Philips is now completely carbon-neutral in its operations, uses 100 per cent renewable energy electricity, and recycles 90 per cent of its operational waste, the company announced this week as part of an update of its five-year ESG program.
The Dutch conglomerate has been divesting from its traditional electronics business over the last decade and now focuses on healthcare technology. In 2016 it set ambitious targets to lessen its environmental impact, embrace its social responsibility and operate more transparently.
On Tuesday the company reported it had met all the targets it set in its “Healthy people, Sustainable planet” program and set more goals for the coming five years.
In addition to carbon neutrality, renewable energy and recycling operational waste, the company says 15 per cent of the sales it makes now come from circular revenues and more than two-thirds of what it sells are “Green Products” — products and services that offer a significant environmental improvement in areas like energy, packaging, and reliability.
In Australia, the program has also seen Philips’ carbon emissions fall from 398 tonnes in 2018, to just 6 tonnes in 2020 — all fully offset, according to the company. Across the APAC region, Philips has improved the share of renewable energy on its total energy consumption from 54 per cent to nearly 80 per cent.
“I am pleased that we have delivered on all the targets set out in our Healthy people, Sustainable planet program, making Philips one of the first health technology companies in the world that has become carbon neutral in its operations,” said 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 drive environmental, social and governance priorities and generate global impact.”
The health tech company will now turn its attention to new environmental, social and governance targets, including using “ecodesign” in all of its new products by 2025. The approach means the products will have more efficient batteries, be free of PVC plastics, and ship in FSC-certified cardboard packaging.
The company is also targeting using renewable energy for 75 per cent of its total energy consumption and to generate a quarter of its revenue from circular economy products.