Carbon disclosure
Philips not only reports its climate performance to CDP (formerly known as the Carbon Disclosure Project) but also motivates its suppliers to disclose and reduce their carbon footprint.
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 2019, there was a response rate of 84% (2018: 77%). From this group, 84% committed to carbon emission reduction initiatives, 59% committed to carbon emission targets and 37% have set science-based targets.
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 2019, our suppliers undertook projects that resulted in savings on carbon emissions amounting to 62 (2018: 40) million metric tonnes CO2.
In the next step, we will expand our partnership with CDP beyond carbon emissions. In 2020, we will request parts of our supply base to respond to the CDP water program.