We manage sustainability performance through a mix of internal processes, policies and management systems and external activities

Our policies and management systems – notably in environment, health and safety , human resources , supply chain management and business integrity and ethics – apply to all our operations worldwide. At a minimum, we observe the legal requirements of the country, and in many cases our policies and systems are in advance of the local standards.

Accountability at division and individual business level is an important underlying feature of Johnson Matthey's culture and this principle is borne through in the way we manage sustainability performance. This emphasis on local action also plays a key part in our sustainable business goals to 2025.

Achieving our goals has always been underpinned by making sustainability our 'way of doing business' and the principle of fully embedding sustainability into our routine business processes and planning activities was established at an early stage.

Plans and targets

Sustainability plans are incorporated in the annual budget process and describe the nature of the programmes and projects to be undertaken, together with capital expenditure requirements and value generated over a three year business cycle.

Target metrics that are meaningful in a local business context are requested as part of the plan, together with details of the contribution that the programme will make towards reaching the group's overall objectives. The plans include the contribution to sustainability stemming from improvements in operations together with benefits derived from the development of new and improved products.

These plans are discussed with the Group Management Committee as part of the annual budget discussions and are formally approved by the board. Progress against the Sustainability 2017 targets is assessed on a group basis to establish if additional management action is required.

Senior management rewards are based on achieving outstanding performance and enhanced earnings per share growth. Sustainability is an essential part of achieving such performance and is an integral part of the annual budget and strategic planning process as described above. Annual incentives and goals for middle management include personal objectives that can be used to drive sustainability.

Environment, health and safety (EHS) governance processes and auditing

Compliance audits on EHS matters are conducted to verify that performance standards are in line with our corporate EHS policies. These include specialist reviews of occupational health clinical governance.

Reviews and surveys

In addition to our EHS auditing, we also have a formal system of site and functional reviews to stimulate improved sustainability performance. Conducted by members of the group sustainability team, the reviews aim to raise awareness of sustainability, provide help and support with initiatives, identify and share examples of good practice and ensure that the principles of sustainability are fully embedded across Johnson Matthey. In 2016/17 we commissioned Corporate Citizenship to provide external assurance and commentary on the company's sustainability reporting of our Sustainability 2017 key performance indicators and data pertaining to our 2016/17 environment, health and safety performance. The full assurance statement and commentary is available to download.

The site and functional reviews also focus on the progress being made against local plans and on the alignment of local targets with the themes and sustainable business goals to 2025. They provide a forum for discussions on every aspect of sustainability and an opportunity to explore any challenges and barriers encountered. Reviews also include examination of the tools and metrics which can be used to understand the sustainability impacts and benefits of our operations and products.

Externally, we participate in surveys such as FTSE4Good, Dow Jones Sustainability Index (DJSI) and the Carbon Disclosure Project. These surveys help us to benchmark our performance and show us where we can improve. Our participation assures our stakeholders of our transparency and serious intent in sustainability.