Executive Summary

2017 Health for Humanity Report Progress in Citizenship & Sustainability 2017 Health for Humanity Report 2

Message from Alex Gorsky

It was created with the stroke of for you, our shareholders. It’s our way of a pen in 1886. demonstrating how we work to track and deliver on our commitments. James Wood Johnson, who co-founded the See, for example, how we’re eradicating and company with his brother Edward Mead preventing disease. Johnson, handcrafted one the world’s most trusted logos. James wanted the world to We’ve achieved great milestones as a know just how personally and emotionally company this year in our efforts to make connected the two were to the company’s HIV history with the initiation of the first most important reason for being—improving efficacy study for a preventative vaccine. I’m human health. So, he decided to use the encouraged every time I reflect on how far family signature. we’ve come since the 1980s with HIV, once considered a death sentence. All of us are Johnson & Johnson. humbled to be a part of the efforts to treat Placing their name on the company’s and protect—even, one day, prevent—HIV. products was the ultimate measure of I’m also proud of how we’re reimagining the accountability. It was a way of holding way that care is delivered and expanding themselves responsible for their—and their access for the world’s most vulnerable Alex and Pat Gorsky in Valmiki Basti, one of the oldest communities in New Delhi, India, where they visited the company’s—every action. In time, it became populations. homes of mMitra families. not just a trademark, but a mark that people learned they could trust. Because, after all, Our mMitra service immediately comes Helsingborg, Sweden became the first to changing the trajectory of health for trust and behavior go hand in hand. to mind. mMitra is an innovative mobile- Johnson & Johnson site receiving carbon- humanity. This sense of purpose has helped messaging program that sends vital health Serving generations of people with integrity, neutral status for all energy sources across us build on our company’s good name since information to expectant and new mothers caring and compassion remains our greatest manufacturing, R&D and warehouse the Johnson brothers, quite literally, put living in low-income urban communities in privilege and responsibility. Every day, facilities—a historic achievement that theirs on the company in 1886. India. The impact is irrefutable—mMitra has through our words and actions, we work improves human health while protecting the positively impacted the lives of one million I believe they’d be proud to put it on this tirelessly to earn our place in hearts, minds, environment and natural resources. women, and their children. This service has report, too. hospitals and households everywhere. had a transformative effect. And it earned Stories like these inspire and motivate us Much like the founding brothers—who were us a top spot on Fortune’s 2017 Change the every day. later joined by their brother, Robert Wood World list. Johnson—we continue to build on our While we’re pleased to share the progress reputation and the Johnson & Johnson name The report also shares our unwavering we’ve made in this report, we recognize through accountability and transparency. commitment to healthy minds, bodies and there’s more work to be done. And I’m Alex Gorsky environments. confident that we’ve got the best people And that’s exactly what our 2017 Health for in place to continue our sustainability Chairman, Board of Directors Humanity Report is all about. We’re making great progress toward our stewardship and commitment to being and Chief Executive Officer Health for Humanity 2020 Goals and It’s the story of our progress—our responsible global citizens—consistent with United Nations Sustainable Development the values outlined in Our Credo. environmental, social and governance WATCH VIDEO Goals focus areas. Our strong legacy of efforts—as we relentlessly drive for environmental stewardship, for example, The Health for Humanity Report is the better health and create long-term value continued in 2017 when our site in story of us. It showcases our commitment 2017 Health for Humanity Report 3

Sustainability Approach

At Johnson & Johnson, we blend heart, expect us to lead. We believe that achieving science and ingenuity to profoundly change our goals is integral to Johnson & Johnson’s our 2017 Health for Humanity the trajectory of health for humanity. This long-term success and we consider them to Watch Report Year in Brief Highlights aspiration includes positively impacting be the Key Performance Indicators of our patients and all others who use our products, citizenship and sustainability approach. We as well as the health of our employees, our measure and track progress against the goals WATCH VIDEO communities and the planet. We seek to and report out on our progress annually, provide solutions for some of the world’s including independent review and assurance most pressing global public health challenges of our data. This data-driven approach allows and work collectively-within our walls- us to dedicate our resources efficiently and externally with partners to advance and effectively to the issues that are most better health for all. Our citizenship and impactful and important to all stakeholders. Review our Health for Humanity sustainability approach is inextricably linked In 2017, we continued making progress 2020 Goals Progress Scorecard to our vision of a world where a healthy mind, against our Health for Humanity 2020 Goals. body and environment is within reach for Please see Health for Humanity 2020 Goals everyone, everywhere. Progress Scorecard for more information. READ MORE

We are driven by Our Credo, a set of values Our citizenship and sustainability and principles, that challenges and inspires approach also includes our commitment to us to put the needs and well-being of the support the global agenda on sustainable people we serve first. To us, these aren’t just development. We are working to help words: Our Credo serves as the foundation advance implementation of the United Learn more about our progress in of our mission as a healthcare company, and Nations Sustainable Development Goals (UN citizenship and sustainability is reflected in how we operate our business SDGs) across five key issue areas where we around the world. The long-term thinking of are uniquely positioned to create sustainable our founders, and current leadership, allow us and scalable impact. The summary of our VIEW 2017 REPORT to stay true to this vision. progress against UN SDG commitments can be found in our UN SDGs Scorecard, We’ve been setting five-year goals to improve reflecting cumulative progress from 2016 and the sustainability of our business for decades. 2017. For more information, please visit our In setting these goals, we strive to ensure that Sustainable Development Goals webpage. they are aligned with our company’s purpose, are embedded in our business strategy, and reflect the areas where our stakeholders 2017 Health for Humanity Report 4

2017 Year in Brief

51% 1.2 billion of supplier spend Recognized VERMOX (mebendazole) doses donated represented by suppliers as leaders in vaccine R&D by the since 2006* enrolled in Sustainable Access to Vaccines Index Procurement Program*

JULUCA (dolutegravir and 45% of Manager and above 37,000 25% rilpivirine), developed patients in 95 countries provided of Company’s electricity talent movement was across in collaboration with ViiV access to MDR-TB therapy with use from renewable function, country or business Healthcare, the first and SIRTURO (bedaquiline)* energy sources* segment lines only complete, single- pill, two-drug regimen to treat HIV-1 infection approved by U.S. FDA

Helsingborg, Sweden our 1st site achieving carbon (CO2)-neutral status for all energy sources across manufacturing, R&D and warehouse facilities**

8 weeks Global Parental Leave Standard launched— “A” Actelion employees globally can take in CDP Supplier Engagement joined our company, adding a minimum of 8 weeks' paid Rating, recognized for outstanding pulmonary hypertension as leave for birth/adoption performance in supplier engagement Janssen's 6th therapeutic area

*Assured by third-party, ERM Certification and Verification Services Inc.; figures have been rounded. **Assured by third-party, ERM Certification and Verification Services Inc., for the period of 1 March 2017 to 31 December 2017. 2017 Health for Humanity Report 5

Better Health For All

At Johnson & Johnson, health is our the governments of Norway and Germany we marked a milestone in 2017 in Africa for business. For more than 130 years, we have and other organizations to form a unique supporting the front lines of health. By the been committed to improving the health of We’re joining forces with the public–private partnership, the Coalition for end of the year, more than 10,500 healthcare individuals, families and communities around “world’s leading HIV researchers Epidemic Preparedness. providers had received critical skills training the world, including the most vulnerable and and global health advocates to from the Medical and Surgical Skills underserved populations, driving innovation help advance our experimental Strengthening Health Systems Institute, based in Ghana. This engagement and collaboration to change the trajectory of [HIV] vaccine. Working together, Strong, well-functioning health systems are in part of our U.N. Sustainable Development health for humanity. Our global public health our ultimate goal is to support imperative for advancing human health. Goals Essential Surgery commitment area. strategy is focused on tackling some of the efforts to make HIV history. Around the world, we are working with world’s most pressing health challenges, ” many stakeholders and leveraging our During the events in 2017 related to Paul Stoffels, Chief Scientific Officer, global expertise in health and on-the-ground Hurricanes Irma, Maria and Harvey and the including HIV, tuberculosis, neglected Johnson & Johnson tropical diseases, and the growing burden of presence in different regions to advocate Earthquake in Mexico, we provided both non-communicable diseases. for tailored solutions that help strengthen short-term and long-term relief for those local health systems. We advocate for directly affected, including both in-cash and World Without Disease On the eve of 2017 World AIDS Day, we universal access to care, pilot sustainable in-kind donations. We believe it is imperative to address announced that Janssen together with a financing solutions together with partners disease along the entire continuum of consortium of global partners initiated the so that people can cover their health needs, health, including prevention, disease first efficacy study for our investigational and educate and empower people on the as leaders in interceptions and cures. Pooling insights and mosaic HIV-1 preventive vaccine. front lines, such as nurses, caregivers and Recognized expertise from across our three business community health workers. vaccine R&D by the Access to segments and leveraging the power of We are one of a very few pharmaceutical Vaccines Index partnerships, we focus on determining the companies investing in tuberculosis R&D We believe a more value-based healthcare most promising integrated solutions. and delivery. In 2017, we announced a system has tremendous potential to improve collaboration with India’s Institute of the health of populations, increase access In 2017, we brought two new treatment Microbial Technology (IMTECH) to discover to care, and limit costs. An example of 38,000 options to people living with HIV: new treatments for TB and put us on a path value-based care in action is our global adult patients and to ultimately end TB around the world. CareAdvantage initiative in the Medical 630 pediatric patients ▪▪ In the EU, the European Commission Devices segment, launched at the beginning received access to HIV/ approved SYMTUZA (darunavir/ We have made significant progress to of 2017. Data-driven, holistic and grounded AIDS therapy with the cobicistat/emtricitabine/tenofovir expand access to SIRTURO (bedaquiline) in Johnson & Johnson’s deep expertise branded and generic alafenamide [D/C/F/TAF])—the only across the world with a significant increase and insights, the goal of CareAdvantage versions of PREZISTA, darunavir-based single-tablet regimen in numbers of patients reached in 2017. is to help providers and health systems INTELENCE and EDURANT* approved for treatment of HIV-1. And with the first patient treated in China, assess and then implement values-based ▪▪ In the U.S., FDA approved JULUCA we achieved a critical milestone in the action plans along the care pathway while (dolutegravir and rilpivirine), developed treatment of MDR-TB with patients in optimizing patient care. in collaboration with ViiV Healthcare, every high burden MDR-TB country in the Joined the Patent Information the first single-pill, complete two-drug world now having access to this lifesaving Community Engagement When we think about creating a world Initiative for Medicines regimen for treatment of HIV type 1 medicine. with better health for all, this starts by (Pat-INFORMED) (HIV-1) infection in certain adults living putting communities and people first. with the disease who are virologically To contribute to global health security, in 2017 we joined forces as a founding Our giving is focused on supporting and suppressed. *Cumulative, since 2016. Assured by third-party, ERM member with the World Economic Forum, championing people who are at the front Certification and Verification Services Inc.; figures the Gates Foundation, the Wellcome Trust, lines of delivering care. As just one example, have been rounded. 2017 Health for Humanity Report 6

Innovation

We relentlessly pursue the best breakthroughs in science and Manufacturing for the Future (MFF) is part technology—whether from within our own laboratories or from our of our refreshed supply chain strategy that was created to transform our manufacturing powerful network of scientists and entrepreneurs all over the world. We processes into a connected, self-learning create lifesaving products, solutions and services to extend and improve and hyper-efficient production system of the lives of patients and consumers. Our commitment to innovation the future. MFF aims to bring us closer to the future state of manufacturing, which extends beyond the lab. Embracing technological change and leveraging we know will be based on an intelligent and the opportunities created by digitalization, we continuously look for autonomous manufacturing system that is ways to run our business more efficiently, with transformations in our seamlessly integrated into the end-to-end operations and supply chain management. supply chain. Our Company is one of the earliest Best Manufacturer Innovating How We Serve are well-positioned to leverage our clinical business adopters to pilot the first-of- Partner We marked the fifth anniversary of knowledge, deep consumer and population its-kind wearable augmented reality (AR) Gartner Healthcare Supply Chain JLABS, our open innovation ecosystem for health insights and consumer-marketing technology, Google Glass. We tested the Ranking healthcare entrepreneurs, with 312 start- expertise to create health tech tools that technology with our IT global managers, up companies working with us to advance help guide people on their total healthcare challenging them to find innovative scientific discovery. We also announced the journeys. One example is our NEUTROGENA business cases that tapped the technology’s first JLABS location outside North America, SKIN360 app and SkinScanner powered by potential to improve quality, productivity 2017 in Shanghai, China. FITSKIN, which makes professional skin care and efficiency across our diverse sites and Clarivate accessible. A dermatologist-grade at-home operations. As a next step, we will scale Technology plays a crucial role in improving skin analysis tool attaches to a smartphone, the use of technology across our global Analytics Top 100 health outcomes. As the world’s largest and scans the skin, and feeds data into the operations. Global Innovator most diversified healthcare company, we application, leveraging NEUTROGENA’s wealth of research and expertise to track In 2017, DePuy Synthes launched the and assess skin’s progress. first-ever 3D-printed medical device, the MAXFRAME Multi-Axial Correction System, mMitra Innovating How We Work to correct limb deformities from fractures, From the very beginning of mobile phone technology Our Enterprise Standards & Productivity infection, arthritis, tumors or congenital Xycrobe, JLABS has been an program Recognized as “Public “ Program, launched in 2013, put us on a path causes. MAXFRAME enables surgeons to essential partner, helping us Health Initiative of the Year” in India to enterprise-wide implementation of a customize each frame to meet individual to grow from an idea on paper smarter and more efficient business model. patient needs. to proof-of-concept and all The new operating model will deliver the way to a tangible product/ $1 billion dollars in savings by the end therapy. It’s a brilliant model that of 2018, centralize key services related I wholeheartedly recommend to to Human Resources, Finance and any biotech startup.” Procurement in one global and four regional Thomas Hitchcock, Ph.D., Founder service centers, and deploy best-in-class and CEO, Xycrobe technologies to help our Company respond efficiently to business needs. 2017 Health for Humanity Report 7

Our People

The employees of Johnson & Johnson are the heart, mind and soul of our work. A total of 87% said they feel a strong Company and the foundation of our sustainable growth. In developing sense of purpose and meaning and 95% said they are willing to give extra effort to help the 21st-century workforce, we empower and inspire our people through Johnson & Johnson meet its goals. multifaceted engagement initiatives and programs that maximize their potential and allow them to thrive both personally and professionally. Diversity & Inclusion Our cross-cutting, enterprise-wide D&I We support this career development by curating a diverse, inclusive, has three pillars: advance our culture of high-performing and safe work environment. inclusion and innovation; build a diverse workforce for the future; and enhance business performance and reputation. Engaging with Professor Mahzarin Banaji Commitment to Talent for example, are voluntary, employee-led of Harvard University, in 2017 we provided Top 10 We focus on innovative, data-driven and groups that self-organize based on shared an “Unconscious Bias” training program to 2017 Working Mother progressive ways to select, onboard and identities/affinities and experiences, all our people leaders. This curriculum was retain our globally diverse talent. And and look to apply those perspectives 100 Best Companies for reinforced with e-learning modules and we ensure development is for everyone, to initiatives that create value for the group discussions, which are extending into Working Mothers regardless of role or the status of their enterprise. 2018. career journey or aspirations through comprehensive training opportunities and We launched a Global Pro Bono program To help us increase the diversity of the proactive career planning. in 2017 as another way for employees to candidate pool and remove bias, we use their “talent for good,” pairing Johnson #2 are leveraging innovative technologies, Empower & Inspire & Johnson employees with our non- Reuters including artificial-intelligence powered We encourage our employees to aim high governmental organization partners to help solutions like Textio to remove gender bias, Diversity and dream big, and offer ways to get build management capacity and improve, and Google Job API for more targeted hiring & Inclusion involved in areas that inspire them. We have strengthen and transform health systems. process. created programs and experiences that Index empower our employees to develop and Our Voice Survey share their unique contributions throughout The Johnson & Johnson “Our Voice” Survey our Company and within the communities conducted in 2017 showed employees feel engaged, inspired and empowered by their we serve. Our Employee Resource Groups, #15 2017 CareerBliss 50 Happiest Companies Johnson & Johnson sees the relevance of gaining awareness about how human in America. “minds work. They know that their success depends on becoming aware of the way our decisions are actually made, not just what we intend. And at Johnson & Johnson, they are committed to turning thinking into action by hiring and retaining the best ” Mahzarin R. Banaji, Department Chair of Psychology and Richard Clarke Cabot Professor of Social Ethics, Harvard University 2017 Health for Humanity Report 8

Environmental Health

Human health is inextricably linked to the health of the planet. We are committed to reducing We recognize that we can’t have healthy people without a healthy environmental impacts of our product packaging. In the emerging markets, we environment. At Johnson & Johnson, we are focused on marshalling are promoting scalable programs that help our expertise and resources to reduce our environmental footprint people generate value from waste, like and promote change to make better health a reality for more people, Project Phoenix, a program to help recycling cooperatives in Brazil improve their in more places. operational processes, develop a stronger social infrastructure and create a sustainable market for their materials. Optimizing our Operations risk sites identified in our water risk We recognize our responsibility to assessment process in the prior year Connecting the Dots Between Climate contribute to the global effort of tackling developed mitigation plans, and will start Action, Air Quality & Human Health Top 10 climate change and moving towards implementation in 2018. Air pollution is one of the leading risk in U.S. 2017 a low-carbon economy. In 2017, we factors for many acute and chronic diseases. Newsweek made significant progress against our Improving Product Sustainability Specifically, air pollution is responsible Green Rankings related Health for Humanity 2020 Goals. Our product stewardship strategy is based for 36% of deaths from lung cancer, 34% Approximately 25% of our electricity on science and a lifecycle view of product of deaths from stroke, and 27% of deaths consumption was from renewable sources, impacts—from discovery and design, raw from heart disease. According to the World and our CO2 emissions decreased by 21% material sourcing, and manufacturing, to Health Organization, 92% of citizens around globally compared with the 2010 baseline product use and end of life. EARTHWARDS the world live in areas that do not meet air 2017 (Scope 1 and Scope 2). is our in-house developed tool to integrate quality standards. As a leading healthcare Patent Award environmental sustainability across our company, we understand the link between for the Global Our plant in Beerse, Belgium, began diverse product portfolio. We identify environmental and human health. That is construction on a project that will provide and quantify improvement opportunities why we have partnered with the C40 Cities Aquatic geothermal energy for campus heating and across seven key impact areas: materials, Climate Leadership Group and its network Ingredient cooling. packaging, energy, waste, water, social of cities to help fund programs that will link impact and innovation. As of 2017, 118 cities acting on climate with the benefits Assessment (GAIA) Tool We are on track to meet our Health for Johnson & Johnson products achieved to air quality and human health. Through Humanity 2020 Goal related to water EARTHWARDS recognition. research and education, the C40 partnership management. In 2017, 38% of all high- will help connect the dots between better climate and air to measurably better health Founding Member benefits in vulnerable urban areas, and to Climate Leadership Council, gain political and financial buy-in and drive American Chemical Society’s Green Doctors are already providing medical care every day for people whose health greater action and impact at scale. Our goal Chemistry Pharmaceutical Industry “is impacted by climate change. Our partnership with Johnson & Johnson is is to help more people in major cities around Roundtable and the Healthcare Plas- helping physicians educate the public and policymakers about the reality that the world have cleaner air to breathe. tics Recycling Council ultimately climate health is about human health. ” 1 http://breathelife2030.org/the-issue/health-and- Mona Sarfaty, MD, MPH, Director, Program on Climate and health, Center for Climate Change climate-impacts/ Communications, George Mason University; Founder, Medical Society Consortium on Climate & Health 2017 Health for Humanity Report 9

Responsible Business Practices

Responsible business practices serve as the foundation of our Company’s ▪▪ focus on quality and safety at each phase success and are imperative to protecting the broader healthcare system of product lifecycles; and the communities in which we live and work. It starts with Our Credo, ▪▪ commitment to continuous improvement and innovation; which guides our culture of ethical leadership and integrity, delivered by a diverse, skilled workforce committed to serving the patients, ▪▪ and ensuring supply chain integrity for brand protection. customers, consumers and all others who rely on us. Patients and consumers are at the center of our safety surveillance activities. We engage patients and seek to integrate their input Ethics & Transparency Johnson & Johnson’s Consumer business throughout all stages of a product lifecycle, We believe in conducting our business with segment became the first consumer from development to commercialization. integrity. For us, this means complying with company to make clinical trial data available 2017 Our Pharmaceutical R&D group launched applicable legal, regulatory and industry to researchers through the YODA Project. Corporation of the Year a Patient Voice initiative in 2017 to help code requirements and upholding the inform and improve our clinical trial designs by the Minority Business highest standards in every aspect of our Product Quality, Safety & Reliability by sharing clinical trial plans with patients, business and in every market where we Patient and consumer safety first is an Development Agency gathering patient feedback on protocols, operate. We continuously self-reflect and absolute priority at Johnson & Johnson. and modifying clinical trial design, refine our transparency and disclosure To save and improve lives, our products recruitment and retention. practices based on wider societal context and solutions must in the first place be as effective, safe, and free of defects as and stakeholder expectations. Responsible Supply Base 100% Score possible. Our approach to product quality, We are committed to engaging and Bioethics Our Johnson & Johnson Code of Business safety and reliability is founded on: partnering with suppliers who are Conduct, Ethical Code of Conduct International transparent, can assure us of responsible for Research & Development, and our ▪▪ adherence to Johnson & Johnson quality Good Pharma business conduct, and can verify compliance Health Care Compliance policies outline and safety standards that apply to all of their operations with our Responsibility Scorecard standards of behavior that are expected operations globally; Standards for Suppliers and relevant legal of all employees, and guide our focus on and regulatory requirements. In 2017, we protecting privacy, enacting transparency, completed an update of our Standards to and executing patient-centered decision include enhanced requirements on quality, making. Johnson & Johnson has more Admitted expanded requirements on human rights, to CDP’s Supplier Engagement than just a commitment to data In 2017, we published our inaugural Janssen “ and a new section focused on Health Care Leader Board, receiving an “A” for sharing; they are, with their bold U.S. Transparency Report (covering 2016) Compliance and Privacy. In tandem, we outstanding performance in supplier and inspiring action, leading us that highlights how we set prices for our continued developing our supplier human engagement. to a new era of science, where medicines, clinical data transparency, rights risk assessment approach with the researchers work together for the investments in research and development, social audit program to be piloted in 2018. greater good patient access programs and other resources. Harlan Krumholz, MD, SM, ”Harold Hines, Jr. Professor of Medicine, Yale University Building on our successful participation in School of Medicine the Yale Open Data Access (YODA) Project, 2017 Health for Humanity Report Progress in Citizenship & Sustainability

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Front Cover: Johnson & Johnson is proud to partner with Save the Children on their Journey of Hope program, delivering emotional support to children and their families most affected by natural disasters. Photo by Susan Warner forSave the Children. Hurricane Harvey 2017.