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Turnover of Philips’ Green Flagship products doubles to 2 billion Euros


Monday, March 06, 2006, Philips launches 2005 Sustainability Report, showing major achievements and creating value in sustainability

In its annual sustainability report published today, Philips shows positive results from its focus on key global environmental challenges and innovations for emerging markets. Chief among these were the launch of 50 new ‘Green Flagships’ products, bringing the total to more than 160. These products have a significantly reduced environmental impact. In addition, New Sustainable Business Initiative pilots were successfully completed and new ones started, aiming to create both social and economic return on investment.

Barbara Kux, Chief Procurement Officer Philips, member of the GMC and Chair of the Sustainability Board: “Philips is dedicated to embedding sustainability throughout our organization. The doubling of our Green Flagship products’ turnover in 2005, from 1 billion Euros in 2004 to 2 billion in 2005, is a major achievement and sets new goals for sustainable value creation and growth.”

Green Flagship products

Green Flagship products provide concrete examples of how Philips improves the quality of life and tackles the issues - such as global warming - that resonate with consumers worldwide. Green Flagship products must be proven to offer substantial better environmental performance than their predecessors or closest commercial competitors on energy consumption, packaging, hazardous substances, weight, recycling & disposal and lifetime reliability. These products now account for a turnover of 2 billion Euros, double that of 2004.

Among 2005’s additions are: new digital radiography systems which cut energy consumption by 41%, Flat TVs which use 39 % less energy and contain no hazardous substances; and an internal active antenna for portable TVs which uses 40% less energy and offers 85% lower product weight compared to its competitor.

Philips sees sustainable business as central to long-term profitable growth and value creation. In the last five years, it has invested over 400 million Euros in green lighting technologies. 2005 saw it launch a number of new energy-efficient products – also Green Flagships – with the potential to drastically reduce CO2 emissions.Philips has just released research showing that new energy efficient lighting control systems, such as ActiLume and LightMaster Modular, could lead to 1-2 billion Euros in cost savings and reduce CO2 emissions equivalent to the planting of 300 million trees.

New Sustainable Business Initiative pilots

During 2005, Philips also completed pilots of New Sustainable Business Initiatives (NSBIs) and continued with its innovations designed to improve the quality of life for all consumers, especially those at the base of the global economic pyramid. DISHA – whose first pilot was successfully concluded in 2005 – is based around a mobile ‘teleclinic’ with multi-diagnostic capabilities and a satellite link to a remote specialist hospital. A second pilot with the same four non-Philips strategic partners will be launched in 2006. This will further develop and refine the project design, hardware configuration and service model, and will include a ‘hub’ van and other smaller vehicles.

A new pilot among the number of business initiatives started is a cost-effective rechargeable lighting solution for people in the developing world. These lighting solutions do not need grid electricity and reduce the use of conventional environmental unfriendly materials for a better health and hygiene at home.

Also successful in trials was a woodstove that reduces smoke and toxic emissions. Designed for cooking in developing countries, the stove could benefit up to 300 million families in the world’s poorest regions and help reduce the smoke-related diseases that lead to some 1.6 million deaths each year. Used properly, the woodstove reduces fuel consumption by up to 80% and generates electricity, which can power external equipment such as lighting or radios.

In addition, today Philips also makes available hard copies of its Annual Report 2005. A link to a soft copy is provided below.

* Philips Sustainability Annual Report 2005:
* Philips Annual Report 2005:
* Press Release on Philips’ smokeless woodstove:

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is one of the world’s biggest electronics companies and Europe’s largest, with sales of EUR 30.4 billion in 2005. With activities in the three interlocking domains of healthcare, lifestyle and technology and 159,200 employees in more than 60 countries, it has market leadership positions in medical diagnostic imaging and patient monitoring, color television sets, electric shavers, lighting and silicon system solutions. News from Philips is located at


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