Progress Towards Sustainability 2017
It is now about 18 months since we launched the Sustainability 2017 Vision and 2008/09 represents the first full year of the initiative. We have concentrated on fully embedding sustainability into our routine management processes and since the start of 2008/09, all of Johnson Matthey’s businesses have established and implemented their own sustainability plans as part of the group’s annual financial budgeting process.
With our Sustainability 2017 targets in place we have now established our baseline data and have developed appropriate key performance indicators (KPIs) to enable us to measure performance. 2006/07 has been set as the baseline year against which all comparisons will be made as this reflects the time at which the Sustainability 2017 Vision was launched (December 2007). Progress during this first full year of the initiative is summarised in the table below.
Our Key Performance Indicators
At least double earning per share – Since 2006/07 our underlying earnings per share have increased by 9% from 82.2 pence to 89.6 pence. Growth has been held back by the impact of the global recession but the medium term outlook remains encouraging.
Achieve carbon neutrality – Progress towards achieving carbon neutrality is measured according to the group’s total global warming potential (GWP) which has fallen from 386,074 tonnes CO2 equivalent in calendar year 2006 to 370,787 tonnes in 2008/09. Our total GWP is based on our direct and indirect energy usage and CO2 equivalence which provide a strong platform for monitoring the impacts associated with energy use in our operations. In order to move to a position of carbon neutrality by 2017, we need to broaden the scope of our measurement to include all aspects of our business. We recognise the complexity and challenges associated with this programme of work but believe this will show the broadest impact of our operations while demonstrating the benefit that our products and services provide to our customers, society and the planet.
The above values are derived using a methodology applied by the group since it began reporting on its global warming potential. This year we have also calculated GWP using a more precise method that reflects country specific carbon intensity of purchased electricity. Using the new methodology, our total GWP for 2006 is calculated at 401,119 tonnes CO2 equivalent and for 2008/09 is 380,161 tonnes CO2 equivalent. Click here for a full description of the new methodology.
Achieve zero waste to landfill – In working towards our target of zero waste to landfill, we have reduced the amount of waste sent to landfill by 67% from 16,555 tonnes in calendar year 2006 to 5,535 tonnes in 2008/09. This demonstrates excellent progress which is due to the improved performance of our own operations in reducing the amount of waste at source, enhancements in recycling programmes and changes in legislation.
Halve key resources consumed per unit of output – The KPIs for monitoring progress towards the target of halving key resources consumed per unit of output have been developed through consultation with all of Johnson Matthey’s facilities worldwide. The top three key resources were identified for each facility and from this electricity consumption, natural gas consumption and water use emerged clearly as most significant to the majority of the group. Since 2006, electricity consumption has reduced by 8%, natural gas consumption has increased by 5% and water use is up 2%. Having established the key resources, we will now focus further on progressing towards the targets we have set.
Additional Targets and KPIs
In addition to our Sustainability 2017 targets, the group has targets in place relating to group safety and ISO 14001 implementation.
Achieve a zero 'greater than three day accidents' safety target – We actively monitor accidents and compile detailed statistics on a monthly basis at a group level. In March 2009 the incidence of greater than three day accidents at Johnson Matthey was calculated as 4.48 per 1,000 employees per year, an increase of 39% compared with 3.22 (restated) in March 2008. Following steady improvement in our accident statistics in previous years, our performance in 2008/09 has highlighted the need to revitalise Johnson Matthey’s accident prevention processes. The company has recently launched an initiative to introduce ‘EHS Learning Events’ to all facilities to help drive a reduction in the rate of injuries resulting in lost time.
Implement ISO 14001 (environmental management system) at all manufacturing sites by 2010 – Good progress has been made and by the end of 2008/09, 32 sites had achieved ISO 14001 registration, representing 80% of our manufacturing workforce. All other manufacturing sites have plans in place to achieve registration during 2009/10.
We have continued to refine our metrics and methods of measurement to enable us to monitor our progress objectively. Studies have continued to assess tools for the carbon footprinting of our processes and products, and for examining the comparative impacts of products throughout their life cycle.