Environmental Performance (cont.)
CLIMATE POLICY INITIATIVES
We continue working to help shape responsible climate and energy policy. As noted in our past sustainability reports, we are members of the U.S. Climate Action Partnership (USCAP), which offered recommendations to early versions of the U.S. climate change legislation. In addition, Johnson & Johnson was one of approximately 950 companies to sign the Copenhagen Communiqué, calling on world leaders to sign a climate agreement.
ENERGY USE AND CLIMATE CHANGE
Johnson & Johnson has a Climate Friendly Energy Policy, goals to reduce both facility- and transportation-related emissions, and a carbon dioxide (CO2) reduction capital funding process that provides $40 million per year for energy and greenhouse gas reduction projects across the Company. In 2009, 17 new projects were approved. We also adopted a policy mandating that all new construction projects be certified to the widely used Leadership in Energy and Environmental Design (LEED) green-building standard, or equivalent.
Facility CO2 Emissions
Our Healthy Planet climate change goal is to reduce our baseline 1990 CO2 emission levels by 7 percent in absolute terms by 2010, and we are currently meeting this goal with a 16 percent absolute reduction (see chart). We experienced sales growth of more than 450 percent during the same period.
Strategies include improving energy efficiency, installing on-site cogeneration and renewable-energy infrastructure, and purchasing green power and carbon offsets. Notably, we plan to triple our on-site solar power capacity from 4 megawatts to 12 megawatts through seven solar-power projects that will be completed in 2010.
Our challenge continues to be reducing absolute emissions while our businesses are growing. We use offsets to support renewable-energy projects and reduce greenhouse gas emissions through external projects, although we prefer to reduce our direct emissions and continue to seek ways to accomplish this. The chart to the right includes our energy use and emissions data; our Carbon Disclosure Project report, at www.cdproject.net, provides additional data.
Transportation-Related CO2 Emissions
Johnson & Johnson seeks to reduce the environmental impacts associated with transporting our products, raw materials and people.
Owned and Leased Cars
At the end of 2009, our global automobile inventory included approximately 30,000 owned or leased vehicles. Our 2010 goal is to reduce CO2 emissions per kilometer driven by 30 percent from our 2003 baseline. To meet this goal, we are progressively moving less fuel efficient vehicles out of the fleet, increasing minimum fuel efficiency requirements year over year for new vehicles, adding hybrid electric and ethanol-fueled vehicles, and establishing minimum fuel efficiency requirements for suppliers bidding on Johnson & Johnson contracts. In addition, we reduced vehicle selections by 50 percent in the U.S., enabling us to not only increase fuel efficiency but also reduce costs associated with fleet management.
Based on figures from the end of 2009, our U.S. fleet included 2,125 hybrid vehicles, approximately 22 percent of our U.S. fleet. In December 2009, we were recognized by Automotive Fleet magazine as having the largest corporate hybrid fleet in the U.S.
In past reports, we have calculated our CO2 emissions per kilometer driven by gathering information on the number of miles driven by each fleet automobile and the amount of fuel used. However, maintaining accuracy with this method has proved a difficult task with 30,000 vehicles worldwide. This year, we are working on instituting a different methodology for calculating CO2 emissions, based not on measuring kilometers driven and fuel consumption but on the vehicles’ fuel efficiency ratings as published by the government (e.g., U.S. EPA Corporate Average Fuel Economy standards).
While this method does not reflect the impact of individual driving practices, we expect it to be a more reliable and effective measure going forward. Based on this method of calculating, our U.S. fleet averaged 212 grams per kilometer in 2009 compared to 250 grams per kilometer in 2003. This represents a 15 percent improvement.
Our carbon-reduction efforts extend to the transportation of our products. The Global Transportation Organization—a division of the Johnson & Johnson Sales and Logistics Company, LLC that handles shipping for our three business segments—has been participating in the U.S. Environmental Protection Agency’s SmartWay program for the past four years. SmartWay is a voluntary collaboration to increase transportation energy efficiency while decreasing greenhouse gas emissions and air pollution. During 2009, more than 95 percent of our U.S. carriers were SmartWay-approved.
Johnson & Johnson also increased its use of rail to transport freight within the U.S. and between the U.S. and Canada by approximately 24 percent in 2009, equivalent to removing more than 6,800 trucks from the highways. This reduced congestion, decreased the risk of driver-related accidents and saved more than 630,000 gallons of diesel fuel, eliminating approximately 6,800 tons of CO2 emissions—a 28 percent reduction in emissions for these shipments since 2008.