Health Care Technology Company Koninklijke Philips Scored 90 On ESG Evaluation; Preparedness Best In Class
LONDON, March 30, 2021 /PRNewswire/ — S&P Global Ratings said today that Netherlands-based health care technology company Koninklijke Philips N.V. scored 90 out of 100 on its ESG Evaluation. On our scale, 100 indicates the lowest risk and 0 the highest. The company’s ESG Evaluation score is the result of an ESG profile of 81 combined with best-in-class (+9) preparedness.
ESG Evaluation: Koninklijke Philips N.V.
As of March 2, 2021, S&P Global Ratings has evaluated over 65 entities across the globe using its ESG Evaluation. The average score on these evaluations is 68, and the highest score achieved is Philips’ 90. Since the first ESG Evaluation, published in June 2019, we have finalized ESG Evaluations across 21 sectors globally. By region, the highest average score is 72, for companies headquartered in Europe.
Philips’ ESG Evaluation score of 90 reflects our view that sustainability is at the core of its corporate strategy. The company built a digital, integrated, and solution-based business model before most of its global peers, which it leverages to respond to key challenges in the health care industry, such as inequality in the access and affordability of care, and shortages of medical professionals.
“We believe its business model will benefit from secular trends in the industry, including the unprecedented acceleration in connected care as a result of the COVID-19 pandemic,” say Marketa Horkova and Noemie de la Gorce, the primary contacts for the ESG Evaluation. “Philips also distinguishes itself by its robust governance, advanced supply chain management, and leading environmental practices, although it operates in an industry with relatively low environmental impact. We anticipate the company will manage its increasing exposure to risks related to data governance and cybersecurity well, but do not believe these can be fully mitigated.”
Philips is a global diversified health technology and consumer products group present in over 100 countries. In 2020, Philips generated revenue of €19.54 billion. The group consists of three major segments: Diagnosis and Treatment (42% of 2020 revenue); Personal Health (28%); and Connected Care and Informatics (28%). Diagnosis and Treatment includes diagnostic imaging, ultrasound scanners, and image-guided therapy. Personal Health includes oral care, mother and child care products, male grooming and skin care, and small home appliances. The Connected Care and Informatics segment includes respiratory drug delivery products, patient monitoring, health care informatics, home ventilators, and respiratory masks.
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