Our plan for 2040: Net-zero greenhouse gas emissions

The climate emergency is a reality that we need to fight together as a whole. That’s why, at Signify, we
aimed to double the pace of the Paris Agreement over our complete value chain, both in our operations
and by enabling customers and suppliers to advance their positive climate impact to cut their emissions
with our energy-efficient and solar products, systems, and services.

That’s why we launched our 2040 Climate Transition Plan, with ambitious but achievable commitments
aligned with the Sustainable Development Goals established by the United Nations and validated by the
Science-Based Targets Initiative (SBTi):

• Reach net-zero GHG emissions across the value chain by 2040
• Reducing absolute scope 1 and 2 GHG emissions 50% by 2030 against a 2019 baseline. We also
commit to reducing absolute scope 3 GHG emissions 50% within the same timeframe.
• In the long term we made a commitment to reduce absolute scope 1 and 2 GHG emissions 90%
by 2040 against a 2019 baseline. Signify also commits to reducing absolute scope 3 GHG
emissions 90% within the same timeframe.

This plan is inspired by the 4 A’s of Climate Leadership, published by the We Mean Business Coalition
(WMBC): Ambition, Action, Advocacy and Accountability. This means that we focus on how we respond
to the climate crisis with Ambition, achieve our ambition with our Action, lead a broader transition
through Advocacy and drive progress by showcasing Accountability.
And what does this entail?

Our Ambition is clear: we commit to reaching Net-zero greenhouse gas emissions across our entire value
chain by 2040, 10 years earlier than required by the Paris Agreement 1.5°C. To meet our net-zero targets,
we have put in place a series of initiatives and programs across our operations and upstream and
downstream value chain.

Our Actions have a 360° approach: set across our operations and upstream and downstream value chain.
From engaging our suppliers, logistics activities, our own operations, employee’s business travel and
commuting, to the product use phase and the end-of-life treatment of products.

But of course, to reach our goals, we can’t do everything by ourselves. That’s why Advocacy is a
significant part of our Climate Transition Plan. To reach net-zero, we need support from government and
business, particularly in converting power grids to renewables and incentivizing greater energy efficiency
across our economies.

This combination – renewables plus energy efficiency – will reduce carbon emissions, lessen our reliance
on costly fossil fuels, reduce costs for households and companies, and create local, clean energy jobs.
All of our efforts require Accountability and responsibility. Over recent years, the market for conventional
lighting has declined. As it has done so, Signify has shifted our business toward more energy-efficient and
longer-lasting LED lighting. We endeavor to manage this transition responsibly – we ensure, for example,
that our products remain affordable, particularly for those on low incomes.

In emerging economies, we work through the Signify Foundation to address energy poverty, installing
lighting in hospitals, homes and local communities as part of our Brighter Lives commitment to light ten
million lives by 2025.

At Signify we believe that this new path is a necessary one to successfully combat climate change and
reach the goals set out in the Paris Agreement 1.5 °C pathway. To achieve this, we need to work together
to reduce the world’s dependency on fossil fuels and create a cleaner, more sustainable economy for our
shared future.

Learn more about how at Signify we’ll be working towards these targets in our Climate Transition Plan
https://www.assets.signify.com/is/content/Signify/Assets/signify/global/20240618-signify-climate-
transition-plan-2024.pdf