Gap Score: +5.4
  • While energy consumption at Philips decreased by 2% in 2013, the company’s carbon footprint increased by 2% as a result of increased emissions from air transport, increased use of sulfur hexafluoride (SF6, a substance with a potentially high global warming impact) and increased business travel. However, CO2 emissions from nonindustrial sites decreased 20%, owing in large part to Philips’s Work Place Innovation program, which enables flexible work arrangements, and a continued focus on increasing the energy efficiency of the company’s buildings as well as the share of electricity it purchased from renewable sources.

  • Total waste increased 5% to a total of 92 kilotonnes in 2013. The increase owed mainly to one-time demolition scrap at a site in the Netherlands and a new acquisition in China. However, industrial waste delivered for recycling totaled 74 kilotonnes, which amounted to 81% of Philips’s total waste, an improvement over 77% in 2012.

  • Water intake increased 4% to a total of 5 million cubic meters in 2013. A new acquisition in China accounted for 6% of water consumption.

  • In 2013, Philips’s Lighting division invested €327 million (an increase of 2 million from 2012) to develop products and solutions that address environmental and social challenges. Results of these investments include the TLED and the Philips LUXEON Altilon product family used in the Mercedes S-class LED Intelligent Light System, making this car the first one in which all lighting functions are LED.

Working Together

In collaboration with Barcelona’s City Council, Philips will make Barcelona a more energy-efficient city through connected LED street lighting, therefore helping Barcelona become a pioneer in the field of smart cities for the economic, environmental, and social benefit of its citizens. Philips will also provide defibrillators to the city of Barcelona as part of this collaboration. Together with Green Sense Farms, a Chicago-area commercial grower, Philips will develop one of the largest indoor commercial farms using LED grow lights tailored to specific crops. This innovative farming model will allow 20–25 harvests per year while using 85% less energy than conventional grow light systems. The result will be an increase in crop yields and reduced operating costs, while providing consumers with locally grown, fresh vegetables throughout the year.

The Green Advantage

Philips is currently making the transition to a circular economy, a business model that puts focus on recovering materials, access over ownership, and reliance on renewable energy. It’s a move that allows Philips to align profit and purpose, while striving to fulfill its mission to make the world healthier and more sustainable through innovation. With its green product advancements, Philips closes material loops, prevents harm to the environment, provides social benefits, and address people’s needs in order to stay relevant for consumers. This year, 51% of total turnover came from green product sales, a target the company had set for 2015. Although Philips’s solid perception improvement this year helps it reduce its positive gap and move up in our ranking, Philips still does not get full recognition for its sustainable efforts. By creating more public awareness of its social and environmental contributions, the company can enhance its brand value and leverage its green leadership.


Philips circular economy infographic
Philips Sustainability Report
Barcelona and Philips sign agreement on Smart Cities
Philips & Green Sense Farms usher in new era of indoor farming