Renewable sources, ecological services … Royal Philips, a model in terms of CSR
Royal Philips, a world leader in healthcare technologies, has successfully achieved all the targets set in its 2016-2020 “Healthy People, Sustainable Planet” program. The main achievements of the program include carbon neutrality in its operations, 100% electricity from renewable sources, more than 70% of sales of green products and services, 15% of sales come from circular revenues, 90% recycling of your operational waste, and send it to the zero waste landfill.
“I am confident that we have achieved all of the goals set out in our ‘Healthy People, Sustainable Planet’ program, making Philips one of the first healthcare technology companies in the world to make its operations carbon neutral,” says Frans van Houten. CEO of Royal Philips. “Our current integrated ESG framework builds on this success and we are determined to join forces with all necessary stakeholders, public and private, to advance environmental, social and governance priorities and have a global impact. With the COVID-19 pandemic and climate change putting people’s health at risk and access to quality health care, we are committed to building inclusive and resilient health systems, while reducing our dependence on natural resources. “.
The Philips Environment, Society and Governance update is an integral part of the Philips 2020 annual report, released on Tuesday. Strengths include:
Renewable energy sources: Through virtual power purchase agreements led by a consortium, Philips guarantees the supply of renewable electricity to power its European operations. Circular Economy: Philips is playing a leading role in the Platform to Accelerate the Circular Economy (PACE), setting global agendas and spurring change to incorporate circular thinking and ways of working. As part of its deal with the World Economic Forum (WEF) Capital Goods Pledge, Philips delivered closing the loop for large medical systems teams by offering an exchange for all deals won by the company worldwide , reusing / recycling components and materials. responsibly to improve more lives without further depleting the world’s natural resources. Supply chain: Philips works with suppliers to further reduce their carbon emissions by supporting capacity development and contributing to transparency and efficiency in the supply chain. This approach improved the sustainability of suppliers entering the program by 36% in 2019 compared to last year.
Improving lives: In 2020, Philips products and solutions improved the lives of 1.75 billion people. This figure includes 207 million people living in underserved communities. To this end, the company also works in partnership with governments, NGOs and hospitals. For example, Philips has partnered with the African Union to provide medical equipment and expertise to help meet the immediate needs of doctors and patients with COVID-19. Supply chain: Philips programs improved the lives of 302,000 workers in its production chain in 2020. Fair and inclusive workplace: Average employee participation of Philips in 2020 was 79%. The employee survey consistently reports that your employee engagement is on the rise, far exceeding the global high performance standard of 71%. Additionally, gender diversity in leadership positions was 27% at the end of 2020, exceeding the target of 25%.
Philips has a strong reputation for transparency in its plans, actions and reports. For example, all ESG data is externally audited at the highest level. In addition to the regular disclosures of the company’s tax contribution in its 2020 annual report, Philips today released its first 2020 national activity and tax report detailing its tax contributions for all the countries in which it operates.
Act responsibly with the planet and society
As part of its continued commitment to making the world healthier and more sustainable through innovation, Philips will continue to build on the success of the program with an enhanced and fully integrated approach to doing business responsibly and sustainably. As announced last September, this new framework includes a comprehensive set of objectives, commitments and action plans in all environmental, social and governance dimensions that will help stimulate growth while acting responsibly with the planet and society.
Human rights report
Philips also released its latest Human Rights Report today, which contains information on the company’s progress in identifying and mitigating (potential) negative impacts on human rights. on Philips activities and its value chain. In addition, the company has issued statements on the new policy on human rights, fair employment, inclusion and diversity, which cover aspects such as equal opportunities, fair pay and fair, workplace harassment / bullying, child labor, forced labor, and hours of operation guidelines.
Philips received increased recognition for its ESG performance: leading positions in the Dow Jones Sustainability Index and Sustainalytics rankings; eight consecutive years on CDP’s A list for climate change; greenhouse gas reduction targets approved by the Science Based Targets initiative. Philips also ranked second in 2020 in the Wall Street Journal’s Top 100 Sustainably Managed Companies Worldwide.