Signify has launched its plan to reduce greenhouse gas emissions by 90% across its entire value chain versus a 2019 baseline and reach net zero by 2040. The plan builds on Signify’s established leadership in transforming the lighting industry.
“We firmly believe in the potential of light to positively impact society, and we embrace the responsibility that comes with our leadership. As one of the first global companies to commit to credible science-based targets, today we are proud to raise our ambitions with Signify’s 2040 Net Zero Climate Transformation Plan.
“Our innovations continue to make leaps forward in energy efficiency and sustainable lighting technologies. We will continue to act with urgency, using our voice to engage our customers, employees, partners and public policymakers to accelerate climate action across our industry and beyond.”
Eric Rondolat, CEO of Signify
Signify’s Climate Transformation Plan outlines the company’s climate strategy in line with SBTi-certified net zero emissions targets:
Net-zero greenhouse gas emissions across the entire value chain by 2040. 50% reduction in absolute Scope 1, 2 and 3 greenhouse gas emissions by 2030, compared to the 2019 base year. 90% reduction in absolute Scope 1, 2 and 3 greenhouse gas emissions by 2040, compared to the 2019 base year.
The plan includes initiatives and programs across the business and value chain, including incentivizing suppliers to commit to renewable energy, electrifying the logistics fleet, and continuing to expand the use of energy-efficient LED lighting – the biggest factor in reducing the lighting industry’s emissions in recent years.
With more than 90% of Signify’s greenhouse gas emissions coming from the use of its products throughout their lifecycle, the company’s ambition to achieve net zero by 2040 is focused on continuing to lead the industry in developing increasingly efficient lighting technologies.
As a result of its actions and innovations, Signify has already achieved an absolute 50% reduction in greenhouse gas emissions across its entire value chain, including Scope 3 use, since 2019. However, a large proportion of the global lighting inventory is still conventional, meaning there is significant potential for rapid progress. A global switch to energy-efficient LEDs would reduce global greenhouse gas emissions by 1%, equivalent to half of the total emissions from the aviation industry.
Earlier this year, Signify teamed up with Climate Group and other partners to launch Renovation Revolution, aiming to boost renewal rates across the EU – a crucial step if the region is to achieve its net zero by 2050 goals. Helen Clarkson, CEO of Climate Group, said of the launch of Signify’s 2040 Climate Transformation Plan:
“The Climate Group welcomes Signify’s Climate Transformation Plan, which sets out what businesses can and must achieve if we are to decarbonize the economy and reach net zero. We have worked in partnership for over 15 years to accelerate the global rollout of LED lighting and work towards a more energy-efficient building environment. We look forward to many more years of working with Signify, alongside other businesses and government partners, to launch the retrofit revolution and double energy efficiency by 2030.”
Paul Dickinson, co-founder of Transition Value Partners, founder of CDP where he works as a strategy consultant, and co-host of the Outrage and Optimism podcast, said:
“Signify is the driving force behind energy efficiency behind Philips Lighting, the world’s largest LED manufacturer. Low-energy lighting is central to reducing activity that accounts for 2% of global emissions. As the global premium brand for responsible manufacturing and ultra-low energy consumption, more and more companies committed to a just transition to net zero will choose Signify, not least to comply with its CSRD supply chain requirements. The company is a global leader in decarbonization, and its groundbreaking transformation plan raises the bar, while demonstrating its commitment to helping others achieve their science-based goals and reach net zero.”
Signify will report regularly on progress in implementing the plan in its annual report.
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