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Annual Report 2010

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Green Manufacturing 2015

In 2010, we decided to group all activities related to improving the environmental performance of our manufacturing facilities (including chemicals management) under the Green Manufacturing 2015 program. The program focuses on most contributors to climate change, but also addresses water, recycling of waste, chemical substances, and will run in parallel with EcoVision4 and 5.

Green Manufacturing 20151)
parameters
 
unit of measurement
2015 reduction target (%)
2010 actual reduction (%)
 
 
 
 
Total CO2 from manufacturing
CO2-equivalent tons
25
8
 
 
 
 
Water
m3
10
 
 
 
 
Materials provided for recycling via external contractor per total waste
%
80
78
 
 
 
 
Restricted substances:
 
 
 
Benzene emission
kg
50
(95)
Mercury emission
kg
100
55
CFCs, HCFCs
kg
100
97
Other restricted substances (excluding CFCs from cooling systems)
kg
90
13
 
 
 
 
Hazardous substances:
 
 
 
Lead emission
kg
100
94
PFCs
kg
35
2
Toluene emission
kg
90
(199)
Xylene emission
kg
90
(578)
Styrene
kg
90
72
Antimony, Arsenic and their compounds
kg
100
(33)
1) Total reduction targets in absolute terms against the base year 2007

Energy use in manufacturing

Total energy usage in manufacturing amounted to 14,232 terajoules in 2010. Compared with 2009, energy consumption at Philips Group level remained even. This was driven by production volume increases in Lighting, representing about 80% of the Philips energy usage, mitigated by energy efficiency improvement measures and by the changing industrial footprint. Energy consumption at Consumer Lifestyle increased 7%, mainly as a result of the inclusion of a new acquisition.

Total energy consumption in manufacturing
in terajoules
 
2007
2008
2009
2010
 
 
 
 
 
Healthcare
1,602
1,612
1,669
1,537
Consumer Lifestyle
1,451
1,521
1,186
1,272
Lighting
12,119
11,435
11,411
11,396
Group Management & Services
35
34
28
27
Philips Group
15,207
14,602
14,294
14,232

Carbon emissions in manufacturing

Greenhouse gas emissions of our manufacturing operations totaled 668 kilotons CO2-equivalent in 2010, 18% lower than 2009. Direct CO2 emissions related to energy use increased slightly mainly as a result of higher volumes of natural gas based production at Lighting, while indirect CO2 emissions decreased 29% as we increased the share of electricity generated by renewable sources.

Total carbon emissions in manufacturing
in kilotons CO2-equivalent
 
2007
2008
2009
2010
 
 
 
 
 
Direct CO21)
324
304
287
290
Indirect CO2
470
430
451
320
Other greenhouse gases
41
61
54
33
From glass production
29
28
24
25
Total
864
823
816
668
1) From energy

CO2 emissions decreased at all sectors due to energy efficiency improvements and an increased share of electricity generated by renewable sources. Healthcare achieved additional reductions in CO2 emissions due to changes in the industrial footprint.

Total carbon emissions in manufacturing per sector
in kilotons CO2-equivalent
 
2007
2008
2009
2010
 
 
 
 
 
Healthcare
118
120
122
64
Consumer Lifestyle
65
65
50
44
Lighting
679
636
643
559
Group Management & Services
2
2
1
1
Philips Group
864
823
816
668

Water usage in manufacturing

In Lighting (representing about 85% of total water usage), water is used in manufacturing as well as for domestic purpose. The other sectors mainly use water for domestic purposes. Total water intake in 2010 was 4.2 million m3, on par with 2009. Within the sectors there is a decrease in water usage in Healthcare, and an increase in Consumer Lifestyle due to changes in the industrial footprint.

Water intake
in thousands m3
 
2007
2008
2009
2010
 
 
 
 
 
Healthcare
369
370
363
254
Consumer Lifestyle
485
452
315
351
Lighting
3,350
3,168
3,531
3,604
Group Management & Services
5
6
7
8
Philips Group
4,209
3,996
4,216
4,217

In 2010, 73% of water was purchased and 27% was extracted from groundwater wells.

Waste in manufacturing

Total waste increased 7% to 105 kilotons in 2010 from 98 kilotons in 2009. Lighting (67%) and Consumer Lifestyle (22%) account for 89% of our total waste. The increase was mainly caused by Lighting as a result of higher volumes and reorganizations at glass production sites, coupled with a new acquisition in Consumer Lifestyle.

Total waste
in kilotons
 
2007
2008
2009
2010
 
 
 
 
 
Healthcare
7.9
8.2
8.2
11.2
Consumer Lifestyle
40.4
28.0
20.1
23.2
Lighting
79.2
77.3
69.3
70.0
Group Management & Services
0.1
0.1
0.1
0.1
Philips Group
127.6
113.6
97.7
104.5

Total waste consists of waste that is delivered for landfill, incineration or recycling. Materials delivered for recycling via an external contractor comprised 81 kilotons, which equaled 78% of total waste. The remaining waste consisted of 16% non-hazardous and 6% hazardous waste.

Restricted substances

Emissions of restricted substances totaled 1,036 kilos in 2010, an increase of 62% versus 2009. With the Green Manufacturing 2015 program we continue to focus on a selection of the most important substances in our processes.

Restricted substances
in kilos
 
2007
2008
2009
2010
 
 
 
 
 
Benzene and Benzene compounds
52
1
136
101
Mercury and Mercury Compounds
185
211
122
83
CFCs/HCFCs1)
157
213
14
5
Other restricted substances
973
673
366
847
Total
1,367
1,098
638
1,036
1) excluding cooling systems

Benzene

Lighting is the only sector that uses benzene in manufacturing. The decrease in 2010 was caused by portfolio changes at one of the sites.

Mercury

Mercury is used exclusively by Lighting. Emissions decreased significantly from 122 kg in 2009 to 83 kg in 2010, due to process improvements, reduction of mercury intense production along with changes in the industrial footprint.

CFCs/HCFCs

In 2010 total emissions from CFCs/HCFCs reduced to 5 kg from 14 kg due to organizational changes at a Healthcare site.

Other restricted substances

Emissions of other restricted substances totaled 847 kg in 2010, steeply increasing from 366 kg the previous year. This increase is due to a new acquisition in Consumer Lifestyle, mitigated by process improvements and organizational changes at Healthcare.

Hazardous substances

For hazardous substances targets have been set on a selected number of substances.

Hazardous substances
in kilos
 
2007
2008
2009
2010
 
 
 
 
 
Lead and lead compounds
1,838
684
1,958
108
PFCs (Per Fluorinated Compounds)
1,534
1,858
2,535
1,507
Toluene
2,210
2,524
2,160
6,603
Xylene
4,506
3,684
4,619
30,534
Styrene
80,526
37,454
21,567
22,920
Antimony, Arsenic and their compounds
18
16
30
24
Other hazardous substances
175
96
775
6,404
Total
90,807
46,316
33,644
68,100

Lead and lead compounds

The decrease in 2010 was mainly related to the termination of a glass furnace operation and organizational changes in Lighting.

PFCs

The decrease in 2010 related to a deconsolidated site which applied PFCs in Healthcare, partially offset by higher production volumes at one Lighting site.

Toluene

The emission of toluene, mainly used in wet lacquers, increased largely as a result of a new acquisition in Consumer Lifestyle.

Xylene

The increase was attributable to a wet lacquering process mainly applied by a new acquisition in Consumer Lifestyle.

Styrene

The emission of styrene mainly increased due to organizational and production portfolio changes at two Lighting sites.

Antimony, Arsenic and their compounds

Less demand for glass production at a Lighting site resulted in less antimony emission overall in 2010 versus 2009.

Other hazardous substances

The emissions of other hazardous substances amounted to 6,404 kg in 2010, compared to 775 kg in 2009. This increase was mainly caused by a new acquisition in Consumer Lifestyle. 

ISO 14001 certification

In 2010, 95% of reporting manufacturing sites were certified. This 3% increase compared to the previous year can be attributed to organizational changes and to new acquisitions being certified for the first time this year.

ISO 14001 certification
as a % of all reporting organizations
 
2007
2008
2009
2010
 
 
 
 
 
Philips Group
90
95
92
95

Environmental Incidents

In 2010, twelve incidents were reported by Consumer Lifestyle and Lighting in the following categories. They were related to waste (two), water (two), restricted substances (two), hazardous substances (one), relevant substances (two), soil (one) and fire (two).

A fine of EUR 400 was reported in our EcoVision system in connection with one of the incidents.

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This is an interactive electronic version of the Philips Annual Report 2010 and also contains certain information in summarized form. The contents of this version are qualified in their entirety by reference to the printed version of the full Philips Annual Report 2010. This printed version is available as a PDF file on this website. Information about: forward-looking statements, third-party market share data, fair value information, IFRS basis of presentation, use of non-GAAP information, statutory financial statements and management report, reclassifications and analysis of 2009 compared to 2008.