Johnson & Johnson (NYSE: JNJ) is a global American pharmaceutical, medical devices and consumer packaged goods manufacturer founded in 1886. Johnson & Johnson is one among the Fortune 500. The corporation’s headquarters is located in New Brunswick, New Jersey, United States. The corporation includes 250 decentralized companies with operations in over 57 countries. Its products are sold in over 175 markets. Johnson & Johnson's brands include numerous household names of medications and first aid supplies.
Among its well-known consumer products are the Band-Aid Brand line of bandages, Tylenol medications, Johnson's baby products, Neutrogena skin and beauty products, Clean & Clear facial wash and Acuvue contact lenses . The company believes that it is responsible to the communities in which its employees live and work and to the world community as well. As a large, multinational organization, Johnson & Johnson's environmental footprint is complex and far-reaching. The company strives to take action in all its facilities to minimize this footprint.
Johnson & Johnson has long been committed to energy conservation and improving the health of the planet . J has not always been vocal about its socially and environmentally responsible efforts, even it has gotten attention for its sustainability strategies, including being #3 on Newsweek magazine’s Green Rankings List of green companies . On a scale of 1 to 100, AstraZeneca and Johnson & Johnson lead the first-ever review of the pharmaceutical sectors to rate above 70 in a recent survey of sustainability practices by Climate Counts.
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Climate count evaluates firms’ commitments in four areas: Whether they have measured their carbon footprint If they reduced their impact on global warming If they have supported or blocked climate legislation or policy To what level they have publicly disclosed their climate actions Johnson & Johnson scored highly in all sectors except for measuring its own carbon footprint, an area in which it scored 12 out of 22 . Some interesting facts about J: It’s the second largest producer of solar panels in the U. S. it’s the largest corporate user of hybrid vehicles, and it gets 30% of its energy from renewable sources. It’s also done a lot to reduce its water footprint, reduce PVC content in products, sell waste as raw materials, and use recycled paper in product packaging (Gonzalez, 2009).
Mission Johnson & Johnson does not have any mission statement. For more than 60 years, document known as “Our Credo” has guided in fulfilling responsibilities to customers, employees, communities and the stockholders . Johnson & Johnson’s “Our Credo” is attached in Appendix- B. The company continues to stand by that credo for 118,700 employees at its facilities in the United States and in 54 countries around the world. It states, "We are responsible to our employees, the men and women who work with us throughout the world. Everyone must be considered as an individual. We must respect their dignity and recognize their merit. They must have a sense of security in their jobs. Compensation must be fair and adequate, and working conditions clean, orderly and safe. Employees must feel free to make suggestions and complaints . The philosophy at Johnson & Johnson is that "All accidents and injuries are preventable. An accident is the end result of a unique chain of events and conditions. The role of all Johnson & Johnson employees is to foresee these acts and intercept them before they occur . At Johnson & Johnson, continuous improvement is the basis for ongoing operations. As per Joseph Van Houten, worldwide director of Planning, Process Design and Delivery, "Johnson & Johnson is never satisfied with maintaining the status quo.
Each employee has a responsibility to identify, and has possibility to eliminate hazards. In areas where they cannot be eliminated, employees are expected to be aware of hazards and safeguard themselves and others around them”. As at many companies with stellar safety programs, Johnson & Johnson management believes safety is everyone's responsibility. Employees are expected to be concerned about their own safety and that of fellow employees, families, customers, contractors, visitors and the communities in which Johnson & Johnson operates. Johnson & Johnson’s vision is: bringing science to the art of healthy living. ” The safety tenets embodied in the credo have been translated into a safety vision for the corporation that commits Johnson & Johnson to being the world leader in health and safety by creating an injury-free workplace. Employee-related activities Johnson & Johnson has a wealth of programs and activities to support a diverse, inclusive culture which acts as an essential key to business success. Affinity groups are voluntary, employee-driven groups that typically focus on a shared interest.
These groups provide support and networking opportunities such as mentoring, community outreach, career development and cultural awareness activities. Johnson & Johnson companies offer formal or informal mentoring programs to expand opportunities and support development of a diverse workforce. A number of affinity groups offer programs that match up new members of the work community with experienced leaders who serve as mentors. Johnson & Johnson Diversity University is a dynamic online resource designed to help employees understand and value differences and the benefits of working collaboratively to meet business goals.
The Office of Diversity & Inclusion was established to foster recognition of unique backgrounds, talents and abilities as an important competitive advantage within Johnson & Johnson companies. This helps develop strategies to achieve the global diversity vision, helps operating companies share and leverage their best diversity practices, and reports to the Board of Directors and the Executive Committee on diversity within the companies .
Johnson & Johnson offer products and information targeting baby care, skin and hair care, oral care, nutritionals, women’s health, pain relief, wound care &topical, vision care and Over-the-Counter Medicines. Baby products include Baby Powder, Baby Oil, Baby Cream, Baby Lotion, Baby Shampoo, Baby Hair Oil, and Baby Soap . Skin Care products include Clean and Clear Face wash, Johnson Buds, Neutrogena, Aveeno and Ambi Skincare. Oral Health Care products include Listerine, Listerine Whitening, Reach, Efferdent, and Rembrandt. Nutritionals include Splenda,
Viactiv, Benecol, Lactacid and Sun Crystals. Women’s Health products include Stayfree, Carefree, K-Y, Monistat, e. p. t and O. B. Wound Care & Tropical products include Band Aid, Savlon, Johnson Plast, Bengay, Caladryl, Neosporin, Cortaid, Tucks Hemorrhoidal Ointment, Daktarin, and Purell. Vision Care products are Visine and Acuvue Brand Contact Lenses. Over-the-Counter Medicines include Tylenol, Sudafed, Mylanta, Zyrtec and Zyrtec-D12-Hour, Motrin, Imodium, Pepcid, Nicorette, Benadryl, Rolaids, and Dolormin . The figure 1 in Appendix-A shows some of the different products of Johnson & Johnson. J&J’s Strategies in Reducing Environmental *Footprint: Johnson & Johnson has high standards for operating divisions in the area of environmental responsibility- striving to reduce its environmental impact. The figure 1 gives an idea on the investments made in lowering its Carbon Energy Efficiency. Highlights of Johnson & Johnson green features include: Using renewable, efficient, and clean sources of energy. Reducing Green house gases from manufacturing units Reducing water use on a daily basis. Implementing a forward-looking building design and using natural materials. Purchasing green products/packaging, from cleaning supplies to computers. Reducing Carbon footprint - Implementing a robust recycling program. - Making tools available to help employees implement green practices at work and at home
Green Power: Johnson & Johnson (J&J), a long-time green energy purchaser, has surpassed the 400 million kWh per year mark for its annual renewable energy credit (REC) purchase. The total purchase size of about 435 million kWh per year makes the healthcare products provide the nation’s eighth largest purchaser, according to the EPA’s Green Power Partnership program.
The purchase of various RECs from wind and biomass facilities represents about 38% of the company’s U. S. electricity use . Johnson & Johnson has won numerous environmental awards over the past 15 years, including the Green Power Partner of the Year in 2003, 2005, 2006, 2007and 2009. Among its environmental initiatives is its goal to reduce greenhouse gas emissions to 7% below 1990 levels by 2010. The company’s renewable energy portfolio also includes direct purchases of bundled green energy from low-impact hydro and wind power.
In addition, the company has now installed 4. 1 megawatts (MW) of solar photovoltaic installations at its U. S. facilities. Lastly, the company’s unique 3 MW onsite landfill gas project In Mountain View, California became fully operational in 2007. Under a 15-year gas purchase agreement with the City of Mountain View, ALZA Pharmaceuticals, a J&J subsidiary, uses the landfill methane gas to power three research and development buildings in the area adjacent to the landfill site.
Heat and Power from Landfill Gas
To address volatile, escalating energy prices and concerns about climate change, many large energy consumers including Johnson & Johnson are looking for stable, nonpolluting sources of energy. Besides solar and wind power, landfill gas (LFG) is also an economically viable renewable resource but is often overlooked. 2. 2. 1 Johnson & Johnson’s LFG Project: Johnson & Johnson committed to reducing its GHG emissions by 7 percent below its 1990 levels by 2010. Each of the company’s business units has an emissions target whose progress is tracked annually .
ALZA pharmaceuticals, a division of J&J, needed to reduce its GHG emissions by 21. 5 million pounds per year or risk failing meet their target. ALZA’s research and development facilities in California are adjacent to the Shoreline Landfill. The figure 2 in Appendix A shows the layout of ALZA. The LFG produced in the Shoreline Landfill by decaying waste was captures and flares in accordance with EPA regulations for large landfills. ALZA and the city of Mountain View signed a 15-year contract for the sale of the gas, which ALZA uses to power three 970-kilowatt generators at each of its research and development buildings in the area. Electricity from the generators powers the buildings, and the heat captured from the exhaust is used to provide hot water.
The System: ALZA takes possession of the gas before the existing flare and processes it on-site at the landfill using a standard moisture elimination system. Three 60-horsepower blowers maintain the gas at a pressure of 6 pounds-per-square-inch (psi) as it passes through a chiller. The temperature of the gas at the inlet is 70°F, and when it is exposed to the colder temperatures in the chiller, the moisture in the gas condenses and falls out of the gas as droplets.
The system removes 90 percent of the moisture in the gas and is capable of processing 1,300 standard cubic feet of gas per minute. Although the landfill generates gas continuously throughout the year, ALZA’s electricity needs vary, and sometimes during the winter months the system generates more electricity than the buildings need. The system is expected to generate 24,000 megawatt-hours of electricity per hour of natural gas consumption.
Solar Energy: A Solar photovoltaic (PV) system provides the clean, reliable, renewable energy. Johnson & Johnson has installed more than 4. MW of solar photovoltaic generation at ten locations in US. According to WRI as of May 2008, J&J is the second largest user of on-site solar energy in the United States .
1Energy and Atmosphere in J&J PRD, San Diego, California Johnson & Johnson Pharmaceutical Research and Development (J&J PRD) facility in San Diego, California achieved Leadership in Energy and Environmental Design (LEED) and won several awards for their energy and environmental performance. The solar photovoltaic (PV) system provides the clean, renewable energy at J&J PRD as shown in Appendix- Figure 3.
J&J PRD achieved a 2. 2 megawatt from co-generation system so far. J&J PRD roof mounted DC solar PV system which generated a 243 Kilowatt (KW) offsetting 10 percent of the annual electricity consumption in addition to its 90 percent offset from the co-generation system. This shows that J&J PRD has completely offset the building’s net annual energy consumption and making the facility carbon neutral. This Solar PV system is expected to generate annual energy savings of approximately $500,000 depending on the electric rates.
J&J PRD solar energy generates power equivalent to power consumed by 80 homes . In Johnson & Johnson since 1990, various company projects have focused on energy efficiency improvements for lighting, facility building envelopes, HVAC, compressed air, office equipment, fuel sources, and heat recovery. From 1990 to 2000, $12. 5M has been saved through these projects and 107,000 metric tons of CO2 have been prevented. Johnson & Johnson's GHG reduction efforts began with an internal goal adopted in 2000.
Each operating company is responsible for meeting GHG reduction goals of 4 percent by 2005 and 7 percent by 2010. Many reductions were identified through Johnson & Johnson's Enhanced Best Practices (EBP), which include 245 energy-saving opportunities for affiliates to consider . Johnson & Johnson also partners with organizations aiming to set the standard for GHG management such as EPA's ENERGY STAR®, Green Power Partnership, and Performance Track; World Resources Institute (WRI); World Wildlife Fund; and the Carbon Disclosure Project.
The company has received numerous energy and environmental awards including EPA's Green Power Partner of the Year, The California Governor's Award for Sustainable Practices, New Jersey Clean Energy Business Leader of the Year, and The Climate Group Low Carbon Leader . J&J’s way of approach to GHG Management: Johnson & Johnson's Inventory Management Plan (IMP) has been integrated into its internal GHG Protocol. Using the IMP has given the company's internal protocol much more structure and clarity, making it easier to explain to those employees new to GHG management.
Johnson & Johnson has various processes in place to track the progress of its goal. The company's Energy Tracking System (ETS) is solely dedicated to tracking energy and emissions goals. Through this system, affiliates report energy usage, cost, and projects with any applicable savings. The ETS utilizes the latest emissions factors from WRI and EPA, and the system adjusts when new factors are published . The largest single component responsible for the emissions reduction is the purchase of renewable energy certificates (RECs) for wind power.
The emission reductions due to the RECs purchases in 2004 accounted for 170,000 metric tons of CO2 equivalent, offsetting 29 percent of the company's emissions from electricity use and 19 percent of the total corporate emissions in that year. The continued implementation of Johnson & Johnson's energy efficiency best practices and new facility design criteria have also been important contributing factors to its emission reductionsJanssen is driven by dedication to product innovation, customer focus, and organizational excellence. The Janssen Headquarters in Titusville site has been able to reduce energy use by 11% and reduce its carbon footprint by 5,019 metric tons annually; (over 75% reduction) through rigorous building commissioning and maintenance, installation of a 500 kilowatt rooftop solar photovoltaic system as shown in figure 4 in Appendix-A, and the purchase of green power and renewable energy credits (REC).
This is the equivalent of planting approximately 1,500 acres of trees or removing almost 1,000 cars from the roadways . Johnson & Johnson generates 24 percent of its corporate electricity demand from renewal energy sources. Janssen has offset its CO2 emissions by installing the solar system on its Titusville facility .Electricity Johnson & Johnson World Headquarters building was originally built with an all electric heating and cooling system and limited operating flexibility.
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