Brighter Lives, Better WorldOur 2020 sustainability program

Sustainability, Signify

Our world is changing - Global trends shaping our business

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Population growth

more light

Resource challenges

more energy efficient light

Digitalization

more digital light

Today, lighting accounts for 13% of the world’s electricity demand.The global shift to LED will reduce this to 8% by 2030.

Our purpose

To unlock the extraordinary

potential of light for

brighter lives and a better world

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Sustainable revenues

80% of revenues from sustainable products, systems and services

More than 2 billion LED lamps and luminaires delivered by 2020

Safe and healthy workplace

Sustainable supply chain

Sustainable operations

100% carbon neutral & 100% renewable electricity

Zero waste to landfill in our operations

Brighter Lives, Better World – our 6th 5-year sustainability program Our commitments for 2020

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2019 result Achievement 2020 targetSu

stai

nab

le

reve

nu

es

Sustainable revenues 80%

LED lamps & luminaires delivered

>2 billion

Sust

ain

able

op

erat

ion

s Carbon footprint Net 0 kt CO2

Waste to landfill 0 tonnes

Safe & healthy workplace TRC = 0.35

Sustainable supply chain90% performance

rate

Our Full Year 2019 results

82.5%

2.344 billion(cumulative from 2015)

Net 64 kt CO2

726 tonnes

99%

TRC = 0.32

Increasing energyefficiency of portfolio

117% of our commitment completed

56% decrease vs FY2018

42% decrease vs Q4 2018

99% of risk suppliers passed the audit

9% ahead of the 2020 target

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We are named DJSIIndustry Leader for 3 consecutive years

We achieved the highest score in the CDP climate disclosure: A-List

We received the EcoVadis Gold Medal and are in the top 2% of companies assessed in our sector

Our 6 commitments for 2020 in two pillarsSustainable innovation and revenues

In 2019, 83.5% of our innovation spend was spend on Sustainable innovation,

innovations focusing on 8 Sustainable focal areas:

Energy

Circularity

Weight & materials

Packaging

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Substances

Human centric

Basic needs

Access to light

In 2019, 82.5% of our revenues came from sustainable products, systems and services. Sustainable

products, systems and services contributing to Sustainable revenues, outperform reference products

(>10%) and have an energy efficiency of at least 66 lumen/Watt.

Sustainable operations

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• Reduce energy use

• Optimize logistics

• Reduce business travel

• Shift to 100%

renewable electricity

• Shift to electric/hybrid

vehicles

Zero carbon Zero waste to landfill Prevent injuries Sustainable supply chain

• Send zero waste to

landfill

• Reduce, recycle and

re-use waste in all

our manufacturing

sites

• Provide a safe and

healthy workplace

for our employees

through injury

prevention

• Engage our suppliers, audit

and train all risk suppliers

• Ensure responsible minerals

• Reduce the carbon footprint

of our supply chain

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We are recognized as one of the world’s most sustainable companies

Industry Leader in the Electrical Components and equipment industry for the third consecutive year

CDP A-list company for our leadership on environmental performance

CDP engagement leader for our approach to tackling emissions in the supply chain

Categorized as ESG leader with ‘AA’ rating

Top position, categorized as Leader with 86 out of 100 points

Categorized Proactive (Highest Level)

We contribute to the UN Sustainable Development Goals (SDGs)

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The SDGs are central to our purpose and strategy

How we contribute:

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We increase food availability and quality

through horticulture and animal lighting and

increase wellbeing through human centric

lighting

We foster decent work and economic

growth by improving the safety &wellbeing of employees and suppliers

and training lighting entrepreneurs

We deliver cleaner solutions through

energy efficient and solar lighting

and are committed to 100% renewable

electricity in our operations

We drive climate action by going

beyond carbon neutral operations to also

reduce the carbon footprint of our

products, logistics and suppliers

We are transitioning to a circular economy through circular products

and services, responsible packaging, zero

waste to landfill and increased recycling

We enable smart cities, increase safety & security of roads and urban areas, enable

safe & sustainable workplaces in offices and

industry, and light lives in off-grid areas

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Sustainable innovation in action

Aquaculture LED lightingAysén, Chile

Australis Seafoods is committed to excellence, ensuring the quality and freshness of its salmon according to sustainability standards.

Signify installed its Philips aquaculture LED lighting with its innovative photoperiod system to help controlling the duration of light and to optimize the salmon production.

The light is mimicking the summer sun and aiding growth. Less fish food is needed, resulting in lower cost and cleaner water. Infections by sea lice are dramatically reduced because the fish, attracted by the 5 meters deep submerged lights, stay away from the surface.

Making adolescent girls’ future brighter Kavrepalanchowk District, Nepal

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Designed to address the social and economic marginalisation of adolescent girls in Nepal, this project in partnership with BRAC, empowers and provides employment opportunities to adolescent girls.

The project supports women in Nepal with training courses and helps them become solar lighting and electrical technicians. At the same time, this project will provide communities with access to renewably powered lighting.

Since 2017, Signify supported 8,000 people with technical and business skills development.

Zero accident 4 years celebrationXiamen, China

Changing attitudes and make safe as a matter of everybody at work and at home.

Signify Xiamen’s site focused on consistently: • Implement machines safety standard,• Comply with PPE requirement,• Conduct behavior observations,• Perform monthly review safety performance,• Follow safety rules,• Listen to the feedback proposal from

employees.

We are now celebrating 4 years without an accident, a remarkable success for the Signify facility in Xiamen where their safety motto is “Safety First!”

Infanta Elena Park is using solar lighting to enhance the safety of visitors and outdoor sportsSeville, Spain

Seville is a city committed to fully switch to renewable electricity by 2030 and so to reduce energy costs and improve its carbon footprint. Seville needed a lighting solution for more safety in their park.

Philips SunStay streetlights save on cabling costs, reduce carbon footprint and lower overall capital and operational expenditure. Additionally, lighting the park enables sports activity outdoors when it is dark and maximizes the use of the city’s green space by neighbors and visitors.

First truly field replaceable linear LED module

Signify designed the Advance Fortimo InstantFitto make late stage configuration a snap, without screws, tools and expensive labor.

It enables flexibility during a late stage configuration of an LED troffer and a more circular economy by extending the lifetime of the fixture.

The Fortimo InstantFit is constructed according to the draft Zhaga Book 21 and draft ANSI C81, offering maximum flexibility and serviceability. The availability of standard compatible modules will ensure easy replacement, prolonging the functional lifetime of fixtures.

Our path to carbon neutrality

For the next ten years, we will purchase renewable electricity for our operations in Poland from Macquarie’s Green Investment Group (GIG) Kisielice onshore wind farm.

The wind power sourced under the vPPA will be applied to power four of Signify’s factories and several offices throughout Poland. The VPPA helps Signify reduce its annual carbon footprint by 73 kt CO2e – the equivalent of removing over 23,000 cars from the road.

Our full North American operations were already powered with 100% renewable electricity thanks to our windfarm in Texas (US). We are already carbon neutral in 15 markets out of 19 and on the path to be carbon neutral globally in 2020.

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