ecomagination

Since 2005, we have invested heavily in harnessing the power of our technology and industrial capabilities to reduce our environmental impact while also reducing our costs by over $100 million dollars. In this report, we’d like to share some of our recent results and our plans for the years ahead.

In the current difficult economic environment, we have seen that ecomagination is even more relevant. As governments around the world structure their economic stimulus programs, virtually all of them include a “green” component designed to support and create jobs that will develop and advance tomorrow’s competitive skills. Given our experience with ecomagination, we have had the opportunity to share our insights into the creation of “green collar” jobs with these governments. By some estimates, the total green component of all global stimulus programs now exceeds $400 billion. We are encouraged by this prioritization, and we support the idea that these programs not only address a current need, but they also lay the groundwork for a stronger, energy-independent future for all.

Beyond the immediate goals of the stimulus programs, ecomagination also has provided us with the opportunity to work with global thought leaders and legislators to craft longer-term policies designed to accelerate innovation and spur action. Earlier this year, the United States Climate Action Partnership (USCAP) delivered our consensus report, “A Blueprint for Legislative Action,” which provided a detailed framework for legislation to address climate change. As a founding member of USCAP, we, along with our industry and NGO partners, are encouraged that many of the elements of the blueprint are embodied in the proposed legislation.

We are excited about the progress that ecomagination continues to make, and we are especially pleased with the milestones we reached in 2008. Historically, all successful cross-Company initiatives at GE have been grounded in metrics, and ecomagination is no different. When we launched the program, we committed to reducing our greenhouse gas emissions intensity on a revenue basis by 30 percent by 2008, and we did. We also increased our portfolio of ecomagination offerings by one-third, to a total of 80; grew revenues of ecomagination offerings by 21 percent, to $17 billion; and increased our investment in the research and development of clean tech solutions by 25 percent, to $1.4 billion.

Looking ahead, we remain committed to this pace of growth. Despite the tough economic environment, we will strive toward a revenue target of $25 billion and an increase in R&D to $1.5 billion in 2010.

One of our most rewarding achievements is that ecomagination’s success has not been limited to GE. A number of our customers are also partnering with us to amplify the impact. Whether it is our advanced coal technology that will provide Duke Energy’s Edwardsport facility lower emissions from abundant coal supplies or our water treatment technology reducing Elion Chemical’s industrial discharge into the environmentally sensitive Yellow River in China, ecomagination has helped companies improve their operations while managing their overall environmental impact. We also have expanded the number of companies we have invested in on a venture capital basis as we continue to seek innovation inside as well as outside of our Company.

Around the world, ecomagination is playing a role in boosting economic recovery, supporting the jobs of the future, improving the environmental impact of our customers’ (and our own) operations, furthering energy independence, and fostering innovation and growth in profitable environmental solutions. We got an early start, and we like our momentum.

We hope you enjoy this report, and we welcome your feedback.

Sincerely,

Jeffrey R. Immelt
Chairman of the Board
and Chief Executive Officer

Steven M. Fludder
Vice President
ecomagination