NETHERLANDS —Royal Philips, a global leader in health technology, has published its 2023 Environmental, Social, and Governance (ESG) report, which emphasizes patient safety and quality, supply chain reliability, and performance improvement.

This report seeks to deploy innovative goods and services that will improve the health and well-being of 1.88 billion people, 221 million of whom live in underserved areas, bringing the company closer to realizing its goal of improving 2 billion lives per year by 2025.

Additionally, Philips collaborated with partners to expand worldwide access to sustainable healthcare, increasing circular revenues while lowering operational and value chain carbon emissions.

To provide better care for more people in a sustainable manner, Philips is working with partners on an AI-powered ultrasound solution that aims to address the healthcare worker shortage by putting a diagnostic tool previously reserved for expert technicians in the hands of midwives, thereby expanding access to maternal care in Kenya’s rural underserved communities.

 Moreover, Philips is also creating innovative, technology-driven business models to improve access to care, such as mobile CT trucks, which it has deployed in underserved Australian and North American regions. This breakthrough provides a global roadmap for ensuring prompt lung screenings, which save lives.

Furthermore, Philips contributes to the development of a sustainable and resilient healthcare system through collaborations and its industry-leading sustainability innovation portfolio, which includes energy-efficient MRI scanners and the Philips Radiology Operations Command Centre.

This allows for real-time cooperation and virtual imaging processes, which can reduce staff travel time and costs.

Moreover, Philips has teamed with Portugal’s Champalimaud Foundation to cut its carbon footprint in diagnostic and interventional imaging in half by 2028.

 Similarly, Philips and Vanderbilt University Medical Center are collaborating to decarbonize the health system’s radiology department, and preliminary results suggest that long-term solutions can be both environmentally friendly and cost-effective.

In terms of advancing diversity and inclusion, Philips employs a diverse team of about 70,000 people from over 100 countries, each with their own distinct backgrounds, perspectives, and experiences.

The company places high importance on creating an inclusive workplace where creativity and innovation may thrive, as seen by its gender diversity, with 31% representation of women in senior management by 2023.

Moreover, to move forward with low-carbon operations and value chains, Philips boosted circular revenues to 20% of sales in 2023.

While remaining carbon-neutral in its operations since 2020, Philips achieved 78% renewable energy consumption, exceeding its 75% science-based target for 2025.

This was made possible by the new Mutkalampi windfarm in Finland and the new Pontinia solar power generating farm in Italy, both of which offer renewable electricity.

Furthermore, in December 2023, Philips signed its first direct renewable energy agreement with China.

Additionally, Philips also maintained 91% circularity in its waste stream (against a goal of 95% by 2025) and Zero Waste to Landfill status, with all 23 industrial locations meeting this goal by the end of 2023.

In 2022, Philips became the first health technology business to receive approval from the Science Based Targets initiative (SBTi) for their whole value-chain CO₂ emissions reduction targets, including scope 1-3.

Already, 46% of its purchases (in expenditure) were sourced from suppliers who have committed to science-based reduction targets, with Philips aiming to reach 50% by 2025.

Regarding global leadership and governance standards, Philips is devoted to transparency and accountability with the company pioneering corporate governance practices that are consistent with global standards and best practices.

Philips’ Human Rights Report 2023, for example, outlines the company’s efforts to uphold human rights, while its Country Activity and Tax Report demonstrates how the company views tax payments as a significant contribution to the communities in which it operates and an essential component of its social value creation.

Additionally, Philips has already included greater scope 1-3 emissions reporting in its Annual Report 2023, in preparation for the European Union’s new Corporate Sustainability Reporting Directive (CSRD), which will become necessary in 2024.

Marnix van Ginneken, Royal Philips’ Chief ESG & Legal Officer, stated after the report’s release that the company has a fully integrated approach to doing business responsibly and sustainably, drawing on its strong tradition in environmental and social responsibility.

He went on to express her commitment, adding that by adopting their ESG commitments, Philips will be able to set priorities for global impact and produce long-term value for their stakeholders.

Ginneken continued to express her delight in making progress toward the objective of improving 2 billion lives per year by 2025, meeting low-carbon goals, and increasing their EcoDesign product and system range.

He finished by stating that she remains committed to driving additional improvements in line with Philips’ 2025 goals.

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