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Amsterdam, February 20, 2024 – Royal Philips, a leading health technology company, today published its annual environmental, social and governance (ESG) performance report for 2023. Through its innovative products and services, Philips improved the health and well-being of 1.88 billion people, of whom 221 million live in underserved communities, bringing the company closer to its goal of improving 2 billion lives a year by 2025. Additionally, Philips innovated with its partners to increase access to sustainable healthcare around the world and continued to increase its circular economy revenues while reducing its own and value chain carbon emissions.
Marnix van Ginneken, Chief Legal and ESG Officer at Royal Philips, said: “Building on our strong tradition of environmental and social responsibility, we have a fully integrated approach to doing business responsibly and sustainably, in line with the purpose of our company. “I am convinced that our ESG commitments are the best way for Philips to drive global impact priorities and create long-term value for our stakeholders.”
“We are proud of the progress we have made towards our goal of improving 2 billion lives a year by 2025, meeting our low-carbon commitments and expanding our portfolio of EcoDesign products and systems. “We remain focused on driving further improvements in line with our commitments for 2025,” added Van Ginneken.
Towards better care for more people and in a sustainable way
Today, millions of people around the world have little or no access to basic healthcare, and climate change is affecting both environmental and human health. Together with partners, Philips is developing an AI-powered ultrasound solution that aims to address healthcare workforce shortages by putting a diagnostic tool previously reserved for expert technicians in the hands of midwives and expanding access to maternal care in communities. neglected rural areas of Kenya.
Philips is also developing new technology-based business models to improve access to healthcare. One example is the mobile CT trucks that Philips has deployed in underserved Australian and North American communities. This innovation offers a global model to ensure timely lung screening that saves lives.
Philips supports the creation of sustainable and resilient healthcare systems through partnerships and collaborations, as well as through its industry-leading portfolio of sustainability innovations. These include energy-efficient MRI scanners that operate without helium and the Philips Radiology Operations Command Center, which enables real-time collaboration and virtual imaging operations and can reduce the time and costs associated with displacement of expert personnel.
Additionally, in 2023 Philips partnered with Portugal's Champalimaud Foundation to halve its carbon footprint in diagnostics and interventional imaging by 2028. And Philips and Vanderbilt University Medical Center are investigating how to decarbonize the radiology department at this health system. Initial results from these collaborations demonstrate that sustainable initiatives can be both environmentally friendly and profitable.
Diversity and inclusion
Philips has a diverse team of approximately 70,000 people in more than 100 countries, all with different backgrounds, perspectives and experiences. The company places great importance on creating an inclusive environment that ensures creativity and innovation flourish. For example, when it comes to gender diversity, Philips achieved 31% representation of women in senior management in 2023. External recognitions it received in 2023 include Forbes Best Employers for Women and Forbes Best Employers for Diversity.
Towards low-emission operations and value chain
In 2023 Philips expanded its circular revenue to 20% of sales and, in addition to maintaining carbon neutrality in its operations since 2020, achieved 78% renewable energy use, exceeding its science-based target of 75% by 2025. The supply of renewable electricity from the new Mutkalampi wind farm in Finland and the new Pontinia solar power generation park in Italy contributed to this. In December 2023, Philips signed its first direct renewable energy agreement in China.
Philips also maintained the circularity of its waste stream at 91% (against a target of 95% by 2025) and retained its Zero Waste to Landfill status, with all 23 industrial sites meeting this target by the end of 2023.
In 2022, Philips became the first healthcare technology company to approve the Science Based Targets Initiative (SBTi) for its CO₂ emissions reduction targets across the entire value chain, including Scope 1-3, and already 46% of their purchases (in spend) were made from suppliers who have committed to science-based reduction goals. Philips' goal is to reach 50% by 2025.
Global leadership and governance standards
Philips is among the top three healthcare technology companies on the 2023 Dow Jones Sustainability Indices Global List. CDP, an international NGO formerly known as the Carbon Disclosure Project that assesses the performance and management of greenhouse gas emissions of reporting companies, has named Philips to the climate change “A” list for the 11th consecutive year. , citing its continued performance and transparency on climate matters.
Philips is committed to transparency and accountability, and pioneers its corporate governance practices aligned with global standards and best practices. For example, Philips' 2023 Human Rights Report outlines the progress the company has made in upholding human rights, while its National Activity and Taxes Report illustrates how the company views its tax payments as making a significant contribution to communities in which it operates, and an integral part of its social value creation. In addition, Philips has already improved reporting on Scope 1-3 emissions in its 2023 Annual Report, preparing for the new European Union Corporate Sustainability Reporting Directive (CSRD), which will be mandatory from 2024.
Chapters 5 and 12 of Philips' Annual Report 2023, also published today, provide a comprehensive overview of Philips' environmental, social and governance achievements.
About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHI) is a leading health technology company, focused on improving people's health and well-being, and facilitating better results in the health cycle, from habits healthy and prevention, to diagnosis, treatment and home care. Philips leverages its 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 consumer health and home care. Philips reported sales of €18.2 billion in 2023 and employs approximately 69,700 workers, with business operations and services in more than 100 countries. All news about Philips can be found in our News Center.
For more information:
César García Requena
Brand
Philips Ibérica
Tel : 670 264 471
Email: cesar.garcia.requena@philips.com
Ruben Marcos / Daniel Calvo
Europa Press Communication
Tel: 91 359 26 00
E-mail: rubenmarcos@europapress.es / danielcalvo@europapress.es
