Environmental indicators
EcoVision4: Green Product salesSales from Green Products increased in 2009 to EUR 7.1 billion, contributing significantly to the total revenue stream. As a percentage of the company total sales, Green Product sales rose substantially to 30.6%, up from 22.6% in 2008, exceeding our EcoVision4 target for 2012. As a result we have increased our target to 50% in 2015.
All sectors contributed to the growth in Green Product sales. Consumer Lifestyle achieved the highest Green Product nominal sales growth (30%), followed by Healthcare (17%) and Lighting (14%). Consumer Lifestyle introduced 81 Green Products in 2009, Healthcare 15 and Lighting over 700. Major acquisitions, like Respironics, Consumer Luminaires and Genlyte, have been included for the first time, causing the decrease in Green Product sales in 2008 in Healthcare and Lighting. Prior to joining Philips these acquisitions did not have a process in place to develop new products with significantly improved environmental performance and it takes time to bring new products through the pipeline.
Overall, improvements are predominantly realized in our energy efficiency Green Focal Area. New Green Products from each sector include the following examples. HealthcareThe new MammoDiagnost DR simplifies the image acquisition. The workflow is fast, easy to handle and intuitive. The digital image processing supports the detection of lesions especially in dense breasts. Time consuming handling of film cassettes is no longer required. The digital system follows the Digital Imaging and Communications in Medicine (DICOM) and Integrating the Healthcare Enterprise (IHE) standards and can be integrated into the electronic workflow of the hospital. That means that patient registration and diagnosis can be done without paper work. Compared to its predecessor, this Green Product’s environmental benefits include a 46% reduction in energy use, 13% less product weight, 11% less packaging weight and an improvement of the environmental impact of the total life cycle of 24%. In addition the X-ray dose is reduced by 20%. Consumer LifestyleThe Philips EcoDesign process aims to create products that have significantly less impact on the environment. Our Consumer Lifestyle sector has long focused on energy management, for example, drastically driving down standby power in TVs over the past 10 years. We are proud that 90% of our TV portfolio has been awarded the EU Ecolabel after verification that the products meet the EU’s high environmental and performance standards. The televisions carry the label’s flower logo in recognition of their low energy consumption in both standby and on mode, the elimination of hazardous substances and the fact that they have been designed for easy recycling. LightingThe new Novallure LED candle combines the advantages of LED technology, particularly lower energy usage and longer lifetime, with stylish design. It can save up to 80% over incandescent lamps while providing similar light quality. What makes the Novallure candle so special is the fusion of LED technology and its candle shape design, giving it that classic look. It is ideal to be retrofitted in chandeliers and similar light fixtures, where the Novallure candle will enhance the atmosphere by producing a bright sparkling and ambient light effect. The Philips LED candle, from the Novallure series, has been recognized by the Hong Kong Designers Association with the silver HKDA Asia Design Award 09. EcoVision4: Green InnovationsIn 2009 Philips invested more than EUR 400 million in Green Innovations – the R&D spend related to the development of new generations of Green Products and Green Technologies. HealthcarePhilips Healthcare invested some EUR 50 million, concentrating on innovation projects that 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 dose. Consumer LifestyleIn 2009 the Consumer Lifestyle sector invested about EUR 130 million in Green Innovations, a significant increase compared with EUR 36 million invested in 2008. The sector is dedicated to developing new Green Products with a sharp focus on further enhancing energy efficiency and closing material loops, for example by using recycled materials or offering better recyclability. As a result of these Green Innovations, Green Products sales further increased and contributed to about 23% of Consumer Lifestyle’s sales. LightingThe Lighting sector accounts for almost half of the total spend on Green Innovations, with an investment of some EUR 185 million. In September 2009, Philips was the first to enter the US Department of Energy’s L-Prize competition, which seeks an LED alternative to the common 60-watt incandescent light bulb. Our innovation ranked 3rd in TIME Magazine’s list of 50 best inventions of 2009 and shows our commitment to the LED lighting revolution. Our focus continues to be on developing new energy-efficient lighting solutions, further enhancing current Green Products and realizing technological breakthroughs in the area of solid-state lighting. ResearchWithin Corporate Technologies, Philips Research invested about EUR 44 million, spread over Green Innovation projects focused on global challenges related to water, air, waste and energy. One example in energy efficiency is a patented technology in the Philips Starsense telemanagement system. The Dutch Department of Public Works wanted to deploy dynamic lighting in renewed stretches of highway. Dimming light can reduce power consumption, without putting safety at risk. Their new, permanent lighting can now be dimmed thanks to the Philips Starsense telemanagement system. Tests have shown that 100% light during rush hour and 20% during low traffic is sufficient for optimum safety in combination with reduced energy consumption and it is easy on the eyes. EcoVision4: Operational energy efficiency and carbon footprintDuring 2009 we continued to improve our data collection and analysis process, further increasing data accuracy and relying less on estimates. Moreover, to maintain comparability, we recalculated several figures from 2007 and 2008 based on new insights. For instance, we increased the number of non-industrial sites for which we collected actual data, thereby reducing the estimated number. Additionally, data accuracy of CO2 emissions of logistics – sea, road and air freight – has been greatly improved, which also further decreases the amount of estimates. Our operational carbon footprint decreased 10% in 2009.
Our total operational carbon footprint can also be expressed according to the three scopes of the Greenhouse Gas Protocol.
Operational energy efficiency and carbon footprint: 2009 detailsThe 2009 results can be attributed to several factors:
For comparison, the most relevant ratios for CO2 emissions and energy efficiency are provided below. We reduced energy consumption and CO2 emissions by 10%. Nevertheless, our energy efficiency – expressed in terajoules per million EUR sales – increased 2%, because of the economic downturn and related sales reduction. Total energy consumption generally decreases less than production volumes because of base load energy requirements. Therefore, as sales pick up, we expect to continue to improve our energy efficiency.
EcoVision III manufacturing targetsOur EcoVision III environmental action program began in 2006 and officially ended in 2009. Focused on reducing the impact of our production processes, EcoVision III set reduction targets for all major environmental parameters in manufacturing compared to the base year 2005. EcoVision III covers the contributors to climate change (energy, PFCs and other greenhouse gases), water, waste and a selection of the most relevant restricted and hazardous substances. We exceeded our Global Warming Potential reductions, as well as the water and waste targets. For restricted substances, we reduced the total amount by 88% compared with 2005, but did not meet the targets for some substances. For hazardous substances, the total amount decreased significantly. Progress against our EcoVision III targets is detailed below.
EcoVision III: Energy use in manufacturingTotal energy usage amounted to 14,190 terajoules in 2009. Compared with 2008, energy consumption at Philips Group level decreased 3%. Further rationalization of production at Lighting mitigated by newly reporting sites resulted in a 1% decrease in this sector, which represents 80% of the total Group. Energy consumption at Consumer Lifestyle decreased 22% as a result of reduced volumes, relocation of activities and energy savings initiatives.
EcoVision III: CO2 emissions in manufacturing
The greenhouse gas emissions of our manufacturing operations totaled 814 kilotons CO2-equivalent in 2009, 1% lower than 2008. Direct CO2 emissions related to energy use decreased mainly as a result of reduced volumes, while indirect CO2 emissions increased as a result of acquisitions. The use of purchased electricity from renewable sources decreased slightly to 15% as a result of acquisitions and reduced consumption at sites with renewable electricity. Consumer Lifestyle achieved a 23% reduction in CO2 emissions, whereas the other sectors remained stable.
EcoVision III: Water usage in manufacturingWater is used primarily for domestic purposes, with the exception of Lighting where it is also used in manufacturing, representing about 84% of total water usage. Total water intake in 2009 was 4.2 million m3, 6% higher than in 2008. This increase was primarily in Lighting as a result of acquisitions.
In 2009, 74% of water was purchased and 26% was extracted from groundwater wells. EcoVision III: Waste in manufacturingTotal waste decreased 14%, to 98 kilotons in 2009 from 114 kilotons in 2008. Lighting (71%) and Consumer Lifestyle (21%) account for 92% of our worldwide total waste. The decrease was mainly realized by Lighting as a result of lower volumes and increased internal recycling, and by lower production in Consumer Lifestyle.
Total waste is made up of actual waste that is delivered for either landfill or incineration, consisting of 18% non-hazardous and 5% hazardous waste, and recyclable waste. Materials delivered for recycling via an external contractor comprised 75 kilotons, which equals 77% of total waste. EcoVision III: Restricted substancesEmissions of restricted substances totaled 638 kilos in 2009, a steep decrease of 42% versus 2008. With EcoVision III we are focusing on a selection of the most important substances in our processes.
BenzeneLighting is the only sector that uses benzene in manufacturing. The increase in 2009 was caused by acquisitions. MercuryMercury is used exclusively by Lighting. Emissions decreased significantly from 211 kg in 2008 to 122 kg in 2009, due to a production relocation, reduced volumes along with a product mix change. CFCs/HCFCsIn 2009 total emissions from CFCs/HCFCs fell to 14 kg from 213 kg due to the phase-out of certain restricted substances and a change in the production mix at a Healthcare site. Other restricted substancesEmissions of other restricted substances totaled 366 kg in 2009, strongly decreasing from 673 kg the previous year. This decrease relates particularly to the phasing out of certain substances at Healthcare, partially off-set by Lighting acquisitions. EcoVision III: Hazardous substancesFor hazardous substances targets have been set on a selected number of substances and not for the total, as listed in the table.
Lead and lead compoundsThe decrease in 2009 is related mainly to the introduction of a lead-free solder process in one of the Lighting factories outside Europe. PFCsThe increase in 2009 is related to Lighting acquisitions, partially off-set by lower production volumes at one Healthcare site. TolueneThe use of toluene, mainly used in wet lacquers, remained stable in 2009. XyleneThe increase is attributable to a changed product mix in Lighting. Other hazardous substancesThe use of styrene decreased significantly due to lower volumes in Lighting. ISO 14001 certificationIn 2009, 92% of reporting manufacturing sites was certified. This 3% decrease from the previous year can be attributed to new acquisitions.
IncidentsIn 2009, nine incidents were reported by Healthcare, Consumer Lifestyle and Lighting in the following five categories. They were related to water (two), restricted substances (two), hazardous substances (one), soil (one) and fire (three). No fines were reported by our industrial sites in our EcoVision system.
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