Johnson & Johnson Tackling Emissions Across Supply Chains

Johnson & Johnson’s expansion of its supplier sustainability programme highlights the company’s commitment to addressing climate change, and promoting environmental health equity. 

The company has taken sustained, long-term action to reduce greenhouse gas (GHG) emissions, encouraging suppliers to do the same. They also work with like-minded partners to advance environmental health equity.

Their goals include sourcing 100% of electricity from renewable sources by 2025 and reducing emissions by 44% by 2030. They also aim for 80% of their suppliers to have science-based targets by 2028 and strive for net zero emissions across their value chain by 2045.

How Johnson & Johnson will hit its goals

The company’s current goals were updated in 2024 to reflect the footprint of its two-sector company, and have been validated by the Science Based Targets initiative (SBTi).

• Source 100% of our electricity needs from renewable sources by 2025
• Reduce absolute Scope 1 and 2 GHG emissions 44% by 2030 from a 2021 base year
• 80% of J&J suppliers by emissions covering purchased goods and services and upstream transportation and distribution will have science-based targets by 2028

In addition, the company’s longer-term ambition is to reach net zero emissions across the value chain by 2045.

How is Johnson & Johnson moving towards net-zero operations

The company is wasting no times making progress in its mission, such as its renewable electricity goals, where currently over 65% of its global electricity use comes from renewable sources. Johnson & Johnson has built more than 50 on-site renewable energy systems on properties in 20 countries and have executed 15 contracts for off-site renewable electricity procurement.

Additionally, it has finalised multiple deals in the US, Canada and Brazil that, when operational, will allow it to source the equivalent of 100% renewable electricity for its operations in these countries.

100% renewable electricity in Europe

The company is also now producing or procuring the equivalent of 100% of its electricity in its European operations from renewable sources. In total, there are 12 countries where J&J MedTech and Janssen operations are working, including: Belgium, France, Germany, Greece, Ireland, Italy, Netherlands, Poland, Spain, Sweden, Switzerland and the United Kingdom.

This comes thanks to three deals that led to the construction of two new wind farms and one new solar field in Spain, adding to existing on-site and off-site electricity projects.

Delivering energy efficiency

Through its CO2 Capital Relief Program, Johnson & Johnson has allocated up to $40 million per year for energy efficiency programs at its most energy-intensive manufacturing and R&D sites. Each project must show the potential for both emissions reductions and a financial return of at least 15%. Since starting the program in 2005, approximately 270 projects have been completed that have helped to avoid around 320,000 metric tons of GHG per year.

Tapping into new energy sources

Johnson & Johnson is continuing to expand the use of geothermal energy to provide substantial reductions in GHG emissions. At its Janssen campus in Beerse, Belgium, multiple wells, each approximately 1.6 miles deep, were completed and will use innovative geothermal energy to help heat and cool buildings across the site.

At the Ethicon campus in Cincinnati, Ohio (US), a closed-loop, geothermal system has been installed, with the capacity to provide heating and cooling to the entire 45-acre campus while substantially reducing emissions.

How the value chain will be supported

Enabling its suppliers

A collaborative approach has been taken by the company, as it sees it as essential to tackle today’s greatest environmental challenges.

Working for years with its suppliers, Johnson & Johnson has looked to accelerate environmental and social improvements across the value chain.

Committing to expanding the Johnson & Johnson Supplier Sustainability Program to include all suppliers by 2025. This means there will be even more opportunities for engagement and collaboration on its joint environmental and social priorities.

Collaborating for greater impact

In 2021, Johnson & Johnson joined with nine other leaders in the pharmaceutical industry to launch Energize, a first-of-its-kind initiative to help decarbonize the global pharmaceutical supply chain. The program aims to educate key industry suppliers on renewable procurement opportunities and help them in their transition to renewable energy. The program has registered hundreds of suppliers on the platform.

In 2022, Activate, a new collaboration was launched, bringing together five pharmaceutical companies to support active pharmaceutical ingredient (API) suppliers in their decarbonization efforts.

For many years, the company participated in coalitions that publicly supported actions to promote a low carbon economy and mitigate climate change at scale. Through schemes like the Clean Energy Buyers Alliance and the Climate Leadership Council to share best practices and encourage the advancement of renewable energy and market-based climate policies.

As well as supporting the Paris Climate Agreement through various platforms such as the ‘We Are Still In/America Is All In' campaign, and signing an open letter to President Biden calling for an ambitious US emissions reduction target.

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