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Philips Proposes Call to Action on Climate Change

Press Information

December 7, 2007

Philips Proposes Call to Action on Climate Change at Bali

The company’s climate change expert outlines a set of policy initiatives to accelerate the switch to greater energy efficiency

Bali – Royal Philips Electronics (NYSE:PHG, AEX:PHI) announced today a call to action on climate change at the United Nations Framework Convention on Climate Change (UNFCCC) that outlines specific steps industry and government can adopt to reduce CO2 emissions while maintaining economic growth.

As the world leader in lighting, Philips is actively reaching out to developed and developing countries in the Asia Pacific region to embrace energy efficient lighting solutions and accelerate the replacement of outdated polluting technologies.

New energy efficient lighting solutions are available today, however, the market adoption rates are extremely slow considering the severity of the current climate change crisis.

On the sidelines of the UNFCCC, Harry Verhaar, Senior Director, Energy & Climate Change of Philips Lighting said: “Realizing the sense of urgency in creating a framework at Bali that will move us all towards low carbon economies, we hope governments will take steps towards introducing concrete environmental performance targets for buildings and roads and labeling schemes for products, as well as offering financial incentives that overcome initial investment hurdles, and finally stimulate further green procurement in energy efficient lighting for public buildings, schools and roads.”

In the week following his presentation to the UNFCCC in Bali today, Mr Verhaar will be visiting New Zealand and Australia to meet with government representatives and lighting groups to encourage accelerating the switch to energy efficient lighting.
The International Energy Agency has calculated that worldwide electrical lighting uses 19 per cent of all electricity produced and consequently any changes to address energy efficiency in lighting would significantly reduce energy consumption around the world.
New research data released by Philips earlier this year showed that the potential energy savings from energy efficient lighting is actually around 40 per cent, double the previously acknowledged figure.
“To put this in perspective, these energy savings on all the lighting currently installed globally would save more than €100 billion in energy costs. This equates to over 550 million tones of CO2, or 1.5 billion barrels of oil per year,” says Meech Aspden, CEO for Philips New Zealand.
“Given that we can realistically save 40 per cent of all energy used to light up our cities, homes and workplaces with technology available today, the opportunity to respond to this Call to Action is in the hands of each of the delegates and heads of state attending the UN Climate Change Conference in Bali,” says Ms Aspden.
Yet creating a roadmap to a post Kyoto framework requires more than government action, it also dictates that businesses respond as well to these global challenges.

By 2012, Philips aims to increase the energy efficiency of its operations by 25% and double its investment in green innovations to EUR 1 billion. These targets mean that by the end of 2008 all the company’s offices will be outfitted with energy efficient lighting systems and that further reductions in greenhouse-gas emissions will be realized in production and distribution.

“Embracing an energy efficient policy framework for lighting solutions provides more than economic benefits; it also has an immediate impact on environmental conservation – if new lighting technologies were adopted with a realistic cut of 40% throughout the world, it’s equivalent to the output of 500 medium sized power stations, and in carbon capture terms, it would be like covering the whole Gobi desert with forest,” says Mr Verhaar.

“Additionally, the reallocation of R&D capabilities towards environmentally friendly lighting solutions can stimulate a great leap forward for developing countries along the green innovation value chain.”

Philips has long led the industry in introducing cleaner, greener technologies and is committed to dramatically reducing carbon emissions caused by the world’s lighting needs. The company invented the energy-efficient compact fluorescent light bulb back in 1980; and in New Zealand this year launched a promotion to stimulate home energy lighting, with the Philips Tornado, part of its Green Product portfolio.

Beyond today’s Call to Action, Philips has launched the campaign www.asimpleswitch.com which communicates to the public at large that solutions in energy management can be simple and easy to implement. Visitors to the website have pledged to switch over 3.3 million incandescent light bulbs to energy saving alternatives since the campaign started in early July this year.

ENDS

About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lighting and consumer lifestyle, delivering products, services and solutions through the brand promise of "sense and simplicity". Headquartered in the Netherlands, Philips employs approximately 128,100 employees in more than 60 countries worldwide. With sales of EUR 27 billion in 2006, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances, as well as consumer electronics. News from Philips is located at www.philips.com/newscenter.
Forward-looking statements
This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

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