Green and  
Sustainability  
Innovation Bond 
Report 2021 
June 9, 2023

Table of contents 
Introduction ............................................................................................................................................ 3 
1.
Allocation reporting 2021 (summary) ............................................................................................. 4 
2.
Impact reporting 2021 (summary) .................................................................................................. 5 
3.
 Sustainability at Philips .................................................................................................................... 6 
4.
 Green and Sustainability Innovation Bonds .................................................................................... 7 
Sustainability Innovation Bond – Access to Essential Services: Healthcare ................................... 7 
Green Innovation Bond – Eco-efficient and/or circular economy-adapted products, production 
technologies and processes .......................................................................................................... 10 
Alignment with EU Action Plan on Sustainable Finance ............................................................... 11 
5.
External assurance ........................................................................................................................ 12 
Other information ................................................................................................................................. 13 
Reasonable assurance report of the independent auditor on Koninklijke Philips’s Green and 
Sustainability Innovation Bond Report ................................................................................................. 14

Introduction 
In this Green and Sustainability Innovation Bond Report 2021, Koninklijke Philips N.V. (Royal Philips) 
reports on the use of proceeds and impact valuation during the financial years 2019, 2020, and 2021 
in respect of the EUR 500,000,000 1.375 per cent Notes due March 30, 2025 (Sustainability 
Innovation Bond) that Philips issued on March 30, 2020 (ISIN XS2149368529) as well as the EUR 
750,000,000 0.500 per cent Notes due May 22, 2026 (Green Innovation Bond) that Philips issued on 
May 22, 2019 (ISIN XS2001175657). Please refer to Philips website for the prospectuses of these 
Green and Sustainability Innovation Bonds as well as the Green and Sustainability Innovation Bond 
Framework (ESG Framework). 
As of December 31, 2021, 100% of the net proceeds of the Green and Sustainability Innovation 
Bonds were allocated to Green and Sustainability Eligible Projects, defined in the prospectuses of the 
bonds as well as the Green and Sustainability Innovation Bond framework, as the total spend on 
Green and Sustainability Eligible Projects exceeded the net proceeds significantly. 
The Green and Sustainability Innovation Bonds were issued under Philips’ Green and Sustainability 
Innovation Bond Framework dated April 24, 2019 (also available on the above-mentioned website), 
which provides for certain reporting requirements. All bonds issued under the Framework follow the 
International Capital Market Association (ICMA) Green Bond Principles 2018, Social Bond Principles 
2018 and the ICMA Sustainability Bond Guidelines 2018, to ensure that the selected and disclosed 
projects meet widely recognized criteria. Subsequently, Sustainalytics successfully performed a 
second-party opinion to assess the Framework.  
Ernst & Young Accountants LLP have performed a reasonable assurance engagement over the years 
2019, 2020 and 2021. The report contains allocation and impact reporting on a portfolio level.

1. Allocation reporting 2021 (summary)
Philips - Green and Sustainability Innovation Bond Allocation Reporting
Eligible Project Portfolio
Eligible Amount 
2019 (EUR)
Eligible Amount 
2020 (EUR) Sustainability Funding
Amount (EUR)
Financially Sustainable Care
498,000,000  EUR 500,000,000 1.350% Notes due 
March 30 2025 
500,000,000 
Diagnosis & Treatment
307,000,000 
Connected Care
191,000,000 
Access to Care for Underserved Communities 
2,000,000 
Green Innovation 
213,000,000 
22,000,000 
750,000,000 
Diagnosis & Treatment
110,000,000 
Connected Care
21,000,000 
Personal Health**
77,000,000 
22,000,000 
Other
5,000,000 
Circular Products and Solutions* 
500,000,000 
Re-used components 
284,000,000 
Re-used and recycled products and systems 
65,000,000 
Circular business models 
149,000,000 
Recycled plastics purchased 
2,000,000 
Sustainable Operations programs 
15,000,000 
Carbon footprint reduction and energy efficiency improvements
14,000,000 
Water efficiency
0 
Waste
0 
Business travel reduction and online collaboration measures 
1,000,000 
Total Eligible Project Expenditures
728,000,000 
522,000,000  Funding  
1,250,000,000 
Percentage allocated
100%
Percentage new projects
100%
of which
58% invested in 2019
42% invested in 2020
Percentage capex
85%
Percentage opex
15%
ICMA GBP
60%
ICMA SBP
40% 'Access to essential services'
'Eco-efficient and/or circular economy-adapted products, production 
technologies and processes'
** EUR 22 million spend on Personal Health Green Innovation in 2020 has been allocated in 2021 as substitution of the previous allocated spend of the Domestic Appliance 
Business in 2019 (as a result of the disentanglement of the Domestic Appliance Business in 2021). 
Green and Sustainability Innovation Bonds (portfolio date December 2021) - Use of Proceeds for Eligible Projects
 EUR 750,000,000 0.500% Notes due 
May 22, 2026 
* Circular Products and Solutions includes investments in new business models. The proceeds stemming from the sales within these new models will enable Philips in 
continuity to finance future loops in these new business models and therefore support the transition to a low-carbon economy.

2. Impact reporting 2021 (summary)
A large part of the proceeds was invested in research and development (R&D) activities. While these advanced R&D activities have the potential to drive positive 
environmental and social outcomes, it is difficult to quantify the direct impacts of R&D related activities. Philips can however present several examples of recent 
developments and product launches in the eligible project categories listed in the table below. 
Green and Sustainability Innovation Bond report aligned with the ICMA handbook for Harmonized Framework for Impact Reporting
Link to template (see chapter V)
Sustainability Innovation Bond (2020) 
Eligible portfolio 
(EUR)
Share of 
Total 
Financing
Eligibility for 
Sustainability 
Bonds
Energy efficiency
Packaging
Hazardous 
substances
Weight
Circularity Lifetime reliability
Refurbished 
products (tons)
Recycled 
Plastics (tons)
CO2 emission 
reduction, scope 
3 (tons)
Waste 
collection and 
recycling (tons)
Water 
CO2 emission 
reduction, 
scope 1+2 
(tons)
Number of lives 
improved through 
sustainable 
healthcare 
innovations
 Number of lives 
improved in 
underserved 
healthcare 
communities
a/
b/
c/
Financially Sustainable Care
         498,000,000 
99.6%
100%
Diagnosis & Treatment
307,000,000 
61.4%
Image Guided  
Therapy
CT Incisive
Dose 
management
Zenition
New products, 
total impact not 
measurable yet
6,470,000
Connected Care
191,000,000 
38.2%
VS30 and MX850 
patient monitors, 
EV300 and EVO 
ventilators
New products, 
total impact not 
measurable yet
39,440,000
Access to Care for Underserved 
Communities
2,000,000 
0.4%
100%
Mobile ICUs in India
1,160,000
Total Portfolio
500,000,000 
100%
100%
-                         -   
-                          -   
-                          -   
45,910,000
1,160,000
Green Innovation Bond (2019)
Eligible portfolio 
(EUR)
Share of 
Total 
Financing
Eligibility for 
Green Bonds
Energy efficiency
Packaging
Hazardous 
substances
Weight
Circularity Lifetime reliability
Refurbished 
products (tons)
Recycled 
Plastics (tons)
CO2 emission 
reduction, scope 
3 (tons)
Waste 
collection and 
recycling (tons)
Water 
CO2 emission 
reduction, 
scope 1+2 
(tons)
a/
b/
c/
Green Innovation 
235,000,000 
31%
100%
Diagnosis & Treatment
110,000,000 
15%
Image Guided  
Therapy
New products, 
total impact not 
measurable yet
Connected Care
21,000,000 
3%
MMX Multi 
measurement 
module
Patient monitors
New products, 
total impact not 
measurable yet
Personal Health (2019)**
77,000,000 
10%
Sonicare, OneBlade, 
sterilization box for 
soothers and 
breastfeeding 
accessories
New products, 
total impact not 
measurable yet
Personal Health (2020)**
22,000,000 
3%
Other
5,000,000 
1%
Circular Products and Solutions
500,000,000 
67%
100%
Re-used components 
284,000,000 
38%
1,967
Re-used and recycled products and systems 
65,000,000 
9%
The Philips Diamond 
Select program
17,430
Circular business models 
149,000,000 
20%
Lumify portable 
ultrasound service
Recycled plastics purchased 
2,000,000 
0%
Performer Ultimate 
vacuum cleaner
1,930
Sustainable Operations programs 
15,000,000 
2%
100%
Carbon footprint reduction and energy efficiency 
improvements
14,000,000 
2%
5,000
Water efficiency
 - 
0%
Waste
 - 
0%
Business travel reduction and online collaboration 
measures 
1,000,000 
0%
15,000
Total Portfolio
750,000,000 
100%
100%
1,967
1,930
-   
17,430
20,000
*
**
a/ Signed/budgetted amount committed by the issuer for the portfolio or portfolio components eligible for Sustainability Innovation Bond or Green Innovation Bond financing
b/ This is the share of the total portfolio per category
c/ This is the percentage that is Sustainability Bond or Green Innovation Bond eligible
d/ Examples of projects
e/ Impact indicators
EUR 22 million spend on Personal Health Green Innovation in 2020 has been allocated in 2021 as substitution of the previous allocated spend of the Domestic Appliance Business in 2019 (as a result of the disentanglement of the Domestic Appliance Business in 2021).  
The majority of the proceeds was invested in research and development (R&D) activities. While these advanced R&D activities have the potential to drive positive environmental and social outcomes, it is difficult to quantify the direct impacts of R&D related activities. 
Philips can however present several examples of recent developments and product launches in the eligible project categories listed in the table below. 
Examples of innovation products in Philips’ six Green Focal Areas
Product impact indicators
Operational impact indicators
Social impact indicators
d/
e/
e/
e/
(Waste Electrical 
and Electronic 
Equipment, 
WEEE)
d/
e/
e/

3. Sustainability at Philips
At Philips, our purpose to improve people’s health and well-being through meaningful innovation is 
at the heart of everything we do. Never has this central tenet been more important than it is now, in 
these challenging times. 
As a leading health technology company, we believe that innovation can improve people's health 
and healthcare outcomes, as well as making care more accessible and affordable. In concrete terms, 
we aim to improve the lives of 2 billion people a year by 2025, including 300 million in underserved 
communities, rising to 2.5 billion and 400 million respectively by 2030. 
Guided by this purpose, it is our strategy to lead with innovative solutions that combine systems, 
smart devices, informatics and services, and leverage big data – helping our customers deliver on the 
Quadruple Aim (better health outcomes, improved patient experience, improved staff experience, 
lower cost of care) and helping people to take better care of their health at every stage of life. 
We strive to deliver superior, long-term value to our customers and shareholders, while acting 
responsibly towards our planet and society, in partnership with our stakeholders. 
We aim to grow Philips responsibly and sustainably. To this end, we have deployed a comprehensive 
set of commitments across all the Environmental, Social and Governance (ESG) dimensions that 
guide the execution of our strategy and support our contribution to UN Sustainable Development 
Goals1 3 (Ensure healthy lives and promote well-being for all at all ages), 12 (Ensure sustainable 
consumption and production patterns) and 13 (Take urgent action to combat climate change and its 
impacts). 
As a part of its strategy, Philips set company-wide ESG targets for 2025 and the overview below 
provides insights into the progress made in 2021 towards the SDG 12 and 13-related targets:  
1 https://www.un.org/sustainabledevelopment/sustainable-development-goals/

4. Green and Sustainability Innovation Bonds
Philips issued its inaugural Green Innovation Bond in 2019 as a means to finance its sustainability 
activities, underlining its commitment to advancing sustainability in all areas of the business. Next, 
Philips issued its inaugural Sustainability Innovation Bond in 2020 as a means to finance its 
innovation activities, focusing on the ‘Quadruple Aim’ of better health outcomes, improved patient 
experience, improved staff experience, and lower cost of care. The Bonds are issued under our 
Green and Sustainability Innovation Bond Framework, which is structured in line with the ICMA 
Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines 2018. The Eligible 
Project categories of the Green Bond Principles and Social Bond Principles to which Philips has 
allocated proceeds from its Green and Sustainable Innovation Bonds are ‘Eco-efficient and/or 
circular economy-adapted products, production technologies and processes’ and ‘Access to essential 
services: healthcare’.  
Sustainability Innovation Bond – Access to Essential Services: Healthcare 
With the ‘Access to essential services’ project category, proceeds have been allocated to a portfolio 
of eligible Sustainability Innovations, which belong to the following categories: (A) expenditures 
related to Sustainable Innovation R&D contributing to Financially Sustainable Care; and/or (B) 
expenditures regarding improving access to care for underserved communities.  
A. Expenditures related to Sustainable Innovation R&D contributing to Financially
Sustainable Care
The impact of Sustainability Innovation investments made in 2020, but resulting in impact in 2021, 
for example as new products have been launched, have been included in Section 2. Impact 
Reporting. Additional impact will become visible in years to come, as the resulting products and 
solutions come to the market; future sales volumes are as yet unknown.  
Diagnosis & Treatment 
Philips develops innovative diagnosis and treatment solutions that support precision diagnosis and 
effective, minimally invasive interventions and therapy, while respecting the limits of natural 
resources. Investments in Green Innovation in 2021 amounted to EUR 96 million, compared to EUR 
122 million in 2020. 
All Philips Green Focal Areas are taken into account as we aim to reduce environmental impact over 
the total lifecycle. Energy efficiency is an area of focus, especially for our large imaging systems such 
as MRI.

Use of Proceeds examples: 
•
The launch of a vendor-agnostic Radiology Workflow Suite of end-to-end solutions to drive
operational and clinical efficiency through the digitalization, integration, and virtualization of
radiology.
•
The introduction of the next generation of our leading-edge Azurion image-guided therapy
platform. An industry first, the Philips Azurion image-guided therapy platform now fully
integrates IntraSight to control imaging, physiology, hemodynamic and informatics applications
with one intuitive user control at the tableside. With this next-generation Azurion platform,
Philips also introduced a new 3D imaging solution, called SmartCT, to dramatically simplify the
acquisition and use of 3D imaging. Next-generation Azurion comprises a new range of
configurations – covering more price segments – to innovate procedures in a broad range of
therapeutic areas.
•
The expansion of Philips’ dedicated cardiovascular ultrasound offering by launching Affiniti CVx.
This system is designed to support cardiology departments in delivering better care to more
patients with increased efficiency and throughput.
•
The launch of CT Incisive and Mobile X-Ray system Zenition 50 and 70 with 30% lower packaging
weight for CT Incisive compared to Ingenuity CT, and 12-13% lower product weight for the
Zenition compared to Veradius/Pulsera.
•
The industry-first 510(k) clearance from the FDA to market a wide range of ultrasound solutions
– including our CX50 general imaging system and Lumify portable ultrasound solution – for the
management of COVID-19-related lung and cardiac complications. Portable ultrasound solutions
in particular have become valuable tools for clinicians treating COVID-19 patients, due to their
imaging capabilities, portability and ease of disinfection.
Connected Care 
Philips’ connected health IT solutions integrate, collect, combine and deliver quality data for 
actionable insights to help improve access to quality care, while respecting the limits of natural 
resources. It is our belief that well-designed e-health solutions can reduce the travel related carbon 
footprint of healthcare, increase efficiency in hospitals, and improve access to care and outcomes. 
This has also become apparent during the COVID-19 crisis. Green/EcoDesigned Innovation 
investments in 2021 amounted to EUR 32 million, compared to EUR 51 million in 2020. Green 
Innovation projects in 2021 will deliver the coming years, among other things, new EcoDesigned 
patient monitors with lower environmental footprints, reflecting all the Philips EcoDesign/Green 
Focal Areas. Energy efficiency, material reduction and closing the loop activities are the main areas 
of focus.
Use of Proceeds examples: 
•
The introduction of Rapid Equipment Deployment Kits for ICU ramp-ups, allowing doctors,
nurses, technicians and hospital staff to quickly support critical care patients. The kit combines
Philips’ advanced patient monitoring technology with predictive, patient-centric algorithms for
scale-up within hours.
•
The launch of several new monitoring solutions for the Intensive Care Unit (ICU), the general
ward and the home that feature remote monitoring capabilities and advanced analytics. These
include Philips’ IntelliVue Patient Monitors MX750/MX850 for the ICU, Philips’ Biosensor BX100
for early patient deterioration detection in the general ward, and in collaboration with
BioIntelliSense, the BioSticker medical device to help monitor at-risk patients from the hospital
to the home, to help avoid hospital re-admissions and to support chronic care management.
•
EV300 and EVO ventilators and the Intrepid HeartStart monitor & defibrillator came onto the
market with over 10% lower energy usage and/or product weight compared to their predecessor
products. For example, energy savings for the EVO and EV300 ventilators are around 25%
compared to their predecessor Trilogy 100 and 202 products.

•
The introduction of several dedicated telehealth solutions to help relieve the tremendous
pressure placed on scarce resources related to the COVID-19 patients. Based on its proven
Patient Reported Outcomes Management solution, which is being used by more than 100
healthcare institutions globally, Philips enabled Dutch hospitals and GPs to remotely screen and
monitor patients with COVID-19.
B. Expenditures regarding improving access to care for underserved communities
As a global health technology leader, Philips attaches paramount importance to enabling access to 
healthcare. Philips is committed to improve the lives of 400 million people in underserved 
communities by 2030. For that purpose, the company develops specific healthcare innovations and 
products that can be used in underserved communities. 
Expenditures related to projects, products and solutions with the aim of improving access to care for 
underserved communities are eligible. In addition, expenditures related to M&A activities aimed at 
improving access to care for underserved communities are also eligible under this category. 
Use of Proceeds example: 
•
Philips introduced new mobile ICUs in India, supporting the increased demand for flexible ICU
capacity. The ICUs can be furnished with a range of medical equipment, including ventilators,
defibrillators, and patient monitoring.

Green Innovation Bond – Eco-efficient and/or circular economy-adapted 
products, production technologies and processes  
The Green Innovation Bond issued and originally fully allocated in 2019 supports innovation in the 
environmental friendliness of Philips’ products and production processes, focusing on Philips’ six 
Green Focal Areas: Energy efficiency, Packaging, Hazardous substances, Weight, Circularity, and 
Lifetime reliability. EUR 22 million spend on Personal Health Green Innovation in 2020 has been 
allocated in 2021 as substitution of the previous allocated spend of the Domestic Appliance Business 
in 2019 (as a result of the disentanglement of the Domestic Appliance Business in 2021) . The net 
proceeds of the Green Innovation Bond have been allocated to a portfolio of eligible Green 
Innovations, which belong to the following categories: (A) expenditures regarding Green Innovation 
in R&D; (B) expenditures regarding the implementation of circular products and solutions; and/or (C) 
expenditures under the Group’s Sustainable Operations programs. 
Updated performance in 2021 
As a result of the continued investments in Green Innovation and Circular Economy, Philips was able 
to achieve a record level of Green Revenues of 73% in 2020, and 71% in 2021. At the same time, 15% 
of our revenues were generated from circular products and services in 2020 and 16% in 2021.  
New business models that enable Philips to close the loop on medical systems through take-back, 
refurbishment, spare-parts harvesting and resale will reduce resource consumption, waste and 
environmental footprint. The proceeds from sales based on these new models will enable Philips in 
continuity to finance future loops in these new business models and therefore support the transition 
to a low-carbon economy.  
Trade-in and return for resale as refurbished products and for spare parts harvesting (Diagnosis & 
Treatment and Connected Care) amounted to 1,711 tonnes in 2021.  
These new business models will continue to bring used products and components to Philips that will 
be repurposed responsibly.  
Collective collection and recycling schemes in accordance with the EU Waste Electrical and Electronic 
Equipment (WEEE) collection schemes: 
•
800 tonnes (estimated) from Diagnosis & Treatment and Connected Care field returns,
following WEEE category 8 classification
•
5,000 tonnes (estimated) from Personal Health (following WEEE category 2 classification)
In our operations, we avoided an estimated 2 kilotonnes of CO2 emissions through various on-site 
renewables projects, 3 kilotonnes of CO2 emissions through multiple energy efficiency measures in 
industrial sites, and 15 kilotonnes of CO2 emissions through the implementation of over 110 Smart 
Meeting Rooms in the Philips locations most traveled to.

Alignment with EU Action Plan on Sustainable Finance 
Impact on EU Environmental Objectives 
The eligible projects funded by the Green Innovation Bond have a direct impact on two EU 
Environmental Objectives: ‘Climate change mitigation’ and ‘Transition to a circular economy, waste 
prevention and recycling’. The projects related to climate change mitigation contribute to the 
transition towards a zero-carbon economy.  
EU Environmental Objective 
Allocation 
Impact 
Climate change mitigation 
• Philips’ Sustainable
Operations programs
• Transition support: 20
kilotonnes estimated CO2
emissions avoided
Transition to a circular 
economy, waste prevention 
and recycling 
• Green Innovation
• Implementation of
Circular Products and
Solutions
• 1,711 tonnes of goods as
trade-in and return for resale
as refurbished products and
for spare parts harvesting
• Closed the loop on more than
3,000 systems
‘Do no significant harm’ principles 
Philips takes the broad definition of sustainability into account in our business practices. The 
company follows several company policies, including an environmental policy, social engagement 
policy and human rights policy. For our product development and packaging, Philips also works with 
a regulated substances list. These documents have been published on the Philips website.   
Philips constantly strives to optimize the environmental performance of its products and to limit the 
environmental impact of their development and manufacture.  
Product development objectives include: 
•
Evaluating the environmental impact of a product or packaging over the total lifecycle
•
Taking steps toward more efficient use of materials
•
Reducing or eliminating hazardous substances
•
Reducing energy consumption
•
Improving the recyclability
Manufacturing objectives include environment-related aspects of Philips’ activities and services, 
such as emissions into air and water, use of energy and water, reducing or eliminating hazardous 
substances, recycling and waste disposal.  
Philips measures its environmental performance and publishes the results in its Annual Report. 
These results are verified by its independent auditor. The company also publishes validated 
environmental achievements and product claims.

Social safeguards 
Philips’ General Business Principles express our support and respect for human rights as set out in 
the International Bill of Human Rights and the International Labour Organization’s Declaration on 
Fundamental Principles and Rights at Work. In this, the company follows the guidance given in the 
OECD Guidelines for Multinational Enterprises. The company has a dedicated Human Rights policy 
and a Modern Slavery and Human Trafficking Statement, which have been published on the 
Philips website.  
Philips has strict environmental and social standards that help promote an inclusive workplace, 
where all employees can feel valued and respected, with safe and healthy working conditions. 
Consistent with the company’s commitment to sustainable development, we do all that is 
reasonable and practicable to minimize any adverse effects of our activities. Philips intends to 
perform regular human-rights impact assessments as part of an overall human-rights due-diligence 
process which allows the company to prevent or mitigate any potential adverse impact encountered. 
The company publishes an annual Human Rights report. 
5. External assurance
Philips has a track record in having its Annual Report on its financial, social and environmental 
performance audited against the highest (reasonable) assurance level by its independent auditor. 
With that overall reasonable assurance level, Philips is a frontrunner in its industry. Similarly, EY 
performed a reasonable assurance engagement on the Green and Sustainability Innovation Bond 
Reports over the years 2019, 2020 and 2021. The report contains allocation and impact reporting on 
a portfolio level.

Other information 
Definitions 
Unless otherwise defined in this Green and Sustainability Innovation Bond Report 2021, capitalized 
terms used herein have the meanings given to them in Philips’ Green and Sustainability Innovation 
Bond Framework. Furthermore, we refer to our Annual Report 2021 for definitions and scope of the 
Sustainability KPIs disclosed in in this report.  
Forward-looking statements 
This document contains certain forward-looking statements with respect to the results of operations 
and business of Philips and certain of the plans and objectives of Philips with respect to these items. 
Examples of forward-looking statements include statements made about our strategy, estimates of 
innovations, emissions, and other costs, future developments in Philips’ organic business and the 
completion of acquisitions and divestments.  
Forward-looking statements can be identified generally as those containing words such as 
‘anticipates’, ‘assumes’, ‘believes’, ‘estimates’, ‘expects’, ‘should’, ‘will’, ‘will likely result’, ‘forecast, 
’outlook’, ‘projects’, ‘may’ or similar expressions.  
By their nature, these statements involve risk and uncertainty because they relate to future events 
and circumstances, and there are many factors that could cause actual results and developments to 
differ materially from those expressed or implied by these statements. 
These factors include but are not limited to: Philips’ ability to gain leadership in health informatics in 
response to developments in the health technology industry; Philips’ ability to transform its business 
model to health technology solutions and services; macroeconomic and geopolitical changes; 
integration of acquisitions and their delivery on business plans and value creation expectations; 
securing and maintaining Philips’ intellectual property rights, and unauthorized use of third-party 
intellectual property rights; ability to meet expectations with respect to ESG-related matters; failure 
of products and services to meet quality or security standards, adversely affecting patient safety and 
customer operations; breach of cybersecurity; challenges in connection with Philips’ strategy to 
improve execution and other business performance initiatives; the resilience of our supply chain; 
attracting and retaining personnel; COVID-19 and other pandemics; challenges to drive operational 
excellence and speed in bringing innovations to market; compliance with regulations and standards 
including quality, product safety and (cyber) security; compliance with business conduct rules and 
regulations including privacy and upcoming ESG disclosure and due diligence requirements; treasury 
and financing risks; tax risks; reliability of internal controls, financial reporting and management 
process; global inflation. 
As a result, Philips’ actual future results may differ materially from the plans, goals and expectations 
set forth in such forward-looking statements. For a discussion of factors that could cause future 
results to differ from such forward-looking statements, see also the Risk management chapter 
included in Philips’ Annual Report 2021.

Reasonable assurance report of the independent auditor on 
Koninklijke Philips’s Green and Sustainability Innovation 
Bond Report 
To: The board of management and supervisory board of Koninklijke Philips N.V.  
Our opinion 
We have performed a reasonable assurance engagement on the accompanying Green and 
Sustainability Innovation Bond Report for the year 2021 of Koninklijke Philips N.V. (the Company) at 
Eindhoven, the Netherlands.   
In our opinion, the Green and Sustainability Innovation Bond Report is prepared, in all material 
respects, in accordance with the reporting criteria as included in the “Reporting criteria” section of 
our report.  
Basis for our opinion 
We have performed our reasonable assurance engagement on the Green and Sustainability 
Innovation Bond Report in accordance with Dutch law, including Dutch Standard 3000A ’Assurance-
opdrachten anders dan opdrachten tot controle of beoordeling van historische financiële informatie 
(attest-opdrachten)’ (Assurance engagements other than audits or reviews of historical financial 
information (attestation engagements)). Our responsibilities under this standard are further 
described in the “Our responsibilities for the assurance engagement on the Green and Sustainability 
Innovation Bond Report” section of our report.  
We are independent of Koninklijke Philips N.V. in accordance with the “Verordening inzake de 
onafhankelijkheid van accountants bij assurance-opdrachten” (ViO, Code of Ethics for Professional 
Accountants, a regulation with respect to independence). This includes that we do not perform any 
activities that could result in a conflict of interest with our independent assurance engagement. 
Furthermore, we have complied with the “Verordening gedrags- en beroepsregels accountants” 
(VGBA, Dutch code of ethics).  
We believe that the assurance evidence we have obtained is sufficient and appropriate to provide a 
basis for our opinion.  
Reporting criteria 
The reporting criteria used for the preparation of the Green and Sustainability Innovation Bond 
Report are the reporting criteria developed by Koninklijke Philips N.V. and are disclosed in “Royal 
Philips Green and Sustainability Innovation Bond Framework” version 24 April 2019 as available on 
https://www.philips.com/a-w/about/investor-relations/debt.html and the applied supplemental 
reporting criteria as disclosed in the section “Other information” of the Green and Sustainability 
Innovation Bond Report.   
The absence of an established practice on which to draw, to evaluate and measure the information in 
the Green and Sustainability Innovation Bond Report allows for different, but acceptable, 
measurement techniques and can affect comparability between entities and over time.  
Consequently, the Green and Sustainability Innovation Bond Report needs to be read and 
understood together with the reporting criteria used.

Materiality 
Based on our professional judgement we determined materiality levels for each relevant part of the 
Green and Sustainability Innovation Bond Report and for the Green and Sustainability Innovation 
Bond Report as a whole. When evaluating our materiality levels, we have taken into account 
quantitative and qualitative considerations as well as the relevance of information for both 
stakeholders and the Company.  
Limitations to the scope of our assurance engagement 
The Green and Sustainability Innovation Bond Report includes prospective information such as 
ambitions, strategy, plans, expectations and estimates. Inherent to this prospective information, the 
actual future results are uncertain. We do not provide any assurance on the assumptions and 
achievability of prospective information in the Green and Sustainability Innovation Bond Report.  
The references to external sources or websites are not part of our assurance engagement on the 
Green and Sustainability Innovation Bond Report. We therefore do not provide assurance on this 
information.  
Our opinion is not modified in respect to these matters.  
Responsibilities of the board of management and the supervisory board for the Green and 
Sustainability Innovation Bond Report 
The board of management is responsible for the preparation of a reliable and adequate Green and 
Sustainability Innovation Bond Report in accordance with the reporting criteria as included in the 
“Reporting criteria” section of our report. The board of management is solely responsible for 
selecting and applying these reporting criteria, taking into account applicable law and regulations 
related to reporting. In this context, the board of management is responsible for the identification of 
the intended users and the criteria being applicable for their purposes. The choices made by the 
board of management regarding the scope of the Green and Sustainability Innovation Bond Report 
and the reporting policy are summarized in section “Other information” of the Green and 
Sustainability Innovation Bond Report.  
Furthermore, the board of management is responsible for such internal control as it determines is 
necessary to enable the preparation of the Green and Sustainability Innovation Bond Report that is 
free from material misstatement, whether due to error or fraud.  
The supervisory board is responsible for overseeing the reporting process of the Green and 
Sustainability Innovation Bond Report of Koninklijke Philips N.V.  
Our responsibilities for the assurance engagement on the Green and Sustainability Innovation 
Bond Report 
Our responsibility is to plan and perform our reasonable assurance engagement in a manner that 
allows us to obtain sufficient and appropriate assurance evidence for our opinion.  
Our reasonable assurance engagement has been performed with a high, but not absolute, level of 
assurance, which means we may not have detected all material errors and fraud during our 
assurance engagement.  
We apply the ’Nadere voorschriften kwaliteitssystemen’ (NVKS, regulations for quality management 
systems) and accordingly maintain a comprehensive system of quality control including documented 
policies and procedures regarding compliance with ethical requirements, professional standards and 
other relevant legal and regulatory requirements.

The procedures of our reasonable assurance engagement included among others: 
•
Performing an analysis of the external environment and obtaining an understanding of the sector,
insight into relevant sustainability themes and issues and the characteristics of the company as far
as relevant to the Green and Sustainability Innovation Bond Report 
•
Evaluating the appropriateness of the reporting criteria used, their consistent application and
related disclosures on the Green and Sustainability Innovation Bond Report. This includes the
evaluation of the reasonableness of estimates made by the management board 
•
Obtaining an understanding of the systems and processes for collecting, reporting and
consolidating the information in the Green and Sustainability Innovation Bond Report, including
obtaining an understanding of internal control relevant to our assurance engagement, but not for
the purpose of expressing an opinion on the effectiveness of the company’s internal control 
•
Identifying and assessing the risks that the Green and Sustainability Innovation Bond Report is
misleading or unbalanced, or contains material misstatements, whether due to error or fraud.
Designing and performing further assurance procedures responsive to those risks, and obtaining
assurance evidence that is sufficient and appropriate to provide a basis for our opinion. The risk
that the Green and Sustainability Innovation Bond Report is misleading or unbalanced, or the risk
of not detecting a material misstatement resulting from fraud is higher than for one resulting
from errors. Fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. These further assurance procedures consisted amongst others of: 
−
Interviewing management and relevant staff responsible for the strategy, policy and results
relating to the Green and Sustainability Innovation Bond Report 
−
Interviewing relevant staff responsible for providing the information for, carrying out internal
control procedures on, and consolidating the data in the Green and Sustainability Innovation
Bond Report 
−
Obtaining assurance information that the Green and Sustainability Innovation Bond Report
reconciles with underlying records of the company 
−
Evaluating relevant internal and external documentation, on a test basis, to determine the
reliability of the Green and Sustainability Innovation Bond Report 
−
Performing an analytical review of the data and trends in the information submitted for
consolidation at corporate level 
•
Reconciling the relevant financial information with the related financial statements 
•
Evaluating the overall presentation and content of the Green and Sustainability Innovation Bond
Report 
•
Considering whether the Green and Sustainability Innovation Bond Report as a whole reflects the
purpose of the reporting criteria used   
   
Ernst & Young Accountants LLP     
J. Niewold