Commercial, GHG Emissions - November 2, 2021
Philips Expands Supplier Climate Commitments
Royal Philips announced Oct. 28 that it plans to further engage its suppliers to set their own climate targets and its aiming to have at least 50% of its suppliers committed to science-based targets by 2025.
The health technology company estimates that if these suppliers reduce their emissions in line with science-based targets, the company could have an impact seven times greater than if it reduced emissions in its own operations.
However, Philips is targeting its own emissions reductions and achieved carbon neutrality in its operations in line with the goals of the Paris Agreement in 2020. The company also sources all of its electricity from renewable sources.
More than 200 suppliers currently participate in Philips’s supplier sustainability program, which focuses on structural improvements and providing incentives, such as direct support for capability building and preferential payment terms, to increase supplier commitments.
“We are at a critical point of urgency where we need to accelerate the global transition to climate neutral, circular and resource-efficient economies and societies,” CEO Frans van Houten said in a statement. “As a purpose-driven company, we are conscious of our responsibility towards society and have set clear, ambitious Environmental, Social and corporate Governance (ESG) commitments to support this major shift. We encourage as many companies, customers and supply chain partners as possible to commit to climate actions and science-based targets, deliver on those actions, and provide proof of progress and delivery through continuous, transparent and in-depth reporting.”