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Tim Greiner@PureStrategiesPure StrategiesAl Iannuzzi@JNJCaresJohnson & Johnson
Vanessa Lochner@KPShareKaiser PermanenteMia Davis@beautycounterhqBeautycounter
Building Health Into Products and Brands: How The Chemical Footprint Project Helps Business
Enhance Leadership and Exploit Safer Chemicals Opportunities
#SB16SD #ActivatingPurpose
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1
BizNGO Annual Meeting
December 8, 2014
Sally EdwardsLowell Center for
Sustainable Production, UMASS LowellTimGreiner,ManagingDirector
PureStrategies,Inc.
June7,2016
TheChemicalFootprintProject
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2a project of Clean Production Action
Why Chemical Footprint Project?
• Over 200 synthetic chemicals present in umbilical cords of newborns (EWG)
• Risk & Opportunity– Regulatory– Reputation– Reformulation
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3
InvestorSignatories$2.3Tinassets
undermanagement
PurchaserSignatories
$70Binpurchasingpower
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Steering Committee
a project of Clean Production Action 4
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CFP Assessment Framework
5
AssessmentTool:20Questions- 100pts
a project of Clean Production Action
24ParticipatingFirmsfromsevensectors
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First Annual Report
6a project of Clean Production Action
Highlights:• Senior leadership matters• Disclosure lags practice• Chemicals in products the
priority• Chemical footprinting is new
and challenging
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1
Citizenship & Sustainability Our Commitment to a Healthy Future
Children in Sub-Saharan Africa will benefit from our first-of-its-kind pediatric HIV treatment donation program.
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$31.4 billion
$25.1 billion
$13.5 billion
2015 SalesJohnson & Johnson
is 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 markets.
Total Products and Product Variations
389,000
Total Net Sales, Worldwide
Number of Operations, Worldwide
Total Number of Employees, Worldwide
$70.1 billion265
126,500
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We’re creating a new vision of health.
A vision that expands the ways we’ve thoughtabout health and seeks new ways to make
everyone, everywhere healthier.
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We’ll make the places we live, work and play healthier by using fewer and smarter
resources.
PlacesWe’ll team up
with partners and employees to create a culture of health and
well-being.
PracticesWe’ll help people be healthier
by providing better access and care in more places
around the world.
People
OUR FOCUS
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We’ll make our products healthier for
the places we live.
Our goal
Fully integrate sustainable design solutions into our product innovation processes
Core Targets• New and existing products representing 20% of
J&J revenue achieve Earthwards® recognition for sustainable innovation improvements
• Increase recyclability of our consumer product packaging to 90+% in key markets
OUR FOCUS | Places
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Earthwards® Areas of Measurement
6
The Earthwards® approach leverages innovation to improve our products in seven key areas:
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Perspectives on the CFP• Comprehensive, logical categories, useful output and
verification is a plus • Insures a comprehensive evaluation of chemical management
and policies• Validated our approach in managing chemicals
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What we learned from the CFP
• Participating in Pilots is helpful to deeply understand stakeholders perspectives
• Pilots enable shaping• Challenging for complex supply chains, multiple business
units and acquisitions• Reinforced need for collaborating with functional partners
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Kaiser Permanente’s Journey Toward Safer ChemicalsSB'16 San Diego: Building Health into Products and Brands: The Chemical Footprint Project
Vanessa Lochner, EPP Director
Environmentally Preferable Purchasing Program
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Kaiser Permanente at-a-glance
10.2 million
659
18,652
51,010
186,497
As of December 31, 2015
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$62.7bnOperating Revenue
$14bn+Spend
Kaiser PermanenteOperating in 7 Regions across the U.S.
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Our mission
To provide high-quality,affordable, health care services and to improve the health of our
members and communities
we serve.
improve the health of our
members and communities
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Our focus
§ Safer Chemicals§ Climate and Energy§ Sustainable Food§ Reduce, Re-use, Recycle§ Conserve Water
Case Studies Collaborations
Greening Health Care
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Recognizing contributors to chronic disease
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The why -Body Burden Study A 2005 study found 287
industrial chemicals and pollutants in umbilical cord blood
from 10 babies born in U.S. hospitals:
– Pesticides– Brominated flame
retardants– Dioxins– Phthalates (such as DEHP)– Mercury and a host of other
chemicals.[1]Of the more than 2,800 chemicals generated at more than 1 million pounds per year , only 43% have been
tested for human health effects[1] Body Burden — The Pollution in Newborns. Environmental Working Group. July 14, 2005.
Available at: http://archive.ewg.org/reports/bodyburden2/execsumm.php
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§ Lots of chemicals…the use of unsafe chemicals in products is pervasive and entrenched in the marketplace
§ Lack of adequate testing– Under current regulations, the health and safety implications of most chemicals
are not required to be tested before entering the marketplace
§ Lack of transparency– Chemical information for products is not readily available or cannot be obtained
from manufacturers
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KP Guidelines for products
Use greener chemicals, chemicals that are inherently less hazardous and release little to no toxic by-products across their lifecycle.
9 | © 2011 Kaiser Foundation Health Plan, Inc. For internal use only.
February 12, 2017
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Current approach toward safer chemicals
Four actions we are taking to promote safer chemicals in products:
Sustainability scorecard1
2 Targeted products
3 Public policy
4 Research (e.g., Bisphenol A (BPA) exposure and health)
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Policy GPOInvolvement
Scorecard Evaluation
EPPProgram
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Our EPP Policy: Safer ChemicalsIn 2006, the Environmentally Preferable Purchasing policy was created in support of Kaiser Permanente’s mission to improve the health of our members and the communities we serve. The policy, which went into effect in May of 2006, requires that the principles of EPP be applied to all major purchasing decisions.
The EPP policy mandates the following specific environmental criteria for all purchasing decisions:
Avoid products containing:
• Persistent bioaccumulative toxic (PBT) compounds
• Bisphenol-A (BPA)• Carcinogens, mutagens and reproductive
toxic chemicals• Halogenated flame retardants• Chlorine-containing flame retardants• Latex• Mercury• Phthalates (e.g. plasticizer DEHP (di-2-
ethylhexyl phthalate) • Polyvinyl chloride (PVC)• Volatile organic compounds (VOCs) and
semi-volatile organic compounds• Prop 65 chemicals
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Kaiser Permanente Scorecard for Medical Products
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Prioritizing Products
§ Potential Patient/Employee Exposure
§ Potential environmental impact§ Known Chemicals of Concern§ Procurement Cycle
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The Process
Chemical / Product
Responsible Dept
HazardAssessment
Current State Assessment
Chemical Disclosure
Evaluation of
Chemical Disclosure
Research Marketplace
for Alternatives
Sourcing Process
Criteria or definition of “Safer”
% of Products “Safer”
Approval and
Implemen-tation
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Presentedby
Wewantitall!Assurance of Supply
Quality
Service
Cost Savings
Innovation
Environmental
Diversity
Regulatory
Products and
Services
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If no safer alternative:Required methodology for suppliers - innovation process
1. IDENTIFY:the chemicals of concern that are present within the product(s)
2. ASSESS and EVALUATE: alternatives to eliminate the use of the identified chemicals of concern
3. SELECT:an alternative in accordance with Environmentally Preferable Purchasing (EPP) program contract terms/requirements
4. IMPLEMENT:the use of alternatives and produce safer product(s)
5. PROVIDE:new chemical disclosure to _(name of institutional purchaser)
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KaiserPermanente’sImplementedSuccesses– tonameafew§ Latex-free Exam Gloves§ Mercury-free Thermometers and
Sphygs§ PVC-free Carpeting/resilient flooring § Implemented Sustainability criteria for
fabrics§ DEHP/PVC-free IV Bags and Tubing§ PVC-free and DEHP-free Split-Tip
Chronic Dialysis Catheters§ Chemically-safest infant skin care§ Tricolsan-free soaps§ Flame retardant-free therapeutic
surfaces§ NFS’s ban on antimicrobials and
PFCs
https://practicegreenhealth.org/topics/environmentally-preferable-purchasing/epp-case-studies-health-care
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Makingheadlinesandleadingtheindustry
19
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Current transparency and disclosure is still lacking
— Alexander Pope, Poet
“A little bit of knowledge is a dangerous thing…”
learning
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Industry collaboration and resources
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The missing link?
transform global chemical use by measuring and disclosing data on
business progress to safer chemicals
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Transparency and disclosure
Enables the recognition and reward to suppliers for implementing systems that ensure their products (and supply chains) use safe and
healthy materials
Giving us more information…
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Value creation
Partnering with our suppliers has a direct impact on our ability to create value internally and externally
Product Innovation
Supplier Relationship Management
Supplier Development
Environmentally Preferable Product Selection
Marketplace Culture
ShiftSupplier
DifferentiationCommunity
Benefit
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Encourage supplier participation
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Thank you!
Vanessa LochnerDirector, Environmentally Preferable Purchasing ProgramKaiser [email protected]
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ADVOCATING FOR
GOOD POLICIES
SAFER PRODUCTS/MARKET SHIFT
EDUCATION
OUR MISSION IN ACTION
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STEP 1: BAN INTENTIONALLYThe Never List: 1,500 questionable or harmful ingredients we do not use, no matter what (including nearly 1,400 cosmetics ingredients banned in the European Union).
STEP 2: SCREEN RIGOROUSLYEvery potential ingredient is screened using the best available data. We use information from academia, industry, government and nonprofit health organizations.
STEP 3: LEARN CONSTANTLYWe review emerging data on ingredients regularly, and even commission our own studies. The absence of data does not mean that a chemical is safe.
STEP 4: SOURCE RESPONSIBLYChoose the best available ingredient options; over 80% are natural or plant-derived. Ask for certificates of purity, and test for heavy metal contamination. Source materials and manufacture products in the US. Do not test products or ingredients on animals.
STEP 5: SHARE TRANSPARENTLYWe share every ingredient we use on our product packaging, online and on EWG’s Skin Deep database.
INGREDIENT SELECTION PROCESS
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Proud to be thetop-scoring company in
Chemical Footprint Project Report 2015