Latin-American Sustainability

Eradicate extreme poverty and hunger Achieve universal primary education Promote gender equality and empower women Reduce child mortality Improve maternal health Combat HIV/AIDS, malaria and other diseases Ensure environmental sustainability Develop a global partnership for development

The Energy Challenge

Lighting represents 19% of all global electricity consumed.

Due to the deep consequences of climate changes, UNEP (UN Environmental Program) classified this as one of the most critical challenges of our time. The organization demands a twofold strategy: reducing the emissions of greenhouse gases while realistically evaluating the impacts that are already present.

The World Banks has also given its alert. It estimates that the climate changes induced by human beings will cause the reduction in the agricultural activity and in the quality of water, besides the increase in the incidence of diseases, which includes from malaria to dengue. Even worse, the bank predicts the possibility of thousands of people being displaced from low lands, from Beijing to Boston, due to the rising of the sea level.

Actually, considerations about climate changes - including efforts to promote clean energy alternatives - have already been incorporated to all development operations of the World Bank. Governmental and non-governmental agencies by themselves do not solve the problem. Philips is aware of its responsibility to help stabilizing or even reverting the changes to the global climate.

Philips acknowledges that energy efficiency is one of the main answers to supply the increasing demand and takes a serious commitment to develop, promote and place in the market solutions for that purpose. It does not accept, as well, the common sense that increasing efficiency is unfeasible, due to the costs of new technologies and the adjustments that need to be made to the products that are more popular.

We believe that future generations need to inherit a better planet. At Philips, we answer the challenge of energy efficiency with our green products and inspiring individuals to make simple changes that may have deep results. We try to stimulate the development of new solutions, with the purpose of encouraging responsible practices.

Although, at global level, Philips has stimulated concrete actions between the lighting industry and governments to speed up the replacement for more efficient solutions, committing itself with these actions, the company respects the dynamics of each market where it operates and understands that any action that causes impacting changes must be collective, involving the industry as a whole, besides governments and the civil society.

Therefore, in Latin-America, Philips performs campaigns and events to draw the attention to the subject, working to make people aware that there may be significant saving of energy, costs and emission of CO2 with the replacement with lighting solutions that are already available and with newer technologies. Energy saving may contribute, in Brazil, for instance, to the reduction in the need for construction of new hydroelectric plants, thus, reducing the environmental impact and preserving natural sources such as the fauna, flora and biodiversity.

Philips, as a global leader in lighting, believes that the act of consuming energy is a valuable opportunity to make people aware of how it is important to save this resource. Lighting represents 19% of all global electricity consumed. Innovative solutions may bring savings of as much as 40% of energy in the current installed base, which would mean annual savings of 106 billion Euros - equivalent to 555 million tons of CO2 or 1.5 million petroleum barrels per year.

We estimate that, for the climate variations to be stabilized, a 25% reduction in the current emissions of greenhouse gases will be required. The energy efficiency is an important tool to reach this goal. Philips has changed a lot, along its 117 years of existence, but in terms of sustainability we remain loyal to our origins: our company has been the first one to manufacture power-saving lamps, in 1980. Since 1994, we have been guided by the objectives of the EcoVision Environmental Program.

If Latin America reduces its energy consumption by 20%, this will be 4 billion Euros less per year. Not only that: using less energy also helps reducing the emissions of CO2, the main greenhouse effect gas. For all this, our focus could not be different. Our area of Research & Development works restlessly to seek solutions that are efficient as regards energy and that improve the people’s quality of life.

The officers of Philips are already convinced that a “green” approach to business is essential not only in terms of the environment, but, ultimately, will also show to be a cost effective choice. In summary, the Company has never believed in the myth that the environment and economic growth are mutually excluding items.


Scientists estimate that a cut from 60% to 80% in the emissions of greenhouse gases is necessary to stabilize the atmosphere.



Current global savings potential

• Lighting responds for 19% of the use of electricity
• From 50 to 100 billion Euros are spent in electricity per year
(20% of savings in Europe at 10ct/KWh*)
• From 300 to 600 million tons of CO2 are emitted every year
• From 800 to 1,600 million petroleum barrels are used every year
• Annual production from 250 to 500 power plants at 2TWh**/year

* KWh: Kilowatt-hour
** TWh: Terawatt/hour

International Energy Agency (IEA) ; World Resource Institute (WRI).


Environment Undertake initiatives to promote greater environmental responsibility Suport a precautionary aproach to environmental changes