Reducing greenhouse gas emissions is core to our goal of reducing our environmental footprint across our facilities, transportation fleet vehicles and shipping infrastructure.
Facility CO2 Emissions
Our Healthy Future 2015 goal is to achieve a 20 percent absolute reduction of our facility carbon dioxide emissions by 2020 from a baseline of 2010 without voluntary offsets or renewable energy credits. In 2012, we realized a 2.1 percent reduction in CO2 emissions, from 1,201 metric tons in 2011 to 1,176 metric tons in 2012, while realizing a 3.4 percent increase in sales. Against our baseline emissions of 1,253 in 2010, this is an approximately 6.1 percent reduction in CO2 emissions. Our emissions intensity per revenue since 2010 has decreased by over 11 percent. Moving forward, we are beginning an initiative to collect data associated with our Scope 3 value chain emissions. The data collection process is extremely complex, so we have decided to perform an input/output analysis in an attempt to identify emission hotspots within our value chain. We will continue to evaluate the impact and business case for this exercise.
We continue to maintain our CO2 reduction capital funding process, which provides a $40 million yearly budget for energy and greenhouse gas reduction projects across the Company. Over the last eight years, 139 energy reduction projects have been approved, and 100 have been completed. These completed projects will collectively reduce CO2 emissions and cost in an effort to meet their ambitious goal of reducing their site CO2 emissions by 50 percent by 2015.
Hydrochlorofluorocarbons (HCFC’s)
We have eliminated chlorofluorocarbons (CFCs) from use in our facilities and will be eliminating the use of hydrochlorofluorocarbons (HCFCs) by the end of 2025, or earlier where required by government regulations. We recognize that HCFC gases, which are currently the most readily available substitute for CFC use, can have implications for global warming. Therefore, in choosing 2025 as our target to complete HCFC phase-out, we are seeking to balance our concerns about ozone protection and climate change. It is our expectation that between now and 2025, cooling and refrigeration equipment that utilizes alternative refrigerants with a lesser effect on climate change and ozone depletion will continue to be developed and commercialized, and will present viable replacement options for both HCFCs and CFCs.
Transportation-Related CO2 Emissions
Johnson & Johnson has set a Healthy Future 2015 goal to realize a 20 percent improvement in fleet emissions efficiency for our global inventory of over 28,000 owned or leased vehicles. Progress against this goal will be measured using calculations based on vehicle manufacturer or government vehicle fuel efficiency ratings, such as the Corporate Average Fuel Economic Standards published by the U.S. Environmental Protection Agency. There are several solutions in place that will drive the reduction of emissions per distance driven by vehicles:
- Purchase of hybrid fossil fuel and electric vehicles;
- Purchase of alternative and/or renewable fuel vehicles;
- Purchase of highly efficient and/or low emitting vehicles;
- Incorporation of safe, environmentally friendly driving techniques;
- Retiring of older, less fuel efficient vehicles;
- Offering a more fuel-efficient pool of vehicles; and
- Providing additional driver education, targeting environmentally friendly driving.
At the end of 2012, average global CO2 emissions per vehicle were 161 g/km, representing a 9.1 percent reduction in CO2 from the 2010 baseline of 177g/km. Our five-year goal is to reduce our CO2 emissions to 142 g/km. Assuming a constant rate of CO2 emissions reductions going forward, we are on track to achieve our goal. Our EMEA, Latin America and Asia-Pacific regions met or exceeded the “calculated annual” target for CO2 reduction in 2012; the North America region did not. This was partially due to a vehicle ordering freeze in North America in 2012, since CO2 reduction is contingent on replacing old vehicles with more fuel-efficient vehicles, such as hybrids. We expect the North America region’s results to improve significantly in 2013. It should be noted that 100 percent of our orders for vehicles for our U.S. fleet are placed through diverse suppliers, supporting our aim of diversifying our supply chain but limiting the access to fuel-efficient vehicles in areas where our preferred approved suppliers do not carry the most efficient vehicle models. Actions taken in 2012 that resulted, or will result, in improved fleet performance in 2013 and beyond include:
Shipping-Related CO2 Emissions
The fleet that ships goods for Johnson & Johnson is not owned by the enterprise; we work with asset and non-asset based providers to transport our goods. The Johnson & Johnson Global Transportation Organization manages 100 percent of goods transport for North America and imports/exports into and out of the U.S. We have regional transportation teams to manage our international transportation activities in the EMEA, Asia-Pacific and Latin America regions. To minimize environmental impacts from goods transport, we work with our transportation providers to optimize our network, using multi-compartment trailers, taking advantage of freight consolidation opportunities, eliminating deadhead miles (the number of miles that are driven from the point of unloading to the point where the new load is ready for pickup) and engaging in cross-shipper moves with other companies that have similar product lines. We have increased intermodal usage by over 10 percent in the past year on our target lanes. We expect to reduce our annual carbon emissions by over 2,000 tons in 2013 as a result of these expansion efforts.
