International. Philips reported good progress in its sustainability performance with green product sales growing to €11.1 billion in 2014, representing a record 52% of total sales.
In 2014, Philips invested €463 million in Sustainable Innovation and achieved its €2 billion EcoVision programme target one year in advance. Lighting increased its annual investments, being the largest contributor to Sustainable Innovation with 255 million euros, mainly intended to promote the development of LED solutions. In addition, Philips was able to further reduce its operating carbon footprint by 5% compared to 2013.
"Achieving our €2 billion Sustainable Innovation target ahead of time is clear proof of how we foster sustainable business and value creation in the company. We are now improving the lives of 1.9 billion people, demonstrating strong progress towards our EcoVision commitments," said Jim Andrew, Chairman of the Board of Sustainability and Chief Strategy and Innovation Officer at Philips.
The total product portfolio experienced a slight increase in energy efficiency in 2014. For example, in the city of Madrid, Philips will renovate the entire lighting system of the city with 225,000 energy-saving lights, becoming the largest renovation of public lighting in the world to date.
Jim Andrew added: "We see that social and environmental considerations have become a crucial element in customer decisions and we believe that incorporating circular economy principles into our businesses will offer us significant new opportunities to accelerate our innovation and growth."
