February 25, 2021
About one year ago, European Commission Executive Vice President Frans Timmermans launched the ‘Green Deal:’ an ambitious climate plan to make Europe the first climate-neutral continent in the world by 2050. The Green Deal's first goal is to reduce CO2 emissions by 55% by 2030 (compared with 1990).
Since then, much has happened. The whole world, our way of living, working, meeting and socializing has been impacted by the global pandemic, which has crippled economic growth.
“Never waste a good crisis,” as Winston Churchill once said. We shouldn’t. In 2021, we have an unprecedented opportunity to make the world a better, healthier, and more sustainable place.
Spending on infrastructure projects will aid recovery and boost local economies. Investment in highways, tunnels, bridges, building renovation will play a critical role. The renovation of buildings is at the heart of the EU Green Deal with a budget of EUR 275 billion earmarked for the renovation of 35 million buildings. Installing better insulation and switching to LED lighting are the low-hanging fruit in such energy saving projects.
Large scale lighting renovation is both necessary and feasible given that 80% of all light points in the Benelux can be replaced with LED lights. However, if we are to realize significant electricity savings, it is important that governments also take responsibility and offer incentives to both businesses and consumers. We can do this, for example, by stipulating that all new government supported building renovation projects must use LED lighting. It goes without saying that such an obligation should be linked to new European climate legislation and that its non-binding nature must be removed.
Signify has been a shining example for several years with its Circular Lighting proposition. This allows light to be offered as a service – where organizations purchase the light they use not the lamps. In exchange for energy-efficient quality lighting, customers pay a monthly amount that is lower than their current electricity bill. Signify bears the investment costs, provides state-of-the-art lighting, provides maintenance and remains responsible for the lighting hardware. When the contract expires, it then arranges for it to be recycled, or reused.
Signify has demonstrated for years that innovation and sustainability go hand in hand. In September 2020, we announced that we had achieved 100% carbon neutrality for our global operations, which is a colossal achievement for a company with a presence in 74 countries and a truly global manufacturing and logistics footprint.
Naturally, we are mightily proud of this and are very willing to share the lessons we’ve learned on the road to carbon neutrality. As you would expect, we used our own lighting technologies to help to reduce our carbon footprint. The same applies to other companies. They don’t have to invent a new miracle technology to curb their use of electricity. The technology if available right now waiting to be used.
The switching to LED and connected lighting is a ‘no-brainer’ in the fight against climate change. We estimate that an EU-wide switch will save Europe around EUR 40 billion. Such a complete switch to LED would also save around 100 million tons of CO2 emissions. In human terms, that equals the electricity consumption of 60 million households – or the environmental equivalent of the amount of carbon stored by a forest the size of France (around 53 million hectares).
If we are to stimulate economic recovery, we need to base it upon proven technologies that can make a difference. Lighting, which most of us take for granted, must not be overlooked. It’s already recognized as a powerful weapon in the armoury for combating climate change. Now, it’s full potential should be realized for Europe’s green recovery.
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Signify Global Integrated Communications
Neil Pattie
Tel: + 31 6 15 08 48 17
Email: neil.pattie@signify.com
Signify (Euronext: LIGHT) is the world leader in lighting for professionals, consumers and the Internet of Things. Our Philips products, Interact systems and data-enabled services, deliver business value and transform life in homes, buildings and public spaces. In 2023, we had sales of EUR 6.7 billion, approximately 32,000 employees and a presence in over 70 countries. We unlock the extraordinary potential of light for brighter lives and a better world. We have been in the Dow Jones Sustainability World Index since our IPO for seven consecutive years and have achieved the EcoVadis Platinum rating for four consecutive years, placing Signify in the top one percent of companies assessed. News from Signify can be found in the Newsroom, on X, LinkedIn and Instagram. Information for investors is located on the Investor Relations page.