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  The
board has always ensured that the group operates according to well established
ethical, social and environmental policies. This year Johnson Matthey
is publishing its first corporate social responsibility (CSR) review,
which is presented here in summary. The full report, covering policies,
environmental performance and our social and economic contribution to
sustainable development, is available on our website at www.matthey.com.
The statements on corporate
social responsibility disclosure follow the guidelines issued by the Association
of British Insurers and the detailed analysis in the full report is based
on the format recommended by the Global Reporting Initiative. As outlined
in the Corporate Governance section on page 31 the board has embedded
corporate social responsibility into its risk management process. Corporate
social responsibility is championed at the highest level at Johnson Matthey
and the board has reviewed and fully endorsed the CSR review.
Many of our products have
a particularly positive social and environmental benefit. They range from
anticancer compounds to our autocatalyst technologies, which improve air
quality around the world. In addition, our fuel cell products are poised
to make a significant contribution to the generation of clean energy and
security of supply. Whilst Johnson Matthey’s main contribution to
sustainable development will be through our products we also seek to contribute
through the management of the business and in the quality of our manufacturing
operations. Our expertise in processing precious metal materials provides
us with a core competence in the conservation, reuse and recycling of
natural resources, principles which are now applied throughout our business.
Johnson Matthey has a culture
of continuous improvement in all aspects of performance. In this area
improvement is driven through corporate policies, a comprehensive management
system and the commitment of our staff. There are three key policy areas,
which provide the framework for the management of corporate social responsibility
– the Environment, Health and Safety policies, the Employment policies
and the Business Integrity and Ethics policy.
“Johnson Matthey is firmly committed to managing
its activities throughout the group so as to provide the highest level
of protection to the environment and to safeguard the health and safety
of its employees, customers and the community.”
The
company’s Environment, Health and Safety (EHS) policies provide the
guiding principles that help ensure high standards are achieved at our
sites around the world whilst promoting continuous improvement based on
careful risk assessment and comprehensive EHS management systems. These
policies, summarised in the company’s policy statement (see box on
page 24) are regularly reviewed. Corporate policies provide a framework
for all Johnson Matthey businesses to formulate site specific policies
to meet local requirements.
Internal
EHS audits are an integral part of Johnson Matthey’s corporate EHS
management system. 68 facilities from our operations worldwide are included
in the audit programme. 87 audits have been carried out over the last
three years, with 32 in 2002. Audit reports are reviewed by the Environment,
Health and Safety Committee. Further site visits were made to oversee
health surveillance programmes by the Group Occupational Physician.
Our
investment in plant and equipment has continued over the last year. In
addition to environmental improvements this enables us to design and operate
processes that are inherently safer and more resource efficient than previous
designs. Resource efficiency is second nature to managers in the business
who are charged with the responsibility of handling materials and products
of high intrinsic value, many of which are recyclable.
Our
operating units are moving towards ISO 14001 certification. At present
11 sites are certified with a further six sites in the final stages of
assessment. Some 2,300 people or 29% of our staff work at ISO 14001 locations.
Over the past year four ISO 14001 certified sites have joined Johnson
Matthey through the acquisition of Synetix, Clitheroe and Chilton in the
UK and Oberhausen and Emmerich in Germany.
Training
is vital to ensuring continuous improvements in EHS performance. Over
the past year staff of all grades have received training with a wide range
of courses available to employees. Our major sites employ health and safety
training specialists. Expert external trainers supplement in house capabilities
where necessary.
One
of the key aims of Johnson Matthey’s EHS policy is to achieve continuous
improvement in performance through target setting. Targets which have
been set by our business units are reviewed on a group wide basis. Such
targets typically include:
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Reductions in waste and emissions to air or water. |
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Reduction in energy and commodity use. |
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Training of employees in EHS issues. |
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Undertaking inspection programmes. |
Over
the past year we have set corporate health and safety targets in line
with the UK Health and Safety Executive (HSE) Revitalising Health and
Safety initiative. We have adopted the following HSE targets with a baseline
year of 2000 for our worldwide operations.
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Reduction of working days lost by 15% by 2004 and by
30% by 2010. |
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Reduction in the incidence rate of major injuries by
5% by 2004 and 10% by 2010. |
A
group wide review of environmental performance is undertaken annually,
focusing on our key impacts including global warming, waste generation
and water consumption. The following graphs highlight our environmental
performance indexed to turnover and our health and safety performance
in absolute terms. Further details are provided in our full CSR review
as published on our website.
As
shown in our Business Integrity and Ethics Policy Statement, we support
the principles set out within the United Nations Universal Declaration
of Human Rights and International Labour Organisation Core Conventions.
Whilst we are confident of the performance of our own operations, we recognise
that business practices in the supply chain are not always transparent
and represent a risk that must be managed.
The
CSR review gives examples of the way Johnson Matthey supports its local
communities. In South Africa, for instance, we have provided support for
underprivileged students at the University of Cape Town, through which
at least nine students a year are given a bursary and also work experience
at Johnson Matthey operations in the country. We have just concluded a
successful charity of the year programme in support of the NSPCC. Johnson
Matthey’s charity of the year for 2003 is Diabetes UK. The company
also supports many other charities locally and nationally. As noted in
the Directors’ Report, total charitable giving in 2002/03 was £323,000.
The
board reviews CSR issues as part of its risk management process. The board
believes that the measures taken to review the CSR information provide
a suitable level of confidence without external audit. Johnson Matthey
would utilise external specialists where specific CSR issues were identified.
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| *Adjusted for sales 1999 =
100% |
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The
growth in international markets for autocatalysts has been driven by efforts
to legislate for cleaner air. Johnson Matthey has played a vital role
in the improvement of air quality through the manufacture of autocatalysts
for cleaning vehicle exhaust emissions from petrol and diesel fuelled
cars and continuously regenerating traps (CRTs) for treating emissions
from heavy duty diesel vehicles.
Johnson
Matthey autocatalysts dramatically reduce emissions of carbon monoxide,
oxides of nitrogen, volatile organic compounds and particulates from a
wide range of road vehicles.
As
part of our commitment to improving the environment Johnson Matthey is
active in monitoring the impact of its products. A recent company study
has shown that Johnson Matthey autocatalysts have saved millions of tonnes
of pollutants from entering the environment. More details of this study
are available in the corporate social responsibility report at www.matthey.com.
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Johnson
Matthey is firmly committed to managing its activities throughout the
group so as to provide the highest level of protection to the environment
and to safeguard the health and safety of its employees, customers and
the community.
The
company’s Environment, Health and Safety policies have been widely
disseminated and provide the guiding principles necessary to ensure that
high standards are achieved at all sites around the world. They also afford
a means of promoting continuous improvement based on careful risk assessment
and comprehensive EHS management systems, against which all sites are
audited.
This
policy and its associated procedures are designed to achieve the following
corporate objectives:
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That all locations meet legal and group environment,
health and safety requirements. |
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That the design, manufacture and supply of products
is undertaken so as to satisfy the highest standards of health, safety,
environmental protection and resource efficiency. |
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That management systems are effective in maintaining
standards and fulfilling the challenge of securing continuous improvement
in environmental, health and safety performance. |
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In order to achieve these objectives we will: |
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Provide leadership and commitment as an expression
of the importance that the board and the senior management team place
on EHS issues. |
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Ensure accountability by holding corporate management
and senior executives within each operating division and business
unit responsible for EHS performance. |
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Provide the financial and human resources to allow
EHS issues to be given an appropriate level of priority. |
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Provide good communication internally and externally
and encourage employee involvement and cooperation at all levels in
the organisation in meeting EHS objectives. |
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Ensure competence on EHS matters through education,
training and awareness at all levels in the organisation, including
creating an understanding of individual responsibilities for health
and safety and the environment. |
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Undertake assessments to identify the risks to health,
safety and the environment from company operations and ensure that
appropriate control measures are implemented. |
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Ensure that new investments are designed and operated
to the latest standards so as to eliminate or minimise risks to health,
safety and the environment. |
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Investigate incidents to identify the root cause and
take action to prevent recurrence. |
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Promote programmes to achieve energy and resource efficiency. |
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Set key corporate objectives and performance targets
that can be measured and assessed, reporting results in a meaningful
and transparent way both internally and externally. |
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Undertake regular EHS inspections and audits of operations,
and review performance to ensure continuous improvement in EHS management. |
The
group EHS management system will be reviewed regularly to ensure that
it reflects international best practice and our growing understanding
of the practical application of sustainable development.
It
is the policy of the group to recruit, train and manage employees who
meet the requirements of the job, regardless of gender, ethnic origin,
age or religion. Employees who become disabled and disabled people are
offered employment consistent with their capabilities.
Johnson
Matthey recognises the importance of recruiting the very highest calibre
of employees, training them to achieve challenging standards in the performance
of their jobs, and developing them to their maximum potential.
Our
policy requires careful review of organisation structure, succession and
the development of high potential people to meet our business goals. The
Management Development and Remuneration Committee of the board takes a
special interest in ensuring compliance with the Training and Development
of People Policy.
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Ensure highest standards in the recruitment of staff. |
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Assess training needs in the light of job requirements. |
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Ensure relevance of training and link with business
goals. |
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Employ and evaluate effective and efficient training
methods. |
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Promote from within, from high potential pools of talent. |
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Understand employees’ aspirations. |
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Provide development opportunities to meet employees’
potential and aspirations. |
Johnson
Matthey recognises the importance of effective employee communications.
Information and comment is exchanged with employees through the company’s
in-house magazine, regular news bulletins, presentations to staff and
team briefings.
A
reputation for integrity has been a cornerstone of Johnson Matthey’s
business since it was founded by Percival Norton Johnson in 1817. It gives
customers the confidence that the company’s products meet the standards
claimed for them and that they may safely entrust their own precious metals
to Johnson Matthey for processing and safe keeping. Employees at all levels
are required to protect Johnson Matthey’s reputation for integrity.
The
company strives to maintain the highest standards of ethical conduct and
corporate responsibility worldwide through the application of the following
principles:
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Compliance with national and international laws and
regulations is required as a minimum standard. |
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Reputable business practices must be applied worldwide. |
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Conflicts of interest must be declared and appropriate
arrangements made to ensure that those with a material interest are
not involved in the decision making process. |
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Improper payments of any kind are prohibited, similarly
no gift whose value is material or which may be interpreted as a form
of inducement should be accepted or offered by Johnson Matthey employees. |
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Reporting of business performance should be undertaken
in such a way that senior management is fully and properly informed
concerning the business’ true performance, risks and opportunities
in a timely manner. |
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Ethical issues must be dealt with in an efficient and
transparent manner. |
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A positive contribution to society as a whole, and
specifically the communities in which we operate, must be ensured. |
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We must seek to influence our suppliers to operate
to similar high standards as ourselves. |
We
support the principles set out within the United Nations Universal Declaration
of Human Rights and International Labour Organisation Core Conventions.
It
is the responsibility of directors and senior management to ensure that
all employees who directly or indirectly report to them are fully aware
of Johnson Matthey’s policies and values in the conduct of the company’s
businesses. It is also the responsibility of directors and senior management
to lead by example and to demonstrate the highest standards of integrity
in carrying out their duties on behalf of the company. These issues are
further safeguarded through corporate governance processes and monitoring
by the board and sub-committees to the board.
Up
to now the recovery of precious metals used as catalysts in chemical processes
has involved the use of incineration. The new AquaCat™ technology
being commissioned at Johnson Matthey’s Brimsdown, UK facility uses
a process based on supercritical water oxidation which provides many environmental
and economic benefits.
Precious
metals are used extensively in catalysts which improve the efficiency
of a wide range of industrial chemical processes. The metals used, platinum,
palladium and rhodium, represent a huge investment and the rapid and economical
recovery of the metal from spent catalyst is a vital part of their use.
Typically
spent process catalysts are contaminated with organic materials from the
reaction mixture as well as the material used to support the catalyst,
often carbon. These organic materials can be very hazardous and traditionally
have to be removed before the exact quantity of metal present can be established.
The
AquaCat™ process offers vast environmental improvements on incineration
since it requires almost no external source of thermal energy, eliminates
the need for expensive exhaust gas treatment, reduces the amount of physical
handling of the material and makes containment easier.
Direct
sampling of the customer material is the first stage of the AquaCat™
process. This means that the amount of metal is predetermined before any
processing takes place.
Johnson
Matthey has put great emphasis on ensuring the integrity of the new sampling
process. We have consulted with customers to ensure that they are satisfied
with the accuracy achieved and are comfortable that the new techniques
do not compromise our commitment to ethical business conduct.
The
AquaCat™ technology also allows processing equipment to be installed
at customer sites. This may be particularly important to the pharmaceutical
or petrochemical industries where the residue is either highly bioactive
or high in volume making handling and transport difficult.
The
AquaCat™ technology was developed in partnership between Johnson
Matthey and Chematur Engineering AB.
After
the completion of the commissioning process it is anticipated that AquaCat™
will make a major impact to the services provided by our Brimsdown site.
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