Philips Corporate Strategy in Response to Climate Change
-
Upload
dana-holman -
Category
Documents
-
view
32 -
download
1
description
Transcript of Philips Corporate Strategy in Response to Climate Change
Dr. Wolfgang Richter
25th October 2007
Philips Corporate Strategy in Response to Climate Change
General Manager Governmental AffairsPhilips GmbH
2Dr. Wolfgang Richter, Philips GmbH
Agenda
1. Sustainability as part of Philips global strategy
3. Energy saving and business opportunities through efficient lighting technologies
2. Marketing / Communication: www.asimpleswitch.com
3Dr. Wolfgang Richter, Philips GmbH
Agenda
1. Sustainability as part of Philips global strategy
3. Energy saving and business opportunities through efficient lighting technologies
2. Marketing / Communication: www.asimpleswitch.com
4Dr. Wolfgang Richter, Philips GmbH
5Dr. Wolfgang Richter, Philips GmbH
6Dr. Wolfgang Richter, Philips GmbH
7Dr. Wolfgang Richter, Philips GmbH
8Dr. Wolfgang Richter, Philips GmbH
AwarenessPolitical, Corporate & Public Awareness
10Dr. Wolfgang Richter, Philips GmbH
Economically viable
Socially responsible Environmentally sound
The role of business in a sustainable world
Advancedmarkets
Emerging markets
Developing markets
Product development/ technology
11Dr. Wolfgang Richter, Philips GmbH
Paradigm changes
12Dr. Wolfgang Richter, Philips GmbH
Sustainability is part of our heritage
Ever since our company was founded, 116 years ago, we have dedicated ourselves to improving the quality of life through meaningful innovation.
Anton and Gerard Philips, 1891
13Dr. Wolfgang Richter, Philips GmbH
14Dr. Wolfgang Richter, Philips GmbH
Philips recognized as sustainable entrepreneur
15Dr. Wolfgang Richter, Philips GmbH
Huge investments in green technologies
Investments of about 400 Mln Euros for R&D of green lighting solutions within last 5 years
Extension of SSL-business
Significant investments in OLED-Technology
Philips is setting the pase in the industry
Wasserreinigung mit UV-Licht
LED für schönereStädte
LED für angenehmereUntersuchungen
16Dr. Wolfgang Richter, Philips GmbH
Green products: creating value
• Green Focal Areas:– Energy consumption– Packaging– Hazardous substances– Weight– Recycling and disposal– Lifetime reliability
• Turnover of Green products EUR 4 billion in 2006
17Dr. Wolfgang Richter, Philips GmbH
Communicating to our customersThe Philips Green Logo
• Consumers will find the Philips green logo on our most environmentally friendly products, enabling them to make the right environmental choice.
• Green logo products have been certified by external auditors that they are more than 10% more efficient than other products on the market within a given product category.
• The Green logo programme enables consumers to make informed decisions about Philips products within the context of their environmental considerations.
18Dr. Wolfgang Richter, Philips GmbH
Activities in „Green“
• Lightmaster
• Eco-Calculator (C02, €)
• Energy-Efficiency-Projects with the cities of Hamburg and Bremen
• Projects with municipalities
• Cooperation with energy suppliers
• Activities as part of the European lighting industry to force phase out of inefficient lighting solutions (incandescent lamps, concentinal gears,
high-pressure mercury lamps…) via European directives (Eco-Design and Energy Service Directive)
• …
19Dr. Wolfgang Richter, Philips GmbH
LightMASTER successfully used by…
20Dr. Wolfgang Richter, Philips GmbH
Projektbeschreibung
• Pitch with luminaires• Inclusions of TL-D Eco lamp• 18,883 integrated Lampen• Each room is recovered in the
LightMASTER‘s strucutre
General Information
• Europe‘s state-of-the-art hospital
• 500 rooms• 676 beds• New building of 2 years• Asklepios Chain: 21,000 beds• 15 operating rooms• 35,000 stationäre und• 40,000 ambulant
cares/treatments
LightMASTER – Best Practice Project:Hospital: Asklepios Clinic Barmbek (Hamburg)
21Dr. Wolfgang Richter, Philips GmbH
Energy Savings / Environmental Aspects
Energy costs kwh CO2 (kg) Car (km) Energy costs kwh CO2 (kg) Car (km)
5 years 1,147,896 €12,754,405 7,652,643 47,829,017 1,040,900 €11,565,560 6,939,336 43,370,852
1 year 229,579 € 2,550,881 1,530,529 9,565,803 208,180 € 2,313,112 1,387,867 8,674,170
1 month 19,132 € 212,573 127,544 797,150 17,348 € 192,759 115,656 722848
Costs % kwh CO2 (kg) Car (km) Trees p.a.
5 years 106,996 € 1,188,844 713,306 4,458,165 35,665
1 year 21,399 € 237,769 142,661 891,633 7,133
1 month 1,783 € 19,814 11,888 74,303 594
Effort for lighting
9.3%
Before renovation After renovation
Savings through more efficient illuminants
23Dr. Wolfgang Richter, Philips GmbH
Outdoor: Street Lighting - a global success
• CosmoPolis globalisation projects today in Anyang City, Seoul, Shang Hai, Singapore, Jakarta, Perth, Melbourne, Panama City, Kiev and Recife
• CosmoPolis European sales spread over 35 OEMs design-inover 75 luminaire families availableover 50 european cities applied CosmoPolisover 50,000 systems currently installed
24Dr. Wolfgang Richter, Philips GmbH
Best Practice Outdoor-Projects around the globe
Milan, Italy Vechta, Germany An-yang city, Korea
South Tyneside, UK Madrid, SpainHolbæk, Denmark
25Dr. Wolfgang Richter, Philips GmbH
Ambisound SoundBar Home Theatre System HTS8100Energy 50% less than closest competitor
Green Flagships: green products in every PD
Cosmopolis, energy efficient street lighting
Achieva 1.5 T R2 MRI system: Smarter products with lower
operating costs
2GB* Flash audio video player SA5125
42” LCD Widescreen FlatTVwith Pixel Plus 2 HD 42PFL7562DEnergy 36% & Packaging 15% less than closest competitor
26Dr. Wolfgang Richter, Philips GmbH
Agenda
1. Sustainability as part of Philips global strategy
3. Energy saving and business opportunities through efficient lighting technologies
2. Marketing / Communication: www.asimpleswitch.com
27Dr. Wolfgang Richter, Philips GmbH
Launch: in July 2007
28Dr. Wolfgang Richter, Philips GmbH
Tracking user participation
I II III IV
Clicked on ad Pledge to switch Register as user Invite friends
I am interested I participate I care as a participant I promote the cause, I am an ambassador
# of clicks-on logo’s-On banners-On video ads-on emailed links
# pledges# switches
# registrations # emails out-total of all email addresses that were left on the site by registered users
0
# of impressions-Logo’s -Banners-Video ads-Received emails
Exposed to ads
I saw / could have seen
535 mioimpressions
800 kclicks
845 kpledges
3,3 mioswitches
16kregistrations
14kinvitations
30Dr. Wolfgang Richter, Philips GmbH
Comparing to other ‘switch’ sites we have attracted more people to pledge/switch
Nr. Of people making these pledges ~ 650.000
31Dr. Wolfgang Richter, Philips GmbH
Live Earth – The Media Event for the Environment
• 7 concerts…at ecologically responsible & politically important venues
• 6 continents… each with its own environmental concerns
• 150+ artists…performing in support of a global call to action
• 60+ films…& PSAs messaging critical environmental issues during the show
• Live Earth’s “SOS” online community…engaged by rich content & interactivity before and after the concerts
• 2 million audience members… across all Live Earth shows will be inspired by the event experience
• 2 billion viewers…mobilized to take action with corporate partners
33Dr. Wolfgang Richter, Philips GmbH
Awareness campaigns:Mr. Al Gore recognizes leading role of Philips
Dr. Wolfgang Richter, Philips GmbH
New legislation:Climate Change is now at the top of political agenda
BRUSSELS EUROPEAN COUNCIL8/9 MARCH 2007 PRESIDENCY CONCLUSIONS
The European Council: invites the Commission to rapidly submit proposals to enable increased energy efficiency requirements on street and office lighting to be adopted by 2008 and on incandescent lamps and other forms of lighting in private households by 2009;
35Dr. Wolfgang Richter, Philips GmbH
Partnerships will change the business models• Utility Funded Schemes (Public Energy Suppliers)• Exploring public & private funding for street lighting
– PFI: Private Finance investment– PPP: Public Private partnership
• Carbon Trading methodology
Partnerships: PPP contract with VINCI – Example: City of Rouen
• 120 000 inhabitants (Area: 450 000 inh.); Normandy Regional Urban Pole
• VINCI’s PPP contract amount: 100 M€ , a large 18-years Design, Build, Finance, Operate & Maintain contract in the area of:
– Public lighting (15 000 public lighting points)– Wireless local lop in the old center– Traffic management equipments
36Dr. Wolfgang Richter, Philips GmbH
PES Business: Two ways to the customer
Cooperation Retailer/PES Public Energy Supplier (PES)distribution partner direct distribution
Domestic Household
38Dr. Wolfgang Richter, Philips GmbH
New Product Concept: MASTER TL-D Eco
• Simplicity Change of lamp
• Result:>10 % energy savings
TL-D ECO
TL-D Super 80 (840/865)
58W 51W
36W 32W
39Dr. Wolfgang Richter, Philips GmbH
TL5 Campaign, WWF partnering
Campaign:
• July - Mid-September
• Throughout Europe
• The NGO WWF as campaign partner:
Philips donates 5Euro-Cent per TL5 lamp sold
The new lighting product: MASTER TL5 Lamp
40Dr. Wolfgang Richter, Philips GmbH
Solid State Lighting business development towards general lighting
Special applications
(traffic lights, backlights, automotive backlight etc.)
Projects
(outdoor, stage, etc.)
Customized general and special lighting
(‘design-in’, e.g. surface/wall washing)
General lighting mass market
(new LED products, ambience, retrofit lamps)
1995 2000 2005 2010
Innovation Philips
41Dr. Wolfgang Richter, Philips GmbH
Agenda
1. Sustainability as part of Philips global strategy & Green Flagship Approach
3. Energy saving and business opportunities through efficient lighting technologies
2. Marketing / Communication: www.asimpleswitch.com
42Dr. Wolfgang Richter, Philips GmbH
How much energy can we save?
Photograph: NASA
43Dr. Wolfgang Richter, Philips GmbH
Power consumption per market segment
Total power use per segment
27%
10%
5%23%
15%
11%
9%Homes
Retail
Hospitality
Office
Industry
Outdoor
Other
source: GLiMF 070118
44Dr. Wolfgang Richter, Philips GmbH
• Electrical drive systems 39 Million t CO2
• Office appliances, in private and
service sector 34 Million t CO2 Lighting 24 Million t CO2
• Consumer electronics 14 Million t CO2
• Heat production 12 Million t CO2
• Domestic appliances 12 Million t CO2
• Commercial heating, ventilation, air condition 8 Million t CO2
Kyoto-Target: radical reduction in CO2-emission
Lighting14%
Others86%
Share of electric powerconsumption in Europe
This target can already be reached by using energy efficient lighting solutions in domestic households within the EU:
Annual savings of 25 Mio t CO2 possible !** Calculations based on:10 Euro-Cent/kWh370g CO2/kWhBy using innovative technologies
Kyoto-target for the EU
45Dr. Wolfgang Richter, Philips GmbH
Saving potentials for Lighting
More than 30 % of all streets in Europe are still equipped with old, inefficient technology from the 1960s - installed over 20 years ago
Saving potential cost savings p.a. energy savings p.a. ecological savings p.a.
3 billion €* 15 power plants à 2 TWh 10 million tons of CO2Street/City
6 billion €* 30 power plants à 2 TWh 20 million tons of CO2Office
10 billion €* 35 power plants à 2 25 million tons of CO2Private Households
More than 75 % of office lighting in Europe is notstate-of-the-art
More than 50 % of lighting is old, inefficient technology
* Calculation based on:10 Euro-Cent/kWh370g CO2/kWhBy using the most innovative technology
46Dr. Wolfgang Richter, Philips GmbH
Calculation based on a CO2-emission of 420 g/kWh
The technologies do already exist
80%
47Dr. Wolfgang Richter, Philips GmbH
• More than 50 % of lighting is old, inefficient technology
• Example street lighting: 3 % switch rate p.a.• Example office lighting: 6 % switch rate p.a.
• => switch takes > 1 Generation!
… but switch rates are too low…• Lacking awareness of economical and ecological potential
• Technical uncertainty
• Shortage in financing
• Contractual commitments
Reason for slow switch over rate
48Dr. Wolfgang Richter, Philips GmbH
We focus on Outdoor, Indoor and Home lighting Potential Energy Savings through Energy Efficient Lighting
Segment ProductRealistic Savings
Ambitious Savings
HID 25% 35%
Office & Industry TL 20% 35%
Homes GLS 50% 70%
40%
SegmentMain
Product
Potential savings in segment *
HID 35%
Indoor: Buildings TL 35%
Homes GLS 70%
Lighting total
Outdoor: Street lighting
Biggest opportunity Professional applications
% of total CO2
emission18%
45%
25%
* Savings takes % of segment that uses old technology into account
49Dr. Wolfgang Richter, Philips GmbH
Outdoor: street lighting
• 56 Mio street-lighting light points in Europe
• 18 Mio still using 1930`s technology– High-Pressure Mercury Lamps (HPL)
• Alternatives available:– High Pressure Sodium– Ceramic Metal Halide (Cosmopolis) 100 lm/W
50 lm/W
50Dr. Wolfgang Richter, Philips GmbH
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
0,10 0,12 0,16 0,2 0,24
Energy Price
Pay
bac
k
Pay back in years; systemrenovation
Pay back in years system +controlled dimming
Pay back in years; lamp&gearonly
Number of lamps 100 Burning hours 4000
• Acceleration of renewal rate at shorter pay back periods• Pay-back times are becoming more attractive with increasing energy prices
Outdoor: street lighting - Pay Back improvementHigh Pressure Mercury 125W vs Cosmo White 60W
51Dr. Wolfgang Richter, Philips GmbH
We take initiatives to increase switch-over ratee.g. street lighting: current changeover rate 3% per year; office lighting 7%.
Acceleration of switch over via:
• Awareness Campaigns (public / private)
• New legislation (e.g energy-certification for buildings)
• Partnerships (public / private / NGO`s / utilities)
• Innovation of product portfolio
Hurdles for target groups• No pressure to switch• Lack of awareness• Investment (initial; renovation)
52Dr. Wolfgang Richter, Philips GmbH
Summary: New, higher quality, lighting technology available
This energy saving technology offers a unique triple win
1. Users / tax payers save costs & have better light quality
2. The environment benefits from lower energy/CO2-emissions
3. European competitiveness is being strengthened
A triple effort needed
1. Accelerate the switch to new energy saving lighting solutions2. More awareness and partnership between stakeholders including
financial institutions3. Implement new legislation
53Dr. Wolfgang Richter, Philips GmbH
Thank you for your attention!Thank you for your attention!
55Dr. Wolfgang Richter, Philips GmbH
Back Up
56Dr. Wolfgang Richter, Philips GmbHPage 5ELC ref.nr. 070531 DIM Strategy
Time Phased Approach Phasing out inefficient
incandescent lamps
2009 2011 2013 2015
Phase 1 – (>100W single coil & long life)
Phase 2 – (75W+)
Phase 3 –(60W+)
Phase 4 –(25W+)
50%
Total sales volume in EU27 1.8 billion inefficient incandescent lamps per annum.
Quantity of lamps in pieces
Years
100%
57Dr. Wolfgang Richter, Philips GmbH
B2B promotion proposalPersonalized email, application area specific leading to a website. Offering chance to win tickets “Make a simple switch and win”
Product depends on target group, e.g. Outdoor customers this could be CosmoPolis
Personalized
58Dr. Wolfgang Richter, Philips GmbH
Venues
59Dr. Wolfgang Richter, Philips GmbH
Venues
COPACABANA BEACH
GIANTS STADIUM
AUSSIE STADIUM
TOKYO DOME
60Dr. Wolfgang Richter, Philips GmbH
Venues
WEMBLEY
PEARL TOWER
61Dr. Wolfgang Richter, Philips GmbH
Venue Capacity
City Venue Capacity
Sydney Aussie Stadium 50,000
Tokyo Tokyo Dome 50,000
Shanghai Pearl Tower 5,000
Johannesburg Marapeng 7,000
Rio de Janeiro Copacabana Beach 1,000,000
London Wembley 60,000
New York City Giants Stadium 52,000