2019 Health for Humanity Report
Lead Image - Resp Bus Practices
Lead Image - Resp Bus Practices

Employees from Janssen Pharmaceutical Companies of Johnson & Johnson working together toward shared goals, because collaboration is in our DNA and that is how our top breakthroughs happen.

Responsible Business Practices
Responsible Business Practices Responsible Supply Base
GRI
  • 308
    Supplier Environmental Assessments 2016
  • 308-1
    New suppliers that were screened using environmental criteria
  • 308-2
    Negative environmental impacts in the supply chain and actions taken
  • 407-1
    Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk
  • 408-1
    Operations and suppliers at significant risk for incidents of child labor
  • 409-1
    Operations and suppliers at significant risk for incidents of forced or compulsory labor
  • 412-1
    Operations that have been subject to human rights reviews or impact assessments
  • 414
    Supplier Social Assessment 2016
  • 414-1
    New suppliers that were screened using social criteria

Engaging Suppliers

We continue to enroll suppliers in our Sustainable Procurement Program (SPP) to help drive social and environmental improvements, set clear targets and improve transparency throughout our supply base.

Supplier sustainability assessment and disclosure: As part of their participation in our SPP, all suppliers complete an assessment by EcoVadis, a recognized provider of business sustainability ratings for global supply chains. In 2019, 750 suppliers underwent an EcoVadis assessment. Among the suppliers we have assessed more than once, we see our program driving supplier improvements across all areas of sustainability, most notably labor standards and environmental performance, increasing scores by 4% and 2.5% respectively. An important part of this program is encouraging our suppliers to publicly disclose their environmental performance—including emissions and water use—to CDP as part of our own CDP Supply Chain commitment. In 2019, 344 Johnson & Johnson suppliers were requested to disclose to CDP, an increase of 13% over 2018. This progress demonstrates the positive influence a large sustainability-minded procurement organization can have across its entire supply chain, influencing the way business impacts social development and environmental stewardship through multiple suppliers around the world.

2020 Goal Progress
Enrolled suppliers covering approximately 71% of spend in our Sustainable Procurement Program.
84%
of suppliers in our SPP submitted climate change information upon our request as part of our CDP Supply Chain program.

Highlight
Highlight
In 2019, Johnson & Johnson was again named to the CDP supplier engagement leader board. We were the first healthcare company to achieve this position in 2018 and the first healthcare company to do so for three years in a row.

Auditing supplier compliance through Environmental Health & Safety (EH&S) and Social Audits: We verify and monitor supplier compliance with laws and regulations, and with our Responsibility Standards for Suppliers through formal assessment and audits. Our EH&S audit program, which has been in place since 2006, is conducted using the audit protocol and checklist developed by the Pharmaceutical Supply Chain Initiative (PSCI). We completed 134 EH&S audits in 2019, the majority of them in Asia. We further standardized our framework for ensuring compliance with our human rights standards by launching a dedicated social audit program. In 2018, we introduced a program of social audits, mostly conducted according to SMETA 4 guidelines and with a focus on human rights. In 2019, our first full year of social audits, 50 audits were completed by accredited external firms. Our procurement teams are progressing plans with relevant suppliers to establish corrective actions and support suppliers with their implementation.

96%
of all Global Procurement employees completed training on Responsibility Standards for Suppliers since 2018.

Our Performance

Sustainable Procurement Program (SPP)

2019

2018

2017

Spend with suppliers enrolled in SPP (billions)* $17.1 $16.3 $15.0
Percentage of total supplier spend attributable to suppliers enrolled in SPP 71% 61% 51%
Number of suppliers newly enrolled in SPP, annual 279 139 33
Number of suppliers enrolled in SPP, total since the program launch (2015) 779 500 361
Suppliers invited to participate in the CDP Supply Chain Climate program 344 305 250
Percentage participated 84% 90% 97%
Suppliers invited to participate the CDP Supply Chain Water program 112 108 108
Percentage participated 84% 88% 86%

Supplier EcoVadis Assessments

2019

2018

2017

EcoVadis assessments completed 750 542 685
Supplier risk ranking based on EcoVadis assessments
Low-risk 462 323 342
Medium-risk 259 195 301
High-risk 29 24 42

Supplier Social Audits

2019

2018

Supplier social audits completed, total 50 11
Completed using SMETA 4-pillar protocol 37 9
Completed using PSCI protocol 13 2
Social audits completed, by region
Asia Pacific 37 8
Europe, Middle East & Africa 5 1
Latin America 6 2
North America 2 0
Number of critical findings** identified as a result of supplier social audits 5 0

Supplier EH&S Audits

2019

2018

2017

EH&S audits and technical visits*** completed, total 206 185 189
EH&S audits 134 101 Not reported
Technical visits 72 84 Not reported
Audits and technical visits, by region
Asia Pacific 174 155 162
Europe, Middle East & Africa 13 18 21
Latin America 7 5 6
North America 12 7 0
Number of suppliers identified as high-risk for non-conformance to Johnson & Johnson Responsibility Standards for Suppliers 32 23 23
Number of critical EH&S findings** identified as a result of EH&S audits 34 27 25
Safety-related 23 21 22
Environmental-related 11 6 3
* Spend we have control over / addressable spend; includes products and services that procurement teams can negotiate with suppliers to meet business goals.

** We define a critical finding as evidence of very high risk to human life or potential catastrophic impact to facility, community or environment. We expect suppliers and potential suppliers to address critical findings immediately.

*** A technical visit is a follow-up visit to the initial audit.

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