Johnson & Johnson to boost sustainability

3 May 2013

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4 May 2013 | Helen Gilbert

Johnson & Johnson has set out plans to boost sustainability and corporate social responsibility activity inside and outside of its business.

The healthcare company’s 2012 Citizenship & Sustainability report outlined two key goals around supplier partnerships. The first was to “establish sustainable procurement criteria and processes to catalyse improved supplier performance and diversity”; the second was to “reinforce its human rights policies, processes and education with suppliers to ensure these rights are respected in all our engagements”.

The company, which has an approximate annual spend of $30 billion (£19.3 billion) said 41 per cent of all strategic suppliers had two or more publicly reported sustainability goals (such as waste, energy, water and safety) as of December 2012.

Progress had also been made completing human rights tuition for all relevant employees - with 76 per cent of procurement professionals trained by the end of 2012, the report said.

In addition, the document referred to efforts that were currently underway to ensure all suppliers in high-risk countries confirmed awareness of and conformed to Johnson & Johnson’s standards for human rights provision.

David Radeke, vice president procurement, Johnson & Johnson supply chain, said: “Our hope is that in partnering with suppliers that share our commitment to sustainability, we can achieve mutually beneficial improvements. This is about making our procurement activities more sustainable, and sustainability is an investment in our future.”

The report also outlined the work the company has been doing to enhance its partnerships with providers over the past year. In October 2012, Johnson & Johnson held its first ‘enterprise-wide’ supplier roundtable event, where 50 of it top vendors met at its world headquarters in New Brunswick, New Jersey. Discussions focused on ensuring quality, reliability, cost competitiveness and areas such as supplier enabled innovation, supplier diversity and sustainability.

CPO Hans Melotte said: “It’s important to recognise how much of our business is supported and driven by suppliers we partner with around the world. These companies are essential to our business and therefore we expect that they share in our values and help us provide the products and services our patients and customers use and rely on every day.”

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