Philips receives high score for its ESG practices from S&P Global Ratings

March 30, 2021  

Philips received a score of 90 out of 100, the highest that S&P Global Ratings has awarded to date

Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today announced that its strategy to do business responsibly and sustainably has been validated by S&P Global Ratings. Evaluated across the Environmental, Social and Governance (ESG) dimensions of S&P Global Ratings’ assessment, Philips received a score of 90 out of 100, the highest that S&P Global Ratings has awarded to date.  

“As a purpose-driven company, we are conscious of our responsibility towards society and of the need to continue to embed ESG practices ever deeper in the way we do business,” said Frans van Houten, CEO of Royal Philips. “I am proud that this commitment has again been recognized externally, receiving the highest score to date in the S&P Global Ratings ESG Evaluation. This sends a strong message to investors and our other stakeholders, who increasingly look to a company’s ESG actions as a measure of its commitment to doing business in a responsible and sustainable manner.”

S&P Global Ratings’ ESG Evaluation assesses a company’s ESG strategy and ability to prepare for potential future risks and opportunities and is used by investors as a forward looking, long-term opinion of a company’s readiness for disruptive ESG risks and opportunities. It provides an overall ESG Score that allows comparison with other entities globally, including sector peers.

“Our ESG Evaluation score of 90 reflects our view that sustainability is at the core of Philips’ corporate strategy,” states S&P Global Ratings in its evaluation report. “The company built a digital, integrated, and solution-based business model before most of its global peers, which it leverages to respond to key challenges in the health care industry, such as inequality in the access and affordability of care, and shortages of medical professionals.”

In the Environmental domain, S&P Global Ratings notes that “Philips applies leading environmental standards across its value chain” and “distinguishes itself in the management of its indirect environmental impact.” It also recognizes that “Philips has a track record of setting and achieving more ambitious targets in its direct operations than many of its industry peers.”