GE today reaffirmed that "green is green," reporting that revenues from its portfolio of energy efficient and environmentally advantageous products and services surged past $12 billion in 2006, up 20% from 2005, while the order backlog rose to $50 billion.
GE-Ecomagination
FAIRFIELD, Conn.--(BUSINESS WIRE)--GE today reaffirmed that "green is green," reporting that revenues from its portfolio of energy efficient and environmentally advantageous products and services surged past $12 billion in 2006, up 20% from 2005, while the order backlog rose to $50 billion.
"These extraordinary revenues and orders are the initial payoff from directly aligning our product portfolio with our customers' needs and evolving trends, while 'doubling-down' on investments in leading edge technology and innovation," said GE Chairman and CEO Jeff Immelt. "Ecomagination is growing beyond our expectations, evolving into a sales initiative unlike any other I've seen in 25 years at GE."
Launched in May 2005, ecomagination is GE's commitment to imagine and build innovative technologies that help customers address their environmental and financial needs and help GE grow. A report issued today is the second annual accounting on how the strategy is paying off for GE, its customers and its investors.
"We look to the horizon for trends that will grow at multiples of the global economy," Immelt said. "We then build leadership positions arrayed against these trends, using our unique size and scope to drive exponential growth. Ecomagination is just one example, and GE customers and investors will increasingly benefit as revenues and orders continue to rise."
Specifically, GE made the following progress on each of its ecomagination commitments in 2006:
1) Double its investment in clean research and development -- GE invested $900 million in cleaner technology research and development in 2006, drawing closer to its $1.5 billion annual ecomagination R&D target by 2010. GE also increased the number of ecomagination-certified products 50% over the last year - from 30 to 45 products.
2) Increase revenues from ecomagination products -- GE reported $12 billion in revenues from ecomagination products and services in 2006, on course to the goal of $20 billion in sales in 2010.
3) Reduce its greenhouse gas (GHG) emissions and improve the energy efficiency of its operations -- GE GHG emissions in 2006 from operations have been reduced by about 4% from the 2004 baseline. GHG and energy intensity have been reduced by 21% and 22% respectively compared to 2004. GE is committed to reduce its GHG emissions 1% by 2012, reduce the intensity of its GHG emissions 30% by 2008, and improve energy efficiency 30% by the end of 2012. Roughly 5,000 global projects are under way and have already generated more than 300,000 tons of GHG emissions reductions -- equal to removing more than 50,000 cars from the road. Energy cost savings to the Company are roughly $70 million to date.
4) Keep the public informed -- GE continues to transparently apprise the public of the Company's progress via its ecomagination web site, advertising and engagement with customers and other stakeholders.
GE's ecomagination report is available at www.ecomagination.com/report, where readers are encouraged to download and read the electronic edition. As an incentive, for each of the first 10,000 downloads, GE will plant one tree in the Alpine forests south of Munich, Germany (home to one of GE's Global Research Centers). In collaboration with the German Armed Forces and the Bavarian Forestry Commission, GE's planting will integrate into the landscape, helping strengthen the area's critical flood protection.
As part of its commitment to keep the public informed on ecomagination, GE is encouraging feedback on the report through [email protected].
GE is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing and media content. GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.