Philips, the Dutch lighting, healthcare and consumer lifestyle company and the world's largest lighting supplier, began its sustainability journey in the early 1990s when it set its first sustainability standards. It began by focusing on technology innovations to reduce packaging and increase energy efficiency of its products. This focus shifted over time to consider end-to-end solutions and how the company could influence consumer choices and behaviour. This resulted in a growing portfolio of green product innovations.By the 2000s the company began setting goals to grow its green product portfolio. In 2007 it set a target that 30% of its turnover would be from green product revenues by 2012. In 2012 it set a new goal of 55% of total sales to be 'green' (as of 2013 the proportion stood at 51%), and embedded the target in the corporate scorecard. About one third of its over $2B annual R&D budget is now directed towards green innovation.Today the company's mission is to make the world healthier and more sustainable through innovation and its goal is to improve the lives of 3 billion people a year by 2025. It committed to this mission in 2012 both as a competitive necessity and with the conviction that companies solving the problem of resource constraints will have an advantage. It believes that customers will increasingly consider natural resources in their buying decisions and will give preference to companies that show responsible behavior.
Circular Economy Snapshot: Philips Light as a Service
Dec 22, 2016