2015 02-11-eco-innovate-in-lighting-02-circular-economy-strategy-at-philips
TRANSCRIPT
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Rethinking the future Our transition towards a circular economy
Markus Laubscher Group Sustainability
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CE team within Philips:
Driving circular thinking through…
• Generating proof points & metrics • Thought leadership and collaborations • Driving internal engagement • Embedding in Philips processes
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A healthier and more sustainable world
Source: Ecological Footprint Atlas 2009
UN Human Development Index = life expectancy + education level + purchasing power
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
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• 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
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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
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• 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
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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
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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
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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
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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.
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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
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Circular economy scorecard to guide design
Business models
Design Collaboration Reverse logistics