Signify’s Net Zero 2040 climate transition plan aims to reduce 90% of greenhouse gas emissions across the entire value chain and achieve net zero emissions by 2040.
· A full transition to energy-efficient LED lighting technology can reduce global greenhouse gas emissions by 1%, equivalent to half of aviation emissions1, and the energy saved is enough to meet the charging needs of all electric vehicles on the road today, or power more than 100 million heat pumps2.
· Signify will work closely with customers, partners and relevant organizations and institutions to accelerate the realization of sustainable energy transformation.
Signify has released a climate transformation plan, which will reduce greenhouse gas emissions across the entire value chain by 90% based on 2019 and achieve a net zero emissions target by 2040. The plan will further enhance Signify’s leadership in the lighting industry’s continued promotion of low-carbon transformation.
Eric Rondolat(CEO of Signify)said: “We firmly believe that light can have a positive impact on society and we have always taken responsibility as a global lighting leader. Signify is one of the first multinational companies to be audited by the Science Based Targets Initiative (SBTi). The ‘Net Zero 2040’ climate transformation plan released today further demonstrates our ambition in the field of sustainability.
Signify’s climate transformation plan is aligned with the net zero target reviewed by the Science Based Targets Initiative (SBTi):
· Net zero greenhouse gas emissions across the value chain by 2040
· Reduce absolute scope 1, 2 and 3 greenhouse gas emissions by 50% by 2030 compared to a 2019 base year
· Reduce absolute scope 1, 2 and 3 greenhouse gas emissions by 90% by 2040 compared to a 2019 base year
The plan covers a number of cross-business and cross-value chain actions, including incentivizing suppliers to commit to renewable energy, adopting new energy logistics and transportation fleets, and further promoting high-efficiency LED lighting technology, the core factor in the lighting industry’s emission reduction in recent years.
90% of greenhouse gas emissions in Signify’s value chain come from the use phase of its product life cycle. Therefore, in Signify’s 2040 net zero emissions plan, the development of more efficient and energy-saving lighting technology will become the primary driver leading the industry’s development.
With continuous innovation and practice, Signify has reduced absolute greenhouse gas emissions by 50% across the entire value chain (including the product use phase of Scope 3) since 2019. Large-scale upgrading of traditional lighting products worldwide has become an important opportunity for the rapid transformation and development of the industry. The full replacement of high-efficiency LEDs will reduce global greenhouse gas emissions by 1%, equivalent to half of the total emissions of the aviation industry.
Earlier this year, Signify, Climate Group and other partners jointly launched the “Renovation Revolution” initiative for the building sector, aiming to increase the renovation rate of buildings in the EU and take a key step towards achieving the EU’s 2050 net zero emissions target.
Helen Clarkson, CEO of the Climate Group, said of Signify’s “Net Zero 2040” climate transition plan: “The Climate Group welcomes and appreciates Signify’s climate transition plan. The plan demonstrates the feasibility and necessity of corporate action in promoting comprehensive carbon reduction and net zero emissions. We have worked together for more than 15 years to accelerate the global promotion of LEDs and strive to build a more energy-efficient building environment. We look forward to continuing to deepen cooperation with companies and related organizations including Signify to promote the 2030 goal of doubling building renovation and energy efficiency.”
As co-founder of Transition Value Partners, founder and strategic advisor of the Global Environmental Information Research Center (CDP) and co-host of the Outrage and Optimism podcast, Paul Dickinson said: “Signify is the world’s largest LED manufacturer and the driving force behind the energy efficiency of Philips Lighting products. Lighting accounts for about 2% of global greenhouse gas emissions. Reducing the energy consumption of lighting products is an important means to promote energy conservation and emission reduction. Signify has been widely recognized by the market for its responsible manufacturing and low-energy products. In order to meet the requirements of the EU Corporate Sustainability Reporting Directive (CSRD) for the supply chain, more and more companies committed to the transition to net zero emissions choose Signify’s products and services. Signify is a global leader in decarbonization. Its groundbreaking climate transition plan raises the industry benchmark and demonstrates its determination to support other companies to achieve science-based carbon targets and achieve net zero emissions.”
[1] Based on IEA data for 2022, based on IEA estimated lighting emissions and estimated global energy-related emissions.
[2] Based on data from Signify’s proprietary calculation model. Includes more details such as underlying assumptions and conversion rates used. Sources: Electric Vehicle Database, IEA Trends in electric cars and Viessman – do heat pumps use a lot of electricity?