We are at the beginning of transitioning from managing sustainability in our supply chain from a risk perspective (e.g. based on risk-countries), by auditing a supplier’s compliance to our Philips Supplier Sustainability Declaration (SSD), towards a collaborative approach that ensures structural sustainable improvements.
Most important aspects of our new approach, Supplier Sustainability Performance (SSP), are based upon supplier commitment and willingness to be honest and transparent regarding their performance.
We include stakeholders beyond suppliers themselves, and involve local authorities and NGO’s in our collaboration. We want to raise awareness at our suppliers about running a sustainable business combined with regular and structural support at their sites them with training and development programs. Our innovative sustainable supply chain management approach is defined in five key programs that cover performance, compliance, circular procurement, management of environmental footprint in China and responsible sourcing to ensure that the metals used in Philips products are conflict-free.