Sustainability 2017 was defined following an assessment of the risks, major impacts and future commercial opportunities open to the business. The high level long term targets encompassed within it, together with the group’s other related targets, address the issues which could potentially have a material effect on the group’s future performance.
Monitoring progress against the group’s targets is used as a means of managing these material issues. Material issues are continually assessed as part of our risk management and business planning processes and the group has started to integrate horizon scanning into these processes to seek new market opportunities and identify emerging issues that may have an impact on our business over the longer term.
The group’s key material issues are:
Deliver Shareholder Value
Profitability and sustainability are inextricably linked and our business will only survive if it can continue to deliver superior value to its shareholders. All other material issues identified by the group and its performance against the related targets can all have an impact on profitability. Underlying earnings per share is the principal measure used by the board to assess the overall profitability of the group.
Climate change presents many opportunities for Johnson Matthey. Our products and technologies have a role to play in mitigating its effects and we must ensure we are well positioned to maximise our benefit. The group must also manage the potential negative impacts arising from an increasingly carbon constrained world.
Availability of Resources
Continued economic development will place an ever increasing strain on the world’s resources. Over time, the raw materials we use today may become less available and more costly. Our challenges are to carefully select those with the lowest sustainability footprint, use them as efficiently as possible and maximise the amounts we recycle.
As populations and industry continue to grow, so will the amount of waste we collectively generate. It places a burden on the planet, can have a negative impact on habitats and potentially spoil areas of natural beauty that we currently enjoy. It is in our interest to manage the waste we generate as a business. Addressing this issue delivers financial savings, more efficient processes and a better environment for us all.