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Day 1 - IFA International

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SWITCH ON START SAVING Philips Energy Efficient products. Saving households over €100 a year. * Visit the Philips stand at IFA in Hall 22. Philips Energy Efficient products demonstrate our commitment to EcoVision5, and our aim for green goods to make up 50% of all sales by 2015. EcoVision5 is a program we’ve developed around the three pillars of ‘energy efficiency’, ‘recycling’ and ‘bringing care to people’. Contributing to the world and people’s lives through meaningful innovation. *To save over €100 you would have to buy the following: GC3640 iron, FC9302 vacuum cleaner, 42PFL6805H TV, HTS9520 Home Theatre, (based on comparison with previous Philips model) and replace your incandescent light bulbs with Philips LED ones (My Ambiance A60 E27 470lm) (based on average house size thus saving 70% of average consumption) savings based on average electricity costs for Germany

Hans-Joachim Kamp n Vice President of ZVEI Nestor Coronado Palma n Director of Sustainability Philips Consumer Lifestyle Green Products @ IFA N°03 / September 2010 - March 2011 Extract from the new issue of Sustainable Development Initiatives (SDI) SMARTreport SMART REPORT SuStainable Devel pment initiativeS special edition Who to Believe? Understanding What Makes a Product Green… The ReTaileR's ResponsibiliTes Dr Utho Creusen, Director - DSGi INDUSTRY SPOTLIGHT Xxxxxx x xx Jooree Cho Project Manager Sustainable Development Cleverdis / IFA International Virtually all CE companies are talking about “going green” today, but there are very major differences between their actual strategies in this respect. We asked Hans-Joachim Kamp, chairman of the board of ZVEI how consumers today can “find their way” between the “greenwashers” and those who are making true, concerted efforts in this domain… ‘ G r e e n w a s h i n g ’ i s a dangerous phenomenon. If consumers no longer know who or what to believe, they are reluctant to exercise the power of their green purchasing. This could damage those companies, who are seriously moving towards sustainability. Green messages need to be transparent, credible and verifiable. Nowadays, many companies present their sustainability Hans-Joachim Kamp, Chairman of the board of ZVEI initiatives and policies in their CSR/Sustainability Reports. These reports are normally verified by external parties and therefore give some guidance to consumers. However, it goes without saying that the purpose of these reports is not to describe the lifecycle of each product. For this reason, there is extensive product related information to show environmental attributes in catalogues / brochures or directly attached to the product, which supports the product use phase. This helps to give a better orientation to the customer. Another possibility to obtain further information on the true intentions of companies in being more sustainable is the application of externally verified, so called ‘Type I’ labels. Regional or local labels can help to promote the efficiency of environmental attributes as the applicant needs to provide information on requested items either by a self-declaration or third party verification. Ta k i n g i n t o a c c o u n t individual initiatives, we should not forget that Europe is already highly regulated when it comes to products’ environmental performance. Under the Energy related Products Directive companies have to fulfil so called ‘Minimum E n e r g y P e r f o r m a n c e Standards’ for a growing number of products. Since August 2005 all M e m b e r St at e s a n d Industry have to manage and finance the return and recycling of electrical and electronic equipment ( WEEE ) . How is this evolving? T h e r e a r e a l o t o f administrative burdens that need to be removed. Also the effectiveness must be improved by increasing compliance and reducing the "free-riding". In 2008, the Commission found that only a third of electronic waste was being treated in line with the law, with the rest going to landfill or being ineffectively treated outside the EU. That's the reason why currently the EU Commission is working on a recast of the WEEE Directive, which is expected to come into force in 2014. The European Commission proposed, for example, that producers must meet specific collection targets for the recyclability of products and have to achieve a minimum collection rate of 65% of products placed on the market. Another proposal from the EU Commission is that producers should be encouraged to finance the costs of household collection on top of the existing responsibility of financing. GfK has shown that consumers are becoming more aware of green issues and that this is now a major criterion in the purchasing process. Is this trend continuing? If so, how far will it go towards being a “yes or no” factor? Indeed green issues are very essential in the purchasing decision, but limited to the information available. This trend is very good, as the awareness is increasing and helps the environment. As the information can be based on a declared Energy Label directly on the product or at least point of sale, it will support any purchasing decision. But it is necessary to provide to the potential c o n s u m e r a p ro d u c t - based interpretation, as it depends on the equipment of a product. As we as consumers are mainly experienced through the energy label used for white goods, the label shall become introduced for new products i.e. TVs in the near future. In this respect, the energy consumption depends on the features provided with the product and differs even through picture quality, as well. It will make a difference whether a product remains as a single product or has incorporated several functions i.e. Sat Receiver, DVD or a radio module. In other words, it is not just the energy consumption that is important. The consumer needs to take into account important elements of what makes the product so essential and to decide finally by taking into account such things as energy consumption. IFA International • Friday, 3 rd September 2010 37

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