1. A Corporation’s Positive Impact On the Environment MBA 241 | Dr. Claudia Bridges Anamika Singh Jane Finnegan Margaret Hwang RekhaSrivatsan 1

2. Johnson & Johnson – An Overview Founded in 1886 in New Brunswick, New Jersey Incorporated on November 10, 1887 Family-owned until listed on the NYSE in 1944 under the symbol JNJ 250 operating companies in 57 countries Approximately 117,000 employees worldwide 2

3. Johnson & Johnson – an Overview The Johnson & Johnson Family of Companies is organized into three business segments: Consumer Health Care Pharmaceuticals Medical Devices and Diagnostics 3

4. Johnson & Johnson Products 4

6. Have capability to truly differentiate themselves but choose not to do so.Low Differentiability on Greenness Low High Ginsberg, Choosing the Right Green Marketing Strategy, 2004. 5

7. Johnson & Johnson – Water Use Johnson & Johnson’s Healthy Planet Goals 2010 Monsoon Rainwater Harvesting Environmental Auditing Water Conservation Partnerships Manager of Environment, Health and Safety (EHS) for Johnson & Johnson, Achal Gupta SpiraxSarco Steam Supply Audit 6

8. Johnson & Johnson – Environmental Literacy Think back… way, way, way back… To week 3 Sustainability and Competitive Advantage Respondents of the survey stated that: Lack of a common fact base about relevant issues Sustainability goals too loosely defined not collectively understood within an organization 7

9. The article also stated that: structured gathering and sharing of facts about sustainability is needed sustainability efforts will become more cohesive when employees, managers, and leaders are all on the same page Employee interest is a driver sustainability efforts are becoming more integrated with company culture Johnson & Johnson – Environmental Literacy 8

10. Report conducted by the National Environment Education Foundation stated that: “employees play an essential role aligning day-to-day operations with corporate values Responding to environmental challenges fundamental environmental knowledge cannot be isolated within an organization, but must be pervasive Johnson & Johnson – Environmental Literacy 9

11. “I thought your project was about Johnson & Johnson?” Johnson & Johnson is a large, multinational corporation that has embraced educating their employees on environmental and sustainability issues Johnson & Johnson – Environmental Literacy 10

12. How can an corporation of 100,000 employees spread the word about sustainability? Make Environmental Literacy as on of the fundamental goals Healthy Planet 2010 Goals J & J employed informal environmental goals for over 15 years Part of the culture of the company Johnson & Johnson – Environmental Literacy 11

13. Low bearing fruit were taken after 15 years Time to step it up a notch! Increased environmental literacy plan was implemented in layers First campaign these revolved around sustainable forestry Johnson & Johnson – Environmental Literacy 12

14. Information about the initiative was shared through a myriad of communication mediums Websites, web meetings, e-learning materials, YouTube videos, marketing collateral, and conferences All for the benefit for employees to learn more about sustainable forestry Key was for each facility to adapt the message for the employee population Johnson & Johnson – Environmental Literacy 13

15. TishLascelle, senior director of Stratey and Assurance sums it up nicely: know the corporate culture frequent messages, in a variety of media, work well messages need to be repeated and connected to the day-to-day operations of the company Johnson & Johnson – Environmental Literacy 14

16. Johnson & Johns0n – Paper and Packaging Distinctive packaging: Sustainable packaging Recyclability, reusability & use of recycled content Minimizing raw material use Logistics efficiency Carbon & energy intensity Use of alternative raw materials 15

17. Johnson & Johns0n – Paper and Packaging Distinctive packaging: Sustainable packaging Recyclability, reusability & use of recycled content Minimizing raw material use Logistics efficiency Carbon & energy intensity Use of alternative raw materials 16

18. Initial drawbacks Goal: Using 30% post consumer recycled high-density polyethylene in baby lotion bottles Found it to be compromising on Product’s quality; hence delayed it 17

19. Facts about Johnson & Johnson’s Packaging 93 percent of its packaging contains more than 30 percent post-consumer recycled content or fiber from certified forests. Reduce energy consumption and paper in their packaging = average savings of $30 million per year. Eliminated 84% of secondary and tertiary PVC packaging by switching to the use of safe non-polycarbonate containers. 18

20. Band-Aid Packaging Box Example Made with materials certified by the International Forest Stewardship Council 19

21. Partnerships 20

22. Energy Use- Carbon DioXide Reduction Company Goals: Absolute reduction in CO2 emissions of seven percent from 1990–2010. Reduce fleet total CO2 emissions per mile driven by 30 percent International Initiatives: Kyoto Protocol (US & China are not signatories) National Initiative: EPA- GHG Reporting mandatory 21

24. Co-generation: On-site generation of electricity and recovery of the waste heat for overall efficiencies of 80%

25. Renewable electricity purchases

26. Carbon Trading and Sequestration

27. On-site renewable energy that produces no CO2emissions 22

29. Received top honor for it’s overall commitment to environmental stewardship

30. Facility installed 203 KW AC photovoltaic system- offsets 10 % annual electricity consumption and rest 90 % through existing cogeneration system

31. Carbon Neutral Facility with ISO 14000 & LEED Certification23

32. McNeil’s Healthcare 24

33. Fleet Emissions Target of reducing emissions by 30 % per mile driven. Fleet of 978 hybrid vehicles till March 2008 75 % of suppliers members of Smart Way certified program Suppliers adopted Carbon Disclosure Project (CDP) in January 2009 Target yet to be met 25

35. Initiate Carbon Sequestration through Terrestrial, Ocean and Geological methods

36. Effective packaging to reduce round trips26

37. PROCESS OF GEOLOGICAL SEQUESTRATION 27

40. Paper and PackagingPorter, Kramer. Strategy & Society. (2007) 28

41. Questions 29