Healthy people,
sustainable planet

 

Our ambition for 2020

Sustainability is at the core of our company’s vision
Program and targets 2016 - 2020

 

Our new program that will run throughout 2016-2020 reflects our mission to improve lives of billions by making the world healthier and more sustainable through innovation. We are setting out ambitious targets for the company’s solutions, operations and supply chain.

"At Philips, we fully embrace sustainability because of the benefits for societies, and because we believe that it is a driver for economic growth. That’s why we have sustainability incorporated in our company strategy."


Frans van Houten, CEO.

In 2012 we set ourselves an ambitious target to improve the lives of three billion people a year by 2025 by making the world healthier and more sustainable through innovation. Since then, we have been concentrating our minds, shaping our strategy and rallying our teams to improve lives. We’re on track: by the end of 2015, we calculated that we have improved two billion lives - that's one in every four people!

 

As part of society, all of us – including companies – have an obligation to contribute to the positive state of the world. That is why we at Philips have committed to support UN Sustainable Development Goals, specifically SDG 3 to ensure healthy lives and promote well-being and SDG 12 to enable sustainable consumption and production patterns. Meanwhile, the Philips Foundation continues to create tools and run projects that improve the lives of the world’s most disadvantaged peoples and communities.

Our approach on ‘Healthy people, sustainable planet’

 

The world is changing.

Global populations are aging; there’s a rise in chronic conditions such as diabetes and heart disease. At the same time, conventional health systems are frequently being characterized as expensive and unsustainable. All this at a time when we know the vital importance quality healthcare plays in the health of a nation and a consequent impact on sustainable economic vitality! This is an industry where change is essential.

 

The decisions we make collectively today to address the developments in economic, health and climate change conditions, will determine the pathways for sustainable, healthy and prosperous lives for all of us in the future.

 

As a health technology company, Philips aspires to be a leading private sector player by creating sustainable value by delivering better health at lower cost and making access to care available.

We see the following four macro trends shaping the future of our industry:

 

  • Rising middle class and aging populations
  • Prevalence of chronic conditions
  • Data revolution
  • Global resource constraints and climate change

To maximize our impact, we have developed our sustainability program based on two dimensions:

 

  • Social dimension: increasing societal benefits and move people to the right side on the Human Development Axis - enabling more healthy people
  • Ecological dimension: reducing environmental impact and maintain the resources of our planet - enabling a sustainable planet

 

That is why we give our program the name: Healthy people, sustainable planet.

Our program and targets for sustainable solutions, operations and supply chain

The strategy and tactics to implement this new 5-year sustainability program have been built on three pillars: creating value for our customers through solutions, leading by example in our operations and multiplying our impact by driving our ambitions in the supply chain.

Solutions

Philips takes a holistic approach to health. We want to cover the full range of consumer and patient needs, from living healthily, to being diagnosed and treated for an illness, to recovery or chronic care at home. We do this by looking across what we call the health continuum. Philips applies EcoDesign and circular economy principles in designing the solutions. We continuously develop new business models and ways of working with our customers to deliver better health at lower cost and use resources in the most effective way.

We apply the health continuum approach to guide our solutions
We apply eco design and circular economy opportunities in our solutions

Operations

The health and safety of our employees is a top priority. We strive for an injury-free, illness-free work environment, with an emphasis o an injury-prevention mindset. Philips supports all its employees in driving their development in their careers through internal training programs.We foster diversity and inclusion in the workplace.


What’s more, we firmly believe that being an inspiring employer is also about facilitating our employees to support their local communities by lending their specific knowledge and experience, energy and time.

Philips has committed to carbon neutrality for its global operations by 2020. To reduce to zero, we’ll drive down carbon emissions in operations, logistics, and business travel by becoming more energy efficient. We’ll purchase our energy from renewable sources and compensate remaining emissions via carbon credits. In addition, we’ll recycle 90% of operational waste and aim to send zero waste to landfill.

Supply chain
We are at the beginning of transitioning from managing sustainability in our supply chain from a risk perspective (e.g. based on risk-countries), by auditing a supplier’s compliance to our Philips Supplier Sustainability Declaration (SSD), towards a collaborative approach that ensures structural sustainable improvements.


Most important aspects of our new approach, Supplier Sustainability Performance (SSP), are based upon supplier commitment and willingness to be honest and transparent regarding their performance.


We include stakeholders beyond suppliers themselves, and involve local authorities and NGO’s in our collaboration. We want to raise awareness at our suppliers about running a sustainable business combined with regular and structural support at their sites them with training and development programs. Our innovative sustainable supply chain management approach is defined in five key programs that cover performance, compliance, circular procurement, management of environmental footprint in China and responsible sourcing to ensure that the metals used in Philips products are conflict-free.

An overview of our most ambitious objectives for 2020
 

  • Improve the lives of 2.5 billion people a year
  • To have 70% of our turnover coming from solutions that meet EcoDesign principles and 15% Circular economy principles
  • Be carbon neutral in our operations, employing 100% renewable electricity
  • Recycle 90% of operational waste recycled and send zero waste to landfill
  • Collaborative approach with our suppliers to ensure structural sustainable improvements along the chain

Of course, we realize that this will not be easy. There will be challenges and it will be a long journey. In order to deliver on these commitments, we will need to collaborate with our business partners, NGOs and all other stakeholders… including you.