Sustainability Saturdays: ESG Health Chronicles

Section 1: ESG Insights: Tackling GHG Emissions in Healthcare

The Growing Challenge of Scope 3 GHG Emissions

Greenhouse gas (GHG) emissions present a critical challenge for the healthcare sector, which is responsible for a significant carbon footprint. While direct (Scope 1) and energy-related indirect (Scope 2) emissions are substantial, Scope 3 emissions—those that occur in the supply chain—often represent the largest share. According to the Health Care Without Harm report, Scope 3 emissions can constitute up to 80% of a healthcare organization's total carbon footprint, including emissions from the production and transportation of medical supplies, pharmaceuticals, and equipment.

Why do Healthcare companies reduce Scope 3 Emissions?

Healthcare companies must prioritize reducing Scope 3 emissions for several compelling reasons:

1. Environmental Responsibility: The healthcare sector has a significant environmental impact. Reducing emissions helps mitigate climate change and ensures a healthy planet for future generations.
2. Cost Savings: Sustainable practices throughout the supply chain can lead to cost savings through reduced energy consumption, waste disposal fees, and potentially lower material costs.
3. Regulatory Compliance: As environmental regulations tighten, healthcare companies that prioritize sustainability will be better positioned to comply with future requirements.
4. Reputation Management: Consumers are increasingly concerned about sustainability. Demonstrating a commitment to reducing emissions can enhance brand reputation and attract environmentally conscious patients and employees.
5. Improved Patient Care: Addressing the environmental impact of healthcare delivery aligns with the broader goal of promoting patient health and well-being.

Section 2 - ESG Case Study : Johnson & Johnson's Global Efforts in Supply Chain Decarbonization

Overview

Johnson & Johnson (J&J), a global leader in healthcare, has implemented robust strategies to address Scope 3 emissions. Recognizing the extensive impact of its supply chain, J&J has committed to achieving carbon neutrality by 2030 and has undertaken significant measures to reduce emissions throughout its value chain.

Strategies and Initiatives

A. Carbon Disclosure Project (CDP) Supply Chain Program

Supplier Engagement

Data Collection and Reporting: Suppliers are required to report their GHG emissions, water usage, and climate-related risks through the CDP's standardized reporting framework. This data is critical for understanding the environmental impact of the supply chain.

Performance Assessment: J&J uses the collected data to assess suppliers' environmental performance, identifying high-impact areas and opportunities for improvement.

Collaborative Action

Reduction Strategies: With the insights gained from the CDP reports, J&J works closely with suppliers to develop and implement strategies to reduce GHG emissions and improve water management. This collaborative approach ensures that both J&J and its suppliers are aligned in their sustainability efforts.

Impact on Supplier Value Chain

1. Supplier Participation

As of the latest reporting year, over 200 of J&J's key suppliers participate in the CDP Supply Chain Program.

2. Emissions Reduction

Suppliers participating in the CDP program have collectively reported a substantial reduction in GHG emissions. For instance, in the past year, suppliers have achieved an average reduction of 5% in their reported Scope 1 and Scope 2 emissions. Many suppliers have set ambitious future targets, aiming for a further 20-30% reduction in GHG emissions over the next decade.

3. Water Management

The program also tracks water usage, with suppliers reporting their water consumption and efforts to improve water efficiency. On average, suppliers have reported a 10% improvement in water use efficiency. Suppliers are identifying and mitigating water-related risks, such as those related to water scarcity and regulatory changes, helping to ensure a stable and sustainable supply chain.

4. Recognition and Awards

J&J recognizes top-performing suppliers with sustainability awards, incentivizing continued improvement. In the latest year, 15 suppliers received awards for their exceptional efforts in reducing environmental impact.

5. Transparency and Accountability

J&J publicly discloses its supply chain environmental performance in its annual sustainability report, showcasing the progress made and reinforcing its commitment to transparency. Suppliers' participation in the CDP program has led to improvements in their CDP scores, reflecting better environmental practices and reporting standards.

Impact on Johnson & Johnson

1. Strategic Benefits: By leveraging the CDP Supply Chain Program, J&J not only reduces its own environmental footprint but also enhances the resilience and sustainability of its supply chain.
2. Stakeholder Confidence: The transparency and proactive management of environmental impacts strengthen stakeholder confidence, demonstrating J&J’s leadership in corporate sustainability.
3. Innovation and Efficiency: Collaboration with suppliers fosters innovation and operational efficiency, leading to cost savings and improved product quality.

B. Empowering Supplier Sustainability: The Onward Program by Johnson & Johnson

As a cornerstone of its Supplier Sustainability Program, Johnson & Johnson introduced "Onward," a comprehensive curriculum of webinars led by the company's subject matter experts (SMEs). These hour-long sessions delve into a spectrum of sustainability topics vital to business operations, ranging from human rights and diversity, equity, and inclusion to climate emissions and employee health and safety.

During these collaborative sessions, SMEs not only provide insights into Johnson & Johnson's strategies, successes, and lessons learned but also incorporate external perspectives and industry best practices. This open dialogue allows suppliers to actively engage, pose questions, and provide feedback, fostering a culture of continuous improvement.

Len DeCandia, Chief Procurement Officer at Johnson & Johnson, emphasizes the multifaceted nature of sustainability, encompassing economic, social, and environmental dimensions. He underscores the significance of the Onward program in cultivating partnerships with the global supplier community, united in their commitment to driving positive, lasting impact across stakeholders.

Scaling Up Collaboration

Named "Onward" to symbolize progress, Johnson & Johnson's initiative aims to advance environmental, social, and governance (ESG) efforts hand in hand with its esteemed supplier base. Through Onward, participating companies gain access to invaluable knowledge, tools, and resources to enhance their own sustainability capabilities, amplifying the ripple effect of sustainability initiatives within and beyond their organizations.

Looking Onward to What’s Next in Sustainability

The inaugural season of Onward, spanning September through December 2021, attracted over 1,000 attendees from 45 countries. Building on the foundational sessions, the 2022 lineup delves deeper into pertinent sustainability themes, including "How to Track Utilities and Energy Use" and "The Importance of Human Rights."

With a global network comprising more than 45,000 suppliers across diverse industries and geographies, Johnson & Johnson recognizes the appetite among its suppliers for actionable sustainability guidance. By equipping its supplier community with knowledge and resources, Johnson & Johnson aspires to inspire broader adoption of best practices, catalyzing positive change across industries.

Empowering Sustainability Across Supply Chains

Johnson & Johnson's involvement in the CDP Supply Chain Program serves as a prime example of their holistic strategy towards decarbonizing the supply chain. By meticulously gathering data, fostering collaboration, and upholding transparency, J&J and its partners are forging ahead in the battle against GHG emissions while championing sustainable methodologies. These endeavors not only align with worldwide environmental objectives but also fortify J&J's efficiency in operations and their standing within the corporate arena. Furthermore, J&J's consistent recognition with a prestigious CDP A List rating underscores their unwavering commitment to climate action, solidifying their position as industry leaders in sustainability.

The Onward program aims to drive impactful change within global supplier networks, providing tools and insights for sustainability success.

Section 3 - Sustainable Memories: Embracing Chowka Baara, The Tamarind Seeds Game

As we look towards innovative solutions for a sustainable future, it's equally important to cherish and learn from traditional practices that embody the essence of sustainability. One such cherished memory is the traditional board game of "Chowka Baara" or "Pachisi," often played using tamarind seeds. The game is simple yet profound in its use of natural materials. Tamarind seeds, easily available and biodegradable, are used as dice. This not only reflects a sustainable use of resources but also a deep connection with nature.

Why It Matters Today

Eco-Friendly Entertainment: Unlike plastic toys and electronic games, Chowka Baara uses natural materials, making it an eco-friendly option.

Cultural Heritage: Playing traditional games helps preserve cultural heritage and imparts valuable lessons in sustainability to the younger generation.

Community Engagement: Such games encourage community interaction and bonding, promoting social sustainability.

So, as we roll the dice and make our move toward a greener future, let's not forget the lessons of the past. From Johnson & Johnson's supply chain revolution to the humble tamarind seed, sustainability is more than just a trend—it's a way of life.

Now, it's your turn to join the game.

How can your organization harness the power of tradition and innovation to tackle Scope 3 emissions head-on?

Let's strategize together for a more sustainable tomorrow.

Remember, this newsletter isn't just a gentle nudge—it's a rallying anthem for transforming healthcare sustainability. Are you ready to play your part?

Follow us on LinkedIn for more updates, and let's make every Saturday count for sustainability. Join the conversation using #SustainabilitySaturdays. Together, we can create a healthier planet and a brighter future for all."