J&J Straddles Profitability and Health of People & Planet

Johnson & Johnson is promising a “relentless focus” on improving the health of people and the planet.

In its 2023 Health for Humanity report, J&J reveals a host of improvements in its sustainability performance, supply chain management and health treatments.

J&J is one of the world's largest and most comprehensive healthcare companies, operating in 60 countries and selling products in 175 countries. In 2023 it reported revenues exceeding US$94bn.

Company CSO Paulette Frank said: “Our relentless focus on solving the world’s toughest health challenges inspires our commitment to environmental stewardship – because human health and environmental health are inextricably linked.

“From our global, science-based approach to climate action, to our community-based support for health workers and clinics on the front lines of climate change, we put the patient and the planet at the centre of our sustainability efforts.”

The report says that, to “support a healthy environment”, J&J focuses its efforts on areas including decarbonising its operations and value chain.

In 2023, J&J submitted new climate goals to the Science-Based Targets initiative to reflect J&J’s new environmental footprint following the creation of Kenvue as a separate company. The goals which were validated by SBTi.

Since 2021, the company’s Scope 1 & 2 emissions have dropped by 23%. The target is 44% by 2030.

J&J also has a target of sourcing 100% of its electricity from renewable sources. The global figure is currently 87%, including 100% in the US, Canada and Europe.

A third target is for 80% of  J&J’s suppliers to have SBTi-approved targets by 2028. In 2023, the figure stood at 28%.

The report says: “Through our Onward Program, we help educate suppliers on the business reasons for setting science-based climate goals.

“Through the Energize Program, we are collaborating with peer companies to provide training and resources to support renewable energy adoption for pharmaceutical suppliers.”

J&J product sustainability

The report says: “We are committed to delivering high quality products for patients and customers, while also working to improve our environmental footprint.”

In terms of packaging, efforts include:

• Expanding the use of fibre-based pulp injection moulding in the secondary packaging of self-injectable devices. At the end of 2023, 30% of these devices used PIM trays
• Launching Ethicon procedure kits in the EMEA region, reducing package weight by 38% and packaging components by 50%.

On circularity:

• J&J MedTech’s hospital recycling programme for single-use medical devices expanded in 2023 to 11 countries
• The Safe Returns scheme for innovative medicine expanded from the US and Switzerland to include Norway.

Supply chain innovation

J&J says it is focusing energy on deploying advanced digital technologies to modernise healthcare and advance sustainability through environmental efficiencies.

The company has introduced a resilience dashboard, which analyses risks across the value chain.

The report says: “The dashboard’s data allows J&J to elevate supply chain resilience into the strategic decision-making process.”

J&J is also taking the lead in adopting 4th Industrial Revolution principles – deploying digital technologies to make bigger and faster leaps forward in sustainability, productivity and efficiency.

In 2023, its innovative medicine plant in Xi’an, China, was twice recognised by the World Economic Forum: first for incorporating 4IR into daily manufacturing and supply chain operations, second for using 4IR to advance its sustainability efforts.

Dapo Ajayi, VP, Innovative Medicine Supply Chain, J&J, said: “We take great pride in embracing 4th Industrial Revolution technologies across our entire supply chain and Xi’an is the latest example of how we’re leading the way on the manufacturing and sustainability fronts.”

Smart technologies at Xi’an have increased productivity by 40%, reduced product non-conformance rates by 60% and operating costs by 24%, while contributing to a 26% cut in GHG emissions in three years.