In an interview with ESG Mena, Marc Antoine Zora, General Manager and District Leader, Gulf & Levant, Philips Middle East, discusses latest health trends , the group’s ESG practices and Philips efforts at different fronts to reduce carbon footprint.
Following is the full text of the interview:
Would you elaborate on Philips’ sustainability action plan?
At Philips, we are strongly committed to reducing our carbon footprint and promoting sustainable healthcare. We believe in aligning our efforts with the United Nations’ Sustainable Development Goals (SDGs), specifically SDG 12 (Sustainable consumption and production) and SDG 13 (Climate action). To achieve these goals, we have set specific targets to reduce our environmental impact and combat climate change by 2025.
Philips has already made significant progress towards achieving these goals. We have become the first health technology company to have our entire value-chain CO₂ emissions reduction targets approved by the Science Based Targets initiative (SBTi). In addition, we have remained carbon-neutral in our operations since 2020 and achieved 77% (2021: 74%) renewable energy usage, exceeding our goal of 75% by 2025. We have also reduced transport- and distribution-related CO₂ emissions by 22% through a stricter air-freight policy and optimised warehouse locations.
As part of our wider Supplier Sustainability Program, we work closely with suppliers to help them identify and mitigate their emissions, using the tools, expertise, and experience we have gained while greening our own operations. As of 2022, 40% of Philips’ suppliers (based on spend) have now committed to science-based targets (2021: 28%), bringing us closer to achieving our target of 50% supplier commitment by 2025.
We are proud to have been ranked on the CDP Climate Change ’A’ List for the tenth time in a row, thanks to our continued climate performance and transparency, as assessed by CDP, a global NGO that evaluates the CO₂ emissions performance and management of reporting companies.
It is heartening to see that there is a strong alignment between the healthcare industry and UAE residents’ expectations around sustainability. The first Health Trends Research United Arab Emirates (UAE) revealed that most UAE residents (82%) believe that sustainability should be a priority for healthcare companies. They emphasised the importance of prioritising practices that do not harm the environment, with 51% of respondents indicating this as a key priority.
We are encouraged by the growing momentum across the healthcare industry and among our customers to reduce our collective environmental footprint. At Philips, we are committed to driving environmental, social and governance priorities in partnership with our stakeholders, to make a meaningful global impact.
Telehealth represents an essential part of your digital strategy. What is your road map within this delicate aspect in the META region?
META is an incredibly disparate region; while realising the ambition of the quadruple aim – better health outcomes, at a lower cost of care, while enhancing the patient and the staff experience – is a priority across the region, the immediate goals, focus areas and barriers vary.
For instance, in some markets, investment into the latest AI-enabled solutions and end-to-end connected care is being realised at an incredible rate, while other countries are focused on improving access to primary care in more remote areas through telehealth solutions. And of course, some countries are focused on both where health inequality is most prevalent.
As a leader in health technology, we are taking our role of realising the changes we need across health systems very seriously. That is why we are dedicated to work closely with local authorities and healthcare providers to promote the adoption of telehealth and other emerging technologies, in line with local regulation and standards.
How would Philips healthcare establish symmetricity across the region’s various markets?
Philips will continue to enhance alignment and consistency to improve performance and drive progressive value creation through a strategy of focused organic growth, scalable patient- and people-centric innovation, and focus on reliable execution, prioritising patient safety and quality, supply chain reliability, and a simplified operating model. All supported by a reinvigorated culture of accountability, empowerment and strengthened health technology talent and capabilities.
As a leading health technology company, we believe that – viewed through the lens of customer needs – patient- and people-centric innovation can improve people’s health and healthcare outcomes, as well as making care more convenient and sustainable, both in the hospital and at home.
Given our global presence, strong enterprise informatics platforms, (ambulatory) monitoring and imaging data, as well as our capabilities to support care across settings, we believe Philips is well positioned to do this, and – leveraging our strong clinical, consumer and Environmental, Social & Governance (ESG) franchise, and our strong brand – do it in a convenient and sustainable way.
In support of our performance improvement and consistency, our execution is grounded in three decisive actions:
Patient safety and quality: putting this at the heart of (business) innovation, and embedding it in our culture, e.g. by giving all employees dedicated patient safety and quality objectives;
Supply chain reliability: moving from a centralised ‘one size fits all’ supply chain structure to a more agile, dedicated end-to-end set-up per business, and pruning and redesigning products
A simplified operating model: end-to-end businesses with single accountability working in a leaner, more agile way, guided by patient- and people-centricity and accountable leadership with empowered teams.
Public Private Partnerships represent the core of ESG advancement in the META region. What’s your action plan in this regard?
Illustrating Philips’ increasing social impact, Philips’ health technology products, services and solutions improved 1.81 billion lives (over 100.5million people in the META region), of which 202 million in underserved communities. This takes Philips closer to its goal of improving 2.5 billion lives per year by 2030, with 400 million in underserved communities. In 2022, improved access to care in underserved communities was driven by shared-value partnerships, the development of innovative digital solutions, and the roll-out of new business and financing models that are both sustainable and scalable.
With our success grounded in purposeful partnerships, we prioritise collaborating with local organisations, authorities, suppliers, employees, and customers to promote sustainability and social responsibility initiatives, education, and awareness around ESG issues. While Philips’ micro-level approach involves collaborating with local communities to address specific healthcare challenges and promote sustainable development.
Digital healthcare requires special knowledge and skills. What’s your strategy for human capital development in line with the world’s best practices?
In line with our goal of improving health and well-being of 2.5 billion people a year by 2030, we are committed to create a truly patient- and people-centric culture. In the meantime, we are intensely focused on driving growth and performance- one where each individual employee can realise their full potential. Our human capital development strategy includes investing in training and development programs for our and our partners’ employees as well as collaborating with local educational institutions to promote skills development in the healthcare and technology sectors.
Additionally, we are actively engaged in supporting and uplifting the communities in which we operate, with initiatives such as volunteering, internship, graduate programs. We also recognise the importance of co-creation in talent development, as it provides a platform for sharing best practices and knowledge with local stakeholders. By collaborating with our partners, we can foster the growth of a robust digital healthcare ecosystem in the region while simultaneously learning from one another.