Better Health for All

Signify's products do not have significant negative health impacts, with no revenue reported from products with established negative health outcomes.

The company invested EUR 271 million in sustainable innovation in 2023. While the articles do not specify the exact percentage of this investment dedicated to health outcomes, this figure represents 4.4% of their EUR 6.1 billion sales in 2024. The company's circadian lighting solutions are noted to regulate moods and mental health, and increase productivity by up to 12% in office environments, but the articles do not provide evidence of specific mental health initiatives or programs.

Fair Trade & Ethical Sourcing

Signify conducts on-site audits for its tier-1 suppliers on a 3-year cycle for most, with annual audits for higher-risk suppliers or those scoring below 70 points.

The company has a zero-tolerance policy for child and forced labor, and its Supplier Sustainability Declaration and RBA Code of Conduct are incorporated into supplier contracts. A conflict minerals due diligence program is in place, identifying 268 compliant smelters in 2023. However, no specific quantitative data is provided for the percentage of spend covered by fair-trade certifications, the number of substantiated forced or child labor incidents, traceability coverage, remediation speed, the percentage of contracts with enforceable ethical clauses, the share of spend on high-risk materials, or supplier diversity spend.

Honest & Fair Business

Signify has a formal whistleblower protection policy with multiple reporting channels, including an ethics hotline, which received 274 concerns in 2023, a 12% increase from 2022.

The policy states that receipt of a complaint is confirmed within 7 days, and an update or action is provided within 3 months (90 days). The company has a comprehensive anti-corruption and anti-bribery policy that prohibits facilitation payments, political donations, and cash payments above EUR 10,000. It includes a due diligence program for third-party screening and outlines specific monetary thresholds for gifts and hospitality. However, only 87% of reporting manufacturing sites are ISO 14001 certified and 83% are ISO 45001 certified, indicating partial third-party verification of ethical claims.

Planet-Friendly Business

Signify's total Scope 1, 2, and 3 greenhouse gas emissions were approximately 192 million tCO₂e in 2023, primarily from the use of sold products.

The company's science-based targets, including a net-zero target by 2040 and 50% reduction in Scope 1, 2, and 3 emissions by 2030, have been reviewed and validated by the SBTi to be aligned with the 1.5°C pathway. Signify has used 100% renewable electricity in its operations since 2020, with 47% from Power Purchase Agreements, 43% from Energy Attribute Certificates, and 10% from energy providers in 2024. The company recycled 89.6% of its total waste in 2024, with total waste to landfill being less than 1%. In 2024, 29.5% of capital expenditure was aligned with the EU Taxonomy for Climate Change Mitigation. The company uses 25% secondary materials by total weight. Signify invited 382 strategic suppliers to its climate questionnaire program and 117 suppliers committed to the Science-Based Targets Initiative in 2024. The company has been reporting climate-related risks and opportunities in alignment with TCFD recommendations since 2018 and conducts detailed climate scenario analysis based on four decarbonization scenarios, ranging from 1.5°C to 4.4°C. Signify states it has identified no assets or business activities incompatible with the transition to a climate-neutral economy. 5% of global water consumption is located in regions classified as having high-water scarcity. The company is phasing out plastic packaging in consumer products, expecting to cut emissions by around 6,000 tonnes CO₂e annually. Signify supports former employees in finding new jobs when factories close, providing 3-6 months' notice and negotiating social plans.

Zero Waste & Sustainable Products

Signify has eliminated more than 99% of fossil-fuel based plastics from consumer product packaging worldwide, removing an average of 2,500 tonnes of plastic annually since starting in 2019.

This is equivalent to 125 million half-liter PET bottles per year. The company aims to send zero manufacturing waste to landfill and has a commitment to reduce yearly water usage and hazardous waste by 5%. For packaging, Signify's policy requires all paper-based packaging to contain more than 80% recycled paper, and for PET packaging, targets are >50% recycled content in Europe/Americas and >10% in the Rest of the World. They minimize material amount in packaging, reducing carbon emissions from transport and materials by 6,000 tonnes per year due to smaller packaging. Signify participates in national WEEE schemes and collective schemes for lamps and luminaires in the EU, and offers Light-as-a-Service options that include managing, reuse, and recycling of luminaires. Products are designed to be serviceable, reusable, refurbishable, and recyclable, with non-destructive demounting, no glue or potting, and easily exchangeable/upgradable electronic and mechanical parts. Suppliers are required to meet sustainable packaging targets, provide evidence of compliance, and quarterly report on materials supplied.