Energy Program

Dan CassidyManager, Energy & Sustainability J&J

Workplace Solutions

Johnson & JohnsonThe world's most comprehensive and broadly based manufacturer of health care products, as well as a provider of related services, for the Consumer, Pharmaceutical, and Medical Devices & Diagnostics markets.

• More than 250 operating companies

• More than 115,000 employees worldwide

• Selling products in more than 175 countries

• 3 Segments: Pharmaceuticals, Medical Devices & Diagnostics, and Consumer

• 2012 Sales $67.5 Billion

1943 Our Credo

Robert Wood Johnson crafted Our Credo long before anyone ever heard the terms “sustainability” or “corporate social responsibility.”

Up to $190 Bn savings opportunity

1990-2010 Sustainability Reporting

5

Environmental Leadership – 1990 First Pollution

Prevention goals

Sustainability Goals– 1993 First Sustainability report– 2000 Next Generation goals– 2005 Healthy Planet 2010

goals– 2010 Healthy Future 2015

goals

Johnson & Johnson Environmental Report, 1993

Healthy Future 2015

Healthy People Healthy Planet Healthy Business

6

• Research and development for neglected diseases

• Affordable access to medicines

• Advancing community wellness

• Fostering the most engaged, health-conscious and safe employees in the world

• Enhancing outcome measurement in philanthropy

• Partnering with suppliers that embrace sustainability

• Committing to enhanced transparency and accessing the power of external collaboration

• Building on our legacy in safeguarding the planet

• Reduce the environmental impact of our operations

• Increase the sustainable design of our products

Reduce Facility Impacts

2015 Goals:• 20% absolute reduction in facility CO2 emissions by 2020• Increase onsite clean-technology energy capacity to 50 MW• 20% decrease in fleet CO2 emissions per mile• 10% absolute reduction total waste disposal & water consumption Janssen Raritan site 1,870 kW completed December 29 th 2011

CO2 Reduction Strategy – Existing Buildings

• Energy Efficiency - Best Practices

• On-site co/tri-generation, fuel cells

• On-site renewables: solar, wind, biomass, landfill gas, geothermal

• Green energy procurement (PPA’s)

Worldwide CO2 ResultsC

O2

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s [

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san

d M

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Sales [B

illion

US

$]

Worldwide Results 2012 Goal vs. 2010: -4%CO2 Emissions 1990-2012 vs. Sales 2012 Actual vs. 2010: -6%

Net Emissions Offsets Sales

0

200

400

600

800

1000

1200

1400

'90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 12

2012 J&J ENERGY PROFILE – WORLDWIDE DATA

0.0

10.0

20.0

30.0

40.0

50.0

60.0

'90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 12

Th

ou

san

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ic T

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CO2 EMISSIONS FLOOR SPACE

Milli

on

S

Q.F

T.

'90

'91

'92

'93

'94

'95

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

11120.0

5.0

10.0

15.0

Tri

llio

n B

TU

’s

ENERGY USAGE

Milli

on

US

$

ENERGY COST

'90

'91

'92

'93

'94

'95

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

11120

50

100

150

200

250

300

350

+31%

+38%

+181%

+12%

J&J Electricity Rates

20002001

20022003

20042005

20062007

20082009

20102011

2012$0.00

$0.04

$0.08

$0.12

$0.16

$0.20

$0.24

BrazilChinaIndiaPuerto RicoUnited StatesEurope

Year

Cost

($/k

Wh)

J&J Fuel Rates

20002001

20022003

20042005

20062007

20082009

20102011

2012$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

BrazilChinaIndiaPuerto RicoUnited StatesEurope

Year

Cost

($/t

herm

)

Commitment to Clean Energy

3,000kW Tri-GenerationLimerick, Ireland

Currently 45 MW installed or in-progress

• 34 Solar• 10 Cogeneration• 3 Biomass• 3 Geothermal• 2 Wind

Project pipeline of over 14MW

• 2 Wind• 9 Solar• 2 Cogeneration 500 kW PV array,

New Brunswick, NJ

Two 500 kW wood chip boilersCork, Ireland

LEED Sustainable Building Policy: All new construction and major renovations of J&J facilities will be LEED certified.

AFFILIATE LOCATIONRATING SYSTEM

TYPE LEVEL DATE

Janssen Titusville, NJ LEED  Existing Buildings Silver 2004

J&J PRD La Jolla, CA LEED  New Construction Certified 2005

McNeil Ft. Washington, PA      LEED  Commercial Interiors Silver 2006

J&J PRD Springhouse, PA LEED  New Construction Gold 2009

Corporate New Brunswick, NJ LEED  Existing Buildings:

O&M Gold 2009

J&J Consumer China Shanghai, China LEED  New Construction Silver 2010

Lifescan Inverness, Scotland LEED New Construction Gold 2011

Select Examples of Our 15 LEED Buildings Worldwide:

Commitment to Sustainable Buildings

Policy for Sustainable Design and Construction - Revised 2012

• Targets higher Energy & Atmosphere scores– Forces evaluation of new

technologies– Mandates use of

technologies with 10 year or better paybacks

• Focus on right-sizing equipment

• Added smaller buildings to policy scope

CO2 Capital Funding ProcessAugust, 2004

• $40 million per year in capital relief for projects worldwide

• Projects provide good financial returns:

15% Internal Rate of Return

• Projects must provide meaningful CO2 reduction

Criteria:

CO2 Projects Funding Program

• 146 projects approved

• $313.6 million US approved

• Average IRR: 19.3%

• 100 Projects Complete

• 145,887 metric tons CO2/yr

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Actual Spending

[$ MM]$21.4 $26.4 $38.3 $12.0 $44.0 $56.4 $48.2 $22.2 $39.9 $4.8

Energy Efficiency,

100

CHP, 11

Solar PV, 27

Geothermal/Biomass, 5

Wind, 3

ENERGY EFFICIENCY INITIATIVES

Gas ConversionJ&J Thailand

Variable speed air compressor, J&J Mumbai

HVAC Upgrade, Raynham, MA

Chiller upgrade Vistakon, Jacksonville

Lighting upgrade HCS, Memphis

Boiler upgrade J&J UK

Energy Efficiency – Recent examples

Drive Implementation through Programs

• J&J Energy Best Practices• Project Cold (Chilled water optimization)• Project Hot (Boiler system optimization)• Project Relight

Coming Soon…

Project Air (compressed air retrofits)

Project Aeolus (Reduce air changes in HVAC)

Project Hydro (water reductions)

Project Clean (Improvements in CIP’s)

Project Lab (Lab hood energy reduction)

Project You (Awareness & behaviour change)

Project Zero (Carbon neutral sites)

CLEAN GENERATION

Janssen R&D, Springhouse PA

3800 kW MWM

Janssen, Raritan NJ3000 kW GE

Lifescan, Inverness UK229 kW Mercedes

DePuy, Cork Ireland402 kW MAN

Cogeneration Projects

24

25

26

27

28

Thank You