Through our partnership with the CDP supply chain program, Philips motivates its suppliers to disclose emissions, embed board responsibility on climate change, and actively work on reduction activities.
Through our partnership with the CDP Supply Chain program since 2011, we have invited many of our largest suppliers, including first-tier manufacturing and transportation-related suppliers, to disclose their environmental performance and carbon intensity. In 2020, there was a response rate of 92% (2019: 80%). From this group, 61% engaged in emission reduction initiatives (2019: 66%). In addition, 61% committed to carbon emission targets (2019: 59%). Furthermore, 43% of the responding suppliers have set science-based targets of which 31% has been formally approved.
We also use CDP to work together with suppliers in reducing carbon emissions along our supply chain. Through the CDP Action Exchange program, our suppliers are connected to globally recognized solution providers in energy-efficient technology. The energy efficiency experts can help our suppliers in their search for innovative solutions to reduce future carbon emissions. In 2020, our suppliers undertook projects that resulted in savings on carbon emissions amounting to 17 million metric tonnes CO2.
As part of 2020 adoption of our new ESG commitments, we have set the target to actively engage 80% of our supply base to:
1. disclose scope 1 and 2 carbon emissions annually,
2. implement de-carbonization strategies in line with the 2015 Paris Agreement.