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Growing Supplier Diversity

We have long recognized that small and diverse suppliers play an important role in the success of our business. We aim to ensure that businesses with diverse ownership, control and operations may become valued partners and grow with Johnson & Johnson. Our global Supplier Diversity & Inclusion program continues to seek opportunities for inclusive sourcing and relationships with diverse suppliers. Additionally, our Health for Humanity 2025 Goals include a specific supplier diversity goal: By 2025, achieve $4.5 billion Global Impact Spend with small and diverse suppliers, representing a 20% increase from 2020.

Our approach includes establishing supplier diversity targets by category, assigning dedicated teams to increase spend with a range of minority-owned businesses through understanding the unique needs of different demographic groups, and engaging with multiple external advocacy organizations and NGOs in innovative ways to develop our pipeline of diverse suppliers and support development of those businesses.

2021 Tier 1 Diverse Supplier Spend in the U.S. (millions)

2021 Tier 1 Diverse Supplier Spend in the U.S. (millions)
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2021
Tier 1 Diverse
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2,214.0
Tier 1 Minority-owned
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1,463.6
Tier 1 Women-owned
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872.9
Tier 1 Disabled-owned
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159.3
Tier 1 Veteran- and disabled veteran-owned
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118.9
Tier 1 LGBT-owned
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9.2

Several notable advances were made in 2021 as we progress toward our supplier diversity goal. Examples include:

  • Expanding the coverage of our Buy Diverse eMarketplace platform to China and Brazil while continuing to add more suppliers in existing Buy Diverse regions such as the U.S. and Australia and further embedding ways to consider diverse suppliers in buying decisions by leveraging Buy Diverse and other tools
  • Building new advocacy partnerships with 14 NGO partners outside the U.S., including supporting research in 2021 to build advocacy infrastructure in Europe for minority business enterprises and social enterprises
  • Hosting our first-ever joint, global, virtual matchmaking event in partnership with six advocacy organizations that are part of the National Business Inclusion Consortium (NBIC), including the National Gay & Lesbian Chamber of Commerce (NGLCC) who co-hosted the event, and where Johnson & Johnson held discussions with 100 certified diverse businesses and moved more than half of them forward in our procurement process
  • Driving diverse spend transparency through the supply chain by expanding our reporting of our detailed diverse supplier spend to our major customers in response to additional customer requests this year, which allows our customers to recognize the impact of their spend on diverse and small businesses through their value chain and helps them achieve their own supplier diversity objectives
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In 2021, Johnson & Johnson exceeded $2 billion procurement spend with diverse Tier 1 suppliers in the U.S for the first time.
Engaging diverse suppliers in our complex supply chain at Johnson & Johnson is a priority for all of us in our procurement teams. That’s because our success not only adds value to our business, it also strengthens the communities that we serve and adds social and economic value for underrepresented groups.
Charlene Vickers
Director of Supplier Diversity and Inclusion, Johnson & Johnson
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Charlene Vickers, Director of Supplier Diversity and Inclusion at Johnson & Johnson, was named the 2021 Diversity Advocate of the Year by the NGLCC. This prestigious award honors an individual who has demonstrated a robust commitment to the growth and development of the NGLCC and its community of LGBT suppliers. Charlene was recognized for her proactive outreach to share opportunities with certified LGBT businesses and for the matchmaking event she developed and launched in 2021 that resulted in more than 50 LGBT and diverse suppliers being selected for further engagement.

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