Feature: Carbon Strategy

We have set ourselves a target of achieving carbon neutrality by 2017. But what does this actually mean and how are we working to achieve it? In this section we describe our efforts to date and plans for the future as we develop our carbon neutrality strategy.

Towards Carbon Neutrality – Developing our Strategy

The issue of climate change and the actions required to tackle it remain a prominent feature of global agendas at many levels. Climate change, in fact, presents many opportunities for Johnson Matthey. Our products and technologies have a role to play in mitigating its effects and we are working to ensure we are well positioned to maximise the benefits to our business. At the same time, we recognise that we must also manage the potential negative impacts arising from climate change and understand how our business will operate in an increasingly carbon constrained world.

Achieving carbon neutrality is an aspiration of Johnson Matthey’s Sustainability 2017 Vision and working towards this target forms the foundation from which we can manage the positive and negative impacts of climate change. It provides a stimulus for the group to take advantage of the opportunities arising from climate change by developing products and technologies that can be a part of the solution. At the same time, achieving carbon neutrality also requires us to focus on minimising our contribution to the problem and gives us an impetus to drive down emissions resulting from our activities.

The launch of this vision in December 2007 marked the start of our journey towards carbon neutrality. We have set ourselves a target of achieving it by 2017. But what does carbon neutrality actually mean to Johnson Matthey and what plans are we developing to achieve it?

What is Carbon Neutrality?

For Johnson Matthey the working definition of carbon neutrality states:

“Achieving carbon neutrality means that through a transparent process of calculating emissions, reducing those emissions and offsetting residual emissions, our net carbon emissions equal zero.”

Following the launch of Sustainability 2017 there has been a structured, ongoing debate involving employees and external stakeholders to initiate the process of developing a strategy to achieve zero net carbon emissions. We have held two ‘Carbon Days’, facilitated by external experts, at which representatives from Johnson Matthey’s global businesses and functions met to establish a definition for carbon neutrality, examine the best practice of (and pitfalls encountered by) others and explore methods that we may apply. As a result of these Carbon Days, recommendations have been made which form the basis of a carbon neutrality strategy.

The strategy is now in its early stages of development and its objectives have been defined:

• To reduce the total global warming potential (GWP) of Johnson Matthey’s activities to a minimum on a cost effective basis.
• To offset residual GWP on an annual basis.
• To reduce the GWP of our products across the supply chain (including the in-use, end of life and recycling phases) to support our customers.
• To develop new products and services to meet the sustainability needs of customers in the low carbon and clean technology sectors.
• To competently substantiate claims on the GWP of our activities including our operations and our products / services.
• To publish, on an annual basis, the carbon savings attributable to low carbon products and services supplied to our customers.

Reducing GWP

Since the launch of Sustainability 2017, facilities across the group have been engaged in energy efficiency initiatives to reduce their CO2 emissions. Businesses are also setting energy reduction targets as part of their annual sustainability plans to drive further progress.

Work is also underway to explore the viability of replacing current sources of fossil fuel derived energy used by the group with sources that have a lower embedded carbon content. On site / decentralised green energy generation can offer many benefits and our businesses are encouraged to investigate what government subsidies may be available locally for these investments. Johnson Matthey’s operations in West Deptford, USA secured state funding and have installed a fuel cell powered combined heat and power (CHP) plant to power one of its production plants. Our in house calculations show that converting some of our other plants around the world to green energy could bring about double digit reductions in carbon footprint. We are also examining the benefits versus risks associated with installing wind power at suitable sites.

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