Philips meets its ‘Healthy people, Sustainable planet’ targets and forges ahead with integrated ESG framework
February 23 2021 - 4:00AM
Philips meets its ‘Healthy people, Sustainable planet’ targets and
forges ahead with integrated ESG framework
February 23, 2021
- Philips is one of the first health technology companies in the
world that has become fully carbon neutral in its operations
- New integrated Environmental, Social and Governance framework
with targets and action plans builds on current success to raise
the bar for the company’s ESG performance over the next five
years
Amsterdam, the Netherlands – Royal Philips
(NYSE: PHG, AEX: PHIA), a global leader in health technology, today
announced that it successfully met all the targets set out in its
2016 - 2020 ‘Healthy people, Sustainable planet’ program. Key
achievements of the program include carbon neutrality in its
operations, 100% electricity from renewable sources, over 70% of
sales from Green Products and Services [1], 15% of sales coming
from circular revenues, recycling 90% of its operational waste, and
sending zero waste to landfill.
“I am pleased that we have delivered on all the targets set out
in our Healthy people, Sustainable planet program, making Philips
one of the first health technology companies in the world that has
become carbon neutral in its operations,” said Frans van Houten,
CEO of Royal Philips. “Our current integrated ESG framework builds
on this success, and we are determined to join forces with all
necessary stakeholders, public and private, to drive environmental,
social and governance priorities and generate global impact. With
the COVID-19 pandemic and climate change exposing the risks in
terms of people’s health and access to quality healthcare, we are
committed to building inclusive and resilient healthcare systems,
while reducing our dependency on natural resources.”
Philips’ Environmental, Social and Governance update is an
integral part of the Philips Annual Report 2020, which was
published earlier today. Highlights include:
Environmental:
- Renewable energy sources: Through consortium-led virtual Power
Purchase Agreements, Philips is securing renewable electricity
supply to power its European operations.
- Circular economy: Philips plays a leading role in the Platform
for Accelerating the Circular Economy (PACE), setting global Action
Agendas and driving change to embed circular thinking and ways of
working. As part of its commitment to the World Economic Forum
(WEF) Capital Equipment pledge, Philips has delivered on its
commitment to close the loop for large medical systems equipment by
offering a trade-in for all deals that the company won around the
globe, repurposing/recycling components and materials in a
responsible way to improve more lives without further depleting the
world’s natural resources.
- Supply chain: Philips works with suppliers to further reduce
their carbon emissions by supporting capability building and
contributing to transparency and efficiency in the supply chain.
This approach has improved the sustainability performance of
suppliers that entered the program in 2019 by 36% compared to last
year.
Social:
- Lives improved: In 2020, Philips’ products and solutions
improved the lives of 1.75 billion people. This figure includes 207
million people in underserved communities. To this end, Philips is
also teaming up with governments, NGOs and hospitals. For example,
Philips partnered with the African Union to provide medical
equipment and expertise to help meet the immediate needs of medical
practitioners and COVID-19 patients.
- Supply chain: Philips’ programs have improved the lives of
302,000 workers in its supply chain in 2020.
- Fair and inclusive workplace: Philips’ average employee
engagement score for 2020 was 79%. Philips’ employee survey
consistently reports that its employee engagement is on the rise
and well exceeding the global high-performance norm of 71%.
Moreover, gender diversity in senior leadership positions was 27%
by the end of 2020, exceeding Philips’ target of 25%.
Governance:
- Philips has a strong track record of transparency in its plans,
actions and reporting. For example, all Philips’ ESG data is
externally audited at the highest level. Furthermore, in addition
to the company’s customary disclosures on tax contributions in its
Annual Report 2020, Philips today published its first Country
Activity and Tax Report 2020 detailing its tax contributions for
all countries it operates in
Raising the barAs part of its ongoing
commitment to making the world healthier and more sustainable
through innovation, Philips will continue to build on the success
of the program with an enhanced and fully integrated approach to
doing business responsibly and sustainably. As announced last
September, this new framework comprises a comprehensive set of
targets, commitments and action plans across all the Environmental,
Social and Governance dimensions that will drive further growth
while acting responsibly towards the planet and society.
Human Rights ReportToday, Philips also
published its latest Human Rights Report 2020, which contains
information about the company’s progress with regard to identifying
and mitigating (potential) adverse human rights impacts in Philips’
own operations and its value chain. Moreover, Philips issued new
policy statements on human rights, fair employment, and inclusion
and diversity, covering aspects such as equal opportunity, fair and
equal pay, workplace harassment/intimidation, child labor, forced
labor, and working time directives.
Global recognitionPhilips received further
recognition for its ESG performance: top positions in the Dow Jones
Sustainability Index, and Sustainalytics rankings; eight
consecutive years on the CDP Climate Change A-list; greenhouse gas
reduction targets approved by the Science Based Targets initiative.
Philips also achieved second place in 2020 on Wall Street Journal’s
100 Most Sustainably Managed Companies in the World.
[1] Green Revenues are generated through products and solutions
that offer a significant environmental improvement in one or more
Green Focal Areas: Energy efficiency, Packaging, Hazardous
substances, Weight, Circularity, and Lifetime reliability. Green
Revenues increased to EUR 13.9 billion in 2020, or 71.0 % of sales
(67.2% in 2019), reaching a record level and exceeding the 2020
target of 70%.
For further information, please contact:
Ben ZwirsPhilips Global Press OfficeTel.: +31 6 15213446E-mail:
ben.zwirs@philips.com
About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health
technology company focused on improving people's health and
well-being, and enabling better outcomes across the health
continuum – from healthy living and prevention, to diagnosis,
treatment and home care. Philips leverages advanced technology and
deep clinical and consumer insights to deliver integrated
solutions. Headquartered in the Netherlands, the company is a
leader in diagnostic imaging, image-guided therapy, patient
monitoring and health informatics, as well as in consumer health
and home care. Philips generated 2020 sales of EUR 19.5 billion and
employs approximately 82,000 employees with sales and services in
more than 100 countries. News about Philips can be found at
www.philips.com/newscenter.
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