{"id":1871,"date":"2021-05-07T14:51:15","date_gmt":"2021-05-07T12:51:15","guid":{"rendered":"https:\/\/ecochain.com\/blogs\/environmental-footprint-of-philips\/"},"modified":"2026-01-12T08:37:59","modified_gmt":"2026-01-12T08:37:59","slug":"environmental-footprint-of-philips","status":"publish","type":"customers","link":"https:\/\/ecochain.com\/de\/customers\/environmental-footprint-of-philips\/","title":{"rendered":"Driving sustainable decision making: How Philips reports its environmental profit with Ecochain"},"content":{"rendered":"

Becoming a purpose-driven company means taking on responsibility. And no one knows that better than Philips.\u00a0<\/span><\/p>\n

Not only did they set ambitious targets regarding social impact, practicing <\/span>circular economy<\/span><\/a> and <\/span>ecodesign<\/span><\/a>. At the COP21 Climate Conference in 2015, Philips committed to becoming 100% carbon neutral in its operations. And to sourcing all electricity usage from 100% renewable sources in 2020. They successfully succeeded in meeting these targets in 2020.<\/span><\/p>\n

Acting responsibly towards the planet and society is part of our DNA. I am convinced that this is the best way for us to create superior, long-term value for Philips\u2019 multiple stakeholders.<\/em><\/p>\n

Frans van Houten, CEO Philips (source: Philips<\/a>.)<\/cite><\/p><\/blockquote>\n

Naturally, it doesn\u2019t end here. Philips is committed to sourcing over <\/span>75% of their total energy consumption from renewable sources<\/b> by 2025 and reducing the CO\u2082-eq emissions in their entire value chain in line with a 1.5 \u00b0C global warming scenario.<\/span><\/p>\n

Their efforts show. The company was again recognized as <\/span>top company for sustainability performance<\/b> in the global 2020 Dow Jones Sustainability Indices (DJSI) list.<\/span><\/p>\n

How did they get here?<\/p>\n

\"\"<\/figure>\n

Philip\u2019s Environmental Footprint\u00a0<\/span><\/h2>\n

In 2016, Philips reached out to Ecochain. They wanted help on their journey to reach their 2020 and 2025 climate targets. <\/span>Philips has an immense amount of product lines in various sectors. So, they wanted to measure their environmental footprint \u2013 fast, effectively, and efficiently.\u00a0<\/span><\/p>\n

Philips wanted to communicate their environmental footprint through the<\/span>\u00a0Environmental Profit & Loss account (EP&L)<\/b> methodology.\u00a0<\/span><\/p>\n

What\u2019s an Environmental Profit & Loss account (EP&L)?<\/b><\/h3>\n

An EP&L <\/span>is a method for placing a monetary (relating to money) valuation on a company\u2019s environmental footprint. It includes the impact derived from its business operations and its value chain, from cradle-to-grave*.<\/span><\/p>\n

In an EP&L, all impact categories (15+) have a monetary value based on their impact heaviness. With envirinmental footprint results, these values are added up to one total monetary value.<\/span><\/p>\n

*Cradle to grave assesses the environmental impact associated with all a product\u2019s life phases. From the raw material extraction phase until its waste disposal phase. <\/span><\/i>\u00a0<\/span><\/p>\n

Why is an EP&L so useful?<\/b><\/h4>\n

Because an EP&L is expressed in <\/span>economical valuations<\/b> (\u00a3, $ and \u20ac) instead of different impact outcomes such as kg CO\u2082-eq or kg CFC-11-eq \u2013 it makes it possible to:<\/span><\/p>\n