Johnson Matthey Sustainability Report 2009/10

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Key Performance Indicators

Johnson Matthey uses a range of key performance indicators (KPIs) to monitor the group’s sustainability performance over time, including progress towards the Sustainability 2017 aspirations. These KPIs address the material issues that are key to Johnson Matthey and ultimately provide a measure over time of the group’s contribution to society. These sustainability KPIs are described below.

KPI – Underlying earnings per share
Target – At least double underlying earnings per share

Underlying earnings per share (EPS) is the principal measure used by the board to assess the overall profitability of the group. Profitability and sustainability are inextricably linked and our business will only survive if it can continue to deliver superior value to its shareholders. Performance against all of the group’s other sustainability indicators can have an impact on its profitability. Further definition on how we measure EPS is given in the Annual Report.

KPI – Global warming potential
Target – Achieve carbon neutrality

We measure our progress towards achieving carbon neutrality by looking at the group’s total global warming potential (GWP). 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. We are working to broaden the scope of our GWP measurement to include all aspects of our business and to consider the beneficial impacts of our products and services. Further information on the group’s GWP is given in the environmental performance section.

KPI – Amount of waste to landfill
Target – Achieve zero waste to landfill

Working to reduce the amount of waste we send to landfill delivers financial savings, improves the efficiency of our manufacturing processes and reduces our burden on the environment. The group measures the amount of waste sent to landfill as its key indicator of performance. Further information on the group’s waste to landfill and its additional measures for the waste it generates are given in the environmental performance section.

KPI – Electricity consumption, natural gas consumption, water use
Target – Halve key resources consumed per unit of output

If we are to make Johnson Matthey more sustainable, it is imperative that we use resources in the most efficient way. Our goal is to cut consumption of key resources by 50% by 2017. The KPIs for monitoring progress towards this target to halve 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.

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Carl Wasylyszyn

Q&A

What does sustainability mean to you?

Sustainability is looking backwards and forwards to make careful decisions …

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