Environmental Profit & Loss – why, what, how?

Juliette Herin Philips Innovation Services

Roel Drost Ecochain

About Philips Innovation Services

Philips Innovation Services accelerates your business strive for business excellence and growth. We work for Royal Philips and all other companies.

Philips EP&L - why

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• Strengthen Philips Sustainability program: Healthy People & Sustainable Planet

• Stimulate innovation and awareness in the Philips business units

• Investors & sustainability ratings

• Customer requests for data transparency • Environmental footprinting is becoming

the standard for communicating environmental performance

Philips Environmental Profit & Loss account (EP&L) Based on Life Cycle Assessment methodology

EP&L discussed at General meeting of shareholders

Product hotspots Components hotspots

Company hotspots

Supplier hotspots

Environmental Intelligence…

How we did it…

Scope

1. Net Bill of Materials 2. Excluded packaging, consumables 3. Environmental benefits not included

Approach

* Resource depletion impact category is excluded in the

monetization

• LCA based on reference products • ReCiPe environmental impact

standard • Eco-Invent references • Monetization of ‘midpoint

indicators’*

• Cradle-to-grave • Entire product portfolio

based on ref. products1

• All business activities2 • All environmental impacts in

ReCiPe3 CE Delft environmental prices

Philips EP&L - why unique

• Uses open source methodology & standards – every one can reproduce !

• Reasonable external assurance by EY

• It is software enabled, owned in-house (‘EcoChain’) and hence repeatable at low costs