Management Approach

Financial viability is a key element of sustainability. Continued growth in profit is an important aspiration of our Sustainability 2017 Vision and we have set a target to more than double our underlying earnings per share by 2017.

The two major thrusts of our vision are about being more efficient with the resources we use and designing new products that help our customers to be more sustainable. Using fewer resources as a business will save us money, it will enable us to maintain or improve our margins and allow us to invest more in R&D and infrastructure. Designing innovative new products for our customers will allow us to maintain or strengthen our competitive position in the markets we serve today and benefit from the growth opportunities in emerging markets within the sustainability sector.

Sound, prudent financial management and consideration and management of risks to the business means that we can ensure a sustainable business delivering benefits to all stakeholders – shareholders, customers, local communities, society, humanity and the planet.

Also see Financial section of this report.

Management Approach

Environmental responsibility is a key element in making Johnson Matthey a more sustainable business. We have 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.

We take raw materials and apply our knowledge and expertise to turn them into more valuable products. The costs of these raw materials are likely to increase in future as they are depleted or become harder to access. By increasing the efficiency with which we use these valuable resources, we will generate cost savings for our business today and help to conserve resources for the future.

The recycling and reuse of key resources (e.g. precious metals) are a fundamental element of what we do. We shall continue to draw on our expertise in this area to benefit the resource efficiency of our own operations and provide enhanced solutions and services for our customers.

Environmental targets are a key part of our Sustainability 2017 Vision. The group aims to become carbon neutral, achieve zero waste to landfill and to halve the key resources per unit output consumed by 2017. In order to meet these aspirations, long term environmental improvement plans and performance indicators have been established.

Due consideration is given to the environmental impact of our business in all aspects of our operations. Through management systems and policies, we ensure, as far as is possible, compliance (as a minimum) with relevant regulation and legislation in order to protect the environment.

Also see Environment section of this report.

Management Approach

Johnson Matthey’s employees are respected as the company’s most valuable resource and play a vital role in building a sustainable business. We are committed to recruiting high calibre employees and providing them with the information, training and working environment they need to perform to the highest standards. All employees are encouraged to develop to their maximum potential, supported by human resources policies and practices that are strategically linked to the needs of our business and our customers.

Health and safety is a key element of our sustainability strategy. We are committed to providing our employees with a safe working environment and supporting and enhancing their health and wellbeing. For us, any accident is unacceptable and our target is zero accidents. This year we have beaten the target we set in 2008 to reduce annual incidence of occupational illness cases by at least 30% by 2013/14.

Also see Johnson Matthey’s Business Integrity and Ethics Policy, the Governance, Social: Our Performance, Health: Our Performance and Safety: Our Performance sections of this report.

Management Approach

The company strives to maintain the highest standards of ethical conduct and corporate responsibility worldwide through the application of the principles within its Business Integrity and Ethics Policy. These issues are further safeguarded through corporate governance processes and monitoring by the board and its committees. All employees have a duty to follow the principles set out in the Business Integrity and Ethics Policy. It is integrated into the Group Control Manual and is available to staff at all sites.

Also see Governance section of this report and the Sustainability Governance section of the company’s website.

Management Approach

We have a strong tradition in Johnson Matthey for good community relations – building and maintaining these are an integral part of making ours a more sustainable business. We have an important contribution to make to the economic development of our local communities, not only as an employer but also through collaboration and investment, both financial and in kind.

The company strives to maintain the highest standards of ethical conduct and corporate responsibility worldwide through the application of the principles within its Business Integrity and Ethics Policy. Johnson Matthey’s ethical policy is integrated into the Group Control Manual and is available to employees at all sites. Measures are in place to identify and prevent fraud or money laundering through activities undertaken by Johnson Matthey or on behalf of customers.

Many of Johnson Matthey’s products have a material impact on various areas of government policy. Examples include pollution control from transportation and industrial sources, the use of catalysts in resource efficient processes and the shift to zero emission fuel cell technologies. We are proactive in engaging in public policy debate where we have the skills, experience and resources to make a material contribution.
Also see Our Stakeholders, Stakeholder Engagement in Action, Governance and Social sections of this report and the Sustainability Governance section of the company’s website.

Management Approach

Product stewardship involves an integrated approach to products, materials and services management designed to objectively assess and then minimise or eliminate the environmental and health related impacts of products. As part of our commitment to sustainability, we appreciate that all the chemicals we use must be managed responsibly. Our product stewardship systems are aligned to a key goal in the 2002 Johannesburg World Summit on Sustainable Development to ‘use and produce chemicals in ways which will lead to the minimisation of significant adverse effects on human health and the environment’.

A systematic product responsibility reporting scheme conforming to the Global Reporting Initiative Sustainability Reporting Guidelines is used to monitor the performance of Johnson Matthey’s operations and maintain surveillance of the company’s products.

Significant attention is given to the impact of our business throughout the supply chain and in particular in those aspects where we are providing products to our customers. Life cycle assessment methods are used in different parts of the business to assess the environmental and social impacts and benefits of our operations and products. Compliance with relevant international laws and standards and the provision of accurate information (e.g. relating to environmental, health and safety matters or product specifications and performance) to accompany our products is critical to ensure that they are provided fit for purpose.

Also see Product Stewardship section of this report.