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Philips Sustainability Report: GHG Emissions Down 9%

Philips’ carbon footprint declined almost 9 percent year-on-year, according to the company’s latest combined annual and sustainability report.

The electronics company cut its emissions of carbon dioxide equivalent from 1,771 kilotons in 2011 to 1,614 kilotons in 2012. Its sales increased 9.7 percent over that time period.

This emissions metric has declined consistently since at least 2008, which is the earliest year measured in the report. According to Philips the metric has declined 25 percent since 2007, meeting the company’s “EcoVision4” target. The reductions since 2007 were achieved through an ongoing energy efficiency improvement program, a green logistics drive, the company’s changing industrial footprint and the increase in purchased electricity from renewable sources, the report says.

The company’s scope 1 emissions increased 2.7 percent year-on-year, from 431 kilotons in 2011 to 443 kilotons in 2012. This is partly down to what Philips calls a “significant increase” in reporting sites due to a number of acquisitions that started to report in 2012.

Philips’ scope 2 emissions dropped 4.2 percent year-on-year, from 427 kilotons of CO2e in 2011 to 409 in 2012.

Its scope 3 emissions fell 16.5 percent year-on-year, from 913 kilotons of CO2e in 2011 to 762 kilotons in 2012. Due to what Philips describes as “a stringent travel policy,” the company’s total emissions from business travel decreased 15 percent in 2012. Philips says it continues to promote video conferencing as an alternative to travel; as a result air travel is down 24 percent, saving a total of 38,000 metric tons of CO2 emissions in 2012.

In 2012, logistics CO2 emissions decreased 17 percent, partly due the exclusion of logistic movements related to the company’s Television business. The TV business signed a joint venture agreement with TP Vision in April 2012, and Philips therefore reported the business’s results under the “discontinued operations” sections of the report. It also lowered logistics emissions through a continued focus on efficient container utilization, reduced mileage in road freight, and a shift from air to sea freight, the report says.

Philips’ operational energy efficiency improved 7 percent in 2012, from 1.24 terajoules per million euro sales in 2011 to 1.15 terajoules per million euro sales in 2012, the report says.

Philips’ sales from green products increased from €8.8 billion ($11.5 billion) in 2011 to €11.3 billion, or 45 percent of sales, in 2012. This puts the company on track to reach its target of 50 percent in 2015, the report says.

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