GE’s Green Harvest Grows to US$14 Billion
GE Yesterday announced that it is expanding its ecomagination strategy, committing to reduce its global water use by 20% by 2012. The Company also reported that revenues from its portfolio of energy efficient and environmentally advantageous products and services crossed US$14 billion in 2007, up more than 15% from 2006; the ecomagination order book surged past US$70 billion; and GE’s own “cleantech” fund – investment in cleaner technology research and development – passed US$1 billion for the first time.
“Ecomagination is one of the most successful cross-company business initiatives in our recent history,” said GE Chairman and CEO Jeff Immelt, in Beijing to report the progress with GE customers and partners. “It is a clear amplifier of our strong reputation for innovation and execution, harnessing the strength of every GE business to maximize returns for GE investors while minimizing our own energy use and greenhouse gas emissions.
“Today, we take our commitment further: to reduce our water consumption by one-fifth by 2012.”
In 2005, GE set an original goal to grow revenues from ecomagination products from US$6 billion in 2004 to US$20 billion in 2010. With today’s progress report, the Company forecasts it will surpass US$20 billion by 2009 – a year early on forecast – and is consequently raising the annual ecomagination revenue goal to US$25 billion by 2010.
GE made the following progress on each of its ecomagination commitments in 2007, while adding a new commitment on water use and reuse today:
1) Double its investment in clean research and development – GE invested US$1.1 billion in cleaner technology research and development in 2007, closing in on its US$1.5 billion annual ecomagination R&D target by 2010. GE also increased the number of ecomagination-certified products by 38% over last year – from 45 to 62 products.
2) Increase revenues from ecomagination products – GE reported US$14 billion in revenues from ecomagination products and services in 2007. GE is now escalating its revenue target: from an original goal of US$20 billion in annual sales by 2010 to US$25 billion in annual sales by the same deadline.
3) Reduce its greenhouse gas (GHG) emissions and improve the energy efficiency of its operations – GHG emissions from operations in 2007 were reduced by about 8% from the 2004 baseline. GHG and energy intensity were reduced by 34% and 33%, respectively, compared to 2004 – ahead of GE’s commitment to reduce its GHG emissions 1%, reduce the intensity of its GHG emissions 30% by 2008, and improve energy efficiency 30% by the end of 2012. Energy cost savings to the Company is roughly US$100 million thus far.
4) GE is newly committing to reducing its global water use from 2006 to 2012 by 20% - In 2007, total GE water consumption from waters used for potable, process, and sanitary purposes as well as non-contact cooling waters from freshwater sources decreased by 2% from what was reported for 2006. Progress on this new goal will be reported annually in future ecomagination reports.
5) Keep the public informed – GE continues to inform the public of the Company’s progress via its ecomagination web site, advertising and engagement with customers and other stakeholders.
The Company’s commitment to reduce its own environmental footprint has caught the imagination of its employees around the world, with more than 5,000 energy saving and greenhouse gas-reducing projects ongoing at GE facilities.
GE’s ecomagination report is available at http://www.ecomagination.com/report, where readers are encouraged to download and read the electronic edition. For each 2006 report that was downloaded, GE has committed to planting a tree. This July in Germany, GE will plant more than 5,000 trees in the area of Garmisch-Partenkirchen.
GE (NYSE: GE) is a diversified technology, media and financial services company dedicated to creating products that make life better. From aircraft engines and power generation to financial services, medical imaging, television programming, and plastics, GE operates in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at http://www.ge.com.