Philips delivers strong ESG performance in 2023

February 20, 2024

• 1.88 billion lives improved by Philips’ health technology products and services; on track to improve 2 billion lives by 2025
• Through its industry leading innovations and partnerships, Philips helps increase access to healthcare globally and create sustainable and resilient healthcare models
• Philips expanded its circular revenues to 20% of sales; remained carbon-neutral in its operations, and further reduced its value chain carbon emissions with 46% of its purchases (in spend) made at suppliers that have committed to science-based targets
• Third year of country-by-country activity and tax reporting; enhanced scope 1-3 emissions reporting in preparation for new EU Corporate Sustainability Reporting Directive

Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, has relentlessly focused on further improving its Environmental, Social, and Governance (ESG) performance in 2023. For example, Philips improved the health and well-being of 1.88 billion people with its innovative products and services, of which 221 million in underserved communities, bringing the company close to its goal of improving 2 billion lives per year by 2025. Philips innovated with partners to increase access to sustainable healthcare globally, and further increased its circular revenues, while reducing its operational and value chain carbon emissions.

Marnix van Ginneken, Chief ESG & Legal Officer at Royal Philips, said: “Building on our strong heritage in environmental and social responsibility, we have a fully integrated approach to doing business responsibly and sustainably, in line with our company purpose. I am convinced that our ESG commitments are the best way for Philips to drive priorities for global impact and create long-term value for our stakeholders.”

“We are proud of the progress we have made towards our goal of improving 2 billion lives per year by 2025, on delivering on our low-carbon commitments, and in expanding our portfolio of EcoDesign products and systems. We remain focused on driving further improvements in line with our 2025 commitments.”

Towards better care for more people in a sustainable way
Today, millions of people around the world have little or no access to basic healthcare, and climate change is impacting both environmental and human health. Together with partners, Philips is developing an AI-powered ultrasound solution that aims to address the shortage of healthcare workers by putting a diagnostic tool previously reserved for expert technicians in the hands of midwives, expanding access to maternal care in rural underserved communities in Kenya. Philips is also developing new, technology-driven business models to enhance access to care. An example is the mobile CT trucks Philips has rolled out in medically underserved Australian and North American communities. This innovation offers a global blueprint to ensure timely lung screening that saves lives.