Reference no: EM133671680

Question: Philips is a powerful company in the healthcare sector. As a leading health technology company, Philips believe that innovation can improve people's health and healthcare outcomes, as well as making care more accessible and affordable. Their innovative strategies combine a drive for systemic changed, smart devices, informatics and services, and leverage big data - helping customers deliver on the Quadruple Aim (better health outcomes, improved patient experience, improved staff experience, lower cost of care) and helping people to take better care of their health at every stage of life. Philips takes the sustainability transition very seriously and is underpinned by a strong ESG focus. ESG are the new finance criteria that regulate the funding and financing of corporate activity and stand for Environmental, Social and Governance standards that companies must adhere to in the corporate world post COVID-19. At Philips they engage in Environmental action to minimize impact on the planet by taking climate action, driving the transition to a circular economy, implementing EcoDesign in our products, and partnering with suppliers to reduce their environmental footprint; they deliver social impact by improving people's health and well-being, offering the best place to work, and engaging with suppliers and the communities where they operate; and in governance they anchor everything they do in ethical and responsible practices. Philips Circular Economy Approach: Because of their approach to circular economy in healthcare and proximity with hospitals and clinics all over the world they have been approached by multiple clients to develop solutions towards upcycling medical waste - which configures a real tragedy post COVID-19. In general, medical waste refers to medical items that may come in contact with body fluids, blood, and other potentially contaminated materials. Take single-used plastics as an example, it is estimated that single-used plastics makes up 20% of the entire medical waste. If Philips found ways of educing/ upcycling/ transforming this waste it would create cost reduction benefits for the clients whilst contributing to a better planet. It would also create a new line of business for Philips. Philips has tremendous objectives for circular economy. According to their corporate site their targets for 2025 are: 1) Generate 25% of our revenue from circular products, services and solutions; 2) Close the loop by offering a trade-in on all professional medical equipment, and taking care of responsible repurposing.