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People. Places. Practices.


Finding more ways to help more people.

2015 Citizenship & Sustainability Report


Guide to the Icons

Contents The icons below help to communicate the scope and


boundary for each topic covered in our report. They
represent the audience and locations throughout the
world impacted by our business segments or enterprise.

People Practices Operations Global Pharmaceutical

Our Credo 3 Global Health 16 Governance & Ethical


Performance 59
Letter from Our Chairman Access & Affordability of
& CEO 4 Health Care 21 Supply Chain 61 Employees North America Medical Devices

Successes & Opportunities 5 Innovation 25 Quality & Safety of Products 62

Organizational Profile 6 Customer Relationship


Philanthropy 29
Management 64 Customers Latin America Consumer
Our Citizenship & Sustainability 8
Supply Chain Risk Management 65
2020 Goals 9
Compliance 66
Completion of Healthy Future
2015 Goals 10 Places Procurement & Supplier
Local
Communities
Europe, Middle
East, Africa
Enterprise

Management 67
Our Materiality Assessment 13
Environmental Responsibility 33 Human Rights 73
Report Profile & Assurance
Statement 95 Product Stewardship 35 Labor Practices & Workforce 75 Asia-Pacific

2015 Data Summary 98 Our Ingredients & Raw Materials 41 Employee Recruitment, About the GRI Indicators
Development & Retention 79 In addition to a GRI index at the back of this report,
United Nations Global Compact Sourcing of Raw Materials 42
Statement 102 Workplace Health & Safety 81 we have provided indications throughout to denote
Climate 45 where content related to specific GRI indicators can
Global Reporting Initiative (GRI) Health-Conscious, be found. The following key presents two-letter
Index 105 Water 52 Safe Employees 85 abbreviations for the standard disclosure areas
outlined by the Global Reporting Initiative. These
Waste 56 Employee Diversity & Inclusion 89
abbreviations, along with numbers that correspond
Transparency 90 with performance indicators, appear throughout this
report near the respective entries.
Stakeholder Engagement 91
EN Environmental
Financial Performance 94
HR Human Rights
LA Labor Practices and Decent Work
SO Society
PR Product Responsibility
EC Economic

2015 Citizenship & Sustainability Report 2


Our Credo

We believe our first responsibility is to the doctors, We are responsible to the communities in which
Contents nurses and patients, to mothers and fathers and we live and work and to the world community as
Our Credo all others who use our products and services. In well. We must be good citizenssupport good
Letter from meeting their needs everything we do must be of works and charities and bear our fair share of
Our Chairman & CEO high quality. We must constantly strive to reduce taxes. We must encourage civic improvements and
Successes & Opportunities our costs in order to maintain reasonable prices. better health and education. We must maintain in
Organizational Profile Customers orders must be serviced promptly and good order the property we are privileged to use,
Our Citizenship & accurately. Our suppliers and distributors must protecting the environment and natural resources.
Sustainability have an opportunity to make a fair profit.
2020 Goals Our final responsibility is to our stockholders.
Completion of We are responsible to our employees, the men and Business must make a sound profit. We must
Healthy Future 2015 Goals women who work with us throughout the world. experiment with new ideas. Research must
Our Materiality Assessment Everyone must be considered as an individual. be carried on, innovative programs developed
We must respect their dignity and recognize their and mistakes paid for. New equipment must
merit. They must have a sense of security in their be purchased, new facilities provided and new
People
jobs. Compensation must be fair and adequate, products launched. Reserves must be created
Places and working conditions clean, orderly and safe. to provide for adverse times. When we operate
We must be mindful of ways to help our employees according to these principles, the stockholders
Practices fulfill their family responsibilities. Employees must should realize a fair return.
feel free to make suggestions and complaints.
There must be equal opportunity for employment,
development and advancement for those qualified.
We must provide competent management, and
their actions must be just and ethical.

2015 Citizenship & Sustainability Report 3


Letter from
Also in 2015, we expanded the ways we
think about health and sought new ways to make
everyone, everywhere, healthier as we finalized

Our Chairman our new Citizenship & Sustainability 2020 Goals,


described in detail within this report. Our Citizenship

& CEO & Sustainability 2020 Goals continue our legacy of


work to advance healthier societies and will help
more people live healthier lives through the ideas we
generate, products we make, and good habits and
practices we create. These new goals have three key
focus areas:

For 130 years Johnson & Johnson People: We will help people be healthier by upon our proven strategic principles.
providing better access and care in more places In developing our new Citizenship &
Contents has been helping people everywhere around the world. Sustainability 2020 Goals we have broadened
Our Credo
live longer, healthier and happier lives.  Places:We will make the places we live, work our view to consider not just the challenges of the
Letter from
Our Chairman & CEO Written nearly 75 years ago, and play healthier by using fewer and smarter business we are in, but of the world in which we
resources. operate. Global trends that could impact our ability
Successes & Opportunities Our Credo guides everything we do to help people and the environment be healthier
Organizational Profile We will team up with partners and
 Practices:
with a strong sense of responsibility, include: population growth, poverty and inequality,
Our Citizenship & employees to further advance our culture of
Sustainability inspiration and a clear measure of health and well-being.
rising global instability, climate change, water
and resource scarcity, human rights issues, and
2020 Goals accountability. Our Credo outlines our pressures to increase transparency.
Completion of We believe we can use our expertise, influence,
Healthy Future 2015 Goals commitments to the people, places global reach and partnerships to help make this These and many other global challenges are
Our Materiality Assessment and communities we touch every day world a healthier, better place. We are acutely aware recognized within the UN Sustainable Development
of the dramatically changing global healthcare Goals (SDGs) ratified in late 2015. The SDGs provide
with our products and solutions, and a comprehensive framework for governments,
market. Populations of developed nations are
People informs our strategic approach to our aging rapidly and intractable diseases are taking NGOs, private sector and other entities to consider

Places Citizenship & Sustainability efforts. hold in some developing countries, increasing in their strategic plans moving forward. Later in 2016
healthcare costs; middle classes are expanding we will provide a perspective on the role we can play
At Johnson & Johnson, we aspire to improve health in many developing nations, putting pressure on in addressing the SDGs.
Practices
in all we do, and everywhere we go. Since the existing healthcare infrastructure and capacity; and As the worlds largest, broadly based healthcare
launch of our Healthy Future 2015 goals in 2010 patients are becoming increasingly involved in their company, guided as we are by Our Credo, we are
we have worked to advance global health; steward own healthcare decisions, necessitating a holistic committed to fulfill our unique opportunity to help
a healthy environment; increase sustainability approach to meeting their needs by integrating billions of people live longer, healthier, happier lives
among our suppliers; foster the most engaged, wellness solutions, innovative new medicines and today, and for generations to come.
health-conscious and safe employees in the advanced technologies.
world; advance community wellness; enhance Sincerely,
We believe the most important contribution we
outcome measurement in philanthropy; and can make to the dynamic challenges we are facing
increase transparency and collaboration. We met is innovationinnovation in products and solutions,
most of our goals and, in so doing, helped even services, processes and practices. The promise of Alex Gorsky
more people and deepened our relationships with innovation in health care is great, but it comes with Chairman of the Board of Directors and
our stakeholders. Our performance is presented the need for forward-focused investment in R&D, Chief Executive Officer
in this report and highlighted in Successes and a holistic approach to evolving global healthcare
Opportunities. markets and bold future-facing strategies that build

2015 Citizenship & Sustainability Report 4


Provided below are the material areas where we have achieved our greatest successes in
2015 and those where opportunities remain. A general description of each area is given along
with a link to the section of the report where details are available.

Successes Opportunities
Global Health Access
We launched a new, enterprise-wide Global Public Health strategy and or- While we have strong access programs in place, our efforts must continue
ganization to leverage the full breadth and depth of Johnson&Johnson to to evolve to address challenges stemming from limitations of existing
deliver comprehensive, long-term health solutions that deliver better health healthcare infrastructure and increasing demands by people who need
outcomes for families and communities. greater access to quality health care.
Contents
Our Credo Quality & Safety of Products Water
Letter from We continually explore new ways to foster our proactive quality culture and We operate in many areas of the world where water quality and quantity are
Our Chairman & CEO use our expertise to engage in leadership roles with external stakeholders an issue. While we are not a large water user, we are undertaking additional
Successes & Opportunities to influence and shape regulations, ensuring the Company continues to efforts to evaluate water availability in the areas in which we operate and to
deliver safe and effective products to improve the lives of our patients and implement water risk mitigation efforts in those areas where water risks are
Organizational Profile
customers. the highest.
Our Citizenship &
Sustainability
2020 Goals
Procurement and Our Suppliers Human Rights
By collaborating with our partners to strengthen the social and Managing the human rights considerations in our supply base is a critical
Completion of
Healthy Future 2015 Goals environmental performance of our supply base, we are driving and complex undertaking. Efforts are ongoing to expand human rights as a
sustainability efforts beyond our four walls, while also strengthening filter for supplier risk prioritization, update our Responsibility Standards for
Our Materiality Assessment
the Company. Suppliers to reflect all relevant provisions from the UN Guiding Principles on
Human Rights, and apply our Standards to all suppliers.
People Climate
We have realized a 9.8 percent reduction in facility CO2 emissions against Transparency
Places our 2010 baseline; approximately seven percent of the Companys energy We continue to assess how we approach transparency for any identified
is currently generated by clean/renewable sources; and on-site renewable material issues and work to raise the bar of our reporting in accordance
Practices and clean technology energy capacity has increased to 54 megawatts. In with the Global Reporting Initiative (GRI) strategic framework that we and
2015, we extended our commitments with two new energy and climate hundreds of other companies use for Citizenship & Sustainability reporting.
goals based on the latest climate science.
Stakeholder Engagement
Product Stewardship Our senior leadership establishes broad parameters for stakeholder
Improving the sustainability profiles of our products and/or packaging
engagement; we do not have an overarching policy for stakeholder
has been an integral part of the Companys goal-setting efforts for many
engagement or one group that leads it. As a decentralized company, our
years. Using our Earthwards approach, we are reducing the social and
employees engage with many stakeholders on a variety of topics related to
environmental impacts of our products.
our businesses throughout the world.
Governance
We created a new office of Worldwide Corporate Governance that will
partner with the Environment, Health, Safety & Sustainability and Citizenship
teams to measure progress against the completion of our Healthy Future
2015 goals and track progress on our new Citizenship & Sustainability
2020 Goals.

2015 Citizenship & Sustainability Report 5


Organizational Profile
G4-8

Europe, Middle East,


Africa (EMEA)
employees

North America
30.7%
employees Asia
employees
37.4%
Contents 18.8%
Our Credo
Letter from Africa
Our Chairman & CEO (included in EMEA
Successes & Opportunities total)

Organizational Profile
Our Citizenship &
Latin America
Sustainability employees
2020 Goals 13.1%
Completion of
Healthy Future 2015 Goals Total 2015 Net Sales,
Total Number Employees, Number of Operating
Our Materiality Assessment Worldwide Companies, Worldwide Worldwide

People
127,100 250 $70.1 billion
Places

Practices Johnson&Johnson is organized into three business segments:

Pharmaceutical Medical Devices Consumer


The Pharmaceutical segment is focused on five The Medical Devices segment includes a broad The Consumer segment includes a broad range
therapeutic areas: immunology (e.g., rheumatoid range of products used in the orthopaedic, surgery, of products used in the baby care, oral care, skin
arthritis, inflammatory bowel disease and psoriasis), cardiovascular, diabetes care and vision care fields. care, over-the-counter pharmaceutical, womens
infectious diseases and vaccines (e.g., HIV, health and wound care markets.
hepatitis, respiratory infections and tuberculosis), 2015 Sales: $25.1 billion
neuroscience (e.g., Alzheimers disease, mood 2015 Sales: $13.5 billion
disorders and schizophrenia), oncology (e.g.,
prostate cancer, hematologic malignancies and
lung cancer), and cardiovascular and metabolic
diseases (e.g., thrombosis and diabetes).
2015 Sales: $31.4 billion

2015 Citizenship & Sustainability Report 6


Sales by Geographic Region G4-9 Worldwide Sales
(in billions of dollars) (in billions of dollars)
U.S. International
74.3
71.3 70.1
32.3 31.4
28.1 14.9 13.1 28.5 27.6
14.2 15.7 25.1
15.3
13.0

17.4 18.3
Contents
13.9 14.7 14.5 13.5
Our Credo
12.8 12.3 12.1 9.5 9.4 8.3
Letter from
Our Chairman & CEO
5.2 5.1 5.2
Successes & Opportunities
2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015
Organizational Profile
Our Citizenship & Pharmaceutical Medical Devices Consumer Worldwide Total
Sustainability
2020 Goals
Completion of
Healthy Future 2015 Goals Johnson&Johnson, through its Family of Companies The Company is organized into three business segments: For more details about Our Management Approach
Our Materiality Assessment (the Company), is the largest and most diversified Pharmaceutical, Medical Devices and Consumer. and Johnson&Johnson Enterprise Risk Management
healthcare company in the world. The Management and Executive Committees of Framework, please see our Company website.
G4-3, G4-4 Johnson&Johnson are the principal management Johnson&Johnson can be found online at
People groups responsible for the strategic operations and www.jnj.com and via social media.
Our 250 operating companies employ approximately allocation of the Company resources. These committees
Places
127,100 employees in 60 countries (as of year- oversee and coordinate the activities of the Companys
end 2015), who are engaged in the research and three business segments.
Practices
development, manufacture and sale of a broad range
of products in the healthcare field. We utilize more Our worldwide headquarters are in New Brunswick, New
than 80,000 suppliers and hundreds of external Jersey, USA. We have been listed on the New York Stock
manufacturers to support the development and Exchange since 1944 under the symbol JNJ.
manufacturing of our products worldwide. The G4-5, G4-7
Companys product portfolio spans pharmaceuticals,
medical devices and consumerapproximately For changes in our business during the reporting period,
389,000 products and product variations in total that please see Note 20 (Business Combinations and
touch more than one billion people every day. Divestitures) on page 62 of our 2015 Annual Report
G4-6, G4-9, G4-12, G4-17 available on our Investor Relations website. G4-13

2015 Citizenship & Sustainability Report 7


Our Citizenship &
Sustainability

While the terms citizenship protecting the environment and conserving


natural resources; and conducting our
These pillars permeate everything we do and
Contents serve as critical components in our commitment
Our Credo
and sustainability are widely business responsibly so we can continue using to creating value through innovation, fostering
Letter from
Our Chairman & CEO
used today, the concepts capabilities, expertise, influence and partnerships
to fulfill our role in making the world a better,
global reach and local focus, driving excellence
in execution, and leading with purpose.
Successes & Opportunities behind them are not new to healthier place for generations to come. Ultimately, we view Citizenship & Sustainability
Organizational Profile Johnson & Johnson. With the launch of the Citizenship &
Sustainability 2020 Goals we are creating a new
as an intrinsic component of our aspiration to
Our Citizenship & help billions of people around the world live
Sustainability vision of healtha vision that seeks new ways longer, healthier and happier lives.
Our responsibilities to those who use our
2020 Goals to make everyone, everywhere healthier. Our
products and services, to our employees, to the
Completion of Citizenship & Sustainability 2020 Goals will help
communities in which we live and work, to the
Healthy Future 2015 Goals advance healthier societies. With the ideas we
environment, and to our shareholders are voiced
Our Materiality Assessment generate, products we make, and good habits we
in Our Credo and have guided employees of
create, we can do more than ever before.
Johnson & Johnson for nearly 75 years. Efforts
Our priorities are identified as three pillars:
People that we now capture under the heading of
Citizenship & Sustainability have existed internally
Places for decades across the enterprise.
People
A decentralized management approach is
Helping people be healthier, by
Practices one of our core strategic operating principles,
providing better access and care in
and we recognize the need to coordinate our
more places around the world.
Citizenship & Sustainability efforts across the
enterprise. Our office of Worldwide Corporate
Places
Governance partners with our Environment,
Making the places we live, work and
Health, Safety & Sustainability, and Citizenship
play healthier, by using fewer and
teams to coordinate and track performance of
smarter resources.
the Companys overall efforts. (For more, see the
Governance section of this report.)
Practices
Our Citizenship & Sustainability strategic
Teaming up with partners and
priorities focus efforts to improve our social,
employees to further advance our
environmental, governance and economic
culture of health and well-being.
impact and influence. These include: advancing
global public health; reducing carbon emissions,

2015 Citizenship & Sustainability Report 88


innovation improvements.
Increase
recyclability of our consumer product
packaging to 90-plus percent in key1 markets

2020 GOALS
through design for recyclability and partnerships.
Citizenship & Reduceabsolute carbon emissions 20 percent
Sustainability by 2020, 80 percent by 2050. Produce/procure
20 percent of electricity from renewable sources
by 2020; aspire to power all facilities with clean/
renewable energy by 2050.
Conducta comprehensive water-risk assessment
at 100 percent of manufacturing/R&D locations

Contents
People therapy to a cumulative 200,000 patients, saving
148,000 lives.
and implement water-risk mitigation plans
(WRMPs) at the high-risk sites.
Our Credo Goals: Train
30,000 skilled birth attendants to assist
Letter from
Our Chairman & CEO
Developand deliver innovative, life-changing
solutions to address the worlds major health
six million births.
Supportthe delivery of six million eye care
Practices
Successes & Opportunities
challenges. Goals:
Organizational Profile screenings to underserved children, and provide
Deliver
innovative healthcare access and training corrective treatments as needed to 100,000. Collaborate
with our suppliers to accelerate
Our Citizenship &
Sustainability programs that impact a billion lives in under- Activate
environmental and social improvements across
signature partnerships for five of our
2020 Goals served areas. the value chain.
largest Consumer brands to promote the health
Completion of Collaboratewith governments, nonprofits and and well-being of people in need around the Empower and engage the Johnson&Johnson
Healthy Future 2015 Goals the private sector to foster new models of health world. family of employees to become the healthiest
Our Materiality Assessment that improve economic well-being and healthcare workforce.
Drive
policy thought leadership and strategic
in emerging markets, including Brazil, China and
engagements to expand healthcare access Targets & Metrics:
People India.
and coverage in three emerging markets
Enroll
suppliers covering 80 percent of our spend
Targets & Metrics: (Brazil, China, India) and lead three to five pilots
Places in our Sustainable Procurement Program.
to demonstrate improvements in economic,
Expand the database documenting bedaquilines
productivity and health outcomes. Consistentlyachieve benchmark spending
Practices (Sirturo) effectiveness, efficacy and safety profile with U.S. diverse suppliers and small suppliers
through collaborative efforts to further increase globally, while doubling our global supplier
access. Places diversity footprint.
Initiate
Phase 3 trials and regulatory submissions
Goals: Empower and engage at least 100,000
for rilpivirine LA, the first all-injectable depot employees toward a personal best in health
regimen for HIV. Fully
integrate sustainable design solutions into
and well-being via the principles of Energy for
our product innovation processes.
Produce and donate one billion doses of Performance, innovative digital health tools,
mebendazole (Vermox) to treat more than Reduceour impacts on climate and water and advancing a culture of healthy eating and
100 million children at risk for intestinal worms, resources. physical activity.
and reduce infections by 26 million over five years Targets & Metrics:
through integrated treatment and prevention.
Newand existing products representing
Deliver
HIV/AIDS therapy access to 130,000 20 percent of Johnson&Johnson revenue
1. Key markets include those where mature recycling
adults and 5,000 children, and tuberculosis achieve Earthwards recognition for sustainable infrastructure exists (U.S., U.K., France, Germany, Canada).

2015 Citizenship & Sustainability Report 99


Completion of
Healthy Future 2015
Goals

Our performance against our Advancing Global Health worldwide development and commercialization of
Contents dapivirine for HIV prevention in women. In 2015,
Our Credo
Healthy Future 2015 goals has Goal: One research partnership and three Janssen Sciences Ireland UC (Janssen), one of the
Letter from helped us advance global health; licensing agreements finalized to address diseases
of the developing world.
pharmaceutical companies of Johnson & Johnson,
Our Chairman & CEO expanded its relationship with IPM through a new
Successes & Opportunities
steward a healthy environment; Actual: Our efforts to reach this goal began agreement to help protect women against sexual
Organizational Profile increase sustainability among with commitments made in 2011 as part of the transmission of HIV. This new agreement grants
IPM an exclusive, royalty-free license to develop
Our Citizenship &
Sustainability
our suppliers; develop engaged, London Declaration to end Neglected Tropical
Diseases (NTDs) by 2020, and include working darunavir, an antiretroviral (ARV) medicine used for
2020 Goals health-conscious and safe with partners, such as Drugs for Neglected HIV-1 treatment, as a vaginal or rectal microbicide
Completion of
Healthy Future 2015 Goals
employees; advance community Diseases initiative (DNDi), to develop a chewable for HIV prevention in selected developing countries
formulation of VERMOX (mebendazole), our
at an affordable cost. 2 A
Our Materiality Assessment wellness; enhance outcomes treatment for intestinal worms in children. In
measurement in philanthropy; 2013, the Company executed a data-sharing Goal: Ninety least-developed and middle-income
countries have our HIV therapies registered and
People and increase our transparency agreement with DNDi for preclinical research
available at special-effort pricing.
on flubendazole as a potential new treatment
Places and collaborations. Progress against parasites that cause lymphatic filariasis Actual: In more than 100 countries, our HIV
is reported here and in more (elephantiasis) and onchocerciasis (river blindness); medicines are made available either at special-
Practices a licensing agreement with PATH on TMC278LA
detail within our report. pre-exposure prophylaxis; and in-licensing
effort or reduced pricing, provided local regulatory
systems allow import prior to registration. The
agreements with Wellcome Trust and Ku Leuven in 90 least-developed or middle-income countries
the field of dengue. We bolstered our portfolio of identified in our Healthy Future 2015 goal are part
treatments against NTDs in 2015 when we added of an HIV Access Territory from which we measure
the early development program for dengue to our our progress. A
Global Public Health portfolio, aiming to develop
in partnership with key research institutions
innovations that protect against dengue for people
traveling to and living in endemic areas.
In 2014, Janssen Global Public Health
expanded its collaboration with the International 2. http://www.ipmglobal.org/publications/ipm-receives-
Partnership for Microbicides (IPM) to include worldwide-rights-hiv-prevention-medicine

A Included in the scope of ERM CVS assurance engagement. Please see page 96 for their findings and conclusions.

2015 Citizenship & Sustainability Report 10


10
Goal: Achieve World Health Organization (WHO)
was registered in the U.S. and EMEA, and five Engaged, Health-Conscious
generics licensing agreements were signed for our Employees
prequalification for all our products that address
HIV medicine, rilpivirine. This registration marked
diseases of the developing world. Goal: 90th percentile employee engagement
achievement of the goal. A
Actual: Since 2010, five formulations of our when compared to external benchmarks.
HIV antiretroviral medicines have achieved WHO Actual: In 2014, engagement levels for
prequalification: 75, 150 and 600 mg formulations
Stewarding a Healthy
Johnson&Johnson in total and for each of the
of PREZISTA (darunavir) and 100 and 25 mg
Environment
business segments exceeded the Mayflower
formulations of INTELENCE (etravirine). The Goal: 20 percent absolute reduction in facility Global Norm. However, in 2015 a Credo survey
WHO included SIRTURO (bedaquiline), our carbon dioxide emissions (by 2020). redesign program was initiated, and engagement
TB medicine, in its interim policy guidance on Actual: Realized a 9.8 percent absolute reduction was not evaluated.
treatment of multidrug-resistant tuberculosis vs. 2010 baseline. A
(MDR-TB) issued in June 2013. Goal: 90 percent of employees have access to
Contents In 2014, the WHO granted prequalification for Goal: 10 percent absolute reduction in water Culture of Health programs.
Our Credo QUINVAXEM in cPAD, a fully liquid pentavalent consumption at manufacturing and R&D locations. Actual: 93 percent have access to Culture of
Letter from
vaccine (DTwP-HepB-Hib) in an innovative,
Actual: 7.2 percent absolute reduction. Health programs. A
Our Chairman & CEO compact, prefilled, auto-disable (cPAD) injection
Successes & Opportunities system. After embarking on an adaptive new
Goal: 10 percent absolute reduction in total waste Goal: 80 percent of employees have completed a
Organizational Profile development project to make QUINVAXEM
disposed at manufacturing and R&D locations. health risk assessment and know their key health
Our Citizenship & available in a cPAD injection system (Becton
indicators.
Sustainability Dickinsons Uniject), Janssen Vaccines made the Actual: 2.9 percent absolute reduction. A

2020 Goals decision to stop the development of this injection Actual: 92 percent have completed a health risk
Completion of system. (See the Access section of this report for Goal: Increase on-site renewable and clean- assessment and know their key health indicators. A
Healthy Future 2015 Goals more information.) technology energy capacity to 50 megawatts.
Our Materiality Assessment Goal: 80 percent of measured employee popula-
Actual: 54 megawatts installed or in progress.3
Goal: Provide 200 million doses of VERMOX tion health risks are characterized as low risk.
(mebendazole), our treatment for intestinal worms, Actual: 73 percent of employees characterized
People to infected children in more than 30 countries.
Goal: 20 percent improvement in vehicle fleet
emissions efficiency. as low risk based on employee health results. A
Places Actual: In 2015, we provided more than 129
Actual: 20 percent improvement. A
million doses of VERMOX, our treatment for Goal: 15 percent improvement in employee safety
Practices intestinal worms, for distribution to affected vs. 2010 (Lost Workday Case rate target of 0.09).
Goal: Products and packaging evaluated for
children in 14 countries. Compared with 2014, Actual: Achieved 0.08 lost workday case rate, a
sustainability improvements, with 60 achieving
our donation decreased from 181 million doses, 27 percent improvement over 2010. A
Earthwards recognition.
primarily due to challenges stemming from
limited country capacity to fully utilize the amount Actual: 80 products have received Earthwards
Goal: 15 percent improvement in contractor safety
of committed medicines. Our donations had recognition. A
vs. 2010 (Lost Workday Case Rate target of 0.12).
consistently increased from 36 million doses in
2010, to 80 million in 2011, 116 million in 2012, Actual: Realized a lost workday case rate for
and 161 million in 2013, to 181 million in 2014. A contractors of 0.18, a 28.5 percent increase. A

Goal: Register a new triple-combination therapy Goal: 15 percent improvement in fleet safety
for HIV and finalize a generics licensing agreement. 3. Performance is lower than clean energy capacity reported vs. 2010 (Auto crashes per million miles [CPMM]
in 2014 report (55.7 MW) based on recalculations due to target of 4.7).
Actual: In 2011, a new triple-combination therapy divestitures.
Actual: Realized a CPMM rate of 6.01, a nine
A Included in the scope of ERM CVS assurance engagement. Please see page 96 for their findings and conclusions. percent increase over 2010. A

2015 Citizenship & Sustainability Report 11


11
Supplier Sustainability certificates. We continue to support on-the-ground Transparency and
projects to improve yields and farming standards Collaborations
Goal: All strategic suppliers have two or more
at small holders.
publicly reported sustainability goals. Goal: All major brand websites share product
Actual: Approximately 98 percent of strategic Advancing sustainability information.
suppliers have two or more publicly reported Community Wellness Actual: 100 percent of major brands share
sustainability goals. A product sustainability information on their
Goal: Advancing community wellness through
websites. A
health educationnumber of programs by
Goal: $1 billion in spend with diverse suppliers by
geography and disease/health education area
2011; five percent increase per year thereafter with Goal: Major stakeholder engagements and new
where the needs are greatest.
a 2015 target of $1.36 billion. collaborations reported publicly.
Actual: 26 new health education programs
Actual: Achieved $1.39 billion in spend. A Actual: As a global healthcare company, we
launched across 20 countries.
engage in hundreds of collaborations in any given
Contents Goal: All goods suppliers in high-risk countries year.
Our Credo
Goal: Report the number of people reached by
and any service providers with greater than
these initiatives.
Letter from $250,000 in spend with operations in a high-risk Goal: Johnson&Johnson website shares
Our Chairman & CEO Actual: Approximately 568,000 lives reached.
country confirm awareness of and conformance Company policy perspectives on major issues.
Successes & Opportunities with the human rights provisions of our policies.
Organizational Profile Actual: The Company shares policy perspectives
Actual: Using a regional approach, identified on major issues routinely on the website.
Our Citizenship &
approximately 1,200 goods suppliers in high-risk
Philanthropy Measurement 6
Sustainability
2020 Goals countries and services suppliers with greater Goal: Increase number of major philanthropic Goal: Economic and sustainability reporting
than $250,000 in annual spend with operations programs measuring health-related outcomes. enhanced online and provided for key markets.
Completion of
Healthy Future 2015 Goals in a high-risk country. Of these, greater than 80 Actual: 170 programs reported measuring long- Actual: Reporting on global environment, social,
Our Materiality Assessment percent have been determined to have confirmed term outputs and/or outcomes; 10 programs were governance and economic activities strengthened
awareness of and conformance with the human identified for projects to build measurement online and across regions.
rights provisions of our policies.4 A capacity.7 A
People
Goal: All critical employees receive human rights Goal: Increase percentage of major philanthropic
Places training.
4. Performance against this goal was originally tracked
programs measuring and reporting health-related by supplier category. In 2015, we modified to a more
comprehensive regional approach. For more details, please
Practices Actual: Greater than 1,300 procurement outcomes. see the Procurement and Supplier Management section of this
professionals (characterized as critical employees), Actual: 85 percent (170 of 201 programs in this report.
or 99.85 percent, have received training. 5 A category) reported measuring long-term outputs 5. In 2014, we erroneously reported progress against this goal
at 100 percent, but discovered after publication of the report that
and/or outcomes.7 A actual progress was just under 50 percent due to adjustments of
Goal: All palm oil and palm oil derivatives are classifications of employees.
sourced from certified sustainable sources. Goal: Increase percentage of mid-tier/ 6. For these metrics, major philanthropic programs include
Actual: Working on including Roundtable for intermediate programs measuring and reporting grants greater than $50,000, and mid-tier/intermediate
programs include grants of $50,000 or less. The indicator is
Sustainable Palm Oil-certified derivatives in our health-related outcomes.
based on response to the question on the grant application
supply chains where possible. Additionally, we Actual: 70 percent (132 of 189 programs in this asking whether grantees will be measuring long-term outputs
are understanding our supply chains through category) reported measuring long-term outputs
and/or outcomes. J&J does not fund the same partners every
year, making annual comparisons difficult; grants not submitted
transparency improvements with our suppliers and and/or outcomes. A through GIFTS Online (including some in regional portfolios) are
purchasing Independent Smallholder Greenpalm excluded.
7. Progress as stated is correct and cannot be measured
against the original goal on the basis of year-over-year increase,
A Included in the scope of ERM CVS assurance engagement. Please see page 96 for their findings and conclusions. as the overall pool of programs varies over time.

2015 Citizenship & Sustainability Report 12


12
Show People

Our Materiality 5
Show Places

Assessment E X T R E M E LY
HIGH Show Practices
Product Quality
and Safety
G4-1821, G4-23 Hide labels 1
Access to and
Affordability of
2
Health Care

3
Global Health

Ethical
In 2013, Johnson&Johnson conducted a Product Performance
VERY HIGH Pipeline
Citizenship & Sustainability materiality 8 assessment Financial Health/
4
Contents Economic Performance 7
to identify those topics of greatest interest to 4 6
Our Credo both Johnson&Johnson and our stakeholders; 5 Compliance

Letter from specifically, those reflecting our significant economic,


Our Chairman & CEO 10 R&D and Clinical Trials
environmental and social impacts, and those that could Product Ingredients/ 11
Successes & Opportunities Materials
substantively influence the assessments and decisions 9
Organizational Profile of stakeholders. The process involved several steps: Supply Chain 8 Innovation
Management
Our Citizenship & Staying Healthy/
Sustainability Initial list of issues: Developed from the aspects Wellness 13

2020 Goals identified by the Global Reporting Initiative (GRI), 17 Product Stewardship

Completion of issues identified by the Sustainability Accounting Intellectual Property


Healthy Future 2015 Goals Standards Board, a review of competitor reports and Sourcing of 12 Human Rights
Greenhouse Gas/Climate 16 Raw Materials
Our Materiality Assessment websites, topics identified through our customer call Philanthropy
18

centers, shareholder resolutions and questionnaires 3 Public-Private Partnerships Market Access & Presence
28
22 22
from socially responsible investors. HIGH Community Engagement
People & Partnership 35
29 21 Stakeholder
14 Transparency
26 Engagement
Expanded list of issues: Interviews were conducted Job Creation 36
Places with Johnson&Johnson staff from all regions,
Diversity
27 25
23
19 Water
Employee
Recruitment/
Product & Financial Labor Practices Development/
business units, levels and functions of the enterprise,
Importance to Johnson & Johnson +

Donations 39
Practices Biodiversity
Corporate
Governance 20
Environmental Retention
asking them to consider the Companys activities, Political 31 Responsibility
40 Contributions/ Compensation/
impacts and stakeholder expectations, and to Lobbying Remuneration
38
30 Strategic Leadership/
34 Sharing of Expertise
identify those issues of the greatest interest to
Energy
Johnson&Johnson and our stakeholders. A master Use 33
32 Waste
list of over 220 topics was generated. Air Emissions
2 37
Impact assessment: Each topic was evaluated for Data Protection 15
and Privacy
boundaries (where its impact occurred). Impacts were Volunteerism Workplace Health
determined both inside and outside the organization, & Safety
41
and by business unit, region and stakeholder group.

8. The use of materiality in this context is not related to


2 3 4 5
matters or facts that could be deemed material to a reasonable
investor as referred to under U.S. securities laws or similar Importance to External Stakeholders +
requirements of other jurisdictions.

2015 Citizenship & Sustainability Report 13


13
Consolidation of topics: The number of topics to
be assessed was consolidated, taking into account Extremely Product Quality and Safety Innovation
the number of times an issue was identified, along Includes Product Pipeline and R&D and
High Access to and Affordability of Clinical Trials
with other considerations. A final list of 41 topics was
Health Care
developed. P
 rocurement and Supplier Management
Global Health Formerly called Supply Chain Management

Ranking of topics: A group of diverse G


 overnance & Ethical Performance Human Rights
Johnson&Johnson staff, including many senior Combines Ethical Performance and
Corporate Governance P
 roduct Stewardship
decision makers, ranked the issues using a series of Includes Ingredients & Raw Materials/Sourcing
10 questions designed to explore both internal and Compliance of Raw Materials
external priorities. This allowed the consideration of Financial Health/Economic Performance Transparency
many views to be taken into account, including the
interests of stakeholders with whom we are not in
Contents constant or obvious dialogue.
Our Credo Very High E
 mployees S
 takeholder Engagement
Combines Workplace Health and Safety, Staying Combined with Community Engagement and
Letter from In 2014, the assessment was expanded to include Healthy/Wellness, Employee Recruitment/ Partnership
Our Chairman & CEO input from a larger group of external stakeholders. Development/Retention, and Diversity
G
 reenhouse Gas/Climate
Successes & Opportunities Over 200 geographically diverse customers, Intellectual Property Combined with Energy Use
Organizational Profile healthcare providers, universities, suppliers, NGOs on website
and investors were invited to provide input to the Labor Practices
Our Citizenship & Water
Sustainability process. Responses received were aggregated with Philanthropy
2020 Goals the external stakeholder responses received in 2013, Environmental Responsibility

Completion of and a revised ranking of the 41 material issues was M


 arket Access and Presence
Healthy Future 2015 Goals generated. The expanded results are shown in the on website
Our Materiality Assessment diagram at right. Boundaries for each material issue
are shown by the use of icons throughout the report.

People High P
 ublic-Private Partnerships D
 ata Protection and Privacy
In 2015, we grouped related issues under a common on website on website

Places heading, and moved others strictly to our website.


S
 trategic Leadership/Sharing of Expertise C
 ompensation & Remuneration
A consolidated list of topics is summarized at right, on website on website
Practices along with notations where information resides solely
B
 iodiversity P
 roduct and Financial Donations
on our website. There have been no significant on website on website
changes from previous reporting periods in the
Waste P
 olitical Contributions/Lobbying
scope, boundary or measurement methods applied on website
in this report. A
 ir Emissions
on website V
 olunteerism
on website
J
 ob Creation
on website

2015 Citizenship & Sustainability Report 14


14
Contents

People
Global Health
Access & Affordability
of Health Care
Innovation
Philanthropy

Places

Practices

People
Well help people be healthier,
by providing better access and care in
more places around the world.
Global Health

Contents At Johnson&Johnson, at Johnson&Johnson, this new organization will Our innovative partnerships, spanning
mobilize coalitions of global and local partners decades, have trained a new generation of health
we believe that health care is to achieve maximum impact. To work with these workers to provide critical prenatal and obstetric
People
Global Health
societys greatest challenge partners more effectively, we established an health care in resource-limited settings. We also
on-the-ground operations presence in South donate life-saving medicines and support the
Access & Affordability and that we are uniquely poised Africa. This site was chosen to officially launch development of technologies that improve access
of Health Care
Innovation
to tackle it. For 130 years, our new Johnson&Johnson Global Public Health to critical healthcare information to protect women
(GPH) strategy. and their children.
Philanthropy Johnson&Johnson has been The enterprise-wide ambition for our GPH Johnson&Johnson was among the first
committed to improving the strategy is reflected by the diversity of our GPH private-sector companies to answer the United
Places senior leadership, which includes representatives Nations (UN) Secretary Generals call to redouble
health of individuals, families from our Consumer, Pharmaceutical and Medical the effort toward achieving the Millennium
Practices and communities around Devices business segments; Corporate Affairs Development Goals (MDGs), specifically those
divisions (Communications, Corporate Equity and which impact maternal and child health. In
the world. Corporate Citizenship); Government Affairs and 2010, Johnson&Johnson pledged to support
Policy; and Finance and Human Resources groups. MDGs 4, 5 and 6 with a comprehensive five-year
In 2014, the Janssen Pharmaceutical Companies Our GPH strategy aims to deliver integrated commitment to reach as many as 120 million
of Johnson&Johnson launched Janssen Global evidence-based solutions to address complex women and children a year by 2015. We met and
Public Health (Janssen GPH), incorporating global health problems in three key focus areas: exceeded this goal in 2015 with efforts focused
innovative R&D, policies and access models to maternal, newborn and child health; HIV/AIDS; on five key areas. In each of these areas we
meet the worlds greatest public health challenges. and tuberculosis. We are also scoping other focus have developed strong, innovative partnerships
However, these complex challenges require areas, including neglected tropical diseases, that have the potential to foster the greatest
more than just pharmaceutical interventions. surgery/trauma, mental health, vision care and improvements in maternal and child health:
To address this, we launched a new, enterprise- game-changing vaccine technologies. Making childbirth safer;
wide global public health strategy and organization
Maternal, Newborn and Child Health  reating and preventing intestinal worms
T
to build on the success of the Janssen
in children;
organization and others. Rather than focusing
on individual interventions in isolation, this new Building on the legacy of our Corporate  sing technology to reach new and expectant
U
organization leverages the full breadth and depth Citizenship group, our goal is to help end mothers with vital health information;
of Johnson&Johnson to deliver comprehensive preventable maternal and child deaths and ensure
Eliminating mother-to-child transmission
health solutions for better health outcomes for every child thrives. We believe that the lives
of HIV;
families and communities. While designing these of millions of moms and babies can be saved
innovative health solutions is core to what we do through simple, affordable interventions.

2015 Citizenship & Sustainability Report 16


 iloting and scaling therapeutic innovations
P
through research and development to
treat HIV, TB and neglected tropical
diseases.

Many of these efforts continue as we consider


the UN Sustainable Development Goals and
have been built into our Global Public Health
organization and strategy. Find out more about our
commitment to maternal and child health in our
2015 Digital Year in Review.

HIV/AIDS
Contents
Our goal is to help ensure every child is born
People HIV-free, adolescent girls and young women have
Global Health the tools they need to stay HIV-free, and people
Access & Affordability living with HIV have access to the medicines they
of Health Care
need to lead healthy, productive lives.
Innovation
Despite significant progress, HIV/AIDS
Philanthropy continues to take lives and devastate communities,
especially the most vulnerable. To help create an Deworming
Places HIV/AIDS-free generation, we are investing in
research and development for new treatments
Practices and fostering partnerships to increase access
to medicines and quality care, while providing
educational tools to empower communities P R E T E R M - B I R T H P R E V E N T I O N Born On Time is a global public-private partnership that brings together
resources and expertise from Johnson & Johnson, Government Affairs of Canada, World Vision, Plan International
severely impacted by HIV.
Canada, and Save the Children in Bangladesh, Ethiopia and Malithree countries where the burden of newborn
As part of the Companys overall commitment deaths is high and governments have been committed to improving survival rates.
to HIV, in December 2015 we marked World AIDS
Day with four major new global commitments:
and in-kind contributions. We will provide expertise, Empowering women and girls in HIV
financial resources and in-country consumer prevention
Stemming the tide of HIV in adolescent girls
insights to support a suite of programs, and we Building on a decade-long partnership, Janssen
Janssen Pharmaceutica N.V., one of the Janssen launched the DREAMS Innovation Challenge to Sciences Ireland UC granted the not-for-profit
Pharmaceutical Companies of Johnson&Johnson, identify and develop new approaches. Janssen International Partnership for Microbicides (IPM)
is supporting the Presidents Emergency Plan joins other major partners, the Bill & Melinda Gates an exclusive, royalty-free license to develop
for AIDS Relief (PEPFAR) DREAMS partnership. Foundation, Girl Effect, Gilead Sciences and ViiV and commercialize in a number of developing
This ambitious collaboration seeks to reduce new Healthcare in its support. countries its HIV medicine darunavir as a potential
infections in adolescent girls and young women vaginal and rectal microbicide for HIV prevention
by 40 percent in 10 sub-Saharan Africa countries in women. The collaboration complements
by 2017. Seventy-four percent of new infections our existing license to IPM for dapivirine, an
among adolescents in sub-Saharan Africa are girls. investigational HIV medicine, for use as a potential
In joining this partnership, we committed up to vaginal microbicide, as part of our efforts around
$15 million over two years in combined funding the development and delivery of innovative tools

2015 Citizenship & Sustainability Report 17


17
for women and girls in developing countries to
protect themselves against sexual transmission of
HIV. This represents the first time a pharmaceutical
company has licensed a protease inhibitor to be
developed as a microbicide.
Increasing access to innovative fixed-dose
second-line therapy for the treatment and
prevention of HIV/AIDS
Janssen Sciences Ireland UC is collaborating
with the Clinton Health Access Initiative to
facilitate the development and delivery of a
fixed-dose combination of darunavir and ritonavir
Contents (DRV/r) for the treatment of HIV in resource-limited
settings. Unlike in developed markets, there is no
People approved fixed-dose combination of darunavir
Global Health and a booster (ritonavir or cobicistat) in resource-
limited settings, which is a key barrier to uptake
Access & Affordability
of Health Care and use of darunavir in these countries. This
Innovation collaboration represents a shared commitment to
improving access to important medical solutions PLEDGES HELP HIV+ CHILDREN The new Johnson & Johnson crowd-funding platform dedicated
Philanthropy
and will help support generics manufacturers to global public health, CARINGCROWD SM, inspired donors to make a difference in the health of
25 HIV+ children and their families in Zambia. In September and October 2015, 36 donors pledged
efforts to broaden access to these formulations. more than $6,500 to nonprofit organization Tiny Tim and Friends, who were then able to provide the
Places The collaboration supports the inclusion of DRV/r families with nutritional support and education.
as an element of second-line treatment in the
Practices World Health Organizations update to its global and digital technologies, demonstration projects These new initiatives build on the Companys long-
HIV/AIDS treatment guidelines, which will allow for and academies of independent local experts, the standing commitment to address HIV through
enhanced access to the treatment for more of the program seeks to generate regional evidence, a broad portfolio of transformational medicines
patients, families and communities in need. provide tailored education and training, and bring and combination therapies; history of novel
to scale impactful solutions against some of the programs and partnerships to increase access to
Enhancing detection, treatment and greatest public health challenges. HIV medicines and care; collaborative research
prevention of HIV and TB for patients on innovative tools and treatments; strategic
Connect for Life: In collaboration with the CARINGCROWD: In addition, J&J is galvanizing philanthropy partnerships that have resulted in
Infectious Diseases Institute, the Ugandan Ministry public support for HIV-related causes by donating significant gains in the elimination of mother-to-
funds through its Donate A Photo initiative and child transmission of HIV; and issue advocacy at
of Health and Johnson&Johnson Corporate
Charity Miles. In September 2015, we launched high-level forums and with leading stakeholders
Citizenship Trust, Janssen has launched the
CARINGCROWD a new crowd-funding in the fight against HIV. Recent studies of novel
Ugandan Academy for Health Innovation and
platform powered by Johnson&Johnson therapies researched and developed by the
Impact as a flagship of the new Connect for
fully dedicated to improving public health. Janssen Pharmaceutical Companies showed
Life program. Connect for Life aims to help
CARINGCROWD aims to connect individuals that long-acting, injectable formulations of HIV
patients manage their diseases, while also building
with nonprofit organizations working on projects are keeping the virus under control and offered
capacity in local healthcare professionals to
targeting critical public health challenges, including promise for a new prime-boost vaccine program
enhance detection, treatment and prevention of
HIV. As of December 2015, four projects were currently in clinical trials.
HIV and tuberculosis (TB), and improve maternal
successfully funded and more than $75,000 has Find out more about our efforts to combat
and child health outcomes. By deploying mobile
been pledged to projects on CARINGCROWD. HIV/AIDS in our 2015 Digital Year in Review.

2015 Citizenship & Sustainability Report 18


Tuberculosis Other Global Public Health Efforts Ebola
As the worlds most broadly based health
Our goal in TB is to eliminate deaths from In addition to our focus areas, we are working to care company, we play an important role in
extensively drug-resistant (XDR) and multidrug- deliver new treatments to fight neglected tropical protecting the lives of people around the globe
resistant (MDR) TB and to simplify treatment diseases, as well as game-changing vaccine through the development of new therapies and
and care. technologies that could help eradicate polio, vaccines against emerging threats.
SIRTURO (bedaquiline) was launched in 2013 Ebola and HIV. Throughout 2015, in response to the
to treat MDR-TB and is the first new TB therapy worlds deadliest Ebola outbreak in West Africa,
with a novel mechanism of action in more than 40 Neglected Tropical Diseases the Janssen Pharmaceutical Companies of
years. In 2015, we added the early development program Johnson&Johnson partnered with leading
One of the key barriers to successfully for dengue to our Global Public Health portfolio, global research institutions and NGOs to
treating MDR-TB is accurate and accessible aiming to develop in partnership with key research accelerate development and deployment of
diagnostics. In 2015, Janssen Pharmaceutica N.V. institutions innovations that protect against a prime-boost vaccine regimen, including
Contents announced it entered into a novel collaboration dengue both for people traveling to and living in conducting multiple Phase I and II studies in
with the nonprofit organization FIND to step up endemic areas. The early development program rapid succession across the U.S., Europe and
People the fight against the public health threat of TB for dengue bolsters our portfolio of treatments Africa; scaling production and capacity; and
Global Health and MDR-TB. The partnership draws on FINDs against NTDs. securing support from global, national and local
Access & Affordability innovative work in increasing access to affordable Our medicine against intestinal worms in authorities around vaccine development and
of Health Care
diagnostic solutions; the capabilities of Janssen children, VERMOX, is being used to combat uptake. By April, 2016, Janssen in partnership
Innovation parasites that cause physical and cognitive with Bavarian Nordic rapidly scaled up
Diagnosticsa global division specializing in
Philanthropy diagnostics; as well as Janssens experience in impairment. In addition to a donation program production of the vaccine regimen and now has
pharmaceuticals development and innovative as part of our Healthy Future 2015 goals, we are approximately 2 million regimens available, with
Places access models. The collaboration focuses working to develop a chewable tablet formulation the capacity to produce several million regimens
on providing increased access to molecular of this medicine to allow usage in younger children if needed.
Practices diagnostics tools for TB case detection and and for those without access to safe drinking While the devastating outbreak has since
MDR-TB diagnosis, and on ensuring accelerated water. Find out more about our VERMOX been contained, our team and partners
access to effective treatments. Read more donation program in the Access section of this continue to do what we can, as fast as we
about our Access efforts in the next section of this report. can, to prevent this threat to global public
report. While treating children with VERMOX is health from ever happening again.
important, we strive ultimately to break the
cycle of re-infection that continues to challenge Health Security
communities worldwide. Therefore, in 2015 we Following the Ebola outbreak, governments,
established a collaboration with the Government multilateral institutions, civil society groups
of Canada and Micronutrient Initiative to build and private sector companies have voiced
a holistic approach to intestinal worm care in commitments to building a more robust
Bangladesh, combining school-based, mass-drug global health infrastructure. Senior leaders
administration with health, hygiene, sanitation and at Johnson&Johnson have championed
nutrition education and interventions to prevent this cause, drawing attention to the need
infection. for cross-sector collaboration to build
resilience in the face of emerging health
threats. We have played a key role in defining
the private sectors role in developing a
coordinating mechanism to address public

2015 Citizenship & Sustainability Report 19


health emergencies that threaten global health industry-wide call for new collective action,
security, leading the development of the Global AMR reinforces the Companys long-standing
Health Security Agenda (GHSA) Private Sector commitment to innovation in antimicrobial R&D.
Roundtable (PSRT), in partnership with the GE
Foundation. Aiming to promote collaboration Humanitarian Crises
among industry to help prevent, detect and We also support global responses to humanitarian
We made good progress
on our
respond to emerging health threats, the crises and emerging threats, and explore new
Roundtable is working to elevate global health ways to apply our expertise in new areas such as Healthy Future 2015
security as an international priority, advancing general surgery and trauma, mental health and goal to advance global health
dialogue with government agencies in the U.S. vision care. In November 2015, we expanded our
and other countries. long-term partnership with Save the Children by
providing an additional $1.75 million over the next Finalized research partnership
Zika two years to directly address the ongoing refugee and licensing agreements to address
Contents The Zika virus pandemic is still evolving, as crisis in Syria. The first element of this program diseases of the developing world.
experts continue to learn about its impact. In focuses on meeting the short-term needs of the Exceeded
People 2015, Johnson&Johnson began evaluating millions of families affected by this crisis, from food
Global Health whether any of our available technologies could be to hygiene products. Funding will also be directed In more than 100 countries, our HIV
Access & Affordability directed to address the infection. It is premature toward resilience programs specifically designed medicines are made available either
of Health Care at special-effort or reduced pricing,
to say how long this might take, or even speculate to address the trauma these communities face.
Innovation on the outcome, but we are fully committed to provided local regulatory systems allow
Philanthropy doing whats best to help nurture happy, healthy Details about our efforts to advance global health import prior to registration.
babies worldwide. We are also leveraging our are included in our 2015 Year in Review and in a Exceeded
Places consumer business, which currently distributes new section devoted to Global Public Health on
a safe and effective mosquito repellent in Brazil. JNJ.com.
Achieved WHO prequalification for
Practices In addition to expanding the distribution of this
several of our products that address
product in the country, we are assessing the need
diseases of the developing world.
to expand distribution to other regions afflicted by
the outbreak. Met

Antimicrobial Resistance Provided 129 million doses of


Now more than ever, public health must be VERMOX (mebendazole), our treatment
protected by safeguarding our current antibiotics for intestinal worms, to infected children
and developing new antibiotics or vaccines. in 14 countries. (Target: 200 million doses.)
Industry and governments can work together Partial
to support sustained innovation to address the
growing problem of antimicrobial resistance by Registered a new triple-combination
which bacteria and microbes become resistant therapy for HIV and finalized five
to regularly used drugs, making common yet life- generics licensing agreements (for our
threatening infections difficult or even impossible HIV medicine, rilpivirine).
to treat. Johnson&Johnson has joined more
than 80 companies and organizations in signing
Exceeded
the Declaration on Combating Antimicrobial
Resistance (AMR), an industry-wide call to action
announced at the World Economic Forum in
Davos, Switzerland. By participating in this first

2015 Citizenship & Sustainability Report 20


Access & Affordability of Health Care

Contents As a global health care Our innovation, commitment and ongoing work Intellectual Property Policy Expansion
are helping to create a world where people across As part of efforts to help meet the needs
company, Johnson&Johnson all economic and social circumstances have of children and adolescents living with HIV,
People
Global Health
has an important responsibility access to the treatments and care they need to Janssen is working to create one of the broadest
lead healthy lives. Our access programs include geographic territories for an access effort for
Access & Affordability to do all it can to address strategic partnerships and collaborations and pediatric HIV medicines to date. In 2015,
of Health Care
Innovation
unmet medical needs. This licensing agreements to help register, manufacture Janssen furthered its commitment to improve
and distribute our medicines, as well as donation the health of children living with HIV through an
Philanthropy responsibility includes the programs and other strategies to reach vulnerable expanded policy aimed at enhancing access to
need to make our medicines, populations. We promote capacity building through our HIV medicine darunavir, building upon a 2012
Places our programs to ensure that donated product policy not to enforce the patents on darunavir in
vaccines and diagnostics can reach people in need and also look for ways select low- and middle-income countries.
Practices accessible to patients living in to shape the future of clinical trials to better serve This expanded policy enables the development
patient populations, especially children. of and access to new pediatric products of
resource-limited settings. darunavir in 128 low- and middle-income
Global HIV Access Effort countries, home to 99.8 percent of children and
We are committed to ensuring broad access adolescents living with HIV worldwide today,
to our HIV therapies for those who need them provided the generic versions of darunavir are
and continually work to advance registration high quality, medically acceptable, and only used
and special-effort pricing where there is a need in the indicated countries.
and the possibility for safe, appropriate use. A These renewed efforts are an outcome of
comprehensive, multi-country registration effort engagement between Janssen and the Medicines
ensures availability of our branded HIV medicines Patent Pool (MPP), directly supporting the recently
where there is a public health need, such as launched Pediatric HIV Treatment Initiative (PHTI).
in sub-Saharan Africa, where we target 20+ PHTI is a partnership between the MPP, UNITAID,
countries. These countries make up part of the the Drugs for Neglected Diseases initiative
90 least-developed or middle-income countries (DNDi) and the Clinton Health Access Initiative
identified in our Healthy Future 2015 goal, which, (CHAI) dedicated to speeding the development
in turn, are part of an HIV Access Territory of more of high-priority pediatric co-formulations of HIV
than 100 countries where our HIV medicines are medicines and addressing other potential barriers
made available either at special-effort or reduced to treatment access for children living with HIV.
pricing, provided local regulatory systems allow Janssen will collaborate with PHTI partners to
import prior to registration. develop critical new formulations of pediatric HIV

2015 Citizenship & Sustainability Report 21


medicines to help safeguard the lives of children
and adolescents living with HIV.

New Horizons Advancing Pediatric HIV


Care Collaborative
The New Horizons Advancing Pediatric HIV
Care Collaborative has quickly become a
fundamental component of our Companys
ongoing commitment to improving the care of
children around the world and in our fight against
HIV. Since its launch in 2014, this first-of-its-
kind program has expanded beyond donations
of medicines to emphasize health systems
Contents strengthening and a holistic approach to care
for children and adolescents living with HIV,
People including emotional and psychosocial support.
Global Health From training and tools to build health worker
Access & Affordability capacity to data collection and publication to
of Health Care share learnings, we are working to address
Innovation individual patient needs and foster holistic public
Philanthropy health approaches to care.
In 2015, the first New Horizons patients in
Kenya, Swaziland and Zambia received donated
Places
HIV medicines from Janssen. Additionally,
Practices independent experts including representatives
from partner organizations selected Lesotho
the country with the second highest prevalence Efforts by Johnson & Johnson to address TB are part of an overall
T U B E R C U L O S I S PAT I E N T N E E D S
of HIV globallyfrom applicants to the second Global Public Health commitment to measurably improve the lives of individuals, families and communities.
Expression of Interest to participate in New This includes working to help eliminate MDR-TB (multidrug-resistant) and XDR-TB (extensively drug
Horizons. Also in 2015, efforts focused on building resistant), as well as simplifying treatment regimens for patients worldwide.
health care worker capacity with Resistance
Made Easy workshops in Zambia, Kenya, South Global TB Access Framework worth of its MDR-TB medicine, totaling 30,000
Africa and Swaziland. These were in addition courses, for use in more than 100 low- and
to the second annual New Horizons Technical Janssen has a long legacy of working to improve middle-income Global Fund-eligible countries for
Support Workshop in Johannesburg, highlighting access to and appropriate use of medicines for the treatment of MDR-TB. Janssen and the U.S.
challenges and differences between countries diseases of great unmet need, including HIV/AIDS, Agency for International Development (USAID)
while generating enthusiasm for collaboration TB and other diseases impacting the developing are working with national TB programs and
and information sharing between countries. world and emerging markets. In 2015 we partners to provide sustainable access and ensure
In 2016, New Horizons will increase its focus continued to leverage the power of partnerships to appropriate use of SIRTURO (bedaquiline).
on adolescents living with HIV that need or increase the potential impact of our efforts, with a As part of these efforts, Janssen has entered
are receiving third-line treatment; enhanced particular emphasis on designing and deploying a into a new Memorandum of Understanding
psychosocial support for adolescent HIV patients global TB access framework. (MOU) with USAID that will widen the scope
especially when facing the unique challenges of their engagement in the fight against
when transitioning from pediatric to adult HIV USAIDBedaquiline Donation Program MDR-TB. With this new MOU, Janssen has
health care systems. Janssen is contributing an estimated $30 million committed to expanding patient access to novel

2015 Citizenship & Sustainability Report 22


MDR-TB therapies, expanding upon the current
engagements and providing incremental funding
to program partners valued at $1520 million over
the next three years.

Stop TB Partnership
Janssen is working with the procurement agent
for the Stop TB Partnerships Global Drug Facility,
to facilitate access to SIRTURO for the treatment
of pulmonary MDR-TB in adults in more than 130
low- and middle-income countries outside the
United States. The goal of this partnership is to
facilitate access, while ensuring appropriate use
Contents of medicines.

People VERMOX Donation Program


Global Health
Access & Affordability In 2015, we provided more than 129 million doses
of Health Care
of VERMOX, our treatment for intestinal worms,
Innovation for distribution to affected children in 14 countries.
Philanthropy Our donation decreased from 181 million doses in
2014 primarily due to challenges stemming from
Places limited country capacity to fully utilize the amount
of committed medicines. Our donations had
C H I L D R E N F R E E F R O M W O R M S At Ventanilla School, just outside Lima, Peru, Johnson & Johnson
Practices consistently increased from 2010 (36 million doses donates VERMOX and teams up with INMED Partnerships for Children to roll out the deworming treatment as
that year) to 2014 and we are working to bring the part of a nationwide soil-transmitted helminthes prevention campaign. INMED also mobilizes public and private
donation level up again in 2016. In addition to our sector alliances to support development of a formal water, sanitation and hygiene component.
donation efforts, Janssen is currently developing
a fast-disintegrating chewable formulation of prequalification: 75, 150 and 600 mg formulations for young people living with HIV. The first approval
VERMOX. This will further improve efficiency when of PREZISTA (darunavir) and 100 and 25 mg for INTELENCE 25mg through the Procedure
administered to younger children and those without formulations of INTELENCE (etravirine). was granted in Namibia in June, within 90 days of
access to a safe supply of drinking water. Looking We are also working with the WHO on its filing.
ahead to the next five-year goal period, we will Collaborative Registration Procedure pilot, around In 2014, the WHO granted prequalification for
again consider our role in providing treatment for encouraging national regulatory authorities in QUINVAXEM in cPAD, a fully liquid pentavalent
children at risk for intestinal worms with the aim sub-Saharan Africa to fast-track registration of vaccine with a demonstrated immunogenicity
to reduce morbidity caused by these infections medicines approved by Stringent Regulatory and safety profile, in an innovative, compact,
through integrated treatment and prevention. Authorities, such as the U.S. Food and Drug prefilled, auto-disable (cPAD) injection system.
Administration. Prior to the launch of the pilot After embarking on an adaptive new development
WHO Prequalification study, it could take from six months to more than project to make QUINVAXEM a fully liquid
five years to receive approval for a new medicine pentavalent vaccine (DTwP-HepB-Hib) available
The World Health Organization (WHO) included in a sub-Saharan African country. The 25mg in a compact prefilled autodisable (cPAD)
SIRTURO (bedaquiline) in its interim policy pediatric formulation of INTELENCE was the injection system (Becton Dickinsons Uniject),
guidance on treatment of MDR-TB issued in June first drug selected by WHO for the pilot, based Janssen Vaccines made the decision to stop
2013. Five formulations of our HIV antiretroviral on its alignment with WHO and UN global health the development of this injection system. We
medicines have already achieved WHO priorities to enhance access to essential therapies are disappointed about this decision; however,

2015 Citizenship & Sustainability Report 23


it follows a thorough investigation into difficulties Access to Investigational Medicines The products from our pipeline most relevant
encountered with our production line during to ATMI include fixed-dose combinations and
secondary processing operations of the injection In keeping with the Companys long-standing pediatric formulations of medicines for HIV/AIDS,
system. Our investigation into the challenges with commitment to the highest standards of ethical MDR-TB and hepatitis C.
the commercial production of the cPAD injection decision-making that serves the needs of Feedback received from ATMI regarding
system showed that significant efforts would be patients, in 2015 Janssen forged a first-of-its-kind opportunities for improving access to medicines
needed to solve the technical issues that had partnership with the Division of Medical Ethics at included extending our engagement in licensing,
been identified. These efforts would also require the NYU School of Medicine to further ensure that developing access strategies for relevant
a substantial investment of resources and time. the evaluation of compassionate use requests for investigational products, and including access-
We would like to emphasize that the problems investigational medicines are treated in the most oriented terms systematically in product
are not related to the quality of the vaccine or fair and ethical manner. development partnerships. We continue to
the injection system, but concern secondary Compassionate use is a pathway for patients consider this feedback in our strategic discussions
processing issues. Together with GlaxoSmithKline, to gain access to investigational drugs, biologics about access moving forward.
Contents we continue to provide QUINVAXEM in the and medical devices not yet approved by the
vial presentations for routine immunization and FDA. By ensuring compassionate use requests for Prescription Assistance
People vaccination campaigns for five major childhood our investigational medicines are evaluated by a
Global Health diseases; tetanus, diphtheria, whooping cough, well-informed, external committee, we can make Over the past 12 months, the Johnson&Johnson
Access & Affordability Haemophilus influenza, and hepatitis B. While the most responsible decision for each patient. Patient Assistance Foundation, Inc. (JJPAF),
of Health Care
we are disappointed to have to take this action, As part of this collaboration, the NYU School of a nonprofit that assists patients without
Innovation Janssen Vaccines and GlaxoSmithKline remain adequate financial resources and prescription
Medicine will establish the Compassionate-Use
Philanthropy committed to advancing global health by Advisory Committee (CompAC), an external group coverage in obtaining free products donated
addressing the worlds unmet medical needs of 10 internationally recognized medical experts, by Johnson&Johnson operating companies,
Places through meaningful innovation. bioethicists and patient representatives to pilot provided medicines to more than 97,000 patients
the new approach. Commencing with one of in the U.S.
Practices Pricing Janssens investigational medicines, the CompAC The JJPAF website helps users find programs
will make recommendations regarding individual that provide assistance with medication costs.
We are deeply committed to providing access patient requests from anywhere in the world. Johnson&Johnson is a member of the
to our medicines and making our medicines If successful, the program will become a Partnership for Prescription Assistance, a broad
affordable to those in need. For the period model that will be applicable more broadly across private-sector effort funded by the pharmaceutical
20052015, in the U.S., the weighted average Johnson&Johnson. industry, which offers a single point of access
compound annual growth rate of the Companys to 475 public and private patient-assistance
net price increases for health care products Access to Medicines Index Performance programs.
(prescription and over-the-counter drugs, Our Company is also one of the founding
hospital and professional products) was below In 2015 and early 2016, Johnson&Johnson members of Together Rx Access, which since
the U.S. Consumer Price Index (CPI). prepared a response for the 2016 Access to 2005 has helped more than 2.5 million Americans,
We engage strategic, innovative and equitable Medicine Index (ATMI) survey, covering access- including approximately 400,000 children who
pricing strategies for a variety of diseases, suited oriented activities across our entire Family of have no prescription drug coverage and are not
to regional and individual market needs around Companies from June 2014 to May 2016. Results eligible for Medicare, access prescription
the world. are slated for release in late 2016. drug savings.
Information about specific Pricing Strategies Results of the 2014 Access to Medicines Index
and Programs is provided on our Citizenship & (ATMI) saw Johnson&Johnson ranked No. 3
Sustainability website. among 20 global companies. It was noted by ATMI
that: Of all companies, Johnson&Johnson is
adapting the most products for pediatric use that
target diseases within the scope of the Index.

2015 Citizenship & Sustainability Report 24


Innovation

Contents Innovation is critical to focused investment in R&D, a holistic approach


to evolving global health care markets and bold
an organization which was very much internally
focused.

People the success and future of future-facing strategies. Our broad-based health In 2009, the organizational model was changed
care focus fuels our ability to invest and create by implementing a new R&D strategy that formed
Global Health Johnson&Johnson. value through opportunities across a broad one team under the name Janssen. Janssen
Access & Affordability spectrum. It enables us to offer custom and built on new science, leveraging breakthrough
of Health Care It is critical to the entire comprehensive solutions to our partners and to innovation, generated both internally and externally;
Innovation
Philanthropy healthcare industry lead in innovation.
In 2015, we invested $9 billion in R&D. We
focused on medical need and differentiation; and
created five end-to-end therapeutic area teams and
and central to the success have access to the industrys leading science,
which when applied against our consumer
10 focus disease areas.
By sourcing innovation wherever the best
Places
and well-being of society insights, our disciplined research and investment, science came from, the Janssen portfolio was
Practices and our portfolio management enables us to build transformed. Operations teams were set up
as a whole. an industry-leading pipeline across our enterprise. focusing on excellence in global execution, speed,
quality, cost and efficiency, and delivered 16 new
Innovation Strategy drugs in six years (20092015).
For 130 years, Johnson&Johnson has been In 2015, Janssen led the branded
driving breakthrough innovation in health care Our strategy focusing on delivering pharmaceutical industry in productivity,
from revolutionizing wound care in the 1880s transformational innovation has created a FDA approvals and breakthrough therapy
to developing cures, vaccines and treatments cycle of success. It positions our Company for designations. In November 2015, just four months
for some of todays most pressing diseases in continued growth in the future. Over the past after submission of clinical findings, Janssen
the world. We are acutely aware of the need seven years, we have transformed the lives received FDA approval for one breakthrough
to evaluate our business against the changing of many patients worldwide and significantly therapy, DARZALEX (daratumumab), the first
healthcare environment and to challenge ourselves transformed our pharmaceutical business. human monoclonal antibody to be approved
based on the results we deliver. Up to 2009, the Pharmaceutical segment anywhere in the world for patients with multiple
We believe the most important contribution we was decentralized and grown primarily through myeloma. (Read more about DARZALEX in our
can make to the dynamic challenges we are facing the acquisition of multiple R&D companies. 2015 Digital Year in Review.)
is innovationinnovation in products, services, From 2006 to 2009, there were six separate Janssen R&D is one of the strongest
solutions and in everything we do. We have to put R&D organizations, seven therapeutic areas, pharmaceutical research and development
the patient in the center and reward innovations a wide footprint, and multiple pre-clinical and organizations in the world. With the combined
that drive better outcomes and long-term value. clinical organizations, regulatory and medical strength of its in-market portfolio, deep
The promise of innovation in health care is safety organizations, as well as duplication of late-stage pipeline and robust early-stage
great, but it comes with the need for forward- platforms and technologies across the world, in pipeline, Janssen will continue delivering above

2015 Citizenship & Sustainability Report 25


We access early innovation through our J&J

Accessing
industry growth and advances in human health
Innovation Centers in London, California,
through 2019.
Boston and Asia/Pacific. To date, the
Janssens remarkable and sustained
turnaround since the launch of our innovation
strategy provides best practices that we are
Innovation Innovation Centers have explored more than
3,800 opportunities and have helped to
establish over 200 collaborations in the past
applying across our entire business. As the most Sourcing innovation begins two years.
broadly based healthcare company in the world,
Johnson&Johnson has strong internal capability,
with a deep understanding Through our incubators, JLABS, we enable
technology platforms and key insights in each of the innovation landscape. entrepreneurs to advance their research with a
of our business segments. These strengths no-strings-attached approach. We opened our
Our experts define an sixth JLABS facility in Toronto in 2015, JLINX
are leveraged across the entire organization.
Deep, broad internal expertise and platforms are innovation strategy, in Belgium in early 2016, and currently have
more than 80 companies in residence across
Contents
complemented with the best external science and conduct a holistic scan of
technology, which we access through our unique all JLABS.
innovation model. the innovation landscape, Through Johnson&Johnson Development
People As our Consumer business continues its return and prioritize all accessible Corporation, the first corporate venture fund
Global Health to benchmark performance, its portfolio is focused
Access & Affordability in critical geographies and leverages iconic mega-
opportunities, internal or in the life science industry, with more than
30 years of experience, we make strategic
of Health Care
brands to address key consumer need states external, to select the best investment in life science and technology
Innovation across six categories: skin care, over-the-counter
Philanthropy
asset. in our areas of interest and where we have
(OTC) medicines, oral care, wound care, womens insights and capabilities.
health and baby.
In late stage, we access innovation by
Places Our Medical Devices segment also continues
traditional licensing, partnerships and
to fully leverage the Johnson&Johnson innovation
acquisition.
Practices model. Medical Devices saw success in 2015
from the launch of 20 new products and notably
expanded its extremity portfolio as well as added
new capabilities in sports medicine visualization
through acquisitions. In the last quarter of 2015,
Medical Devices led formation of a joint venture all our operating companies continuously refines to create product platforms and systems that
with Google, Verb Surgical Inc. (on page 27); our external and internal innovation model. By cross categories and establish new sources
acquired Coherex Medical, Inc.; partnered with the expanding this model across all three business of innovation through convergent combination
Fogarty Institute to back next-generation device segments of Johnson&Johnson, our goal is products. We are excited about the promise of
innovation; and entered into the first-of-its-kind to continuously work to be the most innovative convergent technologies in categories like lung
value creation agreement with Ramsay Health company in the world on behalf of our patients cancer, vision care, biosurgery, robotics, obesity
Care. and consumers through our internal R&D and diabetes.
As part of the restructuring we announced in programs and external collaborations.  e are establishing a lung cancer center in
W
January 2016, we are also undertaking actions
China to look at the disease from multiple
to further strengthen our go-to-market model, Broadly Based Advantage
perspectives and with multiple solutions,
accelerate the pace of innovation, prioritize
from prevention to diagnosis and cure. By
key platforms and geographies, and streamline In addition to collaborating with external combining our surgical oncology capabilities
operations while maintaining high quality innovators, Johnson&Johnson is uniquely from our global surgery business with Janssen
standards. positioned to bring forward integrated healthcare Diagnostics and Janssen Therapeutics and
Johnson&Johnson Innovation Research & solutions from cross-segment collaboration. the new insights in disease prevention, we
Development and Commercial leadership across Our broad base enables Johnson&Johnson

2015 Citizenship & Sustainability Report 26


are taking an integrated approach to tackle
lung cancer in China, which is anticipated to
account for almost half of the deaths from lung
cancer in the world.
 e have an ongoing collaboration to potentially
W
treat age-related macular degeneration
through cell therapy, bringing together novel
pharmaceutical and vision care technology.
In this approach, expertise from our biologics
Center of Excellence is combined with expertise
in noninvasive surgical technology from our
Ethicon, Inc. business to use a tiny catheter
Contents to deliver cell therapy to the retina. This
technology is currently in Phase 2, proof-of-
concept studies, with potential to restore vision
People
in the elderly.
Global Health
Access & Affordability EVARREST Fibrin Sealant Patch is a
of Health Care convergent technology that has the potential
Innovation to drive a paradigm shift in the treatment
Philanthropy of problematic bleeding during surgery. For
example, clinical studies demonstrate that
EVARREST is 98 percent effective in stopping
Places F I R S T I N T E R N A T I O N A L J L A B S As the first JLABS to open outside the United States, JLABS @ Toronto
bleeding and maintaining hemostasis compared joins a network of life science facilities that are based throughout the United States in San Diego (flagship),
to the current standard of care of 53 percent. San Francisco, South San Francisco, Boston and Houston. These facilities are home to over 100 early-
Practices
This is an example where we leveraged our stage companies advancing bio/pharmaceutical, medical device, consumer and digital health programs.
pharmaceutical know-how in biologics with our JLABS @ Toronto will be located at MaRS Discovery District.
deep knowledge of polymers to help develop
Technology and Innovation intercept and prevent diseases as well as new
a solution for surgery. In 2015, the U.S. Food
therapeutics.
and Drug Administration approved an additional
The advanced and rapidly evolving technologies
indication for EVARREST as an adjunct to A collaboration between Johnson&Johnson
of today also present opportunities to leverage the
hemostasis for control of bleeding during adult Health and Wellness Solutions, DePuy Synthes
breadth and capabilities of Johnson&Johnson
liver surgery. and IBM Watson Health announced in April
to bring forward innovative medical solutions that
2015 focuses on innovating novel ways to
Because of its many advantages, our broad base extend and improve peoples lives. Several recent
provide one-on-one virtual health coaching
ultimately helps Johnson&Johnson deliver strong, initiatives demonstrate the promise of technology
and other personalized digital interactions
consistent and sustainable financial performance. and transformative innovation to advance
for consumers and patients. Digital health
And most importantly, it allows us to create better human health.
technology solutions could leverage wearable
products, more valuable services and improve The Janssen Human Microbiome Institute devices, smartphones and artificial intelligence
outcomes for patients, consumers and their (JHMI) was launched in February 2015 with the to connect physicians, hospitals, payers and
families. goal of studying and harnessing the potential patients to deliver a seamless healthcare
power of the microbiome, the collection experience.
of bacteria and other microorganisms that In December 2015, Johnson&Johnson
naturally reside within each human body. The
announced the formation of Verb Surgical Inc.,
hope is that the microbiome may hold clues to

2015 Citizenship & Sustainability Report 27


an independent surgical solutions company,
in collaboration with Verily Life Sciences
LLC (formerly Google Life Sciences), which
aims to develop a comprehensive surgical
solutions platform that will incorporate leading-
edge robotic capabilities and best-in-class
medical device technology for operating room
professionals. This new company was formed
in connection with the strategic collaboration
between Ethicon, a Johnson&Johnson
medical devices company, and Google Life
Sciences, which was announced in March
2015. Ethicon, which has deep expertise
Contents in minimally invasive surgery and advanced
instrumentation, is developing surgical
People instruments for Verb Surgicals new robotics-
Global Health assisted platform.
Access & Affordability
of Health Care Building on the success of JLABS in
Innovation
sourcing external innovations from emerging
pharmaceutical and medical device companies,
Philanthropy
Johnson&Johnson Health and Wellness
Solutions, Inc. (JJHWS) announced a
Places partnership with technology accelerator Plug
and Play Tech Center to create a new Health
Melinda Richter, Head,
Practices and Wellness Technology Accelerator aimed at Johnson & Johnson Innovation,
supporting early-stage companies developing JLABS, was recongnized by
direct-to-consumer solutions that enhance
Fierce Biotech as a Top Women
wellness. Companies selected to participate
in the accelerator will participate in a rigorous in Biopharma. Over the past few
three-month program that includes coaching years, she successfully led
and mentorship for their founders, and that the growth of JLABS from the
could lead to funding for the most promising
ideas.
flagship facility in San Diego to new
outposts in San Francisco, Boston,
Johnson&Johnson remains focused on creating
Houston and Toronto. In addition,
value through innovation. Our innovation strategy
is to identify the best science around the world to Ms. Richter is a strong champion
advance therapies and products for patients and for women within the biotech
consumers. We are delivering value to people, community.
society and to our business by bringing forward
innovative medical solutions that extend and
improve peoples lives.

2015 Citizenship & Sustainability Report 28


Philanthropy

Contents At Johnson&Johnson,
Our Credo responsibility
People
Global Health
inspires us to advance the
Access & Affordability health of communities in
of Health Care
Innovation
which we live and work, and
Philanthropy the world community as well.
This unwavering commitment
Places
to making the world a
Practices healthier place is at the heart
of our giving.
C O N N E C T I N G M O R E M O M S V I A M O B I L E Access to basic health education on preventing diseases,

We fulfill our mission by developing enduring preparing for birth, and understanding the complications that could occur during pregnancy and infancy
periods is vital to preventing the deaths of nearly 150 mothers and thousands of children each day in India.
partnerships that deliver community-based Through a program called mMitra, mothers are sent voice calls twice a week that provide preventive care
solutions to health challenges. We focus in three information directly to their mobile phones.
strategic areas: saving and improving the lives of
women and children, preventing disease among Johnson&Johnson companies made provide emergency disaster relief.
the most vulnerable, and strengthening the $877 million in non-cash contributions (product In 2010, Johnson & Johnson was the first
healthcare workforce. Together with our partners, donations are reported at fair market value, private sector company to make a commitment
we make life-changing, long-term differences which is consistent with the reporting methods of to the United Nations Every Woman, Every Child
in human health, helping families to survive and nonprofit organizations). initiative, which focused on the health-related
thrive. Of these non-cash contributions, the Millennium Development Goals (MDGs 4, 5, & 6).
Overall, in 2015 Johnson&Johnson Company donated $635.5 million of selected We committed to reach 120 million women and
contributed $1 billion in cash and products to prescription products to patients without adequate children annually by 2015, focusing on five areas
organizations in the U.S. and around the world. financial resources in the U.S. through the where our role as a global healthcare company
This included $163 million in cash, with more than Johnson&Johnson Patient Assistance Foundation. supported strong, innovative partnerships and
$15 million allocated through our U.S. Matching The balance of non-cash contributions went to programs: making childbirth safer; treating and
Gifts program. Johnson&Johnson double- private voluntary organizations that assist medically preventing intestinal worms in children; using mobile
matched employee contributions in 2015. underserved people in developing countries and phones to share vital health information to new

2015 Citizenship & Sustainability Report 29


Health of Women and Children
Strengthening
In 2010, Johnson health systems,
& Johnson pledged training
to supporthealth care workers
Millennium Development and expecting mothers; eliminating mother-to-child
and preventing disease among the most vulnerable
Goals (MDG) 4, 5 and 6 with a comprehensive, five-year commitment to HIV transmission; and research and development
to treat HIV, tuberculosis and neglected tropical
reach as many as 120 million women and children a year by 2015. diseases. Through this comprehensive, multi-
This pledge reflected a shared vision of a world in which women are healthy stakeholder effort, we met our goal in 2014, one
In 2010, Johnson & Johnson pledged to support Millennium Development Goals (MDG) 4, 5 and 6
andfive-year
with a comprehensive, children live totoreach
commitment their
reach as manyfull potential.
as 120 million women and children
year early. By the end of 2015, our commitment
a year by 2015. This pledge reflects a shared vision of a world in which women are healthy and had reached more than 400 million women and
children live to reach their full potential. children through programs in 84 countries, and had
trained more than 350,000 healthcare providers,

Our Commitment to Improving the


Our Commitments
exceeding our stated commitments.

Health of Women and Children


As a global health care company, our commitment focuses on five areas where we Cultivating Partnerships &
Contents
Contents have developed strong, innovative partnerships and have the potential to foster the greatest
Measuring Impact
improvements in maternal and child health:
People The work we do could not exist without
Global Health partnerships. With more than 400 partnerships
Access & Affordability in our portfolio, we have been able to effectively
of Health Care
impact the lives of people throughout the world.
Innovation The Companys corporate giving aims to
Philanthropy improve the health of populations around the
world through strong relationships with nonprofit
Places MAKING CHILDBIRTH partners, putting them at the center when it
SAFER FOR MOTHERS comes to program design, implementation
AND BABIES
Practices and evaluation. As part of our enterprises
Healthy Future 2015 goals, Johnson&Johnson
TREATING AND
PREVENTING INTESTINAL committed to raising the standard of measurement
WORMS IN CHILDREN and evaluation within the philanthropy programs
we support by increasing the capacity of our
ELIMINATING partners to measure program outcomes. A set
MOTHERTOCHILD of measures we have used to approximate our
TRANSMISSION OF HIV partners capacity for measurement and reporting
is the number and percentage of philanthropic
programs intending to measure long-term
USING MOBILE PHONES outputs and/or outcomes, for both major grants
TO REACH MOTHERS (those over $50,000) and mid-tier/intermediate
WITH VITAL HEALTH
INFORMATION
grants. This question is asked on our common
PILOTING RESEARCH AND grant application. For 2015, among those who
DEVELOPMENT INNOVATIONS
TO TREAT HIV, TB AND NTDs responded, the response was Yes for 170 (85
percent) of 201 major grants and 132 (70 percent)
of the 189 mid-tier/intermediate grants.
To advance our Healthy Future 2015 goal of
strengthening measurement and evaluation (M&E)
capacity, we proposed to work with a subset of
nonprofit partners we fund to identify, develop and

2015 Citizenship & Sustainability Report 30


Fulfilling Our Promise and Making a Difference
implement projects that would build capacity to is limited. For HAS Haiti, an improved system
conduct M&E and report on and use the findings, is crucial to effective healthcare delivery and

350,000
with a focus on health outcomes. Working closely to ultimately driving desired health outcomes.
with evaluation consultants, grant managers and Thus the Company-supported capacity-building
nonprofit partners, the Companys monitoring and project aims to improve the EMR system, increase
evaluation staff identified 10 nonprofit partners staff accessibility of the system and improve
in need of capacity-building support, oversaw
administration of assets and needs assessments,
data quality. Some key activities underway in
2016 include conducting an assessment of the healthcare
providers
and supported design and implementation of current system and making recommendations
the initiative with interventions tailored to fit each for improvement, developing new data collection

trained in
nonprofit partners needs. We ultimately focused forms and modules and providing training.
our work with eight of these partners for which the

84
timing and opportunity aligned. Increasing M&E Capacity
Contents Here are a few examples of how we engaged In addition to this capacity-building work with
with our partners: several key partners, in 2015 the WCC team
People continued ongoing efforts to increase internal
Global Health Tracking Outcomes capacity to conduct M&E, to use those results to
Access & Affordability Hand in Hand (HiH) Internationals job creation inform programming, and to support all partners

countries
of Health Care
model works to integrate group savings, skills and team members on general M&E needs. For
Innovation training, micro-finance, and connections to larger example, the team developed common indicators
Philanthropy markets for grassroots entrepreneurs across 13 that can be aggregated across programs for some
countries. While HiH has been using a system to key areas of the portfolio. The team streamlined
Places consistently track key outputs of its work, it had internal data collection processes by setting up
limited infrastructure for collecting and reporting and monitoring an automated email reminder
Practices on health-related outcomes. The M&E capacity- system. Using the standardized reporting
building work supported by Johnson&Johnson definitions and guidelines, the team conducted
Worldwide Corporate Contributions (WCC) webinars for at least 200 individuals representing
convened HiH staff and a highly respected partner organizations and disseminated the in a United Nations Global Assembly week forum
consulting firm to identify key health outcomes and guidelines via email and online. Similar sets of on data for decision-making in global health. At
a plan for measurement and reporting. By the end tools to standardize data collection and reporting the 2015 Council on Foundations Conference we
of the project, HiH had developed a logic model for some specific clusters of programming were planned and implemented two panels of corporate
that incorporated health outcomes, defined key distributed (e.g., healthcare provider leadership philanthropy leaders on measuring social and
health and health-related indicators, and integrated and management programs). Regional data business impact. We also have expanded to begin
those indicators into existing data collection tools collection was centralized and standardized for contributing to forums focused on the broader
and information systems. the first time. The team also continued to expand evaluation field, such as the American Evaluation
upon a framework for measuring health outcomes Association.
Strengthening Data Systems for many major programs. At conferences like these, Johnson&Johnson
Another partner in this initiative focused more is one of very few corporations present, taking
on strengthening data systems. Hpital Albert Thought Leadership a strong stance on the importance of evaluating
Schweitzer (HAS) Haiti aims to improve health our work and highlighting collaboration with key
outcomes in its catchment area, including reducing When it comes to M&E of corporate giving, partners. We also continue to have a constant
maternal and neonatal mortality, severe disability Johnson&Johnson is increasing its position as presence at health and philanthropy conferences,
and mortality from trauma, and malnutrition among a thought leader by helping to drive the agenda such as the American Public Health Association,
children. HAS Haiti has an electronic medical on the importance of M&E. In September 2015, increasingly focusing on the role of M&E in our
record (EMR) system in place, but the system we hosted more than 100 global health leaders partnerships.

2015 Citizenship & Sustainability Report 31


Contents

People

Places
Environmental Responsibility
Product Stewardship
Our Ingredients
& Raw Mateirals
Sourcing of Materials
Climate
Water
Waste

Practices

Places
Well make the places we live, work
and play healthier, by using fewer and
smarter resources.
Environmental Responsibility
9

G4-14, G4-58

Contents We believe that human


People health is inextricably
Places linked to a healthy
Environmental Responsibility
Product Stewardship
environment. You cannot
Our Ingredients
& Raw Mateirals
have healthy people
Sourcing of Materials without a healthy planet.
Climate
The challenges facing the planet are
Water
numerous, and as a company, we recognize
Waste
the need to identify, prevent and plan for
these challenges, including constraints on
Practices natural resources, climate change and water
scarcity, and their impacts on human health.
This means that to create healthier societies,
we must have an unwavering commitment to
protecting the natural resources upon which
we all rely, today and in the future.

9. Includes data from all manufacturing and R&D locations. B E T T E R H E A LT H T H R O U G H N A T U R E Hands-on workshops on healthy food preparation and field
For information on how data from acquisitions and divestitures trips to farms and gardens help teach students of Origen Agroecological School in Pirque, Chile, about
are managed, please see the Report Profile section of this nutrition, healthy eating and disease prevention, while increasing their understanding of sustainable
report. Exceptions will be noted in the relevant sections in which agriculture, the environment and nature conservation. Johnson & Johnson is working to promote the
they occur. Origen education model.

2015 Citizenship & Sustainability Report 33


Environment, Health & Safety Management Company acquisitions have 36 months after Our Credo is the
Approach the date of acquisition to achieve ISO 14001
certification. As of the end of 2015, 96 percent
foundation of our
Johnson&Johnson has established global of Johnson&Johnson manufacturing and R&D Environment, Health
policies and statements, including our sites were certified; four non-certified sites and Safety Policy.
Environment, Health & Safety (EHS) Policy, our are acquisitions that are still working to obtain
Climate Friendly Energy Policy, and our statements certification 10.
It provides us with a clear,
on the Human Right to Water and Respecting The Companys Worldwide EHS&S standards compelling and enduring
Biodiversity to guide the management of our are designed to ensure that all Johnson&Johnson reminder of our responsibilities
operations around the globe. These are made companies achieve and maintain a consistent
actionable by our Environment, Health, Safety and and high level of EHS&S performance. These
to mothers, fathers, doctors,
Sustainability standards, which require that our standards address a range of topics (for a nurses and caregivers,
Contents
manufacturing and R&D sites have Environment, full listing, see Environmental Standards & employees, communities, the
Health, Safety & Sustainability (EHS&S) Assessment) and are reviewed and, if necessary,
management systems in place. Taken together, revised annually. environment and shareholders.
People these documents establish the expectations for Our Management Awareness and Action
managing our environmental performance, for Review System (MAARS) has been the assurance We believe that robust compliance is an
Places development and implementation of initiatives that process for all Johnson&Johnson sites to essential prerequisite for EHS excellence.
Environmental Responsibility
promote greater environmental responsibility, and proactively identify and mitigate EHS&S risks and
Product Stewardship for efforts to continually reduce our environmental to ensure compliance with legal requirements We believe that employee safety is a
Our Ingredients impacts. and the Johnson&Johnson Worldwide EHS&S
& Raw Mateirals core value, inseparable from our mission of
Standards. The process includes annual self- improving human health.
Sourcing of Materials Organizational Responsibility assessment, independent (second- or third-party)
Climate assessment (typically every three years), and
We believe that healthier employees are
Water The EHS&S organization is accountable for corrective action planning and tracking. For more
more engaged, more satisfied and more
Waste stewarding environment, health, safety and information, see Environmental Standards &
productive.
sustainability performance on behalf of the Assessment on our website.
Practices enterprise. The Executive Committee and the In 2015, we undertook an effort to improve the
Board of Directors provide EHS&S oversight, and
We believe that a healthy planet is the
MAARS process and to align it more closely with
the EHS&S Council, comprised of the EHS&S
ultimate human health issue.
other Johnson&Johnson risk functions internal
leadership team and representatives from relevant audit processes. The new approach will be more
functions (e.g., Facilities, Engineering) and the risk based, will provide for more in-depth auditing We believe that engagement and
business segments, provides additional guidance of high-risk areas and closer monitoring of site dialogue contribute to sustainable
and leadership to advance the EHS&S strategy corrective and preventive actions, and will require growth.
and performance. For more information, see standard qualifications and training of internal and
Environmental Responsibility/Approach on our external auditors. The new approach will be pilot We integrate EHS into our overall
website. tested in 2016. business strategy.
We continue to implement, track and
Management Systems and Standards maintain an incident notification process that We implement processes across
alerts management to EHS&S regulatory non- Johnson & Johnson to assure
All manufacturing and R&D sites are required compliances, accidental releases and safety adherence to this policy.
to maintain EHS&S management systems incidents within 72 hours of occurrence.
and to obtain third-party certification to the
International Standards Organizations (ISO)
14001 Environmental Management System. 10. Does not include small R&D sites with limited operations.

2015 Citizenship & Sustainability Report 34


34
Product Stewardship
We made good progress
on our
Healthy Future 2015
goal to increase sustainable
design of our products
Contents With the world Product Stewardship at
Johnson&Johnson Evaluated products and packaging for
People population anticipated For 130 years, the Companys desire to make
sustainability improvements resulting in
80 Earthwards-recognized products.
a difference has inspired every invention, every
Places to approach nine billion product and every breakthrough we have brought Exceeded

by 2050 and a quickly to human health. This commitment to serving the


11
Environmental Responsibility
Product Stewardship needs of others is guided by Our Credo, which
In addition to our goal:
Our Ingredients
& Raw Mateirals
expanding middle class, shapes our approach to business and defines
our responsibilities to our stakeholders. One of the Realized approximately $9.3 billion
Sourcing of Materials the worlds natural most important responsibilities emphasized in
Our Credo is our obligation to the environment:
in revenueapproximately 13 percent
of salesfrom Earthwards-recognized
Climate
Water
resources are under We must maintain in good order the property we products in 2015, an increase of more
are privileged to use, protecting the environment than 5 percent from 2014
Waste increasing pressure. and natural resources.

Practices According to the World Wildlife Fund Met commitments to remove


Living Planet Report, 2014, we need certain ingredients from our products
1.5 Earths to meet the demands by year-end 2015
humanity currently makes on nature.
Established a 2020 Citizenship &
Sustainability goal to fully integrate
sustainable design solutions into our
product innovation processes

11. w ww.worldbank.org/depweb/beyond/
beyondco/beg_03.pdf

2015 Citizenship & Sustainability Report 35


35
The Earthwards Approach EN-7
Impact Area Number of Earthwards-Recognized
Improvements Products

24
Earthwards is the Johnson&Johnson approach
Materials 85
for developing innovative and more sustainable

33
products. This approach defines how we think Packaging 70
about product life cyclesfrom formulation and
manufacturing to product use and disposal.
Energy 45 2011
The Earthwards approach focuses on Waste 19

52
improving the social and environmental impacts
Water 18
of our products and targets improvements in
seven key areas shown at right. To improve our Social 35 2012
performance, we collaborate with internal teams
Innovation 25

73
across all three business segments, and with our
Contents suppliers and customers to identify improvement
opportunities across our value chain. Our life cycle These improvements have resulted in the
People
approach includes considering opportunities to following reductions from products that 2013

80
apply green chemistry principles, improve the were recognized up through and including
Places
sustainability of our packaging, and reducing 2014: EN27
Environmental Responsibility
end-of-product-life impacts through recycling and Packaging
Product Stewardship reprocessing of used equipment. Approximately 3,600 metric tons (MTs) of
Our Ingredients Within five years of launching Earthwards,
& Raw Mateirals
we have surpassed our initial goal of making
reduction in packaging 2014
Sourcing of Materials significant improvements to 60 products by 2015, Materials
Climate with 80 products being Earthwards recognized Approximately 18,270 MTs of materials
Water at the end of 2015. Going forward, our 2020 removed
Waste Citizenship & Sustainability goal is to fully integrate Water
sustainable design solutions into our product Approximately 6,630 liters of less water
Practices innovation processes. used
2015
Our portfolio of Earthwards-recognized
Waste
products currently reflects a broad range of
Approximately 3,630 MTs of waste reduced
improvements, the majority of which go above
and beyond the minimum requirement of 10 For more information on the Earthwards process,
percent improvement. Specifically, our portfolio see Product Stewardship/Earthwards.
of 80 Earthwards-recognized products currently
reflects the following improvements across the
seven key impact areas:

Materials Packaging Energy Waste

Water Social Innovation

2015 Citizenship & Sustainability Report 36


36
Selected Products that Received Earthwards Recognition

in 2015 include:
Pharmaceutical Medical Devices Consumer

Contents

People

Places
AVEENO

Environmental Responsibility
Product Stewardship ATTUNE

Active Naturals
Our Ingredients PREZISTA

Knee System Ultra-Calming
PROLENE Mesh Nourishing

& Raw Mateirals
Oral Solution LOGICLOCK

Sourcing of Materials
(OS) (Latin America) Tibial Bas Night Cream
Climate
Water
Waste
Materials Energy Waste Water Packaging Packaging Energy Materials Energy Water Materials Packaging Energy

Practices 31 96 percent reduction in 33 percent reduction in the R


 emoval of paraben blend 14
percent reduction in the
weight of the shipper used for packaging materials 13 alloy required to cast each 6
 6 percent reduction in shipper
transportation12 100 percent sustainable part13 packaging 14
40 percent improvement in materials (FSC Certified) in 31percent reduction in 1
 44 percent increase in
shipping efficiency12 secondary packaging electricity offset by input by an shipping space utilization 14
31 60 percent increase in shipping on-site wind turbine13
percent reduction in
packaging waste generated at space utilization13 24percent reduction in water
the customer12 used to manufacture each For more information on
PREZISTA
part13 our Consumer brands, visit
OS is part of the
HealthyEssentials.com
New Horizons initiative, so
that donations are made to
pediatric AIDS patients in
qualified countries

12. Compared to previous active pharmaceutical


ingredient synthesis process 13. Compared to previous version of product 14. Compared to previous version of product

2015 Citizenship & Sustainability Report 37


Packaging
2012 2013 2014 2015

Following the 2014 launch of our Responsibility


Electronic Product Take-Back
Standard Forest-Based Materials & Products,
we focused our 2015 efforts on engaging
suppliers of our forest-based materials. As a Pounds Recycled NA 107,852 145,961 94,615
result, we have gained increased visibility on the
country of origin of these materials, as well as on Sterilmed Waste Reduction
supply chain and deforestation risks. Suppliers
demonstrate varying levels of ability to respond to Sterilmed Devices Collected (Number of Units) 7,710,998 11,342,149 9,421,194 9,090,726
inquiries, so continued focus in engaging this key
stakeholder group is required to fully realize our
Sterilmed Devices Reprocessed (Number of Units) 5,350,283 5,625,989 5,506,859 5,040,508
standards.
Contents We will continue to work with our suppliers
to enhance the transparency of our forest-based
People materials supply chain. When instances of
Product End of Life and Disposal EN28  ersistence, or how long the ingredient would
P
Managing the end of life for products is a steadily remain in the water before being degraded;
sourcing from high-priority countries are identified,
Places growing environmental challenge. While many of  ioaccumulation, or how the ingredient might
B
we request specific information regarding the
Environmental Responsibility our products are completely consumed in use,
materials. We also request this information build up in fish or other aquatic species over
this is not the case with others, including unused
Product Stewardship upfront during our supplier selection process. See time; and
medicines and some medical devices. Regarding
Our Ingredients Responsibility Standard Forest-Based Materials  oxicity, or how, if at all, this ingredient could
T
& Raw Mateirals medical devices, we work with our customers to
& Products and the Procurement section of this negatively affect fish or other aquatic life.
Sourcing of Materials
evaluate opportunities to increase the number
report for more information.
and quantity of products that can be recycled and
Climate Each ingredient we use is evaluated against these
reprocessed. Our Sterilmed business offers an
Water PVC Elimination criteria and given a score. Then, by calculating
excellent example of waste reduction efforts that
Waste For our Consumer products business, PVC how much of an ingredient is used in a product
have other benefits. By collecting devices bound
packaging represents less than one percent of and the score of that ingredient, each product can
for landfills or incineration, Sterilmed is significantly
Practices our total plastic packaging usage. We have been be given its own score. For products with lower
reducing waste disposal while providing a cost-
actively removing PVC from our packaging since scores, we look to improve the formulation to
effective alternative for our customers.
2005 and will continue to do so where technically reduce any potential impact on aquatic life. The
Weve also developed tools that help us
feasible, excluding pharmaceutical blisters. tool is used to guide product developers around
ensure that our products are gentle on the
Pharmaceutical blisters present unique challenges the world to choose environmentally preferred
environment long after you use them. When many
to transition to non-PVC alternatives including ingredients. The use of ingredients that are readily
of our products are used, they are washed off the
regulatory, safety and performance requirements. biodegradable and have minimal environmental
body and enter local wastewater systems, which
In 2015, we incorporated the prohibition of PVC impact to the ecosystem reduces our
then feed into the broader water supply.
use in packaging (excluding pharmaceutical environmental footprint. In 2015, nine Consumer
To better understand how our products
blisters) into our Global EHS&S Standards. products received Earthwards recognition, two
interact with water environments, we continue to
use a tool we developed in 2010 called GAIAthe of which were awarded in part for achievements
Global Aquatic Ingredient Assessment protocol. in their GAIA score and for meeting the minimum
GAIA analyzes what impact an ingredient might GAIA score required for Earthwards recognition.
have on an aquatic environment, and the fish And regarding packaging, the Care To Recycle
and plant life that live there. The GAIA protocol program was launched in fall 2013 after research
measures three key criteria that are commonly showed that many Americans do not recycle in
used to gauge aquatic impact: the bathroom, where most Johnson & Johnson
consumer products are used or stored. The

2015 Citizenship & Sustainability Report 38


Extended Producer Responsibility
Contents Johnson&Johnson complies with Extended
Producer Responsibility regulations where
People they exist around the world and also invests in
education programs, important partnerships and
Places other sustainability initiatives.
Environmental Responsibility To address prescription drug abuse, we have
Product Stewardship invested in programs with proven impact,
Our Ingredients such as teen, patient and physician education
& Raw Mateirals programs like Smart Moves, Smart Choices
Sourcing of Materials and Prescribe Responsibly.
Climate
 ecause we believe the issue of pharmaceuticals
B
Water in the environment (PIE) should be actively
Waste studied and monitored, we have invested
resources in efforts to improve PIE science, like
Practices the public-private Innovative Medicines Initiatives
iPIE project, in order to ensure the protection of
Our Johnson & Johnson Family of Consumer
I N C R E A S I N G R E C Y C L I N G I N T H E B AT H R O O M human health and ecosystems.
Companies created the Care to Recycle awareness campaign to engage consumers to remember to
recycle personal care products after research showed that many Americans are not recycling in the  o protect patients and healthcare practitioners
T
bathroom. This poster, created for PETEs Bathroom Bin Challenge, reminds us Recycling IS better from sharps injuries, we have committed to
than throwing everything away! designing our self-injected healthcare products
and lancets with safety features that minimize
the chance of a needle stick following use of
the device.
program aims to increase consumer awareness their families around doing good together. Care
of the recyclability of Johnson & Johnson To Recycle seeks to present recycling as part  e have focused on product stewardship as
W
Consumer Inc.s and other personal care product of the creative parenting process rather than a critical to advancing sustainability and have
packaging, and ultimately increase recycling household chore. In 2015, the program doubled been long recognized for our Earthwards
of those items. Through the Care To Recycle consumer engagement actions (e.g. video approach. It is being embedded into our product
website, social media platforms like Pinterest views, quizzes, social media actions) and online development processes, and it helps drive
and Facebook, partners like Recyclebank and research demonstrated a direct positive impact continuous product innovation by designing
Earth911, and relevant influencers, were showing on consumer intent to recycle personal care more sustainable solutions across all parts of a
how recycling can help parents create a bond with products. products life cycle.

2015 Citizenship & Sustainability Report 39


Reducing the Environmental Impacts of
Health Care
Everything we do affects the health of the planet.
From the medicines and devices used, to the
buildings in which treatment is conducted to
the disposal of wastes generated by healthcare What is a sustainable
institutionsthe impacts are expansive. We must
develop more sustainable healthcare products and health system?
services, and evaluate the way resources are used
in the delivery of health care to prepare for more The Sustainable Development Strategy, published by the
people on the planet one day needing access to Sustainable Development Unit in January 2014 for and on
15

health care.
Johnson&Johnson, in partnership with
behalf of the National Health Service, Public Health and
Contents several other companies, is working with the Social Care within the U.K. provides the following definition
People
Coalition for Sustainable Pharmaceuticals and of a sustainable health system:
Medical Devices (CSPM) to address the way we
deliver care, to redesign services and to promote
Places A sustainable health and care system
prevention. In 2015, CSPM, a partnership with the
Environmental Responsibility
National Health Service (NHS) in the UK, released
Product Stewardship the Sustainable Care Pathways Guidance, a works within the available environmental and
Our Ingredients guidance document to enable more consistent
& Raw Mateirals
quantification of the sustainability performance of social resources protecting and improving health
Sourcing of Materials care pathways globally, both those that already
Climate exist and new and emerging pathways, with the now and for future generations. This means working
Water intent of providing support to decision makers in
Waste their choices related to improving the performance to reduce carbon emissions, minimizing waste
of models of care. Currently, the guidance is
Practices limited to appraising greenhouse gas (GHG) and pollution, making the best use of scarce
emissions, water use and waste generation, but it
will be expanded to additional environmental and resources, building resilience to a changing
social metrics over time. CSPM operates with the
aim of facilitating transition to a more sustainable climate and nurturing community strengths
health system internationally, through the
promotion of best practice and the development and assets.
of sustainability tools and guidelines related to care
pathways, pharmaceuticals and medical devices. Coalition for Sustainable Pharmaceuticals and Medical Devices (CSPM);
Sustainable Care Pathways Guidance

15. The Sustainable Development Unit is funded by, and accountable to, NHS England and
Public Health England to work across the NHS, public health and social care system.

2015 Citizenship & Sustainability Report 40


Our Ingredients Emerging Issues

& Raw Materials Replacing


microbeads
with
jojoba beads
Contents Our Safety & Care In 2011, we made a global commitment to
remove formaldehyde-releasing preservatives
Microbeads are used in exfoliating face
washes. In personal care products they act

People
Commitment means and to further reduce traces of 1,4-dioxane
from applicable products by December
to gently scrub away dead skin in much the
same way a sponge would. Concerns have

Places
that our products are 2015. This was a decision made based on
changing consumer sentiment. As of January
been raised about the environmental impact
of polyethylene microbeads. Despite the
Environmental Responsibility supported by science, 2016, we have met all our commitments; growing environmental science that shows
we have reduced and eliminated certain that microbeads are significantly removed
recommended by
Product Stewardship
Our Ingredients ingredients in our baby and beauty products by wastewater treatment and are not found
worldwide. Our efforts to phase out or in marine life, the environmental concern is
healthcare professionals
& Raw Mateirals
Sourcing of Materials restrict several additional ingredients from not likely to be resolved in the near future.
Climate
and trusted by people our products continue, as shown in the table
below. For more information on our efforts,
Our Safety & Care Commitment means we
continually evolve our policies and products
Water
Waste around the world. safety process, ingredient safety policies
and programs, visit Our Safety & Care
to reflect not only the latest science and new
regulations, but also consumer views and
Commitment website. concerns. Our goal is to give consumers
Practices peace of mind that our products are gentle on
people and gentle on the environment.
Reformulations Baby Care Products Adult Care Products
In 2013, the Johnson & Johnson Family of
Formaldehyde Removed from new adult products; use Consumer Companies Inc. became one of
Removed
releasers for new products is by exception only the first companies to commit to removing
polyethylene microbeads from its personal
1,4-Dioxane Reduced to four or fewer parts per million Reduced to 10 parts per million
care products globally. Our goal is to remove
microbeads from our products globally
Phased out parabens (except for methyl,
Parabens Removed by the end of 2017, having met our 2015
ethyl and propyl parabens)
commitment and now having alternatives
Triclosan Not permitted Removed from all products available to our consumers. As always, our
goal is to choose ingredients that are safe
Removed phthalates, nitro musk, polycyclic musks, animal-derived ingredients, tagetes, and environmentally sound and provide
Materials in fragrances
rose crystal and diacetyl
consumers with a great experience.
No longer developing new products containing polyethylene microbeads; goal is to
Microbeads
remove them from our products globally by the end of 2017

2015 Citizenship & Sustainability Report 41


Responsibility Standards
for Suppliers Sourcing of Raw Materials

Our standards include requirements to: The Johnson&Johnson Family of Companies


approaches the issue of responsible sourcing of
C
 omply with applicable laws and regulations raw materials in several ways. Our Responsibility
Standards for Suppliers state that suppliers
Contents are expected to operate in a responsible
Behave ethically and with integrity manner, and work to reduce their environmental
People impacts including those associated with material
sourcing. For more information on our efforts
Places
Integrate quality into business processes with our suppliers, see the Procurement &
Environmental Responsibility Supplier Management section of this report.
Product Stewardship Respect human and employment rights Johnson&Johnson also has specific responsible
Our Ingredients
sourcing programs for forest products (see
& Raw Mateirals Packaging and Procurement & Supplier
Sourcing of Materials
P
 romote health, safety and well-being of Management) and palm oil. And, as mentioned
Climate
employees earlier in this section, we focus on improving the
impacts of our products through our Earthwards
Water
approach.
Waste E
 mbrace sustainability and operate in an
environmentally responsible manner
Practices
Johnson&Johnson
Implement management systems Safety Assurance Process
1 Partner only with suppliers that meet
B
 e transparent about impact on the our ingredient safety standards and
environment and social issues product stewardship principles to
source our raw materials
2 Conduct ingredient safety
assessments
3 Conduct clinical evaluation of
formulations
4 Conduct in-use testing
5 Ongoing evaluations of ingredients in
beauty and baby care products

2015 Citizenship & Sustainability Report 42


Palm Oil
Increasing
Palm oil is the most widely used vegetable oil in
the world and a common ingredient and feedstock
Small Holder
to ingredients in many foods, fuels and personal
care products. Growing populations and an
Yield
increased demand for such products means Researchers at Wageningen University
palm oil production has never been higher and is in the Netherlands, in partnership with
continually increasing. This demand for palm oil Johnson&Johnson, are seeking to
has led to conversion of high-conservation value
understand the barriers that small holders
forests, contributed to the destruction of habitats,
face to sustainably increase oil palm yields in
compromised biodiversity, and generated social
their plantations in Indonesia. The project is
conflicts between indigenous communities and
Contents growers. exploring opportunities to address the financial
We do not buy palm oil but instead buy and labor constraints facing small holders, and
People ingredients derived from palm oil (called to find pathways to move from current poor
derivatives) and its by-product, palm kernel oil. management and average yields of 1518 tons
Places
Environmental Responsibility
Progressive palm oil Our purchases of these derivatives represent of fresh fruit bunches per hectare to greater
a tiny fraction of global palm oil production. Oil than 22 tons per hectare.
Product Stewardship
policies and practices from a variety of growers, processing plants and
Our Ingredients since 2006 countries is intermingled during the manufacturing Working with the small holders, the researchers
& Raw Mateirals and delivery, which makes verifying the origins of
2006 Joined the Roundtable for are identifying and implementing sustainable
Sourcing of Materials the oils used to produce the oleo-chemicals we
Sustainable Palm Oil (RSPO) practices, such as applying the right amount
Climate use in our products very difficult.
of fertilizers and other good practices, and
Water Since launching our Responsible Palm Oil
2011 Set goal to source all ingredients Sourcing Criteria in 2014, we have engaged all our
simultaneously measuring the yield, number
Waste
derived from palm oil from certified leading suppliers who represent the majority of our of bunches and vegetative growth of the
sustainable sources palm oil derivatives supply. Our Sourcing Criteria palms. The data will help the researchers
Practices
are being used to assess our top suppliers against to understand the mechanisms behind
2012 Our work with small holders our commitments and to map our derivatives yield improvement and to design suitable
gives first certification to independent supply chain with the goal of achieving full approaches for projects at a larger scale. Our
RSPO small holders in Thailand transparency on our palm oils origin. goal is to find ways to increase sustainable
Our goal is to fully implement our sourcing production in small holder systems, so that the
2014 Became a member of criteria by year-end 2020. For more information, increased demands for palm oil can be met
The Forest Trust (TFT), launched see Raw Material Sourcing and Palm Oil without the need for large-scale expansion, and
Tracability.
our Responsible Palm Oil Sourcing the position of small holder palm oil producers
Criteria, and began direct evaluation of is improved, said Wageningen University
the suppliers used in our supply chains researchers.

2015 Qualified our first supplier of


RSPO-certified soap noodles in South
America

2015 Citizenship & Sustainability Report 43


Contents
External Organization
Participation
People
To remain fully engaged in the latest
Places
Environmental Responsibility
developments around product
Product Stewardship stewardship, Johnson&Johnson is
Our Ingredients
& Raw Mateirals
an active member and participant
Sourcing of Materials in several industry and collaborative
Climate
organizations. Some include:
Water
Waste

Practices

2015 Citizenship & Sustainability Report 44


Climate

Contents Human health and


People environmental health
Places go hand in hand.
Environmental Responsibility
Johnson&Johnson began its formal energy
Product Stewardship
management program more than 30 years ago.
Our Ingredients
& Raw Mateirals In 2000, we established our first enterprise-wide
public commitment to reduce CO2 emissions.
Sourcing of Materials
In just the past 10 years, our energy and CO2
Climate
emissions reduction projects have reduced
Water both our energy costs and carbon footprint by
Waste approximately 15 percent. We are proud of the
solid progress we have made to reduce our
Practices carbon footprint, protect our environment and
conserve our natural resources. And we are
committed to doing even more.
Climate change is one of the biggest global
health threats of the 21st century, according to
a recent report by the Lancet/UCL Commission
on Health and Climate Change, a collaboration of
dozens of experts from around the world.16

H A R N E S S I N G T H E S U N S P O W E R Still one of the largest solar panel arrays in the state of New Jersey,
this collection of panels installed back in 2010 on the Janssen Titusville campus puts the power of the sun
to work. Solar energy is one part of our growing reliance on clean and renewable sources of energy as we
aspire to power all our facilities with renewable energy by 2050.

16. Managing the Health Effects of Climate Change, 2015.

2015 Citizenship & Sustainability Report 45


As part of the Citizenship & Sustainability Johnson&Johnson
2020 Goals we launched in 2016, we extended
our commitments with two new energy and
partnered with the
climate goals based on the latest climate science. World Wildlife Fund, the
Across Johnson&Johnson, we aim to: World Resources Institute
Reduce absolute carbon emissions and 34 other corporations
20 percent by 2020 and 80 percent by 2050 17
to launch the Corporate Renewable
 roduce/procure 20 percent of electricity
P
Energy Buyers Principles, which
from clean/renewable sources by 2020 and
aspire to power all our facilities with renewable were created to raise awareness of
energy by 2050 the challenges faced by corporate
Also in 2015, we: energy purchasers.
Contents
 oined more than 80 companies
J
People in the signing of the American Business
Act on Climate Pledge, a commitment to
Places take climate action. The pledge was signed
Environmental Responsibility by 30 percent of the largest 50 companies in
Product Stewardship the United States, who together employ nine
million people across the nation.
Our Ingredients In 2015, Johnson&Johnson
& Raw Mateirals
Sourcing of Materials
 oined RE100, a collaborative, global
J Chairman and CEO Alex Gorsky
initiative of influential businesses committed joined a round table discussion with
Climate
to 100 percent renewable electricity. We were
Water the first healthcare company to join the ranks
President Obama and business
Waste of other prominent businesses that have made leaders to discuss the impact and
this pledge. RE100 is led by The Climate influence business can have on
Practices Group in partnership with Carbon Disclosure our environment. The Summit on
Project.
Climate and the Road Through
 ontinued participation in all of the
C Paris brought together science and
CDPs reporting programs, including business leaders to explore ways
Climate Change, Water, Supply Chain Climate,
Forest and Water Supply Chain programs. See
to further drive efforts to address Five Johnson&Johnson delegates
our reports at www.cdproject.net. climate change. attended the sixth annual One Young
World Summit in Bangkok, Thailand. Each
 chieved recognition as part of the
A
CDP Disclosure Leadership Index for the delivered a video message calling on their
sixth consecutive year. Our performance score respective country leaders to take action
was a B, and our disclosure score was a 99. to stop climate change, reminding them
Performance compared to that of our peer of its impending danger to the health of
companies is presented in the CDPs S&P 500 people and the planet.
Climate Change Report 2015.

17. Pertains to Scope 1 and Scope 2 emissions only.

2015 Citizenship & Sustainability Report 46


Energy Use18

Our energy use has decreased 5.2 percent, from 2015 Energy Consumption, by Type
13,537 terajoules (TJ) in 2010 to 12,837 TJ in
Energy Consumption
2015, including a decrease of approximately 112 Category
(Terajoules)
We made good progress TJ from 20142015. These reductions are due
on our primarily to improvements in the efficiency of our Electricity 6,665

Healthy Future 2015 utility systems at our largest production facilities.


19 20
District Heating/
199
EN5 , EN6 Our energy intensity has decreased by
goals to steward a healthy Cooling
17 percent, from 220 TJ/billion U.S. dollars (USD)
Contents environment Natural Gas 5,285
inEnergy
2010 toConsumption
183 TJ/billioninUSD in 2015.
Terajoules
Purchased Diesel 582
People
Realized a 9.8 percent absolute 2015 Purchased Energy Consumption,
in Terajoules EN3, EN4 2010 Propane 88
Places reduction in facility CO2 vs. 2010
Total
Environmental Responsibility
baseline. (Target is 20 percent by 2020.)
2010 6,385 7,151 Fuel Oil 6 15
On track 13,537
Product Stewardship
Biomass 2
Our Ingredients 2011 6,007 6,966 2011
& Raw Mateirals Increased on-site clean- 12,972
Solar PV 77
Sourcing of Materials technology energy capacity to 2012 5,834 6,900
54 MWs. 12,734 Geothermal 29
Climate
Exceeded 2013
2012
Generated
Water 6,227 6,859 Cogeneration 610
13,086
Waste On-Site
Realized 20 percent improvement 2014 6,211 6,738
12,949
Wind 57
Practices in vehicle emissions efficiency. 2013 Fuel Cell 26
Met 2015 5,973 6,864
12,837

00

00
00

00

00

,0

,0
3,

6,

9,
2014

12

15
Direct (Fuels)

Indirect (Electricity and District Heating/Cooling)

2015

18. Includes site-specific data from all Johnson & Johnson owned and leased sites over 50,000 square feet, as well as
manufacturing and R&D sites under 50,000 square feet, unless otherwise noted. For information on how data from acquisitions
0 3000 6000 9000 12000 15000
and divestitures are managed, please see the Report Profile section of this report. Energy use, carbon emissions and clean energy
capacity data have been adjusted to reflect acquisitions and divestitures.
19. Our diverse product portfolio makes it difficult to track an organization-specific metric, so we can only use revenue, square
feet or employees as a denominator for energy intensity. Electricity, stationary fuels and district heating and cooling are all included
in energy intensity ratio, which also includes energy used at Johnson & Johnson facilities.
20. The types of energy included in the reductions are fuel and electricity. Reductions in energy consumption are calculated by
comparing energy consumption before project implementation and expected consumption after implementation. The project data
we have are based on engineering estimates when the projects are approved.

2015 Citizenship & Sustainability Report 47


To improve the efficiency of our operations, While energy efficiency improvements are one
Johnson&Johnson has implemented five way to address climate change, the use of
targeted demand-side efficiency efforts (see clean energy sources is a way to reduce the
below) designed to optimize the largest energy- environmental impact of the energy our business
using systems at our most energy-intensive needs to operate. At the end of 2015, we have
manufacturing and research properties. These increased our on-site clean/renewable energy
programs have realized reductions in both energy technology capacity to 54 megawatts (MWs),
and water use. In 2015, we began expanding exceeding our Healthy Future 2015 goal of
these programs beyond North America 50 MWs.21 Of this, 53.5 MWs are currently
and the Europe, Middle East and Africa (EMEA) installed and 0.5 MWs are approved or under
region into Asia-Pacific and Latin America. construction. Efforts in 2015 include two fuel
cell projects in California, and the construction
of a new windmill project in Ireland, which was
Contents completed in early 2016. Currently, approximately
seven percent of the Companys electricity is At our Vision Care facility in Limerick,
People
Converting existing chilled water systems
Clean into
Energyan
Sources generated
Percent of Totalby clean/renewable sources. Our 2020 Ireland, a 3.0 MW wind turbine
optimized variable condition by takingFuel
advantage goal, updated in 2016, is to produce/procure
Places Cell 2 completed in early 2016 is the latest
of state-of-the-art control technology. 20 percent of our electricity needs from clean/
Environmental Responsibility Biomass 2
renewable sources by 2020, with an aspiration to project in a series of energy use
Product Stewardship Geothermal
power3 all our facilities with renewable energy and CO2 emission reduction efforts
Our Ingredients Wind by 2050.17
ongoing since 2006, which through
& Raw Mateirals
Modernizing steam and hot water systems Cogeneration
by 36
the end of 2015 have reduced the
Sourcing of Materials utilizing a mix of proven best practicesSolar
andPVnew Current 40 On-Site Renewable/
Climate technologies to increase efficiency. Clean Energy Capacity energy cost and CO2 emissions at
Water 54 Megawatts Fuel Cell 2% that location by nearly 30 percent.
(installed or in progress)
Waste Biomass 2% These efforts continue into 2016 with
Geothermal 3% Solar PV
additional energy efficiency and water
Practices Implementing continuous monitoring, improved
use reduction projects. An energy
controls, efficient drying and heat recovery on our Congeneration
largest compressed air systems. wall (below) at the facility explains
Wind and tracks the site efforts.
Project Wind
Solar PVcAIR 17%
40%
Retro-commissioning the HVAC systems at our Project HOT Geothermal
largest properties using real-time controls and Project cAIR
set-point optimization.
Project HOT Cogeneration Biomass
Project cAIR 36%
Systematically upgrading existing
fluorescent lighting systems to LED
Project HOT Fuel Cell
technology to provide better light
quality and control while improving Project cAIR
efficiency.
Project HOT
21. Performance is lower than clean energy capacity reported
in 2014 report (55.7 MW) based on recalculations due to
divestitures.

2015 Citizenship & Sustainability Report 48


Energy Consumption in Terajoules

Facility CO2 Emissions22 Worldwide Facility CO2e Emissions Worldwide Aviation and Sales Fleet
(Scope 1 and Scope 2) EN15 23 EN16 23, 24 Scope 1 Emissions
in thousand metric tons 25 in metric tons
We continue to follow the Greenhouse Gas Total
Protocol issued by the World Business Council 2010
2010 332 904 1,236 Year Sales Fleet Aviation
for Sustainable Development and the World
Resources Institute, and three of our sites are 2011 313 859 1,172 2011 150,003 8,544
subject to the European Union Emissions Trading
System program. We track and report our Scope 2012 303 822 1,125 2011
2012 142,709 8,571
1 and 2 emissions sources. In launching our new 2013 132,973 9,081
science-based 2020 CO2 reduction goal, we 2013 323 810 1,132
also expanded the scope of the goal to include 2014 130,755 10,604
2014 324 799 1,123 2012
our aviation fleet and sales fleet. We continue to 2015 127,640 9,855
engage with our external supply chain in an effort 2015 312 803 1,115
Contents to collect meaningful data on our material Scope
3 emissions sources and collaborate with them on 0 200 400 800 1,200 1,500
2013
People reducing their carbon footprint. Direct Indirect
Our Healthy Future 2015 goal is to achieve a 20
Places percent absolute reduction in facility CO2 emissions Worldwide CO2 Emissions vs. Sales, Facility-related Scope 1 and Scope 2 emissions, 19902015
CO2 Emissions (thousand metric tons) Sales (billion US$)
Environmental Responsibility by 2020, compared to our 2010 baseline. Since 1,400
1400 CO2 emissions (thousand metric tons)
2014 Sales (billion US$) 90
$90

Product Stewardship 2010, we have realized a 9.8 percent decrease in Net emissions Sales
1,200
1200
75
75
Our Ingredients CO2 emissions at our facilities globally. In 2015, we
& Raw Mateirals realized a 0.7 percent decrease in CO2 emissions, 1,000
1000
60
60

Sourcing of Materials from 1,122,888 metric tons in 2014 to 1,114,764 800


800
2015
Climate metric tons in 2015. These reductions are the result 45
45
600
600
of energy efficiency and clean energy projects, the
Water 30
30
electricity grid becoming cleaner across the globe 400
400 0 300 600 900 1200 1500
Waste
and portfolio optimization. Our emissions intensity 200
200
15
15

(including Scope 1 and Scope 2 emissions) per


Practices revenue since 2010 has decreased by more than
00
1990
1990 1995
1995 2000
2000 2005
2005 2010
2010 2015
2015
00

20 percent, from 20.1 MT CO2 /million USD in 2010


22. Recalculation for Emission Factors: It is standard for reporting Corporate Accounting and Reporting Standard. Electricity
to 15.9 MT CO2/million USD in 2015. EN18 We on Scope 2 GHG emissions to use electricity factors with a two- emission factors are obtained from the International Energy
currently do not use carbon offsets to reduce our year lapse time due to the delay in the availability of grid and Agencys CO2 Emissions from Fuel Combustion Report and the
country emission factors for a specific year. For this reason, we U.S. Environmental Protection Agencys eGRID publication. Fuel
global emissions footprint. use the most recent emission factors available when reporting emission factors are obtained from the EPA Climate Leaders
The Scope 3 emissions currently tracked in- emissions, and then recalculate emissions for prior years when the publication. Global Warming Potentials are obtained from the
clude employee business travel, non-hazardous actual factors become available. Intergovernmental Panel on Climate Change Fifth Assessment
Report. The chosen consolidation approach for emissions is
waste generated from our operations, electric- 23. Johnson&Johnson does not currently use purchases,
operational control.
sales or transfers of offsets or allowances. Gases included in
ity-related transmission and distribution losses, these calculations include only CO2, as that is how our goal was 24.Facility CO2 emissions numbers were third partyassured
and limited downstream (U.S. only) transportation originally written, but we have calculated methane and nitrous in 20102015, but prior year values are being restated due to
emissions. Evaluation of opportunities for engage- oxide emissions from 2010 forward, and these are included in updates in electricity grid emission factors and the addition and
our new goal. Hydrofluorocarbons (CFCs) are tracked by EHS&S. removal of acquisitions and divestitures, which is in line with
ment and improvement within our Scope 3 footprint Perfluorinated chemicals, sulfur hexafluoride and nitrogen trifluoride guidance from the World Resource Institutes Greenhouse Gas
continue, and an input/output analysis has been do not result from our operations. We do not calculate or report Protocol Corporate Standard.
biogenic CO2 emissions in metric tons of CO2 equivalent separately
performed to identify emissions hot spots within 25. Emissions data are adjusted for prior years due to
from the gross direct (Scope 1) GHG emissions. Base year is 2010,
our value chain. We continue to participate in the divestitures, acquisitions and updated emissions factors. As a
included in table. Emissions in base year have been recalculated
result, data presented here will not correspond to the figures in the
CDP supply chain climate program where we ask to adjust for acquisitions and divestitures in accordance with
2014 Report or those submitted to CDP in the respective years.
guidance from World Resources Institute Corporate Accounting
our largest suppliers to report energy and emissions and Reporting Standard. We follow the World Resources Institute
For information on how data from acquisitions and divestitures are
managed, please see the Report Profile section of this report.
data for their operations. For more information, see

2015 Citizenship & Sustainability Report 49


Scope 3 CO2 Emissions EN17 26 EN30 Approved Energy Reduction Projects, Since 2005
in metric tons
Project Type Number of Projects
Downstream Product Fuel- and Energy-Related
Year Business Travel Transportation Activities Other Energy Efficiency 59
2010 219,290
Project Relight 44
2011 232,944
Project COLD 28
2012 224,220 63,058
Project n-AIR-g 6
2013 229,317 55,722 87,313
Project HOT 5
2014 235,157 36,246 84,957
Project cAIR 5
2015 248,281 available 12/16 93,128

Business Travel includes global flights via American Express reporting and personal vehicles miles via gXRS internal reporting.
Solar Photovoltaic 30
Contents Downstream Product Transportation includes downstream shipping-related emissions for U.S. operations as compiled by U.S.
Environmental Protection Agencys (EPA) SmartWay program. Fuel- and Energy-Related Activities includes transportation and
Cogeneration 14
People distribution losses in the electricity grids globally per EPA data in the U.S. and World Bank data globally.
Geothermal/Biomass 6

Places Wind 3
Environmental Responsibility
the Procurement & Supplier Management section completed since 2005 have reduced our annual
of this report. Fuel Cell 2
Product Stewardship
energy costs by approximately $64 million. EN19
Our CO2 reduction capital funding process
Our Ingredients Ozone-Depleting Substances (ODS) Sales Fleet CO2 Emissions Efficiency
& Raw Mateirals provides a $40 million annual budget for energy
and greenhouse gas reduction projects across Chlorofluorocarbons (CFCs) have been
Year Grams CO2 per kilometer
Sourcing of Materials
the Company. In 2015, 14 new projects were eliminated from use in our facilities for several
Climate 2010 177 g/km
approved and 15 projects were completed, with years. We plan to eliminate the use of hydrochlo-
Water year-end total spend of $26.5 million. 2011 170 g/km
rofluorocarbons (HCFCs) by the end of 2025, or
Waste Over the last 11 years, 202 energy reduction earlier where required by government regulations, 2012 161 g/km
projects have been approved and 166 have and all Johnson&Johnson manufacturing sites
Practices been completed. Together, the completed were required to prepare an HCFC phase-out 2013 149.6 g/km
projects are collectively avoiding CO2 emissions plan. For more information, see Air Emissions on 2014 142.8 g/km
of approximately 228,000 metric tons per year, our website. In 2015, emissions of ODS were
equivalent 27 to removing 48,000 cars from the 2015 141.8 g/km
3.64 metric tons. We do not produce, import or
road.To date, the energy reduction projects export ODS. EN20

26. Facility CO2 emissions numbers were third partyassured in Fleet-Related CO2 Emissions CO2 emissions efficiency in both the EMEA and
20102015, but prior year values are being restated due to updates Asia-Pacific regions. Belgium, France, Germany,
in electricity grid emission factors and the addition and removal of We achieved Our Healthy Future 2015 goal the United Kingdom, Japan and the Philippines
acquisitions and divestitures, which is in line with guidance from
to realize a 20 percent improvement in increased use of more fuel-efficient vehicles.
the World Resource Institutes Greenhouse Gas Protocol Corporate
Standard. fleet emissions28 efficiency for our global
27. www.epa.gov/energy/greenhouse-gas-equivalencies-calendar inventory of more than 28,000 owned or leased Shipping-Related CO2 Emissions
28. Fleet vehicles are those vehicles owned or leased by vehicles, with an average global CO2 emissions
Johnson&Johnson and provided to drivers in field sales and service per vehicle of 141.8 g/km, representing a Johnson&Johnson does not own the fleet
roles. In countries other than the U.S., vehicles are also provided used to ship our goods; instead, we work with
to employees based on level as part of their overall compensation
20 percent reduction in CO2 from the 2010
package. Personal vehicles driven as part of a business role or need baseline of 177g/km. EN30 asset and non-asset based providers to transport
are not part of the Fleet Program. For information on how data from These results were driven by a decline in our goods.
acquisitions and divestitures are managed, please see the Report
Profile section of this report. total vehicle count and an increase in average To minimize environmental impacts from

2015 Citizenship & Sustainability Report 50


goods transport, we work with our transportation Johnson & Johnson LEED-Certified Buildings
providers to optimize our network, using multi-
Affiliate Location Level Date Building Area (Sq. Ft.)
compartment trailers, taking advantage of freight
consolidation opportunities, eliminating deadhead Janssen Titusville, N.J. Gold 8/04 472,553
miles (the number of miles that are driven from the J&J PRD La Jolla, Calif. Certified 4/05 150,000
point of unloading to the point where the new load
McNeil Ft. Washington, Penn. Silver 12/06 50,000
is ready for pickup), and engaging in cross-shipper
moves with other companies that have similar McNeil Las Piedras, Puerto Rico Certified 9/09 482,642
product lines. J&J PRD Springhouse, Penn. Gold 11/09 150,000
In 2015, our efforts to increase intermodal
World Headquarters New Brunswick, N.J. Gold 12/09 448,200
shipments continued, helping to decrease carbon
emissions. In the U.S., Johnson&Johnson Janssen Geel, Belgium Certified 1/11 82,505
participates in the U.S. Environmental Protec- J&J Medical China Suzchou, China Silver 1/11 52,635
Contents tion Agencys SmartWay program, which helps
J&J Consumer China Shanghai, China Silver 2/11 68,847
companies voluntarily increase transportation
People energy efficiency while decreasing greenhouse J&J Consumer Philippines Manila, Philippines Gold 10/11 74,271
gas emissions and air pollution. At the same time, J&J Medical China Suzchou, China Gold 10/11 21,528
Places the SmartWay Transport Partnership helps freight
Environmental Responsibility Lifescan Inverness, Scotland Gold 10/11 14,500
companies improve fuel efficiency, increase
Product Stewardship environmental performance and increase supply J&J Sales & Logistics Mooresville, Ind. Gold 1/12 1,050,000

Our Ingredients chain sustainability. More than 99 percent29 of J&J India Chennai, India Gold 3/12 20,600
& Raw Mateirals the over-the-road transport providers in our U.S.
Centocor U.S. Horsham, Penn. Silver 12/12 27,494
Sourcing of Materials network are currently members of the program.
Climate The SmartWay membership is part of the decision J&J Family of Companies Zug, Switzerland Platinum 3/13 271,000

Water criteria for awarding business to our transportation McNeil Ft. Washington, Penn. Gold 6/13 345,700

Waste providers.
Centocor U.S. Horsham, Penn. (200) Gold 12/13 92,734

Green Buildings Centocor U.S. Horsham, Penn. (850) Gold 12/13 89,718
Practices
Our Policy on Sustainable Building Design and Centocor U.S. Horsham, Penn. (800) Silver 12/13 107,675

Construction requires that sustainability be J&J Dubai Dubai, UAE Gold 6/14 82,000
incorporated into our new buildings and major LifeScan Aguadilla, Puerto Rico Silver 10/14 188,573
renovations, and that it be applied to all projects
Janssen Belgium La Louvire, Belgium Silver 11/14 313,000
with a cost of at least $5 million and to all new
stand-alone facilities owned or leased by LifeScan Canada Burnaby, British Columbia Silver 11/14 25,872
Johnson&Johnson companies worldwide. Janssen India Mumbai, India Platinum 12/14 84,160
The policy establishes an enterprise minimum
Vison Care Jackonsville, Fla. Silver 6/15 45,200
design standard based on the Leadership in
Energy & Environmental Design (LEED) standard. J&J Consumer China Minhang, China Silver 9/15 77,640
At the end of 2015, Johnson&Johnson had 29 CorporateGeorge Street Building New Brunswick, N.J. Silver 10/15 258,400
LEED-certified buildings, with four new facilities in
JJSC Bridgewater, N.J. Certified 10/15 129,000
the U.S. and China joining the list (at right).
Total 5,276,447

Johnson&Johnson Building Area 50,634,606

29. 2014 value, EPA SmartWay Report. Sustainable Workplace Percentage 10.4%

2015 Citizenship & Sustainability Report 51


Water
30

Contents Clean water is


People essential for health.
Places People depend on water for drinking, sanitation,
Environmental Responsibility hygiene and food supply. Yet one in nine people
Product Stewardship lack access to clean water, and half the worlds
Our Ingredients hospital beds are filled with people suffering
& Raw Mateirals from water-related diseases31. More than a billion
Sourcing of Materials people currently live in water-scarce regions, and
Climate as many as 3.5 billion could experience water
Water
scarcity by 202532. And as populations continue to
increase, climate change is expected to shift
Waste
precipitation patterns and speed glacial melt,
altering water supplies and intensifying floods and
Practices drought.

Global Water Stress and Scarcity

Water scarcity occurs when water supplies are no


longer adequate to satisfy all human or ecosystem
requirements, resulting in increased competition
between water users and other demands.
Our Statement on Human Right to Water
recognizes that everyone is entitled to sufficient, safe,

30. Includes data from all manufacturing and R&D locations.


For information on how data from acquisitions and divestitures
are managed, please see the Report Profile section of this
report. Exceptions will be noted in the relevant sections in which
they occur. Data have been adjusted to reflect divestitures. A C C E S S T O S A F E W A T E R Access to reliable sources of potable water is limited in many parts of the world,
such as in this village in Nkhotakhota, Malawi. Without access to clean water, children walk long distances and use
31.Globalwaterchallenge.org
dirty water from ponds and rivers, raising fear of waterborne disease. Johnson & Johnson recognizes the Human
32.WRI.org Right to Water, as defined by the United Nations.

2015 Citizenship & Sustainability Report 52


R&D locations and implement water-risk mitigation 2015 Water Use, by Region
plans (WRMPs) at high-risk sites. Additionally, in million cubic meters
more locally focused data about our water use
and impacts will be available as we move forward 0.7
1.9
to meet this goal. EN26 Latin America
Asia-Pacific
Asia-Pacific
Water Usage33 EN10 EMEA
North America
EMEA
4.3
North America
North America
Johnson&Johnson has had goals to reduce EMEA
Latin America
water usage for over 10 years. We have made Latin America
4.2
Asia-Pacific
From 20102015, Johnson&Johnson substantial progress in reducing our water use,
continued to decrease its water usage realizing an absolute reduction of over nine
an additional 7.2 percent. percent from 20052010, and an additional
Contents 7.2 percent from 2010 to 2015.
At the end of 2015, our water use volume was
People acceptable, physically accessible and affordable down to 11.13 million cubic meters, a reduction
2015 Water Use, by Business Segment
in million cubic meters
water, and acknowledges that our actions can of approximately 7.2 percent compared to our
Places impact water quality and quantity. Water scarcity 2010 baseline volume. Although we missed our
Environmental Responsibility is a concern in many areas of the world where we Healthy Future 2015 goal to achieve a 10 percent
Product Stewardship operate, including India, China, Mexico, Thailand and absolute reduction in water use by 2015, with
parts of Europe and the U.S. Using the methodology 3.2 Asia-Pacific
Our Ingredients our 2010 consumption as a baseline, compared 4.2 Consumer
& Raw Mateirals developed by the World Resources Institute (WRI) to our performance in 2013 and 2014 we made EMEA
Medical Devices
Sourcing of Materials to predict water-stressed or water-scarce areas significant advancement in water reduction in North America
Climate in 2025, we have evaluated our site locations for 2015. Over the five-year goal period, water use
Pharmaceuticals
exposure to water stresses/scarcity. EN9 Site- decreased in the Pharmaceutical and Medical
Latin America
Non-Operating
Water
specific risk assessments will be conducted as part Devices segments, but increased in the Consumer
Waste
Co
of our 2020 goals. 3.6
ns
segment. Regionally, water use increased in Asia-
um
0.1
Our Citizenship & Sustainability 2020 water
er M
ed
Practices Pacific and decreased in EMEA and the Americas. ica
goal is to conduct a comprehensive water-risk
lD
Water use increases are mainly driven by higher
Ph
Percentage of Water Consumption Anticipated
ev ar
assessment at 100 orpercent of our
by manufacturing/
ice m
to be in Water-Stressed Scarce Areas
production volumes. Reductions can be attributed
s ac No
2025
eu
tic n-
to site-specific water conservation measures or to Percent of
als Op
Percentage of Water Consumption
er Water Sources
energy efficiency projects that have related water
at
Total Water Used
Anticipated to Be in Water-Stressed or
in
g
Scarce Areas by 2025 savings benefits. Municipal 76.74
No Data Water use in 2015 by region and by business
Groundwater 21.92
segment is shown in the pie charts on the right.
6% 9% Extreme
Extreme Scarcity
Abundant
Scarcity Recycling water is another way to reduce Rainwater 0.52
19% 15%
Scarcity
ScarcitySufficient demand on limited water resources. In 2015, we
Gray Water 0.67
Stressed reused 0.75 million cubic meters of recycled water,
Stressed
meeting approximately 6.7 percent of our total Surface Water 0.10
Stressed
Sufficient
Sufficient water demand, similar to our use in 2014.
Other 0.04
Abundant
Abundant
Scarcity
Our water sources remain unchanged and are
20%
No Data
shown at right. EN8
31% No Data
Extreme Scarcity
33. Baseline and performance has been adjusted to reflect
2025 Synthes and other acquisitions.
to be in Water-Stressed or Scarce Areas by
Percentage of Water Consumption Anticipated

2015 Citizenship & Sustainability Report 53


Water Conservation Efforts Continue
Participation in CDP Water Programs
Each of our facilities has a role to play in meeting our water use reduction goals.
Johnson&Johnson has been a participant in Examples of water conservation efforts are highlighted below:
Carbon Disclosure Project (CDP) Water program
since its inception in 2010. Additional information Site Project
on our water use and risks can be found in our
CDP Water submission at www.cdproject.net.
Johnson&Johnson Toiletries Water Re-utilization System (reuse of reject reverse osmosis
Our CDP 2015 water score was rated B; the
Consumer, Brazil water).
average healthcare sector score was a B , as
was the average for all companies who provided
information. Janssen Belgium Increase the application of gray water on the Beerse site by using soil
(Beerse) water as source for the reverse osmosis water.
Water Discharge
Contents
In 2015, our water discharge volume was approx- Janssen Belgium (Geel) Reuse of effluent water for polymer lime dosing formulation.
People imately 8.22 million cubic meters, discharged as
shown in the chart below.
Places Installation of optimized washing unit for cleaning activities, resulting in
Discharges are monitored, as required, to
Vistakon Ireland reduced water use.
Environmental Responsibility demonstrate compliance with the applicable water
Reuse of reject reverse osmosis water.
Product Stewardship quality standards. In 2015, we discharged a total
Our Ingredients of 12.9 metric tons of biological oxygen demand
& Raw Mateirals (BOD-5) and 78.5 metric tons of chemical Replacement of old equipment with newer, higher efficient models to
Ethicon Mexico
oxygen demand (COD), essentially unchanged reduce water use (and natural gas).
Sourcing of Materials
Climate since 2014. EN22
Water
Our Worldwide EHS&S Standard for water Implementation of automation in a washing station, resulting in reduced
J&J Medical Brazil
and wastewater management (Standard) requires water use.
Waste
that facilities comply with either the local treatment
standards or the Standards, whichever is more
Practices stringent, and sets forth clear responsibilities for Janssen Mexico
Improvements in the wastewater treatment process to allow for reuse of
treated wastewater.
addressing water conservation, drinking water
supply management and storm water manage-
ment. Manufacturing and R&D sites conduct water
inventories and review wastewater sources annually, to identify opportunities to decrease the U.S., Europe and other parts of the world.
wastewater generation and/or contaminants. In 2015, Johnson&Johnson, other
Global Water Discharge 2015 pharmaceutical companies and the
in million cu meters Pharmaceuticals in the Environment European-based Inter-Association Initiative
Cubic Meters on Pharmaceuticals in the Environment (IAI
Pharmaceutical residues in the environment (PIE) PIE)consisting of the Association of the
Ocean 0.08
are found in water bodies and some soils and European Self-Medication Industry (AESGP),
Wastewater Treatment Plant 5.83 sediments, primarily as the result of excretion the European Federation of Pharmaceutical
Surface 1.92 of medicines by humans and livestock. Some Industries and Associations (EFPIA), and
pharmaceuticals survive conventional industrial Medicines for Europelaunched the Eco-
Irrigation 0.20
and municipal wastewater treatment processes; Pharmaco-Stewardship (ESP) framework
Other Body 0.18 because of this, regulations to limit levels of to address PIE. This framework is designed
Total 8.22 pharmaceuticals in water are being considered in to 1) develop new science and models

2015 Citizenship & Sustainability Report 54


that will enable focused environmental testing system, and often our wastewater is treated
of pharmaceuticals and early identification of by both types of systems. We evaluate our
pharmaceutical substance properties and the pharmaceutical manufacturing wastewaters for
associated environmental risk potential through pharmaceutical residues and potential toxicity to
a four-year, 10 million euro research project; aquatic species, and, if needed, action is taken to
2) evaluate and control manufacturing facility reduce concentrations to acceptable levels.
wastewater discharges, including those in the To support the evaluation and control of
external supply chain; and 3) develop an extended manufacturing facility wastewater discharges, we
environmental risk assessment process for are sharing best practices with our manufacturing
pharmaceuticals introduced prior to 2006 when partners. Additionally, working with other
the existing risk assessment process for PIE went pharmaceutical companies, at the end of 2015
into effect. For more information on this effort, visit we published previously unpublished ecotoxicity
the EFPIA website. data for over 100 pharmaceutical compounds,
Contents To develop new science and continue to and Johnson&Johnson has added additional
increase understanding of PIE risks, we continue to: compounds to this list. This information is now
People available through the Temple University Water
 onduct Environmental Risk Assessments for
C
and Environmental Technology Center to center
Places all new drug compounds;
members and to regulators upon request. We also
Environmental Responsibility  ollect environmental impact data for all
C shared our wastewater effluent maturity ladder
Product Stewardship major pharmaceutical products, including a with the Pharmaceutical Supply Chain initiative
Our Ingredients prioritized list of legacy (i.e., approved prior to and suppliers.
& Raw Mateirals 2006) products;
Sourcing of Materials  artner with a wide range of stakeholder
P
Climate groups that share our commitment to sound
Water science and effective actions to gain a better
Waste understanding of this issue; and
 ork closely with regulatory agencies
W
Practices to ensure that the potential impacts of
pharmaceuticals on human health and on
the aquatic environment are understood and
minimized.

We continue to implement our internal PIE


strategic plan that will guide our efforts through
2020, including development of predicted no
effect levels for pharmaceuticals and identification
of adjustments to cleaning practices at our
manufacturing sites to avoid discharging active
pharmaceutical ingredients to our wastewater
treatment systems. We will also continue our work
on monitoring and improving our wastewater
treatment. Our wastewater is treated before
discharge by either a company-owned system
or an off-site municipal wastewater treatment

2015 Citizenship & Sustainability Report 55


Reduce.
In many parts of the world where people

Waste 34
lack regular access to food, there are still
problems with the amount of food that
At our facility in Baddi, India, is wasted each day. Employees at our
employees worked with our suppliers Mulund, India facility took action to make
sure their site, where over 1,100 people
to replace one-time use corrugated
work each day, did not add to that problem.
box packaging with reusable crates,
In the last quarter of 2015, food waste
significantly reducing the use of generation was reduced by 66 percent,
one-time use corrugated boxes. from approximately 900 kg per month

Reuse.
to just over 300 kg per month. Any food

Contents As the world population wastes that are generated are converted
into compost that is used as a fertilizer at

People
exceeds seven billion And at our facility in the state of the site, eliminating the need for off-site
Selangor, Malaysia, finished goods disposal.

Places
and finite nonrenewable not meeting our quality standards
Environmental Responsibility resources are becoming had always been landfilled. Through a
Product Stewardship partnership with the local government
Our Ingredients harder to obtain, finding and a waste contractor, the off-
& Raw Mateirals
Sourcing of Materials
ways to use materials spec products are now collected,
segregated and combined with other
Climate
Water
more efficiently or to turn industrial wastes to make fuel bricks,
Waste wastes into raw materials used as an energy source.

Practices is becoming a necessity.


Waste Management 35 on-site in any way. We have focused on total
waste, rather than on separated waste types, in
Our Healthy Future 2015 goal was to achieve a 10
order to support our companies efforts to apply
percent absolute reduction in total waste disposed
their waste reduction efforts strategically, relative to
off-site from manufacturing and R&D locations
their own operations.
using 2010 total off-site waste disposal as a
Our total waste disposed off-site in 2015
baseline. Total waste includes both hazardous and
was 80.0 million kilograms, a decrease of 2.9
non-hazardous waste and excludes waste that is
percent compared to our 2010 baseline of 82.4
recycled or reused, or disposed/treated
million kilograms. Over the last year, the greatest
35. For 2015, waste data for new acquisitions has been added reductions were realized in the Consumer segment
to the 2010 baseline (Synthes, Calibra, Guangzhou Bioseal) and in the EMEA region.
34. Includes data from all manufacturing and R&D locations. for the purpose of calculating goal achievement, but does
Over the five-year goal period, the greatest
For information on how data from acquisitions and divestitures not represent actual waste generated in 2010. Ortho Clinical
are managed, please see the Report Profile section of this Diagnostics is not included, except for Huntington Valley (part reduction was in our Consumer segment, while
report. Exceptions will be noted in the relevant sections of Janssen from 2014). Cordis is included since divestiture only regionally we saw a decrease in waste in the Asia-
in which they occur. Data have been adjusted to reflect completed in October 2015; Cordis, Juarez Salvacar, is also
Pacific region (in part due to the implementation
divestitures. continuing and reported with Biosense, Juarez, in 2015.

2015 Citizenship & Sustainability Report 56


Notable Waste Reduction Projects, 2015
Site Project

Janssen Belgium (Geel) Increased waste recycling by adding additional solvent distillation.

Improved wastewater treatment processes, allowing for treatment of wastewater


Janssen Belgium (Beerse)
stream previously sent for incineration.

Modified wastewater treatment system processes, resulting in a reduction of


Consumer, L.A.
hazardous waste generated by this system.

Implemented beneficial use of previously disposed waste stream; replaced use of


hazardous material with non-hazardous alternative.
Mentor Irving, Calif.
Reduced the amount of cleaning solvent by implementation of dry cleaning with
of on-site wastewater treatment capability), and carbon dioxide.
Contents an increase in EMEA, mainly due to an increase in
production. Noramco Wilmington, Del. Implemented recycling for previously disposed waste stream.
People
Waste Generation36 EN23
Places Waste Disposed, by Region, 2015 Hazardous Waste Disposed, 2015
Environmental Responsibility In 2015, our hazardous waste generation in million kg in thousand kg
On-Site Off-Site
Product Stewardship decreased by 4.0 percent from 2014 (from
Asia-Pacific 5.3 Recycled 2,693 17,890
Our Ingredients
58.08 million kg to 55.77 million kg), and our
& Raw Mateirals non-hazardous waste generation decreased EMEA 39.9 Reused 147 326
Sourcing of Materials by 1.7 percent versus 2014 (from 117.88 million
North America 30.2 Landfilled 0 3,732
Climate
kg to 115.90 million kg). Total waste generation
decreased 2.4 percent from 2014 (175.95 million Latin America 4.6 Incinerated 0 6,590
Water
kg to 171.67 million kg). While we do
Waste Energy Recovery 0 20,206
ship wastes between countries, we currently
Waste Disposed, by Segment, 2015
have no mechanism to track the volumes of in million kg Biological/
Practices 0 3,030
these shipments at the enterprise level. EN25 Chemical Treatment
Notably, over half of the waste generated by Consumer 27.2
Other 0 24
Johnson & Johnson is reused or recycled. Medical Devices 16.9
EN23

Environmental Remediation Pharmaceutical 35.0 Non-Hazardous Waste Disposed, 2015


in thousand kg
Non-Operating 0.9 On-Site Off-Site

Johnson&Johnson is remediating contamination Recycled 0 60,621


at 21 current or former facilities. In 2015, we spent
Total Waste Generated, 20112015 Reused 779 9,101
$6.5 million remediating these facilities.
in million kg
Landfilled 0 14,906
2011 154.9
Incinerated 65 3,139
2012 157.3
Energy Recovery 25 19,442
2013 168.5
Biological/Chemical
2014 176.0 32 7,751
Treatment

36. Synthes, Calibra, Guangzhou Bioseal data are included from 2015 171.7 Other 0 36
2013.

2015 Citizenship & Sustainability Report 57


Contents
Table of Contents
People
People
Places
Places
Practices
Governance Labor Practices
Practices
& Ethical & Workforce
Performance
Governance andEmployee
Ethical
Performance
Supply Chain Recruitment,
Safety Development
Supply&Chain
Quality
ofCompliance
Products & Retention
Customer Workplace
Procurement andHealth
Supplier
& Safety
Relationship
Management
Management Health-Conscious,
Human Rights Safe Employees
Supply
Chain
LaborRisk
Practices Employee
Management Diversity & Inclusion
Employees
Compliance Transparency
Stakeholder Engagement
Procurement Stakeholder
&Financial
Supplier and Economic
Engagement
Performance
Management
Financial
Human Rights Performance

Practices
Well team up with partners and
employees to further advance our
culture of health and well-being.
2015 Citizenship & Sustainability Report 58
Governance &
Our governance structure also includes
Corporate Internal Audit; an independent auditor,
PricewaterhouseCoopers, LLP; the Audit

Ethical Performance Committee of our Board of Directors; and regular


review of business results by our Executive
Committee.
Further details are provided on www.jnj.com
under Our Company, as well as on our Investor
Relations and Citizenship & Sustainability websites.

Communication with Our Board


G4-37, 49-50

Contents
Johnson&Johnson has Directors and various committees of the Board are
available on the Corporate Governance section of Shareholders, employees and others may contact
well-established governance our website. G4-34, G4-38, G4-39 the Board or any of our Directors (including
People
structures and accountability In 2015, Johnson&Johnson created a new the Lead Director) by writing to them c/o
office of Worldwide Corporate Governance that Johnson&Johnson, One Johnson&Johnson
Places measures to ensure responsible will partner with the Environment, Health, Safety Plaza, Room WH 2136, New Brunswick, NJ 08933
Practices performance that furthers our & Sustainability (EHS&S) and Citizenship teams to or via email at LeadDirector@its.jnj.com, or by using
measure progress against the completion of our the online submission form. General comments to
Governance Labor Practices purpose and aims with regard to Healthy Future 2015 goals and introduce our next the Company (including complaints or questions
& Ethical & Workforce
Performance
Employee
economic, social, environmental set of five-year goals. In addition, in early 2016 about a product) should be sent via the Contact Us
a Johnson&Johnson Enterprise Governance form on our website.
Supply Chain Recruitment,
and governance dimensions Council (EGC) was established, comprised of
Quality & Safety Development Johnson&Johnson holds its annual meeting
of Products & Retention
of our citizenship and a community of enterprise experts who will of shareholders each year on the fourth Thursday
Customer Workplace work cross-functionally to drive alignment and of April. A notice of annual meeting and Proxy
Relationship Health & Safety sustainability. coordination of external engagement efforts related statement are mailed or delivered electronically to
Management Health-Conscious, to key environment, social and governance issues
Safe Employees shareholders in mid-March. The Proxy Statement
Supply affecting the Company. The Council will also help
Chain Risk Employee and the Companys Annual Report are available on
Management Diversity & Inclusion Our Board of Directors, our highest governance lead the effective delivery of our Citizenship & the Companys Investor Relations website.
Compliance Transparency body, is a diverse group of individuals who are Sustainability 2020 Goals. Advance notice is required of shareholder
Procurement Stakeholder elected by our shareholders each year. Among the We will continue to have a Citizenship & proposals and other items of business. Under the
& Supplier Engagement six standing committees of the Board of Directors, Sustainability Working Group, with representatives terms of the Companys By-Laws, a shareholder
Management from across the enterprise representing various
Financial the Regulatory, Compliance & Government who intends to present an item of business (other
Human Rights Performance Affairs Committee and the Science, Technology divisions and disciplines that accomplish the work than a proposal submitted for inclusion in the
& Sustainability Committeeeach composed of in support of practices on environment, health, Companys Proxy materials) must provide written
non-employee (independent) directorsshare safety, citizenship and sustainability. notice of such business to the Company. This
responsibility for oversight of topics related to The Citizenship & Sustainability Working Group advance notice and associated deadlines are
Citizenship & Sustainability, including regulatory, has tracked performance and progress against outlined in the Companys Proxy Statement.
compliance, quality and governmental matters, our Healthy Future 2015 goals, assisted in the Topics related to economic, environmental
and policies, programs and practices on development and execution of our last materiality and social performance that were raised through
environment, health, safety and sustainability. These assessment, and assists in other Citizenship the 2015 reporting period included shareholder
committees advise and, as appropriate, make & Sustainability strategic efforts such as the proposals seeking a policy for share repurchase
recommendations to the Board on issues for which development of our next set of five-year goals. preference, an independent Board Chairman, report
they are responsible. Details about our Board of G4-35-36 on lobbying disclosure and take-back programs

2015 Citizenship & Sustainability Report 59


for unused medicines. These proposals and the Anti-Corruption Johnson&Johnson operating companies met the
Boards statements in opposition are presented in training goal (as captured in our metrics manage-
the Companys Notice of Annual Meeting and Proxy The Law Department and the Johnson&Johnson ment tool), with training completed for more than
Statement of March 16, 2016, available online. The Office of Health Care Compliance & Privacy 101,974 applicable employees worldwide. SO4
majority of votes cast by shareholders were against (HCC&P) are responsible for setting enterprise-wide Adherence is verified through ongoing
the adoption of these proposals, as announced at standards with respect to anti-corruption laws and independent audits and operations testing
the Companys Annual Meeting on April 28, 2016. interactions with healthcare professionals. conducted by Internal Audit and HCC&P.
The Finance organization is responsible for Information on reviews is part of regular updates
assuring appropriate accounting controls at all to the Regulatory, Compliance & Government
Ethical Performance levels of the organization that ensure accuracy Affairs Committee of the Board of Directors.
over financial reporting, including the investigation Where process reviews identify questionable
The Johnson&Johnson Family of Companies has of potential fraudulent financial activity or results. activities, these issues are escalated to an internal
the privilege of doing business in many countries The organization is also responsible for evaluating, Triage Committee and for-cause investigations
Contents and regions around the world. In every single loca- testing and monitoring accounting control systems commence.
tion, employees at every level have the responsibility on an ongoing basis to be reasonably assured that Many incidents and allegations are subject
People to know and follow laws and regulations that apply the controls in place continue to be appropriate and to confidentiality, legal, privacy or other similar
to our business. function properly. Part of this evaluation includes restrictions and, therefore, are not publicly
Places While compliance with laws and regulations is documenting all the steps taken to evaluate and disclosed. However, this information is reported
mandatory, it also shows our commitment to being monitor controls, as well as documenting existing externally in our public filings if it meets the criteria
Practices a responsible corporate citizen and demonstrates accounting and internal control systems and for requiring public disclosure. SO5
Governance Labor Practices care about and respect for all those we serve and procedures.
& Ethical & Workforce who do business with us. In addition, noncompli- Internal Audit conducted 195 financial control Ethical Marketing
Performance ance with laws and regulations can result in civil
Employee audits at operating companies in 2015. In addition,
Supply Chain Recruitment, and criminal fines and penalties, imprisonment and Internal Audit and HCC&P conducted 84 and The Company is committed to marketing all
Quality & Safety Development other commercial or personal disciplinary actions.
of Products & Retention 76 audits, respectively, for compliance with our products responsibly to honor the trust that
Workplace
Our Company has comprehensive policies, Foreign Corrupt Practices Act and Healthcare consumers place in us in choosing our products
Customer
Health & Safety procedures and required training that help em- Compliance controls. Generally speaking, all and to ensure efficient markets. See the Ethical
Relationship
Management Health-Conscious, ployees comply with laws and regulations. The operating companies are audited on either a Marketing section of our Citizenship & Sustainability
Supply Safe Employees Johnson&Johnson Law, Health Care Compliance three- or five-year cycle, depending on the risk website for more information. Lawsuits, claims
Chain Risk Employee & Privacy, Quality & Compliance, Human Resources profile of the particular operating company. In regarding commercial and other matters,
Management Diversity & Inclusion and Finance departments are available to help all addition, HCC&P conducts additional monitoring governmental investigations, and other legal
Compliance Transparency employees navigate the laws and regulations that and testing operations at our operating companies proceedings arise from time to time in the ordinary
Procurement Stakeholder impact our work. for compliance with our healthcare policies on a course of business. Legal proceedings that involve
& Supplier Engagement In 2015, the Johnson&Johnson Code of
Management regular basis, with the scope and frequency of such Johnson&Johnson and its subsidiaries and meet
Financial Business Conduct, previously known as the
Human Rights Performance monitoring being dependent on the local operating criteria for requiring public disclosure are reported
Johnson&Johnson Policy on Business Conduct, company requirements and local conditions. SO3 externally in our public filings, available on our
was modernized and renamed to advance a cul- Our policies require anti-corruption training for Investor Relations website. SO7
ture of accountability in an increasingly complex those employees with job responsibilities that are
business environment, and with availability in 25 relevant to such training, with a significant emphasis
languages, to better reflect the needs of our global, placed on the training requirement to ensure com-
diverse workforce. pletion by the applicable employees. The training
Additional details concerning policies and covers all aspects of the Health Care Business
procedures that define what we expect of our peo- Integrity Guide (HCBIG), including charitable con-
ple and our business partners throughout the world tributions, donations, third-party intermediary (e.g.,
are provided on our Citizenship & Sustainability distributors) and cross-border interactions, all of
website. G4-56-58 which are deemed as high-risk activities. In 2015,

2015 Citizenship & Sustainability Report 60


Supply Chain

Contents The Customer is at the


People center of everything
Places
we do in Supply Chain.
Johnson & Johnson Supply
Practices
Governance Labor Practices
Chain plays a critical role
& Ethical
Performance
& Workforce in helping patients and
Employee
Supply Chain Recruitment, consumers around the
Quality & Safety Development
of Products & Retention world live longer, healthier
Workplace
Customer
Relationship Health & Safety and happier lives.
Management Health-Conscious,
Safely producing and delivering a reliable supply
Supply Safe Employees
of products to meet changing customer needs
Chain Risk Employee
Management Diversity & Inclusion around the world takes coordination on a
Compliance Transparency grand scale. Our Johnson&Johnson Supply
Procurement Stakeholder Chain is responsible for making products at
& Supplier Engagement our own Johnson&Johnson facilities and
Management through hundreds of external partners. The
Financial
Human Rights Performance Johnson&Johnson Supply Chain takes an
end-to-end view starting with a close collaboration
with Research & Development and Commercial distributors and wholesalers to reach people customers through a customer relationship survey
colleagues to safely and efficiently plan, source, around the world. Our top priority is to ensure program on page 63.
make and deliver a high-quality, reliable supply our products are of high quality and available Johnson&Johnson Supply Chain provides
of all of the products in the Johnson&Johnson when needed. Read about Quality and Safety of oversight and monitoring for key elements of
portfolio. Our end-to-end supply chain exists to Products in the next section of this report. our Enterprise Risk Management framework;
serve the customer. From the first mile to the last, hundreds of Environment, Health, Safety & Sustainability
Our first responsibility has been and continues customer service and distribution centers unite (EHS&S); Quality & Compliance; and operational
to be to meet customer needs, every day. We to deliver a positive customer experience. Read and strategic supply chain risk, as discussed on
work with hospitals, pharmacies, retailers, more about how we track performance with our page 65.

2015 Citizenship & Sustainability Report 61



Quality & Safety


of Products

Contents In keeping with


People
Our Credo commitment
that everything we do
Places
must be of high quality,
Practices Johnson&Johnson
Governance Labor Practices
& Ethical & Workforce continues to take steps
Performance
Supply Chain
Employee
Recruitment, to ensure consistent and
Quality & Safety Development
of Products & Retention sustained high quality, safe
Customer
Relationship
Workplace
Health & Safety
and effective products
Management Health-Conscious,
Safe Employees
that allow us to fulfill our
Supply
Chain Risk Employee greatest role: helping F A C I L I T Y R E S U M E S P R O D U C T I O N Rebuilt over nearly five years into a state-of-the-art manufacturing
facility, McNeil Consumer Healthcare (McNeil) Fort Washington, Pennsylvania, resumed commercial
Management Diversity & Inclusion
Compliance Transparency people live longer, production in 2015. Manufacturing activities are supported by quality assurance, research and
development, engineering, maintenance and warehouse functions. McNeil is the worlds largest over-the-
Procurement
& Supplier
Stakeholder
Engagement
healthier, happier lives. counter drug company.
Management
Financial
Human Rights Performance We use various toolsincluding the change control, deviations, corrective action/ that the particular Johnson&Johnson company
Johnson&Johnson Quality Policy, Quality preventive action (CAPA), risk management, investigate to determine if there is any impact
Management Framework, and Quality Policy escalation and accountability, resulting in a system to the quality of any product. Furthermore, they
Standardsthat outline the requirements our of continuous improvement. Our independent, require the company to document the root cause,
operating companies across Johnson&Johnson internal audits (conducted on a regular cycle) implement corrective actions and monitor for
must achieve to design, make and deliver our are designed to determine whether individual effectiveness (as well as report and take action
products. These tools cascade down to more companies conform to Johnson&Johnson as required where there is an impact to product
detailed technical documents and procedures Quality Policy Standards and health authority in the field).
that shape our business segments (Consumer, requirements. When one of these audits, a In accordance with the Johnson&Johnson
Pharmaceutical and Medical Devices) quality regulatory agency inspection, routine quality Quality Policy, each Johnson&Johnson company
systems and require each operating company to testing or an employee identifies a potential is required to establish a system that includes
have processes that include monitoring, trending, quality issue, our Quality Policy Standards require the monitoring of trends and the establishment of

2015 Citizenship & Sustainability Report 62


triggers to allow escalation of significant quality are setting new benchmarks for medical safety McNeil Consumer Healthcare
issues. Escalated issues are similarly investigated, and have implemented a consistent global Update and Status of Goals
documented, corrected and monitored until approach for monitoring the use of in-market
resolved. In all matters of quality and regulatory products.
Under Consent Decree
compliance escalation, the decision-making line is In 2015, we did not experience any
to the Quality & Compliance organization. substantive regulatory actions for non-
An independent internal audit program compliances with regulations and voluntary
Nearly all over-the-counter (OTC)
assesses whether Johnson&Johnson sites codes concerning the health and safety impacts products were returned to shelves by the
comply with health authority regulations and with of products. The monetary value of any fines or end of 2015, with additional sizes and
our own quality standards. Any findings made by penalties assessed for non-compliance with laws flavors to be introduced during 2016.
the audit team are required to be remediated, and and regulations concerning the provision and use
such remediations are tracked until complete. of products and services was determined not to FDA notification was received that
The program operates on a three-year cycle. be significant. PR2, PR4, PR9 our U.S. OTC manufacturing facilities
Contents Audits of some companies may be more frequent, Since 2013, Johnson&Johnson has in Lancaster, Pennsylvania; Fort
if necessary to follow up on the remediation of embarked on a number of programs designed
People Washington, Pennsylvania; and Las
previous audit findings. Findings are classified, specifically to reduce supply chain related recalls
Piedras, Puerto Rico, are in conformity.
action plans are created, and follow up and that could impact product availability to our
Places customers. These programs, on an annual basis, Fort Washington resumed commercial
reporting continues until gaps are fully closed.
have demonstrated a measurable reduction production in September 2015.
Independent Quality Review Boards (QRBs)
Practices in interruptions. Additionally, our quality metric
are used within each business unit to make
Governance Labor Practices
decisions with respect to concerns that may arise programs and proactive compliance programs No independent third-party is needed
& Ethical & Workforce
Performance regarding the quality of product that has been have resulted in more than two thirds of our for day-to-day oversight at any of these
Employee regulatory health inspections concluding with no
Supply Chain Recruitment, released to the market. The Quality Standard facilities, but an independent third-party
that harmonized this process across the deficiencies being noted. will reassess the sites at various times
Quality & Safety Development
& Retention We continually explore new ways to foster our
of Products enterprise empowers the right quality, medical during the next several years.
Customer Workplace and regulatory colleagues to make our most proactive quality culture and use our expertise
Relationship Health & Safety to engage in leadership roles with external
important decisions about product in the market,
Management Health-Conscious, stakeholders to influence and shape regulations,
Safe Employees independent of commercial considerations.
Supply ensuring the Company continues to deliver safe
Chain Risk Employee Each of our businesses has the accountability to
ensure that both resources and systems are in and effective products to improve the lives of
Management Diversity & Inclusion
place to identify and escalate any quality issues, our patients and customers. In one example,
Compliance Transparency
make informed and timely decisions, and take Johnson&Johnson has been working proactively
Procurement Stakeholder
& Supplier Engagement the necessary actions whenever requiredwhile with the U.S. Food and Drug Administration (FDA) for Quality Metrics. Johnson & Johnson again
Management
Financial always keeping the safety and well-being of and other industry representatives as the FDA participated in a pilot program to both help gain
Human Rights Performance patients and consumers as our primary focus. explores innovative ways to use quality experience with the FDA proposal and respond to
As a result of these efforts, metrics for routine surveillance of prescription the FDA with data-driven comments to the Draft
Johnson&Johnson has achieved an integrated and non-prescription drug facilities and products Guidance. Quality Metrics is an evolving topic. We
and proactive approach to quality and continuous across the entire supply chain. In 2014, will continue to develop our internal processes
improvement. For the benefit of our customers, Johnson&Johnson conducted a large internal in preparation for new expectations and work
we actively strive for continuous improvements pilot collecting quality metrics data from 11 actively with external stakeholders to develop best
in all aspects of quality and safety throughout all Johnson & Johnson sites. The learnings from this practices in collecting quality data and calculating
phases of product life cycles. Health and safety internal pilot were shared with FDA leaders to help Quality Metrics.
impacts are assessed for all our significant product them understand the strengths and weaknesses
categories in each business segment throughout of their proposed program. Subsequently, the FDA
the world. PR1 In addition, Chief Medical Officers published a draft guidance to industry, Request

2015 Citizenship & Sustainability Report 63


Customer
reaches 26 countries on an annual basis. The
Customer Experience Survey employs a data
gathering approach specifically designed to drive The Three Es of
Relationship identification of insights and ability to action plan
at three levels: enterprise, functional and local. In
Customer Experience

Management 2014, the interview instrument was modified to


reduce the number of attributes from 16 to 14. Effectiveness
Emotion
Findings focus on three key areas:
G4-PR5
 upply Chain Partner Performance (supply
S

Ease
chain index score calculated using importance
times performance against 14 key attributes of
a world-class supply chain partner);
Contents While patients and consumers  ey Capabilities Needed (from identified
K
are our customers, the majority themes);
People
of our business is based  ealth of the Customer Relationship (future
H
intent data).
Places upon our relationships with
Practices retailers and healthcare The customer supply chain index is a key Customer Effort Score. Additionally, the 2016
performance metric for the JJSC. Results are goals for improvement are focused on closing
Governance Labor Practices channels in order to reach shared with the JJSC leadership team and as part competitive gaps in critical customer areas.
& Ethical & Workforce
Performance Employee people who ultimately benefit of regular engagements with business stakeholders, The Customer Experience Survey is just one
Supply Chain Recruitment, including commercial organization leadership supply chain initiative to improve the customer
Quality & Safety Development
from our products and services and supply chain leaders within each business experience and to create joint value between the
& Retention
of Products
Workplace
across all business segments. segment. Information is shared broadly to increase Company and our key customers. Other efforts
Customer action on the big company-wide initiatives and include advancing customer collaboration models,
Relationship Health & Safety Research among commercial customers shows
more local or regional actions based upon findings executing a global customer service strategy and
Management Health-Conscious, there is strong loyalty to Johnson&Johnson
Safe Employees in given markets, with certain products, or certain developing an e-commerce strategy. Ultimately,
Supply brands and that strong loyalty is vital to continuing
Chain Risk Employee customer channels. Over 400 global, regional and everything we do should be designed to enhance
Management
to meet Our Credo responsibility to doctors, the customer experience.
Diversity & Inclusion local action plans were completed to address
nurses and patients, to mothers and fathers and Consumer and patient satisfaction are
Compliance Transparency customer feedback in 2015, allowing us to achieve
all others who use our products and services. assessed on an ongoing basis by our business
Procurement Stakeholder improvement in our Supply Chain Index score (61
& Supplier Engagement Johnson&Johnson Supply Chain (JJSC) has units and business segments. Our operating
percent in 2014 to 63 percent in 2015). However,
Management
Financial developed a global, enterprise-wide capability to companies employ a variety of mechanisms to
our competitive environment is very dynamic, and
Human Rights Performance collect direct commercial customer feedback on measure consumer and patient satisfaction,
we have observed top competitors accelerating
a regular basis that evaluates our supply chain including surveys, website interactions, focus
their pace of innovation and performance. We are
performance and provides actionable insights to groups and patient advisory groups. These
focusing our efforts on the top areas of opportunity
build trust, loyalty and mutual value. customer satisfaction measures, as collected by
identified by our customers to ensure we continue
A customer experience metric was added our business units, are not shared externally for
to meet their needs.
to the JJSC enterprise-level dashboard in competitive reasons.
In 2016, the global Supply Chain organization
2012. Enterprise-wide metrics have been
will continue to mature and expand customer
established and are monitored to measure
metrics. We will focus on the 3-Es of Customer
commercial effectiveness. Following an initial
Experience: Effectiveness as measured by Supply
pilot in 2012, these metrics are assessed in
Chain Index, Emotion as measured by the Net
our Customer Experience Survey Program that
Promoter Score and Ease as measured by the

2015 Citizenship & Sustainability Report 64


Supply Chain
Risk Management

Contents Johnson&Johnson Supply Before Johnson&Johnson took an enterprise Johnson&Johnson must understand and
approach to our supply chain operating model, manage the risks faced across our entire
Chain provides oversight and supply chain risk management activities were organization. Risks are inherent in our business
People
monitoring for key elements focused on business continuity planning (BCP). activities and can relate to strategic threats,
BCP focused on disaster recovery at individual operational issues, compliance with laws and
Places of our Enterprise Risk sites, utilization of resources within individual regulations, and reporting obligations.
Practices
Management Framework; operating units, and development of recovery Our Enterprise Risk Management Framework
plans and post-event actions. While BCP was provides an overview of our enterprise-wide
Governance Labor Practices Environment, Health, Safety
effective at helping our business manage through approach to risk management and illustrates
& Ethical
Performance
& Workforce
& Sustainability (EHS&S); events, it did not drive systematic and proactive examples of how this approach is implemented
Employee
Supply Chain Recruitment, Quality & Compliance, and assessment of risk across our supply chain. within the organization. Johnson&Johnson
Quality & Safety Development That is why, in 2010, we developed a best- business leaders are accountable for managing
of Products & Retention operational and strategic supply in-class standard, our proactive supply chain risks affecting their business. As appropriate,
Customer Workplace
Health & Safety
chain risk. Our comprehensive risk management (SCRM) program, to identify, issues are escalated to their respective Executive
Relationship prioritize and manage supply chain risks. Committee member or directly to the Regulatory,
Management Health-Conscious, programs cover compliance This approach prioritizes products based on, Compliance & Government Affairs Committee.
Safe Employees
Supply
Chain Risk Employee
(Johnson&Johnson Quality & first, patient/customer and Johnson&Johnson Our Board of Directors provides oversight of senior
Management Diversity & Inclusion Compliance, Supplier Quality, reputational impact, and secondarily, financial leaderships management of the various risks the
Compliance Transparency impact; considers the likelihood that risk will Company faces.
Procurement Stakeholder
EHS&S) and strategic and occur; and prompts preventive actions to increase
& Supplier
Management
Engagement operational risk. our level of preparedness. By using a standard
Financial approach across Johnson&Johnson, we can
Human Rights Performance compare supply chain risks across products, sites,
and suppliers and ensure mitigation resources are
used most effectively.
We recognize that execution of our SCRM
program is critical to remaining a reliable
supply chain and protecting customers, our
Johnson&Johnson trustmark and growth.
In order to deliver maximum value to our
consumers, patients, caregivers, employees,
communities and shareholders, we at

2015 Citizenship & Sustainability Report 65


Compliance

Our Code of Business develop strategy, oversee talent management and environmental, health, safety and sustainability non-
Contents execute governance. For more information on compliances. Our aim is to achieve zero accidental
Conduct requires that all our management approach, see Organizational releases, regulatory non-compliances and fines.
People employees comply with all Approach and Responsibility on our website, In 2015, we experienced 30 accidental re-
and the Environmental Responsibility section of leases and 77 environmental non-compliances,
Places
laws and regulations governing this report. and we paid a total of $3,800 in fines for violations
our Companys behavior. Beginning in 2014, we included several new related to hazardous waste, air and wastewater
Practices When this is not the case, information is reported EHS&S categories of non-compliance such as management. None of the accidental releases
Governance Labor Practices internally within the organization to senior non-compliances associated with fire codes, food were considered to be significant, as defined by
& Ethical & Workforce management and, as appropriate, also shared service, elevators and boilers. Now the areas being the GRI guidance. A total of 398 health and safety
Performance Employee managed and reported as part of our compliance non-compliances were also recorded, with over
with the Executive Committee, the Board of
Supply Chain Recruitment, program reflect a more inclusive and holistic view 69 percent of these occurring in the newly added
Directors and/or the external auditors. Many of
Quality & Safety Development of our operations, going beyond the traditionally categories. A total of $675 was paid for health and
of Products & Retention these issues are subject to confidentiality, legal,
privacy or other similar restrictions and, therefore, reported areas of EHS&S compliance. We also safety violations in 2015. EN24, EN29
Customer Workplace
Health & Safety are not publicly disclosed. When public disclosure increased the rigor of our reporting. These factors Visit our website for more information on our
Relationship
Management Health-Conscious, caused, in part, an increase in the number of approach to compliance.
criteria are met, anticompetitive behavior, antitrust
Supply Safe Employees
claims, product liability claims, and lawsuits
Chain Risk Employee that cover customer health and safety, labeling EHS&S Non-Compliances, Releases
Management Diversity & Inclusion
or marketing, as well as corrective actions and and Fines Paid 38 2011 2012 2013 2014 2015
Compliance Transparency
resulting fines and penalties, are outlined in our
Procurement Stakeholder Accidental Releases (Number of Events) 9 8 7 24 30
& Supplier Engagement 10-Q and 10-K filings. See Note 21 on page 64 of
Management our 2015 Annual Report. PR7, SO8 Environmental Non-Compliances
Financial 30 29 45 72 77
Human Rights (Number of Individual Findings)
Performance
Environment, Health, Safety &
Environmental Fines Paid (U.S. Dollars) $ 5,000 $ 3,500 0 $ 416,195 $ 3,800
Sustainability (EHS&S) Compliance37
Health & Safety Non-Compliances
Accountability for environmental, health, safety and Number of Individual Findings
9 6 7 192 398
sustainability performance is shared across the
enterprise. Our operating model uses geography Health & Safety Fines Paid (U.S. Dollars) $ 7,311 $ 648 $ 205,000 $ 7,488 $ 675
to leverage expert Environment, Health, Safety
and Sustainability (EHS&S) knowledge across our 37. For information on how data from acquisitions and divestitures are managed, please see the Report Profile section of this report.
Exceptions will be noted in the relevant sections in which they occur.
manufacturing, R&D, distribution and commercial
38. Includes data from all manufacturing, R&D, warehouse, distribution center and office buildings locations. Beginning in 2014,
operations, while continuing to leverage subject- we included several new EHS&S categories of non-compliance such as non-compliances associated with fire codes, food service,
matter technical experts across the enterprise, elevators and boilers.

2015 Citizenship & Sustainability Report 66


rt

in A
No

f ic
aci
Lat

EA
We made good progress

a-P
EM
Procurement

s
Procurement at a Glance on our

ic e
Asi

ra t e

l
D ev

t ic a
G4-12, EC9
Healthy Future 2015

rp o

ceu
& Supplier

ca
Co
goals to partner with suppliers

di

rma

r
me
Europe,

Me
who share our concern for the

Pha
Asia-Pacific Middle East,

n su
28.6%

Management
Africa
environment and for human rights,

Co
11.9%
creating an indirect extension of
our own actions
Spend by Latin
5.8% America
Region
98 percent of our strategic
suppliers, representing approximately
25 percent of spend, publicly reported at
Contents North 53.7% least two sustainability goals. (Target:
America 100 percent of strategic suppliers.)
People The strength of our Partial
Places Johnson&Johnson Achieved $1.39 billion in spend
procurement organization Medical
Devices 31.2% Corporate
with diverse suppliers.
Practices lies in its ability to effectively Exceeded
Governance Labor Practices 9.3%
& Ethical & Workforce connect the people, companies
Over 80 percent of all goods suppliers
Performance Employee and organizations necessary Spend
by Business in high-risk countries and any service
Supply Chain Recruitment,
Quality & Safety Development to make and deliver our Segment providers with greater than $250,000
& Retention in spend with operations in a high-
of Products
Workplace
products around the world.
Customer risk country confirm awareness of and

Nor
Health & Safety 29.3% 30.2%

Lati
Relationship conformance with the human rights

th A
Our reach is extensive with more than 80,000

EME
Management Health-Conscious, Consumer

n Am
provisions of our policies.39

Asia

mer
Supply Safe Employees suppliers and an annual procurement spend

A
Pharmaceutical (Target: 100 percent.)

eric

ica
-
Chain Risk Employee of more than $30 billion. This presents great

Pac
Partial

a
Management Diversity & Inclusion opportunities for us to work with a large network

if
ic
Cor
Compliance Transparency of partners to expand healthier practices that Suppliers assists suppliers in understanding our

Med
99.85 percent of Johnson & Johnson

pora
Procurement Stakeholder contribute to the improved health of people and

Pha
sustainability commitments and in improving their

ica
procurement and supply chain

Con
& Supplier Engagement

te
communities around the globe. It also presents a

rm
Management sustainability processes.

Dev
professionals and others in positions

ace
sum
Financial challenge to collaborate and impact such a sizable
Human Rights While we put great trust in our suppliers and

ic
Performance most sensitive to potential human rights

uti
er
and diverse supply chain in a meaningful way.

es
ask for maximum transparency, we also monitor

cal
In 2015, we implemented new procedures and infringement have received human rights
and measure their performance in many key
programs, and continued improving existing ones, training. (Target: 100 percent.)
areas. By the end of 2015, there were a number of
to address both our opportunities and challenges. notable and measurable advances and successes, Met
We look to partner with suppliers who are and the recognition that we and our suppliers still
transparent about their sustainability programs, have work to do (see sidebar). 39. Original Healthy Future 2015 goal stated that all
can assure us that they are sustainably producing To maintain momentum, in 2015 we suppliers in high-risk countries confirm awareness of and
the goods and/or services we are buying, and developed our Citizenship & Sustainability 2020 conformance with the human rights provisions of our
can verify the legal and regulatory compliance of Responsibility Standard for Suppliers, with high-risk countries
Goals, which will guide us as we collaborate with identified largely on assessments done by external groups,
their supply chain. Our Sustainability Toolkit for our suppliers to accelerate environmental and such as Transparency International.

2015 Citizenship & Sustainability Report 67


HR4-HR6
social improvements across the supply base. 800), Latin America (approximately 300) and
High-Risk Countries Considered by
The new five-year goals contain two key supplier- Independent Organizations40 to Be at EMEA (approximately 100). Regional leaders now
related targets. First, to more broadly expand Risk for Human Rights Violations oversee a standard outreach process to evaluate
our reach, we aim to enroll suppliers covering conformance to our human rights policies. Where
80 percent of the Companys spend in our Afghanistan Kenya clarity is needed to make a determination of
Sustainable Procurement Program. Our second Algeria Mexico possible risks, a third party has been engaged to
target is to consistently achieve benchmark Angola Montenegro investigate further. As a result of increasing the
spending with diverse suppliers in the U.S. and Azerbaijan Myanmar number of suppliers included in our reporting, our
small suppliers globally, while doubling our global Bangladesh Nigeria adherence rate decreased. In 2015, greater than 80
supplier diversity footprint. Belarus North Korea percent of suppliers identified in high-risk countries
Brazil Pakistan have been confirmed to conform to the human
Managing Procurement Risks Cambodia Palestinian Authority rights provisions. While our adherence level is lower,
Cameroon Panama our reach is broader and we believe our impact is
Contents Managing our supply base is a critical and greater as we strive for 100 percent compliance.
China Paraguay
complex undertaking. We use many tools Cuba Philippines
People to accomplish this task, starting with our Assessments and Audits
Democratic Republic Thailand
Procurement Sustainability Initiative (PSI). The PSI of Congo Turkmenistan
Places Guatemala
provides the foundation to guide our procurement Romania Assessments of new or existing suppliers are
professionals in their purchasing decisions and a India Russia centered around ethics, employee health and
Practices Indonesia
framework to provide guidance to influence our Serbia safety, and environmental protection elements
Governance Labor Practices Iran
& Ethical & Workforce
suppliers. Sudan and are prioritized mainly based on the supplier
Performance Internally, our Procurement team works Iraq Syria category. External manufacturing sites and active
Employee
Supply Chain closely with our Environment, Health, Safety Ivory Coast Ukraine pharmaceutical ingredients supplier sites are high
Recruitment,
& Sustainability (EHS&S) team to integrate our Jordan on the priority list and receive the most detailed,
Quality & Safety Development Uzbekistan
of Products & Retention processes and approach and to elevate our Lebanon Vietnam site-level assessments. Assessment of remaining
Customer Workplace employees awareness of the importance of Liberia Yemen suppliers is conducted initially at the corporate
Relationship Health & Safety Kazakhstan
managing our procurement risks. Zimbabwe level, and may be conducted for certain factors,
Management Health-Conscious,
Safe Employees Externally, expectations for human rights, with emphasis on all our strategic suppliers
Supply
Chain Risk Employee business ethics, labor practices, health and safety, and certain R&D and chemicals suppliers. Our
Management Diversity & Inclusion and environmental performance are established website for more information. assessment process is detailed in the Responsible
in our Responsibility Standards for Suppliers Our Healthy Future 2015 goals increased External Supply chart on the following page.
Compliance Transparency
and are applicable to all suppliers. For more our focus on human rights risks in high-risk The primary driver in determining the type and
Procurement Stakeholder
& Supplier Engagement information, see Supplier Standards. countries.40 All goods suppliers in high-risk frequency of assessment or audit is the level of
Management
Financial Expectations may also be defined in supplier countries, and any services suppliers with greater supplier EHS&S risk. An initial review considers
Human Rights Performance contracts. Standardized contract terms and than $250,000 in annual spend with operations supplier location and the products or services it
conditions guide the foundation of our formal in a high-risk country, confirm awareness of and provides. Suppliers rated as low priority require no
agreements with suppliers. We maintain processes conformance with the human rights provisions further immediate action. Those determined to be
to assist our suppliers in assessing, and, where of our policies.41 In prior years, we reported high priority are evaluated using a formal EHS&S
necessary, improving their performance. Visit our results for our strategic suppliers and those in risk assessment, using either an internal process
active pharmaceutical ingredients and external or one provided by our external partner, EcoVadis,
40. Based largely on assessments of high-risk countries done manufacturing, achieving 98 and 95 percent and assigned ratings of high, medium or low.
by external groups, such as Transparency International. adherence respectively in 2014. Nearly all of the approximately 400 suppliers
41. Original Healthy Future 2015 goal stated that all suppliers in The shift to a high-risk country focus reviewed in 2015 ranked medium or low (see pie
high-risk countries confirm awareness of and conformance with
expanded our reach to include nearly 1,200 chart on next page).
the human rights provisions of our Responsibility Standard for
Suppliers. suppliers across Asia-Pacific (approximately

2015 Citizenship & Sustainability Report 68


EN33, LA15, HR11, S010

Category of Finding
Medium
183
Social includes:
Health & Safety
2015 Supplier 7 High Working Conditions
Assessments,
Labor Relations
Responsible
by Ranking
Training & Career Management
Child and Forced Labor
External Supply
222
Non-Discrimination
Low
Fundamental Human Rights

Supplier Review Where the individual supplier score falls below our Fair Business Practices includes:
desired target rating, we request that the supplier
Contents

Low

Medium

High
Corruption and Bribery
Low High look at its programs and ensure improvement. If Anti-Competitive Practices
non-conformances are discovered, we work with
People Fair and Responsible Marketing
the supplier to identify problem areas and develop
Places Supplier strategies to improve performance. If significant
Environment includes:
Risk Assessment non-conformances are identified that cannot be
Energy & Greenhouse Gas (CO2 )
Practices resolved, the relationship with the supplier may be
Water
3 in jeopardy.
Governance Labor Practices years Biodiversity
& Ethical & Workforce Low Of the slightly more than 100 suppliers pro-
Local Pollution
Performance 12 Med vided repeat assessments in 2015, more than 60
Employee years High Materials, Chemicals, Waste
Supply Chain Recruitment, Corrective percent improved their score by 10 percent or Product Use
Quality & Safety Development actions and
support more. Product End of Life
of Products & Retention
When an on-site supplier audit is warranted Customer Health & Safety
Customer Workplace
Health & Safety Supplier Audit because a potential high risk has been identified, Sustainable Consumption
Relationship
Management Health-Conscious,
Johnson&Johnson staff or a contracted auditor
Supply Safe Employees is hired to visit and review a suppliers opera-
Repeat Low Med High Revisit Supply Chain includes:
Chain Risk Employee risk tions. This may take up to several days. In 2015,
tech
Management Diversity & Inclusion assessment Johnson&Johnson conducted approximately Suppliers Environmental Performance
support
Compliance Transparency 70 supplier audits in all global regions (below). Suppliers Social Practices
Procurement Stakeholder
& Supplier Engagement Supplier
Management Corrective Action North America
Financial and Latin Findings may be identified in the categories of
Human Rights Performance Plans and Support America
Asia-Pacific social, fair business practices, environment or
7%
68% supply chain (see above), and all findings are
separated into critical, major and minor and are
2015 Supplier communicated to each supplier along with our
As
Audits, by ia-
Region expectations
Pa
cif that they must implement time-
ic
25% EM
bound
EA corrective actions and demonstrate
Europe,
Middle East,
Am improvement. EN32, HR10, LA14, SO9 Our approach,
Africa eri
caprocess and tools continue to evolve. In 2015,
s
we continued emphasis on supplier improvement,
supplier training and development and supplier
sustainability programs.

2015 Citizenship & Sustainability Report 69


Working with Suppliers on Climate and Water
Furniture

PSCI India The Companys Procurement Sustainability


Initiative began in 2008, and by 2010 added
Developed long-term plan to confirm content, country
of origin, compliance and purchasing preference for

Supplier several supply chain initiatives, including promoting


supplier participation in the Carbon Disclosure
recycled and FSC-certified materials.

Conference Project (CDP), which addresses climate change


issues by focusing attention on companies
Printed marketing materials

Launched cross-sector program in the U.S. Gained


greenhouse gas emissions, energy usage and
visibility to the country of origin of all our commercial
reduction. As of 2015, Johnson & Johnson has
We partner with invited 202 suppliers to participate in the CDP
paper products, as well as supply chain and

others to champion Climate Supply Chain program; 181 have chosen


deforestation risks. Includes commercial paper stock
grades that all meet environmental sustainability
Contents responsible supply to do so, including all strategic suppliers. We
invited 77 suppliers to participate in the CDP
certifications (Forest Stewardship CouncilFSC
and/or Sustainable Forest Initiative). Paper stocks
chain practices. Water Supply Chain program, which requires them maintain full chain of custody, providing transparency
People to publish their water usage and their exposure and tracking of commercial paper purchases. Also
Through the Pharmaceutical Supply to changing patterns of water availability; 48 have included are stocks that offer up to 30 percent post-
Places consumer waste.
Chain Initiative (PSCI), we have chosen to do so.

Practices collaborated on establishing principles Office copier paper


Forest Materials and Conflict Minerals
Governance Labor Practices to articulate pharmaceutical industry
& Ethical & Workforce Greater than 80 percent of the materials purchased
Performance
expectations for the supply chain. For forest materials, we have established a set
Employee contained recycled content and/or certified content
Supply Chain Recruitment, PSCI members collaborate to deliver of expectations for purchased products such and over 55 percent are FSC certified.
Quality & Safety Development a supplier conference in important as packaging, office paper, printed marketing
of Products & Retention materials and wood-based furniture. (See chart
sourcing regions to provide information
Customer Workplace at right). To meet these expectations, which Minerals, we are taking steps to determine the
Relationship Health & Safety and resources to help suppliers meet use, country of origin and source of 3TG in our
are included in Our Responsibility Standard
Management Health-Conscious, the expectations of the PSCI Principles. for Forest Materials, we seek their content and global product portfolio. Using a documented
Supply Safe Employees
The third PSCI capability building country of origin and, where possible, we choose reasonable due diligence process, as suggested
Chain Risk Employee
Management Diversity & Inclusion conference for suppliers was held in post-consumer recycled content and Forestry by the Organization for Economic Cooperation
Compliance Transparency Mumbai, India, during fall 2015. PSCI- Stewardship Council (FSC)-certified materials. Our and Development (OECD) guidelines, we are
progress in 2015 is highlighted here and in the working with our suppliers to determine the
Procurement Stakeholder member companies and representatives
& Supplier Engagement Product Stewardship section of this report. presence and sourcing of 3TG in our supply chain.
Management from 70 suppliers participated in the In furtherance of our commitment, we:
Financial Rule 13p-1 under the Securities Exchange Act
Human Rights Performance conference, which focused on labor, of 1934 requires public reporting companies that Expect our suppliers to source materials
ethics, environment, health and safety manufacture or contract to manufacture products from suppliers who also source responsibly,
as they relate to suppliers. that contain conflict minerals (defined as tin, including from legitimate, conflict-free mines in
tungsten, tantalum and gold, or 3TG) to conduct the DRC region;
due diligence on the source and chain of custody
Require all our 3TG suppliers to conduct
of those conflict minerals to seek to determine
the necessary due diligence and provide
whether they originated from the Democratic
us with proper verification of the country of
Republic of Congo (DRC) or adjoining countries
origin and source of the materials used in the
and directly or indirectly financed or benefited
products they supply to Johnson & Johnson
armed groups in those countries.
companies;
As indicated in our Statement on Conflict

2015 Citizenship & Sustainability Report 70


Support initiatives to verify smelters and
refiners that are conflict-free, and expect
Johnson&Johnson
our suppliers to utilize any such conflict-free Supplier Diversity & Inclusion Facts
smelter/refiner programs that are available;
Reserve the right to verify any information Billion Dollar Roundtable member for the fifth consecutive year
received from our suppliers. Tier
1 and Tier 2 diverse spend with suppliers at approximately
11 percent of total U.S. spend
For the last three years, we have surveyed all
Spendwith small businesses decreased five percent to $2.95 billion
potential 3TG suppliers to assess their sourcing
practices and filed an Annual Conflict Minerals
due mainly to one supplier losing Small Business status
Report with the Securities and Exchange Veteran-
and disabled-owned Veteran Business supplier spend at
Commission on Form SD. Based on our approximately $90 million
Contents due diligence efforts for the 2015 reporting
period, we do not have conclusive information Lesbian,
gay, bisexual, transgender supplier spend at more than
People regarding the country of origin or facilities used $1.3 million
to process the necessary conflict minerals in
More than 13,500 certified minority- and women-owned and
Places the Johnson & Johnson Family of Companies
small-business suppliers
products. For more information, see our Conflict
Practices Minerals Report for the calendar year ended
Governance Labor Practices December 31, 2015.
& Ethical & Workforce an important role in the success of our businesses Supplier Diversity & Inclusion (GSDI) and our GSDI
Performance Employee and are a vital part of our supplier community. team. Our global Category Leaders embed Supplier
Human Trafficking
Supply Chain Recruitment, The inclusion of diverse people and perspectives Diversity & Inclusion in their Category strategies,
Quality & Safety Development Johnson & Johnson strictly prohibits employees, provide innovative solutions across Business which are derived directly from the plans of our
of Products & Retention
subcontractors, subcontractor employees and Services, Commercial, R&D and Supply Chain businesses, with program results routinely reported
Customer Workplace
Health & Safety agents from engaging in human traffickingrelated spend categories. This supports our growth to the Companys Executive Committee.
Relationship
Management Health-Conscious, activities. These activities include engaging in agenda and contributes ideas that best represent In 2015, we expanded our supplier diversity
Supply Safe Employees sex trafficking, procuring commercial sex acts our customers, patients and consumers who use efforts to additional global markets, including
Chain Risk Employee (even if this practice is legal in the jurisdiction our products and services globally. Canada and Brazil, joining programs already
Management Diversity & Inclusion where it transpires), using force, fraud or coercion Since establishing our formal office of Supplier underway in Australia, South Africa, Switzerland
Compliance Transparency to subject a person to involuntary servitude, or Diversity and publishing our Supplier Diversity
Procurement Stakeholder obtaining labor from a person by threats of serious Policy Statement in 1998, Johnson & Johnson
& Supplier Engagement
Management harm to that person or another person, among has led an active outreach and advocacy program Minority- and Women-Owned Supplier Spend
Financial that aligns directly with Our Credo commitment to in billions of dollars (U.S.)
Human Rights others. We are developing a Human Trafficking
Performance
compliance plan to address the issues identified in the communities in which we live and work. Our
the U.K. Modern Slavery Act, the California Supply strategy goes beyond the fundamental process of Year Goal Achieved
Chain Transparency Act and certain Federal buying and focuses on more sustainable solutions 2011 $1.12 $1.31
Acquisition Regulations. Please see our Human by investing in supplier development, education,
Trafficking Policy for more information. collaboration with customers, and global 2012 $1.18 $1.23
expansion. 2013 $1.23 $1.36
Supplier Diversity & Inclusion Executive leadership and sponsorship are
provided by our Chief Procurement Officer, Vice 2014 $1.3 $1.52
Johnson & Johnson companies have long President Procurement Citizenship, Head of Global 2015 $1.36 $1.39
recognized that small and diverse suppliers play

2015 Citizenship & Sustainability Report 71


and the U.K. As we expand into other regional The Johnson&Johnson Supplier Diversity program has been recognized
markets such as China and India, regional teams
by many organizations and publications. Here are some of the recognitions
provide leadership by leveraging best practices,
partnering with local advocacy groups to inform received in 2015.
our strategic direction, enrich our approach
and identify additional meaningful prospects for
inclusion in our diversity initiative.
Publications & Recognitions
Our Healthy Future 2015 goal for Supplier A mong the Most
Diversity & Inclusion in the U.S. was to reach Admired Corporations
for Supplier Diversity
$1 billion in annual Tier 1 spend with certified (Fifth year)

minority- and women-owned business suppliers B everly


Jennings
and Veronica Manuel-
by 2011 and to increase that spend by five Gilbert recognized
as Best of the
percent each year thereafter. The Company
Contents achieved this goal.
Decade in Circle
of Honor/Supplier
Diversity 2015 WE 100 of the One of 30 Top A Top Supplier Best of the Best
Johnson & Johnson is recognized by the Professionals
People Womens Business Enterprise National Council
Year Supporting
Supplier Diversity
Corporations for
Supplier Diversity
Diversity Program for
Hispanics (Fifth year)
Top Supplier
Diversity Programs
(Third year) (First year) (Seventh year)
among Americas Top Corporations (10th time);
Places
the National Minority Supplier Development
Council National Top Performer for Development
Practices
(first time); the National Veteran-Owned Business One of the Top 2015 2014 Corporate 101: Veronica Manuel-Gilbert
Governance Labor Practices Military Friendly Americas Most Admired recognized as one of the
& Ethical & Workforce Association among the Top 10 Best Corporations Diversity Programs Corporations for Supplier Top 100 Leaders in
(Fifth year) Diversity Corporate Supplier Diversity
Performance for Veteran-Owned Business (fifth time) and Top 50 Corp
Employee Veronica Manuel-Gilbert
(Third year)
Supply Chain Recruitment, Supply Nation Australia-Johnson & Johnson one of 2015 Champions of
Multi-Cultural Business
(Seventh consecutive year)
Quality & Safety Development Medical Up & Coming Member of the Year (first Supplier Diversity
(Second time)
of Products & Retention
time). The Company continues to support and
Customer Workplace be recognized by numerous national and regional
Relationship Health & Safety
advocacy groups in Global Supplier Diversity & Million Dollar Club
Management Health-Conscious, $250MM$500MM
Safe Employees Inclusion. Level
2015 Premier Supplier Arizona Million Dollar Platinum Level
Supply Diversity Award Circle of Excellence (highest level) Top
(Sixth year)
Chain Risk Employee Honorable Mention award Corporation of the
Management Diversity & Inclusion Year (11th time) and
first time at platinum;
Compliance Transparency Beverly Jennings
awarded 2015
Procurement Stakeholder Applause Award
& Supplier Engagement
Up and Coming
Management Member of the Year
Financial
(First year)
Human Rights Performance 2015 Coporation Recognized as one of
of the Year (Fifth year) the Top Performers:
Development

2015 Citizenship & Sustainability Report 72


Human Rights
42

G4-58

Contents Johnson & Johnson has


People
a responsibility to respect
the rights of all people,
Places
including the more than
Practices
Governance Labor Practices
one billion people we
& Ethical
Performance
& Workforce
Employee
touch with our products
Supply Chain Recruitment, and services every day.
Quality & Safety Development
of Products & Retention
Customer Workplace Many of the 60 countries in which we operate
Health & Safety H U M A N R I G H T S Our Statement on Human Rights articulates our commitments and the efforts that
Relationship (a list of our operating locations can be found in
Management support them, and our Responsibility Standards for Suppliers reflect our values and expectations for
Exhibit 21 of our 2015 10-K filing) are considered our suppliers. Responsibility for human rights follows our management structure and resides in our local
Supply by independent organizations to be at risk for operating companies, managed by the relevant corporate and business group functions.
Chain Risk Employee
Management Diversity & Inclusion human rights violations, including forced labor,
child labor and restrictions on the right to exercise
Compliance Transparency of Human Rights and its two corresponding We follow the principles in the International
freedom of association or collective bargaining.
Procurement Stakeholder covenants, the International Covenant on Civil and Labor Organizations Declaration on Fundamental
& Supplier Engagement See the Procurement & Supplier Management
Political Rights and the International Covenant Principles and Rights at Work, including non-
Management section of this report for the full list. HR4-HR6
Financial on Economic, Social and Cultural Rights. Our discrimination, freedom of association and
Human Rights Performance Our Statement on Human Rights articulates
Human Trafficking Policy, developed in 2015, collective bargaining, and freedom from forced
our commitments and the efforts that support
strictly prohibits employees, subcontractors, and child labor. Our commitments are detailed in
them, and our Responsibility Standards for
subcontractor employees and agents from our Global Labor and Employment Guidelines,
Suppliers reflect our values and expectations for
engaging in human traffickingrelated activities. our Policy on the Employment of Young Persons,
our suppliers. We are members of the UN Global
Efforts are also ongoing to give more Responsibility Standards for Suppliers and our
Compact and are committed to respect human
consideration to human rights as a filter for Code of Business Conduct. For more information
rights as embodied in the Universal Declaration
supplier risk prioritization, and to review and on these topics, visit the Human Rights section of
update our Responsibility Standards for Suppliers our website.
42. For information on how data from acquisitions and
divestitures are managed, please see the Report Profile
to reflect all relevant provisions from the UN Our internal human rights efforts are overseen by
section of this report. Exceptions will be noted in the relevant Guiding Principles on Human Rights and apply our Vice President of Human Resources, reporting
sections in which they occur. them to all suppliers.

2015 Citizenship & Sustainability Report 73


directly to our Chief Executive Officer. Responsibility labor unions and works councils. Assessment
for human rights follows our management structure data are considered confidential. HR3, HR9
and resides in our local operating companies, Procedures have been established to remedy
managed by the relevant corporate and business reported HR or employee-related concerns. All
group functions. Compliance is monitored under employees can anonymously report potential
our global Code of Business Conduct through violations through Our Credo Hotline, within
individual business units. HR4HR6 each operating company locally using the Open
Compliance training is required of all Door process, or to Human Resources. Hotline
employees, and compliance with communication, access is communicated broadly, and visibility of
training and execution of our Code of Business this access and Hotline functionality are in scope
Conduct is audited. Each business and all senior for financial audits. In the Americas and Asia-
leaders must certify compliance with our Code Pacific, Employee Relations staff independently
of Business Conduct annually, and results are investigates non-compliance in employee-relations
Contents reviewed by the Corporate Secretarys Office, matters, and verified non-compliant situations
Internal Audit and the Boards Regulatory, are addressed by the respective business unit.
People Compliance & Government Affairs Committee. In the Europe, Middle East and Africa region,
While training data are not currently tracked investigations are the responsibility of local human
Places
at the enterprise level, a global data system resources and are overseen by regional employee
to gather enterprise-wide data is under relations teams. Concerns raised through the
Practices
development. We have a Healthy Future 2015 Open Door process are addressed locally and are
Governance Labor Practices
goal to provide all critical employees, defined not tracked at an enterprise level. Concerns raised
& Ethical & Workforce
Performance as those in positions most sensitive to human through the Hotline are reported at an enterprise
Employee
Supply Chain Recruitment, rights infringements, with human rights training. level, and of the approximately 1,000 employee
Quality & Safety Development At the end of 2015, approximately 1,300 relations Hotline matters received in 2015, all were
of Products & Retention procurement professionals (or 99.85 percent) addressed. Of these, approximately 78 percent
Customer Workplace had completed this training, up from less than 50 were closed by December 31, 2015, along with
Relationship Health & Safety
percent in 2014.43 HR2 additional matters pending from 2014. Although
Management Health-Conscious,
Safe Employees Our Global Labor and Employment additional grievance data are not tracked at the
Supply
Chain Risk Employee Guidelines articulate our expectations for labor enterprise level, a global system to gather this
Management Diversity & Inclusion and employment practices at our sites, including enterprise data remains under development.
Compliance Transparency forced labor, discrimination and child labor, among G458, EN34, HR12, LA16, SO11
Procurement Stakeholder other topics. HR4-HR6 Assessments against
& Supplier Engagement our Global Labor and Employee Guidelines are Human Rights and Suppliers
Management
Financial conducted on an ongoing basis through local
Human Rights Performance Human Resources and our Global Employee & Our Responsibility Standards for Suppliers
Labor Relations function. Currently, three regional apply across the entirety of our supply chain.
leaders interact with employees, trade unions Implementation will take time, due to the
and other employee representatives (works sheer number of suppliers. These standards,
councils), and government officials. They have which previously applied only to our external
broad oversight and responsibility for monitoring manufacturing partners, have been extended to
compliance and maintaining relationships with more than 80,000 suppliers. For more information,
see the Procurement and Supplier Management
43. In 2014, we erroneously reported progress against this section of this report.
goal at 100 percent, but discovered after publication of the
report that actual progress was just under 50 percent due to
adjustments to classifications of employees.

2015 Citizenship & Sustainability Report 74


Labor Practices
& Workforce
44, 45

G4-58

Contents

People Our Companys greatest


Places capital is our human
Practices
capitalour approximately
127,100 employees
46

Governance Labor Practices


& Ethical & Workforce
Performance Employee who work in 250
Supply Chain Recruitment,
Quality & Safety Development
operating companies
& Retention
of Products
Customer Workplace in 60 countries.
Relationship Health & Safety
Management Health-Conscious, Our approach to labor practices is reflected in
Supply Safe Employees numerous documents, including Our Credo,
Chain Risk Employee Global Labor and Employment Guidelines, Global
Management Diversity & Inclusion Diversity and Inclusion Vision Statement, Policy
Compliance Transparency on the Employment of Young Persons, and our Every employee of the Johnson & Johnson Family of Companies
E V E R Y E M P L O Y E E M AT T E R S
Procurement Stakeholder Responsibility Standards for Suppliers as well as performs work that in some way touches the lives of millions of people every day. Our Global Labor and
& Supplier Engagement through our signing of the UN Global Compact in Employment Guidelines establish consistent principles for labor and employment practices, and are followed
Management
Financial 2013. For more information on Company policies by all Johnson & Johnson operating units around the world.
Human Rights Performance
and practices related to human rights, see the
Human Rights section of this report and our
require that our policies and actions are in full & Inclusion, which reports to the Chairman and
website.
compliance with the laws and regulations of the Board of Directors through its Vice President and
Our Global Labor and Employment Guidelines
countries in which we operate. Responsibility Chief Diversity Officer, and Human Resources,
44. For information on how data from acquisitions and dives- Standards for Suppliers extend these and whose Vice President is a Corporate Officer
titures are managed, please see the Report Profile section of other expectations to our suppliers. For more and a member of the Executive Committee.
this report. Exceptions will be noted in the relevant sections in information on these guidelines, see Employee & The Supply Chain Vice President of Human
which they occur.
Labor Relations Practices. Resources for Johnson&Johnson is responsible
45. Data from recent acquisitions included. Turnover data
includes retirees.
Responsibility for labor practices are shared for the oversight and implementation of our labor
across several global functions, Global Diversity relations policy.
46. Includes full- and part-time employees worldwide.

2015 Citizenship & Sustainability Report 75


G4-10 G4-LA1
G4-10
Terms G4-LA1 Hires Hires
G4-LA1 G4-LA1 Terms
G4-LA1 Terms
G4-LA12 Terms G4-LA3 Parent Leaves
G4-LA1 Terms
G4-LA1 Terms G4-LA12 Terms
These graphs and charts show our workforce by several key metrics.
G4-LA3 Parent
G4-LA1 Leaves
47

LeavesTerms
G410, LA1

G4-10 G4-LA12 Terms G4-LA1G4-LA1 G4-LA3


Hires Hires Parent G4-LA
G4-10 Employees by Gender,
Worldwide
>50 Male
Male
Employeesby Job Category
and Gender, Worldwide
New Employees Hires
by Gender, Worldwide
Employee Turnover by Gender,
>50 Worldwide
>50
>50
Male Female
>50
>50
Female
69% 57% 52% 56% >50 30-50 30-50
30-50 Male 30-50
Female 30-50

Male
Female
30-50 <30 <30
>50 <30
>50 Female30-50 No Leave
<30>50
<30
<30 Male
>50 30-50 Male
<30 >50 Took Leave Male
30-50 Male Male
Male Male 30-50
30-50 55%
<30 45% MaleFemale 50% Male
Female
50%
30-50
>50 52% 48% No Leave
<30 No Leave Femal
Female
Female Female Female <30
<30
Female Female 30-50 Took Leave

Male
<30

Female
Took Leave

<30
Male
Female

31% 43% 48% 44%


VP+ Manager & Professional Other
Contents Director
Male Female Male Female Male Female Male Female

People
G4-10 G4-LA1 Hires G4-LA1 Terms

G4-LA1 Hires
Full- and Part-Employees Employees by Job Category New Employees Hires Employee Turnover by Age, Male
Places
Male
Male
by Gender, Worldwide andMale
Age, Worldwide by Age Group, Worldwide Male
Worldwide
Male >50
Male Fema
Female Female26.4% 19.6% Female
56% 16% 58% 21%
Practices
Female
Female Female
Male Male
Male 54% 30-50 Male
18%
Governance Labor Practices Male Female Female
& Male
Ethical & Workforce
Male
Female <30 46%
Female 31% Male
Male >50 Male >50
Performance Employee
Female Male
Female >50 5% Male Femal
>50
Supply
Female Chain Recruitment, Female 30-50 Female
Male
30-50
Female
Male 30-50 Male
Quality & Safety Development 42% 72.2% 63.7% 54% 30-50 Female
Female Nort

of Products & Retention <30 North Am <30


Female <30 49%
North Am Female Latin
Customer Workplace <30 51%
Relationship Health & Safety 1.4% 16.7% 25% Latin Am
44% 84% Latin Am EME
Management Health-Conscious, VP+ Manager & Professional Other
Full-Time Part-Time EMEA
Supply Safe Employees Director EMEA Asia
>50 3050 < 30 >50 3050 < 30
Chain Risk Employee Male Female >50 3050 <30
Asia-Pacific
Management Asia-Pacific
Diversity & Inclusion Male
Male

>50
30-50
<30
Compliance Transparency Employees by Gender and Employees Job Category and New Employees Hires Employee Turnover by Region, No
Female
Male
Female

North Am
Procurement Stakeholder Region, Worldwide Female Diversity, Worldwide by Region, Worldwide Worldwide
North Am
Latin Am
EMEA

North Am
Asia-Pacific

La
&North
Supplier
Am Engagement
Management
59% 53%Latin Am53% 55% 77% 73% 75% 53% Latin Am EM
Latin Am Financial
Human Rights Performance
EMEA 54% Retained
32% 54%EMEA
26% North Am 29% As
EMEA North Am
Asia-Pacific
32% North
Not Retained
North Am White Asia-Pacific
Latin Am Nort
Asia-Pacific Male North Am Latin A
Latin Am
North Am Minority Male
Latin Am North Am
Female EMEA Latin
EMEA
Male LatinMale
Am EMEA
Latin Am Retained Fema
EMEA
13% Female29%
Latin Am
Asia-Pacific12%
Retained EME
Female EMEA
27%

G4-LA1 Term
Asia-Pacific
Male Asia-P
EMEA 41% 47% 47%
Asia-Pacific 45% 23% 27% 25% 47% White EMEA North Am Not Retained
Not Retained
Asia
White Asia-Pacific
North Asia- Europe, Latin VP+ Manager & Professional Other
Asia-Pacific America Pacific Middle East, Male
America Female
Director Minority Asia-Pacific
Latin Am
Africa Male Minority
White Minority
Male FemaleFemale North Asia- Europe, Latin North Asia- Europe, Latin
EMEA
Female America Pacific Middle East, America America Pacific Middle East, America
Africa MaleAfrica

47. Estimated based on existing database platform. Asia-Pacific


Male Female

2015 Citizenship & Sustainability Report Female 76


We currently have 11 Board members, 10 of committees, severance or separation benefits, and
whom are independent under the rules of the paid leaves. Policies and practices establishing
New York Stock Exchange; three (27 percent) performance, development and training guidelines
women, eight men; and three racial minorities are also established across the organization.
(27 percent). LA12 Additional information is available in Notes 9-11
of our 2015 Annual Report and in the Financial
Collective Bargaining G4-11 Performance section of this report.

The freedom to establish a formal employee Minimum Notice Periods LA4


organization or representation structure is
provided for across Johnson&Johnson and our The management of reorganizations and layoffs
operating companies, and company sites have and the policies associated with them vary
the ability to establish an employee representation depending on the location, nature, size and scale
Contents structure or framework except where prohibited by of the restructuring, as well as the qualifications
law. Where employees choose to establish these of the employees impacted. Where employees
People structures, management provides support. are negatively impacted by operational changes,
Across Johnson&Johnson, representation operating companies have measures in place to
Places
structures vary worldwide. As of January 1, 2014, help and support impacted employees, including
employees were represented by labor unions but not limited to severance payments, access to
Practices
or work councils at approximately one-third outplacement support and employee assistance
Governance Labor Practices
& Ethical & Workforce
of our sites around the world.48 Not including programs.
Performance local practices or requirements, our collective In addition, local operating leaders endeavor
Employee
Supply Chain Recruitment, bargaining agreements with these representative to communicate significant plans of operational
Quality & Safety Development groups contain provisions covering grievance and changes to employees and their representatives,
of Products & Retention discipline processes, joint management-employee where they are present, in a timely and practical
Customer Workplace health and safety committees, paid time off, paid manner in advance of actions being taken.
Relationship Health & Safety
maternity leave, paid paternity leave, mandated Feedback and suggestions from employees and
Management Health-Conscious,
Safe Employees employee training, and collectively bargained representatives may be taken into consideration
Supply
Chain Risk Employee severance and separation benefits. Other before final decisions are made. The Company will
Management Diversity & Inclusion negotiated terms and conditions of employment comply with all local laws and notice obligations
Compliance Transparency contained in our collective agreements include, regarding minimum notice periods, where
Procurement Stakeholder but are not limited to, topics such as wages and applicable, and many of our collective bargaining
& Supplier Engagement performance management. In some instances agreements contain negotiated provisions
Management
Financial terms and conditions of employment may not covering severance or separation pay and
Human Rights Performance be covered in a collective bargaining agreement, benefits. Where there is no legal minimum notice
because the parties have chosen not to include period, Johnson&Johnson companies attempt to
them, or where addressed by local law or provide notice at the earliest feasible time.
regulation.
With respect to the majority of our workforce
who has chosen not to collectively bargain its
terms and conditions of employment, policies and
practices establish formal grievance mechanisms,
joint management-employee health and safety

48. 2014 data. Data are collected on a less than annual basis.

2015 Citizenship & Sustainability Report 77


rms G4-LA12 Terms G4-LA3 Parent Leaves
Employees Who Took Employees Who Took Employees Who Returned Employees Who Returned
Parental Leave, U.S. only Parental Leave by Gender, After Parental Leave, After Parental Leave
U.S. only U.S. only by Gender, U.S. only
4%
100
>50 North Am
10%
North Am
30-50
Male
Latin Am 80 91% 89%
Male
Latin Am Female >50
<30 EMEA No Leave
Female Male 60 Retained

EMEA
30-50 46% 54% 91% 89%
Asia-Pacific Took Leave Female Not Retained
White 40
<30
Asia-Pacific 96% 90%
Minority 20

0
Male Female
Took Leave Male Female Returned Did Not Return

Contents
Flexible Work/Parental Leave LA3 support and benefit coverage for parents and their HealthAccount (Flexible Spending Account)
People children with special needs. Retention rates in the CareAccount (Flexible Spending Male Account)
The Johnson&Johnson Family of Companies U.S. following parental leave are shown above. Life Insurance
PlacesMale offers parental leave to employees in most Accident Insurance
Female

Female North Am
>50
countries in which we operate in accordance with Benefits LA2 Male Disability Coverage
Practices 30-50
Latin Amstatutory requirements and/or based on local Long-Term Care Insurance
Female
Governance Labor Practices competitive practices. Wherever possible, <30 we also Johnson&Johnson offers a comprehensive Group Legal Insurance
& Ethical & Workforce EMEA
Retained
Performance offer flexibility and flexible work arrangements for and competitive benefits program to attract and Auto and Home Insurance
Employee Asia-Pacific
Supply Chain Recruitment, employees. retain talented
Whiteemployees. In providing employee Commuter
Not Retained
Benefits Program
Quality & Safety Development In 2015, we announced a significant upgrade benefits around the world, Johnson&Johnson
Minority
of Products & Retention to our parental leave policy in the United States, regularly compares the value delivered to that of For additional information, see Benefits on our
Customer Workplace offering all new parentsmaternal, paternal and our competitors and seeks to rank in the upper website. Benefits are provided to union employees
Relationship Health & Safety
adoptivethe opportunity to take up to eight 49 half among these world-class companies. We through collective bargaining agreements.
Management Health-Conscious,
Safe Employees
additional weeks of paid leave during the first year assess this competitive view on a country-specific Additional information is available in Notes 9-11
Supply
of the familys birth or adoption. This new policy is basis. We also consider benefit adequacy as of our 2015 Annual Report and in the Financial
Chain Risk Employee
Management Diversity & Inclusion in addition to current leave policies, which means well as attracting and retaining critical talent in Performance section of this report.
Compliance Transparency moms who give birth can take up to 17 paid designing our benefit programs. AsMale the largest and most diversified healthcare
North Am

Procurement Stakeholder weeks off, and dads and adoptive parents can Plan provisions may differ for certain part-time company in the world, enhancing the health and
Female
& SupplierLatin Am Engagement take up to nine paid weeks. The time doesnt need employees and by country. In the U.S., Choices wellness of our employees is a logical extension
Management to be taken consecutively, so families can enjoy Benefits are provided annually toRetained
active salaried of our corporate mission. Our Healthy People
EMEA Financial
Human Rights Performance some much-needed flexibility during such a critical and non-union hourly employees, as well as program provides Employee Assistance, as well
Asia-Pacific
Not Retained
time in their lives. Were also making itWhite
retroactive regular and casual part-time employees who are as Occupational Health and Wellness and Health
for employees who became parents on or after
Minority scheduled to work 19 or more hours per week. Promotion services, all of which have expanded
May 2014. And also in 2015, the Company Employees create a personalized benefit package globally since 2005. Additional information about
implemented a Special Needs Benefit, providing for themselves and their eligible dependents. our Healthy People programs is provided in the
Benefits include: Health-Conscious, Safe Employees section of
49. This benefit is in addition to the six-week short-term this report.
disability benefit for new mothers and the one-week Work,
Medical
Personal and Family paid leave for mothers and fathers, Dental
increasing the leave time to 17 weeks for C-section mothers, Vision
15 weeks for non-C-section mothers, and the minimum to nine Male
Tobacco Cessation
weeks for fathers, adoptive parents and same-sex parents.
Female

2015 Citizenship & Sustainability Report 78


Employee
Recruitment,
Development &
Retention
Contents

People

Places At Johnson&Johnson, enterprise


talent management is overseen
Practices by both human resource leaders
Governance Labor Practices and business leaders who are
& Ethical & Workforce
Performance Employee
accountable for attracting and
Supply Chain Recruitment, recruiting talent, managing
Quality & Safety Development D E V E L O P I N G V A L U E D E M P L O Y E E S Any individual may still have untapped potential. At Johnson & Johnson,
of Products & Retention performance and development, we promote a culture of learning and development for all employees and of shared accountability between each
Customer Workplace building a pipeline of global and employee and their manager to ensure that opportunities for development are pursued.
Health & Safety
Relationship
Management Health-Conscious,
diverse leaders, and creating an
Safe Employees environment that embraces diversity way to lead the Johnson&Johnson Family into the Johnson&Johnson Family of Companies.
Supply
of Companies into the future. Topics covered For more information, visit Talent Attraction,
Chain Risk
Management
Employee and inclusion. below are all strategically aligned with the Management & Retention.
Diversity & Inclusion
Compliance Transparency Leadership Imperatives. For more information
Our Leadership Imperatives
Procurement Stakeholder about our leadership imperatives, visit Leadership Talent Development
& Supplier Engagement Development & Performance Management.
Management Our Leadership Imperatives set the performance
Financial Johnson&Johnson promotes a culture of learning
Human Rights Performance and behavioral expectations for all employees.
Talent Acquisition and development for all employees, with shared
As the driving force for our talent agenda,
accountability between employee and manager
the Leadership Imperatives integrate our
Johnson&Johnson implements recruiting to ensure that opportunities for development are
Talent PracticesRecruitment, Development,
models in countries around the world, focused identified and pursued, with a goal to maximize
Succession Planning, Performance Management,
on a healthy pipeline of skilled talent. The Global the potential of the individual. Development offers
and Reward and Recognitionas a consistent
Job Posting program promotes our commitment span a vast array of topics and are provided via
reinforcement to those behaviors. The Leadership
to the advancement and development of our both on-the-job training and online to all full-
Imperatives apply to everyoneacross all
employees by providing them transparency in and part-time employees globally. Independent
geographies, businesses, roles and levels
job opportunities within Johnson&Johnson. The study courses, web-based courses, interviewing
giving all employees a clear and consistent
Company also has implemented a new employee simulations, assessments, intensive workshops
orientation to help accelerate an employees entry and action-planning courses are included in the

2015 Citizenship & Sustainability Report 79


offerings. International assignments are used to has as its foundation conversations between 2014, engagement levels for Johnson&Johnson
develop global leadership talent and to foster manager and employee that are frequent, in total and for each of the business segments
a global mind-set, diversity and innovation. meaningful and continuous. Each employee and exceeded the Mayflower Global Norm. However,
Johnson&Johnson encourages employees to manager is expected to engage in clear and in 2015 a Credo survey redesign program was
seek cross-segment, cross-functional and cross- candid dialogue throughout the year within the 5 initiated, and engagement was not evaluated
regional experience; this is facilitated by our global Conversations Framework, which consists of the in the same way it had been earlier in the goal
operations around the world. Temporary workers Performance and Development Planning, Mid- period.
do not participate in Johnson&Johnson learning Year, Career Planning, Year-End Performance and
or leadership development offerings. See Talent Compensation conversations. Optimizing Work, Family and Personal Life
Attraction, Management & Retention. The P&D approach consists of two
Training is provided, tracked and documented dimensions. The first, Results, is based on To help support individual effectiveness at
by the operating companies. Because training aligning employees goals and actions with the work and at home, we offer comprehensive
records are currently maintained at a local or goals of their company. The second, Leadership, programs and services for employees that reflect
Contents operational level, we are not able to provide a reflects the key behaviors that are critical to the a holistic view of work, family and personal life.
detailed report on this information on a global level future success of Johnson&Johnson. These Specific programs, including those for flexible
People for all employees; however, systems are being two components provide the basis for annual work arrangements, parental leave, education,
implemented that will compile this information performance evaluation of all employees, with a adoption, child care and elder care may vary
Places
across the Johnson&Johnson enterprise within strong link between performance and pay. around the world based on local circumstances
the next several years. LA9 and business needs. See Flexible Work/Parental
Practices
Transition assistance programs are offered to Retention, Rewards and Recognition Leave on page 78.
Governance Labor Practices
& Ethical & Workforce
support employees who are retiring or who have
Performance been terminated from employment. Visit Skill and The Total Rewards program is another important
Employee
Supply Chain Recruitment, Talent Management and Training for more details. part of Global Talent Management and includes
Quality & Safety Development LA10 compensation, benefits and health resources
of Products & Retention services across the Johnson&Johnson Family
Customer Workplace Performance Management of Companies. To meet the needs of our diverse
Relationship Health & Safety
workforce, we offer competitive compensation
Management Health-Conscious,
Safe Employees Over the past three years, Johnson&Johnson programs, as well as cost-effective and country-
Supply
Chain Risk Employee has undertaken a massive effort to transition from focused services related to health and wellness,
Management Diversity & Inclusion over 200 performance management systems pension, disability and leave of absence.
Compliance Transparency globally to one global system. In the successful Johnson&Johnson administers a Global
Procurement Stakeholder launch of our Performance & Development (P&D) Credo Survey every two years to ensure that:
& Supplier Engagement approach, we discovered that a globally consistent Everyone across our companies is inspired by
Management
Financial way of doing things successfully across the entire the goals we set, both personally and for the
Human Rights Performance organization is possible. Approximately 71 percent future of our business; we feel connected with
of employees are being assessed using the new our colleagues and the values we hold ourselves
approach, including 100 percent of employees at to; and we remain committed to taking the steps
the management level and above, the exceptions necessary to meet the needs of our patients,
being those employees in manufacturing roles customers and communities we serve. The
and covered by collective bargaining agreements. results are provided to companies, regions
Operational metrics and KPIs to assess the and departments to review and address any
effectiveness and outcomes of the new approach opportunities for improvement.
are under development. For more information on We had set a Healthy Future 2015 goal to
this framework, visit our website. LA11 achieve a 90th percentile employee engagement
The P&D approach at Johnson&Johnson rating when compared to external benchmarks. In

2015 Citizenship & Sustainability Report 80


functions; the new approach is being pilot tested

Workplace
in 2016. Everyonefrom the plant manager to
the production operatoris responsible for
workplace safety.

Health & Safety


50
We encourage, but do not require, third-
party certification to the Occupational Health and
Safety Assessment Series management system We continue to build on our
(OHSAS 18000), and in 2015, 37 percent of our
manufacturing and R&D sites were third-party
Healthy Future 2015
certified to OHSAS.
goals to develop engaged,
health-conscious, safe employees.
Safety Culture Roadmap (More on page 85)

Our human capital is our most In 2014, we began work on improving our safety
Contents culture by developing and piloting a standardized Achieved a 27 percent improvement
important capital. Safety is our in employee safety performance enterprise-
approach for all of Johnson&Johnson Supply
People expectation. Our goal is for every Chain (JJSC). The Safety Culture Roadmap wide, realizing a Lost Workday Case
employee to arrive home to their ensures each manufacturing facility conducts (LWDC) rate of 0.08.
Places families in the same, if not better assessments of its safety culture, looking at Exceeded
Practices condition, as when they arrived leadership, safety education and awareness,
at work. and processes and habits. In 2015, the Safety Achieved a 28.5 percent increase in
Governance Labor Practices Culture Roadmap was deployed across our
& Ethical & Workforce contractor safety performance at all
Performance Our Worldwide Environment, Health & Safety Supply Chain to individuals and sites around the Johnson & Johnson manufacturing and
Employee
Supply Chain Recruitment, (EHS) Policy, supplemented by our Worldwide world. Following the assessments, individual site R&D facilities, realizing a LWDC rate of
Quality & Safety Development EHS&S Standards (the Standards), set the action plans were developed to address areas of 0.18. (Target 15 percent improvement;
of Products & Retention weakness; improvement activities began in the
expectations for our health and safety efforts. LWDC rate of 0.12.)
Customer Workplace second half of 2015. Going forward, each site
Health & Safety The Standards are reviewed annually and Did Not Meet
Relationship will continue to implement its action plan,
Management Health-Conscious, revised as necessary. Compliance
with these Standards is currently A safety leader or if implementation is complete, will
Supply Safe Employees
is anyone who has
Achieved a nine percent increase in
monitored by our Management review findings and identify additional
Chain Risk Employee any influence on safety crashes per million miles (CPMM),
Management Diversity & Inclusion Awareness and Action Review focus areas to be addressed in 2016.
in the workplace or who realizing a rate of 6.01. (Target 15 percent
Compliance Transparency System (MAARS), an assessment influences at least one The site assessment will be repeated
other colleague.
improvement; CPMM rate 4.7.)
Procurement Stakeholder program that provides a framework every two years so organizations
& Supplier Engagement have visibility to how their culture is Did Not Meet
for Johnson&Johnson sites to
Management performing. In 2016, the Safety Culture
Financial proactively identify and mitigate EHS&S
Human Rights Performance Roadmap will be expanded to R&D sites,
risks, and includes annual self-assessments
and periodic independent assessments. We logistics operations and fleet operations, and all
began a project to reinvigorate this system in offices with over 500 employees.
2015, to increase its alignment with the audit In 2015, the Johnson&Johnson Consumer
processes of other Johnson&Johnson risk Supply Chain organization began working
on a program to reconnect employees to the
importance of safety. The campaign, Your
50. Includes data from all manufacturing, R&D, warehouse,
distribution center and office building locations, unless Safety, My Responsibility, was launched in 2015,
otherwise noted. For information on how data from acquisitions translated into more than 20 languages and
and divestitures are managed, please see the Report Profile deployed across the globe, all part of the overall
section of this report. Exceptions will be noted in the relevant
sections in which they occur. Safety Culture Roadmap.

2015 Citizenship & Sustainability Report 81


Contents

People

Places China Joint Management-Worker Committees

Practices Most of our operating company manufacturing


Governance Labor Practices and R&D locations have formal joint management-
& Ethical & Workforce worker health and safety committees. Our sales
Performance Employee and service field employees are represented by
Supply Chain Recruitment, SAFE Fleet teams worldwide. In addition, one-third
Quality & Safety Development of those working in office settings are represented
of Products & Retention
Workplace in health and safety committees through our
Customer
Relationship Health & Safety Office EHS program. Where local collective
Management Health-Conscious, bargaining agreements exist, requirements for
Colombia
Supply Safe Employees Safety culture is the working conditions, including health and safety,
Chain Risk Employee attitude (behaviors), beliefs, are typically incorporated into the agreements.
Management Diversity & Inclusion
perceptions and values These requirements may include personal
Compliance Transparency protective and safety equipment, health and safety
Procurement Stakeholder that management, employees committees and their designated representatives,
& Supplier Engagement and contractors share in inspections, complaint processes and training.
Management
Human Rights
Financial
Performance
relation to safety. More information on the Companys commitment
to health and safety can be found on our website.
Safety culture is not a program.
LA5, LA8
The safety culture of an organization
must be evaluated, leveraged, managed
Performance
and cultivatedjust as diligently as
projects and key performance indicators. We exceeded our Healthy Future 2015 goal to
achieve a 15 percent improvement in employee
safety performance enterprise-wide, as measured
Brazil by our Lost Workday Case (LWDC) rate, (goal of
0.09), with a rate of 0.08. Our LWDC rates were

2015 Citizenship & Sustainability Report 82


address the main sources of ergonomic injuries Lost Workday Case Rate and Total Recordable
at Johnson&Johnson, and it will include offices, Injury Rate Frequencies LA6
customer logistics services, and acquisitions Total Lost51
Region Recordable Workday51
along with our manufacturing and R&D locations. Injury Rate CaseRate51
A self-assessment tool has been created for use
Asia-Pacific 0.20 0.06
by locations experiencing higher ergonomic injury
rates, to be followed by mitigation efforts of the Europe, Middle East
0.49 0.05
risks identified by the assessment. and Africa
Our LWDC and total recordable injury rates Latin America 0.77 0.02
(TRIR) are tracked at an enterprise and regional
level and are shown at right. Our TRIR in 2015 North America 0.73 0.13
was 0.56. This performance reflects the addition of Worldwide 0.56 0.08
data from recent acquisitions, including Synthes.
Contents Non-injury type statistics that are classified as Lost Workday Case Rate
illness, such as mental stress cases, are included 2015 Benchmark Comparison
People in our total recordable rate. These statistics are not Lost Workday
Company
tracked by gender. We experienced no fatalities Case Rate
Places
lower in Asia-Pacific, EMEA and Latin America, and one partial finger amputation in 2015. ORC HSE 0.40
and higher in North America. Our efforts to In 2014, we made the decision to broaden
Practices PSG 0.25
support and drive our safety culture continue, with our Serious Injury and Illness Case (SIIC) definition
Governance Labor Practices
& Ethical & Workforce a focus on ensuring a strong safety culture across to include cases that put a greater emphasis on Johnson&Johnson 0.08
Performance our operations, and integrating these programs the illness side of the metric, such as hearing
Employee
Supply Chain Recruitment, with acquisitions. loss, disability lasting over 180 days, and surgery section of this report. LA7 Enterprise-wide safety
Quality & Safety Development The leading causes of LWDC within our that addresses cumulative trauma. We believe performance is discussed with the Regulatory,
of Products & Retention the revised metric is more reflective of employee
operations continue to be ergonomics and Slips, Compliance & Government Affairs Committee
Customer Workplace Trips and Falls (STF), which were 33 percent and 30 health. However, broadening the metric means
Health & Safety and the Science, Technology & Sustainability
Relationship percent of our LWDC rate, respectively, in 2015. more injuries are reported in it, and after reaching
Management Health-Conscious,
Committee of the Board of Directors.
Safe Employees To address STFs, the StepRight program, a five-year low in 2013, the rate is trending Johnson&Johnson continues to compare
Supply
Chain Risk Employee a campaign initiated to raise awareness of the upward, to 0.069 in 2015. our safety results to two industry benchmarks:
Management Diversity & Inclusion causes of STFs, has been extended in an effort to Our health and safety non-compliances also ORC HSE Strategies (45 broad global companies)
Compliance Transparency fully embed awareness regarding the prevention continue to trend upward, from 192 in 2014 to and the Pharmaceutical Safety Group (PSG) (14
Procurement Stakeholder of STFs with our employees. The top 10 locations 398 in 2015. This increase is due, in part, to the pharmaceutical companies). As of the time of
& Supplier Engagement with the highest incidence of STF-related LWDCs inclusion of several new categories not captured this report, the ORC HSE Strategies LWDC rate
Management
Financial conduct fall prevention site assessments, include in previous reporting (fire code, food service, 2015 benchmark was 0.40, and the PSG 2015
Human Rights Performance elevators, and health clinics). In 2015, we paid
fall prevention as a priority focus in the MAARS benchmark was 0.25. The Companys LWDC rate
joint assessments, and provide quarterly progress fines of $675 for violations related to an elevator was 0.08 in 2015.
reports to the EHS&S Leadership Council. violation at our Janssen site in Vacaville, California.
In collaboration with our safety culture initiative, See the Compliance and Data Summary sections Contractors
a StepRight video competition was held in 2015. of this report for five-year data trends.
The competition had four categories, one for each We do not track absenteeism at an enterprise We have a Healthy Future 2015 goal to achieve
of the four main causes of slips trips and falls: level. Occupational disease is also not tracked, a 15 percent improvement (a target LWDC rate
slippery surfaces, housekeeping, distractions, and since these types of diseases are not prevalent of 0.12) in contractor safety performance at all
stairs. The winning videos are being used to raise in our workforce. We have extensive wellness Johnson&Johnson manufacturing and R&D
awareness. programs for our employees; these are discussed
A three-year plan has been developed to in the Health-Conscious, Safe Employees 51. Calculated based on calendar days

2015 Citizenship & Sustainability Report 83


facilities. Unfortunately, we did not meet this goal; Future 2015 goal to achieve a 15 percent
our overall contractor LWDC rate trended upward improvement to a target rate of 4.7 CPMM in
from 0.12 in 2013 and 0.16 in 2014 to 0.18 in fleet safety performance worldwide. In 2015, our 2015 Results
2015. The Total Recordable Injury Rate (TRIR) for CPMM was 6.01, up from our 2014 performance
contractors working on-site was 0.6 in 2015, up
from our rate of 0.50 in 2014, in part due to the
of 5.95 and our 2010 baseline of 5.53. Over the
past year, our Consumer and Medical Devices Helmets
inclusion of data from recent acquisitions.
In 2015, we experienced no fatalities
and one partial finger amputation. Our
segments saw CPMM increase, while our

Our Misson
Pharmaceutical segment saw a
decrease in CPMM.
for Kids
LWDC rate increase was due, in part, to Our Injuries Per Million Miles Students from 44 schools, including
an increase in contractor incidents in our 0 fatalities (IPMM) rate decreased from 0.10 in
Pharmaceutical segment and the inclusion 0 injuries 2014 to 0.07 in 2015, well below our
Huong An School, Vietnam (below),
of contractor safety incidents from the 0 crashes target rate of 0.20. The Consumer took part in successful Helmets for
Contents newly integrated Synthes business. In the segment maintained its IPMM rate, Kids events in 2015. Average helmet
previous report two major actions were while the Medical Devices and
People announced: the creation of 11 global Pharmaceutical segments improved. use rate increased significantly
Places
standardized Permits-To-Work and the hiring These improvements are partially the result of from 2.2 percent to 90.7 percent
of two additional staff members to focus on the implementation of our full-ban mobile phone
contractor safety. Implementation of the Permits- policy, as well as increased driver/manager
in five new project schools and
Practices
To-Work is ongoing, and the staff members have accountability through SAFE Fleet goals, increased remained high at 92.5 percent at
Governance Labor Practices
been hired. As we have not achieved our goal, we management engagement and support, and the
& Ethical & Workforce 39 schools. Students or teachers
Performance will carefully analyze the current processes and addition of advanced safety features within some
Employee
Supply Chain Recruitment, target our weakest areas for corrective actions. fleets. To address high-risk driving behaviors, such were protected from potential head
Quality & Safety Development During the goal period (2010-2015), as speeding and harsh braking, we expanded our injury in 28 reported crash cases,
of Products & Retention our Worldwide Engineering and Technology telematics coaching programs in the U.S, and the
Customer Workplace Organization (WWETO) group created and results are promising. The objective is to assist our thanks to helmets donated by
Relationship Health & Safety
Management Health-Conscious,
implemented a construction safety strategy for drivers in identifying and improving unsafe driving Johnson & Johnson. Find out more
large capital investment projects, leading to a habits to reduce the risk of crash and/or injury.
Supply Safe Employees
significant reduction of accidents/incidents in this And to share what we have learned with
at AIP-Foundation.org.
Chain Risk Employee
Management Diversity & Inclusion challenging, fast-changing environment. During others, we have created a website,
Compliance Transparency this time period, the population of contractors www.e-safetyforall.com, with information on safe
Procurement Stakeholder working daily on WWE-managed projects driving, vehicle safety, and other topics.
& Supplier Engagement increased significantly, while their Lost Workday
Management
Financial Case Rate and Recordable rates decreased.
Human Rights Performance 52. For information on how data from acquisitions and
Fleet Safety 52, 53 divestitures are managed, please see the Report Profile section
of this report. In the U.S., limited data from a subset of Synthes
operations are not yet reflected in these numbers.
Many companies have large fleets of company 53. SAFE Fleet data are collected on employees of J&J and its
vehicles and Johnson&Johnson is no exception; affiliates who drive company-owned or leased, and personally-
some employees spend up to 50 percent of their owned vehicles for Company business. Employees in the latter
category are those who: 1. Drive for Company business as a
time driving on company business. Since 1995, regular part of their job, and 2. Employees who receive a car
our crashes per million miles driven (CPMM) rate allowance to purchase their own vehicle, and/or those who are
has decreased significantly. Our vehicle count reimbursed for vehicle expenses such as fuel, maintenance,
insurance and other miscellaneous charges associated with
decreased slightly in 2015, compared to 2014. vehicle upkeep, and/or those who receive a regular mileage
Unfortunately, we did not meet our Healthy allowance.

2015 Citizenship & Sustainability Report 84


Health-Conscious, Its an investment,
Safe Employees not a cost.
54

Alex Gorsky, Chairman and Chief


Executive, on employee health
and wellness.

Contents Caring for people,


People one person at a
Places time, is what we do.
Practices And it starts here,
with our employees.
Governance Labor Practices
& Ethical & Workforce
Performance Employee
Supply Chain Recruitment,
Quality & Safety Development Caring for the health and well-being of
of Products & Retention Johnson&Johnson employees is a key
Customer Workplace component of our Company culture. With a
Relationship Health & Safety
vision to have the healthiest employees, we
Management Health-Conscious,
Safe Employees continue to apply new and innovative approaches
Supply
Chain Risk Employee to encourage and engage our employees in
Management Diversity & Inclusion their own health (or personal best).
Compliance Transparency
Procurement Stakeholder The Healthiest Employees/
& Supplier Engagement Healthy Future 2015
Management
Financial
Human Rights Performance Key to sustainability is personal health and well-
beinga shared core value for every human TO DO GOOD AND BE WELL, JUST TRI T he idea of Do Good, Be Well encourages Johnson & Johnson
employees to compete in fitness-related fundraising events as Johnson & Johnson teams to help those in need, while
being. Health is also at the heart of our Company. improving personal health and wellness. Johnson & Johnson became a title sponsor of TriRock Philadelphia in 2013,
As our employees are considered to be our most doubled team J&J participation in 2014, and three-peated participation in 2015.
precious resource, caring for their health and
wellbeing is of paramount importance. This is that were set to provide an enterprise-wide focus A key first step to help employees understand
reflected in the three Healthy Future 2015 goals and support for the health and well-being of our their health status is to participate in a confidential,
global workforce. And since the initiation of these voluntary health risk assessment. In turn, this
54. This information is based on data gathered from goals in 2010, notable progress has been made, can inform them about changes they can make
Johnson & Johnson locations/operating companies worldwide
(367 locations total, with some companies with fewer than 50 confirming this established commitment to our to achieve a healthier lifestyle. With this in mind,
employees not included), unless otherwise noted. core values. in 2010, we set a goal for 80 percent of the

2015 Citizenship & Sustainability Report 85


Our Healthy Future 2015 goals challenged employees to be more health conscious
Make it
Count! Goal 155
Goal
90 percent of employees have access 90%
2010 34%
to Culture of Health (COH) programs
93 percent of employees have access to all 2015 93%
12 fully implemented COH Programs
Overall: Increase of 59 percent since 2010 2010 7% Outside U.S.
Outside U.S.: 91 percent access in 2015
2015 Outside U.S. 91%
(increase of 84 percent since 2010)

Goal 2 56
employee population to complete a health risk 80 percent of employees have
Contents completed a health risk assessment Goal
assessment and know their numbers. By the 2010 30% 80%
and know their numbers
end of 2015, this objective was reached with
People 92 percent of employees55 having taken this 92 percent of employees have completed a 2015 92%
health risk assessment
step through completion of personal biometrics
Places and a health risk questionnaire (a 62 percent Overall: 62 percent increase since 2010 2010 14% Outside U.S.
increase compared to 2010). Outside the U.S., Outside U.S.: 87 percent, with a 73 percent
Practices the participation rate is 87 percent, a 73 percent increase since 2010 2015 Outside U.S. 87%
Governance Labor Practices increase since 2010.
& Ethical & Workforce
Performance
The Make it Count! campaign helped to
Employee reach this goal, by demonstrating the advantages Goal 3 57
Supply Chain Recruitment, 80 percent of assessed population
of a healthy lifestyle through a series of dynamic
Quality & Safety Development are considered low health risk
of Products & Retention portraits and on-site engagements featuring Goal
73 percent of all profiled employees are 80%
Customer Workplace Johnson&Johnson employees from all continents
Health & Safety considered low health risk
Relationship and cultures. The images put a relatable face to
Management Health-Conscious, the objective and demonstrated the energy and Individual health risks trend better than 2015 73%
Supply Safe Employees national norms (in the U.S.) 92%
excitement that results from the knowledge of ones
Chain Risk Employee
Management Diversity & Inclusion health status. Alongside the images was the call to
Compliance Transparency
action to Make it Count! by knowing your numbers.
Procurement Stakeholder
Our Culture of Health Healthy Future 2015
& Supplier Engagement goal is for 90 percent of employees across
Management the globe to have access to a rich and fully
Financial
Human Rights Performance implemented set of health programs and services.56

55. Represents unique participation from 2013, 2014 and


2015. Total population does not include locations with fewer
than 50 employees; a total of 331 locations.
56. Tobacco free, HIV policy, health profile, employee
assistance, physical activity, healthy eating, medical
surveillance, health promotion, stress and energy
management, cancer awareness, return-to-work, travel health.
57. Have only zero-to-two (of 10) key health risks. Due to the
large increase in sample size and outside U.S. representation
(where health risks vary significantly), year-on-year data The Energy for Performance initiative in Dubai (left) and India.
comparisons do not reflect overall population health trends.

2015 Citizenship & Sustainability Report 86


These services are centered on prevention,
protection and performance. The goal illustrates
Johnson&Johnson is committed to
our commitment to taking positive action via advancing our workplace Culture of Health,
an environment that cultivates the right health
choices. At the end of 2015, we surpassed our and we are constantly striving to set the best
goal with 93 percent of Johnson&Johnson
employees being able to access the complete
standards both within and beyond our industry.
portfolio of Culture of Health programs (reflecting
an increase of 59 percent since 2010). Outside the
U.S., our progress has been even more significant,
with 91 percent access at the end of 2015an
increase of 84 percent since 2010.
Finally, we continue to monitor the overall
Contents health of our employees. Based on the 2015
employee health results, 73 percent of our
People global employees were characterized as having
a low health risk.57 While this result is below
Places
the aspirational goal of 80 percent established
in 2010, it is the result and real reflection of the
Practices
input from our employees who participated in our
Governance Labor Practices
& Ethical & Workforce
health assessment process in 2015. As expected,
Performance reaching out to a global population with a high
Employee
Supply Chain Recruitment, participation rate resulted in a true depiction of
Quality & Safety Development current health risks, setting a global base line. As
of Products & Retention we start 2016, having 73 percent of our global
Customer Workplace employee population considered as having a low
Relationship Health & Safety
health risk is a very strong indicator of the overall
Management Health-Conscious,
Safe Employees good health of our population. We will continue to
Supply
Chain Risk Employee monitor this lagging indicator as a true outcomes
Management Diversity & Inclusion measure for the success of our interventions with
Compliance Transparency emphasis on addressing the key drivers
Procurement Stakeholder for population health risks with a focus on total (spiritual, mental, emotional and physical) and training and 28,000 had attended keynotes.58
& Supplier Engagement well-being. explores how all these dimensions interact The training has made a difference
Management and impact our personal energy levels and participants have reported healthier eating,
Financial Another reflection of our commitment to
Human Rights Performance employee health and wellbeing is related to aligns the change process to an individual core increased movement, energy, focus, productivity
one of our key Culture of Health programs mission or purpose. In 2010, our aspirational and successful management of life engagement.
the Energy for Performance initiative (which goal was to reach approximately 50 percent of
stems from the Corporate Athlete program the Johnson & Johnson employee population Building on Success
developed by the Johnson&Johnson Human (57,000 employees) with the principles of Energy
Performance Institute). The program is unique for Performance (either through key note, half-, In the U.S., where our health programs have been
in that it sees health as multidimensional one-, two- or two-and-a-half day trainings). By in place the longest, efforts continue to enhance
2015, over 33,000 employees had received programs and services that can be applied globally
57. Have only zero-to-two (of 10) key health risks. Due to the in future years. One example is our ongoing focus
large increase in sample size and outside U.S. representation 58. Unique attendees for keynotes were not tracked, allowing
(where health risks vary significantly), year-on-year data for the possibility that some who attended keynotes also on work-life effectiveness. We continue to be
comparisons do not reflect overall population health trends. participated in trainings. recognized as leaders in this area and were

2015 Citizenship & Sustainability Report 87


invited to participate in the 2015 White House  xpanding select programs and services to
E
Council on Women and Girls and Council of our families and communities
Economic Advisers Convening on the Working
Families Agenda. As we work toward this 2020 vision, it is our hope
In the meantime, our Employee Assistance that this continued commitment will count toward
Program (EAP) continues to support our an even deeper understanding of how to care
employees, their families and our businesses as for and engage our employees in their health. By
we strengthen our culture of mental well-being cultivating this kind of environment, we bring the
with 99 percent of our employees having access ultimate reward of health and well-being to our
to EAP services globally. employees.
We understand that at the core of well-
being is the ability to effectively address the very Sharing Knowledge
important issues that often occur outside of the
Contents work place, striving to set the best standards both Johnson&Johnson is a recognized leader when
within and beyond our industry. We continue to it comes to employee health and well-being,
People commit to key work-life issues such as flexibility using our experience to assist in advancing
and our ever-evolving benefits offerings that well-being around the world through a variety
Places underscore our strong support for the modern-day of engagements and partnerships. We have
family, no matter what shape that family takes. built strong relationships with key business and
Practices These 2015 efforts also serve as a precursor to industry organizations in order to share our unique
Governance Labor Practices expanding work-life initiatives on a worldwide experiences and insights in this space. We share
& Ethical & Workforce basis. Johnson&Johnson is immensely proud our knowledge and expertise with businesses
Performance Employee to be at the forefront of driving the type of critical and communities around the world, encouraging
Supply Chain Recruitment,
change needed to align workplace policies with others to take on a leadership position when it
Quality & Safety Development
of Products & Retention the realities of the 21st-century family. comes to investing in employee health.
Workplace A few of these are highlighted below:
Customer
Relationship Health & Safety Looking Forward
Management Health-Conscious, Bipartisan Policy Centers (BPC) CEO Council on
Supply Safe Employees Looking to 2020, our vision continues to be to Health and Innovation
Chain Risk Employee have the healthiest workforce, allowing every Harvard Business School; Johnson&Johnson
Management Diversity & Inclusion The Pursuit of Wellness Business Case
employee to reach their personal best, wherever
Compliance Transparency
they are along the health continuum. With this 5th Asia-Pacific Wellness Forum (at Google Singapore)
Procurement Stakeholder in mind, 2020 enterprise-wide employee health
& Supplier Engagement American Heart Association CEO Roundtable
Management goals have been set. These goals build upon the
Financial CEO Roundtable on Cancer Prevention
Human Rights Performance foundation of the Healthy Future 2015 goals and
focus on: Rutgers Institute for Ethical Leadership:
2015 Ethical Leadership
 ontinued outreach to employees with the
C
Carter Center Productivity Summit
principles of Energy for Performance and
Global Wellness InstituteParticipating on
exploring how to sustain and embed these
Re-Defining Workplace Wellness
principles into the work-site culture
Asia-Pacific Economic Cooperation (APEC)
Innovation, personal choice and engagement Roundtable on Mental Health
via digital health tools
Life Science Innovation Forum (LSIF)/APEC
 ealthy eating, physical activity, mental well-
H Meeting on Health & the Economy
being and work-life effectiveness

2015 Citizenship & Sustainability Report 88


Employee Diversity & Inclusion Employee
Resource Groups
are inclusive and voluntary groups
that are organized around a particular
shared interest or dimension. These
groups have been initiated by employees
and usually focus on a shared interest
or characteristic, such as race, ethnicity,
gender or sexual orientation. Each groups
main intent is to create an open forum
Our Global Diversity & Inclusion Employee Resource Groups for idea exchange and to strengthen
Contents
Vision challenges us to maximize the Employee Resource Groups (ERGs) at
the linkage to and within diverse
power of diversity and inclusion to communities.
People Johnson&Johnson companies have partnered
drive innovation, superior business with the Office of Diversity & Inclusion in creating
Places an open forum to exchange ideas and to AALC African American Leadership
results and sustainable competitive strengthen the linkage to and within diverse Council
Practices advantage. communities. Our enterprise-wide ERGs are ADL Alliance for Disability Leadership
Governance Labor Practices uniquely positioned to provide key insights and
& Ethical & Workforce Differences in age, race, gender, nationality, sexual strategically focused on driving better outcomes AMENAH Association for Middle Eastern
Performance Employee orientation, physical ability, thinking style and and North African Heritage
on behalf of our people, our marketplace and our
Supply Chain Recruitment, background of our employees enhance our work communities. We estimate these groups engage ASIA Asian Society for Innovation and
Quality & Safety Development environments, and allow us to better connect with
of Products & Retention almost 13,000 employees across 186 U.S. Achievement
Workplace the health needs of people in communities around chapters and 18 non-U.S. chapters.
Customer GLOBAL Gay and Lesbian Organization
Relationship Health & Safety the world. Attracting, developing and retaining a See Labor Practices & Workforce for
for Business and Leadership
Management Health-Conscious, base of employees that reflects the diversity of workforce diversity data. LA12 For more
Supply Safe Employees our customers is essential to our success, which information, visit our website. HOLA Hispanic Organization for Leadership
Chain Risk Employee hinges on relationships with diverse professional and Achievement
Management Diversity & Inclusion
and patient organizations, civic groups and
Compliance Transparency HONOR Helping our Neighbors with Our
suppliers. See the Procurement & Supplier
Procurement Stakeholder Resources
Management section of this report for more
& Supplier Engagement
Management information on supplier diversity. MILLENNIAL Bridging Generational
Financial Diversity
Human Rights Performance
SAPNA South Asian Professional Network
and Association

VLC Veterans Leadership Council

WLI Womens Leadership Initiative

2015 Citizenship & Sustainability Report 89


Transparency

Contents A recently released SustainAbility Product Transparency

report, entitled 2016 Global Trends: As our approach to transparency evolves, we continue to track our efforts specified as a Healthy
Future 2015 goal to have all major 59 brand (currently numbering 21) websites share product
People Impacts for Corporate Leadership sustainability information. In 2015, all major brands (100 percent) had some level of external
Places identified transparency as one of transparency to address their customers/consumers most relevant questions. In addition, our
12 global sustainability trends shaping Consumer segment provides information on HealtyEssentials.com. Links to the major brand
Practices websites can be found below.
the economic, political, and social
Governance Labor Practices
landscape and business agenda
Pharmaceutical
& Ethical & Workforce
Performance Employee in 2016. INVEGA
SUSTENNA/ INVOKANA/
Supply Chain Recruitment, IMBRUVICA PREZISTA REMICADE SIMPONI
(ibrutinib)
XEPLION INVOKAMET
(darunavir) (infliximab) (golimumab)
Quality & Safety Development (paliperidone (canagliflozin)
& Retention In 2014, we initiated efforts to expand our public palmitate)
of Products
Workplace reporting to further satisfy stakeholder interests
Customer
Relationship Health & Safety and reduce the need for questions from various ZYTIGA
STELARA VELCADE XARELTO
Management Health-Conscious, groups that might lead to selective disclosures. (ustekinumab) (bortezomib) (rivaroxaban) (abiraterone
Safe Employees acetate)
Supply These efforts continue and are reflected in our
Chain Risk Employee 2015 report in the forms of increased data around
Management Diversity & Inclusion
energy and carbon, water, quality and safety of
Compliance Transparency
products, and compliance. Medical Devices
Procurement Stakeholder
& Supplier Engagement
Management DePuy Synthes Ethicon, Inc. Johson&Johnson
Sterilmed, Inc.
Financial Companies Vision Care, Inc. LifeScan, Inc.
Human Rights Performance

Consumer

Neutrogena o.b. Le Petit


Aveeno Johnsons Listerine
Marseillais

59. Major brands determined by each business segment based on a combination of factors, including sales, stakeholder
interest in sustainability considerations, etc. List of major brands for Medical Devices has been adjusted between 20132015 from
eight to five, and for Janssen in 2015 from nine to 10.

2015 Citizenship & Sustainability Report 90


Stakeholder
Engagement
G4-24G4-27

Contents We believe that business is


strengthened by the level
People of engagement it has within the
Places communities where it operates,
as well as with the various internal
Practices and external stakeholders in social,
Governance Labor Practices
& Ethical & Workforce environmental and governance
Performance
Supply Chain
Employee
Recruitment,
matters. As the largest broad-
Quality & Safety Development based healthcare company,
of Products & Retention
Workplace our engagement spans a wide
Customer
Relationship Health & Safety range of stakeholders that allows CARE INSPIRES CARE The global platform CARE INSPIRES CARE, or CARINHO INSPIRA
Management Health-Conscious,
Supply Safe Employees us to serve the needs of more CARINHO in Portuguese, encourages selfless acts of carebig and smallwith the goal of making the
world a more caring place. Here, an employee volunteers at the nonprofit care facility Casa Ondina Lobo
Chain Risk Employee people. in So Paulo during the 2015 Semana do Carinho, which included a special celebration with food, music
Management Diversity & Inclusion and dancing for the elderly.
Compliance Transparency We consider a variety of factors before engaging
Procurement Stakeholder with stakeholders to ensure the most optimal
& Supplier Engagement
outcome. Some of these factors include: The potential for the stakeholder group to challenge, disproportionately affecting the most
Management
Financial have a positive impact on other stakeholder vulnerable members of populations across the
Human Rights Performance The possible alignments of our goals and
groups, our customers, the public at large and globe. As part of our commitment to advance
values with that of the stakeholder group;
Johnson&Johnson; global public health, Janssen is partnering
Our ability to improve health conditions; with governmental, academic and advocacy
Our ability to effectively participate in the
Our ability to improve social, environmental or organizations that are able to help provide
engagement.
other conditions; solutions to those who are most affected.
Here are a few examples: The Company is working in collaboration with
The opportunity that we and the stakeholder
several major partners, including the United States
group have to learn from one another; Multi-Stakeholder Engagement Agency for International Development (USAID),
The identity, including the composition and Tuberculosis (TB) and its multi-drug resistant the Global Drug Facility (GDF) and Pharmstandard
values, of the stakeholder group; form MDR-TB present an ongoing global health to take major steps toward ending TB.

2015 Citizenship & Sustainability Report 91


Donate a Photo
Johnson&Johnson has been dedicated to
helping people and causes all over the world. One
of the creative ways we are engaging stakeholders
in the U.S, U.K. and Asia-Pacific region is through
our platform Donate a Photo. This social media
app allows the Company to raise more
awareness for causes and connects people
to nonprofits, helping everyone make an
even bigger difference.
For every photo shared through the
app, Johnson&Johnson donates $1 to the
designated cause. Every cause in Donate a
Contents Photo sets a goal. When a causes goal is
met, another cause takes its place. Some of
People the organizations supported include:
Places Foundation of the National Student
Nurses Association
Practices DoSomething.org
Governance Labor Practices U.S. Fund for UNICEF
& Ethical & Workforce
Girl Up
Performance Employee
Supply Chain Recruitment, Nothing but Nets
Quality & Safety Development Operation Smile
of Products & Retention
Customer Workplace P H O T O S H E L P H E A L A C H I L D S S M I L E Every child suffering from cleft lip or cleft palate deserves
Health & Safety For more examples of stakeholder engagement,
Relationship access to exceptional medical solutions. For every photo donated, Johnson & Johnson gives $1 to
Management Health-Conscious,
visit the Our Stakeholders section of our website.
Operation Smile. That $1 will help Operation Smile give children around the world with cleft lip, cleft palate
Supply Safe Employees or another facial deformity the critical supplies they need for life-changing surgery. It takes 240 photos to
Chain Risk Employee provide a safe surgery that will help one child eat, speak and smile with confidence. Community Engagement Through
Management Diversity & Inclusion Volunteerism
Compliance Transparency Employee Engagement ambassadors. The I Care. I Do. movement is
Procurement Stakeholder I Care. I Do. is an employee engagement and intended to be two-fold: both a grassroots effort Giving back is woven into the fabric of
& Supplier Engagement awareness program built around sustainability and a leadership-supported program. To facilitate Johnson&Johnson. Employees of the
Management
Financial ambassadors who make a commitment to peer-to-peer learning, ambassadors are provided Johnso