6th October 2022
The world is facing the combined challenges of climate change, resource scarcity, supply disruptions – to name a few. And now, most recently, an unprecedented rise in energy prices is adding even more pressure on households and businesses. The time for meaningful action is now. And it is no longer a matter of choice.
At Signify, we believe that by changing how we create and use light, we can improve lives and positively impact the planet. We have identified five strategic areas where we will grow our business while furthering our contribution to a better and more sustainable world. These growth areas are defined based on the business environment and challenges facing society and are tied to the United Nations Sustainable Development Goals (SDGs).
In 2015, the UN established 17 global goals for sustainable development, known as the Sustainable Development Goals. The SDGs are the world's shared plan to end extreme poverty, reduce inequality, and protect the planet by 2030. The SDGs recognize that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests, according to the official UN site.
At Signify, we report our contribution to six SDGs: Good health and wellbeing (#3); Affordable and clean energy (#7); Decent work and economic growth (#8); Sustainable cities and communities (#11); Responsible consumption and production (#12); and Climate Action (#13). We have chosen the SDGs where Signify can have the most impact through the products and services we offer and the actions we undertake ourselves.
Let me take you back to 2015 when Signify committed to a goal of becoming carbon neutral and converting to the use of 100% renewable electricity in all our operations. With a global manufacturing footprint, supply chain, nearly forty thousand people, and a global presence, those commitments felt like a big step at the time. We created a bold plan, with over 200 emission reduction initiatives worldwide, and were able to become carbon neutral in our operations in 2020.
We then wanted to make our impact even bigger. So we have embarked on a new five-year journey out to 2025, focusing on doubling our positive impact on the environment and society under the Brighter Lives, Better World 2025 sustainability programme, going beyond carbon neutrality. The programme uses the SDGs as its strategic compass to work towards the following four goals:
The cost of inadequate action towards climate change has moved to being measured in terms of impact on human life. From storms causing widespread severe disruption, to thousands of people being displaced from their homes due to flooding and other devastating events - we are faced by "a code red for humanity."
Sustainability is at the heart of our strategy and purpose: to unlock the extraordinary potential of light for brighter lives and a better world. Since 2015, we have been guided by ambitious targets and have learned some key lessons:
To date, we are on track towards our 2025 sustainability commitments, and have increased our positive contribution to our six priority SDGs.
Lighting makes up 13% of global electricity consumption and 5% of global greenhouse gas emissions. Making the change toward energy-efficient lighting can have major positive effects for cities.
At Signify, we realize the potential of light. We advocate an accelerated transition to energy-efficient LED lighting to help households and businesses while positively impacting the UK's Race to Zero. With energy prices reaching all-time highs and global emissions rising at unprecedented levels, it is now more urgent than ever that businesses in the UK and Ireland lead by example and take quick action to tackle climate change. In the UK's Race to Zero, a green switch to LED lighting in the professional market could mean eliminating 3.9 million tonnes of CO2 emissions and saving a total of GBP 3.3 billion per year. The impact is not limited to businesses. For an average British household, switching to LED lighting can help save up to £250 per year (i.e., £15-£18 per light bulb). These savings are bound to increase with every change in price cap. This can prove to be particularly helpful for families pushed into fuel poverty with the recent changes in the price cap.
Our "A-Class" light bulb launched in 2021 is another such example. This first Philips LED A-class bulb meets the more stringent EU Ecodesign and Energy labelling regulations that came into effect on September 1, 2021. The new Philips LED bulbs with a 3.5x longer lifespan and a further 60% reduction in energy usage versus a regular LED provide consumers with a smart investment for both the planet and their bank account.
According to the Sustainable Development Goals Report 2022, cascading and interlinked mega trends or crises are putting the 2030 Agenda for Sustainable Development in danger. With less than 10 years to meet each of the 17 SDGs, an ambitious global effort is underway to deliver on the 2030 promise. However, action to meet the goals is still not happening at the speed or scale required.
We still have a chance to achieve a better, more sustainable future that leaves no one behind. To achieve our climate and SDG agendas, we must make decisive progress on both. For this, we need stronger policy packages covering regulations, information, and incentives to play a key role in accelerating energy efficiency and related measures. From the deployment of smart, efficient lighting, upgrading homes with better insulation, improving the fuel efficiency of cars, and switching to EVs, as well as fostering investment in new industrial machinery.
If everyone takes small steps, we'll make big strides together.
Signify (Euronext: LIGHT) is the world leader in lighting for professionals, consumers and the Internet of Things. Our Philips products, Interact systems and data-enabled services, deliver business value and transform life in homes, buildings and public spaces. In 2023, we had sales of EUR 6.7 billion, approximately 32,000 employees and a presence in over 70 countries. We unlock the extraordinary potential of light for brighter lives and a better world. We have been in the Dow Jones Sustainability World Index since our IPO for seven consecutive years and have achieved the EcoVadis Platinum rating for four consecutive years, placing Signify in the top one percent of companies assessed. News from Signify can be found in the Newsroom, on X, LinkedIn and Instagram. Information for investors is located on the Investor Relations page.