Energy Program Dan Cassidy Manager, Energy & Sustainability J&J Workplace Solutions Johnson & Johnson The 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 $190 Bn savings opportunity 1990-2010 Sustainability Reporting Environmental Leadership – 1990 First Pollution Prevention goals Sustainability Goals – 1993 First Sustainability report – 2000 Next Generation goals – 2005 Healthy Planet 2010 goals – 2010 Healthy Future 2015 goals 5 Healthy Future 2015 Healthy People Healthy Planet • Research and development for neglected diseases • Building on our legacy in safeguarding the planet • Affordable access to medicines • Reduce the environmental impact of our operations • Advancing community wellness • Fostering the most engaged, health-conscious and safe employees in the world • Increase the sustainable design of our products Healthy Business • Enhancing outcome measurement in philanthropy • Partnering with suppliers that embrace sustainability • Committing to enhanced transparency and accessing the power of external collaboration Reduce Facility Impacts 2015 Goals: • 20% absolute reduction in facility CO2 emissions by 2020 • Increase onsite cleantechnology energy capacity to 50 MW • 20% decrease in fleet CO2 emissions per mile • 10% absolute reduction total waste disposal & water consumption Janssen Raritan site 1,870 kW completed December 29 th 2011 CO2 Reduction Strategy – Existing Buildings • Energy Efficiency - Best Practices • On-site co/tri-generation, fuel cells • On-site renewables: solar, wind, biomass, landfill gas, geothermal • Green energy procurement (PPA’s) Worldwide CO2 Results 2012 Goal vs. 2010: 2012 Actual vs. 2010: -4% -6% Sales [Billion US$] CO2 Emissions [ Thousand Metric Tons] Worldwide Results CO2 Emissions 1990-2012 vs. Sales Net Emissions Offsets Sales 1400 FLOOR SPACE CO2 EMISSIONS 60.0 1200 Million SQ.FT. Thousand Metric Tons 2012 J&J ENERGY PROFILE – WORLDWIDE DATA 1000 800 600 +12% 400 50.0 40.0 30.0 20.0 200 10.0 0 0.0 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 12 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 12 ENERGY USAGE 350 ENERGY COST 300 Million US$ Trillion BTU’s 15.0 +38% 10.0 5.0 +31% 250 +181% 200 150 100 50 0 0.0 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 12 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 12 J&J Electricity Rates $0.24 $0.20 $0.16 Brazil China Cost ($/kWh) $0.12 India $0.08 Puerto Rico United States $0.04 Europe $0.00 Year J&J Fuel Rates $2.50 Cost ($/therm) $2.00 Brazil $1.50 China India $1.00 Puerto Rico $0.50 United States Europe $0.00 Year Commitment to Clean Energy 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 3,000kW Tri-Generation Limerick, Ireland Two 500 kW wood chip boilers Cork, Ireland 500 kW PV array, New Brunswick, NJ Commitment to Sustainable Buildings LEED Sustainable Building Policy: All new construction and major renovations of J&J facilities will be LEED certified. Select Examples of Our 15 LEED Buildings Worldwide: AFFILIATE LOCATION RATING 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 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 Process August, 2004 Criteria: • $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 CO2 Projects Funding Program • 146 projects approved Energy Efficiency, 100 Wind, 3 • $313.6 million US approved Geothermal /Biomass, 5 • Average IRR: 19.3% Solar PV, 27 • 100 Projects Complete CHP, 11 • 145,887 metric tons CO2/yr 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Actual Spending $21.4 [$ MM] $26.4 $38.3 $12.0 $44.0 $56.4 $48.2 $22.2 $39.9 $4.8 ENERGY EFFICIENCY INITIATIVES Energy Efficiency – Recent examples Variable speed air compressor, J&J Mumbai Chiller upgrade Vistakon, Jacksonville Lighting upgrade HCS, Memphis Boiler upgrade J&J UK HVAC Upgrade, Raynham, MA Gas Conversion J&J Thailand 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 Cogeneration Projects Janssen R&D, Springhouse PA 3800 kW MWM Janssen, Raritan NJ 3000 kW GE Lifescan, Inverness UK 229 kW Mercedes DePuy, Cork Ireland 402 kW MAN 24 25 26 27 Thank You 28