Koninklijke Philips NV

Climate-related risks and opportunities are a responsibility of the Executive Committee. The Risk Management Support Team, consisting of experts on various categories of enterprise risk, supports the Executive Committee through regular analysis of the enterprise risk profile and enhancement of the risk management framework. Climate-related risks and opportunities are managed the same way as other risks described in Section 6 Risk Management of the Annual Report 2021. [...] We have established an ESG Committee which monitors progress and assesses risks in relation to our ESG strategy and makes recommendations to the Executive Committee on the continuous improvement of our ESG endeavors. For more information, please refer to the ESG chapter in the Annual Report 2021.

Governance is central to Philips' climate resilience strategy. Climate-related topics are overseen at the highest organizational levels, with the Board of Management and the Executive Committee driving the company's Environmental, Social, and Governance (ESG) initiatives. Progress against climate goals is tracked through the ESG Index, which is linked to executive remuneration, ensuring accountability at every level. [...] Philips' climate related governance is embedded at the highest level. The Board of Management, including the Chief ESG & Legal Officer, is responsible for the design and management of our 2020-2025 ESG plan and typically convenes the Group Sustainability team and (where relevant) Business, Region or Function leaders four times per year on ESG matters. During these meetings, the Board of Management defines Philips' ESG strategy, commitments, programs, action plans and policies, as well as oversees major transactions, monitors progress on ESG priorities, and takes corrective action where needed. Progress on ESG is communicated internally and externally on our results website on a quarterly basis and at least annually to the Executive Committee and the Supervisory Board. The ultimate oversight of the ESG dimensions, and their integration into the company's overarching strategy, is a responsibility of the Supervisory Board as a whole because of the significance of ESG matters. While retaining this overall responsibility, the Supervisory Board is supported by the Audit Committee, which meets quarterly to discuss significant developments in impacts, risks and opportunities, developments in ESG reporting, and other relevant topics. [...] Climate related targets and SBTi-aligned emission levels are managed through our ESG Index. With the Index we are able to measure, monitor and communicate our progress against targets. This ensures we provide greater clarity and transparency internally regarding our ESG performance thereby creating accountability and ownership. Performance via the ESG Index is also partially linked to remuneration, as further explored in the 2024 Annual Report.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes