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.
During the first year, TFT focused its support on the following core areas:
→ Identify priority suppliers to initiate action
Twelve priority global suppliers, representing 80% of the volume of palm oil derivatives and palm kernel oil derivatives purchased by J&J, were identified for engagement and assessment.
→ Introduce its sourcing criteria to buyers and the selected suppliers
TFT has directly engaged with 9 of the 12 suppliers to introduce J&J’s sourcing criteria, the role of TFT and has then worked to build a level of understanding of the supplier’s operations and their approach to sustainability. TFT provided guidance on initial steps each supplier needs to take to develop transparency in their palm oil supply chain.
Following introductions with each supplier, TFT signed Non-Disclosure Agreements and continued to engage with each supplier to check on progress towards transparency of the supply chain and to provide feedback on the information shared. Because the oleo chemical supply chain has additional complexity compared to traditional food supply chains, TFT has been supporting suppliers to navigate the challenges of obtaining supply chain information, including providing simple tools for assisting the collection of supply chain information.
The three remaining suppliers are still in the process of being engaged.
→ Support suppliers to build transparency of the supply chain
Through the actions of the suppliers and the continual follow up by J&J and TFT, a basic level of supply chain transparency has been developed for 6 of the suppliers. In some cases suppliers have been able to develop good visibility back to palm oil mills. In other cases the supplier continues to work with their own suppliers to encourage palm oil mill level visibility in the supply chain.
As well as analysing supply chain information, TFT has also completed a review of each key J&J supplier that the work has focused on so far. Of the 12 suppliers being engaged, 2 suppliers have released public policies that are equivalent to J&J palm oil criteria. TFT and J&J will work to continue to encourage other suppliers to adopt strong policies and establish robust implementation plans around such policies.
2015/2016 Work Plan
Given the outcomes of the previous workplan, the 2015/2016 workplan will be focused on key suppliers; building their internal capacities, obtaining mill level information and running desktop assessments of supplying mills. This will identify any potential gaps with J&J sourcing criteria. TFT and J&J will establish project plans together to make on-the-ground improvements in any areas identified as being non-compliant.
In addition, TFT will provide four events for J&J buying teams to educate them further about the topics that the Responsible Palm Oil Sourcing Criteria seeks to tackle. Such events will improve capabilities for buyers and ensure the J&J criteria are upheld in every sourcing decision.
Finally TFT will support J&J to publicly report every six months on its progress