AMSTERDAM: Philips Electronics said Tuesday that it planned to spend \1 billion, or $1.4 billion, over the next five years to increase sales of environment-friendly products.

Gerard Kleisterlee, the chief executive, said Philips aimed to double the share of its revenue from environmentally friendly products to 30 percent by 2012. Separately, the company plans to increase energy efficiency of its operations by 25 percent in the same period.

As awareness of climate change grows, going green will give a company a competitive edge, Kleisterlee said in an interview. “Certainly in the current debate in society and the increased consciousness about the environment, energy efficiency will be an aspect in purchasing decisions, both on professional customers and consumers,” he said.

The Philips strategy is part of a global trend, as climate change takes higher priority in corporate planning. A report issued Monday in New York by the Carbon Disclosure Project said global leaders in retailing and manufacturing were paying more attention to greenhouse gas emissions linked to products they made and sold.

“The big thing this year is the huge increase in the level of seriousness with which climate change is being incorporated into the corporate strategy of companies,” Paul Dickinson, head of the Carbon Disclosure Project, said.

Philips, the worlds largest lighting maker and one of Europes largest medical equipment and electronics manufacturers, has placed its environmental record and ambitions at the center of its marketing, especially in its promotion of low-energy light bulbs.

Two weeks ago, Kleisterlee announced that Philips would step up the pace of acquisitions. On Tuesday, he said eco-friendliness would be a factor in seeking acquisitions.

This entry was posted on Tuesday, February 12th, 2008 at 7:46 pm While Dave was in Money. Responses are currently closed, but you can trackback from your own site.