Philips records success in sustainability

These and other achievements were revealed in the recently issued 2004 Philips Sustainability Report, which reinforces the company's leadership in the field of corporate social responsibility and its commitment to fully embed sustainability into every part of its business. The report shows why the Dow Jones Sustainability Index ranked the company No. 1 in the cyclical goods & services category for the second year in a row.

"Sustainability, quite simply, is a central part of what Philips is, what we aspire to and how we do business. It makes sense that socially and environmentally responsible behaviour contributes to sustained profitable growth and value creation," said Louis Hakim, CEO Philips Middle East. "We will strive in 2005 and beyond to achieve further progress in embedding sustainability throughout the organization and into our supply chain as well."

In 2004, Philips increased supplier involvement by urging them to sign a Declaration of Sustainability, which covers health, safety, the environment and working conditions. Philips also began an extensive supplier audit program on sustainability compliance that included the training of 400 internal assessors who will help implement a new Global Supplier Rating System.

On the manufacturing front, the company launched 21 environmentally friendly Green Flagship products - a 400% increase over the previous year - which join the more than 100 Green Flagships already on the market. Among the new products is the iU22 ultrasound scanner, which weighs 22% less, eliminates 82% of the hazardous substance mercury, reduces energy consumption by 37% and uses 20% less packaging.

In the communities in which Philips operates, the company has invested 9 million Euros in more than 200 projects to provide healthcare and education to the underprivileged. Other efforts include the launch of two pilot projects in India and Brazil as part of Philips' New Business Initiatives program designed to promote the exploration of new business models.

In the Middle East, Philips has continued its three-year-old sustainability program - a home- grown social responsibility initiative that supports hospitals and special needs centres for children. Since 2002, Philips has completed 12 projects in the Middle East. This includes renovations of children's wards in six hospitals, equipping rooms at an autism centre and a special needs centre in the UAE, fitting out four therapy rooms in special-needs centres in Saudi Arabia and helping one hospital renovation in Iran.