requirements for all enrolled suppliers are fully transparent, and are communicated through our Supplier Sustainability Toolkit.
In 2018, we achieved recognition by CDP as a CDP Supplier Engagement Leader for leadership on supplier engagement to tackle climate change. We were among the highest-scoring 3% of companies in CDP’s third annual Supplier Engagement Rating. This Supplier Engagement leader board recognizes organizations from around the world for their work to manage and reduce carbon emissions and address climate-related issues across their supply chains in the past CDP-reporting year. We are the first healthcare company to be admitted to CDP’s Supplier Engagement leader board.
Sustainable Procurement Program (SPP)
|Spend with suppliers enrolled in SPP (billions)*||$16.327||$14.969||$12.796|
|Percentage of total supplier spend attributable to suppliers enrolled in SPP||61%||51%||44%|
|Suppliers newly enrolled in SPP, annual||139||33||228|
|Suppliers enrolled in SPP, cumulative since the program launch (2015)||500||361||328|
|Suppliers invited to participate in CDP Supply Chain Climate program||305||250||244|
|Suppliers invited to participate in CDP Supply Chain Water program||108||108||79|