"Ecomagination is paying off for our investors and customers," said GE Chairman and CEO Jeff Immelt. "Our advanced environmental products and services are helping customers increase their energy efficiency and reduce costs and emissions. And it is providing the growth we expected for GE, as we are ahead of our plan to reach $20 billion in annual sales of ecomagination products by 2010."
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. The report issued today will be followed by similar updates on an annual basis.
"With oil prices and other energy costs surging and with water scarcity concerns spreading, ecomagination makes even more sense for our investors today than it did a year ago," Immelt said. "Last year, we said that 'green can be green' -- that we would make money helping customers meet their environmental challenges. A year later, we know that green is green, and that it will make a difference on the bottom line for GE investors as customer interest is accelerating."
GE is also using ecomagination as a platform to improve the energy efficiency of its own operations, helping to lower costs. In 2004 and 2005, GE attacked higher energy expenditures by undertaking nearly 500 global energy conservation projects that resulted in more than 250,000 tons of GHG emissions reductions -- the equivalent of removing nearly 50,000 cars from the road. These projects are yielding substantial energy cost savings.
The ecomagination report, "Taking on Big Challenges," details GE's progress in meeting its own challenges and the broader challenges faced by customers and society. The report reviews GE's performance on its four ecomagination commitments and describes a long-term plan to meet these goals. Specifically, GE made the following progress on each of its ecomagination commitments in 2005:
- Double its investment in clean research and development -- GE invested $700 million in cleaner technologies in 2005, well on the way to reach its $1.5 billion annual R&D target by 2010. GE also increased the number of ecomagination-certified products by more than 75% over the last year -- from 17 to 30 products.
- Increase revenues from ecomagination products - GE reported $10 billion in revenues from ecomagination products and services in 2005 -- offering a clear trajectory to a planned $20 billion in annual sales in 2010.
- Reduce its greenhouse gas (GHG) emissions and improve the energy efficiency of its operations- - GE is on track to reach its internal commitment. GHG emissions from operations remained flat in 2005 compared to 2004, while GHG intensity was reduced 10% and energy intensity was reduced 11%. 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.
- Keep the public informed -- In addition to its report, GE continues to update the public via its ecomagination Web site, advertising and engagement strategies with customers and other stakeholders.
In addition to R&D, revenue and greenhouse gas results and forecasts, highlights from the report include:
- Examples of eco technologies in its R&D pipeline, such as photovoltaics, biofuels, transportation initiatives with even higher emissions and fuel efficiency standards, and an offshore wind turbine project with the U.S. Department of Energy
- Descriptions of each of the 30 ecomagination products, including desalination platforms, fuel-efficient jet engines, and the highest simple cycle efficiency gas turbine available today
- Case studies featuring innovative partnerships with customers and countries
- A revenue map featuring key sales wins from around the world
- Examples of conservation projects GE is undertaking to lower its emissions and energy use