Pioneering hospitals take major steps towards decarbonizing healthcare with Philips

Rhea-AI Summary

Royal Philips (NYSE: PHG, AEX: PHIA) announced significant greenhouse gas (GHG) emissions reduction results from collaborations with healthcare organizations worldwide. Key achievements include:

• Jackson Health System (US): 47% projected reduction in CO2e emissions
• Champalimaud Foundation (Portugal): 24% emissions reduction per exam in radiology and nuclear medicine
• Rennes University Hospital (France): Identified opportunities to reduce cath lab emissions
• County Durham and Darlington NHS Foundation Trust (UK): Developed a sustainability blueprint for ICU

Philips conducted comprehensive life cycle assessments (LCA) to help hospitals reduce their carbon footprint while enhancing patient care and operational efficiency. The company aims to improve the health and well-being of 2 billion people per year by 2025, including 300 million in underserved communities.

Positive

• 47% projected reduction in CO2e emissions at Jackson Health System
• 24% emissions reduction per exam at Champalimaud Foundation
• Identified opportunities to reduce emissions in cath lab at Rennes University Hospital
• Developed sustainability blueprint for ICU at County Durham and Darlington NHS Foundation Trust
• Philips aims to generate 25% of revenue from circular products and services by 2025
• Company has been carbon neutral in its own operations since 2020

Negative

• None.

Insights

Sustainability Expert

Philips' collaboration with hospitals to reduce greenhouse gas emissions demonstrates significant progress in healthcare sustainability. The company's holistic approach, using Life Cycle Assessments (LCAs), has yielded impressive results:

• Jackson Health System projects a 47% reduction in CO2e emissions from patient monitoring
• Champalimaud Foundation achieved a 24% reduction in emissions per exam in radiology and nuclear medicine
• Rennes University Hospital identified opportunities to reduce cath lab emissions
• County Durham and Darlington NHS Trust developed a sustainability blueprint for their ICU

These initiatives align with Philips' broader ESG commitments, including carbon neutrality in operations since 2020 and goals for EcoDesign and circular revenue. The company's focus on sustainable healthcare could position it favorably in an increasingly environmentally conscious market, potentially driving long-term value for investors.

Healthcare Technology Analyst

Philips' sustainability efforts in healthcare technology are noteworthy for their potential to drive both environmental and financial benefits. Key points for investors:

• Cost savings: Jackson Health System's switch to Philips monitors could save $1.2 million over 10 years
• Market positioning: Philips is establishing itself as a leader in sustainable healthcare solutions, which could be a significant differentiator in the competitive medical technology market
• Innovation driver: The focus on sustainability is likely to spur further innovation in energy-efficient and circular design products
• Long-term contracts: Partnerships like the five-year agreement with Rennes University Hospital suggest stable, long-term revenue streams

While the immediate financial impact may be , this strategic direction could enhance Philips' brand value and market share in the evolving healthcare sector, potentially leading to increased sales and customer loyalty over time.

October 3, 2024

Philips helps healthcare organizations worldwide assess and mitigate their environmental impact while enabling better care and better care outcomes for more patients at lower cost

Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today announced significant greenhouse gas (GHG) emissions reduction results following collaboration with customers worldwide to assess and mitigate their carbon footprints, while also enhancing patient care and customer operational efficiency. Key achievements include:

• Jackson Health System (US): A 47% projected reduction in CO₂e emissions by replacing legacy patient monitors, comprising 508-tons equipment lifecycle CO₂e reduction and 177 tonnes CO₂e reduction due to battery and paper savings.
• Champalimaud Foundation (Portugal): 24% emissions reduction per exam in its radiology and nuclear medicine department, with a goal to halve the carbon footprint of its diagnostic and interventional imaging departments by 2028.
• Rennes University Hospital (France): Opportunities identified to reduce annual emissions of the cath lab through energy savings and sustainable equipment upgrades.
• County Durham and Darlington NHS Foundation Trust (UK): A sustainability blueprint developed for the trust’s ICU, focusing on waste reduction and energy efficiency.

“Good healthcare has to be environmentally sustainable, which means words and good intentions urgently need to be turned into positive actions. Philips is committed to co-creating solutions that drive measurable, impactful change. By working with like-minded action leaders around the world, sharing with them our expertise in sustainable healthcare operations, we are helping them to take critical and tangible steps toward a greener future, while at the same time enhancing patient care,” said Robert Metzke, Global Head of Sustainability at Philips.

Examples of projects based on a comprehensive ‘360-degree’ holistic life cycle assessment (LCA) of a hospital organization’s sustainability, together with more detail about key results [1] include:

Jackson Health System (Miami, Florida, US)
Philips conducted a retrospective Life Cycle Assessment of patient monitoring at 3 of Jackson Health System’s hospitals revealing that by switching to the Philips monitoring platform from their previous provider, over a 10-year period, they may be able to reduce carbon emission from patient monitoring by 47%. Data from the LCA assessment indicated that the Philips IntelliVue and EarlyVue monitors can help reduce the health system’s patient monitoring carbon footprint by 508 tons of CO2e across all facets of the lifecycle. Battery and paper savings reduced CO2e by an additional 177.1 tons.  This significant reduction also eliminates the need for an estimated 420,000 disposable AA batteries and 6.5 million sheets of paper, which can allow the health system to save $1.2 million over a 10-year device lifetime.

Champalimaud Foundation (Lisbon, Portugal)
In March 2023, Philips and Champalimaud Foundation, a leader in translational biomedical research and clinical care, entered into a strategic partnership aimed at halving the carbon footprint of Champalimaud’s diagnostic and interventional imaging departments by 2028. Potential reductions associated with equipment replacement and usage over the 5-year period were calculated and a replacement plan put into action. Based on a comprehensive LCA, the baseline carbon footprint of the existing imaging equipment was 2,175 tonnes CO₂e. The collaboration achieved a 24% reduction in CO₂e emissions per exam in the first year, primarily through EcoDesign equipment replacement and incorporating circular practices. Read the full case study here.

Rennes University Hospital (Rennes, France)
Part of a five-year technology, research, and innovation partnership, this project aimed to decarbonize and reduce the overall environmental impact of Rennes University Hospital’s catheterization laboratory (cath lab), in which a Philips Image Guided Therapy System – Azurion – is used to treat strokes and aneurysms. Conducted in accordance with the latest European Union Product Environmental Footprint guidelines, a LCA of the carbon footprint and other pollutants associated with Azurion and the consumables used during interventional procedures revealed opportunities to reduce the lab’s annual emissions through energy savings, circular upgrades, and refurbishment. The assessment also identified opportunities to reduce the rare metal content of equipment and consumables. Read the full case study here.

County Durham and Darlington NHS Foundation Trust (Darlington, UK)
Philips partnered with County Durham and Darlington NHS Foundation Trust (CDDFT) to identify key opportunities to reduce greenhouse gas emissions and materials waste in the intensive care unit (ICU) at Darlington Memorial Hospital. Key areas highlighted by the team for enhancing sustainable ICU care included patient discharge optimization, waste reduction in the supply chain, staff training to encourage knowledge sharing and a sustainability culture, energy reduction and materials waste associated with ICU equipment, and the strategic refurbishment of buildings to reduce their emissions. The results formed a blueprint to drive further change and improvement across the Trust, in line with the UK NHS’s target of being the world’s first net zero national health service by 2040. Read the full case study here.

Vanderbilt University Medical Center (Nashville, US)
In collaboration with leading sustainability experts at Vanderbilt University Medical Center, Philips collaborated in a LCA project to measure and mitigate emissions associated with an entire radiology department. The results revealed that 10-year emissions from Vanderbilt’s current diagnostic radiology unit amounted to 4,600 tonnes CO₂e, primarily associated with lifecycle emissions from its MR imaging suite (48%) and CT imaging suite (24%). Key mitigation recommendations for radiology departments included accelerating digitization, embracing circularity, and transitioning to renewable energy sourcing. Recommendations for health technology companies included designing for energy reduction, applying circular design principles, and developing smart image storage.

Philips is driving sustainable and equitable healthcare
Philips recognizes the link between human and environmental health, with healthcare systems responsible for over 4% of global CO2 emissions [2] and significant materials usage. As part of Philips’ broader ESG commitments, Philips is driving the transition towards sustainable and equitable healthcare to deliver better care for more people. The company has been carbon neutral in its own operations since 2020. All new product introductions are designed in line with the company’s EcoDesign requirements by 2025, and it aims to generate 25% of its revenue from circular products and services by 2025. Societally, it aims to improve the health and well-being of 2 billion people per year by 2025, including 300 million people in underserved communities, and 1 million workers in its supply chain.


[1] Results from case studies are not predictive of results in other cases.
- Jackson and Health System: The LCA results are obtained using Philips Environmental Profit & Loss (EP&L), proxy data, literature and customer obtained data. The LCA is not validated externally by 3rd party. 
- Champalimaud Foundation and Rennes CHU: The LCA results are obtained using Philips Environmental Profit & Loss (EP&L), proxy data, literature and customer obtained data including energy measurements. The LCAs are validated externally by 3rd party.
[2] EDGAR—Emissions Database for Global Atmospheric Research Emissions Data and Maps 2018 http://edgar.jrc.ec.europa.eu/

For further information, please contact:

Joost Maltha 
Philips External Relations 
Tel: +31 6 10 55 8116  
Email: joost.maltha@philips.com

About Royal Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people's health and well-being through meaningful innovation. Philips’ patient- and people-centric innovation leverages advanced technology and deep clinical and consumer insights to deliver personal health solutions for consumers and professional health solutions for healthcare providers and their patients in the hospital and the home. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, ultrasound, image-guided therapy, monitoring, and enterprise informatics, as well as in personal health. Philips generated 2023 sales of EUR 18.2 billion and employs approximately 69,700 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.

Attachments

• Philips Ingenia Ambition helium-free MR scanner
• Philips Azurion interventional suite
• Philips patient monitors

FAQ

What is Philips' stock symbol on the NYSE?

Philips' stock symbol on the NYSE is PHG.

How much CO2e emissions reduction did Jackson Health System project?

Jackson Health System projected a 47% reduction in CO2e emissions by replacing legacy patient monitors.

What emissions reduction goal did Champalimaud Foundation set for 2028?

Champalimaud Foundation set a goal to halve the carbon footprint of its diagnostic and interventional imaging departments by 2028.

How many people does Philips aim to impact by 2025?

Philips aims to improve the health and well-being of 2 billion people per year by 2025, including 300 million in underserved communities.

When did Philips achieve carbon neutrality in its own operations?

Philips has been carbon neutral in its own operations since 2020.