ESG Policies & Positions

Johnson & Johnson is committed to ensure the ethical treatment of animals used in laboratory settings to advance patient safety and well-being. Johnson & Johnson operating companies have policies and guidelines in place that drive the ethical and humane treatment of the animals we use, and that promote the use of non-animal alternatives whenever feasible. We support and participate in efforts to obtain regulatory acceptance of alternative testing methods. Our standards for animal care and use are intended to meet or exceed all applicable regulations.

Corruption includes practices such as bribery, facilitation payments, fraud, extortion, collusion, and money laundering; the offer or receipt of gifts, loans, fees, rewards, or other advantages as an inducement to do something that is dishonest, illegal, or represents a breach of trust. According to Transparency International, corruption is the abuse of entrusted power for private gain. Organizations are expected to demonstrate that their entrusted power adheres to integrity, governance, and responsible business practices.

Antimicrobial resistance (AMR) is one of the defining scientific, health and economic challenges of our time. Without urgent and meaningful action to address specific diseases and system-level issues, patients, families and communities around the world will face a tremendous threat in the years ahead from untreatable infections. While AMR is fundamentally driven by the ability of pathogens to evolve, its impact is greatly amplified by factors that span economic, healthcare and agricultural domains.

Biodiversity refers to the variety of life on earth, including diversity of ecosystems, genes and species, and ecological practices that support them. There is a growing concern about the loss of biodiversity and ecosystem services in many areas of the world, including the associated impacts on human health and economic development.

Business continuity refers to the governance, practices and processes an organization puts in place so it can function at an acceptable level during and following a disruptive incident, such as a natural disaster, an emerging health risk, cyber-attack or any other threat to the organization’s ability to maintain planned operations. Maintaining business continuity means that an organization can continue to serve its customers at acceptable levels while protecting its people, assets and partners.

Our Credo provides Johnson & Johnson with a clear, compelling, and enduring reminder of our responsibility to the environment. It states we must be good citizens in the global community, and we must protect the environment and natural resources we are privileged to use. We believe that the health of people is inextricably linked to the health of the planet. We have been setting public environmental performance goals for nearly 30 years. As the world’s largest, most broadly-based healthcare company, we remain committed to improving the environmental health of the places where we live, work and sell our products today—and for generations to come.

At Johnson & Johnson, we believe acting ethically and responsibly is not only the right thing to do, but also the right thing to do for our business. Our Johnson & Johnson Code of Business Conduct ensures that we hold ourselves and how we do business to a high standard, allowing us to fulfill our obligations to the many stakeholders we serve.

Corporations, by the very nature of their existence and activities, have an impact on our society and environment and play a role in the welfare and wellbeing of communities. Beyond their core business activities, corporations can also help create a better world and improve the quality of life for communities through additional strategic philanthropic initiatives that go beyond commercial activities. These initiatives typically complement a corporation’s business engagement with society, communities and consumers through voluntary sharing of resources to support social causes and help meet societal needs that are not fully met via other channels. Such activities are intended to deliver benefit to society and not to yield direct commercial benefit to corporations.

In recognition of the link between the global minerals trade and the financing of armed groups in the Democratic Republic of Congo and adjoining countries (DRC region), the United States Congress passed Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 requiring companies to publicly report on their use and the source of these minerals. In August 2012, the United States Securities and Exchange Commission (SEC) adopted a final rule under the Securities Exchange Act of 1934, Rule 13(p)-1, requiring SEC-reporting companies that manufacture or contract to manufacture products that contain “conflict minerals” to conduct due diligence on the origin, source and chain of custody of such minerals and provide specialized disclosure regarding the findings of such diligence. The SEC defines “conflict minerals” to include tin, tungsten, tantalum and gold (3TG).

Corporate governance refers to the framework of principles, policies and practices that define a company’s approach to oversight and accountability to ensure that company operations align with the long-term interests of its shareholders and are responsive to broader stakeholders. Effective corporate governance requires robust legal, regulatory, and compliance practices to ensure that company operations are ethical, compliant and appropriately manage risk. It requires a qualified, diverse and engaged board of directors to oversee company practices and ensure that management is accountable to shareholders.

Counterfeit medicines, including substandard, falsified, untested, unregistered and unlicensed drugs, represent a public risk well known to health organizations worldwide. It is estimated that international trade in counterfeit and pirated products exceeds $500 billion or 3% of world trade. In some countries, counterfeits are believed to encompass up to 30% of the market. More importantly, counterfeit and substandard drugs are believed to be responsible for over 1 million deaths each year, including hundreds of thousands of children. Counterfeits cover the spectrum of medicines, both prescription and OTC, as well as different forms of medical devices and surgical instruments and a range of consumer products. In many cases, counterfeit or fake, products are indistinguishable to patients, consumers and healthcare professionals, so detection by specialists is needed. Counterfeit medicines and consumer health products are readily available today in many countries, especially online, and are typically offered at attractive price points, luring buyers with what appears to be “a good deal.”

In the course of doing business, a company may gather personal information about individuals with whom it engages. With the major advances in digital technology and the importance of using data to drive innovation, stay connected with patients and consumers, and maintain compliance with global regulatory and safety standards, it has become increasingly important for individuals to have a clear understanding of how and when their personal information is being used. They need also to have confidence that their information is being handled appropriately and in a manner consistent with their rights and with applicable legal requirements. We believe companies have a responsibility to protect every individual’s right to privacy, and to establish reasonable measures, including those prescribed by law, to ensure appropriate handling and protection of patient and consumer information in their possession.

Corporations operate in the heart of communities. Whether multi-national or local, corporations draw their employees, suppliers, resources and social license to operate from neighboring communities. When disaster strikes—whether it’s a natural disaster, extreme weather phenomenon, infrastructure or construction failure, or even a terrorist event—everyone’s affected. In these circumstances, the interdependency of community and corporate life obliges people to come together to provide emergency relief, urgent resources and lifesaving assistance. Supporting medical teams address the pressing health issues is one of the most critical first responses in any disaster. For a healthcare company, therefore, moving quickly to provide medicines and other healthcare support is an important role.

Johnson & Johnson and all its operating companies are committed to workforce diversity, creating equity across our systems and fostering and advancing a culture of inclusion. We know that bringing diverse backgrounds, cultures, and perspectives together drives innovation which helps us to solve today’s complex health problems. Our Credo outlines our responsibility to create an inclusive environment and respect the dignity and diversity of all people. This makes diversity, equity and inclusion (DEI) everyone’s responsibility—that of every employee around the globe. This enables everyone at Johnson & Johnson to reach their full potential and help us innovate to create a healthier world.

Companies have a unique opportunity to influence the personal and professional development of the individuals they employ. Investing in developing the knowledge and skills of employees is a key tool for the achievement of business goals and objectives, and also helps increase employee motivation and retention. At the same time, investment in the professional capabilities of people additionally serves local economies, injecting skills into local workforces and raising the quality of employability.

The world continues to navigate and adapt to emerging health risks and develop greater health awareness. The COVID-19 pandemic, prevalence of non-communicable diseases such as heart disease, increased focus on mental and emotional health have emphasized the importance of moving beyond traditional approaches to employee health and well-being and safety at work. Such approaches require a forward-looking strategy that further embeds a culture of health throughout an organization to enable the total health and well-being of the workforce.

Employers impact people’s lives in very meaningful ways. This impact extends not only to our direct employees and the employees of our business partners, but also to their families, communities and the broader society in which they live and work. While countries have many laws governing employment and labor rights, an employer’s influence extends well beyond the provisions of laws and regulation, encompassing many different aspects of a person’s life throughout their employment lifecycle. For example, fair and equitable compensation; inclusive, safe and healthy working environments; learning and development programs; and opportunities to progress and make a contribution to local community life are just a few of the areas in which people experience the potentially transformative effects of employment on their lives.

Environmental Health and Safety (EH&S) Management refers to the practices that protect environmental health and safety for the people in and around our workplaces—key elements of being a responsible corporate citizen and a resilient business. Strong EH&S Management requires clear systems and processes, especially in large businesses with multiple manufacturing and logistics facilities, that enable risk-based assessment and control of environmental impacts and health and safety hazards. In many cases, regulation defines minimum standards, and EH&S Management systems must therefore support compliance, as well as drive continuous improvement and learning.

Now more than ever, businesses are expected to lead in the present and drive progress for the future. For more than 130 years, Johnson & Johnson has aimed to create a healthier world. Today, as the world’s largest and most broadly based healthcare company, we have a unique ability to apply our expertise and partnering power to help solve some of the most challenging global health issues. Our environmental, social and governance (ESG) strategy is designed to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere.

Environmental, social and governance (ESG) practices in business refer to responsible, transparent and accountable practices alongside aspirations to generate a positive social and environmental contribution, in addition to strong business results, for the benefit of current and future generations. ESG is used as an overarching term that includes the similar concepts of corporate citizenship, social impact or value, corporate social responsibility and/or sustainability work. In today’s business landscape, sound ESG management practices and oversight are considered to be a strategic component of businesses that are successful over the long term, helping enhance shareholder value as well as delivering other benefits.

Corporations play a significant role in society, and their actions can have far-reaching effects on people and communities. In order to protect people and guarantee a level playing field among corporations, laws and regulations governing the activities of corporations are in place in every country in the world, although they may differ from country to country. Ensuring compliance with all relevant laws and regulations is a fundamental duty of corporations and their governance.

At Johnson & Johnson, we are guided and sustained by Our Credo, a set of core principles that serve as a moral compass for how we conduct business. These principles outline our obligations to our customers, our employees, our communities around the world, and our shareholders; they also unite our employees with a common value that the fundamental rights and dignity of all people must be respected.

In any corporation, information is a critical asset that must be managed and protected; its unauthorized use, disclosure, modification or destruction can adversely impact the corporation’s ability to achieve its goals. Information assets can include proprietary product formulas, information used in manufacturing processes, customer data or any information systems required for the proper functioning of the company. In today’s advanced technological environment, where more information than ever is stored electronically, information assets are under constant threat from malicious cyberattacks that can disrupt business functions and/or compromise the security of personal data that the organization is committed to protect. A proactive information security strategy to properly manage information assets and protect against such deliberate, as well as inadvertent, threats is necessary to safeguard any business and its stakeholders.

In our dynamic world, change is constant, frequent and all-embracing. Changing healthcare needs are influenced by many factors, including population increase and demographics, economic stability, globalization and urbanization, healthcare infrastructures and public policy, changing lifestyle habits and awareness of healthcare issues. Similarly, the tools available to address healthcare needs are also rapidly changing, with technological advancements, global connectivity, use of Big Data, robotics, and analytical and diagnostic tools. Similarly, there is a growing understanding of the connection between the natural environment and its impact on health conditions and needs. All of this means that new medical conditions and diseases continue to emerge, and it is therefore incumbent upon healthcare companies⎯with their knowledge, expertise and capabilities⎯to help solve critical healthcare issues.

Intellectual property (IP) protections provide a vital framework to help enable the development of innovative and life-changing treatments, cures and other healthcare technologies for patients and consumers around the world. IP protections also help ensure innovative healthcare companies can continue to invest in cutting-edge research, especially given the high cost and time it takes to develop new medicines and treatments.

A materiality assessment is a foundational tool used by companies to identify, prioritize and strategically address relevant environmental, social and governance (ESG) topics that can have a significant impact on society or their business. Johnson & Johnson has been conducting such assessments, which we call Priority Topic Assessments (PTAs), since 2008, and we enhance our PTA methodology with each assessment. Typically, we have conducted the PTA every two to three years, but due to the continued world-shaping events of the COVID-19 pandemic and racial and social events of 2020, we conducted a PTA in 2020 and again in 2021.

The values that guide our decision-making are spelled out in Our Credo. Put simply, Our Credo challenges us to put the needs and well-being of the people we serve first.

Product safety is an essential part of our promise to all the patients and consumers we serve each day with our medicines, consumer healthcare care products and medical devices. Uncompromising focus on patient and consumer safety at every stage of product development, manufacturing, supply chain and commercialization is critical to ensure our products are as effective and safe as possible in improving healthcare, personal care and wellbeing.

We support active and informed participation in the policy-making and political processes. We use our voice to pursue policy solutions that better serve patients, nurses, doctors, and consumers, as well as our employees and our communities around the globe.

Our approach to pricing medicines builds on a long history of caring for patients and a commitment to discovering and developing innovative medicines that transform lives. We recognize our dual responsibility to patients today and patients tomorrow. Patients today need access to our medicines. Patients tomorrow count on us to deliver cures and treatments for challenging diseases.

Pharmaceuticals and personal care products (PCPE) enter the environment through several different pathways. The vast majority of active pharmaceutical ingredients (APIs) found in aquatic ecosystems are a result of normal patient and consumer use and excretion following the use of medicines that are taken to prevent, cure or alleviate a medical condition. A second pathway is through improper disposal of unused or expired medicines by patients and consumers who flush them down toilets or pour them into drains. The third pathway is through wastewater discharged from API manufacturing sites. A major source of PCPE is from washing off products from the body during cleansing activities.

Quality is a core responsibility of any company. Healthcare providers, consumers and customers expect the level of quality they are promised. By building quality into processes, a company meets its responsibilities to those it serves while operating efficiently, minimizing waste and other risks and costs arising because of quality issues. Additionally, consistent delivery of high-quality products helps a company build and maintain a positive reputation and trust with all those who use its products.

Responsible chemical management is a systematic approach toward selecting, evaluating, procuring, storing, transporting, using and disposing of chemicals in research and development (R&D), manufacturing and operations.

We conduct research and development, including clinical trials, in accordance with the highest ethical, professional and quality standards. We operate to clear, published ethical standards across our entire spectrum of development activity and maintain an infrastructure of oversight and accountability.

The extended supply chain of any corporation is a critical link between the business and its customers, ensuring that goods and services are provided at the right time and at the right quality to maintain continuity of production and effective delivery of products to customers. Increasingly, corporations are expected to be proactive in establishing environment, social and governance (ESG) standards throughout the supply chain and drive accountability among suppliers in adhering to these standards. Such an approach is necessary to protect people and the environment from potential risks of supply chain failures and also protect business reputation.

The healthcare industry, like any other, has a right to market its products to drive awareness and promote their availability. However, the primary consideration for the use of a healthcare product or medicine relates to its suitability to treat a medical condition or meet a medical need as both indicated by a regulatory body and determined by healthcare professionals (HCPs). These considerations should be separate, as far as possible, from commercial interests. Therefore, healthcare companies are expected to align themselves with ethical standards relating to marketing, promotion and sales of healthcare products, to protect patients and consumers and to refrain from activities that might inappropriately influence the decisions of HCPs.

Stakeholder engagement refers to the way a company interacts with those who influence and are influenced by its business activities. Such targeted interaction is necessary for a business to be fully informed of the way its activities are making a difference on individuals, communities and the planet, so that it may address the needs and concerns arising from stakeholder feedback. By being attentive and responsive to stakeholders, a business can gain new insight that may inform business planning, shape its strategies to incorporate stakeholder needs where possible, and build trust with stakeholders through positive and interactive relationships.

Globally, our health systems are straining to support growing healthcare needs. There are numerous a host of challenges: balancing competing priorities such as reaching universal healthcare coverage (UHC) with a financially viable model; driving care delivery efficiencies without compromising quality and outcomes; preparing for and responding to other public health factors such as caring for an aging population with longer life expectancies; the rising number of patients with chronic conditions; and disruptions such as pandemics and large-scale health emergencies. Strengthening health systems requires a comprehensive approach involving all stakeholders, including governments, healthcare organizations, healthcare professionals and community health workers (CHWs) at all levels, civil society, private sector and communities.

Our commitment to environmental sustainability is grounded in our values and inspired by our purpose. According to the Global Footprint Network, a global research organization, if trends continue, natural resources from the equivalent of two planet Earths will be needed to support the world’s growing population by 2030. We use natural resources to make our products that millions of people rely on every day. It is vitally important that we operate our business within planetary boundaries.

At Johnson & Johnson, we are committed to doing our part to address global deforestation, particularly in precious rain forests. We aim to source raw materials and packaging in a sustainable manner, considering the resource and biodiversity impacts on the planet as well as human rights and fair labor conditions throughout our extended supply chain.

Johnson & Johnson believes it is our responsibility as a corporate citizen to pay our fair share of taxes, including corporate income taxes, employment taxes, social contributions, property taxes, import and customs duties, and indirect taxes.

All companies, especially public companies, should be accountable to their stakeholders for their business activities. Transparency in financial and other dealings demonstrates accountability, fosters trust and enables stockholders and stakeholders to make informed decisions about their interactions with a company.

For many people around the world, good health is not within reach because of the accessibility and affordability of healthcare services.

Environmental stewardship is an important part of the overall responsibility of manufacturers to advance sustainable development and preserve planetary integrity for current and future generations. Proactive water and waste management are fundamental elements of a corporate sustainability strategy. Equally, economies realized through resource efficiency support business resilience and continuity.