Health technology leader Philips on track with its Environmental, Social, and Governance commitments
February 22 2022 - 4:00AM
Health technology leader Philips on track with its Environmental,
Social, and Governance commitments
February 22, 2022
- 1.7 billion lives improved by Philips’ health technology
products, services and solutions
- Circular revenues already at 16% of sales, driven by healthcare
informatics and services to enhance medical equipment uptime and
utilization, system and software upgrades for enhanced
functionality and extended lifetime and reusing refurbished parts
and systems
- Continued carbon-neutrality in its own operations and
supporting supply chain partners to decarbonize
- Publication of Philips Human Rights Report 2021 and Country
Activity and Tax Report 2021 detailing its tax contributions for
all countries it operates in
Amsterdam, the Netherlands – Royal Philips
(NYSE: PHG, AEX: PHIA), a global leader in health technology, today
provided an update on its key Environmental, Social, and Governance
(ESG) achievements in 2021 as it continues to deliver innovative
health technology solutions around the world. These 2021 ESG
achievements include 1.7 billion lives improved by Philips’
healthcare and personal health products, services and solutions,
16% of sales derived from circular revenues, and continued carbon
neutrality in its own operations.
“Inspired by our purpose to improve people’s health and
well-being, we innovate solutions that deliver meaningful impact,
while doing business responsibly and sustainably,” said Frans van
Houten, CEO of Royal Philips. “I am proud that we again delivered
on our ESG commitments, such as reaching 1.7 billion people with
our products, services and solutions in 2021, including 167 million
in underserved communities. Driven by the creativity and hard work
of our global workforce, we will continue to raise the bar for
ourselves and our partners across our entire value chain.”
Philips’ Environmental, Social, and Governance update is an
integral part of the Philips Annual Report 2021, which was
published earlier today. Highlights include:
Environmental:
- Circular revenues accounted for 16% of sales in 2021, driven by
healthcare informatics and services to enhance medical equipment
uptime and utilization, system and software upgrades for enhanced
functionality and extended lifetime, reusing refurbished parts and
systems, as well as product rental models and operational leases.
As part of Philips’ ambition to close the loop for all professional
equipment by 2025, over 3,000 systems were returned to the company
for responsible recycling/repurposing. In addition, Philips further
reduced the amount of waste produced in its sites, realizing a 29%
waste reduction compared to 2020. Of the waste that was produced,
87% was repurposed.
- While already carbon neutral in its own operations, Philips
further reduced its remaining site-related CO2 emissions by 12% in
2021 by installing solar panels and making its buildings more
energy efficient. The company also continued to shift to low carbon
transport modes, reducing its aviation-related emissions by
instigating a stricter air freight policy, optimizing its warehouse
locations, and electrifying its leased vehicle fleet.
- Philips stepped up its supplier sustainability program with the
aim of at least 50% of its suppliers (based on spend) committing to
science-based targets (SBTs) for CO₂ emissions reduction by 2025.
This major push to decarbonize its supply chain will have a
potential impact seven times greater than the reduction of CO₂
emissions from Philips’ own operations. In 2021, 28% of Philips’
purchases were made at suppliers that have committed to
science-based CO₂ reduction targets. Philips’ supplier engagement
actions on climate change were recognized by CDP, the
not-for-profit environmental impact disclosure organization, for
the fifth year in a row in 2021.
Social:
- Philips reached 1.7 billion people with its products and
services in 2021, of which 167 million in underserved communities
(which the Philips Foundation contributed to), taking the company
closer to its goal of improving 2 billion lives per year by 2025
with 300 million in underserved communities.
- As part of its ESG commitments, Philips aims to improve the
lives of 1 million workers in its supply chain by 2025. The number
of employees positively impacted at suppliers participating in
Philips’ Supplier Sustainability Program increased to approximately
430,000 in 2021.
- Philips’ average employee engagement score remained high at
79%, exceeding the Fortune 500 benchmark. Philips was awarded a top
spot on the Forbes ‘America’s Best Employers of 2021’ list, ranking
135 among the top 500 large companies in America based on an
independent survey of employees.
- Philips raised its commitment of gender diversity in senior
leadership positions to 35% by the end of 2025, from its original
commitment of 30%. In 2021, the percentage of females in senior
leadership positions increased to 28%.
Governance:
- All of Philips’ ESG data is externally audited at the highest
level, building on Philips’ strong track record of transparency in
its ESG plans, actions, and reporting. Philips won the annual Dutch
Kristal Prize 2021 for its transparency in reporting, specifically
regarding climate related matters.
- For the second year, Philips published its Country Activity and
Tax Report 2021 detailing its tax contributions for all countries
it operates in.
- To mark 2021 United Nations Human Rights Day, Philips published
the Philips Human Rights Report 2021 - an update on Philips’
progress in addressing key human rights over the past year, along
with the company’s plans for continuous improvement.
More information about how Philips is partnering with
stakeholders to drive environmental, social, and governance
priorities and make a global impact is available here.
For further information, please contact:
Ben ZwirsPhilips Global Press OfficeTel.: +31 6 15213446E-mail:
ben.zwirs@philips.com
Joost MalthaPhilips Global Press OfficeTel: +31 6 10558116Email:
joost.maltha@philips.com
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 2021 sales of EUR 17.2 billion and
employs approximately 78,000 employees with sales and services in
more than 100 countries. News about Philips can be found at
www.philips.com/newscenter.
- Philips Lumify being used on a pregnant woman
- Reuse and refurbishment of returned equipment
- Solar panels
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