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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BizNGO Annual Meeting

December 8, 2014

Sally EdwardsLowell Center for

Sustainable Production, UMASS LowellTimGreiner,ManagingDirector

PureStrategies,Inc.

June7,2016

TheChemicalFootprintProject

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

3

InvestorSignatories$2.3Tinassets

undermanagement

PurchaserSignatories

$70Binpurchasingpower

Steering Committee

a project of Clean Production Action 4

CFP Assessment Framework

5

AssessmentTool:20Questions- 100pts

a project of Clean Production Action

24ParticipatingFirmsfromsevensectors

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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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

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.

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

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

Earthwards® Areas of Measurement

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The Earthwards® approach leverages innovation to improve our products in seven key areas:

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

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

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

Kaiser Permanente at-a-glance

10.2 million

659

18,652

51,010

186,497

As of December 31, 2015

$62.7bnOperating Revenue

$14bn+Spend

Kaiser PermanenteOperating in 7 Regions across the U.S.

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

Our focus

§ Safer Chemicals§ Climate and Energy§ Sustainable Food§ Reduce, Re-use, Recycle§ Conserve Water

Case Studies Collaborations

Greening Health Care

Recognizing contributors to chronic disease

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

§ 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

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

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)

Policy GPOInvolvement

Scorecard Evaluation

EPPProgram

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

Kaiser Permanente Scorecard for Medical Products

Prioritizing Products

§ Potential Patient/Employee Exposure

§ Potential environmental impact§ Known Chemicals of Concern§ Procurement Cycle

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

Presentedby

Wewantitall!Assurance of Supply

Quality

Service

Cost Savings

Innovation

Environmental

Diversity

Regulatory

Products and

Services

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

Makingheadlinesandleadingtheindustry

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Current transparency and disclosure is still lacking

— Alexander Pope, Poet

“A little bit of knowledge is a dangerous thing…”

learning

Industry collaboration and resources

The missing link?

transform global chemical use by measuring and disclosing data on

business progress to safer chemicals

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…

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

Encourage supplier participation

Thank you!

Vanessa LochnerDirector, Environmentally Preferable Purchasing ProgramKaiser PermanenteVanessa.M.Lochner@kp.org

ADVOCATING FOR

GOOD POLICIES

SAFER PRODUCTS/MARKET SHIFT

EDUCATION

OUR MISSION IN ACTION

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

Proud to be thetop-scoring company in

Chemical Footprint Project Report 2015