Sustainability

Philips has a deep commitment to embedding sustainability in every aspect of our global organization and supply chain. We believe that for us to become a truly sustainable company, our suppliers must join with us in this commitment, based on a shared set of values and principles.

In 2003, we developed our Supplier Sustainability Involvement Program. A key element in this is Philips’ Supplier Declaration on Sustainability.

To ensure our suppliers comply with the principles set out in this declaration, we have embedded sustainability audits in our supply management processes.

Self-assessment and audits

Our current suppliers and all our new suppliers are asked to sign the declaration and to fill out a self-assessment tool. This allows suppliers to gain awareness of our expectations and to make an initial evaluation of their compliance to our requirements. It may be followed by on-site audits.

These audits are based on a certification process and system standardized across Philips. This includes interviews with the supplier’s management and staff, carried out during on-site factory visits by Philips’ qualified assessors or third-party auditors.

Suppliers conform to our sustainability criteria when no major areas of non-compliance are found and when their approach to – and deployment of – sustainability management are in line with our expectations.