DCAT Archives: Programs & Events




Sustainability...A Business Imperative
Thomas LaVake, Manager, Worldwide Environmental, Health & Safety, Johnson & Johnson

Presented on Thursday, November 5, 2009 at the Hyatt Regency Hotel,
New Brunswick, NJ.


LaVake said that sustainability, is a mega trend, like globalization, that has multiple components—environmental, social and profitability. Ideally it should fuel growth while minimizing the impact of doing business. LaVake emphasized the importance of sustainability extending beyond the role of a company’s EHS staff to include everyone from PR and marketing to procurement and R&D.

Why is sustainability important to business? 
    > Increasing population growth and related raw material consumption
    > Increasing pressure from hospitals and NGOs to eliminate materials of concern,
        such as mercury, PVC and latex.
    > Walmart’s Sustainability Product Index is having a huge impact on setting expectations
        on everything they sell and companies need to be ready to disclose the characteristics
        of materials.
    > Increasing regulatory requirements especially in Asia.
    > Green labels are positively impacting consumer purchase behavior.

LaVake described how J&J leveraged a long history of corporate citizenship through its credo and how it has enabled its diversified businesses to go beyond current expectations. Sustainability at J&J encompasses the three pillars of sustainability: economic, social and environmental. LaVake reviewed J&J’s 2008 sustainability, environmental and safety results. The company has found that resource reduction leads to cost savings; while employee well being equals cost savings and increased efficiency.

Current J&J initiatives include a carbon disclosure project, green supplier network, and participation in the Pharmaceutical Supply Chain Initiative.

The key challenge for companies is supply chain sustainability. Companies do a pretty good job with their top tier suppliers, but that lots of questions remain below that level.

LaVake summed up his presentation with three simple questions:

• What do you buy? (How well do you know the properties of the materials/services?)
• Where does it come from? (How well do you understand the complete chain of supply?)
• Who do you buy it from? (How well do you know them? Look for companies that have a commitment and public stand. Transparency says a lot.)