Dec 08, 2020

Philips again recognized for its commitment to action on climate change

Philips achieves CDP ‘A List’ rating for the eighth consecutive year for its action on climate change, with strong commitments and performance on cutting greenhouse gas emissions, mitigating climate risks and developing the low-carbon economy

Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today announced that global not-for-profit charity CDP has once again recognized Philips for its corporate leadership on environmental performance and transparency. Recognized for its actions to cut emissions, mitigate climate risks and develop the low-carbon economy, Philips has secured a place on CDP’s prestigious ‘A List’ for tackling climate change for the eighth consecutive year.

CDP is a global not-for-profit charity that ‘supports companies, cities, states and regions to measure and manage their risks and opportunities on climate change, water security and deforestation’[1]. Its annual environmental disclosure and scoring process is widely considered the gold standard of corporate environmental transparency. CDP’s scoring methodology assesses companies on the comprehensiveness of their disclosure, awareness and management of environmental risks and demonstration of best practices associated with environmental leadership, such as setting ambitious and meaningful targets.

As a purpose-led innovation company, we have made sustainability a cornerstone of how we innovate and how we do business.

Frans van Houten

CEO of Royal Philips

“As a purpose-led innovation company, we have made sustainability a cornerstone of how we innovate and how we do business,” said Frans van Houten, CEO of Royal Philips. “Thanks to the creativity, inspiration and determination of our 80,000+ employees, we are united in our ambition to deliver meaningful innovation to make the world healthier and more sustainable. I am proud that our commitment to action on climate change has once again been recognized with a place on CDP’s A-List.”

Philips is currently completing its ‘Healthy people, Sustainable planet’ 2016 - 2020 program, and is set to achieve all of the program’s ambitious targets by the end of the year. These include becoming carbon neutral in its own operations and generating 15% of its sales from circular economy solutions. To further build on these achievements, Philips launched a new framework for doing business responsibly and sustainably comprising a comprehensive set of targets and commitments across the Environmental, Social and Corporate Governance (ESG) dimensions. The scope of its environmental pledges includes commitments to source 75% of its total energy consumption (including fuel) from renewable sources, increase its circular economy revenues to 25% of sales, and send zero waste to landfill by 2025. Philips will also work with its suppliers to reduce the environmental footprint of its entire supply chain in line with the Paris Agreement 1.5^oC global warming scenario.

Philips’ track record of doing business responsibly and sustainably has not gone unnoticed. For example, the company has a top position in the Sustainalytics rankings and was awarded second place in the Wall Street Journal’s 100 Most Sustainably Managed Companies in the World. Recently, Philips was once again recognized as a leading company for sustainability performance in the global 2020 Dow Jones Sustainability Indices list.

[1] https://www.cdp.net/en/info/about-us/what-we-do

About Royal Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people's health and well-being, and enabling better outcomes across the health continuum – from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips generated 2019 sales of EUR 19.5 billion and employs approximately 81,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.