Sustainable Lighting Solutions for Office and Industry BIU Renewable Energy Event

1. Sustainable Lighting Solutions for Office and Industry BIU Renewable Energy Event 27 October 2011 John L Gorse Technical Marketing Manager Philips Lighting

2. Sustainability Common trends Sustainability is rising to top of the Management agenda Rising costs are encouraging organisations to do more with less (financial cost of carbon) Empowered consumers having more influence over their lifestyle choices e.g. Fairtrade and Carbon Labelling Legislation is driving change, e.g. Carbon Reduction Commitment Energy Efficiency Scheme , Energy Bill affecting Landlords in 2018 Corporate Social Responsibility helping organisations give social returns on investments

3. Sustainability The Case for Landlords of Office and Industry From April 2016, occupiers of buildings rated an F or G on an EPC can request the landlord to make improvements to the energy performance of the building From April 2018, buildings with an EPC less than an E cannot be rented out If a landlord has a direct relationship with the energy supplier, then they will be responsible for the Carbon Reduction Commitment, irrelevant of submetering Companies want a building / workplace that reflects their brand, attracts and retains staff.

4. How Lightingcan contributeto meeting environmental targets and reducing energy costs and emissions

5. Leveraging Sustainability in Lighting A Holistic Approach Environmental Benefits Economic Benefits Social Benefits

6. What to consider when investing in a sustainable lighting solution? Does this business case make sense? How much energy will this initiative save me on my utility bill this month? Economic Benefits Should / can I calculate how much money I will save from CRC allowances? If I delay this decision – how much will it cost me each day? What is the cost of delay? Will I be incentivized in future to reduce my demand for energy during peak times? Can lighting help with this? Energy prices are rising….have I included this increase in my payback calculations? Will spending more money on the capital investment save me money over time on my operational budget? Have I considered the opportunity costs?

7. What to consider when investing in a sustainable lighting solution? Will this solution impact on my carbon dioxide emissions? Environmental Benefits Will this solution help me meet my environmental promises and targets? LEDs last longer – have I considered how this will positively impact on my waste strategy? Lighting is a relatively quick payback compared to other energy initiatives – can I use the savings from lighting to pay for other investments in my estate? Will this solution help me to comply with environmental legislation? Is this solution using less scarce resources to achieve more benefits than the existing technology?

8. What to consider when investing in a sustainable lighting solution? Have I considered how the quality of light that this solution provides impacts on the health, wellbeing and productivity of my fellow employees? Social Benefits I need to provide a safe and attractive environment – how will the white light from LED impact positively on this in my indoor and outdoor environment? Can I ‘shout’ about the energy savings I have made in my corporate social responsibility reports? How can I use lighting to provide an environment that reflects our positive brand and corporate identity messages? How can I use my commitment to energy efficiency to empower my staff and consumers?

9. Economic Summary of any sustainable initiative!A holistic approach Environmental Social Corporate Social Responsibility Business case must make sense Use less resources to achieve more Reputation Opportunity costs considered e.g. investing in new products to improve revenue Reduce emissions and pollution Benefits to society e.g. if using the world’s resources to profit – give something back Financial implication of Carbon Emissions Reduce hazardous waste

10. Economic Summary of Sustainability with Lighting Benefits all round Environmental Social Financial benefit associated with energy savings Effective reduction in CO2 emissions Quality of light impacts staff wellbeing, productivity and comfort LEDs limit waste to landfill Security of energy supply Energy savings can be used in corporate social responsibility reports & campaigns Rising energy costs – savings worth more in future Reduce hazardous materials e.g. mercury Comply with environmental legislation Financial cost of Carbon Provides safe, attractive environment

11. The LED revolutionLED lighting is transforming the entire landscape* 93% 2008 7% <25% 2020 Traditional lighting LED lighting >75% *Market estimate based on internal Philips study

12. Historically LED’s used for transforming spaces into inspirational environments… EDs were initially focused on creating emotion Outdoor Architectural Shops Entertainment Hospitality Avenue of the Arts Philadelphia Lacoste, multiple US locations Star Trek, the Tour Long Beach, California Grand Melia Tenerife, Spain Creating new application using coloured, dynamic lighting…

13. Technology advancements now allow entry intomainstream applications LED is accelerating efficient white Street & Road Architectural Accent lighting General lighting Ties, Andrew’s Lima, Peru Custom House, Boston Romanshorn, Switzerland Generali building Paris … making it suitable for general Office lighting!

14. LED LightingOptions for Offices

16. Up to 60%*energy savings LuxSpace“High efficiency downlight solutions” *Compared to fluorescent based downlights Fluorescent • Key benefits: • Highly efficient, LED remote phosphor downlight • Depending the application payback < 3 years • Wide range of options (size, lm output, form factor and accessories) • Quality of light (3000K, 4000K, CRI>80 @ top efficacy) • Minimal maintenance(50K hours service lifetime)

17. Easy to install Up to 60% energy saving compared to CFL Downlights Dimmable for further energy savings Options in range are office compliant (glare) May support claims for ECA Will contribute to Part L compliance LuxSpace 17

18. DayZone “Innovative design meets sustainability” • Inspiring design & light effect • High visual comfort (UGR: 19) • Energy saving (55 lm/W; through 300/500 LX concept) • Additional energy saving up to 50% in combination with controls • May support claims for ECA • Will contribute to Part L compliance

19. PowerBalance • 25% energy saving compared to 4x14W (T5) • Office compliant • Additional energy saving up to 50% in combination with controls “Bringing an Office LED luminaireto the market, delivering best possible payback compared to fluorescent solutions, while being more energy efficient and maintaining good enough quality lighting(complying with office norms)

20. 25%energy savingspossible* PowerBalance Sustainable Performance Fluorescent * Comparing to Smartform 4x14W D8 @ 63W • Key benefits: • Significant operational cost savings • 25% more energy efficient compared to 4x14W (~45W vs 63W) / 2x28W (~45W vs 62W) • May support claims for ECA • Will contribute to Part L compliance 20

21. LED LightingOptions for Industry

22. LED Highbay • 1 on 1 replacement of 400W and 250W HID highbays • 35% lower energy consumption than HID • Dimmable (DALI) for even more energy savings • Instant light

23. Thank you for your interest Any questions?