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September 7, 2017

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Lighting key to a brighter future

Philips Lighting, a global leader in lighting who sets ambitious target for sustainability through its new five-year sustainability program “Brighter Lives, Better World,” is disrupting the industry over a century as a standalone, listed company.

By changing the way to create and use light, Philips Lighting focuses on improving lives and have a positive impact on the planet. Some bold promises are made that: by 2020, Philips Lighting expects 80 percent of its revenues will be sustainable, and by end of 2016, the figure reached at 78 percent.

At the same time, Philips Lighting delivered 628 million LED lamps by 2016 as part of a commitment to deliver 2 billion LED lamps by 2020, effectively avoiding more than 15,000 kilotons of CO2 being emitted to the atmosphere.

“Cities could make energy savings and CO2 emission reductions of almost two-thirds through the introduction of smart LED street lighting,” John Wang, president of Philips Lighting, overseeing business on China’s mainland, Hong Kong and Taiwan, shared the insight of the company, which has 126 years heritage of lighting.

Not only improving in traffic safety for all road users, city attractiveness and economic strength, connected LED lighting will also make a major contribution to meeting the UN Sustainable Development Goals, a globally-agreed set of targets for moving to a sustainable future by 2030.

“We regard sustainability both as a corporate responsibility and an imperative global action. For us, sustainability is what will fundamentally change our business path,” Wang said.

Through the company’s promise of “Light beyond illumination”, Wang expects people to recognize Philips’ commitment to delivering meaningful innovations, improving people’s lives and more importantly, caring for the future of mankind.

“Globally, the technology revolution of LED lighting can reduce lighting energy use by 53 percent. When combined with the Internet of Things (IOT) to enable connectivity and wireless control, LED can save up to 80 percent energy compared with conventional incandescent lamps,” Wang said.

A closer look at lighting evolution over recent years reveals the rationale behind this logical choice of internet and lighting.

Lighting is a traditional industry, an old business, but lighting products and solutions are not shackled by traditions. Driven by technologies such as the Internet, IOT and mobile connectivity, light has become increasingly efficient and smart, far beyond illumination… One case that makes the company particularly proud is the adoption of its connected office lighting system at the China Academy of Building Research, which has resulted in a 75 percent reduction in energy use for the entire building.

Meanwhile, the technology has disrupted the business mode that shifted from only selling products to offering services combined with products. Philips Lighting has already piloted this model at the Amsterdam Airport Schiphol. While helping the customer save costs, this model can also reduce electricity use by 50 percent and allow Philips to re-use and recycle all fixtures at the end of life. The second dimension is to extract derivative value out of products, for example, by improving people’s lives and facilitating city management through the Internet and IOT technology.

Lighting is indispensable in cities. The essential of lighting makes it an important node for IOT, to make its development sustainable. A city must balance various growing needs such as resources, space and safety, while making it a more livable and comfortable place to live.

This trend promises enormous potential for connected lighting—by 2030, it is expected that there will be close to 70 billion light points worldwide. When a street light is no longer a simple combination of a pole and light fixture but capable of meeting more demands beyond illumination, it may become a smart city management tool to transmit information and data as a strong boost to city efficiency, safety and comfort. Besides the support to sustainable future building, Philips Lighting also set the target for its operation that become 100 percent carbon neutral in operations and power operations with 100 percent renewable electricity.

During the Innovation Day in March 2017, the company disclosed that China market will reach the target by end of 2017. Philips Lighting also decreased the amount of waste materials delivered to landfill by 41 percent in 2016 and continued a sustainability drive across its portfolio — by investing 80 percent of its research & development spend in sustainable innovation.

“We regard sustainability as a corporate responsibility and an imperative global action. For us, sustainability is what will fundamentally change our business path,” Wang said.




 

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