We are embracing circular procurement as a key driver of the circular economy

Procurement has a major role to play in the transition towards a circular economy. Circular procurement is all about making the right choices early on in the product creation process, so that materials and components are suitable, at end-of-life, for repair or refurbishment and re-use, thus helping to close the materials loop.
Circular procurement adds value in other ways too. For instance, by extending and intensifying long-term business relationships with suppliers and customers. And by promoting innovative performance- or usage-based business models that focus on access to services and products rather than ownership.
We are currently involved in a number of circular procurement pilot projects. In 2014, Philips joined Dutch GreenDeal Circular Procurement, which is facilitated by organizations such as MVO Nederland, NEVI, and the Dutch Government. Its goal is to accelerate the transition towards a circular economy by implementing circular procurement within purchasing processes, policies and strategy by the end of 2016.