PHILIPS GREEN BOND FRAMEWORK (GBPP)

Promoteur – Intermédiaire Financier

KONINKLIJKE PHILIPS NV

Lieu

• Pays-Bas
• Pays de l’UE

Description

The operation consists of the purchase of green bonds issued by Philips under its Sustainability Finance Framework (2024). The proceeds of the operation will finance the promoter's investments in the Netherlands and EU region, in line with the EIB's Climate Action and Environmental Sustainability (CAES) framework and eligibility criteria.

Additionality and Impact

The investments to be supported by the issuance of the Green Bonds by the Promoter will finance investments in circular economy adapted products that go beyond current regulatory and industry standards and aim to improve energy efficiency, use less resources and more recycled content, avoid the use of hazardous substances, employ design for circularity and make packaging easier to recycle. Such climate and environmental related investments are costly and carry higher uncertainty in terms of commercial pay back, compared to normal R&D investments. Furthermore, EIB financing of the Promoter's continued investments in green products will help advance the medical equipment industry towards climate and environmental goals and will further knowledge creation and the diffusion of circular and sustainable products, preparing the health care sector for possible green procurement of medical equipment. Additionally, the EIB provided advice and technical input particularly related to discussions on the EU Taxonomy.

These investments will support the EIB "Innovation and Digitalisation" PPG and they will contribute to the EIB Climate Action and Environmental Sustainability (CAES) policy objective.

The projects to be financed will address the gaps associated with (i) imperfect competition and incomplete markets for products that are designed for the circular economy and energy efficiency, and those addressed by (ii) projects with positive environmental and knowledge externalities generation. The operation will have a strong crowding in effect and it will support the borrower in attracting long term financing from public debt markets for their green investments.

Although the Promoter has prior experience issuing green bonds, EIB's involvement in a bond issuance process through a significant investment is expected to expand the issuer's green investor base and thereby diversify its funding sources.

The Promoter's knowledge and experience reporting on allocation and impact of their prior bond issuance, their experienced management, focus on innovation and sustainability, and industrial capability will help implement sound and sustainable investments in eligible projects, integrating positive environmental and social dimensions, address and mitigate market failures, and through its additionality, contribute to the Bank's policy objectives.

Objectifs

The aim is to support Philips' new projects to improve product design, avoid the use of hazardous substances, save energy and resources. Additionally, the promoter intends to employ design for circularity, use more recycled content and make product packaging easier to recycle and re-use.

Secteur(s)

• Industrie - Industrie manufacturière

Montant BEI envisagé (montant approximatif)

EUR 300 million

Coût total (montant approximatif)

EUR 900 million

Aspects environnementaux

The underlying investments to be financed with the proceeds of this operation will contribute to the EIB's climate action and environmental sustainability objectives, in particular to climate mitigation, transition to a circular economy as well as sustainable use. These are not expected to fall under any of the Annexes of the Environmental Impact Assessment (EIA) Directive 2011/92/EU (as amended by Directive 2014/52/EU). The EIB will assess Philips' capacity to identify, assess, manage and monitor the related environmental, climate, social impacts and risks, to make sure that these comply with the applicable EU and national socio-environmental legislation.

Passation des marchés

Philips is a private company operating in the healthcare sector not having contracting entity status. As such, the EU procurement legislation is not applicable.

Statut

Signé - 15/05/2025