Philips 2012 Annual Report Download - page 228

18 Definitions and abbreviations 18 - 18
228 Annual Report 2012
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 and Lifetime reliability. 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 prove leadership in at least one Green Focal
Area compared to industry standards, which is defined by a sector
specific peer group. This is done either by outperforming reference
products (which can be a competitor or predecessor product in the
particular product family ) by at least 10%, outperforming product
specific eco-requirements or by being awarded with a recognized eco-
performance label. Because of different product portfolios, sectors
have specified additional criteria for Green Products, including product
specific minimum requirements where relevant.
Growth geographies
Growth geographies are the developing geographies comprising of Asia
Pacific (excluding Japan, South Korea, Australia and New Zealand),
Latin America, Central & Eastern Europe, the Middle East (excluding
Israel) and Africa.
Hydrochlorofluorocarbon (HCFC)
Hydrochlorofluorocarbon is a fluorocarbon that is replacing
chlorofluorocarbon as a refrigerant and propellant in aerosol cans.
Income as % of shareholders’ equity (ROE)
This ratio measures income from continuing operations as a percentage
of average shareholders’ equity. ROE rates Philips’ overall profitability
by evaluating how much profit the company generates with the money
shareholders have invested.
Income from continuing operations
Net income from continuing operations, or net income excluding
discontinued operations.
Initiatief Duurzame Handel (IDH)
IDH is the Dutch Sustainable Trade Initiative. It brings together
government, frontrunner companies, civil society organizations and
labor unions to accelerate and up-scale sustainable trade in mainstream
commodity markets from the emerging countries to Western Europe.
International Standardization Organization (ISO)
The International Standardization Organization (ISO)is the world’s
largest developer and publisher of International Standards. ISO is a
network of the national standards institutes of more than 160
countries, one member per country, with a Central Secretariat in
Geneva, Switzerland, that coordinates the system. ISO is a non-
governmental organization that forms a bridge between the public and
private sectors.
Light-Emitting Diode (LED)
Light-Emitting Diode (LED), in electronics, is a semiconductor device
that emits infrared or visible light when charged with an electric
current. Visible LEDs are used in many electronic devices as indicator
lamps, in automobiles as rear-window and brake lights, and on
billboards and signs as alphanumeric displays or even full-color posters.
Infrared LEDs are employed in autofocus cameras and television
remote controls and also as light sources in fiber-optic
telecommunication systems.
Lives improved by Philips
To calculate how many lives we are improving, market intelligence and
statistical data on the number of people touched by the products
contributing to the social or ecological dimension over the lifetime of
a product are multiplied by the number of those products delivered in a
year. After elimination of double counts – multiple different product
touches per individual are only counted once – the number of lives
improved by our innovative solutions is calculated. In 2012 we
established our baseline at 1.7 billion a year.
Mature geographies
Mature geographies are the highly developed markets comprising of
Western Europe, North America, Japan, South Korea, Israel, Australia
and New Zealand.
Millennium Development Goals (MDG)
Adopted by world leaders in the year 2000 and set to be achieved by
2015, the Millennium Development Goals (MDGs) provide concrete,
numerical benchmarks for tackling extreme poverty in its many
dimensions. The MDGs also provide a framework for the entire
international community to work together towards a common end –
making sure that human development reaches everyone, everywhere.
Goals include for example eradicating extreme poverty and hunger,
achieving universal primary education and ensuring environmental
sustainability.
Net debt : group equity ratio
The % distribution of net debt over group equity plus net debt.
Non-Governmental Organization (NGO)
A non-governmental organization (NGO) is any non-profit, voluntary
citizens’ group which is organized at a local, national or international
level.
OEM
Original Equipment Manufacturer.
Operational carbon footprint
A carbon footprint is the total set of greenhouse gas emissions caused
by an organization, event, product or person; usually expressed in
kilotonnes CO2-equivalent. The Philips operational carbon footprint is
calculated on a half-year basis and includes industrial sites
(manufacturing and assembly sites), non-industrial sites (offices,
warehouses, IT centers and R&D facilities), business travel (lease and
rental cars and airplane travel) and logistics (air, sea and road
transport).
Perfluorinated compounds (PFC)
A perfluorinated compound (PFC) is an organofluorine compound with
all hydrogens replaced by fluorine on a carbon chain—but the molecule
also contains at least one different atom or functional group. PFCs have
unique properties to make materials stain, oil, and water resistant, and
are widely used in diverse applications. PFCs persist in the environment
as persistent organic pollutants, but unlike PCBs, they are not known
to degrade by any natural processes due to the strength of the carbon–
fluorine bond.
Polyvinyl chloride (PVC)
Polyvinyl chloride, better known as PVC or vinyl, is an inexpensive
plastic so versatile it has become completely pervasive in modern
society. The list of products made from polyvinyl chloride is exhaustive,
ranging from phonograph records to drainage and potable piping, water
bottles, cling film, credit cards and toys. More uses include window
frames, rain gutters, wall paneling, doors, wallpapers, flooring, garden
furniture, binders and even pens.
Productivity
Philips uses Productivity internally and as mentioned in this annual
report as a non-financial indicator of efficiency that relates the added
value, being income from operations adjusted for certain items such as
restructuring and acquisition-related charges etc. plus salaries and
wages (including pension costs and other social security and similar
charges), depreciation of property, plant and equipment, and
amortization of intangibles, to the average number of employees over
the past 12 months.
Regulation on Hazardous Substances (RoHS)
The RoHS Directive prohibits all new electrical and electronic
equipment placed on the market in the European Economic Area from
containing lead, mercury, cadmium, hexavalent chromium, poly-
brominated biphenyls (PBB) or polybrominated diphenyl ethers
(PBDE), except in certain specific applications, in concentrations
greater than the values decided by the European Commission. These
values have been established as 0.01% by weight per homogeneous
material for cadmium and 0.1% for the other five substances.