Chinese company Zhejiang Haishun Electric Enterprises LTD. (Wenzhou City, China), supplies Philips with a range of accessories for Philips electric shavers and hair clippers. As a major supplier, it was invited to participate in Philips’ Supplier Sustainability Performance (SSP) program - a systematic initiative to improve sustainability throughout Philips’ supply chain. Rather than taking an audit-based approach, which often leads to so-called ‘audit fatigue’, the SSP program involves close collaboration with suppliers to identify areas where sustainability can be improved, together with the co-creation of solutions. All supplier action plans are driven by clear targets and their success assessed via transparent reporting.
Since joining the program in 2020, Philips and Haishun have jointly identified over 120 potential areas for sustainability improvement, many of which are already being actioned. These include simple operational changes, such as turning off lighting and computing equipment at the end of the working day and the installation of water-saving faucets, to modification of the company’s manufacturing equipment and processes, such as upgrading the heating elements in the company’s injection moulding machines, installing more efficient air compressors, and improving the wastewater treatment process. The projected energy savings amount to more than 350,000 kWh (3.5 MWh) per year. Water savings are projected to be around 9,000 tons (9 million liters) per year, while changes to the company’s wastewater treatment should result in a tenfold improvement in wastewater quality.