Philips reinforces its leadership as a purpose-driven company with an enhanced and fully integrated approach to doing business responsibly and sustainably
September 14, 2020On track to fully achieve all the targets of ithilips reinforces its leadership as a purpose-driven company with an enhanced and fully integrated approach to doing business responsibly and sustainabs pioneering ‘Healthy people, Sustainable planet’ 2016 – 2020 program, Philips steps up further and makes ambitious Environmental, Social and Corporate Governance (ESG) commitments for 2025Environmental: Philips commits to 100% EcoDesign, increased energy efficiency, expanded renewable energy sourcing, and circular economy solutions – targeting Paris Agreement 1.5 oC global warming limitSocial: Philips commits to improving the lives of 2 billion people a year by 2025 [1] through its innovations, including 300 million people in underserved communitiesGovernance: Philips will ensure transparency regarding its tax contribution for all countries it operates inAmsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today 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.“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.”Social: Improving health & well-being and inclusivity and diversity in the workplace
Philips aims to improve the health and well-being of 2 billion people per year by 2025 [1] through innovation, and partnering with private and public organizations, including the Philips Foundation. Lack of access to affordable, quality care is one of the most pressing issues of this time. COVID-19 has only intensified the situation, overwhelming health systems around the world. As part of its overall 2 billion lives improved commitment, Philips aims to expand access to care for 300 million people in underserved communities.Working together with its suppliers through its Supplier Sustainability Performance Program, which uses artificial intelligence to measure and predict sustainability performance and improvements, Philips is also committed to improving the lives of 1 million workers in its supply chain by 2025.“Philips wants to be the best place to work for people who share our passion,” said Frans van Houten. “This is why we foster continuous learning and personal development, as well as an inclusive culture where people are valued and accepted for their uniqueness, and where everyone can be their best. We will progress building an employee base with a rich diversity of people and perspectives because it is an important driver of innovation and performance.”At Philips, employees are empowered to drive their own career through education, mentoring and employee networking programs. Employees have access to digital tools for self-development in order to grow and progress their careers. Driving Inclusion & Diversity, Philips has set a new goal of 30% gender diversity in senior leadership positions by the end of 2025, up from the 2020 target of 25% that it expects to meet before the end of this year. A company-wide training on unconscious bias awareness is part of the program to build and foster an inclusive environment.Governance: Transparency on tax contributions
Philips has a strong track record of transparency in its plans, actions and reporting. For example, its CO2 emission-reduction targets are approved by the Science Based Targets initiative (SBTi), and its ‘Lives Improved’ performance metric is externally audited. Philips also engages transparently with shareholders, customers, business partners, governments and regulators, and delivers high-quality products and services that comply with all applicable laws and standards.In addition to the company’s customary disclosures on tax contributions that will be made in the Annual Report 2020, Philips will publish a supplemental financial report for 2020, which will include the tax contributions for all countries Philips operates in. This is in line with Philips’ commitment to transparency, and the company’s view that these tax contributions are social value contributions to the local communities.[1] In connection with Philips’ planned divestiture of its Domestic Appliances business, the company will no longer include the contribution of the Domestic Appliances portfolio in its ‘Lives Improved’ reporting. As a result Philips commits to improving the lives of 2 billion people a year by 2025, and the lives of 2.5 billion people by 2030.
[2] Today, Philips generates 66% of its sales from green products and services, with 13% from circular economy solutions. Over 95% of its worldwide operations are currently powered by renewable electricity. Moreover, 85% of all operational waste is being recycled, and 67% of Philips’ industrial sites sent zero waste to landfill. Most recently, Philips North America achieved ‘zero waste to landfill’ status for its manufacturing sites. For more information: www.results.philips.com.For further information, please contact:Joost Maltha
Philips Global Press Office
Tel.: +31 6 10 55 81 16
E-mail: joost.maltha@philips.comSteve Klink
Philips Global Press Office
Tel.: +31 6 10 88 88 24
E-mail: steve.klink@philips.comAbout Royal Philips
