Johnson & Johnson and TFT
Johnson & Johnson Consumer, Inc. (J&J) and TFT began working together in March 2014 with the aim of ensuring that J&J suppliers of oleo chemicals meet J&J’s Responsible Sourcing Criteria for palm oil.
TFT and J&J initially worked intensively to strengthen the existing palm oil commitment. On May 1st, 2014, J&J announced its Palm Oil Responsible Sourcing Criteria, a ground breaking commitment especially for a buyer of oleo chemicals.
Following the announcement of the sourcing criteria, TFT has been supporting J&J by helping train buyers, identify high-risk areas and engage priority suppliers to introduce the criteria. Together, TFT and J&J’s suppliers work to establish action plans to implement the sourcing criteria.
2017 - Johnson & Johnson's Commitments
- Using our influence and voice within industry to advocate for positive change.
- Ensuring our largest suppliers – those that make up 85% of our total incoming ingredients derived from palm and palm kernel oil – have sourcing criteria as strong as ours and a robust implementation plan.
- Requesting data from these suppliers about the sources of our incoming palm and palm kernel oil derivatives and conducting risk assessments on the sources.
- Verifying conformance to our criteria when risk assessment of the source is deemed to be high.
- Acting in line with our non-conformance process upon receiving credible evidence of non-conformance to our sourcing criteria.
- Supporting projects led by Non-Governmental Organizations that work to improve palm oil production practices.
- Reporting on our progress.
2017 - Johnson & Johnson's Commitments
- Supply chain transparency for J&J’s key suppliers representing 85% of their derivative use. TFT (The Forest Trust) evaluates the capabilities for J&J suppliers using the TFT VTTV (Values-Transparency-Transformation-Verification) approach. Suppliers are at different stages of capability. As proponents of strong standards, J&J and TFT will undertake more sophisticated work with the more progressive suppliers while developing less-progressive suppliers and bringing them up to standards.
- Continual monitoring of conformance with J&J responsible sourcing criteria. J&J continually monitor supplier performance against their criteria, using a wide range of sources. They act in line with their non-conformance process (explained below) whenever there is credible proof that these are not met:
Currently there are four suppliers with non-conformances identified in their supply chain, each of them at different stages in the non-conformance process:
- 1 in Joint Solution Identification. J&J have deployed a project – led by TFT and in partnership with their supplier – to remediate the concerns that were identified.
- 2 in Qualification of Alternatives. J&J are currently qualifying other producers for some specific material due to inadequate responses from suppliers.
- 1 in Time Bound Resolution. J&J are monitoring the suppliers own remediation work with input from 3rd parties
J&J are supporting on-the-ground projects that have a positive impact on their supply chains using their Responsible Palm Oil Sourcing Fund. Projects are supported that, at a minimum, cover an area of production that represents J&J’s annual usage in derivatives, there are three such projects underway in 2017.
- TFT Rurality project for the Pelalawan sub-district in Indonesia. The goal of the project is to improve farmer’s resilience and the livelihood of the community near the mill through: improving FFB quality, shortening supply chain, and identifying other potential commodities as alternative income generation.
- J&J are part-funding a project with IDH (The Sustainable Trade Initiative), to enable and support over 1,000 farmers in Rokan Hulu, Indonesia, in achieving increased environmental and economic sustainability. Farmers are trained on agricultural best practices that combine productivity improvements and environmental sustainability and are aligned to the RSPO Principles & Criteria. To ensure long-term sustainable practices the groups will become RSPO certified.
- J&J are part-funding a project with the University of Wageningen with the objective of increasing yields in smallholder oil palm fields in Jambi and West-Kalimantan, Indonesia. Farmers will be trained on implementing better management practices (BMP) starting from the constraints faced on existing farms.
J&J fully supports the Roundtable on Sustainable Palm Oil (RSPO) and the organization’s work to create a robust, respected certification to ensure palm oil is produced to a standard that meets many stakeholder requirements. Between 2017 and 2018, the RSPO is undergoing a review of its Principles & Criteria (more details can be found here) to ensure these stay relevant and reflect stakeholder understanding of good sustainability practices. Throughout this time, J&J will work with and use their influence to align the RSPO P&Cs to their sourcing criteria.