Philips generates over one-third of its sales from Green Products, and will continue to drive innovation in this area. The company is a leader in the application of environmental life-cycle assessments. It conducts an “EcoDesign” process on many of its products, which focuses on improving energy efficiency, reducing product weight and packaging, decreasing hazardous materials, and end-of-life recycling. For example, Philips has developed a household halogen light bulb, known as the Edore, which uses 50% less energy than the conventional bulb it was designed to replace. Philips also launched a “Philips Green” label to identify products that perform more than 10% better than competitors or older products in at least one of five categories, including energy efficiency and hazardous substances.
Philips uses its influence to generate environmental improvements beyond its own manufacturing facilities through its Supplier Sustainability Involvement Program, which provides its suppliers with a self-assessment tool and training sessions. Philips has committed to supporting legislation that encourages recycling, particularly in agreement with the European Union’s Waste Electrical and Electronic Equipment Directive. Voluntary recycling programs have been implemented in Brazil, India, and Argentina and the company supports e-waste recycling legislation in China and India. Philips is encouraged to dedicate specific attention to meeting its 2015 goal of increasing the energy efficiency of its products by 50% from 2009 levels.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 12/31/13 and may not reflect current opinions or subsequent events.