Green logistics

Our expanding company footprint and globalization of sourcing strategies have increased distances over which goods have to be transported. To combat what would have meant an increase in emissions from logistics had we not taken action, we applied a multi-facet approach.

First of all, we focus on reducing the need of transportation movements. This has been accomplished via a number of different means, including logistic network redesign, co-loading, and consolidation of goods and equipment to increase loading degree.


Secondly we drive modal shifts where possible. The environmental impact of airfreighting goods from Asia to Western Europe is about 34 times greater than transporting it by ocean. Stage-gate processes have successfully been implemented requiring higher management approval before a decision can be taken to transport products by airplane. Also intermediary solutions are considered. For example recently Philips has implemented transport by rail from inland China to Russian end-customers when changing circumstances meant ocean transport was no longer feasible. Also multimodal approaches to deliver heavy bulky healthcare equipment to remote locations are a great success. Previously, charter planes were used to transport MRI machines from large international airport hubs to the final remote location, due to the equipment’s sensitivity to conditions during ocean transport. Innovative packaging involving aluminum foil and sealing agents now protect our MRI products against these conditions enabling the last leg of the transport to take place via ocean, preventing the use of costly and environment unfriendly use of charter planes.

Last but not least we work with partner organizations to identify the most environmentally friendly logistics providers and engage them on taking actions to reduce their climate change impact. For example we are members of Green Freight Europe and the Clean Shipping Index. Also, on November 1st 2015, we signed a Carbon Pact with Maersk Line, one of our strategic logistical partners, to reduce Philips' CO2 emissions per container moved with Maersk Line by 20% from 2016 - 2020.

Kilotonnes of COe

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