Philips Reinforces Its Leadership as a Purpose-Driven Company With an Enhanced and Fully Integrated Approach to Doing Business Responsibly and Sustainably

Royal Philips, a global leader in health technology, further reinforced its commitments as a purpose-driven company with the announcement of an enhanced and fully integrated approach to doing business responsibly and sustainably. Currently completing its ‘Healthy people, Sustainable planet’ 2016 – 2020 program, Philips is set to achieve all of the program’s ambitious targets by the end of the year, including generating 70% of its sales from green products and services with 15% from circular economy solutions, becoming CO2-neutral in its operations, recycling 90% of its operational waste, and sending zero waste to landfill [2]. Building on this strong track record, Philips’ new framework comprises a comprehensive set of key commitments across all the Environmental, Social and Corporate Governance (ESG) dimensions that guide execution of the company’s strategy. It includes ambitious targets and detailed plans of action.

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“When we started our transformation journey, our aim was to make sure that Philips stayed relevant – that we could apply our tremendous innovation strength to make a difference to people’s lives,” said Frans van Houten, CEO of Royal Philips. “As a leading health technology company today, our purpose is to improve people’s health and well-being through meaningful innovation, positively impacting 2 billion lives per year by 2025. We aim to grow Philips responsibly and sustainably, and we therefore continuously set ourselves challenging environmental and social targets, and live up to the highest standards of governance. Acting responsibly towards the planet and society is part of our DNA. I am convinced that this is the best way for us to create superior, long-term value for Philips’ multiple stakeholders.”

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Environmental: 100% of new product introductions in line with Philips’ EcoDesign requirements by 2025
Respecting the planet’s environmental limits, Philips is committed to science-based targets, reducing its carbon footprint across its entire value chain in line with a 1.5 oC global warming scenario – as recommended by the United Nations Framework Convention on Climate Change (UNFCCC) and in line with the Paris Agreement. Through investments in green innovation, 100% of its products and services will be designed in line with Philips’ EcoDesign requirements aimed at improving energy efficiency, especially during the customer use phase. ‘Eco-Hero’ products – breakthrough products and solutions with clear sustainability benefits – will account for 25% of revenues.

By 2025, the company will source 75% of its total energy consumption (including fuel) from renewable sources (compared to 36% in 2015). It will also ramp up its circular economy revenues from 15% to 25% of sales, extend its trade-in program to all its professional medical equipment, embed circular practices at its sites, and send zero waste to landfill. Philips will also work with its suppliers to reduce the environmental footprint of its entire supply chain in line with the 1.5 oC global warming scenario. Unavoidable carbon emissions in Philips’ own operations will be offset via investment in health-benefitting environmental projects, such as safe drinking water, clean energy, biodiversity, and forestation programs.

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EcoDesignenvironmentalESGhealth technologyHR TechnologyNEWSRoyal PhilipsSocial and Corporate GovernanceUNFCCC
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