Philips 2013 Annual Report Download - page 247

17 Definitions and abbreviations 17 - 17
Annual Report 2013 247
Green Products
Green Products oer 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
dierent 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 dierent 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 dierent 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.
Return on equity (ROE)
Income from continuing operations as a % of average shareholders’ equity
(calculated on the quarterly balance sheet positions).