Climate change has been raised as a potential risk for businesses due to possible impacts on weather patterns extreme weather events.
Extreme weather, such as a hurricane or flood, is the most significant possible impact to our business since it could cause the closure of a manufacturing facility, disruption in the supply chain or loss of product inventory. Climate change could also affect the availability of raw materials for Johnson & Johnson’s products. Other climate-related risks include possible increased energy costs due to taxes or renewable-energy directives, higher costs due to additional requirements for tracking and managing climate change issues, and increased investment of capital in carbon reduction projects.
Johnson & Johnson has completed, and continues to update, business continuity plans (BCP), including those related to weather risks, for all major operations around the world. We assess the risks of extreme weather events, their potential financial impact, and implement mitigation plans. For example, we have reduced our expected loss due to hurricane damage at our facilities in Puerto Rico by more than $2.5 billion over a five year period.
As part of our continued participation in the https://www.cdproject.net, we have filed a report about risks related to climate change and the actions we have taken to mitigate them. Additional information on how we are reducing our carbon footprint is available here.