All suppliers with an annual spend of over € 1000 must sign and adhere to the Royal Philips Electronics Supplier Sustainability Declaration. This constitutes an integral part of our purchase agreements, purchase orders and terms and conditions.
Training and capacity building
We know that awareness and engagement are critical for building a sustainable electronics industry and recognize our responsibility in helping create them.
Our training sessions, Supplier Day events and briefings aim to build knowledge and commitment among our suppliers. We also participate in the EICC capacity-building program.
We encourage our suppliers to analyze gaps and areas for improvement by completing the ICT Supplier Self-Assessment Questionnaire for each site that manufactures products for Philips.
Philips conducts onsite sustainability audits at some supplier sites. These evaluate the supplier’s conformance to the Electronic Industry Code of Conduct (EICC) and are conducted by a Philips in-house auditor or an EICC-certified auditing body.
The audits are carried out using Philips Supply Sustainability Audit Tool and cover the entire site, not just the production lines set up exclusively for Philips products. This allows us to gain a representative picture of the supplier’s overall sustainability performance and compliance with the EICC. It also identifies areas for improvement.
If non-conformances are identified during an audit, Philips expects the supplier to take the initiative to resolve the issues involved. Philips will work with the supplier to define a Corrective Action Plan, specifying the required steps, milestones and responsibilities, and to trace and track progress of the plan.
Supplier ratings and sourcing decisions
We are committed to awarding business to suppliers who conform to our standards of sustainability and performance. To do this, we will periodically audit suppliers against these standards, rating them for performance and improvement.
We communicate these results in our management reviews with suppliers. The results are also incorporated in our overall supplier rating system which helps us decide which suppliers to use.