Philips 2008 Annual Report Download - page 63

EcoVision4
With our latest environmental action program,
EcoVision4, we have committed to:
generate 30% of total revenues from Green Products •
by 2012, compared with 15% in 2006
double our investment in Green Innovations to •
a cumulative EUR 1 billion, and
further increase the energy efficiency of our operations •
by 25% by 2012, as well as reduce our total operational
carbon footprint by 25%, both compared with the
base year of 2007.
Results for each target are highlighted on the
following pages.
Green Product sales
Sales from Green Products increased 12.5% in 2008,
contributing significantly to the total revenue stream.
As a percentage of the Group total, Green Product
sales rose to 22.6%, up from 19.8% in 2007. Excluding
the major acquisitions in 2008 (Genlyte and Respironics) ,
the percentage increased to 24.9%.
Consumer Lifestyle contributed most to the overall
increase with the introduction of 61 Green Products in
2008. Further progress was also achieved in the Lighting
sector, where the share of Green Products increased.
Overall, improvements have been predominantly
realized in our energy efficiency Green Focal Area.
Green Innovations
In 2008 Philips invested approximately EUR 282 million
in Green Innovations – the Research & Development
spend related to the development of new generations of
Green Products and breakthrough Green Technologies.
Philips Healthcare innovation projects consider all of
the Green Focal Areas and aim to reduce total life
cycle impact. In particular the sector focuses on reducing
energy consumption, weight and hazardous substances.
Consumer Lifestyle’s investment in Green Innovations
is dedicated to the development of new Green Products,
focusing on further enhancing energy efficiency
and on
closing material loops.
The Lighting sector accounts for more than half of
the total spend on Green Innovations. The focus is
on developing new energy-efficient lighting solutions,
further enhancing current Green Products and driving
toward technological breakthroughs, such as solid-
state lighting.
Sales of Green Products
as a % of total sales
25
20
15
10
5
0
20
2007
23
2008
Green Product sales by sector
in millions of euros
Healthcare
1,527
Consumer Lifestyle
1,478
Lighting
2,970
Green Innovation investment
in millions of euros
Healthcare
54
Consumer
Lifestyle
36
Lighting
151
Corporate Technologies
41
Philips Annual Report 2008 63
122
Performance statements
114
Supervisory Board report
110
Our leadership
94
Risk management
70
Our sector performance