With its business strategy focused on improving the environment and reusing materials, Philips increased its circular sales to 24 percent of total sales. For the first time, all new product introductions (NPIs) were fully EcoDesigned, contributing to better care for more people through sustainable innovation. Philips also improved the lives of 1.96 billion people by 2024 through innovative, energy-efficient solutions.
This puts the company well on track to meet its goal of positively impacting 2.5 billion people annually by 2030. And with a long tradition of reporting corporate responsibility since 1999, including an ESG report since 2008, Philips has now been able to further expand its reporting to comply with the European Corporate Sustainability Reporting Directive. All this can be read in the Philips Annual Report 2024 published in February 2025.
“We are proud of the progress we made in 2024 in implementing our focused strategy to improve people's health and well-being,” says Marnix van Ginneken, member of the Board of Management of Royal Philips. He also says that these successes have enabled them to create sustainable, long-term value for all their stakeholders. He says the sustainable partnerships with customers and suppliers demonstrate the potential for significant cost savings, improved energy efficiency and better access to care. Consumers are encouraged to have more to choose from among more sustainable products.
Environmental targets
In 2024, Philips achieved for the first time that all new products (NPIs) were 100% EcoDesigned. These products increase energy efficiency, avoid hazardous substances, optimize material use and improve packaging over the life cycle. The measures have a positive impact on the environment and healthcare. EcoDesigned products also often lead to cost reductions.
One example is helium-free MRI systems with a compact and lightweight design, making them easy to install in hard-to-reach locations and making advanced MRI care more accessible. Furthermore, the PowerSave+ feature provides additional energy savings by automatically switching to standby after thirty minutes when the system is not in use. MRI scanners with Philips BlueSeal magnet technology have already saved more than 2.75 million liters of helium since 2018, eliminating the need to refill helium in case of failure. This ensures long-term reliability and reduces environmental impact.
Second life for devices
Within the Personal Health division, the expansion of the Philips Refurb Edition and local take-back systems in several European countries ensured that toothbrushes and shavers were given a second life. With this, Philips supports consumers to make sustainable choices.
Philips' CO2 emissions were significantly reduced within its own operations, logistics and entire value chain, thanks to alternative energy sources and optimized planning. Through the supplier sustainability program, 48 percent of all procurement in 2024 came from suppliers with science-based climate targets, up from 46 percent in 2023.
Philips continues to strengthen its people-oriented organizational culture with a work environment where everyone can develop and grow. The goal is to be the best employer. Forbes again recognized Philips as one of the world's best employers in 2024, a recognition of its responsible business practices and innovative strength.
