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: