By William Cane, Hannah Carpenter, Tom McNeilis and John Watts

SUSTAINABILITY AND COMMISSIONING WITHIN PHILIPS

Contents • Sustainability, commissioning and sustainable procurement

• Three pillars of sustainability

• Philips

• The Philips Business System

• Group Strategic Focus

• EcoVision

• Social Approach

• Environmental Approach

• Awards and Recognition

• Conclusion

• Questions

• Bibliography

Sustainability, Commissioning and Sustainable Procurement

• sustainable development is there to help organisations to make sure they are ethical by trying to preserve the environment, being efficient with their quality, and making sure that their workers are being treated in an ethical way.

• Commissioning is there is try and help organisations to be sustainable and they way they deliver their services to their customers and local community.

• Sustainable procurement is the procedure where organisations try to benefit society, the economy and reduce harm to the environment, plus to achieve a profit from meeting the needs of good, services, work and values.

Three Pillars of Sustainability

(Thwink.org, 2012)

Philips

• Philips was founded in Netherlands in 1891 by Frederik and Gerard Philips, then later joined by Gerard’s brother. For 120 years they have been trying to improve people’s lives with ground-breaking innovations.

• In the present day they touch billions of lives with their innovative healthcare and lightening solutions and their personal health and well -being products.

• They want to make the world healthier and more sustainable through innovation.

• Their goal is to improve the lives of 3 billion people a year by the end of 2015.

• Through 40 business they want to apply their deep knowledge of customers, outstanding innovation capabilities, strong brand, global footprint and talented and engaged people.

• (Philips, 2014)

The Philips Business System

(Philips, 2013)

Group Strategic Focus

• ‘Philips is a technology company with a focus on people’s health and well-being. We strive for a balanced portfolio of businesses that have – or can attain – global leadership positions and deliver performance at or above benchmark levels.’ (Philips 2014)

1. Healthcare.

2. Consumer Lifestyle.

3. Lighting.

Strategic Group Focus Continued.

Strategic Group Focus Continued

• Lives Improved At Philips, we strive to make the world healthier and more sustainable through innovation. Our goal is to improve the lives of 3 billion people a year by 2025.

• Where technology and human needs intersect – that is where we find meaningful innovation.

• Innovation is the use of new technological and market knowledge to offer a new product or service that customers will want. (Afuah2003)

• Our technology, often conceived and developed in collaborative Open Innovation, gives us smart tools to drive far-reaching positive change – intelligent energy, circular economic production, patient-focused healthcare. (Philips 2014)

Innovation and Sustainability

• Innovation is the use of new technological and market knowledge to offer a new product or service that customers will want, for example the creation of 4G. The product that is new in that its costis lower, its attributes are improved, it now has attributes it never had before, or it never existed in that market before. (Afuah 2003)

• Costs is lower in long run and short term.

• Attributes improved.

• Sustainability is innovation.

S-Curve and Sustainability

S-Curve and Sustainability Continued

EcoVision

• In 2050 there will be 9 billion people living on Earth. Sustainable development for us means enabling all mankind to live healthy and well within the ecological carrying capacity of our planet.

• We have identified three key innovation areas where we can bring our competencies to bear, ‘care’, ‘energy efficiency’ and ‘materials’:

• Improving people’s lives: 2015 Target: 2 billion lives a year by 2015. 3 billion lives by 2025.

• Improving energy efficiency of Philips products. 2015 Target: 50% improvement for the average total product portfolio compared to 2009

• Closing the materials loop. 2015 Targets: Double global collection, recycling amounts and recycled materials in products compared to 2009.

Ecovision Continued.

Ecovision Continued.

• Green Product sales

• Improving people’s lives

• Green Innovation

• Green Operations

• Health & Safety

• Employee Engagement

• Supplier Sustainability

Social Approach- Supplier Sustainability• Philips is committed to improving the quality of people’s lives. This

is what drives Philips in the development and manufacturing of their products.

• In search of mutually beneficial relationships, they will award business to those suppliers who are committed to living up to these expectations. As part of this joint approach, they will be there to support suppliers in cases where they need to improve their performance.

• Suppliers also play a pivotal role in helping to achieve EcoVisionobjectives; continuing to support them in their efforts to improve the overall sustainability of their business.

• (Philips, 2014)

Environmental Approach

• Within their environmental approach they have 6 aspects, these are; • Green Innovation • Green Products • Green Operations • Chemical Management • Product Recycling Services • Biodiversity

• (Philips, 2014)

Environmental approach continued…

• Green innovation: • Where technology and human needs intersect – that is where they find

meaningful innovation.

• Green Innovation is the Research & Development spend related to the development of new generations of Green Products and Green Technologies.

• This is all means re-imagining liveable cities with smarter, more energy-efficient lighting, and developing new approaches to healthcare that promote wellness rather than simply treat illness.

• Energy Efficiency

• Closing the Materials Loop

• Circular Economy

• (Philips, 2014)

Environmental Approach continued… • Green products • Across their product range, they are driving sustainability in all aspects of

product creation through their EcoDesign process. Introduced in 1994, their EcoDesign procedures deal with all phases of product development to create products that offer better environmental performance.

• Through EcoDesign, they offer products that can help reduce costs, energy consumption and CO2 emissions. EcoDesign consider the following Philips Green Focal Areas:• Energy efficiency

• Packaging

• Substances

• Weight

• Recycling and disposal

• Lifetime reliability

• Plus they have the Philips Green Logo

• (Philips, 2014)

Environmental Approach continued… • Green operations

• In 2010 they decided to group all activities related to improving the environmental performance of their manufacturing facilities under the Green Manufacturing 2015 program.

• Carbon footprint and energy efficiency

• Water usage

• Waste

• Chemicals management

• Carbon emissions

• (Philips, 2014)

Environmental Approach continued… • Chemical management

• With their longstanding belief in the protective principle, eliminating and minimizing the use of hazardous substances in their products and production processes.

• Philips maintains a Regulated Substances List (RSL) for products which includes substances:

• banned by law or by Philips

• whose use need to be monitored due to regulatory requirements or

• whose use Philips wants to monitor from a precautionary point of view.

• The Regulated Substances List (RSL) is part of the Philips Terms of Reference for suppliers. All suppliers are required to comply with the RSL.

• (Philips, 2014)

Environmental Approach continued… • Product Recycling Services

• Philips recycles used products and related packaging materials in accordance with all environmental laws.

• On there website, you can find out where you can get a product fixed so it can have a longer life or if it can recycled.

• (Philips, 2014)

Environmental Approach continued… • Biodiversity

• Philips’ commitment to the subject of biodiversity made several significant steps forward in 2012. In the Netherlands, the progress was led mainly by the Philips Leaders for Nature (LfN) team which is part of the IUCN National Committee of the Netherlands (IUCN NL).

• The Philips LfN team organized the Philips sustainability week coinciding with the Dutch Sustainability awareness day in October 2012.

(Philips, 2014)

Awards and Recognition• 2013

• VBDO Responsible Supply Chain Management Award

• Crystal Prize

• Dow Jones Sustainability

• CDP

• Top 50 Best Global Green Brand by Interbrand

• Global 100 Most Sustainable Corporations in the World

• RobecoSAM 2013 Sustainability Yearbook

• (Philips, 2014)

Conclusion• Phillips are highly sustainable and consider the sustainability of not

only themselves but also that of their suppliers.

• Their efforts in sustainability have been recognised and awarded for this since 2000 by a multitude of sustainability, environmental and ecological organisations.

• They are a massive organisations that wants to be the leader in sustainability within innovation.

• They have found a way to try and deliver the most innovative, sustainable products they can, while still trying to think about the environment.

• Innovation is Sustainability.

• The idea of improved attributes and lower costs in long and short run.

Questions?

Bibliography • Afuah, A,. (2003) Innovation Management: Strategies, implementation and Profits. New York,

Oxford: Oxford University Press.

• Philips (2014) Our Environmental Approach. (Online) http://www.philips.com/about/sustainability/ourenvironmentalapproach/index.page (Accessed 9th March 2014)

• Philips (2013) Philips Annual Report 2013. (Online) http://www.annualreport2013.philips.com/#s2(Accessed 9th March 2014)

• Philips (2014) Green Innovation (Online) http://www.philips.com/about/sustainability/ourenvironmentalapproach/greeninnovation/index.page (Accessed 9th March 2014)

• Philips (2014) Green Products (Online) http://www.philips.com/about/sustainability/ourenvironmentalapproach/greenproducts/index.page (Accessed 9th March 2014)

• Philips (2014) Green Operations (Online) http://www.philips.com/about/sustainability/ourenvironmentalapproach/greenoperations/index.page (Accessed 9th March 2014)

• Philips (2014) Chemical Management (Online) http://www.philips.com/about/sustainability/ourenvironmentalapproach/greenoperations/index.page (Accessed 9th March 2014)

• Philips (2014) Product RecyclingServices (Online) http://www.philips.com/about/sustainability/ourenvironmentalapproach/productrecyclingservices/index.page (Accessed 9th March 2014)

• Philips (2014) Biodiversity (Online) http://www.philips.com/about/sustainability/ourenvironmentalapproach/biodiversity/index.page (Accessed 9th March 2014)

• Sustainability at work,. (2013) Benefits of sustainability (Online) http://www.sustainabilityatwork.com.au/sustainability/benefits-of-sustainability/ (Accessed 9th March 2014)

• Thwink.org (2012) The Three Pillars of Sustainability (Online) http://www.thwink.org/sustain/glossary/ThreePillarsOfSustainability.htm (Accessed 9th March 2014)