3. 3
CE team within Philips:
Driving circular thinking
through…
• Generating proof points & metrics
• Thought leadership and collaborations
• Driving internal engagement
• Embedding in Philips processes
5. 5
Our vision is to make the
world healthier and more
sustainable through
meaningful innovation
6. 6
A healthier and more sustainable world
Source: Ecological Footprint Atlas 2009
UN Human Development Index = life expectancy + education level + purchasing power
7. 7
Access to Care Well-Being
Supporting
Society
Green Innovation
Green Operations
Circular Economy
Low ecological
footprint
High human development
Our future growth depends on decoupling of
development and footprint
8. 8
• Preserve embedded labor,
capital costs and materials
of hardware
• Monetize them as long as
possible at highest value,
ideally as service
• Enabling future growth by
decoupling from resource
use
• Big data makes it efficient
9. 9
Towards economic and ecological value creation
Circular models
have cost saving
potential of EUR
250-500 Billion
annually for
European
economy
Source:
Ellen MacArthur
Foundation, 2013,
Towards the Circular Economy
11. 11 Light as a Service
Refurbished MRI
Modular Ultrasound
Recycled content
12. 12
• Lighting upgrade to 25 parking
garages in WMATA (Washington DC,
USA) transit system
• Over 15.000 LED fixtures with
wireless controls
• Ownership of the installation
remains with Philips
• 11 year initial contract for managed
services
• Improved modular product design
to support maintenance and
upgradeability
Light-as-a-service
13. 13
Refurbishing solutions for MRI systems
• Systems rebuilt and tested
according to manufacturers
specifications
• New vacuum components
• Customized configuration
• Latest software upgrades
• Latest hardware upgrades
• Original parts
• 60-85% of new price
• Same guarantee as new
14. 14
Philips Healthcare Parts Harvesting
• Avoid value leakage throughout the value
chain
• Ensure maximum usage of parts
• Parts and installation accessories collected
after any installation, de-installation, repair
or maintenance service
• Parts harvested cleaned and tested to
ensure quality as new parts
• Strong infrastructure for trade-in
equipment, planning and logistics in place
• Collaboration across functional
organizations and businesses
15. 15
SENSEO Up built from recycled plastics
Baseplate 90% recycled
ABS from Post Consumer
E-waste
Inner frame (not visible)
40% Post Industrial
Recycled glass fiber
reinforced polypropylene
Total: 13% recycled plastics / 20% cost savings
17. 17
Strategy and activities:
Lighting Solutions
service
Value will be created by offering Light as a Service including lifecycle
extension opportunities, upgrades and repairs.
refurbish
The possibilities for a refurbished product business will be analyzed.
parts harvesting
A pre-owned market for used parts and luminaires reuse will be
explored and developed.
recycle
The cooperation with the established local Collection and Recycling
Service Organizations will be continued and enhanced.
18. 18
Strategy and activities:
Lighting Solutions
business models
• Scale up service business
• Develop sales tools for circular value propositions
design
• Expand the portfolio of circular products
• Implement a circular economy scorecard
collaboration
• Co-create and cooperate with like-minded companies
• Enhance customer relationships with customized solutions
reverse logistics
• Extend possibilities for take back and recycling
• Enhance collaboration with recyclers and distributors