Partnering With Our Suppliers
Sustainability reaches far beyond the walls of any one company. It touches the raw materials we purchase and the external partners we use in producing our products.
Johnson & Johnson has a long history of working to reduce the environmental impacts of our internal operations, promote workplace safety, and care for the health and well-being of our employees. While we don’t have direct control over our supply chain, we have a responsibility to ensure that operations conducted on our behalf are consistent with our values.
PURCHASING POWER DRIVES IMPACT
“We are using our purchasing power to drive more sustainable business practices on a broad scale,” says Mark Guinan, Chief Procurement Officer, Johnson & Johnson. “With an annual spend of approximately $30 billion per year, it is a huge footprint, so we’re working with our suppliers to set sustainability expectations.”
Guidance for Johnson & Johnson operating company managers who purchase goods or services is provided by the Procurement Sustainability Initiative (PSI), developed in 2008 to help align our procurement processes with our sustainability efforts. The PSI breaks down procurement efforts according to the 13 procurement categories and sets performance expectations for each category.
Through the PSI, we are able to consider several non-financial performance factors when contracting with suppliers. These include purchasing from those who protect and promote worker safety, health and well-being; who provide materials and services with a reduced or positive environmental impact; and who respect and share our efforts to preserve communities and cultures connected to the origin, processing, manufacturing, use and disposal of materials and services.
“The PSI enables us to select suppliers who share our values and are willing to work with us to drive positive change in the marketplace,” says Guinan. “The challenge arises from the sheer size of our supply chain.”