Madison Martin Jillian Chance Eric Alborn Environmental Risks
Madison Martin, Jillian Chance, Eric Alborn
Environmental Risks Extreme weather events / natural disasters ● 1900 Galveston Hurricane ● ● ● Sent supplies to restock hospitals and pharmacies 1906 San Francisco Earthquake ● ● ● ● ● Category 4 hurricane, killed nearly 8, 000 people 8. 3 on the richter scale rocked the Bay Area Sent railcars full of sterile surgical supplies and donated $1, 000 Supplied largest amount of medical supplies Typhoons, tsunamis, and flooding in the Asia- Pacific in 2009, and 2011 Hurricane Sandy, Tri State area 2012 Typhoon Haiyan, Philippines, 2013 Hurricane Michael, 2018, 4 to 5 tons of medical supplies, over 800 “family packs” Helps fund disaster preparedness training “When Disaster Strikes, Johnson and Johnson is there”
Environmental Risks Failure of climate-change mitigation and adaptation ● ● ● J&J first carbon neutral status site Launched in 2004, the Johnson & Johnson CO 2 Capital Relief Program provides up to $40 million per year in capital relief for energy projects across our sites worldwide. Green buildings, LEED certified 2020 GOALS: Increase the recyclability of our Consumer product packaging to 90+% via design and partnerships in five key markets where mature recycling infrastructure exists Reduce absolute carbon emissions 20% by 2020, 80% by 2050. Produce/procure 35% of electricity from renewable sources by 2020; aspire to power all facilities with renewable energy by 2050. Man-made environmental disasters ● - - ● - 2019 : The Brazilian Dam Collapse Dam constructed to hold back iron ore waste, burst, releasing millions of tons of muddy sludge Contaminating the water supply and leaving several hundred people missing or dead Assembled 500 hygiene kits 2 tons of consumer products donated 2020 GOALS: J&J has partnered with the C 40 Cities Climate leadership group, committing $1 million to help 90 cities around the globe improve air quality
Societal Risks Large-scale involuntary migration ● - 2013 : The Syrian Refugee Crisis 11 million refugees have fled Syria Every year since 2013, J&J has provided physician training, medical supplies and humanitarian aid In 2016, the company committed $1 million to fund programs to strengthen refugee children and families Water Crisis ● ● ● GOALS To best address our potential impact, we set a 2020 Health For Humanity Goal to conduct a comprehensive water risk assessment at 100% of manufacturing and R&D locations and implement resource protection plans at the high-risk sites. Johnson & Johnson has also been a participant in the Carbon Disclosure Project (CDP) Water program since its inception in 2010.
Societal Risks Profound Social Instability ● ● - 1930 s : Great Depression Company refused to lay anyone off 5% wage increase, shortened days 1933, opened new facility in Chicago 1942 : World War II U. S. military needed waterproof tape, J&J created duct tape Gas masks, airplane parts, and camouflage Spread of Infectious Diseases ● ● ● 1991: The Aids Crisis Mother to child transmission First corporate sponsor Rate has dropped from 40% to 6. 7% from 2003 2014 : The Ebola Breakout Committed to accelerating and expanding production of a preventative vaccine In 2016 applied to WHO for a emergency use listing in case of another outbreak 2020 GOAL: Produce and donate 1 billion doses of VERMOX (mebendazole) to treat >100 million children per year at risk for intestinal worms. Deliver HIV/AIDS therapy access to a cumulative 130, 000 adults and 5, 000 children; and access to MDR-TB therapy to a cumulative 200, 000 patients, potentially curing*** 157, 000 people with MDR-TB of the disease.
Geopolitical Risks Failure of national governance ● ● Ordered to stop selling vaginal implants because they are no longer commercially viable Ran into risks with regulators and investors Customers complained of severe pain altering one’s body Track record with the FDA Failure of regional or global governance ● ● Goal: to work in close partnership with local governments and NGOs on the ground to get the most innovative treatments Discover and develop products and make them affordable Reach and measurably improve the health of the patients who need them Last mile challenges
Geopolitical Risks State Collapse or Crisis ● 1898: The Spanish American War ○ ○ ○ ● 2001: 9/11 ○ ○ ○ ● Called in to produce first aid supplies Battleground demands exceeded the government’s budget Johnson and Johnson decided to send supplies without compensation Arranged for medical supplies to be placed at all hospitals Distribution centers stayed open 24/7 so orders could be filled immediately Provided air lifts to help deliver the company’s blood screening and typing products to blood centers and military bases 2012: Superstorm Sandy ○ ○ ○ Provided fuel to police and emergency vechiles Supplied generators to local towns Dispatched a company fire truck to help out Distributed 20, 000 kits for victims Began its One Child, One Blanket program
Technological Risks ● Adverse consequences of technological advances ○ ○ ○ Constantly improving in technology to make sure there are no consequences Janseen Human Microbiome Institute Ethicon-Verily Collaboration Health and Wellness Technology Accelerator Digital Health Partner 7 Minute Wellness for Expecting and New Moms ● Cyber-attacks ○ 4 Ways to Protect It ■ Security is baked into the DNA of every product ■ The company has strict oversight of the entire security process ■ Listening to researchers is a top priority ■ The company works to educate regulators
Technological Risks ● Data fraud or theft ○ ○ ○ Johnson and Johnson had to pay $2. 2 billion after misbranding the Schizophrenia drug Risperdal Marketed the drug for unintended uses and downplayed its health risks for children and the elderly Company paid kickbacks to physicians for prescribing the drug
Economic Risks ● Unemployment ○ ○ ○ When unemployment rises, Americans find it harder to afford healthcare. When citizens can’t afford healthcare, J&J subsidiaries suffer as a result. After the financial crisis in 2008, J&J did not see the exponential growth they had become accustomed too. ● Unmanageable Inflation ○ ○ ○ Johnson and Johnson faces challenges in maintaining profitability when inflation is high. In countries like Venezuela, where the inflation rate has surpassed 100%, J&J has engaged in cost reduction programs to ensure they are operating efficiently. J&J has disclosed that they expect operating losses as a result of the continued inflation in countries like Venezuela.
Economic Risks ● Fiscal Crises ○ ○ As mentioned previously, Johnson and Johnson is subject to fiscal policies and economic conditions. When the economy contracts, J&J’s earnings correspondingly decrease and their customer base falls. ● Financial Institutions ○ ○ ○ J&J would not be in the position they are in today if it weren’t for the institutional investors that fund their operations. Institutional investors comprise 67% of their total ownership structure. If any of these institutions were to collapse, J&J would have trouble remaining solvent and would likely face bankruptcy.
Economic Risks ● Illicit Trade ○ ○ ○ Because the company operates in many different countries, trade laws are extremely important to their core business. If export/import laws change (and they often do), J&J must comply with the regulations put in place. If they fail to do so, they could face sanctions that lead to criminal indictments or civil law suits.
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