Philips launches corporate Responsibility Report

This initiative not only puts into practice company-wide efforts in the fields of economic, environmental and social responsibility, it sets measurable targets the company is committed to achieving.

Although the report is new, corporate responsibility or "sustainability" is not and forms a fundamental part of Philips' heritage and its commitment to future corporate growth. The report also is in line with steps Philips has taken in recent years to increase its transparency and accountability.

"The Philips' brand has always been associated with improving the quality of people's lives. Our founders, Anton and Gerard Philips, believed that there was no difference between doing business and practicing sustainable business," explained Robert van de Riet, CEO Philips Country Organisation, United Arab Emirates. "With our recent sustainability commitments, we are living up to the challenge of making things better and further proving that sustainability is part of our company's DNA."

The Sustainability Report covers the performance of Philips in the areas of economic, environmental and social responsibility. In defining clear goals and areas for improvement, Philips has followed the core indicators outlined by the Global Reporting Initiative, the world's most recognised and respected set of reporting guidelines.

In the field of Economic Responsibility, "Philips has always believed that responsible business is good business. Corporate governance and ethical conduct as it relates to public confidence in capital markets continues to be primary goal for Philips and our performance on the Dow Jones Global Index (DJGI) and the Dow Jones Sustainability Index (DJSI) shows that we are on our way to achieving this goal. Philips, which has outperformed both indexes over the past five years, is the sustainability leader in the consumer electronics sector of the DJSI," said van de Riet.

Regarding Environmental Responsibility, Philips has had an environmental policy since 1987 and a multi-year program since 1998. That program has been incorporated into the sustainability report as EcoVision 2002-2005. Philips has recorded many successes in this sphere. For example, on a comparable basis and after adjustment for production fluctuations, waste and water use across Philips factories in 2002 was reduced by 16% and energy consumption by 8% compared to 2001.

Also, a number of products were introduced that met the company's stringent Green Flagship status, which identifies a product as being Eco-designed for significantly improved environmental performance. One example is the 150S3F LCD Monitor, which uses 20% less energy and 23% less packaging than the average of its two closest competitors.

Regarding Social Responsibility, Philips continues to live by its heritage and uses the company's resources and special capabilities to enhance the lives of employees and society at large.

"Philips supports numerous projects all over the world, linked to the scope of our business in lifestyle, technology and healthcare," explained van de Riet. "Here in the Middle East, we have instituted a multi-year programme to refurbish children's play areas in hospitals across the region. Since this project began in early 2002, we have renovated rooms in four hospitals across the United Arab Emirates that have helped improve the stays of their young patients."

As well, Philips will apply its expertise in research and design to support its sustainable business practices. Ongoing qualitative research projects are exploring what makes life better for different people and different cultures, taking into account factors like generation, gender and social norms.

"Sustainability is one of the key drivers behind the development of new products. Many of our innovations find their roots in Philips Research laboratories where we continuously try to shape new technologies to meet the needs, not only of our customers, but society at large. It is Philips' aim to use our technology to help shape a richer future," concluded van de Riet.