Philips to invest EUR 2 billion in green innovation by 2015
Philips records healthy increase in green product sales in 2010
Amsterdam, The Netherlands - Royal Philips Electronics (NYSE: PHG, AEX: PHI) today announced that it will allocate EUR 2 billion for investments in Green Innovation by 2015 to accelerate sustainable business across the company’s three sectors. In 2010, Philips’ cumulative investments in Green Innovation amounted to EUR 1 billion, surpassing its Green Innovation investment target two years ahead of schedule. As a result of the company’s continued commitment to sustainable innovation, 38% of total 2010 sales was generated by Philips Green Products, up from 31% in 2009.
“We consider sustainability to be a driver of growth and an integral part of the Philips DNA,” said Rudy Provoost, Chairman of Philips’ Sustainability Board and CEO of Philips Lighting. ”By doubling our investment in Green Innovation by 2015, we re-confirm our ambition as a health and well-being company to deliver meaningful and sustainable solutions. This commitment also supports our Vision 2015 growth strategy, driven by global trends, such as the need for more sustainable and energy efficient products and solutions”.
The increase in green sales, as a percentage of total sales in 2010, was achieved primarily by the company’s continued focus on EcoDesign across sectors, a process aimed at developing products with a significantly lower environmental impact throughout its lifecycle.
Recent introductions of Green Products from Healthcare include the Philips Essential, a patient monitoring system, designed for clinical workflow and patient safety during transport, which offers a 48% reduction in energy use, 72% less product weight, 32% less packaging weight and a lead-acid free battery.
Notable green product launches in Consumer Lifestyle included the Econova TV, the first PVC/BFR free television in the world, which received both the EU-energy “A+” label as well as the EISA Best Green TV 2010/2011 award.
Lighting contributed to nearly half of total Philips Green Product sales and continued to make important strides with the commercial launch of the 12-watt EnduraLED lamp, the industry’s first replacement for the traditional 60-watt incandescent lamp. This development, the first of its category to receive the ENERGY STAR qualification, was recognized by the American Lighting Association as the winner in the LED Replacements Lamp division for the Tomorrow Awards and was named “Product of the year 2010” by Popular Science Magazine.
The Philips 2010 sustainability update is an integrated part of the Philips 2010 Annual Report available at: www.philips.com/annualreport2010
Notes to the editor about Philips Green Products:
Green Products offer a significant environmental improvement in one or more Green Focal Areas: Energy Efficiency, Packaging, Hazardous Substances, Weight, Recycling and Disposal as well as Lifetime Reliability.
The lifecycle approach is used to determine a product’s overall environmental improvement. It calculates the environmental impact of a product over its total life cycle (raw materials, manufacturing, product use and disposal).
Green Products need to have a score in at least one Green Focal Area than is significantly better (at least 10%), compared to the reference product, which can be a competitor or predecessor product in particular product family. Because of different product portfolios, sectors have specified additional criteria for Green Products.
About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a diversified health and well-being company, focused on improving people’s lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of “sense and simplicity”. Headquartered in the Netherlands, Philips employs 119,000 employees in more than 60 countries worldwide. With sales of EUR 25.4 billion in 2010, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in flat TV, male shaving and grooming, portable entertainment and oral healthcare. News from Philips is located at www.philips.com/newscenter.
This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
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