Sustainability is an indispensable part of the strategic agenda of Janssen. The company's focus on sustainability is coupled with communication about its sustainability strategy and its performance in this area. Effective reporting of sustainability aspects is important to Janssen. Since 2002, the company has been publishing a Sustainability Report. To better structure and monitor the sustainability information and to more effectively communicate it to the stakeholders, the company has been following the guidelines of the Global Reporting Initiative (GRI) since 2012.
The publication of a transparent Sustainability Report fits into the strategic objective of involving the stakeholders in the company's operations. A transparent, online Sustainability Report, integrated for all locations in Belgium, contributes to a better dialogue and collaboration with the surroundings and with the stakeholders in the context of achieving a sustainable health model.
The result was the Report to Society 2012, which is now available in a completely digital version according to the GRI.3 guidelines (B-level). During a workshop in consultation with the interested parties, all GRI indicators were critically reviewed and a number of pharmaceutical indicators were also added to the list. For the 2013 report, Janssen is taking the same approach. The company is discussing the same indicators as it did in 2012, although some of the data for the 2013 report are not yet available.
Where possible, the company will make a preliminary report regarding the policy approach. Janssen has the ambition to further supplement this information in coming years.
The approach of the Report to Society 2013 was further refined and improved on the basis of the input that the company received from its stakeholders at the Kauri General Meeting. On the panel were:
- Prof. Luc Van Liedekerke - Antwerp Management School / Center for Economics and Ethics KU Leuven
- Dr. Didier Vander Steichel - Medical and Scientific Director of the Anti-cancer Foundation
- Karel Ghyselinck - Health Expert at the Belgian Technical Cooperative and Chairmen of the Because Health Forum
The jury of the Award for Best Belgian Sustainability Report provided important input and constructive feedback to the company.
- Some stakeholders still prefer a paper report. Janssen is partially filling this gap by putting some of the sustainability initiatives of 2013 on paper;
- The company can still improve by providing a clear overview of its goals and objectives;
- The company can still improve its reporting by implementing the input from its stakeholders in the improvement process;
- There was a specific question regarding what Janssen undertakes in the area of neglected diseases;
- The structure, the ease-of-use, the online report and the dynamic ‘GRI table’ with links to other pages were all seen as positive
In the future, Janssen will strive to apply the GRI G4 guidelines.
This reporting concerns four legal entities: Janssen Pharmaceutica NV, J.C. General Services CVBA, Janssen-Cilag NV and Janssen Infectious Diseases-Diagnostics BVBA. In coming years, we want to evolve to a form of sustainability reporting which includes all of the activities of Janssen in Belgium.
With the current scope, however, we represent 93% of Janssen in Belgium. If not specifically mentioned, the aforementioned entities make up the scope of this report. Janssen has chosen to implement a gradual expansion of this scope and will include more data in this reporting in a step-by-step manner.
In addition to the existing internal and external controls, the Janssen Campus decided in 2012 to subject the Sustainability Report to a so-called ‘Agreed Upon Procedures’ control. Ernst & Young were selected as our partner in this undertaking. In their role as independent auditor, they screened this Sustainability Report for:
- adherence to the GRI guidelines and
- the testing of the sustainability reporting procedures and performance data in preparation of our objective of carrying out a limited assurance of our Sustainability Report in the future.
Given that in 2013 Janssen employed the same indicators as it did the previous year and that it is evolving toward the GRI 4, would it not be advisable to certify the GRI data?
- Data collection: the information is collected primarily by separate internal systems, per legal entity within the scope of this report. In the coming years we want to achieve a more centralized integration of this data collection.
- Reporting protocol Johnson & Johnson (J&J) Healthy Future 2015: as part of our company-wide sustainability policy, the J&J Healthy Future 2015 goals, most of the social and environmental data are reported and verified internally at group level
- Internal and external verification:
- Ecological data: all data on water, energy, CO2, emissions and waste are internally collected by a central data collection system, verified and mostly reported in the comprehensive annual environmental report. Furthermore, the energy data for the Beerse and Geel sites are externally verified each year as part of the energy covenant governing the sites. Our ecological data also form part of the data set that is verifiable as part of the annual ISO14001 audit by independent third parties.
- Social data: as of 2012, data on Janssen employees in Belgium form part of a centralized HR database system that is operational across the different legal entities. The key data on workforce, training, inflow and outflow, and absenteeism form part of the social balance sheet. The seriousness and frequency of accidents are reported in the annual report of the joint internal workplace health and safety department and form part of the data set that is verifiable as part of the annual OHSAS 18001 audits by independent third parties. Data on support to patient organizations are internally verified in accordance with regulations.
- Economic data:
- the reported financial figures (including R&D investments) per legal entity are subject to internal verification and external annual financial audit by an independent auditor;
- data on ethical drug research and animal experiments are internally and externally reported and verified by the competent regulatory authority;
- data on production quality are internally and externally reported and verified by the competent regulatory authority.
Janssen applies high ethical standards and sets great store by the trust of all our stakeholders in health care. Our stakeholder approach is premised upon the Credo of our parent company Johnson & Johnson, a an ethical code that sets out the company's responsibilities to its patients, health care professionals, its own employers and the community. Our Credo dates from 1943 and still applies to all Johnson & Johnson companies worldwide. It describes who our key stakeholders are and their importance to our organization model:
- our primary responsibility lies with all physicians, nursing staff and patients, mothers and fathers, and all others who use our products and services;
- suppliers and distributors;
- the community and the international context;
The wider community also includes important stakeholders such as:
- NGOs and social organizations with which we work together locally and internationally or from which we receive inquiries and;
- local residents.
Our stakeholder approach is integrated in our business operation. Our stakeholders are involved in our business through different channels and campaigns
Given the importance of accessible and affordable medicines for all, the pharmaceutical industry is subject to strict regulations and an array of audits and controls. We attach great importance to our ethical responsibility in our stakeholder relations. Our Code of Conduct is one example of internal regulation.
In our external relations, too, contacts with our key stakeholders are strictly regulated: for instance, we must not have direct contact with patients - only with patient organizations.
In order to properly understand our stakeholders and involve them in an appropriate manner where necessary, we conduct several stakeholder surveys and analyses each year. For the purposes of this sustainability report, for instance, we made an analysis of:
- the annual pharma.be (professional organization of Belgian pharmaceutical industries) survey about who the main pharmaceutical stakeholders are and their expectations;
- the equivalent EFPIA survey at the European level (European Federation of Pharmaceutical Industries Association), with focus on the Belgian pharmaceutical stakeholders and their expectations;
- a stakeholder survey (May 2012) conducted by an independent third party about the stakeholders of Janssen in Belgium and their specific expectations;
- a press survey of sustainability-related items on Janssen Belgium in 2012, from the viewpoint of broader (Belgian) society.
- Pharma.be, the professional organization of the Belgian pharmaceutical industry, conducts an annual survey among Belgian stakeholders in the healthcare sector. They identified the following key stakeholder groups for the pharmaceutical industry in Belgium:
- healthcare professionals who give advice on drugs and deliver drug prescriptions (doctors, nurses, pharmacists);
- patients (patient organizations) who use medicines;
- the financial community that funds research;
- regulators/policymakers who issue the license-to-operate;
- scientists with whom the industry works together.
|Stakeholder group||What they find important|
|General public||1 - Governance (open or closed structure)|
2 - Products/services (safe and high quality, medicines that improve quality of life)
3 - Performance
|Health care professionals||1 - Governance|
2 - Public spirit (helping to create a healthier society: accessible and affordable treatment for everyone)
3 - Performance
|Opinion leaders||1 - Innovation (new medicines and treatments)|
2 - Products/services
3 – Public spirit
The pharma.be survey also pinpoints the driving forces behind the reputation which those stakeholders find important, as appears from the table below:
- patient well-being;
- necessary and life-saving products;
- safe and reliable products;
- positive impact on the economy;
- complete and reliable information;
- demonstration of scientific evidence;
- partner in solving and anticipating health problems;
- honest management;
- social and environmental responsibility;
- openness and transparency;
- satisfaction of consumer needs;
- reinvestment of profit in Research & Development;
- ethical behavior.
A stakeholder survey commissioned by Janssen and conducted in May 2012 showed that Janssen stakeholders in Belgium see the role of the company as "a partner that provides affordable health care by working together with stakeholders and partners on the main challenges facing this country, such as population ageing and chronic illnesses". The key themes are:
- working on disease prevention (prevention);
- less administration (effectiveness)
- quality products/services;
- patient information and support;
- personalized medicines (safety and quality, value, disease awareness);
- transparent product information (business transparency, research transparency, product transparency);
- innovations (great progress);
- affordability/access to medicines for low income groups (fair pricing);
- efficient cost control (efficiency);
- combat drug overconsumption (drug loyalty/communication).
In consultation with Business & Society Belgium, the intention to organize a stakeholder consultation in 2015 for the pharmaceutical industry in Belgium was announced. This would allow the material themes to be laid down for the entire sector. Janssen is a proponent of reviewing these themes at the level of the sector and is collaborating on this proposal.
Today's medical challenges have never been so complex. Janssen aims to be actively involved in shaping and building the healthcare model of tomorrow.
Sustainability plays an important part in those medical challenges.
The materiality is defined based on an extensive investigation of:
- general trends and trends within the pharmaceutical industry;
- sustainability reports of representative national and international pharmaceutical companies;
- different stakeholder analyses (scope: worldwide and Belgium - EFPIA, pharma.be);
- press reports on Janssen in Belgium;
- analysis of key issues of the global Johnson & Johnson 2020 strategy and those of the local Janssen sustainability strategy;
- the SASB (Sustainability Accounting Standards Board) healthcare standards, published in August 2013.
On the basis of the above analyses, the following material issues were selected for this report:
- economic policy
- key figures
- Research & Development
- Supply Chain
- green policy
- green initiatives
- green certifications