Suppliers

We hold our suppliers to the highest standards 

We assess our suppliers against industry standards formulated by the Responsible Business Alliance (RBA) and captured in the Philips Supplier Sustainability Declaration.

Beyond auditing


At Philips, we are committed to lead the change towards a more sustainable supply chain, by adopting an approach that extends beyond simply auditing compliance. To this end, we have developed the Supplier Sustainability Performance (SSP) approach, which focuses on:
 

  • Taking a systematic approach to improve the sustainability of our supply chain;
  • Driving continuous improvement and measuring impact in a structured way;
  • Promoting collaboration, with increased transparency and clear commitments,  supporting suppliers to meet agreed targets

 

In this way, the focus is on ensuring structural, proactive improvement rather than simply reacting to issues that arise, underscoring Philips’ desire to invest in relationships with suppliers who provide a safe working environment, treat workers with respect, and work in an environmentally sound way.

 

If we notice a delay in the implementation of an improvement plan, we apply a stratified approach for consequence management. In exceptional cases where a supplier is unwilling to resolve a zero tolerance or to structurally improve as agreed, we end the business relationship.

 

To prevent audit fatigue and limit the burden of additional audit preparations, Philips aims to share its SSP approach with industry peers. By providing access to a dedicated platform, others can first assess the SSP results and agreed improvement plans before initiating an audit. This eliminates the need for multiple audits and enables a stronger focus on structural improvements.

 

For more information, please contact:
suppliersustainability@philips.com

What others are saying about the SSP program

 

PI Electronics

“PI Electronics have been audited by several customers (e.g. RBA members) for more than 10 years. Participation in the SSP approach has enabled us to re-organize the company’s management system and implement control measures for timely comparison, with improvements tracked in a monthly KPI report.”

 

Foliage

“SSP mainly focuses on long-term sustainability improvement with a structural systematic approach. We recognize three key aspects: 1. a change of mindset – we as a supplier can actively work together with Philips to eliminate the risk without the concern of being punished if the issues are not closed; 2. a change of method – it is a joint-effort approach; 3. a change in effectiveness – it enhances supplier long-term competency.”

 

ELEVATE Limited

“The Philips Supplier Sustainability Performance program is an innovative ‘beyond auditing’ model that has proven to have greater impact for factories, workers and the planet. After years of social compliance auditing with limited impact, industry can learn from Philips, and companies should experiment with similar efforts to drive greater transparency, partnership and performance.”