wef_scm_philips_september_2022-4b4352a66ac9ad98.pdf

Royal Philips employs a rigorous measurement approach to meet targets aligned with UN SDGs 3, 12, and 13. The company developed a proprietary "Lives Improved" framework to quantify health impacts and uses an "Environmental Profit & Loss" (EPL) approach to monetize environmental costs. Philips has achieved 100% carbon neutrality in operations as of 2020 and aims for 25% circularity by revenue by 2025. The company advocates for concise, aligned global sustainability standards, criticizing the complexity of proposed EU disclosure requirements.

• Philips aims to improve the lives of 2.5 billion people annually by 2030, including 400 million in under-served communities. To track this, the company created the "Lives Improved" framework, which calculates the installed base of devices, usage frequency, and treatments per patient to quantify health impacts. This framework is used by investors for their own disclosures and is linked to executive remuneration through "long-term incentives".
• The company is transitioning from a linear "Take > Make > Dispose" model to a circular "Make > Use > Return" model. Philips increased its circularity by revenue from 7% in 2015 to 15% in 2020 and has set a target of 25% by 2025. Achieving this requires redesigning products for circularity and retraining sales staff to promote refurbished systems and pay-per-use models.
• Philips achieved 100% carbon neutrality in its operations by the end of 2020 and committed in 2021 to align its entire value chain emissions with a 1.5°C global warming pathway. The company uses an "Environmental Profit & Loss" (EPL) approach to monetize environmental impacts across 10 headings, such as water pollution and land use, using a pricing methodology from CE Delft.
• Analysis of environmental impact reveals that personal health products, specifically hairdryers and curlers, generate more value-chain emissions than large medical equipment like MR and CT scanners. This is attributed to high sales volumes, energy-intensive heat generation, daily use, and prevalence in markets with less renewable energy in the grid, such as China.
• Philips criticizes the complexity of the EU's proposed sustainability reporting requirements, estimating that complying with 137 disclosure requirements by 2024 would add approximately 100 pages to its management reports. The company urges standard-setters to align with the IFRS Foundation and focus on material, industry-specific metrics.
• The company views the World Economic Forum's Stakeholder Capitalism Metrics (SCMs) as a strength due to their conciseness and clarity. Philips suggests that combining the Forum's core 21 metrics with GRI's core metrics could establish minimum global sustainability standards.

APA

World Economic Forum (2022). wef_scm_philips_september_2022-4b4352a66ac9ad98.pdf. https://www3.weforum.org/docs/WEF_SCM_Philips_September_2022.pdf

Chicago

World Economic Forum. wef_scm_philips_september_2022-4b4352a66ac9ad98.pdf. 2022. https://www3.weforum.org/docs/WEF_SCM_Philips_September_2022.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=wef_scm_philips_september_2022-4b4352a66ac9ad98.pdf |date=September 2022 |url=https://www3.weforum.org/docs/WEF_SCM_Philips_September_2022.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2022wefscmphilipsseptember20224b4352a66ac9ad98pdf, author = {{World Economic Forum}}, title = {{wef\_scm\_philips\_september\_2022-4b4352a66ac9ad98.pdf}}, institution = {World Economic Forum}, year = {2022}, month = sep, url = {https://www3.weforum.org/docs/WEF_SCM_Philips_September_2022.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }