Philips Signs Health Care Sector Pledge to Reduce Emissions as part of Department of Health and Human Services, White House Initiative

Rhea-AI Summary

Royal Philips (NYSE: PHG) has joined an initiative led by the Department of Health and Human Services and the White House, aiming to reduce greenhouse gas emissions in the health sector. The company commits to reducing emissions by 50% by 2030 and achieving net zero by 2050. Philips has been carbon neutral since 2020 and aims for 50% of its suppliers to adopt science-based targets by 2025. With 16% of its revenue from sustainable products, Philips emphasizes its commitment to climate action and sustainability, establishing itself as a leader in health technology.

Positive

• Philips has been carbon neutral in its operations since 2020.
• The company aims to reduce emissions by 50% by 2030 and achieve net zero by 2050.
• 16% of Philips' revenue comes from circular products and sustainable solutions.
• Philips is recognized in the Dow Jones Sustainability Indices and Wall Street Journal’s 100 Most Sustainably Managed Companies.

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• None.

CAMBRIDGE, Mass.--(BUSINESS WIRE)-- Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today announced the company has joined an initiative created by the Department of Health and Human Services (HHS), in partnership with the White House, to address climate action through the reduction of greenhouse gas emissions. Earlier this week at the White House, Philips along with other health sector organizations and administration leaders, participated in a roundtable discussion about work being done to combat climate change and other sustainable initiatives.

The U.S. health care system is responsible for approximately 8.5% of total U.S. carbon emissions, putting the onus on the industry to minimize future environmental damage. The voluntary pledge signees are asked to commit to: (1) reducing their organization’s emissions (by 50% by 2030 and to net zero by 2050) and publicly reporting on their progress; (2) completing an inventory of Scope 3 (supply chain) emissions; and (3) developing climate resilience plans for their facilities and communities. It also asks them to designate an executive lead for this work.

“A healthy environment is vital for healthy human lives, making this a critical initiative,” said Robert Metzke, global head of sustainability for Philips. “At Philips, our purpose is to improve 2.5 billion lives a year by 2030 through meaningful innovation. We have been addressing climate change for many years, teaming up with our partners including our customers and suppliers. We applaud this new HHS/White House initiative and are confident that this pledge will inspire others to commit to take action against this significant threat.”

Philips became carbon neutral in its operations at the end of 2020 and has remained so since then. The company became one of the first health technology organizations to have its emission reduction targets approved by the Science Based Target initiative in 2018. Philips extended its ambitious action to combat climate change to its supply chain, aiming to have at least 50% of its supplier committing to science-based targets for CO₂ emission reduction by 2025. The company has embedded sustainable efforts across its business, generating 16% of revenue from circular products, services and solutions, including new business model innovation and digitalization.

Philips has been recognized for its environmental accomplishments, noted as a leading company in the Dow Jones Sustainability Indices as well as Wall Street Journal’s 100 Most Sustainably Managed Companies in the World.

About Royal Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people's health and well-being, and enabling better outcomes across the health continuum – from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips generated 2021 sales of EUR 17.2 billion and employs approximately 79,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220701005310/en/

Silvie Casanova

Philips North America

Tel: +1 781.879.0692

E-mail: silvie.casanova@philips.com

Avi Dines

Philips North America

Tel: +1 781-690-3814

E-mail: avi.dines@philips.com

Source: Royal Philips

FAQ

What is Philips' commitment to reducing greenhouse gas emissions?

Philips commits to reducing emissions by 50% by 2030 and achieving net zero by 2050.

How has Philips contributed to sustainability?

Philips has been carbon neutral since 2020 and generates 16% of its revenue from sustainable products.

What recognition has Philips received for its sustainability efforts?

Philips is recognized in the Dow Jones Sustainability Indices and Wall Street Journal’s 100 Most Sustainably Managed Companies.

What are Philips' goals for its suppliers regarding emissions?

Philips aims to have at least 50% of its suppliers commit to science-based targets for CO₂ emission reduction by 2025.