Report of the Directors
Business Review

Community Investment

Johnson Matthey has a strong tradition of good community relations and the company and its employees are actively involved in programmes worldwide. We believe that investing in our communities is an integral part of our social commitment to ensure the ongoing sustainable success of the company.

Although Johnson Matthey is a global company, we believe community investment is about making a real difference locally and making a positive impact in the communities where we have operations. 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, for example by volunteering and donating resources and expertise.

As we are global, the communities we operate in face a wide range of priorities, issues and challenges. As a result we aim to ensure that our sites have the resources and support to identify those projects, initiatives and partnerships that can make a real difference in their communities and that mean something to employees and their families. We also aim to support the future growth of our business through the promotion of science education among young people.

We have four key objectives for our community investment programmes:

Guidance on site requirements for community relations is detailed in the group environment, health and safety management system and a review of community investment activities across the group is carried out each year. In 2011/12, the review indicates that 85% of Johnson Matthey’s operations participated in activities within their local communities. These activities are wide ranging and include charitable giving, support for educational projects, the advancement of science and economic regeneration projects. The review also indicates that 95% of sites have a nominated person responsible for this area. Looking ahead to 2012/13, the review shows that 78% of operations have set objectives for their community investment activities with 65% having planned activities for the year.

The review also indicates that 68% of sites have specific budgets allocated to community investment activities for the 2012/13 financial year.

Employees also participate in activities or hold community related roles outside the work environment. The company is supportive of this broader community engagement, allowing employees time off during working hours as appropriate.

In efforts to further encourage volunteering among employees and to more broadly support our sites around the world in their community programmes, the group has developed a community investment strategy and policy this year. In developing the policy, Johnson Matthey sought input from a number of its employees, charity partners, shareholders and other experts to ensure the policy and strategy are relevant and deliver value for all stakeholders.

The policy requires all sites to undertake a community investment programme, measure its impact and allocate a budget for activities in the year. It also provides additional guidance to assist sites in developing their programmes. The policy also sets out the group’s commitment to encouraging its employees and sites to support their local communities and charities. From the start of the 2012/13 financial year, every employee will be allowed up to two days paid leave a year to undertake voluntary work in the local community or with a charitable organisation (subject to business needs and the approval of their manager). Furthermore, the company will match employees’ fundraising in aid of a registered charity up to the value of £1,000 per employee per year, with a cap of £50,000 per annum for the group as a whole.

Charitable Donations

Johnson Matthey’s long history of support for charitable causes continues today through group and business programmes. The causes we support reflect the areas in which the group’s technologies have a benefit and the issues which strike a chord with our employees. In the financial year to 31st March 2012 Johnson Matthey donated £645,000 to charitable organisations, up 25% on the prior year. This figure only includes donations made by Johnson Matthey and does not include payroll giving, donations made by staff or employee time. The company made no political donations in the year.

Across the globe, Johnson Matthey’s sites lend support to many charities locally and nationally through donations, employee time or loans of company facilities. Examples of these initiatives are summarised in the case study examples in this report with full details and further examples available on our website.

Read more in our online Case Studies.

At a group level, Johnson Matthey operates a charitable donations programme which represented 47% (£305,000) of total company donations in 2011/12. This programme supports organisations working in the areas of environment and sustainability, medical and health, science and education, social welfare and international development.

The charitable donations programme includes an annual donations scheme where a number of charities are selected triennially and receive a donation from the company each year for a three year period. In 2011/12, 33 charitable causes received an annual donation through this scheme. The group’s programme also considers individual requests for support throughout the year and a further 67 charitable organisations received donations on this basis in 2011/12. The group also has a specific programme of support focused on promoting the understanding and awareness of science among children and young people and has identified several new programmes which it will support in 2012/13.

The Johnson Matthey Educational Trust was set up in 1967 to commemorate the 150th anniversary of the founding of the company. It awards scholarships to support the university education of the offspring of Johnson Matthey’s current and retired employees. During the year the Trust approved grants totalling £82,500.

The company continues to select a charity partner to focus support on one particular cause and employee views are considered when identifying the charity. The group is supporting CLIC Sargent, the UK’s leading cancer charity for children and young people and their families, and other national childhood cancer charities around the world in a two year partnership that will run to the end of 2013/14.

Johnson Matthey is a member of the London Benchmarking Group (LBG), a global network of companies that share and drive best practice in corporate community investment.

Employees and their families at our Nilai operations in Malaysia enjoy an ‘environment, health and safety’ treasure hunt organised by the site.

Volunteers from Johnson Matthey’s Emission Control Technologies business in Royston, UK helped out at the local train station to create floral displays for the town’s ‘Royston in Bloom’ event.

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