Philips 2015 Annual Report Download - page 187

Sustainability statements 14
Annual Report 2015 187
Lastly, all scope three emission factors for business
travel and logistics have been updated from a bespoke
emission factor set to DEFRA guidance as well. The
latter has had an upward eect on our scope 3
emissions ranging from 15% to 32% in the years
2007-2015.
The emissions of substances data is based on
measurements and estimates at manufacturing site
level. There is therefore an inherent uncertainty in our
calculations. The gures reported are Philips’ best
estimate. As our insight increases, we may enhance the
methodology in the future.
Integration of newly acquired activities is scheduled
according to a dened integration timetable (in
principle, rst full reporting year after the year of
acquisition) and subject to the integration agenda. Data
for activities that are divested during the reporting year
are not included in full-year reporting. Environmental
data are reported for manufacturing sites with more
than 50 industrial employees.
In line with the discontinued operations presentation in
the Group nancial statements regarding the Lumileds
and Automotive business, we have excluded this data
from the consolidated Sustainability data if relevant.
Where the impact of the exclusion was material, we
clearly disclosed the impact.
Data denitions and scope
Lives improved, energy eciency and materials
The Key Performance Indicators on ‘lives improved’,
‘energy eciency’ and ‘materials’ and the scope are
dened in the respective methodology documents that
can be found at www.philips.com/sustainability.
Health and safety
Health and safety data is reported by sites with over 50
FTEs (full-time equivalents) and is voluntary for smaller
locations. Health and safety data are reported and
validated each month via an online centralized IT tool.
The focus of reporting is on work-related injuries and
illnesses that predominantly occur in manufacturing
operations and Field Services Organizations for
incidents leading to at least one lost workday. Fatalities
are reported for sta, contractors and visitors and
include commuting accidents. From 2016 onward, the
annual number of cases leading to a Recordable Case
will be reported per 100 FTEs (Total Recordable Case
Rate).
General Business Principles
Alleged GBP violations are registered in our intranet-
based reporting and validation tool.
Supplier audits
Supplier audits are primarily focused on identied risk
suppliers, based on identied risk countries and on
spend of more than EUR 1 million (new suppliers EUR
100,000 and no threshold for high risk suppliers).
•Based on the Maplecroft Human Rights Risk Indexes,
risk countries for Supply Management in 2015 were:
Belarus, Brazil, China, Dominican Republic, India,
Indonesia, Mexico, Philippines, Russia and Ukraine.
•Suppliers of new ventures are included to the extent
that the integration process of these ventures has
been nalized. Normative integration period is two
years after closure of the new venture.
Green Products
Green Products oer a signicant environmental
improvement in one or more Green Focal Areas: Energy
eciency, Packaging, Hazardous substances, Weight,
Recycling and disposal and Lifetime reliability. The
lifecycle approach is used to determine a product’s
overall environmental improvement. It calculates the
environmental impact of a product over its total life
cycle (raw materials, manufacturing, product use and
disposal).
Green Products need to prove leadership in at least one
Green Focal Area compared to industry standards,
which is dened by a sector specic peer group. This is
done either by outperforming reference products
(which can be a competitor or predecessor product in
the particular product family) by at least 10%,
outperforming product-specic eco-requirements or
by being awarded with a recognized eco-performance
label. Because of dierent product portfolios, sectors
have specied additional criteria for Green Products,
including product-specic minimum requirements
where relevant.
Green Innovation
Green Innovation comprises all R&D activities directly
contributing to the development of Green Products or
Green Technologies. A wide set of additional criteria
and boundaries have been dened as the basis for
internal and external validation.
Environmental data
All environmental data from manufacturing operations
are reported on a half-yearly basis in our sustainability
reporting and validation tool, according to dened
company guidelines that include denitions,
procedures and calculation methods.
Internal validation processes have been implemented
and peer audits performed to ensure consistent data
quality and to assess the robustness of data reporting
systems.
These environmental data from manufacturing are
tracked and reported to measure progress against our
Green Operations program targets.
Reporting on ISO 14001 certication is based on
manufacturing units reporting in the sustainability
reporting system.