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Philips makes progress toward ESG goals

Philips makes progress toward ESG goals

AMSTERDAM – Royal Philips reached 1.81 billion lives improved with its products and services in 2022, even as it reduced operational emissions and indirect emissions across the health care value chain, part of its environmental, social and governance (ESG) ambitions.  
“We continue to move closer to our aim of improving 2 billion lives per year by 2025, while stepping up our sustainability efforts in our operations and value chain,” said Marnix van Ginneken, chief ESG & legal officer at Royal Philips. “The growing momentum across the health care industry and among customers to reduce our collective environmental footprint encourages us on a daily basis, as we continue to strive to reduce emissions across the end-to-end health care value chain and drive the shift to a circular economy.” 
Increasing social impact 

Of the 1.81 billion lives reached, 202 million were in underserved communities. Improved access to care in underserved communities in 2022 was driven by shared-value partnerships, the development of innovative digital solutions, and the roll-out of new business and financing models that are both sustainable and scalable. 
Other key developments include a 30% representation of women in senior leadership roles, increased focus on employee health and well-being (both physical and mental health), and continued emphasis on ensuring a safe and healthy workplace. 

Reducing operational emissions and waste 

In addition to remaining carbon-neutral in its operations (since 2020), Philips achieved 77% renewable energy usage, exceeding the 75% goal for 2025. It also reduced transport- and distribution-related CO₂ emissions by 22% through a stricter air-freight policy and optimized warehouse locations. 
Philips also improved the circularity of its waste stream to 91%, increasingly recycling, re-using or reducing waste. An example is the replacement of single use plastic in supplier packaging with boxes that can be used repeatedly. As a result, less than 0.1% of the remaining operational waste was land-filled, in line with our zero-waste to landfill ambition. 
CDP, a global NGO that assesses the CO₂ emissions performance and management of reporting companies, ranked Philips on the CDP Climate Change “A” List for the 10th time in a row, thanks to the company’s continued climate performance and transparency. 
Advancing toward low-carbon operations and value chain 

In 2022, Philips became the first health technology company with approval from the Science Based Targets initiative (SBTi) for its entire value-chain CO₂ emissions reduction targets, including Scope 1-3. In addition, 41% of suppliers (based on spend) have now committed to science-based targets. Philips’ goal is 50% by 2025.


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