In 2015, during the COP21 UN Climate Conference in Paris, Philips committed to become carbon neutral in its operations (i.e. its industrial and non-industrial sites, business travel and logistics) by the end of 2020. Next, in 2018, Philips committed to long term CO2 reduction targets reducing total CO2 equivalent (tCO2e) emissions from its industrial and non-industrial sites by 75% by 2025, and 90% by 2040, compared to their 2015 emissions, together with a commitment to reducing indirect greenhouse gas emissions across its entire value chain by 4% by 2025, and 11% by 2040, compared to 2017.
As a health technology industry-first, Philips has had these new CO2 emission targets assessed and approved by the Science Based Targets initiative (SBTi) – a collaboration between the CDP, the United Nations Global Compact (UNGC), the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) aimed at driving ambitious corporate climate action.
In order to deliver on its carbon neutrality ambition, Philips has developed a programme that links to its full value chain, ranging from eco-design to energy-efficiency improvement measures, on-site renewables, green electricity sourcing to green logistics.
One lighthouse project that Philips worked on related to the sourcing of green electricity through so-called Power Purchase Agreements. Together with DSM, Google and Nouryon ((formerly AkzoNobel Specialty Chemicals)) it founded the Dutch Wind Consortium.
Subsequently, the Consortium closed two Power Purchase Agreements in the Netherlands, with the Krammer and Bouwdokken windfarms in the Zeeland province. As a result, as of 2019, all Philips’ sites in the Netherlands are powered by Dutch wind energy. A case study on this unique consortium has been written by the Business Renewable Centre and the Rocky Mountain Institute.