In terms of the environment, sustainability is often defined as “meeting the needs of the current generation without compromising the ability of future generations to meet their needs.” We do not view this as simply being a good corporate citizen. Rather, we believe that sustainability is sound business and when effectively integrated into our fundamental strategies, it delivers a solid bottom line.

In practice, Philips Lighting North America addresses sustainability through the products we make and the way we make them. Philips Lighting North America is committed to sustainable lighting—lighting that meets users’ needs with the least consumption of energy and other resources. Energy comes first because it represents lighting’s biggest impact on the environment as well as the highest cost to lighting users.

Philips Lighting North America has long been a leader in the development of energy-efficient lighting and controls, from high performance fixtures, to smart controls, to the integration of electronics. New fixtures introduced by several different Philips Lighting North America brands achieve more than 90% efficiency in emitting the light output from the lamps they house.

New occupancy sensing switches and dimmers incorporate “smart” technology that adjusts the sensor’s operation to actual occupancy patterns. Our iGEN line of intelligent lighting incorporates occupancy and daylight sensors along with “addressable” controls that adjust lighting individually or in local areas.

Importantly, these products are also aesthetically pleasing and cost effective. Using its multiple-brand strategy, Philips Lighting North America is aggressively educating the market on the benefits of sustainable lighting and promoting our products in multiple channels.

Energy-efficient lighting not only enables specifiers of new projects to meet ever more stringent energy codes, it also helps owners of existing buildings to upgrade their lighting for better human, energy, and financial performance. And, it assists projects in meeting LEED® (Leadership in Energy and Environment) criteria. LEED, developed by the

non-profit U.S. Green Building Council, is recognized as the standard for sustainable construction. Attaining LEED certification for new and existing buildings has become increasingly important to corporations, institutions, and governments—and to their architects.

Philips Lighting North America also addresses sustainability in its own facilities. In addition to energy conservation measures and continuous improvement in product design and material content, we have made significant progress in improving manufacturing processes across the company. For example, at our Fall River, MA facility recent achievements include an 82% reduction in volatile air emissions, a 30% decrease in the use of toxic chemicals, and a 58% decline in toxic chemical bi-products.

We believe that the demand for sustainability will continue to grow and that Philips Lighting North America will continue to lead in this vital area.