Governance

Good governance is a cornerstone of sustainability and the group has well established policies and management systems to support this which apply to all operations worldwide. Legal requirements are a minimum standard and in many cases our policies and systems are in advance of these. Johnson Matthey has policies in the areas of Environment, Health and Safety (EHS); Employment; and Business Integrity and Ethics which provide the framework for managing environmental, social and governance matters.

As Johnson Matthey Plc is a UK listed company, we are required, at the very least, to meet the standards of the Combined Code on Corporate Governance (the Code) and further details on this and the board’s statement on corporate governance matters are presented in the Annual Report.

Johnson Matthey has adopted the principles of corporate social responsibility and embedded them into its risk management processes. Performance management systems and corporate policies and a commitment to continuous improvement underpin our sustainability goals and through the launch of Sustainability 2017 we have defined our own vision and direction to manage our impacts and opportunities with increasing efficiency.

We aim to be clear about what we do, communicate effectively, report our progress transparently and demonstrate leadership and best practice in every aspect of sustainability. Since 2003 we have reported annually on our social, environmental and ethical performance in a separate CSR or sustainability report.

Business Integrity and Ethics

Johnson Matthey strives to maintain the highest standards of ethical conduct and corporate responsibility worldwide to ensure we act with integrity, transparency and care for the rights of the individual. The group’s principles are set out in the Business Integrity and Ethics Policy and issues are further safeguarded through corporate governance processes and monitoring by the board and its committees. The policy applies to all the group’s employees and is presented on the website. The company supports the ten principles of the United Nations Global Compact in the areas of human rights, labour, the environment and anti-corruption.

Compliance training is provided to employees to support their understanding of and commitment to group policies in order to protect and enhance the company’s reputation. The training educates managers in their responsibilities for employees, commercial contracts and company assets and is delivered globally via online learning programmes and seminars. During 2009/10, 482 managers completed this training. In the USA there is a well established programme of compliance training in place. In 2009/10, 1,986 employees completed an Ethics Overview module and 1,676 employees completed a Preventing Workplace Harassment module.

All facilities have established policies and procedures for employees to raise employment related issues for consideration and resolution. A confidential and secure ‘whistleblowing’ website and telephone helpline are also in place to give all employees additional means to raise any issue of personal concern.

Management of supply chain and contractor activities is a core component of the ISO 9000 and ISO 14000 series of standards. Supply chain and contractor management questionnaires are a requirement of achieving and maintaining registration and as such, ISO registered Johnson Matthey operations require the completion of appropriate questionnaires. For those operations without ISO registration, the group EHS management system provides policy and guidance on supply chain management and contractor control. In addition, the group has recently published an Ethical and Sustainable Procurement Policy which supports our aim of ensuring that the way business is conducted throughout the whole of our supply chain conforms to our own standards.

Johnson Matthey is confident of the human rights performance of its own operations but recognises that business practices in the supply chain are not always transparent and represent a risk that must be managed. Every effort is made to ensure the issues are managed effectively. We support the principles defined within the United Nations Universal Declaration of Human Rights and the International Labour Organisation Core Conventions including the conventions in relation to child labour, forced labour, non-discrimination, freedom of association and collective bargaining. Compliance with and respect for these core principles are integrated within the risk assessment procedures and impact assessments which are undertaken when entering into business in a new territory and within the due diligence processes when making an acquisition or entering a joint venture.

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