Historically known for its lighting and consumer electronics, Royal Philips now fully focuses on health technology. The company currently is the number four medtech player worldwide and specializes in health care systems, like diagnostic imaging and image-guided therapies, and in personal care products, including oral care, grooming, and sleep therapy devices.
Impact investment rationale
- The company invests in the development of green technologies and products and aims to reduce the ecological footprint of its operations and supply chain. Specific targets for 2020 are, for example, to become carbon neutral, use 100% renewable electricity, recycle 90% of all operational waste and send zero waste to landfill, and reduce water consumption by 10%.
- Through its products and services, the company aims to improve the lives of 2.5 billion people per year, of which 130 million people in underserved markets. In addition, by 2020, it targets to derive 70% of turnover from products that offer a significant environmental improvement in energy efficiency, packaging and lifetime reliability
- With its commitment to circularity, Philips works to close the materials loop and make a transition to more sustainable business models. To this end, the company introduced in 2016 a new internal KPI: circular revenues. In 2020, 15% of revenues should be generated through products that meet specific Circular Economy requirements, including refurbished, reconditioned and remanufactured products and systems.
- Through the Philips Foundation the company sets out to reduce health inequality for people with limited access to healthcare, by supporting social entrepreneurs with programmes to scale impact and create new business models. In addition, the company established 'community life centers' in Africa to improve primary and community care by means of training and provision of medical tools.
Philips contributes to the following UN Sustainable Development Goal:
Prosperous and Healthy People
Prosperous and healthy people are in a state of physical, mental and social well-being, going beyond the mere absence of disease or infirmity. Essential to reaching a state of well-being is a well-functioning health system that improves the well-being status of individuals, protects people against the financial consequences of ill-health and provides equitable access for all.
We invest in companies that advance health solutions such as medical technology, health care and personal hygiene, as well as companies that promote active lifestyles and leisure.
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