What is EARTHWARDS®? The design and evaluation process that supports sustainable product innovation within the Johnson & Johnson Family of Companies, moving us towards a healthier future. EARTHWARDS® Objectives •Support the development of more sustainable products •Provide tools & resources to enable sustainable innovation •Enable meaningful and credible claims 2 EARTHWARDS® Process The EARTHWARDS® process is regularly reviewed by a panel of sustainability experts from government, academia, business, and environmental NGOs. A proprietary online scorecard is used to evaluate products in seven key categories that we feel have the most potential for environmental and social impacts. 3 3rd Party Assurance – UL Environment The Earthwards® process goes through an annual independent 3rd party assurance process conducted by UL Environment. • Verifies that program guidelines and minimum requirements are being properly followed. • These guidelines and requirements provide a framework that allows Johnson & Johnson Family of Companies to make continuous product improvements across a broad range of lifecycle impact areas. Why Undertake the Earthwards® Process? WHY EARTHWARDS? Our proprietary Earthwards® process supports our commitment to improving the sustainability of our products. The process is a valuable resource that guides brand teams in developing and marketing products that help people, the environment and our business. 1. INNOVATION & DIFFERENTIATION Lifecycle thinking helps uncover innovative ideas to meet the needs of our customers and consumers. 2. ENHANCED CREDIBILITY The review panel of sustainability experts and annual 3rd party audit ensures credibility of all product claims. 3. COMMUNICATION OPPORTUNITIES Provides a holistic context for framing the discussion of substantial sustainability improvements across the entire lifecycle. 4. COMMITMENT TO OUR VALUES The Earthwards® process embodies Our Credo commitment to protect the environment. 5 Earning EARTHWARDS® Recognition 1 2 3 4 To be considered for EARTHWARDS® recognition, teams must use the scorecard to take a product through a four-step evaluation process. 6 Earning EARTHWARDS® Recognition Teams use the scorecard to go through a four-step process 1. SATISFY PRE-REQUISITES Teams answer a series of questions that gauge their general understanding of the sustainable attributes of their product: • What materials are we using? • Where do they come from? • What happens to a product after it’s used? 7 Earning EARTHWARDS® Recognition Teams use the scorecard to go through a four-step process 2. UNDERGO SCREENING The product undergoes a life cycle screening that examines its environmental impacts and quantifies its improvements in up to seven different categories. 8 Earning EARTHWARDS® Recognition Teams use the scorecard to go through a four-step process 3. IDENTIFY IMPROVEMENTS A product must show three significant sustainability improvements across the seven category areas in order to be recognized as an EARTHWARDS® product. 9 Earning EARTHWARDS® Recognition Teams use the scorecard to go through a four-step process 4. SUBMIT FOR REVIEW Teams then submit a scorecard with their results to a review board of both internal and an external product sustainability expert. The board then determines if the product warrants EARTHWARDS® recognition and provides suggestions for further improvements. 10 STRATAFIXTM Symmetric PDSTM Plus • 40% reduction in packaging materials* • 100% recycled fiber paper based packaging with an average of 35% post-consumer content, a 56% improvement* • 43% increase in shipping efficiency* *Compared to traditional Ethicon sutures 11 BAND-AID® Brand Adhesive Bandages • >10% reduction in secondary packaging and 20% weight reduction of tertiary packaging* • 30% less energy used during manufacturing compared to previous process* • Use of socially responsible local cooperatives to source post consumer recycled paper *Product comparisons based on previous version of the product and based on size reductions and material selection 12 ZYTIGA® (abiraterone acetate) • 64% fewer raw materials used by implementing green chemistry to improve the overall yield* • 78% less water used in synthesis* • 87% less hazardous waste from synthesis* • Wet crystallization and extraction process used to reduce to lean process and minimize potential worker exposures to the API * As compared to the previous API synthesis process 13