GREENING THE SUPPLY CHAIN AT JOHNSON & JOHNSON

SUPPLY CHAIN MANAGEMENT• Supply Chain• Supply Chain Management

• Green Supply Chain Management“Integrating environment thinking into supply chain management, including product design, material sourcing and selection, manufacturing processes, delivery of the final product to the consumers, and end-of-life management of the product after its useful life".

• GSCM = Green purchasing + Green manufacturing/materials management + Green Distribution / marketing + Reverse logistics.

JOHNSON & JOHNSON

• American multinational founded in 1886 by Johnson brothers.• Medical devices, pharmaceutical and consumer packaged goods

manufacturer.• 250 subsidiary companies with operations in over 57 countries and

products sold in over 175 countries• The company operates is three broad divisions; Consumer Healthcare,

Medical Devices and Pharmaceuticals.• Values

GREEN SUPPLY CHAIN MANAGEMENT AT JOHNSON & JOHNSON

• Earthwards Campaign by Johnson and Johnson• This step was taken by the company to double down the environmental,

health and social impacts which were caused by the company in the processes of supply chain management.

• Framework with various standards• Product Innovation• Some of the products receiving Earthwards recognition

• Band Aid : Bandages• TruMatch : Knee System• Neutrogena : Towelettes

R&D DESIGN &PACKAGING SOURCE MAKE MARKET USE/DISPOSE

SUPPLY CHAIN AT J&J

RESEARCH AND DEVELOPMENT BY J&J

• Objective : Sustainable product development

• Sustainable Goals• Energy Reduction • Waste Reduction • Community and Human Rights Investment s• Workforce Injury/ Illness Reduction • Workforce Wellness • Water Use Reduction

• Business Segments• Pharmaceutical• Medical Devices• Consumer

R&D ACROSS BUSINESS SEGMENTS

• Pharmaceutical• Eco-Cooler• Green Chemistry and Green Technology

• Medical Devices • Product Recycling and development

• Consumer• Palm Oil• Global Aquatic Ingredient Assessment

MORE IN R&D

• Waste reduction• Emerging issues• External organization participation

2012 2013 2014

7,170,998

11,342,149

9,421,194

5,350,283 5,625,989 5,506,859

Sterilmed Waste Reduction

Sterilmed Devices CollectedSterilmed Devices Reprocessed

DESIGN AND PACKAGINGObjective:

o to optimize the packaging needed to deliver the producto to increase the use of more sustainable packaging materialso to design for the next life

DESIGN AND PACKAGINGStandardized packaging solution

o increased use of sustainably sourced papero increased post-consumer recycled (PCR) content for papero elimination of polyvinyl chloride (PVC)o Reduced packaging size and weight

• Primarily focused on

o PVC eliminationo recycling of product packaging

DESIGN & PACKAGING• As a producer of thousand goods, the use of paper and paper-based packaging is relevant

to Johnson & Johnson

• They addressed this in terms of three basic objectives

• To optimize the packaging needed to deliver the product

• To increase the use of more sustainable packaging materials

• To design for the next life (e.g. recyclability, recovery, and reuse)

DESIGN & PACKAGING• They used their ES&H standards for sustainable packaging improvements such as

• Increased use of sustainably sourced paper

• Increased post-consumer recycled (PCR) content for paper

• Elimination of polyvinyl chloride (PVC)

• Reduced packaging size and weight

• Primarily focused on PVC elimination & encouraging recycling of product packaging

SOURCE- INGREDIENTS • Decision to reduce preservatives & chemicals from their products

• Setting safety & care commitment guidelines for suppliers• Some of the guidelines included:• Conduct ingredient safety assessment

• Partner only with suppliers who meet our ingredient safety standards and product stewardship principles to source our raw materials

• Conduct clinical evaluation of formulationsReformulations Baby care products Adult care products

formaldehyde releasers removed completely

used only for a few

products

1,4 dioxane removed completely

reduced to 10 parts per

million

Parabens removed completely

phased out except for

methyl and ethyl

parabens in formula

Triclosan Not permitted

removed from all

products

materials in fragrance removed completely process ongoing

SOURCING - SUPPLIERS• Launched a Procurement Sustainability Initiative(PSI) to tackle this issue.

• Suppliers segregated into 14 broad categories and according to their importance into a further 3 categories.

• Assessed on the basis of their EH&S risk i.e. audited

• Some of the other activities included: working with suppliers, assist in developing with a time bound plan, communicating collecting and confirming data

MAKEManagement Systems & Standards

• All manufacturing & R&D to have ISO 14001 certification

• 95% of J&J sites are 140001 certified

Water

• Uses methodology developed by WRI to predict water-stressed areas in 2025

• Have managed to reduce water consumption by 2.3% since 2010

Greenhouse Gas Emissions

• Energy use has decreased nearly 5% in 2104

Green Buildings

• 25 LEED-certified buildings

74%

23%

1%2%

Water Discharge

Waste Water Treatment PlantsSurface Water BodiesOceansOther

2%2%3%

16%

38%

39%

% of Total Clean Energy

Fuel Cell Bio MassGeothermal WindCongregation Solar PV

• Waste Management

• Goal is to achieve 10% reduction in waste with 2010 baseline

•  

• Ozone Depleting Substances (ODS)

• Eliminated CFCs

• plan to eliminate the use of HCFCs by the end of 2025 or earlier

• Air Emissions

• Focus is on greenhouse gas emission sources including NOX, SOX,VOCs, HAPs, PM

• CO2 Emissions

• $40 million annual budget for energy & greenhouse gas reduction projects

• In the last 10 years, 187 energy reduction projects have been approved, 151 have been completed

• Reduce CO2 emissions by 213, 931 metric tons per year 

MARKET

BENEFITS OF GREENING THE SUPPLY CHAIN

• Other benefits:-• Product Differentiation and Competitive Advantage • Improved quality and products

THANK YOU