Green products reach 25% of total Philips sales

27 February 2009

Royal Philips Electronics has confirmed that it is on track to deliver on the targets set out in EcoVision4.

The sustainability agenda unveiled by the company in 2007 focused on improving the energy efficiency of its products and operations.

It reported that green products sales increased to around 25% of total sales in 2008, compared with 20% in 2007; excluding acquisitions of Genlyte and Respironics. It is Philips’ target to derive 30% of total sales from green products by 2012, as laid out in EcoVision4. The company also put 91 new Green Products on the market; 72% more than in the previous year.

To further strengthen its EcoVision drive, Philips announced additional recycling initiatives, based on the principle of individual producer responsibility. In India, Brazil and Argentina, the company will set-up cost-effective voluntary collection and recycling systems, working with partners to develop a level-playing field on the principle of integrating environmental costs into the product price.

Rudy Provoost, Member of Philips' Board of Management and Chair of Philips’ Sustainability Board and CEO of Philips Lighting, said: “We have once again demonstrated that sustainability is our business opportunity, creating value for our company, improving people’s lives and contributing to a better environment. Sustainability is a powerful platform for innovation and growth and we are committed to continuously invest and explore future possibilities to improve the health and well-being of our planet and its people.”

In 1994, Philips developed the EcoVision programme which covers the production and development of all products. It updated the EcoVision programme in 2007 formulating the following targets over the period 2007 – 2012:
• Generate 30% of total revenues from green products, contributing to the energy efficiency challenge with these products and inspiring individuals to make simple changes that can collectively have profound results. Green products need to have a significantly better score (of at least 10%) in one or more of their Green Focal areas, compared to a competitor or predecessor product. The Green Focal Areas are energy efficiency, packaging, hazardous substances, weight, recycling and disposal, and lifetime reliability. In addition, the Life Cycle approach is used to determine a product’s overall environmental improvement. It calculates the environmental impact of a product over its total life cycle
• An additional target is to further increase the energy efficiency of operations by 25% by concentrating on energy efficiency and associated CO2 reduction as the main topic of internal sustainability efforts.
• Finally, there is an aim to double investment in Green Innovations to EUR 1 billion and focus on product improvements and breakthrough solutions for Green Technology, including reducing the chemical content of products and designing them better for collection and recycling. In 2008, Philips invested EUR 282 million in Green Innovation

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