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2015 02-11-eco-innovate-in-lighting-02-circular-economy-strategy-at-philips

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How to truly eco-innovate in Lighting - 11/02/2015 - From design for recycling to circular economy strategy at Philips
(Markus Laubscher - Philips)

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2015 02-11-eco-innovate-in-lighting-02-circular-economy-strategy-at-philips

  1. 1. 1 Welcome & Intro 12.02.20 1 2 Markus Laubscher Philips
  2. 2. 2 Rethinking the future Our transition towards a circular economy Markus Laubscher Group Sustainability
  3. 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
  4. 4. 4 Circular Economy Vision, ambition, potential
  5. 5. 5 Our vision is to make the world healthier and more sustainable through meaningful innovation
  6. 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. 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. 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. 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
  10. 10. 10 Experience to date Proof points
  11. 11. 11 Light as a Service Refurbished MRI Modular Ultrasound Recycled content
  12. 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. 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. 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. 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
  16. 16. 16 Lighting Solutions Strategies and activities
  17. 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. 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
  19. 19. 19 Circular economy scorecard to guide design Business models Design Collaboration Reverse logistics
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