Philips 2014 Annual Report Download - page 187

Sustainability statements 14
Annual Report 2014 187
14 Sustainability statements
Approach to sustainability reporting
In 1999 Philips published its first environmental Annual
Report. This was expanded in 2003, with the launch of our
first sustainability Annual Report, which provided details
of our social and economic performance in addition to our
environmental results.
In 2008, we decided to publish an integrated financial,
social and environmental report, reflecting the progress
we have made embedding sustainability in our way of
doing business. This is also supported by the inclusion of
sustainability in the Philips Mission, Vision and the
company strategy. For more information, please refer to
chapter 4, Our strategic focus, of this Annual Report.
This is our seventh annual integrated financial, social and
environmental report which has been prepared in line
with the International Integrated Reporting Council (IIRC)
Integrated Reporting <IR> framework.
Philips publishes its integrated Annual Report with the
highest (reasonable) assurance level on the financial,
social and environmental performance. With that overall
reasonable assurance level Philips is a frontrunner in this
field.
Tracking trends
We continuously follow external trends to determine the
issues most relevant for our company and those where
we can make a positive contribution to society at large. In
addition to our own research, we make use of a variety of
sources, including the United Nations Environmental
Programme (UNEP), World Bank, World Business Council
for Sustainable Development (WBCSD), World Economic
Forum and World Health Organization. Our work also
involves tracking topics of concern to governments,
regulatory bodies, academia, and non-governmental
organizations, and following the resulting media
coverage.
Stakeholders
We derive significant value from our diverse stakeholders
across all our activities and engage with, listen to and learn
from them. Working in partnerships is crucial in delivering
on our vision to make the world healthier and more
sustainable through innovation. When appropriate and
relevant to our business, we incorporate their feedback
on specific areas of our business into our planning and
actions. In addition to engagement with our customers,
our suppliers, employees, investors, local communities
and governments and non-governmental organizations,
we participate in meetings and task forces as a member
of organizations including the WBCSD, World Economic
Forum, Electronic Industry Citizenship Coalition (EICC)
and the Ellen MacArthur Foundation.
A multi-stakeholder project with the Sustainable Trade
Initiative (IDH), a number of NGOs, and electronic
companies was started in 2011 and continued in 2014. The
program focuses on improving working circumstances in
the electronics industry in China.
Furthermore, we engaged with the leading Dutch labor
union (FNV) and a number of NGOs, including Enough,
GoodElectronics, MakeITfair, the Chinese Institute of
Public and Environmental Affairs, SOMO, Amnesty
International, Greenpeace and Friends of the Earth.
In addition to face-to-face meetings, webinars and social
media channels provide us with ongoing feedback on our
strategy, performance and emerging topics. Our
sustainability e-mail account
([e-mail]) enables stakeholders
to share their issues, comments and questions with the
sustainability team. As described in the Materiality section
below, various stakeholder groups have been invited to
provide input to the materiality analysis. The table below
provides an overview of the different stakeholder groups,
examples of those stakeholders and topics discussed.
Stakeholder overview (non-exhaustive)
Examples Processes
Employees - European Works Council
- Individual employees
Regular meetings, Employee Engagement Survey, employee development process,
quarterly update webinars. For more information refer to section 5.2, Social
performance, of this Annual Report.
Customers - Hospitals
- Real estate developers
- Consumers
Joint (research) projects, business development, Lean value chain projects, consumer
panels, Net Promoter Scores, Philips Customer Care centers, Training centers
Suppliers - Chinese suppliers in the Pearl
and Yangtzhe river deltas
- HP, Randstad, Maersk
Supplier development activities, supplier forums, supplier website, participation in
industry working groups like COCIR and EICC. For more information refer to sub-
section 14.2.8, Supplier indicators, of this Annual Report.
Governments,
municipalities, etc.
- European Union
- Municipalities of Madrid,
Rotterdam
Issues meetings, research projects, policy and legislative developments, business
development
NGOs - Dutch Sustainable Trade
initiative (IDH)
- Friends of the Earth
Issues meetings, cross-sector (multi-stakeholder) projects, joint projects, social
investment program
Investors - Mainstream investors
- ESG investors
Webinars, roadshows, capital markets days, investor relations and sustainability
accounts