Report of the Directors
Business Review

Performance Summary

    2013 2012 % change
Energy consumption thousands GJ 4,648 4,726 -2
Total global warming potential thousand tonnes CO2 equivalent 413 417 -1
Total acid gas emissions tonnes SO2 equivalent 334 444 -25
Total VOC emissions tonnes 185.6 189.8 -2
Total waste tonnes 110,448 120,363 -8
Total waste to landfill tonnes 3,218 10,708 -70
Water consumption thousands m3 2,444 2,201 +11

Johnson Matthey has 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.

A major part of our business involves applying our scientific knowledge and expertise to turn natural resources into more valuable products for our customers. Natural resource costs are likely to increase in future as they are depleted or become harder to access. Our Sustainability 2017 and Manufacturing Excellence programmes both focus on increasing the efficiency with which we use these valuable resources and will generate cost savings for our business today and help to conserve resources for the future.

In addition, as a leading recycler and refiner of precious metals, we draw on our expertise in this area to enhance the resource efficiency of our own operations and provide improved solutions and services for our customers.

Many of the group’s products have a positive impact on the environment including emission control catalysts for vehicles, process catalysts that improve resource efficiency and abatement systems which mitigate the production of greenhouse gases. A significant proportion of our R&D efforts are directed towards developing the next generation of environmentally beneficial products.

Targets to improve environmental performance are a key part of our Sustainability 2017 Vision. The group aims to cut its carbon intensity by half, achieve zero waste to landfill and halve the key resources per unit of output consumed (compared with baseline data from 2007) by 2017. In order to meet these aspirations, long term environmental improvement plans and performance indicators have been established.

Conserving Natural Resources and Improving Our Processes and Products

As part of our Sustainability 2017 aspirations to reduce environmental impact whilst sustaining growth, Johnson Matthey has set targets to halve the key resources it uses per unit of output. We have identified natural gas, electricity and water as our most significant resources in the current and future context of availability (including accessibility, geopolitical factors and infrastructure), cost and quantities used.

Each of our businesses set internal reduction targets which are formally reviewed as part of the annual budget planning process to ensure alignment of their Sustainability 2017 and Manufacturing Excellence programme efforts and their contribution towards the group’s goals. There are a wide range of operational initiatives underway to optimise resource use and improve processes across the group. In addition to process improvement efforts, efficiency and longevity of equipment are considered in purchasing decisions and for large capital expenditure projects.

Given that we operate in a world where increased demand for key resources and critical raw materials can expose the group to the risk of price volatility or resource availability, we also seek to apply our technical expertise and know how to develop more sustainable products. Our efforts are threefold: we develop products which deliver the same performance but with less critical raw material content (for example, our work to thrift rare earth materials from our emission control catalysts and refinery additives); products that can be manufactured via a less resource intense route (for example, our compact catalysed soot filter product for diesel cars); or products that enable our customers to lower their environmental footprint (for example, our process catalysts).

Managing Performance and Driving Continuous Improvement

The group has well established policies, systems and processes in place to manage its environmental performance and to drive continuous improvement. All our major manufacturing sites are required to maintain certification to the ISO 14001 environmental management system as a means of setting, maintaining and improving standards. The group also requires new or acquired sites to achieve ISO 14001 certification within two years of beneficial operation or acquisition. During the year, Johnson Matthey made two acquisitions, Axeon and Formox, and plans are being developed to support their major manufacturing sites in implementing the standard.

Lean manufacturing initiatives at Johnson Matthey’s emission control catalyst manufacturing operations in Royston, UK.

Fuel cell research and development at Johnson Matthey’s Technology Centre in Sonning Common, UK.

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