Philips generates 27.9% of total revenue — approximately €5 billion annually — from circular products and services as of 2025. In 2015, that number was 7%. The difference between 7% and 27.9% over a decade is not a product innovation story. It is a governance infrastructure story.
Philips built circular design requirements into procurement governance, embedded take-back and refurbishment obligations into channel partner agreements, linked executive compensation to circular KPIs, and had KPMG externally audit the circular revenue methodology. Governance was the enabling architecture. Circular revenue was the outcome.
Philips is the only major electronics company in the world publicly quantifying and externally auditing circular revenue as a distinct business metric. Samsung, Dell, Apple, Schneider — none disclose this figure. That transparency is itself a governance signal. And it has a valuation premium attached to it.
For Indian mid-caps building European supply chain relationships, this is not a benchmark to admire from a distance. With EU ESPR (effective July 2024) mandating circular product design and India's EPR framework now covering electronics, plastics, batteries, and automotive steel — circularity is moving from voluntary to mandatory. The governance infrastructure to enable it must be built now.