Philips increases sales of Green Products to 25% of total sales
-Philips on track to meet the ambitious targets set out in its EcoVision4 environmental program
-Green Product sales increased from 20% to 25% of total sales in 2008
-Philips announces additional recycling initiatives in India, Brazil and Argentina
Royal Philips Electronics (NYSE: PHG, AEX: PHI) confirmed today it is on track to deliver on the targets set out in EcoVision4 - the ambitious sustainability agenda Philips unveiled in 2007 focusing on improving the energy efficiency of its products and operations.
The company reported that Green Products sales increased to around 25% of total sales in 2008, compared with 20% in 2007. 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.
In commenting, Rudy Provoost, Member of Philips' Board of Management and Chair of Philips' Sustainability Board and CEO of Philips Lighting, said: "As a global health and well-being company, 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. "
To further strengthen its EcoVision drive, Philips announced additional recycling initiatives, based on the principle of individual producer responsibility. In India, Brazil and Argentina, Philips will set up cost-effective voluntary collection and recycling systems, working together with partners to develop a level-playing field on the principle of integrating environmental costs into product price. "These initiatives illustrate a strong commitment to product stewardship, going beyond integrating sustainability into all our business processes and contributing to Philips's sustainability business drive by offering cost reduction opportunities whilst safeguarding the planet." added Rudy Provoost.
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 approximately 121,000 employees in more than 60 countries worldwide. With sales of EUR 26 billion in 2008, 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.
In 1994, Philips developed the EcoVision program which covers both the production and the development of all our products. We updated our EcoVision program 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 collectively can have profound results.
-Further increase the energy efficiency of our operations by 25% - concentrating on energy efficiency and associated CO2 reduction as the main topic of internal sustainability efforts.
-Double our investment in Green Innovations to EUR 1 billion - focusing on product improvements and on breakthrough solutions for Green Technology also including reducing the chemical content of our products and designing them better for collection and recycling.
 Excluding acquisitions of Genlyte and Respironics
 Green Products need to have a significantly better score (at least 10%) in one or more of our Green Focal Areas, compared to a competitor or predecessor product. The Green Focal Areas are: Energy efficiency, Packaging, Hazardous substances, Weight, Recycling and disposal, 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