It scores well in the Energy criteria for third-party verified disclosure of greenhouse gas (GHG) emissions of its own operations, and for progress to reduce its GHG emissions. Its short-term targets to increase energy efficiency by 25% and increase use of renewable energy to the level needed to achieve its 2% carbon footprint reduction target end this year. New longer-term targets beyond 2012 – GHG reduction by a further 30% by 2015, and to use 100% renewable electricity by 2020 – are needed. The company loses much of its previous advocacy score, as it has been relatively silent on climate advocacy in the past twelve months.
On Products, Philips has a number of products free from polyvinyl chloride plastic (PVC) and brominated frame retardants (BFRs), as well as six phthalates and antimony. Although Philips no longer sells TVs, it was the first company to release a PVC/BFR-free TV, the Econova LED TV. It needs to commit to phase out exempted uses of beryllium and all phthalates. Philips needs to specify post-consumer recycled plastic, and to report the percentage it currently uses. Philips fails to score points on product life cycle, as it does not publicly disclose the warranty and spare parts availability for its main product lines.
Philips scores the best in the Sustainable Operations criteria, for its policy and practice on conflict minerals, and has disclosed mapped smelters or suppliers. There is room for improvement in its chemicals policy and management with advocacy on restrictions of hazardous substances. Philips’ take-back and recycling programme must expand beyond the pilot project stage, in particular to countries where e-waste legislation is not in place. The company also lacks a sustainable paper procurement policy.
Philip's performance in detail: Download the company’s Scorecard here