Philips reinforces its leadership as a purpose-driven company with an enhanced and fully integrated approach to doing business responsibly and sustainably

September 14, 2020

• On track to fully achieve all the targets of ithilips reinforces its leadership as a purpose-driven company with an enhanced and fully integrated approach to doing business responsibly and sustainabs pioneering ‘Healthy people, Sustainable planet’ 2016 - 2020 program, Philips steps up further and makes ambitious Environmental, Social and Corporate Governance (ESG) commitments for 2025
• Environmental: Philips commits to 100% EcoDesign, increased energy efficiency, expanded renewable energy sourcing, and circular economy solutions – targeting Paris Agreement 1.5 ^oC global warming limit
• Social: Philips commits to improving the lives of 2 billion people a year by 2025 [1] through its innovations, including 300 million people in underserved communities
• Governance: Philips will ensure transparency regarding its tax contribution for all countries it operates in

Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today further reinforced its commitments as a purpose-driven company with the announcement of an enhanced and fully integrated approach to doing business responsibly and sustainably. Currently completing its ‘Healthy people, Sustainable planet’ 2016 - 2020 program, Philips is set to achieve all of the program’s ambitious targets by the end of the year, including generating 70% of its sales from green products and services with 15% from circular economy solutions, becoming CO₂-neutral in its operations, recycling 90% of its operational waste, and sending zero waste to landfill [2]. Building on this strong track record, Philips’ new framework comprises a comprehensive set of key commitments across all the Environmental, Social and Corporate Governance (ESG) dimensions that guide execution of the company’s strategy. It includes ambitious targets and detailed plans of action.

“When we started our transformation journey, our aim was to make sure that Philips stayed relevant - that we could apply our tremendous innovation strength to make a difference to people’s lives,” said Frans van Houten, CEO of Royal Philips. “As a leading health technology company today, our purpose is to improve people’s health and well-being through meaningful innovation, positively impacting 2 billion lives per year by 2025. We aim to grow Philips responsibly and sustainably, and we therefore continuously set ourselves challenging environmental and social targets, and live up to the highest standards of governance. Acting responsibly towards the planet and society is part of our DNA. I am convinced that this is the best way for us to create superior, long-term value for Philips’ multiple stakeholders.”