Sustainability aspects of LED products - how resource efficiency drives a triple win value creation Maarten ten Houten, Director Sustainability Philips Lighting Green Week, 17 May 2011 Resource Efficiency & Climate Change Four drivers for action • Rising resource prices • Environmental impact • Security of Resource Supply • Economic Growth Our value proposition Resource Efficient Solutions Philips Lighting, Maarten ten Houten, Green Week, 17 May 2011, Green Week Budapest 2 The Sustainability challenge DOWN 2. Making our Products more energy efficient 3. Closing the material loop UP 1. Bringing care to the lives of people around the world Sustainable Health & Wellbeing UN Human Development Index = life expectancy + education level + purchasing power Source: WWF: Ecological Footprint Atlas 2009 Philips Lighting, Maarten ten Houten, Green Week, 17 May 2011, Green Week Budapest 3 EcoDesign Life Cycle approach Philips Green Focal Areas Benchmarking Philips Lighting, Maarten ten Houten, Green Week, 17 May 2011, Green Week Budapest What are the parameters for Lighting products? Environment - Energy reduction & related CO2-emissions - Hazardous Substances (e.g. mercury and lead) - Lifetime reliability resulting in less waste Social - Better light quality - Safety - Well being, ambiance Economical Lower running costs through - energy efficiency - and less maintenance Philips Lighting, Maarten ten Houten, Green Week, 17 May 2011, Green Week Budapest 5 E27 cap – 120V LCA of EnduraLED - Product characteristics GLS T2 Twister EnduraLED Warm White Technology Incandescent Compact Fluorescent LUXEON rebel LED Master LEDbulb MV (220V) Other commercial Names Wattage [W] 60 14 12 Lumen [lm] 890 800 806 Efficacy [lm/W] 14,8 57,1 67,16 lamp [gram] 24,3 95,0 179,0 box [gram] 14,5 15,8 46,0 Lifetime (50%) [hr] 1 000 8 000 25 000 Mexico PRC PRC Production Philips Lighting, Maarten ten Houten, Green Week, 17 May 2011, Green Week Budapest 6 Comparison basis Number of lamps needed for 25k hr of usage EnduraLED 12W (25k hr) Twister T2 14W (8k hr) Incandescent 60W (1k hr) Philips Lighting, Maarten ten Houten, Green Week, 17 May 2011, Green Week Budapest 7 EnduraLED is best option on environment User phase is the dominant characteristic 60W 12W 14W Philips Lighting, Maarten ten Houten, Green Week, 17 May 2011, Green Week Budapest 8 Example: Energy efficient lighting in Cities Better roads and significant resource savings Efficient luminaires CitySoul, CitySpirit LED, Mini Iridium Up to - 70 % energy HSBC Center Hong Kong Efficient light sources Cosmopolis quality white light systems, Lumileds LEDS Up to - 80 % energy - 52 % energy Efficient controls Starsense 2, telemanagement system, Constant Light Output Up to - 50 % energy Philips Lighting, Maarten ten Houten, Green Week, 17 May 2011, Green Week Budapest The Venetian Macao, China - 85 % energy The Solar lighting “1.3 bn people still use expensive and dangerous kerosene lighting…how can we improve their lives” Philips Lighting, Maarten ten Houten, Green Week, 17 May 2011, Green Week Budapest 10 Carbon footprint of MasterLED is lowest of all lamp types Total 95,6 113,4 121,1 119,9 314,0 596,5 REMARKS: Method: IPCC GWP 100a Reference year = 2009 Philips Lighting, Maarten ten Houten, Green Week, 17 May 2011, Green Week Budapest 11 Carbon Neutral Outdoor luminaires Philips Lighting, Maarten ten Houten, Green Week, 17 May 2011, Green Week Budapest 12 Light & well-being – natural effect of light Morning Increasing light levels signal body clock to begin active cycle. Body responds by making serotonin, adrenalin & cortisol Daytime Level of hormones rises, as well as temperature & metabolism. By mid afternoon, body’s metabolism reached peak Evening Daylight intensity diminishes, body clock signals pineal gland to convert serotonin into melatonin decrease body temperature Philips Lighting, Maarten ten Houten, Green Week, 17 May 2011, Green Week Budapest 13 What is closing the materials loop? a method to come to Zero impact products Product development Zero impact Materials • 100% high level recycling (upcycling) • Bio-based materials Value Chain Business models • Branding/ marketing • materials flow mgmt • money flow mgmt Zero Toxicity • No impact to nature or • Closed loop system Design for X •Value engineering • Design for (Dis)assembly Partnerships Upstream Partnerships downstream • design in zero impact materials • enable Recycling Philips Lighting, Maarten ten Houten, Green Week, 17 May 2011, Green Week Budapest 14 Resource efficient solutions: a triple win Environmental, economical and social benefits • End-users: lower integral costs, user benefits (safety, comfort, wellbeing) • Environment: lower resource usage, lower emissions • Economy: improved product & service competitiveness, innovation, green jobs Philips Lighting, Maarten ten Houten, Green Week, 17 May 2011, Green Week Budapest 15 Philips Lighting, Maarten ten Houten, Green Week, 17 May 2011, Green Week Budapest 16