Philips Market Leader In Sustainability
Philips Market Leader In Sustainability
Commitment to sustainability recognized with top score in the cyclical goods and services market.
Amsterdam, The Netherlands, September 22, 2003 – Today Royal Philips Electronics (NYSE: PHG, AEX: PHG) announced that the company was ranked number one by the Dow Jones Sustainability Index (DJSI) World in corporate sustainability among companies from the consumer electronics, leisure goods, home construction, apparel and airline sectors. The news comes just six months after the release of Philips’ first annual corporate Sustainability Report in which the company measures its progress against a triple bottom line of economic, environmental and social criteria.
Dow Jones Sustainability Indexes track the financial performance of the leading sustainability companies worldwide, providing asset managers with reliable and objective benchmarks to manage sustainability-driven portfolios. Currently, there are over EUR 2.2 billion in DJSI-based funds. The DJSI World covers the largest 2,500 companies by market capitalization in the Dow Jones Global Index. Only the top 10 percent of these companies are selected for the DJSI World according to economic, environmental and social criteria. Philips ranked first in the Cyclical Goods & Services market sector and also came out on top in the DJSI STOXXsm index ranking of approximately 600 of Europe’s leading companies.
“Companies that pursue sustainable development
have, on average, provided a higher return to shareholders
than other companies. By measuring a company’s economic,
environmental and social dimensions we can provide a more
complete basis for evaluating shareholder value,” said John
Prestbo, editor of Dow Jones Indexes. “To be identified as
the leader in its sector, Philips had to demonstrate
high-caliber governance, knowledge management, environmental
performance, human rights policies and other factors. All of
these criteria are carefully assessed in selecting companies
for the index, and in our view all contribute to the
long-term success of a company,” he continued.
Philips was measured on 10 economic, 6 environmental and 10 social parameters. The analyzed companies are assigned a sustainability score for each of the three key areas and are ranked accordingly within their industry group. In it’s sector Philips was rated highest in corporate governance and measurement systems, and received a 100% rating on its environmental reporting, 92% on its environmental policy and 95% on its product stewardship. Philips also scored higher than the industry average on corporate citizenship and philanthropy, labor practices, and human capital.
“Because we believe that sustainable business must meet the needs of present generations without compromising the ability of future generations, we have made it our priority to integrate economic, social and environmental principles into our business objectives. This isn’t just good talk. It’s good business too.” said Arthur Van der Poel, Chairman of Philips’ Sustainability Board. “Being recognized by the Dow Jones as a category leader, demonstrates that our values and actions as a company have put us on the right path to achieving our goal as a sustainable enterprise.”
Royal Philips Electronics
Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 31.8 billion in 2002. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 164,000 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors, and medical systems. Philips is quoted on the NYSE (symbol: PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at www.philips.com/newscenter