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Taking responsibility for the environmental and social impacts of our products begins with product design and development, and then extends to the sourcing, manufacturing and delivery of our products to our customers. For many years, we have been implementing and improving environmental and social measures in our own organization. As a natural progression, we are focusing on promoting sustainability throughout the supply chain.
With annual spending of approximately $30 billion, we are able to leverage our purchasing power to set sustainability expectations beyond our own operations. Our Procurement Sustainability Initiative, developed in 2008, aligns our procurement processes with our sustainability efforts and provides guidance for Johnson & Johnson operating company managers who purchase goods or services.
As a participant in the Carbon Disclosure Project’s (CDP) Supply Chain Program, we encourage suppliers to measure their energy use and greenhouse gas emissions, and develop and publicly report their reduction plans. We also work with our peer companies in the Pharmaceutical Supply Chain Initiative, an effort to drive consistent expectations and supply chain improvements through collaboration.
Our Responsibility Standards for Suppliers were updated in 2012 and now outline our expectations for all suppliers. We have multi-step review and verification programs in place and refine the standards our processes as needed to reflect the evolving sustainability expectations for our supply chain.
We also recognize the value and importance of having a diverse supplier base reflective of our patients and customers around the world. We are committed to working with small businesses and diverse suppliers who support our growth objectives by providing innovative solutions to our marketing, manufacturing and R&D efforts. Our Supplier Diversity Program was established in 1998 to support this commitment.