Green Operations

The Green Operations program focuses on the main contributors to climate change, recycling of waste, reduction of water consumption and reduction of emissions of restricted and hazardous substances. Full details can be found in Sustainability statements.

Carbon footprint and energy efficiency

After achieving our EcoVision4 carbon emissions reduction target in 2012, we continued our energy efficiency improvement programs across different disciplines. In 2014 our carbon footprint decreased by 5% compared to 2013, resulting in a total of 1,375 kilotonnes CO2. This was mainly achieved by emissions reductions in our manufacturing facilities, resulting from operational changes and decreased energy usage due to lower load with an increased share coming from renewable sources (some 55% in 2014), and less transport activities. These reductions were, however, partly offset by increased emissions from our non-industrial activities, the floor space of our global non-industrial property portfolio increased by 2%. Business travel emissions remained stable compared to 2013, however we have noted a decrease in emissions from lease cars due to our successful Green Lease car program, whilst air travel increased over the course of 2014. We continue to promote video conferencing as an alternative to travel.

Our operational energy efficiency increased 2% from 1.17 terajoules per million euro sales in 2013 to 1.14 terajoules per million euro sales in 2014 as a result of energy efficiency programs in our industrial sites.

The impact of the exclusion of Lumileds and Automotive is displayed as discontinued operations in the graph below; the size of which varies over the years, but averages around 10% over the past 5 years. Emissions from discontinued operations in our industrial activities have been identified exactly. Emissions from our non-industrial facilities and business travel have been estimated based on FTE data. For our logistics emissions the part of discontinued operations has been estimated using revenue share as a proxy where applicable.

Philips Group
Operational carbon footprint in kilotonnes CO2-equivalent
2010 - 2014
6492461636981211,877‘106322561196281181,753‘115252161185821601,601‘125502261175582131,664‘13545Logistics227Business travel124Non-industrial operations479Manufacturing168Discontinued operations1,543‘14
Philips Group
Operational carbon footprint by Greenhouse Gas Protocol scopes in kilotonnes CO2-equivalent
2010 - 2014
 
2010
2011
2012
2013
2014
Scope 1
403
378
355
360
320
Scope 2
458
368
345
315
283
Scope 3
895
889
741
776
772
Philips Group
1,756
1,635
1,441
1,451
1,375

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Philips Group
Ratios relating to carbon emissions and energy use
2010 - 2014
 
2010
2011
2012
2013
2014
Operational CO2 emissions in kilotonnes CO2-equivalent
1,756
1,635
1,441
1,451
1,375
Operational CO2 efficiency in tonnes CO2-equivalent per million EUR sales
91
82
65
66
64
Operational energy use in terajoules
28,030
26,570
25,052
25,646
24,464
Operational energy efficiency in terajoules per million euro sales
1.45
1.33
1.13
1.17
1.14

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Water

Total water intake in 2014 was 3.1 million m3, about 6% lower than in 2013. This decrease was mainly due to lower production volumes at multiple Lighting sites as well as a significant reduction at a Consumer Lifestyle site in China which implemented various water savings actions. This was partly offset by one Healthcare site that cooled magnets with water instead of helium. Many Philips sites have water savings programs.

Lighting represents around 66% of total water usage. In this sector, water is used in manufacturing as well as for domestic purpose. The other sectors use water mainly for domestic purposes. The exclusion of Lumileds and Automotive has a significant downward impact on the water consumption of Philips. In 2014, Lumileds and Automotive accounted for 1.7 million m3 of water.

Philips Group
Water intake in thousands of m3
2010 - 2014
 
2010
2011
2012
2013
2014
Healthcare
256
308
421
454
514
Consumer Lifestyle
351
338
303
586
537
Lighting
2,282
2,249
2,413
2,249
2,052
Innovation, Group & Services
7
Continuing operations
2,896
2,895
3,137
3,289
3,103
Discontinued operations
1,322
1,433
1,720
1,755
1,700
Philips Group
4,218
4,328
4,857
5,044
4,803

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In 2014, 72% of water was purchased and 28% was extracted from groundwater wells.

Waste

In 2014, total waste was comparable to 2013 at 75 kilotonnes. Lighting contributed to 72% of total waste, Consumer Lifestyle to 15% and Healthcare to 13%. Waste generated by 8 new reporting sites was offset by 5 discontinued sites. The exclusion of Lumileds and Automotive had a 7% downward impact on total waste. In 2013, an Automotive site in the Netherlands reported 10 kilotonnes of demolition scrap.

Philips Group
Total waste in kilotonnes
2010 - 2014
 
2010
2011
2012
2013
2014
Healthcare
11.2
9.3
10.4
9.6
9.8
Consumer Lifestyle
23.2
19.6
12.7
11.4
11.3
Lighting
61.7
58.1
57.5
54.9
53.9
Innovation, Group & Services
0.1
Continuing operations
96.2
87.0
80.6
75.9
75.0
Discontinued operations
8.4
7.0
7.0
16.1
5.4
Philips Group
104.6
94.0
87.6
92.0
80.4

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Total waste consists of waste that is delivered for landfill, incineration or recycling. Materials delivered for recycling via an external contractor comprised 60 kilotonnes, which equals 80% of total waste, an improvement compared to 79% in 2013, as our manufacturing sites implemented recycling programs. Of the 20% remaining waste, 75% comprised non-hazardous waste and 25% hazardous waste.

Philips Group
Industrial waste delivered for recycling in %
2014
24Paper28Glass19Metal9Wood6Plastic1Demolition scrap6Waste chemicals7Other

Emissions

Emissions of restricted substances totaled 9 kilos in 2014, on par with 2013, as our mercury emissions at Lighting were for the second year in a row as low as reasonably achievable, according to our assessment. The level of emissions of hazardous substances decreased from 35,118 kilos to 28,310 kilos (-19%), driven by a reduction of Xylene emissions at various Consumer Lifestyle sites, due to a decrease in use of specific lacquers and thinners. All sectors have reduction programs for the restricted and hazardous substances.

Philips Group
Restricted and hazardous substances in kilos
2010 - 2014
 
2010
2011
2012
2013
2014
Restricted substances
188
111
55
9
9
Hazardous substances
60,272
63,604
67,530
35,118
28,310

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For more details on restricted and hazardous substances, please refer to Green Operations

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CO2-equivalent or carbon dioxide equivalent is a quantity that describes, for a given mixture and amount of greenhouse gas, the amount of CO2 that would have the same global warming potential (GWP), when measured over a specified timescale (generally 100 years).

SF6 (Sulfur hexafluoride) is used in the electrical industry as a gaseous dielectric medium.