February 23, 2021
- Philips is likely one of the first well being expertise firms on this planet that has turn out to be totally carbon impartial in its operations
- New built-in Environmental, Social and Governance framework with targets and motion plans builds on present success to boost the bar for the corporate’s ESG efficiency over the subsequent 5 years
Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA), a world chief in well being expertise, as we speak introduced that it efficiently met all of the targets set out in its 2016 – 2020 ‘Wholesome individuals, Sustainable planet’ program. Key achievements of this system embody carbon neutrality in its operations, 100% electrical energy from renewable sources, over 70% of gross sales from Inexperienced Merchandise and Companies , 15% of gross sales coming from round revenues, recycling 90% of its operational waste, and sending zero waste to landfill.
“I’m happy that we’ve got delivered on all of the targets set out in our Wholesome individuals, Sustainable planet program, making Philips one of many first well being expertise firms on this planet that has turn out to be carbon impartial in its operations,” stated Frans van Houten, CEO of Royal Philips. “Our present built-in ESG framework builds on this success, and we’re decided to affix forces with all needed stakeholders, private and non-private, to drive environmental, social and governance priorities and generate international impression. With the COVID-19 pandemic and local weather change exposing the dangers when it comes to individuals’s well being and entry to high quality healthcare, we’re dedicated to constructing inclusive and resilient healthcare methods, whereas decreasing our dependency on pure assets.”
Philips’ Environmental, Social and Governance replace is an integral a part of the Philips Annual Report 2020, which was published earlier as we speak. Highlights embody:
- Renewable vitality sources: By way of consortium-led virtual Power Purchase Agreements, Philips is securing renewable electrical energy provide to energy its European operations.
- Round economic system: Philips performs a number one position within the Platform for Accelerating the Circular Economy (PACE), setting international Action Agendas and driving change to embed round considering and methods of working. As a part of its dedication to the World Financial Discussion board (WEF) Capital Equipment pledge, Philips has delivered on its dedication to shut the loop for big medical methods gear by providing a trade-in for all offers that the corporate received across the globe, repurposing/recycling elements and supplies in a accountable approach to enhance extra lives with out additional depleting the world’s pure assets.
- Provide chain: Philips works with suppliers to additional scale back their carbon emissions by supporting functionality constructing and contributing to transparency and effectivity within the provide chain. This strategy has improved the sustainability efficiency of suppliers that entered this system in 2019 by 36% in comparison with final yr.
- Lives improved: In 2020, Philips’ merchandise and options improved the lives of 1.75 billion individuals. This determine consists of 207 million individuals in underserved communities. To this finish, Philips can be teaming up with governments, NGOs and hospitals. For instance, Philips partnered with the African Union to supply medical gear and experience to assist meet the instant wants of medical practitioners and COVID-19 sufferers.
- Provide chain: Philips’ applications have improved the lives of 302,000 employees in its provide chain in 2020.
- Honest and inclusive office: Philips’ common worker engagement rating for 2020 was 79%. Philips’ worker survey persistently studies that its worker engagement is on the rise and nicely exceeding the worldwide high-performance norm of 71%. Furthermore, gender range in senior management positions was 27% by the top of 2020, exceeding Philips’ goal of 25%.
- Philips has a powerful observe document of transparency in its plans, actions and reporting. For instance, all Philips’ ESG knowledge is externally audited on the highest stage. Moreover, along with the corporate’s customary disclosures on tax contributions in its Annual Report 2020, Philips as we speak revealed its first Nation Exercise and Tax Report 2020 detailing its tax contributions for all international locations it operates in
Elevating the bar
As a part of its ongoing dedication to creating the world more healthy and extra sustainable by means of innovation, Philips will proceed to construct on the success of this system with an enhanced and totally built-in strategy to doing enterprise responsibly and sustainably. As announced final September, this new framework includes a complete set of targets, commitments and motion plans throughout all of the Environmental, Social and Governance dimensions that can drive additional development whereas performing responsibly in direction of the planet and society.
Human Rights Report
In the present day, Philips additionally revealed its newest Human Rights Report 2020, which incorporates details about the corporate’s progress with regard to figuring out and mitigating (potential) hostile human rights impacts in Philips’ personal operations and its worth chain. Furthermore, Philips issued new coverage statements on human rights, honest employment, and inclusion and variety, overlaying facets reminiscent of equal alternative, honest and equal pay, office harassment/intimidation, youngster labor, pressured labor, and dealing time directives.
Philips obtained additional recognition for its ESG efficiency: high positions within the Dow Jones Sustainability Index, and Sustainalytics rankings; eight consecutive years on the CDP Climate Change A-list; greenhouse gasoline discount targets permitted by the Science Based Targets initiative. Philips additionally achieved second place in 2020 on Wall Street Journal’s 100 Most Sustainably Managed Companies in the World.
 Inexperienced Revenues are generated by means of merchandise and options that provide a major environmental enchancment in a number of Inexperienced Focal Areas: Vitality effectivity, Packaging, Hazardous substances, Weight, Circularity, and Lifetime reliability. Inexperienced Revenues elevated to EUR 13.9 billion in 2020, or 71.0 % of gross sales (67.2% in 2019), reaching a document stage and exceeding the 2020 goal of 70%.
For additional info, please contact:
Philips International Press Workplace
Tel.: +31 6 15213446
About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a number one well being expertise firm targeted on enhancing individuals’s well being and well-being, and enabling higher outcomes throughout the well being continuum – from wholesome residing and prevention, to analysis, remedy and residential care. Philips leverages superior expertise and deep medical and shopper insights to ship built-in options. Headquartered within the Netherlands, the corporate is a frontrunner in diagnostic imaging, image-guided remedy, affected person monitoring and well being informatics, in addition to in shopper well being and residential care. Philips generated 2020 gross sales of EUR 19.5 billion and employs roughly 82,000 workers with gross sales and providers in additional than 100 international locations. Information about Philips will be discovered at www.philips.com/newscenter.