Philips 2015 Annual Report Download - page 40

Group performance 5.3
40 Annual Report 2015
respects, the sustainability performance in accordance
with the reporting criteria. Please refer to section 14.4,
Independent Auditor’s Assurance Report, of this Annual
Report.
The main elements of the EcoVision program are:
• Improving people’s lives
• Green Product sales
• Green Innovation, including Circular Economy
• Green Operations
• Health and Safety
• Supplier Sustainability
In 2015, our fth EcoVision program ended. In this
Environmental performance section an overview is
given of the most important environmental parameters
of the program. Improving people’s lives, Health and
Safety, and Supplier Sustainability are addressed in the
Social performance section. Details of the EcoVision
parameters can be found in the chapter 14,
Sustainability statements, of this Annual Report. We
plan to launch the next 5-year program in the second
quarter of 2016.
5.3.1 Green Innovation
Green Innovation is the Research & Development
spend related to the development of new generations
of Green Products and Green Technologies. We
announced in 2010 our plan to invest a cumulative EUR
2 billion in Green Innovation during the next 5 years. In
2014, Philips already achieved this EUR 2 billion target
a year ahead of schedule. In 2015, we invested some
EUR 495 million in Green Innovation, excluding
Lumileds and Automotive. Lighting continued to be the
largest contributor, mainly as a result of investments in
LED. The impact of Lumileds and Automotive on Green
Innovation is signicant at EUR 93 million in 2015 and
EUR 105 million in 2014.
Philips Group
Green Innovation per sector in millions of EUR
2011 - 2015
85
67
175
36
363
‘11
136
70
209
38
453
‘12
80
75
223
27
405
‘13
90
97
255
21
463
‘14
121 Healthcare
99 Consumer Lifestyle
254 Lighting
21
Group Innovation
495
‘15
Healthcare
Healthcare develops innovative solutions across the
continuum of care in close collaboration with clinicians
and customers, to improve patient outcomes, provide
better value, and help secure access to high-quality
care. Healthcare investments in Green Innovation in
2015 amounted to EUR 121 million, a EUR 31 million
increase compared to 2014. All Philips Green Focal
Areas are taken into account while we aim to reduce
environmental impact over the total lifecycle. Energy
eciency is an area of focus, especially for our large
imaging systems such as MRI. In 2015, we started to add
an energy-ecient CryoCompressor to our MRI
systems. Closing the materials loop is another area,
where our focus on developing upgrading pathways
has enabled extended product life and therefore
reduced materials use and lower cost. Healthcare
actively supports a voluntary industry initiative to
improve the energy eciency of medical imaging
equipment. Moreover, we are actively partnering with
multiple leading care providers to look together for
innovative ways to reduce the environmental impact of
healthcare, for example by maximizing energy-ecient
use of medical equipment and optimizing lifecycle
value.
Consumer Lifestyle
Continuous high R&D investments at Consumer
Lifestyle are also reected in Green Innovation spend,
which amounted to EUR 99 million in 2015, comparable
to EUR 97 million in 2014. The continued green
investments resulted in high Green Product sales in all
Business Groups. The sector continued its work on
improving the energy eciency of its products, closing
the materials loop (e.g. by using recycled materials in
products and packaging) and the voluntary phase-out
of polyvinyl chloride (PVC), brominated ame
retardants (BFR), Bisphenol A (BPA) and phthalates
from, among others, food contact products. In
particular, more than 80% of the shaving, grooming and
oral healthcare products are completely PVC/BFR-
free. Green investments during the course of 2015 in
Personal Health Solutions are expected to result in the
launch of the rst Green Products in this product
segment in early 2016.
Lighting
At Lighting, we strive to make the world healthier and
more sustainable through energy-ecient lighting
systems. With a 2015 investment of EUR 254 million in
Green Innovation (excluding Lumileds and
Automotive), Lighting invested a similar amount as in
2014. Increasing investments in digital lighting solutions
and cloud computing have led to further improvements
in the area of energy eciency. In 2015, Los Angeles
became the rst city in the world to control its street
lighting through an advanced Philips management
system that uses mobile and cloud-based
technologies. Beyond signicant energy eciency
benets, this new Philips CityTouch gives citizens safer
lit streets and reports faults and reduces commissioning
time to minutes. This system also supports the
transition to a more circular economy as the wireless
plug-and-play connector nodes protect a city’s existing
investment by networking streetlights from any vendor.