Philips 2008 Annual Report Download - page 181

These events drove us to create the complementary, more focused
EcoVision4 program. Launched in September 2007, this latest
EcoVision program focuses on reducing the energy consumption of
our products and facilities. With EcoVision4 we have committed to:
generate 30% of total revenues from Green Products (up from
•
15% in 2006)
double our investment in Green Innovations to a cumulative
•
EUR 1 billion
further increase the energy efficiency of our operations by 25%
•
and reduce our operational carbon footprint by 25%, both
compared with the base year of 2007.
We are reporting on the results of both programs versus targets and
will continue to do so until each program concludes.
In addition to our environmental initiatives we have been running
programs in other areas. Our employee programs include engagement,
diversity and inclusion, and health and safety. Through our Supplier
Sustainability Involvement Program we have been embedding
sustainability into our supply management processes since 2003.
Further, we have a targeted approach to our social investment program
that reflects our business. In keeping with this we direct our efforts
toward projects to upgrade lighting, particularly in schools, and to
healthcare projects that focus on children.
Scope of sustainability reporting
The scope of our sustainability performance reporting encompasses
the consolidated Philips Group activities, following the consolidation
criteria detailed in this section.
The consolidated selected financial information in this sustainability
performance chapter has been prepared in accordance with generally
accepted accounting principles in the United States of America
(US GAAP).
Comparability and completeness
For comparability reasons, all economic, environmental and social
performance data exclude the former activities of the Semiconductors
sector, which was divested in September 2006.
Environmental data are measured for those manufacturing sites with
more than 50 industrial employees. Integration of newly acquired
manufacturing sites is scheduled according to a defined integration
schedule, in principle for the first full reporting year after the year of
acquisition. Data for activities that are divested during the reporting
year are not included for the full-year reporting.
Social data cover all employees, including temporary employees, but
exclude contract workers. Reporting of health and safety data by new
acquisitions must start in the first year after acquisition. Data for
activities that are divested during the reporting year are not included
for the full-year reporting.
Data definitions and scope
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, 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 (raw materials,
manufacturing, product use and disposal).
Green Products need to have a score in at least one Green Focal Area
that is significantly better (at least 10%), compared to the reference
product, which can be a competitor or predecessor product in the
particular product family. Because of the different product portfolios,
sectors has specified additional criteria for Green Products.
Green Innovations
Green Innovations comprise all R&D activities directly contributing
to the development of Green Products or Green Technologies.
A wide set of additional criteria and boundaries have been defined,
as the basis for internal and external validation.
Environmental data
All environmental data from manufacturing operations are reported
on a half-year basis in our intranet-based EcoVision reporting and
validation tool, according to defined company guidelines that include
definitions, procedures and calculation methods.
Internal validation processes are followed to ensure consistent data
quality. The sector validation officers provide support to the data
collectors at site level and regularly conduct audits to assess the
robustness of data reporting systems.
Tracking and reporting these EcoVision data from manufacturing
is conducted to measure progress against our EcoVision III
program targets.
Reporting on ISO certification is based on actively reporting
manufacturing units.
Operational carbon footprint
The Philips operational carbon footprint includes:
Industrial – manufacturing and assembly sites•
Non-industrial – offices, warehouses, IT centers and R&D facilities•
Business travel – lease and rental cars, and airplane travel•
Distribution – air, sea and road transport.•
All conversion factors used to transform input data (for example,
amount of ton-kilometers) into CO2 emissions are from the
Greenhouse Gas Protocol, except for business travel, where the
providers supplied CO2 data based on their own methodology. The
Greenhouse Gas Protocol distinguishes three scopes, the first two of
which are mandatory to report on.
Scope 1 – direct CO
• 2 emissions – is completely reported on
with direct emissions from our industrial and non-industrial sites.
Emissions from industrial sites, which consists of direct emissions
resulting from processes and fossil fuel combustion on site, are
reported in the EcoVision reporting system. Emissions from
industrial sites that are not yet reporting in EcoVision following
recent acquisitions are calculated based on average CO2 emissions
per square meter of comparable sites in the same sector.
Scope 2 – CO
• 2 emissions resulting from the generation of
purchased electricity for our premises – is completely reported
on with electricity use from industrial and non-industrial sites.
As reported in the EcoVision reporting system, this consists of
indirect emissions from purchased electricity, steam and heat.
As with Scope 1, emissions from industrial sites that are not yet
reporting in the EcoVision database following recent acquisition
are calculated based on average CO2 emissions per square meter
of compatible sites in the same sector.
Scope 3 – other CO
• 2 emissions related to activities not owned
or controlled by the Company – is reported on for our business
travel and distribution activities. Commuting by our employees,
upstream distribution (before suppliers ship to us), outsourced
activities and emissions resulting from product use by our
customers are not included.The calculations for business travel by
lease and rental cars are based on actual fuel usage. Emissions from
business travel by airplane are calculated by the supplier based on
airplane-specific emission factors, the number of take-off and
landing movements, and the amount of climb, cruise and descent
activities. Further, emissions from air freight for distribution are
calculated based on the amount of ton-kilometers transported
between airports (distinguishing between short, medium and long
hauls). For sea transport, only data on transported volume were
available so an estimate had to be made about the average weight
of a container. Transportation to and from ports is not registered.
This fore and aft part of air and sea transport was estimated to be
around 3% of the total distance, consisting of a mix of modalities,
and was added to the total emissions accordingly. CO2 emissions
from road transport were also calculated based on ton-kilometers.
If data were incomplete, the emissions were estimated based on
spend. Return travel is not included in the data for sea and road
distribution.
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254
Corporate governance
250
Reconciliation of
non-US GAAP information
262
Ten-year overview
266
Investor information