Transformational Company Case Study: Sustainable Customer Offerings

Philips Sets Target to Increase Sustainable Consumer Offerings
Oct 2, 2013 9:00 AM ET

Sustainable Customer Offerings – Integrate sustainability into the full life-cycle if product and service design, use and disposal, and advance sustainability through continuous improvement of core products and services

Philips (Royal Philips Electronics) is a diversified health and well-being company, focused on improving lives through innovations.  As a leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions. Through their EcoVision program Philips has set a target to increase their sustainable customer offerings to 50% of total sales by 2015.  In 2012 Green Product sales increased to 45% of total sales ($15 billion USD) putting them on track to reach their target.  By design, green product sales contribute significantly to Philips total revenue stream.




To be considered a “Green Product”, a product needs to prove leadership in at least one Green Focal Area. This is done either by outperforming reference products (which can be a competitor or predecessor product) by at least 10 %, or by being awarded a recognized eco-performance label. The Green Focal Areas are Energy Efficiency, Packaging, Hazardous Substances, Weight, Recycling and Disposal and Lifetime Reliability.




To reach their goal of 50% of total sales coming from Green Products, Philips is committed to continuously work on the environmental performance of their products, which includes designing for energy efficiency, chemical content of products, life time reliability and recyclability. To support this goal Philips launched 269 new ENERGY STAR-qualified products in 2012. In addition, Philips views recyclability as critical to reducing the environmental impact of products at the end of their life and to reducing the costs of recycling. As a result, Philips aims to double the collection and recycling of its end-of-life products, as well as the amount of recycled materials used in Philips products by 2015 (compared to 2009).  By 2015 Philips has targeted to be using 3500 tons of recycled plastic in their products.