Johnson & Johnson partnered with Walmart along with the CEOs from Campbell Soup Co.; Cargill, Inc.; Dairy Farmers of America; General Mills Inc.; Monsanto Co.; Kellogg Co.; PepsiCo; Goldman Sachs, Keurig, Green Mountain, Inc.; Procter & Gamble; S. C. Johnson & Son, Inc.; and Unilever to launch a recycling initiative called the Closed Loop Fund. The Fund’s goal is to make recycling available to all Americans, and aims to invest $100 million in recycling infrastructure projects and spur private and public funding to transform the U.S. recycling system.
In an effort to conserve the rainforest, Johnson & Johnson decided to stop purchasing palm oil and unveiled a comprehensive sourcing policy to eliminate deforestation and social conflict from its global palm oil supply chain. The company was using 75,000 tons of palm oil per year (0.2% of global palm oil production). J&J will work with The Forest Trust (TFT), an NGO that helps companies implement zero deforestation and zero conflict commitments for various commodities.
J&J also works with UNICEF’s Project Mwana, a mobile service that delivers HIV lab results in real time to rural clinics, and UNICEF’s Home-Based Newborn Care initiative, which trains community midwives in underserved areas to provide maternal and newborn care. Johnson & Johnson (Philippines) Inc. has partnered with the public sector and gained support from the United Nations Children’s Fund to combat the extremely high percentage of maternal mortality in the region via the Brighter Future campaign.
The Green Advantage
Johnson & Johnson is a good example of how a company’s commitment to green initiatives and CSR can buoy brand perception, increase brand value, and impact the bottom line. Though perception is trending downward owing to product challenges, medication recalls, and legal settlements, consumers still associate the J&J corporate brand with babies, mothers, and healing. The comforting connotations can be attributed to J&J’s commitment to environmentally conscientious initiatives like its recycling partnership with Walmart, the Care To Recycle Tumblr page, and even the decision to source palm oil for its products without deforestation impact. Overall, the company is reaping the financial benefits of being eco-friendly. In 2013 alone, J&J’s Earthwards portfolio of products generated more than $8 billion in sales. Impressive progress to be sure, but water intensity, lack of transparency around issues such as hazardous content, and quality and service issues, particularly in China, will have to be addressed if J&J wants to surpass brands that are comparatively greener.
J&J is 5th in percentage of facilitates run by solar power (21%)
How the Earthwards program helps J&J design greener products
More on the Closed Loop Fund
Johnson & Johnson cleans up its palm oil
J&J helps save mothers' lives
Johnson & Johnson ranked 4th on the Reputation Institute’s 2014 Most Reputable American Companies list.