[ESG Management Column] Analysis of Johnson & Johnson's ESG Management Case Study: Market Value and Stock Price Impact

(Seoul = Choi Bong-hyeok Columnist) Johnson & Johnson's (J&J) Excellence in ESG Management - Key Indicators and Analysis

J&J is widely recognized as a global company that practices sustainable management and social responsibility.

In particular, it has shown outstanding performance in the field of ESG (environment, society, and governance) management, and has been selected as an excellent company by various evaluation agencies.

Key Indicators and Evaluation

1. MSCI ESG Evaluation

Johnson & Johnson maintains an AA rating in the MSCI ESG Evaluation, recognized as a sustainability leader. This means that the company's ESG risk management and performance are far higher than the industry average.

2. Sustainalytics ESG Evaluation

J&J received a high score of 99 in the Sustainalytics ESG Evaluation, ranking it as a leading company in the industry. This is a result of its outstanding performance in environmental, social, and governance aspects.

3. Dow Jones Sustainability Indices (DJSI)

Johnson & Johnson has been included in the DJSI World Index and DJSI North America Index for 14 consecutive years. This means that J&J has established itself as a best practice in sustainable management.

4. Corporate Knights Global 100

J&J was selected as one of the 100 most sustainable companies, recognizing its efforts in social and environmental responsibility.

Key Performance Statistics

Environment

Carbon Emission Reduction: J&J is working to halve its carbon emissions by 2030, and as of 2020, it has reduced GHG emissions by 16% compared to 2015.

Energy Efficiency: Through energy efficiency improvement programs, energy consumption was reduced by 10% in 2020 compared to 2015.

Waste Reduction: Through waste reduction and recycling programs, waste generation was reduced by 20% in 2020 compared to 2015.

Water Conservation: To conserve water, water usage was reduced by 15% in 2020 compared to 2015.

Society

Employee Diversity and Inclusion: J&J is striving to promote employee diversity and inclusion. As of 2020, 30% of the company's management team is female, and 40% of its employees are minorities.

Product Safety

J&J adheres to strict product safety standards and responds quickly to any product-related issues.

Community Contribution: As of 2020, J&J donated over $500 million to charities.

Governance (Transparency Management)

Corporate Ethics: J&J has a strong corporate ethics consciousness and is committed to ensuring all employees adhere to its code of ethics. It also operates a system for reporting unethical behavior.

Transparency: J&J values transparency and publishes ESG reports and discloses information about its sustainable management activities.

Responsible Leadership: Management has a strong commitment to sustainable management and is working to achieve ESG goals.

Value of J&J's ESG Management

Sustainable Growth: It lays the foundation for long-term growth and increases corporate value.

Risk Management: It effectively manages ESG-related risks, strengthening the company's stability.

Investment Attraction: It gains the trust of investors and makes attracting investments more favorable.

Enhanced Brand Value: It improved the corporate image and increased brand value.

Strengthened Social Responsibility: It has a positive impact on society and contributes to sustainable development.

ESG Evaluation Results

MSCI ESG Evaluation: Johnson & Johnson maintains an AA rating in the MSCI ESG Evaluation, recognized as a sustainability leader.

Sustainalytics ESG Evaluation: J&J received a high score of 99 in the Sustainalytics ESG Evaluation, ranking it as a leading company in the industry.

Dow Jones Sustainability Indices (DJSI): Johnson & Johnson has been included in the DJSI World Index and DJSI North America Index for 14 consecutive years.

Corporate Knights Global 100: J&J was selected as one of the 100 most sustainable companies, recognizing its efforts in social and environmental responsibility.

Conclusion

J&J is playing a model role as a company that achieves sustainable growth and social responsibility through ESG management.

It has been recognized for its outstanding performance by various ESG evaluation agencies, demonstrating that J&J is playing a leading role in practicing sustainable management and social responsibility.

J&J will continue to strive to create a better future through ESG management.

Reference Materials

J&J ESG Report: JNJ ESG Resources

MSCI ESG Evaluation: MSCI ESG Ratings

Sustainalytics ESG Evaluation: Sustainalytics

Dow Jones Sustainability Indices (DJSI): S&P Global

Corporate Knights Global 100: Corporate Knights

Factors Contributing to Stock Price Increase through ESG Management
Factors contributing to stock price increases through ESG management for companies such as J&J include risk management, investor attraction, strengthening consumer relationships, operational efficiency, innovation, and competitive advantage. These factors can improve the company's long-term financial performance and provide a positive signal to investors, leading to a rise in stock prices. ESG management is becoming a strategic element that goes beyond simply fulfilling corporate responsibility and has a positive impact on actual financial performance and stock prices.

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