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.