When companies talk about “purpose,” it can often feel like lofty rhetoric. But for Maurice Loosschilder, Global Head of Sustainability of Signify, the world’s leading lighting company, purpose is not a side note. It’s the very core of how the business operates. Since its spin-off from Philips in 2016, Signify has built its identity around the mantra “Brighter Lives, Better World”, embedding sustainability into its corporate DNA. Loosschilder, who has been instrumental in shaping this journey, sees purpose not as a “nice-to-have,” but as a business imperative that drives innovation, growth, and resilience.

In our conversation, Loosschilder speaks candidly about the opportunities, challenges, and trade-offs of embedding ESG into a global business. He explains how leadership and culture play a decisive role, why skepticism, both internal and external, must be addressed head-on, and what the next generation of ESG leaders need to succeed.

Purpose as Core Strategy

For Loosschilder, purpose in practice means aligning what the world needs with what the company does best. “For me, purpose means combining what the world needs with what we are good at as a business: driving change and positive impact through light.”

With lighting accounting for 2% of global greenhouse gas emissions, a share comparable to aviation, the stakes are high. According to Loosschilder, simply switching all existing installations to LED could cut that figure in half.

The company’s sustainability journey accelerated when it rebranded as Signify in 2018. “That was the moment we could redefine our purpose,” he recalls. Sustainability was woven directly into the strategy and business processes, not as a separate agenda but as one of its two brand pillars.

Purpose and Profit: Mutually Reinforcing

One of the most common criticisms of ESG is that it conflicts with profitability. Loosschilder rejects this view. “We are in the fortunate position of selling low-carbon technology. Our products help customers cut emissions and save costs at the same time,” he notes. Beyond customer benefits, energy efficiency in lighting frees up grid capacity to power the electrification of heating and transport, another commercial and societal win.

Still, he admits the journey is not always easy. Moving beyond energy efficiency to broader sustainable materials, such as bio-based plastics or recycled content, remains challenging given higher costs and limited availability.

While Loosschilder convincingly frames purpose and profit as mutually reinforcing, much of Signify’s advantage stems from selling inherently “sustainable” products. The real test, as he acknowledges, lies in tackling harder trade-offs like material transitions where costs and customer demand don’t align. Transparency, cultural engagement, and regulatory momentum may help bridge that gap – but the question remains whether bold ESG ambitions can withstand commercial pressures over the long term.

Leadership and Culture

The role of leadership is pivotal. Signify’s former CEO was, in Loosschilder’s words, “our biggest ambassador for sustainability.” As of September 2025, a new CEO has taken over, bringing a strong track record in sustainable business. Yet Loosschilder is clear: top-down commitment is only half the equation. “It should also be bottom-up. I like it when people intrinsically feel the drive to do their jobs more sustainably.”

To embed ESG across the organisation, Signify integrates sustainability targets into its executive bonus system: 25% of long-term incentives are tied to ESG outcomes. Loosschilder says this transformed his role from pushing sustainability to being pulled into business conversations as a strategic partner. To engage employees, the company runs quarterly sustainability employee engagement campaigns, complete with challenges, prizes, and even vegan lunches, to make progress tangible and fun.

Tackling Scepticism and Trade-offs

Loosschilder doesn’t shy away from the harder realities. Supply chain complexity, margin pressures, and higher costs for sustainable alternatives can weaken the business case. Meanwhile, both employees and the public are quick to spot inconsistencies. For him, credibility comes from showing results: “You can keep talking about it, but you have to show results. We achieved zero waste to landfill in 2020 and operate on 100% renewable electricity – not because it brings financial benefit, but because it’s the right thing to do.”

He also emphasises visibility: sometimes replacing plastic coffee cups can be as powerful as installing solar panels, simply because employees see the change. The key is balancing high-impact actions with symbolic gestures that build internal momentum and create ambassadors.

Regulation as a Driver

With the EU’s new CSRD reporting rules, many companies are struggling. For Signify, with over a decade of assured sustainability reporting, the transition has been smoother. Loosschilder sees regulation not just as compliance, but as an opportunity: “We are big fans of transparency. It shows who the real leaders are, and we believe that benefits us, if there’s a level playing field.”

Future Leadership and Legacy

Looking ahead, Loosschilder stresses the importance of ESG leaders with business acumen and resilience. “Sustainability strategy cannot live apart from business strategy. To lead, you need optimism, persistence, and vision: never take the first ‘no’ as the final answer.”

His own team, he says, is intrinsically motivated, playing what he calls “Champions League sustainability.” His role is to lead by example, celebrate successes, and give his people credit and visibility.

In five years, he hopes Signify will be recognised not just for its own progress, but for making suppliers and customers more sustainable too. And on a personal note, he hopes to be remembered as passionate, inclusive, and visionary: “My role is to guide the conversation and bring ideas forward, ensuring sustainability is always part of the company’s future direction.”