Becoming carbon-neutral in our operations by 2020

At Philips, we see climate change as a serious threat. One that is expected to cause some 250,000 additional deaths per year globally. Therefore we have to take action to rethink our business models and decouple economic growth from the impact we have on the environment. This will not only benefit the environment, but will positively impact social and economic aspects as well.

Carbon performance
Carbon reduction targets
Towards 100% renewable electricity
Carbon offsetting

Carbon performance

As part of our drive to make the world healthier and more sustainable through innovation, we have already made significant advances in minimizing our impact on the environment. We’ve reduced our operational carbon footprint, including emissions from our sites, business travel and logistics, by over 40% since 2007. And we are on track to become carbon-neutral in our operations by the end of 2020.

Operational carbon footprint in kilotonnes CO₂e

Carbon reduction across the value chain

Philips has set new long-term CO₂ emission targets assessed and approved by the Science Based Targets initiative (SBTi) – a collaboration between the CDP, the United Nations Global Compact (UNGC), the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) aimed at driving ambitious corporate climate action across the value chain. The approval confirms that Philips’ targets across our value chain are in line to limit global warming to below 1.5 °C.

Towards 75% renewable energy by 2025

From 2020 onwards, all of Philips’ sites will be powered by 100% renewable electricity sources. Most of that electricity comes from projects we helped create, such as the Los Mirasoles windpark in the US and the Krammer and Bouwdokken windfarms in the Netherlands. For the latter Philips closed long-term contracts through its renewable electricity purchasing consortium with Nouryon, DSM and Google. Both long-term projects are now powering all of our US-and Netherlands-based operations with renewable electricity. To reach 100% renewable electricity usage globally, we purchase renewable electricity within the markets or via local utility companies.

We are also committed to sourcing over 75% of our total energy consumption from renewable sources by 2025.

Carbon offsetting

Although reduction is key to carbon neutrality, unavoidable carbon emissions require offsetting in order to gradually drive down our emissions to zero.

We do this by financing projects in emerging regions that have a strong link with health and wellbeing (UN Sustainable Development Goal 3) and sustainable consumption (UN Sustainable Development Goal 12

To compensate our residual carbon emissions, Philips has forged a partnership with EcoAct, an internationally recognized group of experts founded in 2005, which supports Philips in meeting our carbon neutrality commitment.

Philips is financing several carbon emission reduction projects to gradually drive down our emissions to zero. We have selected projects in emerging regions that, as well as generating emission reductions, also drive social, economic and additional environmental benefits for the communities in which they are rolled out.

In 2017, we kicked off by compensating 220 metric kilotons of carbon emissions. In 2019, we increased this to 440 kilotonnes, equivalent to the annual uptake of approximately 13 million medium-sized oak trees. This covers the sum total of the direct emissions from our sites, all our business travel emissions, and all our ocean, road and parcel shipments within logistics.