Other Information

Basis of Reporting – Non-Financial Data

Johnson Matthey has adopted a framework based upon the GRI G3.1 sustainability reporting guidelines and applied them in an appropriate context to the group by examination of the definition, explanation notes and self diagnosis tests to ensure a comprehensive, accurate and complete account when assessed against the reporting criteria. In addition, feedback received on the 2012 Annual Report and Accounts, recommendations on that report arising from the assurance process and a well structured management approach early in 2013 have shaped the reporting of non-financial content and context. Due consideration has been given to relevant international standards such as the International Organization for Standardization’s voluntary standard on ‘social responsibility’, ISO 26000, the progress of the International Integrated Reporting Framework and other emerging regulations and standards for non-financial reporting.

This report has been developed to incorporate the group’s significant economic, environmental and social impacts and is set within the context of the United Nations Brundtland definition of sustainability (1987) and our own Sustainability 2017 goals. Understanding the relevance of local, national, regional and global issues, regulation and legislation is taken into account when considering reporting. The AA1000AS assurance standard principles of inclusivity, materiality and responsiveness are central to the structure of the report and in setting priorities for reporting.

There are no limitations on the scope or boundary of the non-financial data in this report. The non-financial information presented covers the sustainability activities and performance of Johnson Matthey’s global operations and includes the parent company and its subsidiaries (as listed in note 41). Environmental performance data covers manufacturing, research and warehousing operations of the parent company and its subsidiaries. Environmental performance data from acquired facilities is only included after the first full year of Johnson Matthey ownership (and so in 2012/13 data from Colour Technologies’ facility in China, which was acquired in August 2012, Axeon’s facilities in Scotland and Poland, which were acquired in October 2012, and Formox’s facility in Sweden, which was acquired in March 2013, are not included). Environmental performance data from new facilities is included from the point at which the facility is fully operational. The report also explains how we are continuing to build sustainability into our business planning and decision making processes and how, through our governance processes, we manage social, environmental and ethical matters across the group.

Data measurement techniques, including calculations for social, environmental and health and safety performance, have used internationally recognised protocols such as the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (Revised Edition) and the GRI indicator protocols as appropriate. Any exceptions are noted.

All non-financial performance data is reported on a financial year basis unless otherwise stated. Where necessary data has been restated, for example to reflect changes in the business (e.g. divestments and site closures), to take account of changes in best practice methodologies for reporting and changes in calculating emissions. Certain safety data has been restated as a result of reclassification in 2012/13 of accidents that were reported in 2011/12. For employee data, percentage calculations are made in relation to the number of permanent employees in the group (unless otherwise stated).

Global warming potential (GWP) in tonnes of carbon dioxide (CO2) equivalent includes Scope 1 and Scope 2 emissions. We report greenhouse gas emissions from process and energy use and convert the total group energy use to tonnes CO2 equivalent using national and regional conversion factors for each emissions source as appropriate.

Certain employee data is included in the accounts which is subject to external audit. The group’s other social, health and safety and environmental data is collected annually at a group level. The data is collated through five questionnaires based on the requirements of the Global Reporting Initiative third generation (GRI G3.1) guidelines. It is completed by businesses and signed off by the general manager for each global operation. The reported site level data is a combination of actual measurement and estimates. The processes in place to internally verify the reported data are described in the Verification section.

Accident Calculation Definitions

Johnson Matthey’s definition of an accident for the purposes of this report is any acute unplanned event that causes harm to individuals, making them unable to attend work on days after the date of the event. Accidents are further subdivided into accidents that result in more than three days’ work lost and those that cause three or less days to be lost. Accident incidence rates are calculated based on the rate of these accidents per 1,000 employees.

The following metrics are used in this report:

Incidence rate for all lost time accidents in the year = (number of greater than three day accidents in the year + number of three day or less accidents in the year) x 1,000 ÷ (average number of employees in the year).

Incidence rate for greater than three day accidents in the year = (number of greater than three day accidents in the year) x 1,000 ÷ (average number of employees in the year).

Lost work days per 1,000 employees per year = (total lost work days in year) x 1,000 ÷ (average number of employees in the year).

Frequency rate for all lost time accidents in the year = (number of greater than three day accidents in the year + number of three day or less accidents in the year) x 100,000 ÷ (number of hours worked in the year).

Calculation of the Value of Employee Time

In determining the in kind value of employees’ volunteering we take the number of volunteering days reported in the year and multiply it by the cost of one day of employee time.

Cost of one day of employee’s time = (total employee benefits expense ÷ average number of employees in the year) ÷ (number of working days in the year).

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