Essay on philips company

Company background and History:

Philips is a Dutch multinational company the main offices in  HYPERLINK ” o “Amsterdam” Amsterdam, it’s a one of the largest electronics companies around the world, mainly focused in the area of lighting and healthcare.

21st century Philips focused on developing healthcare and makes people life more easy by designed AlluraClarity which makes excellent visibility at low X-ray dose levels, providing new image feature for CT scans, and the important news is Philips trying to increase human quality of living through high view invention and the goals to lead that by using the earth’s limited resources in a probable way.

This makes the company’s mangers to think hard and in roll on work and more focusing on the environmental execution of the products and services, that is includes electronic waste arrangement and management, recyclability design for reuse among other companies and factors.

December 2015 Philips has declared its commitment to becoming carbon neutral by 2020. The goals to reduce carbon emissions in the operations by decrease the energy that they use, logistics and business travel.

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Next, the will focus on sourcing energy from recycling sources. Any remaining emissions that cannot be directly changed to renewable energy will be compensated by a voluntary carbon off-setting program.

 Green strategic points

What are the major factors that contribute to carbon emission in an organization?

  • Philips calculate every 3 months the Operational Carbon Footprint which is includes greenhouse gas emissions from:
  • Industrial sites – manufacturing and assembly sites
  • Non-industrial sites – offices, warehouses, showrooms, IT centers and Research &Development facilities
  • Business travel – rental cars, and airplane travel
  • Logistics – air, seas, ocean and road transport

Philips Eco Vision:

Philips designed program called Philips’ Eco Vision sustainability program to reduce 40% of carbon emissions in between 2007 – 2015 ,1n 2014 the operational CO2 footprint was 36% lower than in 2007 that mean they are in the right track to meet their reduction goals.

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to reach the target they kept a three step approach, first focus their efforts in reducing the energy consumption and CO2 emissions, that reduce both costs and emissions. second, they focus on generating renewable energy. and finally, consider purchasing of electricity generated by renewable sources.

Philips makes some decisions to conducted emissions reduction projects like, reducing energy from building services such as heating, ventilation, air conditioning by replacing old ac unit with new energy efficient and installation of occupancy sensor, and lighting by change conventional lighting to more efficient lighting (LED), also use video conferencing to reduce business travel.


One of the targets of Philips sustainability program Eco Vision, is the global collection and recycling and the amount of recycled materials in our products by 2015 compared to 2009. The rate of collection and recycling reported in 2014 was 31,500 tones a 3% increase compared to 31,000 reported in 2013. E- Waste is one of the fastest growing waste and it is important that products must recycled at its end of life. Recycling it can reduce the Carbon footprint which is known as the total set of greenhouse gas emissions happened by an organization, event, product or person.

Philips recycles used products and packaging materials with conformity in all environmental laws. They work with some organizations. Depends on where you are around the globe, and even Design products easy to recycle part of it. Design for recyclability will also allow the company to move to the inner loops of circular economy such as parts collection.

In 2015, Philips raised the level of materials that delivered for recycling to 83% of its total waste, up from 80% in 2014. The company also continued its sustainability over across its portfolio. For example, Healthcare added an energy-efficient to its MRI systems, with energy savings in various non-scanning modes of 30-40%. In Lighting, Los Angeles became the first city in the world to control its street lighting through a developed Philips management system that uses mobile and cloud-based technologies, leading to very important energy efficiency benefits. In Consumer Life, continued green investments resulted in very high Green Product sales in all business groups.


As part of our Green Innovation drive, Philips apply Eco-design in designing their products and solutions., Eco-design is the way that considers all parts of product development and design. This includes a life-cycle assessment to know the environmental effect at each stage of a product’s life from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling.

The Eco-design process led Philips to define six key Green Focal Areas for improved environmental performance. Philips products that successful existing products, competitor products, or at least minimum legislative requirements by at least 10% in one or more of these six key Green Focal Areas are known as Green Products:

  • 1-Energy. Energy usage is often the most important factor in determining a product’s lifecycle environmental impact. By improving the energy efficiency of a product, we can decrease its energy consumption and carbon footprint.
  • 2-Packaging. Lightweight packaging, recycled content or recyclable packaging helps reduce resource consumption, good for human health and reduces the respective product’s carbon footprint.
  • 3-Substances. Products are made using a range of substances, some of which may have an effect on the environment. By minimizing, change or eliminating the use of hazardous substances, we can reduce our products ecological impact.
  • 4-Weight & Materials. By reducing the average of materials we use, we can use more less resources and less energy during manufacturing and/or transportation. Also the choice of materials e.g. precious metals, bio-based, bio-degradable materials – can have a positive or negative ecological impact.
  • 5-Circularity. Circularity refers to the potential of a system, product or component to contribute to the circular economy. It is calculated by assessing environmental performance over multiple life cycles, taking into account, for example, the recovery of materials and their reuse in new products. Upgrading, serviceability, refurbishment, spare parts harvesting, increasing recycled content and recyclability – they all help reduce the consumption of resources. Designing products for modularity, ease of disassembly, component re-use and material purity also stimulates the circular economy.
  • 6-Lifetime. Extending the useful lifetime of a product reduces the resource consumption and transportation emissions associated with the introduction of new products.

3-Green value:

As Philips is the part of its 5-year sustainability program, Healthy people, sustainable planet, which was started in 2016, Philips is committed to becoming carbon neutral in its manufacturing and processes , to increase its Green Revenues to 70% of sales, and to have 15% of its revenues created through circular economy-driven propositions by 2020. Circular Revenues are defined by revenues created through products and solutions that meet particular Circular Economy requirements. These include performance and access-based business models, refurbished, repaired and remanufactured products and systems, refurbished, repaired and recycling components, upgrades or refurbishment on site or distant, and products containing at least 30% recycled plastics.

Philips reported moreover progress in its sustainability performance in 2017 with Green income increasing to EUR 10.7 billion, now representing 60% of total revenues that mean Green Revenues are revenues generated through products and solutions that offer a huge environmental improvement in one or more Green Focal Areas: Energy efficiency, Packaging, Hazardous substances, Weight, Circularity and Lifetime reliability. For biomedical equipment, remote serviceability is another Green Focal Area. The lifecycle approach is used to determine a product’s overall environmental improvement. It calculates the environmental effect of a product over its total life cycle (raw materials, manufacturing, product use and disposal). Philips sustainability update is an integral part of the Philips annual report. And report

performance underlines their commitment to embed sustainability in the way that Philips operates and innovates, and shows the progress of their journey to improve the lives of 3 billion people a year by 2025. And they are in well on track, having already touched the lives of 2.2 billion people in 2017. Achieving their sustainability goals requires a new way of doing business, and they very proud that they are addressing some of the world’s most pressing challenges by contributing to the UN Sustainable Development Goals, while with regard to natural resource limitations and taking a circular economy approach.

Works Cited

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Essay on philips company. (2019, Dec 05). Retrieved from

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