ESG reporting Frameworks, Integrated annual report, IIRC Framework, UN Global Compact

Koninklijke Philips N.V. – Annual report – 31 December 2024

Industry: manufacturing

9.6    ESG reporting frameworks

Building on our extensive experience of environmental and social impact measurement and of providing transparency on ESG, historically, Philips has taken an active role – in collaboration with, in particular, the International Financial Reporting Standards Foundation, World Economic Forum and the EU – to help drive the evolution toward a standard ESG reporting framework.

World Economic Forum (WEF)

In 2020, the WEF’s International Business Council (IBC) published its core set of Stakeholder Capitalism Metrics and disclosures. These can be used by companies to align their mainstream reporting on performance against ESG indicators and track their contributions towards the SDGs on a consistent basis. Our disclosure in line with this WEF framework can be found in How we create value.

IIRC

We have prepared this integrated Annual Report considering the principles of the International Integrated Reporting Council (IIRC) Integrated Reporting framework, which is now maintained by the IFRS Foundation. We have also created an overview of our value creation process (please refer to How we create value).

United Nations Global Compact

We signed up to the United Nations Global Compact in March 2007 to advance 10 universal principles in the areas of human rights, labor, the environment and anti-corruption. Our General Business Principles, our policies on Human Rights, our Sustainability and Environmental Policies, and our Supplier Sustainability Declaration are the cornerstones that enable us to live up to the standards set by the Global Compact. This is closely monitored and reported, as illustrated throughout this report, which is also our annual Communication on Progress (COP) submitted to the UN Global Compact Office.

We use this report to communicate on our progress toward the relevant Sustainable Development Goals (SDGs), in particular SDG 3, SDG 12, and SDG 13. Please refer to Advocacy activities and expenses for more details.