# Get inspired: Royal Philips

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### Dedicated Supply Chain Emission Targets

Philips is committed to decarbonize its value chain in line with a 1.5°C global warming scenario, adhering to its science-based emission reduction target. Having achieved carbon neutrality in own operations since 2020, Philips is focusing on reducing scope 3 emissions recognizing the opportunity to achieve outsized impact – at least seven times greater than lowering emissions in own operations. To reduce Scope 3 emissions, Philips aims for at least 50% of its suppliers, measured by spend, to adopt science-based reduction targets by 2025. Suppliers are also expected to establish management systems in accordance with ISO standards in areas of energy, carbon inspection and product carbon footprint.


### Supplier Collaboration for Decarbonization

Taking ownership of and collaborating with suppliers to reduce supply chain emissions is essential for Philips to decarbonize in line with its science-based targets. The company has established a maturity-based supplier collaboration model.Through the supplier collaboration model, tailored climate action guidance and feedback is shared with suppliers to actively build suppliers’ capabilities in climate action, enhancing their approach and performance. Notably, in 2022, 76% of suppliers received customized feedback and guidance. Among other things, Philips provide suppliers with detailed cost impact and return calculations for proposed carbon reduction measures to equip suppliers with actionable strategies to achieve cost-effective carbon reductions and measurable returns on investment. In addition, Philips is partnering with and utilizing the CDP supply chain program for insights into suppliers’ climate action maturity, enabling suppliers to set expectations for their commitment to science-based targets and measure progress towards them.The collaboration model has resulted in greater transparency and insights, accelerated improvement, and enabled cross-learning. In addition, Philips’ supplier engagement approach has improved trust in the supply chain, allowing more meaningful engagement further upstream. Finally, Philips have observed a transition from suppliers focusing on mere data collection and reporting to comprehensive emission reduction strategies. For additional information on Philip’s approach to supply chain decarbonization, please reference here and  here.


### Strong Traction and Results

Philips’ collaborative supplier engagement model has yielded notable results. In 2022, 41% of Philips’ purchases (by spend) were from suppliers committed to science-based emission reductions, approaching the 50% target set for 2025. Furthermore, Philips have observed a substantial interest among suppliers in reducing their climate impact, recognizing it as both a competitive advantage and a response to customer demands.