Johnson Matthey Sustainability Report 2009/10

GRI Summary

Bplus logoJohnson Matthey continues to develop sustainability metrics and reporting criteria in alignment with those developed by the Global Reporting Initiative (GRI). More information on the GRI Reporting Framework can be found at the GRI’s website.

The report has been prepared according to the GRI G3 Sustainability Reporting Guidelines and has been assessed by Corporate Citizenship using the AA1000AS assurance standards. This third party assurance of the report allows a declaration of a GRI B+ standard.

GRI diagram

A summary of our reporting principles, reporting guidance and standard disclosures (including performance indicators) is given in the following tables.

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1. Profile

  Description Location / Section
1.1 Statement from the most senior decision maker of the organisation

Annual Report 2010

arrow icon Chief Executive’s Statement

arrow icon Chief Executive’s Introduction

1.2 Description of key impacts, risks and opportunities

Section 1 – Impacts upon sustainability, challenges and opportunities

Section 2 – Prioritisation of sustainability topics, target review, governance of sustainability

arrow icon Material Issues

Annual Report 2010

arrow icon Sustainability

Annual Report 2010

arrow icon Risks and Uncertainties

arrow icon Company Website – Sustainability 2017

arrow icon Key Performance Indicators

2. Organisational Profile

  Description Location / Section
2.1 Name of the organisation arrow icon Sustainability Report 2009/10 Home
2.2 Primary brands, products and / or services

Annual Report 2010

arrow icon The Group at a Glance

2.3 Operational structure of the organisation

Annual Report 2010

arrow icon The Group at a Glance

2.4 Location of organisation’s headquarters

Annual Report 2010

arrow icon Company Details

2.5 Number of countries where the organisation operates

Annual Report 2010

arrow icon Introduction

2.6 Nature of ownership and legal form

Annual Report 2010

arrow icon Principal Subsidiaries and Associate

Annual Report 2010

arrow icon Company Details

2.7 Markets served

Annual Report 2010

arrow icon The Group at a Glance

Annual Report 2010

arrow icon Group Activities

Annual Report 2010

arrow icon Operations Review

2.8 Scale of the reporting organisation

Annual Report 2010

arrow icon Note 12, Employee and key management personnel costs

Annual Report 2010

arrow icon Consolidated Income Statement

Annual Report 2010

arrow icon Five Year Record, sales excluding the value of precious metals

Annual Report 2010

arrow icon Note 2, Revenue

Annual Report 2010

arrow icon Consolidated and Parent Company Balance Sheets

Annual Report 2010

arrow icon Other Statutory Information, Major Shareholders

Annual Report 2010

arrow icon Shareholder Information

Annual Report 2010

arrow icon Sustainability, Employees by Region

2.9 Significant changes during the reporting period regarding size, structure or ownership

Annual Report 2010

arrow icon Note 40, Acquisitions

Annual Report 2010

arrow icon Note 41, Discontinued operations

2.10 Awards received during the reporting period

arrow icon Our Stakeholders

arrow icon Case Studies – Service to the Community Recognised in Royston

arrow icon Company Website – Innovation

3. Reporting Parameters, Report Scope & Boundary

  Description Location / Section
3.1 Reporting period arrow icon About this Report
3.2 Date of most recent report arrow icon About this Report
3.3 Report cycle arrow icon About this Report
3.4 Contact point for questions regarding the report or its contents

arrow icon Contact Us

arrow icon Feedback

3.5 Process for defining report content, including materiality, prioritising topics, identifying stakeholders

arrow icon Material Issues

arrow icon About this Report

arrow icon Our Stakeholders

arrow icon Case Study – Getting our Reporting Right

3.6 Boundary of the report arrow icon About this Report
3.7 Limitation on the scope of the report arrow icon About this Report
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities and other entities that can significantly affect comparability from period to period arrow icon About this Report
3.9 Data measurement techniques and the bases of calculations

Annual Report 2010

arrow icon Accounting Policies

arrow icon Performance Summary

arrow icon Performance Summary – Social

arrow icon Performance Summary – Health and Safety

arrow icon Performance Summary – Environment

arrow icon Social: Our Performance

arrow icon Health: Our Performance

arrow icon Safety: Our Performance

arrow icon Environment: Our Performance

arrow icon About this Report

3.10 Explanation of the effect of any restatements of information provided in earlier reports

arrow icon About this Report

arrow icon Environment: Our Performance

arrow icon Health: Our Performance

arrow icon Safety: Our Performance

3.11 Significant changes from previous reporting periods in the scope, boundary or measurement methods applied in the report arrow icon About this Report
3.12 Table identifying the location of the standard disclosures in the report arrow icon GRI Summary
3.13 Policy and current practice with regards to seeking external assurance for the report arrow icon Verification and Assurance

4. Governance, Commitments & Engagement

  Description Location / Section
4.1 Governance structure of the organisation, including committees under the highest governance body responsible for specific tasks, such setting strategy or organisational oversight

Annual Report 2010

arrow icon Corporate Governance

arrow icon Governance

arrow icon Managing Sustainability

Annual Report 2010

arrow icon Sustainability, Governance

4.2 Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the organisation’s management and the reasons for this arrangement)

Annual Report 2010

arrow icon Corporate Governance

Annual Report 2010

arrow icon Board of Directors

4.3 For organisations that have a unitary board structure, state the number of members of the highest governance body that are independent and / or non-executive members

Annual Report 2010

arrow icon Corporate Governance

Annual Report 2010

arrow icon Board of Directors

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body

Annual Report 2010

arrow icon Corporate Governance, Relations with Shareholders

arrow icon Our Stakeholders

arrow icon Governance – Business Integrity and Ethics

4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organisation’s performance (including social and environmental performance)

Annual Report 2010

arrow icon Remuneration Report

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided

Annual Report 2010

arrow icon Other Statutory Information, Directors‘ Conflicts of Interests

4.7 Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organisation’s strategy on economic, environmental, and social topics

Annual Report 2010

arrow icon Corporate Governance, Directors and the Board

Annual Report 2010

arrow icon Nomination Committee Report

4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation

arrow icon Company Website – Sustainability 2017

arrow icon Company Website – Our Approach

arrow icon Our Progress

4.9 Procedures of the highest governance body for overseeing the organisation’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles

arrow icon Governance

arrow icon Managing Sustainability

Annual Report 2010

arrow icon Corporate Governance

arrow icon Company Website – Sustainability Governance

4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance

Annual Report 2010

arrow icon Corporate Governance

Annual Report 2010

arrow icon Corporate Governance, Directors and the Board

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organisation

arrow icon Company Website – Sustainability Governance

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organisation subscribes or endorses

arrow icon Governance – Business Integrity and Ethics

arrow icon Our Stakeholders

4.13 Memberships in associations

arrow icon Our Stakeholders

arrow icon Regulatory Matters

Annual Report 2010

arrow icon Sustainability, Social – Stakeholder Engagement

4.14 List of stakeholder groups engaged by the organisation

arrow icon Our Stakeholders

arrow icon Community Investment

Annual Report 2010

arrow icon Sustainability, Social – Stakeholder Engagement, Community Investment

4.15 Basis for identification and selection of stakeholders with whom to engage arrow icon Our Stakeholders
4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group arrow icon Our Stakeholders
4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organisation has responded to those key topics and concerns, including through its reporting

arrow icon Our Stakeholders

arrow icon Case Study – Getting our Reporting Right

arrow icon Case Study – JMNY Leading the Way – Responsible Supplier Policy

 

5. Management Approach and Performance Indicators (core indicators shown in bold)

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ECONOMIC

Management Approach

Financial viability is a key element of sustainability. Continued growth in profit is an important aspiration of our Sustainability 2017 Vision and we have set a target to more than double our underlying earnings per share by 2017.

The two major thrusts of our vision are about being more efficient with the resources we use and designing new products that help our customers to be more sustainable. Using fewer resources as a business will save us money, it will enable us to maintain or improve our margins and allow us to invest more in R&D and infrastructure. Designing innovative new products for our customers will allow us to maintain or strengthen our competitive position in the markets we serve today and benefit from the growth opportunities in emerging markets within the sustainability sector.

Sound, prudent financial management and consideration and management of risks to the business means that we can ensure a sustainable business delivering benefits to all stakeholders – shareholders, customers, local communities, society, humanity and the planet.

Also see Financial section of this report.

Indicator Requirement / Disclosure Location / Section
EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments

Annual Report 2010

arrow icon Financial Highlights – 2010

Annual Report 2010

arrow icon Group Performance Review

Annual Report 2010

arrow icon Financial Review

Annual Report 2010

arrow icon Note 11, Earnings per ordinary share

Annual Report 2010

arrow icon Note 12, Employee and key management personnel costs 

Annual Report 2010

arrow icon Note 13, Share-based payments

Annual Report 2010

arrow icon Other Statutory Information, Charitable Donations

Annual Report 2010

arrow icon Other Statutory Information, Political Donations and Expenditure

arrow icon Financial

arrow icon Financial: Our Performance

EC2 Financial implications and other risks and opportunities for the organisation’s activities due to climate change

arrow icon Material Issues

Annual Report 2010

arrow icon Operations Review – Precious Metal Products Division

Annual Report 2010

arrow icon Research & Development

arrow icon Financial

arrow icon Feature: Carbon Strategy

EC3 Coverage of the organisation’s defined benefit plan obligations

Annual Report 2010

arrow icon Note 14, Post-employment benefits

Annual Report 2010

arrow icon Sustainability, Social – Employee Relations and Communication

EC4 Significant financial assistance received from government arrow icon Financial
EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in kind, or pro bono engagement arrow icon Community Investment

ENVIRONMENTAL

Management Approach

Environmental responsibility is a key element in making Johnson Matthey a more sustainable business. We have an impact on the environment in many ways – through the resources we use, the way we operate our processes and the action of our products and services on enhancing the environment for others.

We take raw materials and apply our knowledge and expertise to turn them into more valuable products. The costs of these raw materials are likely to increase in future as they are depleted or become harder to access. By increasing the efficiency with which we use these valuable resources, we will generate cost savings for our business today and help to conserve resources for the future.

The recycling and reuse of key resources (e.g. precious metals) are a fundamental element of what we do. We shall continue to draw on our expertise in this area to benefit the resource efficiency of our own operations and provide enhanced solutions and services for our customers.

Environmental targets are a key part of our Sustainability 2017 Vision. The group aims to become carbon neutral, achieve zero waste to landfill and to halve the key resources per unit output consumed by 2017. In order to meet these aspirations, long term environmental improvement plans and performance indicators have been established.

Due consideration is given to the environmental impact of our business in all aspects of our operations. Through management systems and policies, we ensure, as far as is possible, compliance (as a minimum) with relevant regulation and legislation in order to protect the environment. We have set a target to have all of our major manufacturing sites ISO 14001 registered and certified in 2010.

Also see Environment section of this report.

Indicator  Requirement / Disclosure Location / Section
EN3 Direct energy consumption by primary energy source arrow icon Environment: Our Performance
EN4 Indirect energy consumption by primary source arrow icon Environment: Our Performance
EN8 Total water withdrawal by source arrow icon Environment: Our Performance
EN16 Total direct and indirect greenhouse gas emissions by weight arrow icon Environment: Our Performance
EN17 Other relevant indirect greenhouse gas emissions by weight arrow icon Environment: Our Performance
EN20 NOx, SOx and other significant air emissions by type and weight arrow icon Environment: Our Performance
EN21 Total water discharge by quality and destination arrow icon Environment: Our Performance
EN22 Total weight of waste by type and disposal method arrow icon Environment: Our Performance
EN23 Total number and volume of significant spills arrow icon Environment: Our Performance
EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally arrow icon Environment: Our Performance
EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations arrow icon Environment: Our Performance

LABOUR PRACTICES AND DECENT WORK

Management Approach

Johnson Matthey’s employees are respected as the company’s most valuable resource and play a vital role in building a sustainable business. We are committed to recruiting high calibre employees and providing them with the information, training and working environment they need to perform to the highest standards. All employees are encouraged to develop to their maximum potential, supported by human resources policies and practices that are strategically linked to the needs of our business and our customers.

Health and safety is a key element of our sustainability strategy. We are committed to providing our employees with a safe working environment and supporting and enhancing their health and wellbeing. For us, any accident is unacceptable and our target is zero accidents. We are also working to reduce annual incidence of occupational illness cases by at least 30% by 2013/14.

Also see Johnson Matthey’s Business Integrity and Ethics Policy, the Governance, Social: Our Performance, Health: Our Performance and Safety: Our Performance sections of this report.

Indicator  Requirement / Disclosure Location / Section
LA1 Total workforce by employment type, employment contract and region

Partial Disclosure
arrow icon Social: Our Performance

LA2 Total number and rate of employee turnover by age group, gender and region

Partial Disclosure
arrow icon Social: Our Performance (Employee Turnover)

Partial Disclosure
arrow icon Social: Our Performance (Diversity)

LA4 Percentage of employees covered by collective bargaining agreements arrow icon Social: Our Performance
LA7 Rates of injury, occupational diseases, lost days, and absenteeism and number of work related fatalities by region

arrow icon Health: Our Performance

arrow icon Safety: Our Performance

arrow icon Performance Summary – Health and Safety

arrow icon Social: Our Performance

arrow icon Performance Summary – Social

LA10 Average hours of training per year per employee by employee category

Partial Disclosure
arrow icon Social: Our Performance

HUMAN RIGHTS

Management Approach

The company strives to maintain the highest standards of ethical conduct and corporate responsibility worldwide through the application of the principles within its Business Integrity and Ethics Policy. These issues are further safeguarded through corporate governance processes and monitoring by the board and its committees. All employees have a duty to follow the principles set out in the Business Integrity and Ethics Policy. It is integrated into the Group Control Manual and is available to staff at all sites.

Also see Governance section of this report and the Sustainability Governance section of the company’s website.

Indicator Requirement / Disclosure Location / Section
HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening

arrow icon Governance – Business Integrity and Ethics

Annual Report 2010

arrow icon Sustainability, Governance – Policies and Management Systems, Business Integrity and Ethics

arrow icon Company Website – Sustainability Governance

HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained

Partial Disclosure

Annual Report 2010

arrow icon Sustainability, Governance – Policies and Management Systems, Business Integrity and Ethics

Partial Disclosure
arrow icon Governance – Business Integrity and Ethics

HR6 Operations identified as having significant risk for incidents of child labour and measures taken to contribute to the elimination of child labour

Partial Disclosure

Annual Report 2010

arrow icon Sustainability, Governance – Policies and Management Systems, Business Integrity and Ethics

Partial Disclosure
arrow icon Governance – Business Integrity and Ethics

Partial Disclosure
arrow icon Company Website – Sustainability Governance

HR7 Operations identified as having significant risk for incidents of forced or compulsory labour and measures to contribute to the elimination of forced or compulsory labour

Partial Disclosure

Annual Report 2010

arrow icon Sustainability, Governance – Policies and Management Systems, Business Integrity and Ethics

Partial Disclosure
arrow icon Governance – Business Integrity and Ethics

Partial Disclosure
arrow icon Company Website – Sustainability Governance

SOCIETY

Management Approach

We have a strong tradition in Johnson Matthey for good community relations – building and maintaining these are an integral part of making ours a more sustainable business. We have an important contribution to make to the economic development of our local communities, not only as an employer but also through collaboration and investment, both financial and in kind.

The company strives to maintain the highest standards of ethical conduct and corporate responsibility worldwide through the application of the principles within its Business Integrity and Ethics Policy. Johnson Matthey’s ethical policy is integrated into the Group Control Manual and is available to employees at all sites. Measures are in place to identify and prevent fraud or money laundering through activities undertaken by Johnson Matthey or on behalf of customers.

Many of Johnson Matthey’s products have a material impact on various areas of government policy. Examples include pollution control from transportation and industrial sources, the use of catalysts in resource efficient processes and the shift to zero emission fuel cell technologies. We are proactive in engaging in public policy debate where we have the skills, experience and resources to make a material contribution.

Also see Our Stakeholders, Governance and Social sections of this report and the Sustainability Governance section of the company’s website.

Indicator Requirement / Disclosure Location / Section
SO1 Nature, scope, and effectiveness of any programmes and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting

arrow icon Community Investment

arrow icon Our Stakeholders 

Annual Report 2010

arrow icon Sustainability, Social – Community Investment

arrow icon Company Website – Community and Charity

SO2 Percentage and total number of business units analysed for risks related to corruption

Partial Disclosure

Annual Report 2010

arrow icon Corporate Governance – Accountability, Audit and Control

SO5 Public policy positions and participation in public policy development and lobbying arrow icon Our Stakeholders
SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country

Annual Report 2010

arrow icon Other Statutory Information, Political Donations and Expenditure

PRODUCT RESPONSIBILITY

Management Approach

Product stewardship involves an integrated approach to products, materials and services management designed to objectively assess and then minimise or eliminate the environmental and health related impacts of products. As part of our commitment to sustainability, we appreciate that all the chemicals we use must be managed responsibly. Our product stewardship systems are aligned to a key goal in the 2002 Johannesburg World Summit on Sustainable Development to ‘use and produce chemicals in ways which will lead to the minimisation of significant adverse effects on human health and the environment’.

A systematic product responsibility reporting scheme conforming to the Global Reporting Initiative Sustainability Reporting Guidelines is used to monitor the performance of Johnson Matthey’s operations and maintain surveillance of the company’s products.

Significant attention is given to the impact of our business throughout the supply chain and in particular in those aspects where we are providing products to our customers. Life cycle assessment methods are used in different parts of the business to assess the environmental and social impacts and benefits of our operations and products. Compliance with relevant international laws and standards and the provision of accurate information (e.g. relating to environmental, health and safety matters or product specifications and performance) to accompany our products is critical to ensure that they are provided fit for purpose.

Also see Product Stewardship section of this report.

Indicator Requirement / Disclosure Location / Section
PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures arrow icon Product Stewardship
PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes arrow icon Product Stewardship
PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labelling, by type of outcomes arrow icon Product Stewardship
PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services arrow icon Product Stewardship

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