How Philips' Sustainable Manufacturing Boosts Healthcare

The healthcare industry faces numerous sustainability challenges, many of which are difficult to overcome.

Philips’ 2024 Sustainability Report highlights the company’s efforts to reduce the environmental impact of its operations, taking significant steps in the right direction.

For the first time in 2024, Philips achieved 100% EcoDesigned new product introductions. These products are designed to enhance energy efficiency, eliminate hazardous substances, optimise material use and improve packaging.

“We are proud of the progress we made in 2024, executing our focused strategy to improve people’s health and well-being, creating sustainable long-term business value for all our stakeholders,” says Marnix van Ginneken, EVP, Chief ESG and Legal Officer at Philips. 

“Our sustainability-led partnerships with customers and suppliers highlight the potential for significant cost savings, improvements in energy efficiency and expanding access to care in and outside the hospital, while the company continues to explore ways to provide consumers with greater choices to live sustainably.”

Expanding sustainable innovation

Philips has expanded its range of energy-efficient, compact and lightweight healthcare solutions.

Key innovations in 2024 include:

• Helium-free MRI operations: These machines combine a compact design with increased flexibility, improving access to advanced MRI in remote locations. The PowerSave+ feature ensures further energy savings by automatically switching to stand-by mode after 30 minutes of idle time.
• BlueSeal Magnet Technology: This technology has saved more than 2.75 million litres of helium since 2018, eliminating the need for refills of helium – a scarce resource – even in the event of a shutdown.

In the Personal Health segment, Philips has expanded its Refurb Edition and local takeback systems across several European markets.

This initiative gives toothbrushes and shavers a second life, reducing the need for raw materials to produce new products.

Progress on emissions reduction

Philips has made considerable progress in reducing CO₂ emissions across its operations, logistics and value chain by adopting low-carbon energy alternatives and optimising planning.

In 2024, nearly half of all purchases (by spend) came from suppliers with science-based climate targets, a slight increase from 46% in 2023.

The company also highlights that its collaboration with suppliers has led to continuous improvement in skills, which has had a positive impact on overall quality and cost management.

Philips continues to work alongside customers globally to improve health outcomes and tackle challenges such as the cost of care and staff shortages.

Philips collaborates with healthcare providers globally to tackle pressing challenges while reducing environmental impact, including:

• Champalimaud Foundation in Portugal: Achieved a 24% emissions reduction per exam in its radiology and nuclear medicine department within the first year of partnership.
• County Durham and Darlington NHS Foundation Trust in the UK: Identified key areas for sustainability enhancement in ICU care, from patient discharge to supply chain waste reduction.
• Vanderbilt University Medical Center in the US: A cradle-to-grave analysis of hospital-based radiology services revealed that energy consumption from imaging equipment accounted for over 50% of greenhouse gas emissions.

Social impact

Philips' strategic focus on innovation, sustainability and energy efficiency has positively impacted the lives of 1.96 billion people in 2024, according to the report. The company aims to improve 2.5 billion lives annually by 2030.

Internally, Philips engaged 3,000 people leaders on its purpose, strategy and culture.

For the sixth consecutive year, it has been recognised as one of the world’s best employers by Forbes, a reflection of its commitment to responsible business practices.

Robert Metzke, SVP and Global Head of Sustainability at Philips, said on LinkedIn: “Above and beyond these results, what stands out to me personally are the meaningful dialogues and continued collaboration with dedicated colleagues, customers, partners and suppliers.

“It sparks so much energy in our work and motivates people every day to do an even better job; structurally shaping a future where healthcare works for all: people, patients and the planet.”

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