This document discusses education for a circular economy. It provides an overview of Philips' efforts to drive circular thinking through metrics, thought leadership, engagement, and processes. Some key initiatives discussed include light as a service models, performance-based healthcare partnerships, product refurbishment programs, parts harvesting, and increasing use of recycled materials in new products. The overall goal is to preserve value by keeping resources in use for as long as possible.

1. Educa&on for a
circular economy
Markus Laubscher
Philips Sustainability
Nov 2015

2. CE team within Philips:
Driving circular thinking
through…
• Genera&ng proof points & metrics
• Thought leadership and collabora&ons
• Driving internal engagement
• Embedding in Philips processes

3. 4 November 2014 Philips Sustainability
Make the world
healthier and more
sustainable through
innova&on
Est. 1891
Headquarters in
Amsterdam, Netherlands
106,000+
Employees worldwide
in 100+ countries
€ 21.4 billion
Sales in 2014
∽70% Of porRolio is business-to-business
∽25% Of revenues are recurring
revenues

4. A healthier and more sustainable world
Source: Ecological Footprint Atlas 2009
UN Human Development Index = life expectancy + educa&on level + purchasing power
hZps://docs.google.com/spreadsheets/d/
1R610SHqETPt4CNLNn0ZfMbZAiO9LS71pCOhNEwpqIrk/edit#gid=2

5. Access to Care Well-Being
Suppor&ng
Society
Green Innova&on
Green Opera&ons
Circular Economy
Low ecological
footprint
High human development
The building blocks of our approach Circular economy promises decoupling of
development and footprint

6. • Preserve embedded
labor, capital costs and
materials of hardware
• Mone&ze them as long
as possible at highest
value, ideally as service
• Resource consump&on
is reduced
• IT & Big Data make it
possible at scale

7. 7
Towards economic and ecological value crea&on
Circular models
have cost saving
poten&al of EUR
250-500 Billion
annually for
European
economy
Source:
Ellen MacArthur
FoundaOon, 2013,
Towards the Circular Economy

8. 8
Light as a Service /
Performance-based healthcare
Product refurbishment
Modular designs deliver parts
Recycled content

9. 9
Skills to make the Circular Economy work:
Systems thinking is central
Design
Collaboration
Business
Models
Reverse
Logistics
Design products for
modularity,
upgradability,
reparability,
disassembly
Managed service
Aeer service & repair
Buy back and re-use
Pay-per-use
Soeware
Cross-chain and
cross-sector
collabora&on,
IT tools
Reverse supply chain for
Remanufacturing
Upgrade
Parts harves&ng
Materials recovery

10. 10
Our global partnerships develop educa&onal
resources you can use
Circular Economy Hub online
Higher educa&on resources
Circulate news
Disrup&ve Innova&on Fes&val
Reports on the economics of CE
Project Mainstream: Reports on
- Plas&c packaging
- Paper recycling obstacles
- Intelligent Assets

11. 11
hZp://www.theguardian.com/sustainable-
business/series/circular-economy

12. 12
hZp://circulatenews.org/

13. 13
hZp://www.ellenmacarthurfounda&on.org/
programmes/educa&on
hZp://www.ellenmacarthurfounda&on.org/
programmes/educa&on/schools-colleges

14. 14
hZps://www.thinkdif.co/

16. We are making strong progress in our
sustainability performance
1 Based on sustainability performance in Annual Report 2014
80%
of our industrial waste is
recycled waste in 20141
Green
InnovaOon
R&D in 2014
€463 Million1
14th posiOon
in Interbrand Global
Green Brands 2014
52% Green Products
in 2014 (% as part of total sales)1
13,000 tonnes
recycled materials
used in products 1
1.9 billion
Lives improved
in 2014 1

17. No CapEx
due to unique
business model with
financing solu&ons
and upgrade op&ons
Hassle-free
performance based
managed ligh&ng
solu&on and
service
Savings
on energy,
maintenance and
deprecia&on
costs
Responsibility
to minimize CO2
emissions and waste
of materials
Light as a Service: Opera&on and performance
guaranteed - from plan to end-of-life management

18. Schiphol, Cofely and Philips have entered into a collabora&on for Light-as-a-Service in
the terminal buildings at Amsterdam Airport Schiphol.
• 3700 LED fixtures
• Schiphol pays for the light it uses
• Philips remains owner of the installa&on
• 50% reduc&on in electricity consump&on
• Fixtures op&mized for Circular Economy
• Philips and Cofely responsible for the
performance and re-use and recycling
• Real-&me performance management
Jos Nijhuis, CEO Schiphol: "It is Schiphol's ambi&on to become one of the most
sustainable airports in the world. With this innova&ve, out-of-the-box solu&on, we
set a new standard that matches the ambi&on level of the airport."
Schiphol in focus
November 17, 2014

19. 19
Performance-based healthcare services:
shared accountability in long-term partnerships
Understanding the
en&re experience
Implement and
transform
Give stakeholders
a voice
Leverage the
power of data
Co-create the
solu&ons
Together with our customers and partners we co-create solu&ons that enable
integrated people-centric healthcare delivery that improve care and lower costs.

20. 20
Georgia Regents Medical Center in focus
Customer’s need
• Improve pa&ent care
• More effec&ve and cost-efficient care
• To six million people
• Across a network of three medical centers
and many outpa&ent clinics
SoluOon
• Strategic Managed Services Alliance
• First of its kind in the USA
• Philips provides medical technologies,
consul&ng services, opera&onal
performance, planning, maintenance
• Predetermined monthly costs
• Over a 15-year term

21. 21
Refurbishing solu&ons for MRI systems
• Systems rebuilt and tested
according to manufacturers
specifica&ons
• New vacuum components
• Customized configura&on
• Latest soeware upgrades
• Latest hardware upgrades
• Original parts
• 60-85% of new price
• Same guarantee as new

22. 22
Philips Healthcare Parts Harves&ng
• Avoid value leakage throughout the value
chain
• Ensure maximum usage of parts
• Parts and installa&on accessories collected
aeer any installa&on, de-installa&on, repair
or maintenance service
• Parts harvested cleaned and tested to
ensure quality as new parts
• Strong infrastructure for trade-in
equipment, planning and logis&cs in place
• Collabora&on across func&onal
organiza&ons and businesses

23. 23
SENSEO Up built from recycled plas&cs
Baseplate 90% recycled
ABS from Post Consumer
E-waste
Inner frame (not visible)
40% Post Industrial
Recycled glass fiber
reinforced polypropylene
Total: 13% recycled plasOcs / 20% cost savings