With the Conference of the Parties (COP26) kicking off on the 31st of October in Glasgow this year, we have decided to highlight the positive environmental impact of just two great companies in your Ethical Investment Plans. This is because COP26 will see leaders and representatives of 197 countries across the globe come together to negotiate critical environmental matters at a time when the world’s response to climate change has never been more important.
As part of this, the first company we focused on was the energy and gas distributor, National Grid. This time we have chosen to highlight Signify NV, which is held in the Pictet Global Environment Opportunities Fund.
The finance stuff 📈
Company value: £4.77bn
Share price: £37.16
2020 Revenue: £5.78bn
What do Signify do? 💡
Signify, which was previously known as Philips Lighting, is a world leader in lighting solutions for business, professional and personal use. Despite its name change in 2018, the company still manufactures many of its products under the Philips brand, which is a household name to many.
The company’s goal is to provide innovative lighting products, systems and services to redefine how light is used and observed. Underpinning this innovative approach is a commitment to creating a smarter, safer and more sustainable illuminated world.1
What Impact is Signify Having? 🍃
Signify’s commitment to sustainability is impressive, and the company is a shining light (excuse the pun!) amongst its peers when it comes to its impact on the environment and society.
The company has been 100% carbon neutral in their operations since September 2020 and relies exclusively on renewable energy. This was achieved between 2010 to 2020, with the company reducing its carbon footprint by over 70% over this period. This reduction in emissions is equivalent to the amount of CO2 that 60 million trees can absorb in a year. A monumental and visionary effort!
But it doesn’t stop there. The company has committed to achieving double the rate implied by the Paris Agreement, not just through the products and services it develops, but by working with suppliers to reduce their emissions. Signify, therefore, are leading numerous COP26 participants in this aspect.
Indeed, 84.1% of the company’s revenues currently come from sustainable products and services, and the company recycles 91% of its manufacturing waste.1
The company has also integrated the United Nations’ Sustainable Development Goals (SDGs) to frame their Brighter Lives, Better World 2025 sustainability program. The central ambition of the program is to double their already positive impact on the environment, and with what they have achieved so far, it seems that no mountain is high enough!1
What Signify have to say 📣
“Sustainability is part of the DNA of Signify. It's our purpose to unlock the extraordinary potential of light for brighter lives and a better world. By changing the way we create and use light, we can improve lives and have a positive impact on the planet. Over the past 125 years, Signify pioneered many key breakthroughs in sustainable lighting and was a driving force behind several leading technological innovations, including LED.”
Why Pictet like Signify… 🤓
“Signify is a leader in connected LED lighting systems, software and services. Their products allow customers to reduce energy consumption through smart, energy-efficient lighting systems, and thus play an important part in driving energy efficiency. The company should benefit from the continuous electrification and digitization of the economy, particularly within the framework of the transition to a cleaner and more sustainable energy system where technologies aimed at reducing energy and electricity consumption will benefit. “
To wrap up 🎁
Signify has a proven track record of delivering on ambitious goals when it comes to sustainability. The company is a market leader and a shining example of how vision and innovation can come together to shape the future in a positive and lasting way. Increasing the efficiency of how we illuminate our homes, workplaces and cities will be a vital part of reducing our global footprint on the environment - and Signify has certainly shown its credentials to lead the way.
