In a warehouse in Eindhoven in the Netherlands, Philips Lighting products are being loaded into a Maersk container ready for shipping. Many of the products produced by the Dutch lighting company are low-energy LEDs – key to the company’s mission of making the planet more sustainable.
Replacing traditional bulbs with LEDs would reduce global energy consumption from lighting by over 50%, and Philips Lighting has pledged to sell more than 2 billion LED lamps by 2020.
“Sustainability lies at the heart of our company,” explains Maurice Loosschilder, Head of Sustainability Strategy & Reporting at Philips Lighting. “We see a huge opportunity to mitigate climate change via a global shift to LEDs.”
The supply chain impact
For Philips Lighting, being sustainable is not only about selling low-carbon technology. It is about changing the way business is done entirely. Last year the company introduced strict targets for its operations – publicly committing to becoming carbon neutral by 2020, with zero waste to landfill from its manufacturing facilities.
Maersk Line is helping Philips Lighting realise these ambitions thanks to a Carbon Pact - that pledges to reduce the carbon emissions from shipping by 20% by 2020.
Currently, 44% of Philips Lighting’s total carbon footprint comes from its supply chain logistics – making this the biggest total contributor, even more so than its industrial sites - so any reduction would make a huge dent in the company’s carbon footprint.
“The supply chain is one of the first places a company needs to look to make sure it is doing everything possible to bring down its carbon footprint,” says Greg Boyle, Global Director Ocean Freight & Distribution at Philips Lighting.
“The partners we use are key to helping us reduce our footprint. Today it’s a prerequisite when we decide who to work with. If a company doesn’t have a proper sustainability programme in place, we won’t even consider doing business with it because sustainability has become embedded in how we do business.”
A pact to lower carbon
The Carbon Pact commits both companies to transparency regarding carbon emissions, sets a concrete target on reducing CO2 and to the development of new tools and practices, which could lower emissions further.
Maersk Line introduced the concept three years ago and now has 15 different Carbon Pacts in place with companies from various industries. Maersk Line can reduce CO2 emissions on behalf of the customer through sailing the most efficient vessels and providing customers with transparency on the carbon efficiency of different routes.