Health & Planet Focus: Philips' 2023 Report

Royal Philips, a leading company in health technology, continued its focus on improving its Environmental, Social, and Governance (ESG) performance in 2023.

Philips enhanced the health and well-being of 1.88 billion people with its products and services, including 221 million in underserved communities, nearing its goal of helping 2 billion lives annually by 2025.

The company collaborated with partners to expand access to sustainable healthcare worldwide and increased its circular revenues while cutting operational and value chain carbon emissions.

Marnix van Ginneken, Chief ESG & Legal Officer at Royal Philips, stated, “We have a fully integrated approach to conducting business responsibly and sustainably, aligned with our company purpose. Our ESG commitments are key to driving global impact priorities and creating lasting value for stakeholders.”

Philips made significant progress towards its goal of improving 2 billion lives yearly by 2025, meeting low-carbon commitments, and expanding its EcoDesign product range. The company remains dedicated to further enhancements in line with its 2025 targets.

Improving Healthcare Access and Sustainability

Millions worldwide lack access to basic healthcare, exacerbated by climate change. Philips is addressing this with innovations like an AI-powered ultrasound solution aimed at empowering midwives in rural Kenya, expanding maternal care access. The company also introduced mobile CT trucks in underserved areas of Australia and North America, providing a model for timely lung screening.

Philips supports creating sustainable healthcare systems through partnerships and innovative products like energy-efficient MRI scanners and the Radiology Operations Command Center, reducing carbon footprints and costs. Collaborations with organisations like Portugal’s Champalimaud Foundation and Vanderbilt University Medical Center demonstrate the feasibility of eco-friendly initiatives in healthcare.

Diversity and Inclusion

With a diverse team spanning over 100 countries, Philips prioritises inclusion to foster creativity and innovation. The company achieved 31% female representation in senior management in 2023, earning recognition from Forbes as one of the Best Employers for Women and Diversity.

Advancing Low-Carbon Operations

Philips expanded circular revenues to 20% of sales in 2023 and surpassed its renewable energy target with 78% usage. Initiatives like wind and solar energy projects in Finland and Italy contribute to this progress. The company also maintained a 91% waste circularity rate and Zero Waste to Landfill status across its industrial sites.

Global Leadership and Governance

Philips ranked among the top 3 health technology companies in the 2023 Dow Jones Sustainability Indices and received an ‘A’ grade from CDP for its climate performance and transparency for the 11th consecutive year.

Committed to transparency and accountability, Philips aligns its corporate governance with global standards, as reflected in its Human Rights and Country Activity and Tax reports. Enhanced emissions reporting prepares the company for the European Union’s Corporate Sustainability Reporting Directive.

For a detailed overview of Philips’ ESG achievements, refer to chapters 5 and 12 of the Philips Annual Report 2023.

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Source: Philips