Royal Philips Electronics recently reported that sales of “Green Products” increased to almost 25 percent of its total sales in 2008, compared with 20 percent in 2007. This statistic also coincides with a greater company initiative known EcoVision4, in which a main goal is to increase the sales of these products to 30 percent by 2012.
According to Philips, “Green Products need to have a significantly better score (at least 10 percent) in one or more of [the company's] Green Focal Areas, compared to a competitor or predecessor product. The Green Focal Areas are: Energy efficiency, Packaging, Hazardous substances, Weight, Recycling and disposal, Lifetime reliability. In addition, 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.” Products like these include everything from flat TVs to vacuum cleaners.
“Sustainability is a powerful platform for innovation and growth and we are committed to continuously invest and explore future possibilities to improve the health and well-being of our planet and its people,” said Rudy Provoost, member of Philips’ Board of Management, chair of Philips’ Sustainability Board and CEO of Philips Lighting.
To further strengthen its EcoVision movement, Philips is also increasing its recycling initiatives, “based on the principle of individual producer responsibility.” In India, Brazil and Argentina, “Philips will set up cost-effective voluntary collection and recycling systems, working with partners to develop a level-playing field on the principle of integrating environmental costs into product price,” according to the company.
“These initiatives illustrate a strong commitment to product stewardship, going beyond integrating sustainability into all our business processes and contributing to Philips’ sustainability business drive by offering cost reduction opportunities whilst safeguarding the planet,” said Provoost.
Other Ecovision4 targets include:
Increase operational energy efficiency by 25 percent with a focus on reducing CO2 emissions.
Double Green Innovations investment to EUR 1 billion with a focus on chemical reduction in products and increasing recyclability and collection; in 2008, Philips invested EUR 282 million in “Green Innovation.”
Additionally, Philips also released 91 new Green Products on the market in 2008, a 72 percent increase over 2007.