Johnson Matthey’s Sustainability Report 2009/10 reviews the company’s progress and performance during the year.
Johnson Matthey is an international speciality chemicals company and a world leader in environmental technologies. Many of our products have a beneficial impact on society, improving the quality of life for millions of people around the world.
Sustainability is a key element of our strategy for growth. In December 2007 Johnson Matthey launched Sustainability 2017, a long term vision for the whole group which sets out the group’s aspirations and targets in this area.
Sustainability 2017 was defined following an assessment of the risks, major impacts and future commercial opportunities open to the business. These issues, together with the group’s high level long term targets to address them and the key performance indicators used to manage performance, are described in the report.
In 2009/10 performance against all of our Sustainability 2017 targets has improved relative to the baseline year. Year on year progress (2009/10 versus 2008/09) has also been steady with improvement against all targets except underlying earnings per share (EPS), which has been held back by the impact of the global economic downturn on our business, and electricity consumption, which increased due to the inclusion of data from three major new manufacturing sites this year.
The report describes how Johnson Matthey has continued to focus on the two key drivers of the Sustainability 2017 Vision:
- To be more efficient with the resources we use as a business; and
- To design new products and services which help our customers to be more sustainable and competitive.
Much of the progress to date has been achieved by incremental improvements in operational and process efficiencies – those relating to driver (i). For example, as we strive to achieve carbon neutrality, the group’s total global warming potential is down just 6% at 371,414 tonnes CO2 equivalent which is still some way from net zero carbon. We have recognised the need to focus further on the step change opportunities that will drive accelerated progress towards our 2017 targets. As part of this we have begun to develop a carbon neutrality strategy and our approach and thinking on this are presented as a special feature in this report. We also describe initiatives that are underway to drive performance against our other targets.
In relation to driver (ii), we continue to develop and bring products and technologies to the marketplace which aim to deliver significant environmental, social and health benefits for our customers. Examples are presented as case studies accompanying this report, and our strategies to support the introduction of further new sustainable products and technologies are outlined.
The report provides detailed discussion of the group’s financial, governance, social, health and safety and environment performance during the year and our future aims and targets. Work has continued to more effectively quantify the financial benefits of our sustainability initiatives as an important marker of progress. In 2009/10 we estimate that savings of up to £12 million have been realised as a result of our initiatives.
Johnson Matthey has well established policies and management systems to support good governance and the process of embedding sustainability into our management systems has continued this year. All our businesses are required to include sustainability in their annual budget setting process and we have recently introduced a system of site / functional reviews to encourage the alignment of local targets with our Sustainabilty 2017 goals. We have also published an Ethical and Sustainable Procurement Policy to support our aim of ensuring that our own high standards are applied throughout the whole of our supply chain.