Transitioning to a circular economy

2014 7 Billion
9 Billion
in 2050

Resource Growing population

availability

Growing demand Climate change

Circular economy Linear economy

MAKE
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DISPOSE
TAKE
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Y

C AC
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2030
9 Billion
8 Billion in 2050

Waste as a Growing
resource population

For rent

5 planets needed
Access over Economy based on
ownership renewable energy

Enablers for a circular economy

· Use the economic system and benefit from the competitive advantage of what
currently are wasted resources. McKinsey estimates 1+ trillion USD/year of untapped value.

· All stakeholders, which includes governments, companies and individuals, need to

collaborate, co-own and co-create to break out of business as usual.

Examples on how Philips is making

the circular economy happen

Business Model Innovation

Selling light as a service instead of bulbs

Philips installs,
Pay a service fee
maintains and
for the light
upgrades the systems

Philips reuses
and recycles
the equipment

Material Recovery

Refurbishing old Philips medical equipment instead of building

from scratch

New component

Reused component

Old system Refurbished system

with warranty

Moving to renewable energy for lighting

Reducing power needs with LED technology instead of building

more power plants

save EUR 130billion 600 medium size

each year globally power plants

use renewable energy from

solar and wind to generate energy

www.philips.com/sustainability