Environmental Profit & Loss Report by a leading technology company
Challenge: Transparency in complex supply chains
The Environmental Profit & Loss concept helps companies to put their environment into a financial perspective. Following the example of Puma, Philips wanted to create their own EP&L. But traditional approaches to LCA use a complex bottom-up approach, which requires specific skills and tools to carry out and is only usable on an individual, product-by-product basis. As a result, it’s a time consuming, costly and rigid process that is almost impossible to execute without consolidating technology.
The EP&L account is a logical next step to extend the scope from individual product value chains to Philips’ complete value chain. It will support the direction of our sustainability strategy by providing insights into the main environmental hotspots from
Frans van Houten
Solution: An integrated approach through Activity-based footprinting
With Ecochain, Philips was able to deploy Activity Based Footprinting (ABF) a unique approach resulting in fast, accurate, implementable insights into all products, simultaneously. With our platform, the company could conduct the analysis fully in-house, which enabled them own the data and results and conduct a deeper analysis.
At Philips, we fully embrace sustainability because of the benefits for societies, and because we believe that it is a driver for economic growth. That’s why we have sustainability incorporated in our company strategy
Frans van Houten
Results: A vision put into reality
By giving managers such a clearly comprehensible metric, EP&L becomes a means to identify the environmental hotspots of Philips, enabling managers to invest time and effort where it really matters. Moving forward, Philips plans to work with its supply chain by showing them how to gather actionable data from their operations. Moreover, the Philips EP&L statement (re-)confirmed that energy consumption in the use phase remains a key focus area for innovation.
Our Environmental Intelligence Platform helps Philips to continuously finetune its sustainability performance while also providing the incentive for their supply chain partners to do the same, reducing impact and increasing value for all stakeholders.
Our teams of Environmental Specialists and Business Consultants are experienced in both, Sustainability and Business Management. Because they combine the best of both worlds, they can help you set your business up for the future.
Our customers have calculated more than 250.000 footprints with Ecochain – more than any other solution in the world. Join the movement today and receive a bi-weekly update that will help you make your business more sustainable.