Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today announced its new greenhouse gas emission reduction targets for the 2020 – 2040 period. As a health technology industry-first, Philips has had its 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. The approval confirms that Philips’ long-term targets are in line with the level of decarbonization required to keep global temperature increase below 2°C compared to pre-industrial temperatures, as described in the Fifth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) , and set out in the Paris Agreement on climate change.
Philips’ new science-based CO2 emission targets for the 2020 – 2040 period are an extension of the company’s existing commitment to becoming carbon neutral in its own operations (i.e. its industrial and non-industrial sites, business travel and logistics) by 2020, and go beyond Philips’ own operations to cover a broader scope of the company’s value chain. The new targets will see Philips 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.”Companies that have set science-based targets are showing real leadership for the world to reach the goals of the Paris Agreement,” said Lila Karbassi, Chief Programs, United Nations Global Compact, one of the SBTi partners. “Science-based targets are now emerging as a ‘new normal’ in the way businesses are developing their strategies for the future. They give companies a clearly defined pathway for future-proofing growth in the transition to a net-zero future. This is not only good for the planet, but also makes business sense.”