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

1. 1
Welcome & Intro
12.02.20 1
2
Markus Laubscher
Philips

2. 2
Rethinking
the future
Our transition
towards a circular
economy
Markus Laubscher
Group Sustainability

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
Circular Economy
Vision, ambition, potential

5. 5
Our vision is to make the
world healthier and more
sustainable through
meaningful innovation

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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. 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
• 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
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
Experience to date
Proof points

11. 11 Light as a Service
Refurbished MRI
Modular Ultrasound
Recycled content

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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

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
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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Lighting Solutions
Strategies and activities

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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

19. 19
Circular economy scorecard to guide design
Business
models
Design Collaboration Reverse
logistics

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