http://www.resource-solutions.org/index.htm

http://www.us-cap.org/

http://www.us-cap.org/

http://www.climatesaverscomputing.org/

http://www.theclimategroup.org/

http://www.thegreenpowergroup.org/

http://www.thegreenpowergroup.org/

Johnson & Johnson - Index

Johnson & Johnson - report - Index

installed on-site systems that make use of solar, geothermal,
biomass, landfill gas, and other forms of renewable energy.
Another way we achieve our goal is by purchasing electricity
generated from renewable energy and by purchasing
Renewable Energy Certificates (RECs) and carbon offsets.
Q:
What’s the biggest challenge your operating
companies have?
CANAVAN: Without question, it’s attaining an absolute reduction
of CO 2 while our business continues to grow. This is the
same challenge facing all companies and countries. To avoid
the most damaging effects of climate change, experts believe
that global GHG emissions must be reduced by 60-90 percent
by 2050. So, as our sales increase, our GHG emissions must
be moving in the other direction — and eventually, without
help from purchased RECs and offsets.
Another challenge we face is to account for the GHG
emissions from our entire supply chain, as well as from the
use and disposal of our products. In the future, we would
like to influence our business partners (suppliers, contract
manufacturers and carriers) to measure, report and reduce
their GHG emissions.
Q:
RECs and offsets have been a bit controversial.
Why use them?
CANAVAN: We have completed many cost-effective projects
to improve our efficiency and make use of renewable energy.
But we have not been able to do this at the pace and scale
needed to meet our absolute GHG reduction goal. RECs
and carbon offsets provide a mechanism for us to support
renewable energy projects on a scale that is not practical on
our sites, such as large wind farms and biomass projects. This
strategy is consistent with a market-based, cap-and-trade
system that is a fundamental part of most of the regional and
international agreements in place to address climate change.
In 2007, our operating companies spent about $1.5 million
on RECs, offsets and green power premiums. All are verified
by a third party as being traceable to credible projects.
For instance, all RECs purchased in the U.S. are “green-E
certified” by the Center for Resource Solutions.
For the moment, absent universal comprehensive legislation,
this voluntary system of offsets offers a reasonable short-term
PROFILES IN COMMITMENT
Dennis Canavan
Senior Director
Global Energy
Johnson & Johnson
solution. Longer-term, we support a mandatory cap-andtrade
system that would require everyone to reduce GHG
emissions and in which offsets would be regulated.
In May 2007, Johnson & Johnson became a
Q: partner in USCAP — the United States Climate
Action Partnership. What is the significance of this?
CANAVAN: USCAP is a unique coalition of U.S.-based
corporations and environmental non-profit organizations
that speak with one voice for good federal policy on climate
change. Together, we are asking government policymakers
in the U.S. to create a mandatory, market-driven approach
to climate protection. Through USCAP, we are advocating
for the enaction of climate legislation that is environmentally
effective, economically sustainable, fair to all economic
sectors, geographic regions and stakeholders, and that creates
incentives for technology innovation. Our recommendations
include a national cap-and-trade system that is linked to
an international carbon offset market.
Our membership in USCAP was a natural fit considering
our history of advocacy regarding climate change.
Johnson & Johnson was a charter member of Climate Savers
(World Wildlife Fund), The Climate Group (based in the
United Kingdom) and the Green Power Market Development
Group (World Resources Institute). We have publicly called
for the establishment of a long-term production tax credit
for renewable energy projects in the U.S. and we have supported
climate change legislation in California and New Jersey.
In 2007, at the international level, Johnson & Johnson
Vice Chairman Christine Poon signed a petition (The Bali
Communique) on the Company’s behalf urging world
leaders to expedite an international agreement on capping
GHG emissions. This Communique was presented at the
United Nations meeting on climate change in Bali.
Q:
Can you tell us about your progress? What
were some of Johnson & Johnson’s notable
2007 accomplishments?
CANAVAN: From 1990 to 2007, while our worldwide sales
increased by over 400 percent, Johnson & Johnson companies
cut CO 2 emissions by 12.7 percent on an absolute basis.
This includes the impact of RECs and carbon offsets.
Contributing to this success, we opened two more solar
power installations in 2007. ALZA Corporation in Vacaville,
CA opened a 1.1-megawatt solar power system that covers
6.5 acres and will offset 17,000 tons of carbon emissions
during its 25-year life. ALZA develops and manufactures
drug delivery systems, and has a heavy, around-the-clock
demand for power. When the sun is shining, the solar energy
system produces about one-third of the needed power.
We also opened a 0.5-megawatt solar energy system on the
roof of Johnson & Johnson Pharmaceutical Research and
Development, LLC in Raritan, New Jersey. This was our tenth
solar installation in the U.S.
Other renewable energy projects are being implemented
around the world. Our second geothermal system is under
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