Philips increases Green Revenues to EUR 10.2 billion, 58% of HealthTech revenues in 2016

February 21, 2017

Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHI) today reported further progress in its sustainability performance in 2016 with Green Revenues increasing to EUR 10.2 billion, now representing 58% of HealthTech revenues [1]. 

 

In recognition of the company’s sustainability achievements, Philips was named industry group leader in the Capital Goods category, in the 2016 Dow Jones Sustainability Index, achieving the highest possible scores in three sections, including climate strategy and operational eco-efficiency.

 

As a further highlight, Philips launched its new 5-year sustainability program, ‘Healthy people, sustainable planet’, taking the next steps toward the goal of improving the lives of 3 billion people a year by 2025 [2] by making the world healthier and more sustainable through innovation. Philips took important steps towards becoming carbon neutral in its own operations by signing a multi-year contract for the purchase of green electricity from the Bouwdokken Wind Park in Zeeland, the Netherlands, and as of January 2017, powering all of its US operations through the Los Mirasoles windfarm. 

 

At the World Economic Forum in January 2017, Philips signed the Compact for Responsive and Responsible Leadership, an initiative to promote and align the long-term sustainability of corporations and the long-term goals of society, with an inclusive approach for all stakeholders.

 

“Sustainability is an integral part of how we do business, and our performance in 2016 is proof of that commitment”, said Frans van Houten, CEO of Royal Philips. “As a focused health technology company, Philips aims to play an instrumental role in driving more inclusive healthcare for all, while respecting natural resource limitations and taking a circular economy approach. In 2016, we improved the lives of billions of people around the world, and I am proud that we are addressing some of the world’s most pressing challenges by contributing to the UN Sustainable Development Goals.’ 

 

On UN SDG 3 ‘Good health and well-being’, Philips is utilizing mobile and connected technologies to strengthen primary healthcare and enable community development. This includes the Philips Community Life Centre Approach in Africa as well as Mobile Obstetric Monitoring, a smartphone-based telehealth solution for midwives to monitor at-risk pregnant women in Indonesia.

 

For the Philips Group, including Philips Lighting, Green Revenues increased by 6% to EUR 15.7 billion, representing approximately 64% of total revenues. In 2016, the combined investments in Green Innovation amounted to EUR 558 million and the Group further reduced its carbon footprint. All these activities contribute to UN SDG 12 ‘Responsible Consumption and Production’. 

 

The Philips 2016 sustainability update is an integral part of the Philips 2016 Annual Report.

 

[1] Green Revenues are revenues generated through products or solutions that offer a significant environmental improvement in one or more Green Focal Areas: Energy efficiency, Packaging, Hazardous substances, Weight, Circularity and Lifetime reliability. The lifecycle approach is used to determine a product’s overall environmental improvement. It calculates the environmental impact of a product over its total life cycle (raw materials, manufacturing, product use and disposal).

 

[2] Market intelligence and statistical data are used for the number of people touched by our solutions that contribute to a healthy life or a sustainable planet. The average time these solutions are used is then multiplied by the number of solutions delivered in a year. After elimination of double counts, this results in the number of lives improved.

For further information, please contact:

Ben Zwirs

Philips Group Press Office

Tel: +31 6 1521 3446

Email: ben.zwirs@philips.com

 

Ksenija Gonciarenko

Philips Investor Relations

Tel: +31 6 31914905

Email: ksenija.gonciarenko@philips.com

About Royal Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people's health 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' health technology portfolio generated 2016 sales of EUR 17.4 billion and employs approximately 71,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.