Delivering on ecomagination · Ecomagination is a business strategy to meet customers’ demands for more energy-efficient, less emissive products and to drive reliable growth for

ge 2006 ecomagination report

Delivering on ecomagination

Ecomagination is a business strategy to meet customers’ demands for more energy-efficient, less emissive products and to drive reliable growth for GE — growth that delivers for investors long term. Ecomagination also reflects GE’s commitment to invest in a future that creates innovative solutions to environmental challenges and delivers valuable products and services to customers while generating profitable growth for the Company. GE continues to work with customers, governments, non-governmental organizations and global technologists to execute on our products and services to help tackle some of the world’s biggest challenges.

Contents

2 AboutThisReport 4 ALetterfromJeffImmelt

andLorraineBolsinger 6 DoubleOurInvestmentinR&D 14 IncreaseRevenuesfrom

ecomaginationProducts 28 ReduceOurGreenhouse

GasEmissionsandImproveEnergySavings

32 KeepthePublicInformed 37 GEataGlance

ecomagination 2006 resultsInitssecondfullyearafterthelaunchofecomaginationinMay2005,GEhasmadesignificantprogressoneachofitsfourmaincommitments:

1. DoubleinvestmentincleanR&D•GEinvested$900millionincleaner

technologiesin2006.

2. Increaserevenuefromecomaginationproducts

•GEhasincreaseditsecomaginationpipelineby50%overthelastyear—from30productsto45.

•2006revenuesat$12billion;ordersandcommitmentshaveincreasedto$50billion.

3. Reducegreenhousegas(GHG)emissions

•GEisontracktoreachitsinternalcommitment.GHGemissionsin2006fromoperationshavebeenreducedbyabout4%fromthe2004baseline.GHGandenergyintensityhavebeenreducedby21%and22%respectivelycomparedto2004.

4. Keepthepublicinformed• Inadditiontothisreport,GEis

keepingthepublicinformedviaitsecomaginationWebsite,dozensofglobalconferencesandstakeholderevents.

2 ge 2006 ecomagination report

About This ReportThe world’s environmental challenges present an opportunity for GE to do what it does best: imagine and build innovative solutions that benefit our customers and society. Ecomagination is a vision and commitment to harness GE’s unmatched products and services to address the world’s pressing environmental issues.

ArklowBankWindPark,IrishSea

ThesecommitmentsrepresentambitiousgoalsforGEandreflectthebroaderchallengesfacingourcustomersandsociety.Drawingonourglobalcapabilities,ourstrengthsintechnologyandourknowledgeofmarketsaroundtheworld,however,givesustheabilitytopositionourselvestobuildabroadportfolioofinnova-tivesolutionstoarangeofenergyandenvironmentalchallenges.

AsGEentersitsthirdyearofthislong-termplanwehavegrowntheecomaginationportfolioto45productsandservicesandhaveengagedhundreds

ofcustomers.ThisreportdetailsGE’sprogressinmeet-ingitschallengesbymeasuringourperformanceagainsteachofthefourcommitmentsoverthecourseofthepastyear.

Whilebigchallengesremain,GEhasthetechnicalbreadthandcredibility,whileweexpandpartnershipsandcapabilitiestopositionustosecuredecadesofacceleratedgrowth.

GE’s ecomagination commitmentsWhenGElaunchedecomaginationinMayof2005,webasedthestrategyonfourcommitments:

DoubleinvestmentincleanerR&D: GE is growing its research in such technologies from $700 million in 2005 to $1.5 billion in 2010.

Increaserevenuesfromecomaginationproducts:GE will grow revenues from products and services that provide significant and measurable environmental performance advantages to customers — to at least $20 billion in 2010, with more aggressive targets thereafter.

Reducegreenhousegas(GHG)emissionsandimprovetheenergyefficiencyofGE’soperations: GE is committed to reducing its GHG emissions 1% by 2012, reducing the intensity of its GHG emissions 30% by 2008 and improving energy efficiency 30% by the end of 2012 (all compared to 2004). Without this action, GHG emissions were predicted to rise substantially by 2012, based on GE’s projected growth.

Keepthepublicinformed:GE’s annual ecomagination report, ecomagination Web site, annual citizenship report and advertising are just some of the ways that the Company is engaging the public.

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ge 2006 ecomagination report 3

To Our Investors, Customers and Other Stakeholders,

We’ll look back at 2006 as the year that the roots of ecomagination took lasting hold: when tangible, measurable success became not just an ambition, but a reality that would strengthen GE’s bottom line for many years to come.

ALetterfromJeffImmeltandLorraineBolsinger

In2006,ecomaginationsurgedtoproduce$12billioninrevenue,leadingapipelinefilledwithnearly$50billioninordersandcommitments.ThisCompanyhasneverhadaninitiativethathasgeneratedbetterfinancialreturnssoquickly.

With128yearsofCompanyhistoryasourguide,weconsiderthisagoodstart—butwearen’tsatisfied.

Ecomaginationiscompletelyrevolutionizingthewaywecol-laboratewithcustomers,broadlyexpandingourproductportfoliothroughtechnicalandcommercialinnovations,facilitatingenlight-enedpolicydialoguesfromWashingtontoBeijing,motivatingemployeesaroundtheworldandattractingnewtalentonthecampuseswhereweprospectfortomorrow’sGEleaders.

Ineachinstance,our“green-is-green”messageresonates.Thisreportrecognizesthepowerfulresponsesfromallthosewithwhomwehavetheprivilegetowork.

GEhascreatedthelargestarrayofinfrastructureandindustrialproducts,servicesandfinancingintheworld,witharisingshareofthatportfoliocertifiedasecomaginationproducts.Whengovernmentsandcommercialcustomersconsidermakingamulti-billiondollarinvestmentininfrastructure—beitinaviation,transportation,wateroroilandgas—orcustomersconsiderhowtolowertheirenergybills,orhowtomaketheirownfinancialdecisionsmoresustainable,weknowwehavethestrongestarrayofproductstofillthatneed.Ourcustomersalsoknowit—andtheyarepickingGE.

Pleasevisitwww.ecomagination.comtoparticipateinacontinuouslyevolvingdiscussiononsustainableprofitability.Todate,thededicatedecomaginationWebsitehasrecordedmorethan1.3millionuniquevisitorsandmanyofthemtolduswhattheythought.Wehopethatyouwill,too.

Sincerely,

JeffreyR.ImmeltChairmanoftheBoardandChiefExecutiveOfficer

LorraineBolsingerVicePresidentecomagination

4 ge 2006 ecomagination report ge 2006 ecomagination report 5

Double Our Investment in R&DGE has operated with the belief that the Company’s future and prospects for building a better world are rooted in a steadfast commitment to technol-ogy. When GE established its first U.S. industrial research center more than a century ago, the decision was based on the belief that GE’s success would largely be driven on an ability to generate new technologies to change the way we work and live. Moreover, a commitment to R&D represented a commitment to future revenues. Ourstrongcommitmenttoecomaginationisreflectedinour

increasedannualinvestmentof$200millioninnewandongoingR&Defforts—from$700millionto$900million;a28%increaseover2005—aswellasanincreaseinthenumberofresearchersglobally.Wealsocontinuetoforgeanexpandedrangeofkeypartnershipswithglobalcustomers,universitiesandlabs.JustaspastGEinventionshavepositivelyinfluencedpeople’slives,werecognizethateachpotentialecomaginationbreakthroughrepresentsabenefittosocietyandanopportunitytodeliverasaCompany.

GE’scommitmenttodoubleitsinvestmenttowardagoalof$1.5billioninR&Dremainsontrack:

R&DiswellfundedacrossallofGEbusinesses,enablingtheCompanytoexplorecontinuousimprovementofexistingproductswhilesearchingfortechnologiesattheleadingedgeofresearch.FundingissharedbetweenGE’sfourGlobalResearchCenters(locatedinShanghai,Munich,BangaloreandSchenectady/Niskayuna,NewYork)andeachofGE’ssixmajorbusinesses.AcrossthebreadthofGEtherearemorethan27,000technologistswith2,600scientistsstaffingGE’sfourresearchcentersworldwide.WhileeachbusinesspursuesR&Dspecifictoitsindustryandproductportfolios,theGlobalResearchCenters(GRCs)aredevel-opingabroadtechnologyportfoliotohelpcustomersandsocietymeetarangeofenergyandenvironmentalchallenges.Theyserveasdedicatedlabsforlong-termR&Dcommitmentsandcollaboratewithindividualbusinessesonkeyprojects.

ResearchersatGE’sJohnF.WelchTechnologyCenter,Bangalore,India

2006

0.90.7

2005 2010*

1.5

ECO R&D INVESTMENT

(In $ billions)

*Forecast


R&D pipelineGE’sabilitytomeetourecomaginationgoalswillrequirethefullcapabilityofthetechnologiesourCompanyhastodayandthecreationofnewonesthatexpandourabilitytosolvetheproblemsoftomorrow.GE’sfourGRCsworkonlong-termR&Dcommitmentsandhelpfindinnovativewaystoapplyexpertisefromonebusinesstoanothertosuccessfullydrivenewandbetterproductsintothemarketplacethatmeetarangeofenvironmentalchallenges.

HighlightsoftheecomaginationtechnologiesGEisworkingoninclude:

Renewable- energy initiativesGEisexploringanumberofresearchprogramstopromotethedevelopmentofrenewablesourcesofenergy.

WindGEresearchersarefocusedondrivingnewinnovationsinwindthatwillhelpfurtherreducethecostofenergy.Researchincludesthedevelopmentoflargertur-binesthatproducemorepowerperdollarofcapitalinvestment,improveddesignandcontrolsformaximizingwindcaptureandaseamlessintegrationofwindintotheelectricpowergrid.

EnergystorageandhybridsystemsGEresearchersarecurrentlyengagedinamulti-milliondollarprojectwiththeFederalTransitAdministration,anadministrationwithintheU.S.DepartmentofTransportation,andotherindus-trialpartnerstobuildaprototypelightweight,battery-dominant,hybrid-fuelcellbuswhichhasextremelylowemissions.Akeyfocusoftheprojectistoreducefuelcellpowerrequirementsandimproveenergystoragetechnol-ogiesthatwouldhelpincreasethecommercialviabilityofthetechnology.

PhotovoltaicsGEbelievessolarenergyhasgreatpotential,particularlyintheresidentialmarketplace.Thekeychallengesaremakingitamoreefficientandaffordableenergyalternative.GEresearchershaveseveralprogramsunderwayincludinga$20millionprogramwiththeU.S.DepartmentofEnergytodevelopmoreefficient,lesscostlycellmaterials.ThiswillimprovetheoverallefficiencyofGE’ssolarmodulesandseamlesslyintegratesolartech-nologiesinbuildingsandhomes.

BiofuelsGE’sJenbacherengines,whichoperateonwastegases,areagreatexampleoftheincreasingfocusourEnergybusinesshasonalternativefuels.GEresearchersareworkingtomakeourpowergenerationandturbineproductsevenmorefuelflexible,sothattheycanburnawidevarietyofbiofuelsthataremoreenviron-mentallyfriendly.

GeothermalandwasteheatGEresearchersatourMunichfacilityareengagedingeother-malandwasteheatresearch.Theyareexploringwaystocost-effectivelygenerateelectricityfromlowertemperatureheatsources.SuchheatsourcesareavailableaswasteheatinmanyindustrialprocessesandintheEarth’scrust.

Transportation initiativesDespitealreadyhavingsomeofthemostenvironmentallyadvancedandfuel-efficientloco-motives,GEresearchersalsoareworkingonahybridlocomotive,whichcoulddramaticallyreducefuelconsumptionandemissionscomparedtomostfreightlocomotivesbeingusedtoday.

Inthehybridlocomotive,energyisrecoveredinthebrakingpro-cessandthenstoredinbatteriesandreusedasenergy.Researcherscontinuetolookforwaystoimprovethebatteryper-formanceandoptimizetheinte-grationofthehybridstoragetechnologyintothelocomotiveengine.

GEresearchersarealsoexploringnewtechnologiestooptimizehowalocomotiveenginerunstofurthermaximizeperformance

andfuelefficiency.GEalreadyofferstechnologiesthatautomat-icallyadjustengineparametersbasedonaltitudeanddistributehorsepowermosteffectivelyamongseverallocomotivesonagiventraintouselessfuel.Researchersarenowworkingontechnologysolutionstooptimizehowtripsaredriventoensurethattrainsarriveasplannedusingtheleastamountoffuelpossible.

InAviation,GEresearchersareengagedinseveralprogramstoreduceemissionsandimprovethefuelefficiencyandoverallperformanceofourpresentandfuturegenerationsofaircraftengines.Thisincludesresearchinadvancedaerodynamics,com-positematerials,turbinealloysandadvancedcoatingsandcom-bustionsystems.


Carbon captureInanincreasinglycarbon-constrainedworld“betterandcheaper”willbecriticalcompo-nentsoflastingsolutions.CapitalizingonGE’sIntegratedGasificationCombinedCycleSystem,GEresearchersareworkingondifferentapproachesthatwilloffermoreefficientandeffectivewaystocaptureCO2atasubstantiallyreducedcost.

Cleaner Coal technologyGEoffersanIntegratedGasificationCombinedCycle(IGCC)Systemthatsuccessfullyconvertsfuelssuchascoalintoacleanerburningenergysource.OurIGCCSystemalsomakesiteasiertoseparatecarbondioxideandemitslessthanhalfofthesulfuroxides,nitrogenoxides,mercuryandparticulatematterthanwouldbeemittedbyatraditionalpulverizedcoalplant.GEresearchersareworkingoninventingapowersystemthatwillhelpconvertcoalintoanevencleanerburningfuel.

Water use and purification initiativesGEscientistsareexploringrevo-lutionarynewseparationprinci-plesandimprovedmembranetechnologiestolowerthecostofwaterfordrinkingandindustrialwaterreuse.Inaddition,researchersaredevelopingnewmembranematerialsandenergyrecoverydevicesthatwouldenablebrackishandseawaterdesalinationplantstostreamlinesystems,reducecostsandcutenergyconsumptionbyupto30%overthenextfiveyears.

Energy-efficiency initiativesGEhasenteredastrategicalli-ancewithKonicaMinolta,alead-ingimagingcompany,toacceleratethedevelopmentandcommercializationofOLED(OrganicLightEmittingDiodes)devicesforlightingapplications.ThegoalistobringOLEDlightingtomarketwithinthenextthreeyears.OLEDlightingapplicationswillprovideconsumerswithanentirelydifferentwaytolighttheirhomesandbusinesses.Theseapplicationswillbemer-cury-freeanddeliverdramaticallyimprovedlevelsofefficiency.


Soaring to a sustainable future in India: Air India puts actions in motion

India is poised for exponential growth of its economy and its influence in the world. This growth potential also applies to how India will continue to address its environment. The country’s history and culture has been long connected to living in harmony with the environment. The nation also possesses a huge knowledge base that can steer India’s growth potential in the direction of sustainability. Going forward, the hope is that Indian business and government leaders who enact legislation or hold the potential to grow the economy will make “green” choices a priority, choices that will preserve the natural beauty of the country as much as possible.

Whilechallengeswitheconomicdemocracywillalwaysexist,Indiahastheadvantageofhavingavibrant,energeticandcreativeNGO(non-governmentalorganization)sectorthatisincreasinglywillingtoworkinconcertwithdomesticandinternationalmarketplayerstopushenvironmentalinitiativesforwardtoachievesus-tainablegrowthforthecountry.WorkingwithcompaniessuchasGE—whosecommitmentandproductsprovideenvironmentalsolutionsandhelpdriveeconomicgrowthandfinancialreturns—willonlyfurtherIndia’seffortsinadirectionthatthecountryandtherestoftheworldcanembrace.

OneillustrationofIndia’scommitmenttosustainabilitywasthesigningofamemorandumofunderstandinginFebruary2007betweenGEAviationandAirIndia,India’slargestairline,outlining

specificinitiativesandtasksonwhichourtwoorganizationswillcollaborate.EffortswillcombinetheexperiencethatGEhasinthisspacewiththedesireandwilloftheAirIndiateamtomakeitsoperationsmoreenvironmentallyadvantageous.

Thistop-downinitiative,supportedbyAirIndiaChairman,M.Thulsidas,willnotonlychangethewaythattheworldlooksatAirIndiaasanairline,buthowtheworldviewsIndiaasawholeasittakestepstowardasustainablefuture.ThissentimentisechoedinthegovernmentsectorbyKapilSibal,MinisterforScienceandTechnology,GovernmentofIndiawhostates,“…ecomaginationisaninitiativewhosetimehascome.IcommendGEfortakingthisinitiativeandhopeotherswillfollow.”


R&D highlightsGE’s culture of fostering imagination is supported by one of the world’s largest and most diverse network of research centers. This distinct capability enables GE technologists to share their expertise across disci-plines and contribute to developing innovative ecomagination solutions.

Clean energy and water all-in-oneToday,morethanonebillionpeoplearoundtheworldlackaccesstosafewatersources.Toaddressthisissue,GEresearchersareengagedinaprojectwithTexasTechUniversity,aworld-recog-nizedresearchcenterforwind-waterintegrationandapplication,todevelopaffordablewaterdesalinationsystemsthatincreasethequantityandqualityofcleanwateravailableinaridareasaroundtheUnitedStatesandglobally.Thepartnershipfocusesontheintegrationofrenewable-energysystems,suchaswindturbines,withmembranedesalinationprocesses.Thedevelopmentoftheintegratedrenewableenergy-watersystemhasthepotentialtosignificantlyreducethecostofcreatingnewsourcesoffreshwaterfromimpairedresources,suchasbrackishwater,bydirectlyaddressingthemajorcomponentofoperatingcostofdesalinationsystems—energy.

Enabling clean drinking water: Solar Clean Water SystemBy2020,muchoftheworldisexpectedtoconfrontseverewatershortages,particularlycountriesinSoutheastAsia,AfricaandLatinAmerica.Inresponse,GEissupplyingitsecomagination-certifiedsolarenergymodulesandwaterfiltrationtechnologyinruralareasofIndia,Bangladesh,Nepal,MalaysiaanddevelopingcountriesinAfricatoimprovetheavailabilityofcleandrinkingwater.Thissolar-powered,off-gridapplicationbringstwoofGE’sinnovativeecomaginationtechnologiestogethertoprovideanewsolutionthatiseasytomaintainandavailableforrapiddeployment.

Theuseofsolarenergytechnologytopowerwaterfiltrationsystemswillenablegovernments,NGOsandphilanthropicorgani-zationstoinstallequipmentinremoteareasthatlackdirectaccesstotransmissiongrids.Toensureeffectivedeploymentofthisnewtechnology,GEiscreatinganetworkofexperiencedlocalintegra-torsanddevelopers.Self-sustainingcleanwatersystemsareseenascrucialintheglobalfighttoreducethespreadofdiseasesandimprovemortalityratesindevelopingcountries.Theseprojectswillhelpimprovethehealthandsafetyconditionsofareaslackingadequateinfrastructureanddirectaccesstosafewatersupplies.

Promoting greener communitiesMakingtomorrow’shomesandcommunitiesmoreenergyefficientwillrequireentirelynewapproachestodesigningandbuildinghomes.Tofosternewideas,GEispartneringwithNewMexicoTech,aleaderinrenewableenergyresearchanddevelopmentonamulti-yearresearchprogram.Thegoaloftheprogramistodevelopanddemonstratetheintegrationofsustainabletechnologiestocreatecost-effectiveandenergy-efficientresidentialandcommercialcommunities.Theprogramwillintegrateandoptimizerenewableenergyandenergyconservationtechnologiesintohomesandbuildings,includingsolarenergy,homesecuritytechnologies,energy-efficiencytechnologiessuchasadvancedlightingandappliances,andadvancedelectricaldistributionsystemtechnologies.

Solarenergycreatespassive,nearzeroemissionenergygeneration.GEresearchersbelievethatinthefuture,asmuchas10–20%ofthepowergeneratedintheUnitedStatescouldbederivedfromsolarenergy.GEEnergyisleadinganallianceofcompanies,universitiesandresearchersindevelopingadvancedsolarenergytechnologiesthataimtoacceleratelarge-scalecommer-cializationofsolartechnologiesthatwillbecostcompetitivewithretailelectricitywithoututilizingsubsidies.

TheGEalliancewasawardedan$8milliongrantwithapproxi-mately$18.6millionavailableoverthenextthreeyearsiftheGEledteammeetsitsgoalsfromtheU.S.DepartmentofEnergy’sSolarAmericaInitiative,partofPresidentBush’sAdvancedEnergyInitiative.Theprogramwillsupportthedevelopment,com-mercialscale-upandcustomerdeliveryofcompletesolarsystems,includingthedevelopmentofbalance-of-systemtechnologiestosupportlow-costinstallationandincreasedenergyyieldandfutureenhancementstobuildingsenergymanagementandpowerquality.

Heating up development: Solar energy research program

Morethan90%ofHawaii’selec-tricityandtransportationenergyneedsrelyonimportedpetroleum.Thisconditionmakesitseconomysensitivetosupplyvolatilityanddisruptionsandresultsinsomeofthehighestelectricityandgas-olinepricesintheUnitedStates.Asenergychallengesgrow,moreattentionisturningtosolutionsthatdiversifyandpromotecleaner,sustainablealternatives.

Toaddresscurrentissues,GEisworkingwiththeStateofHawaii,theUniversityofHawaii,HawaiiutilitiesandtheU.S.DepartmentofEnergytodevelopasustain-abilityinitiativethatwillidentifynewsolutionstomeettheenergyneedsoftheBigIslandofHawaii.

TheeffortwillevaluateexistingenergysourcesontheBigIsland,identifytechnologysolutionsthatcanreducetheisland’sdependenceonfossilfuelsandconsiderwaystoincreasetheconcentrationofintermittentrenewableresourceslikewindandsolarenergy.

ByevaluatingthetechnicalandeconomicimplicationsofincreasedrenewableenergyusefortheBigIsland,GEwillnotonlyassistHawaiiinplanningitsenergyfuture,butalsogainfurtherinsightintothechallengesassociatedwithdevelopingtechnologiesbestsuitedtooperatingrenewable-intensiveenergysystems.

Hawaii sustainability initiative

Since1980,thepopulationofthemetropolitanareaofSãoPaulo,Brazil,hasmorethandoubled.Thisgrowthhasalsoturnedtheregionintothecountry’slargestindustrialcenter.Increasingly,areafactoriesareinstallingmoreenvironmentallyfriendlysystems,includingCiaNitroQuímicaBrasileira,anindustrialchemicalsunitofLatinAmericanconglom-erateVotorantim.

CiaNitroQuímica’splant’sproductionprocessdemandsasignificantvolumeofhigh-puritydemineralizedwatertogeneratesteam.Toreducewaterconsump-tion,theplantoptedtoinstallasystemofdemineralizationthroughthereverseosmosis(RO)technologyofGEWater&ProcessTechnologies.ROseparationtechnologyisusedto

removedissolvedimpuritiesfromwaterthroughtheuseofasemi-permeablemembraneinvolvingthereversalofflowthroughthemembranefromahigh-salinity,orconcentrated,solutiontothehigh-purity,or“permeate,”streamontheoppositesideofthemembrane.

AsaresultofthenewsystemusingRO,thecompanyrunsitsboilersalmostcontinually,withoutthefrequentinterruptionsaspre-viouslyrequired.Byoperatingboilersmoreefficiently,theplanthasreducedwaterconsumption,naturalgasconsumptionby45%,andemissionofgasesandthedischargeofgenerationwastewaterby90%,whilealsoachievinganexcellentreturnoninvestment.

Reducing emissions: GE reverse osmosis technology

The Tsinghua projectThetremendousgrowthanddevelopmentofChina’secon-omyiscreatinghugedemandsfornewenergysources.Withoneoftheworld’slargestcoalreserves,thecountryisturningtocoaltomeetitsincreasingpowerneeds.Atthesametime,thenationisemphasizingtheimportanceandneedtodevelopclean,sustainableenergysolutions.

GEbelievescleaner-coalsolutionswithadvancedtech-nologiesarepossibleandholdpromiseforChina’sfuturedevelopments.TohelpChinadevelopnewsolutions,GEtechnologistsatGE’sChinaTechnologyCenterareworkingwithresearchersatTsinghuaUniversityoncleanercoalandwindenergyresearch.ThejointteambringstogetheranunderstandingoftheuniquetechnicalchallengesChinafacesandcantapintoGE’sR&Deffortsfromaroundtheglobe.Bydrawingoneachother’sstrengths,teammembersareputtingtheircombinedknowledgeandresourcestoworktoenableahigherpenetrationofcleanercoalandwindenergyresourcesintothecountry’sgridinfrastructure.

Turning waste into energy: Jenbacher enginesCountriesaroundtheworldareincreasinglyconsideringrenewableenergysolutionsandareemployingGE’sinnovativeJenbacherengines.Theseenginesharnessmethanereleasedfromcoalmines,decomposingorganicmaterialinlandfillsandbiomasscreatedwithagriculturalcropstocreatehigh-energy,fuelwhilepreventingthereleaseofmethane,apotentgreenhousegas.

GEandNAWAROBioenergie,arenewableenergydeveloper,areundertakinganagriculturalbiogasprojectineasternGermany.FortyJenbacherenginesarebeinginstalledinseparateplantstosupportanewbioenergypark,called“Klarsee,”adjacenttofarmlandinthetownofPenkuninMecklenburg-Vorpommern.TheJenbacherunitswilltakebio-gascreatedduringthedecompositionofagriculturalwasteanduseitasfuel.Approximately20-megawatt(MW)ofelectricitywillbesoldtothelocalgrid,andaseparate,spe-ciallydesignedheatrecoverysystemwillheatanadjacentfertilizerproductionfacilityonthefarmland.

Energy-efficiencyprojectsarealsounderwayinUkraine,whichhastheworld’slargestcoalproductionfacilities,toutilizeallaspectsofthisfuelandtoreducetheamountofcoal-mineemissions.Onemajorinitiativeisthenewcoal-minemethane(CMM)cogenerationplantatSasyadko,thecountry’ssecondlargestmine,locatedinthesoutheasternDonbascoal-miningregion.GE’sJenbachergasenginesareusingmethanegasreleasedduringthecoal-extractionpro-cesstoprovideelectricityandheatforthemine’son-siteoperations.Onceall24enginesareinstalled—generatingatotaloutputofnearly143MWofpower—theSasyadkoplantissettobecometheworld’smostpowerfulcogenerationplantfueledbycoal-minegas.

Powergeneratorsconstantlyseekeconomicalsolutionsforthedispatchneedsofvaryingmarketconditions,suchasthoseinCalifornia,whererecord-breakingsurgesinelectricitydemandareoccurringintandemwithsomeofthecountry’smoststringentenvironmentalpolicies.

GEbelievesoneofitsnewestadditionstotheecomaginationportfolio,theLMS100gasturbine,offersafast,flexibleandefficientsolutionforCalifornia’sandothergeographies’mostchallengingpowerneeds.Withits10-minutestarttimes,unmatchedhot-dayperformance,efficiencyandreliabilityfromproventechnology,theLMS100gasturbinehasbeensteadilygainingmomentuminthemarketplaceasanidealsolutionforpowergenerationplannersanddevelopers.

ThePanocheEnergyCenterisoneCalifornia-basedpowerprovideroutsidethecityofFresnothathasalreadychosentheLMS100’s44%simplecycleefficiencyandreducedgreen-housegasemissionstomeetincreasingperiodsofhighdemand.Thecenterhaspur-chasedfourLMS100gasturbinesystems,whichwillproduceenoughelectricityduringpeakdemandhourstoilluminatetheentirecityofSantaAna,California.WithatotalofnineLMS100unitsgoingintoallofCaliforniaby2010,thestatestandstorealizeaCO2emissionsreductionofmorethan270,000tonsoverothersimilarindustrialgasturbines—theequivalentofeliminatingtheemissionsfrom45,000cars.

Meeting growing power demands: GE’s LMS100 gas turbine systems

LeveragingadvancedresearchinpulseddetonationcombustionforaircraftpropulsiontakingplaceatGE’sGlobalResearchCenterinNiskayuna,GEEnergyrecentlyintroducedanewonlineimpulsecleaningsystemforcoal-firedboilersusedinpowergenerationplants,calledPowerwave+.Powerwave+ultimatelyenhancesboileroperationatpowergenera-tionplantsthatburncoalornaturalgastoproduceelectricity.

Powerwave+harnessesstrongshockwavescreatedthroughthepulseddetonationprocessanddirectsthematproblemareasintheboiler.Thisprocessnon-destructivelyremovesbuilt-upandbrittledeposits.Theresultingbenefitisthatlesscoalneeds

tobeburnedtomaintainpoweroutputfromaplant.Powerwave+alsoallowsplantstorunlongerbeforeperformingscheduledoutagesandreducescostlymain-tenanceassociatedwithothercommonlyusedcleaningtechniques.

InstallingPowerwave+ineverycoal-firedboileraroundtheworldcouldsavemillionsoftonsofcoalperyear,theequivalentofpoweringwelloveramillionU.S.homes.Inadditiontoreduc-ingthecarbonfootprint,thisnewproductreducestheamountofwaterthatpowerplantscon-sume,includinghundredsofthousandsofgallonsofwaterincaseswherePowerwave+replacessteamsootblowers.

Reducing the carbon footprint one boiler at a time

Increase Revenues from ecomagination ProductsGE launched its ecomagination platform with the belief that “green is green”: that environmentally sound business is profitable. After nearly 130 years in business, we knew that true environmental sustainability would only be possible if the practice could be sustained economically. Therefore, ecomagination was conceived as a business strategy, and just two years into the program it is delivering the commercial potential we envisioned.

In2006,GEachieved20%growthinecomaginationrevenuesover2005,from$10billionto$12billion.Thisgrowthcamefromprovid-ingourcustomerswithproductsthatmayimprovetheiroperatingperformanceandreduceenvironmentalimpact.Thepotentialofthismutualbenefitissignificant.Notonlyhasecomaginationgenerateddouble-digitgrowthforGE,butithasalsobecomeacatalystforinnovationandanewdialogueinbusinessasawhole.Aswecontinuetogrowecomagination,weareexcitedbythemomentumofourproductsandlookforwardtothegainsthatwillbeaddedasnewproductsbecomecommercialized.GE’sGEnxtestbedinPeebles,Ohio


Ecomagination certified products and servicesToensurethatproductintroductionismetwiththehighestdegreeofintegrity,GEemploysarigorousqualificationprocesstoeffec-tivelycertifynewproductsforecomagination.GE’sprocessbeganwithestablishingaclearstandardforecomaginationproductsbasedontwocriteria.Ecomaginationofferingsare:

Productsthatsignificantlyandmeasurablyimprovecustomers’:

1. Operatingperformanceorvaluepropositionand

2. Environmentalperformance

orservicesthatsubstantiallyenabletheimprovementsmentionedabove.

Thesecriteriaworkinharmony.AttheheartofthisstandardisGE’sbeliefthat“greenisgreen”—thatbyinvestinginanddevelopingenvironmentallyadvancedproductsandservices,GEwilldeliversolutionsthatincreasecustomers’abilitytocompeteandwin.GEalsocreatedtheEcomaginationProductReview(EPR)scorecardthatquantifiesaproduct’senvironmentalimpactsandbenefitsrelativetootherproducts.Toensuretheaccuracyofthescorecard,GEworkedwithGreenOrder(www.greenorder.com)toprovideindependent,quantitativeenvironmentalanalysisandverificationofGE’sproductclaims.

ThefollowingpageshighlightGE’secomaginationcertifiedproductsandservices.

Transportation — RailEvolutionSeriesLocomotiveIntheU.S.,GE’sEvolutionSerieslocomotiveusesanewGEVO12-cylinderdieselenginethatproducesthesamepowerasits16-cylinderpredecessorwhileusinglessfuelandgeneratingupto40%lessnitrogenoxideandparticulatematteremissions.

HybridLocomotiveGE’shybriddiesel-electricloco-motiveisdesignedtocaptureandstoretheenergydissipatedwhenbrakinga207-tonlocomotive,thenusethatenergytoproducemorehorsepowerandreduceemissionsascomparedtomostfreightlocomotivesoperatingtoday.

KazakhstanEvolutionTheGEKazakhstanEvolutionwillproducefarfewerNOxandparticulatematteremissionsthantheRussian-builtTE10Mlocomo-tivesitwillbereplacingandwilloperateatahigherhorsepowerratingthantheTE10Mlocomo-tives,requiringfewerlocomotivestohaulthesamefreightload.

ChinaMainlineEvolutionThe16-cylinderEvolutionenginedesignedtopowertheChinaMainlinelocomotivereducesemissionsby28%whileimprovingfuelefficiency.It’salocomotivethatistailoredfortheChinamar-ketwiththecapabilityofpullingmassivecargoloadslongdis-tanceswithincreasedreliability.

Russian-BuiltLocomotiveModernizationSkidsGEmodernizationsimprovetheoperatingperformanceandfuelefficiencyofRussianlocomotivestherebyreducinggreenhousegasemissionsandamountoflubeoil.

PlasticsWireCoatingMadewithNORYLResinMadewithmoreeasilyrecycledpolymers,NORYLresincontainsnohalogensandfewerheavy-metalpigments—meetingstringentenvironmentalstandards,suchastheEuropeanUnion’sEco-label.

ConductiveNORYLGTXResinUsingconductiveNORYLGTXasasubstratematerialenableselectro-staticliquidpaintingandpowdercoatingofplasticpartswithouttheuseofaconductiveprimerlayer,whichsavesmaterials,timeandmoneywhilesignificantlyreducingtheemissionsofhazard-ousairpollutants(HAP).

FreezerFilmGE’sLexanConstantClearfilmeliminatestheneedtoheatsupermarketdisplaycasedoorsoninteriorglasspanestoclearfogandsavesenergy.

NORYLGTXforAutomotiveFendersWeight-savingmaterialssuchasNORYLGTXforautomotivefendersprovideanexcellentmeansforautomotivemanufacturerstoimprovethefuelefficiencyoftheirvehicles.Onaverage,fendersmadeoutofGE’sNORYLGTXresinareupto50%lighterthancom-parablesteelfenders.

LEXANSLXFilmforPaintReplacementBycombininganewpolycarbon-ateplasticwithcolorants,LEXANSLXfilmcouldenableautomotivemanufacturerstoreducetheamountofpaintusedorreplacepaintentirelywhilemakingcarsmorelightweightandfuel-efficientandreducingVolatileOrganicCompound(VOC)emissions.

ValoxiQ&XenoyiQGEValoxiQandXenoyiQresinsarecreatedwithpolybutyleneterephthalate(PBT)-basedpoly-mersderivedfrompost-consumerplasticwaste.Theproprietarymanufacturingprocessforthesematerialsdoesnotinvolverecy-cling,butrather,anovelwaytoregenerateandupgradesyntheticsolidwastethatwoulduselesscrudeoilandreducegreenhousegasemissions.


Consumer & IndustrialCompactFluorescentLightingMorethan90%ofGE’scompactfluorescentlightbulbsareENERGYSTAR®qualified—mean-ingtheyofferenergysavingsof70–75%andlastupto10timeslongerthanincandescentbulbs.

DiamondPreciseLampsComparedtothestandard50-watthalogenPAR20andincandescentR20lamps,DiamondPreciselampsconsume58%lessenergy.1

ENERGYSTARQualifiedDishwasherswithSmartDispenseTechnologyMorethan90%ofGE’sbuilt-indishwashersareENERGYSTARqualified,whichmeanstheyoperate25%moreefficientlythannon-ENERGYSTARmodels.SmartDispensetechnologydis-pensestheappropriateamountofdetergentforeachwash.

HalogenIRLampsA55-wattretailHIRlampcon-sumes27%lessenergywhileproducingthesamelightoutputasa75-wattHalogenPluslamp,resultinginreducedelectricityconsumptionandsubsequentCO2emissions.

T8LinearFluorescents&UltraMax/StartBallastsUltraT8lampsandUltraMaxBallastsystemsconsumelessenergythanstandardT8andT12lampsystemswhileproducingmoreorequivalentlumens.

LEDsGELEDlightingsystemsprovideupto90%energy-costsavingscmparedtostandardincandes-cent,neonorfluorescentlampsystemsinavarietyofapplicationsincludingtrafficsignals,architecturallighting,signageandrefrigerateddisplaycaselighting.

ENERGYSTARQualifiedFrontloadWashersTheGEfrontloadwasherexceeds2007ENERGYSTARguidelinesby16%.Thewasherusesaslittleas10gallonsofwaterforasmallloadand15gallonsforanaverage-sizeload,whichsavesupto23gallonsperload,or61%water,ascomparedtoatraditionalclotheswasher.2

ENERGYSTARQualifiedGEProfileHarmonyWashersOneofthelargestofalltheENERGYSTARqualifiedwashersonthemarkettoday,theGEProfileHarmonywasherexceeds2007ENERGYSTARguidelinesby8.7%andmeets2007energystandards.Byusinglesswater,thewashercanomit110loadsoflaundryayearcomparedtoatypicaltop-loadmodel.

ENERGYSTARQualifiedHotandColdWaterDispenserAGEENERGYSTARdispensersavesupto25%oftheenergyrequiredtopoweranon-ENERGYSTARmodel.

ENERGYSTARQualifiedRefrigeratorsGEENERGYSTAR-qualifiedrefrig-eratorsuseatleast15%lessenergytooperatethanrefrigeratorsthatarenotENERGYSTARqualified;theyuse40%lessenergythanconventionalmodelssoldbefore2001,andmorethan50%lessthanmodelsmanufacturedbefore1993.

Nearlyallofthenewproductintroductionsfor2007inGEProfilebottomfreezersandside-by-sidesmeetorexceedtheENERGYSTARstandard.

X$DULTRA–NEMAPremiumExtraSevereDutyMotorsTheX$DUltramotorusesimprovedmaterialsandcutting-edgetechnologytodevelopsuperiorelectricalandmechanicalperformanceandreducegreen-housegasemissions.

GEEcomaginationHomesProgramGE’sEcomaginationHomesProgram,developedincollabora-tionwithleadinghomeproductsmanufacturerMascoContractorServices,combinessoundbuildingsciencetechniqueswithadvancedlighting,energy-andwater-efficientappliances,energymanagementandsolarpower.Theendresultarehomesthataredesignedtodeliveratleast20%householdenergysavingsversusanindustryacceptedaveragenewhome.

1 Althoughfacelumensare53%less,themulti-facetedreflectorconcentrateslumensontarget,diminishingwastedextraneouslight.

2 Ascomparedtoatypicalwasher,WWSE5240.

Oil & GasBCL304SeriesCentrifugalCompressorGE’sBCL304SeriesCentrifugalCompressorre-injectiontechnol-ogynotonlydecreasestheamountofgreenhousegasesthatarereleasedwhenoilandgasareextractedfromwells,butalsoincreasestheamountofoilorgasthatcanbeextractedbyupto20%.

PIIUltraScanDuoTheUltrascanDuoistheultimatepipelineinspectiontool,offeringadvancedtechnologyforcrackdetectionandmetallossthatcanbetterassesstheriskofpipelinefailuresandproactivelymitigateriskofleaks.TheUltraScanDuoalsocombinescrackdetectionandgeneralcorrosioninspectioninaconsolidatedruntominimizeflowdisruptionandrestorepipe-lineoperationinhalfthetime.

GE-Water & Process Technologies DesalinationGE’sdesalinationplatformsreclaimmorethantwobilliongallonsofwateraday—anequivalentofthedailywaterrequiredbymorethan150millionpeople,orhalftheU.S.

AdvancedMembraneTechnologyGE’smembranetechnologiestreatwaterforavarietyofappli-cationsfrompurifyingwaterforsoftdrinkstoremovingheavymetalsfromwastewatertotreatingindustrialwaste.

HomespringHomespringsystemsuseultra-filtrationmembranestophysicallyfilteroutminuteparticlestoproducecrystal-clear,microbiologicallypurifiedwaterforthehomewithnochlorinetasteandodor.

EnhancedPerformancePretreatmentEPPisanewmethodofpreparingmetalforpaintingthatimprovescorrosionprotectionandelimi-natesphosphatepollutionfromtheiron-phosphatepretreatmentsystemsitreplaces.

ZeeWeedHollow-fiberultrafiltrationmem-branesproducesuperiorqualitydrinkingwaterandtreatwaste-waterthatcanbesafelydis-chargedtothemostsensitiveenvironments,orreusedinirrigation,industrialprocesses,orgroundwaterrecharge.

ABMetAdvancedBiologicalMetalsRemovalProcessisthesimplest,mostcost-effectiveandenergyefficienttechnologyavailabletoprotecttheenvironmentfromharmfullevelsofheavymetalsfoundinwastewater.


EnergyIGCCCleanerCoalGE’sIntegratedGasificationCombinedCycle(IGCC)technol-ogyconvertscoalintoacleanerburningfuelthatcanbeburnedinagasturbinecombinedcyclesystemtogenerateelectricity.Thisprocessemitsover60%lessnitrogenoxidesandparticulatematter,50%lessmercuryandreducessulfurdioxidesbyover90%anduseslesswaterthantraditionalpulverizedcoalplants.

Jenbacher—CoalMineMethane—LandfillGas—BiogasPowerGenerationHarnessingmethanetoproduceenergyisanexcellentwaytomanageagaswith21timestheglobalwarmingpotentialofcarbondioxide.Jenbachergasenginescanoperateonmethanereleasedfromcoalmines,decomposingorganicmaterialinlandfillsorbiomasscreatedwithagriculturalcropsorotherorganicmaterials.Capturingthisfuelsourcethatwouldotherwisebeventedorflaredforpowergenerationprovidescommunitieswithalocalpowersupplyfromreadilyavailablefuel.

WindTurbinesGE’sinstalledbaseofwindtur-binesprovidesenoughenergytopowerover2.5millionU.S.households—anamountofelectricitycomparabletotheenergyproducedby18millionbarrelsofoilandanannualreduc-tioningreenhousegasemissionsofnearly21milliontons.

PhotovoltaicsGEsolarelectricpowersystemsaresomeoftheeasiesttoinstallandmostaestheticallypleasingsolartechnologiesavailabletoday.GE’ssolartechnologycontinuestogrowinpopularitywithcommercialandresidentialcustomerswhileenablingpeopletoharnessthesun’senergytogeneratetheirownpowerandrealizesavingsofupto60%ontheirmonthlyenergycosts.

HSystemTurbineGE’sHSystemturbineiscapableofdelivering60%efficiencyandpowerfulenoughtoprovideelectricityto300,000Americanhomes.GreaterefficiencymeanstheHSystemturbineuseslessfuelandproducesfeweremis-sionsperMWofelectricitycomparedtootherlargegastur-binecombinedcyclesystems.

LMS100TheLMS100isthehighestsimple-cycleefficiencygasturbineavail-abletoday.Itgeneratesmorethan100MWofpowerat44%thermalefficiency,makingitthebestinclassby10%,whilealsoofferingsignificantreductionsinCO2emissions.TheLMS100alsooffersoperatingflexibilityforpeaking,mid-rangeandbaseloadoperationsallwithlowerstart-upemissionsanda10-minutestart.

PulsePleatPleatedFiltersPulsePleatpleatedfilterelementscaptureparticulatematter(finedust)createdbyvariousmanufacturingprocesses.Thesefilterspreventthereleaseofair-pollutingemissionswhilerequiringlowerpulsepressureandfewerpulsestoclean,leadingtolowerenergycosts.

DLN1+CombustionSystemGasturbineswithDLN1+com-bustionsystemshavelowerNOxemissionscomparedwithsimilarturbinesequippedwithDLN1combustionsystemsandhavebetterefficiency,andemitlessCO2thanagasturbineequippedwithaselectivecatalyticreduction(SCR)system.

DLN2.6+CombustionSystemTheGEDLN2.6+combustionsystemenablesgasturbinestooperatemorecleanlyandefficientlythanwhentheyareequippedwithalternativeNOxreductionsystems.Thissystemallowspowergenerationequip-mentoperatorstooperateacrossawiderloadrangewhileatthesametimeenablingthemtomeetthenewest,moststringentregula-toryemissionslevelsrequirementsateachstepoftheloadrange.

PowerWave+ThePowerWave+PulseDetonationsystemcouplesshockwaveswithpressurepulsestoproducethecleaningpowertodislodgetoughbuildupsinboilersinthecoal-burningprocessforpowergeneration.Theprocessimprovesboilerefficiencyandreducestheamountofcoalburnedandashdustgenerated.

FleetecomaginationFleetServices—NorthAmericaandEuropeGEecomaginationFleetServicesconsistoffourcomponents:telematicsthatoptimizevehicleroutes;avehicleselectortoolforoptimizingfueleconomy;drivertraining;andengineeringspecial-iststoaidtruckcustomersinidentifyingfuel-savingtechnolo-gies.InEurope,componentsaretailoredtoEuropeanmarketdynamicsincludingasubstantiallyhigherpenetrationofdiesel-poweredlightvehicles.

Tolearnaboutmorespecificbusinessecomaginationinitiatives,pleasevisitwww.ecomagination.com

AviationGEnxengineGE’squietestlargecommercialengineeverproduced,theGEnxaircraftengineisdemonstratingdramaticgainsinfuelefficiencyandperformancewithsignifi-cantlyloweremissionsthanotherenginesinitsclass.GEnxaircraftenginesprojectedtobesoldinthenext20yearswillemitanestimated77millionfewertonsofgreenhousegasesthanwouldhavebeenproducedbyoldercomparableengines.

GE90-115BTheGE90-115Bistheworld’smostpowerfuljetengine,yetitsfanbladetechnologyhashelpedthisenginemeetsomeofthemoststringentairportnoiserequirementsaroundtheworld.Onaper-poundofthrustbasis,thisengineranksasoneofthequietestandmeetsthenextgenerationofemissionsrequire-mentswithroomtospare.

CFM56-3AdvancedUpgradeTheupgradefortheCFM56-3engineachievesenginecompres-sorefficiencyenhancementsthrougha3-Daerodesignyield-ingbetterfuelefficiencyanddramaticreductionsingreen-housegasemissions.

LM2500+MarineEngineTheLM2500+marinegasturbinesbenefitfromahighlyefficientcombustionprocess,useoflight-weightmaterialsandqualityoffuelused.TheLM2500+weighsupto74%lessthanacomparabledieselengine,occupiesroughlyone-thirdofthespaceandreducesnitrogenoxide,sulfurdioxideandparticulatesby60–90%.


Product highlightsGE’s commitment to investing in ecomagination enables us to introduce new products and evolve existing ones that make smarter use of energy that delivers benefits to customers, the environment and GE.

Re-lamping refrigeration: energy savings for Wal-Mart GEnotonlyworkswithcustomerstoidentifyenergy-savinglightingprojects,italsocollaborateswithendusersonlightingsolutionsfrominitialbrainstormingtocontinuousimprovement,contributingtothesuccessofcustomersandGE.ThisisthecasewithGE’snewLEDsolutionforrefrigerateddisplaylighting,designedforcompatibleretrofittingandnewinstallations,numberingmorethan20customerinstallationsworldwide.Eightofthetop10U.S.supermarketsaretestingorusingtheLEDsolution,withWal-Martbeingthefirstcustomertorollitoutonabroadbasis.

Morethan500ofWal-Mart’sU.S.storeswillbeoutfittingtheirrefrigerateddisplaycaseswithGE’sLEDsolution.Itisoneofthetopenergy-savinginitiativesWal-Martispursuingin2007—amovethatisestimatedtosavetheretailer$2.6millionannually.InstoreswheretheLEDsolutionwillbeputtowork,occupancysensorsandLEDdimmingcapabilitieswillreducetheamountoftimedisplaycasesareatfulllightinglevels—toabout15hoursadayinsteadof24.Theretrofitisexpectedtonetaround65%inenergysavings,ortheequivalentofreducingCO2emissionsbyabout35millionpoundsayear.

Wal-MarthasdecidedtoaimsubsequentphasesoftheLEDinitiativeatretrofittingexistingrefrigerateddisplaycasesatmanyofitsnearly6,700storesaroundtheworld.Overtime,theretailerhopestohaveallitsrefrigerateddisplaycaselightingusingenergy-efficientLEDs.Theretrofitrepresentsthekindofcommit-mentWal-Martismakingtobebothanefficientandprofitablebusiness,aswellasagoodstewardoftheenvironment.


InKazakhstan,recordamountsofgoodsandmaterialstravelbyrail,drivenbystrongdemandfortransitintermodaltrafficandpetroleumproductsacceleratingthedemandfornew,moremoderntrains.Toassistinmeetingthisneed,GEteamedwithKazakhstanTemirZholy(KTZ),thecountry’snationalrailwaycompany,ontheconstructionofanewlocomotiveassemblyplantnearthecityofParlodartobuildnewEvolutionSerieslocomotives.Therelationshipisbasedonmorethan10yearsofcollaborationonvariouslocomo-tivemodernizationinitiatives.

TheKazakhstanEvolutionlocomotivemodeltobebuiltwillbepoweredbyGE’s12-cylinderGEVOengineandspecificallydesignedforoperationinKazakhstanandtheentireCommonwealthofIndependentStates(CIS)region.ConstructionwilloccurintheUnitedStatesandKazakhstaninphasesover

severalyears.In2008,GEwillmanufactureandship10locomo-tives.From2008through2012,productionanddeliveryofkeycomponentsfor300additionallocomotiveswilloccur,withfinalassemblytakingplaceattheKazakhstanfactory.Whencom-plete,thefactorywillbeabletoproducebetween100and150GEEvolutionSerieslocomotiveseachyear.

TheinvestmentispositioningKazakhstanasaleaderintheregioninrailroadtechnology,inlargepartbyincorporatingtech-nologythatwillbesuperiortoanylocomotivecurrentlyoperatingregionallyandthemostenviron-mentallysound.“WelookforwardtothedaywhennewGEEvolutionSerieslocomotivesbeginoperationinKazakhstan,”saysKTZPresidentDr.ErlanAtamkulov.“BecausethatwillmarkthetimewhenKTZ’sfleetbecomesthegoldstandardoflocomotivetechnologyintheCIS.”

Driving growth: Evolution Series locomotives in Kazakhstan

Greening the games: Beijing 2008 Olympic GamesThroughitsglobalsponsorshipoftheInternationalOlympicCommittee,GEisuniquelypositionedtoserveasacrediblepartnertohelptheOlympicMovementplanforandachieveitslong-termsustainabilityand“GreenGames”goals.GEiscommittedtoworkingwiththegovernments,organizingcommitteesandprivate-sectorentitiesthatbuildthemassiveinfrastructureneededtosupporttheworld’slargestsportingeventeverytwoyears.GEisapplyingitsvastenvironmentalresources,businessexpertise,andtechnologytocreatesolu-tionstoaddresspressingenvironmentalchallengesfacedbyhostcitiesandcountries,andhelpensurethattheOlympicGames’environmentallegacyisapositiveone.

FortheBeijing2008OlympicGames,GEiscontributinginmanywaystotheBeijingOrganizingCommittee’s(BOCOG)goalofstaginganenvironmentallysoundGameswithcutting-edgeenergy,lightingandwatertreatmenttechnology.GEissupplyingnaturalgascombined-cycleturbinesthatwilldeliverpower,heatingandcoolingtotheOlympicCentralArea;providingsolar-poweredLEDlightingfixturesandsolarlighting;andimprovingthecity’swastewatertreatmentcapa-bilitieswithatechnologicallyadvancedmembranesystemthatwillfiltermorethan80,000cubicmetersofwastewaterdailytoberecycledinsupportofOlympiclandscaping.

Insupportingthe“greening”oftheVancouver2010OlympicWinterGames,GEhasengageditsecomaginationteamwiththecityofVancouveranddevelopersoftheAthlete’sVillageinFalseCreektoexploreopportunitieswithregardtosustainability.GE’sWater&ProcessTechnologiesbusiness,inpartnershipwithEpcor,hasbeenawardedacontracttoimplementitsZeeWeedmembranesystemattheNordicwaterandwastewatertreatmentplant.Tohelpkeepenergycostslow,

maintainareliablesupplyandaddresstheissueofenergysecu-rity,manycountriesaroundtheworldwillcontinuetomakeextensiveuseoffossilfuels—suchascoal—fortheirpowergenerationneeds.Usingadvancedtechnology,thiscanbedoneinamuchcleanermanner.Hydrogenpowerprojectscancreatehydrogenfromfossilfuelstoproducepowerwhilecaptur-ingandsequesteringthecarbondioxideindeepgeologicalforma-tions;however,therearealmostnocommercialapplicationsofthistechnologytoday.GEandBPhaveformedaglobalalliancetoadvancegasification,powergenerationandcarboncaptureandsequestrationtechnologiesforsuchapplications.Initially,thecompaniesexpecttoworktogetheronthedevelopmentoffivehydrogenpowerplantsusingpetroleumcokeandbituminouscoalfeedstockswithverylowcarbonemissions.Thisinitiativewilldemonstratethatour

companies’leading-edgetech-nologiescanmakelow-carbonpowerproductionfromfuelsuchascoalefficient,reliable,andeconomicalforcommercialapplications.Thesetechnologiescombinedwithourfinancialstrengthandpolicysupportfromgovernments,willensureithappensnow,changingthewayweenvisionourglobalenergyfuture.Theannualcarbondioxideemissionssavedbyjustoneoftheseplants,designedtopro-duce500MWofpowerwith90%carboncaptureandgeologicalstorage,wouldbetheequivalentofcarbonsavedbytaking615,000carsofftheroadintheU.S.foroneyearorthequantityremovedfromtheatmosphereby1,451squaremilesoftreesinoneyear.Iftheannualcarboncapturedperplantwasusedforenhancedoilrecovery,itcouldincreasetheannualrecoveryofoilfromanoilfieldbysomethingintheorderof6.5millionbar-rels—equivalenttonearlyadayofcurrentU.S.oilproduction.

Partnering on power solutions: GE and BP

Cleaning up: PulsePleat Pleated Filter technologyGE’sPulsePleatpleatedfilterelementscapturefinedustinvariousmanufacturingprocessesandpreventthereleaseofair-pollutingemissions.Thetechnologyprovidesadvantagestomanufacturersinthatitrequireslessenergytooperate,resultinginlowerenergycostsandimprovedparticulatemat-terrecycling,whichreducesmaterialscosts.Asmanufactur-ersfaceincreasedproductiondemandsandloweremissionslimits,manyareseekingsolutionsthatprovidebetterperfor-manceovermanyoftoday’soptions.

PulsePleatpleatedfilterelementswereembracedbyCementosCatatumboC.A.,ahigh-qualityportlandcementproducerlocatednearMaracaibo,VenezuelathatservesthedomesticmarketaswellasmarketsintheUnitedStates,theCaribbeanandAfrica.Tocontrolpackagingprocessemissionsgeneratedduringthebaggingprocess,thecompanydecidedtoupgradetwoofitspackingareabaghousestopulse-jetstylecleaningunitsfittedwithGE’sPulsePleatpleatedfilterelements.ByemployingPulsePleattechnology,CementosCatatumbohasbeenabletoeliminatehighdustemissionsandreduceenergyconsumption.Italsohasbeenabletocutmaintenancecostsanddowntime,improvingoverallplantproductivity.

A new approach to GHG sequestration: Gas re-injectionTheoilandgasindustryisbecomingmoreattunedtofindingwaystoreducegreenhousegas(GHG)emissionssuchasCO2aswellasSO2emissionsduringexplorationandproduction.Today,GHGsareusuallyflaredandventedintotheatmosphere,asthisistheeasiest,mostconvenientwayforgasdrillerstodisposeofGHGs.

GE’sBCL304seriesCentrifugalCompressorpreventstheseGHGsfrombeingreleasedintotheatmospherethroughre-injectionintosuitablegeologicalformations,orintothesamewellsfromwhichoilisusuallyextracted.Thispreventsharm-fulgasesfrombeingventedand,insomecases,stimulatesincreasedoilproductionfromexistingwells.TheBCL304seriesCentrifugalCompressornotonlyhasthecapacitytopreventCO2frombeingreleasedintotheatmosphere,butitalsosignificantlycontributestoGHGsequestrationbyelimi-natingtheproductionofelementalsulfur.

GE’scompressorwillbeusedattheKashaganoilfieldoftheNorthCaspianSea,offthecoastofKazakhstan,oneofthelargestfieldstobediscoveredinthelast30years.Inordertomeetthedemandingenvironmentalandsafetystandardsestablishedtoprotecttheecologyoftheregion,GEdesignedandtestedthesetupforzeroleakageofsourgas.Theresultsprovedtobeoutstanding,whilealsomeetingrequiredcus-tomerspecifications.

Economicandregulatoryrequire-mentsareplacinggreaterpressureonutilitiestooperategasturbineswithloweremissions.InnorthernItaly,growingdemandsformoreenergyledItalianpublicutilityAEMtoaddGE’snewDLN2.6+combustionsystemtooneofthecompany’splantstoincreaseenergyoutputandloweremissionlevelstomeetnewstandards.TheGEdesignedDLNsystemwasdesignedtosignificantlyreducenitrogenemissionstoensuretheutilitiescanmeetever-stringentregulatoryrequirements.

Morethanayearintoproduc-tionatAEM,thislatestgenerationcombustionsystemGEhasdem-onstratedextremelylowlevelsofemissions—NOxemissionsaresignificantlylowerandCO2ispracticallyzero.Anequally

impressiveaspectoftheDLN2.6+systemisitscapabilitytomaintainlowemissionlevelsduringoff-peakperiods.Withsuchacapa-bility,AEMisabletoreducefuelconsumption,thusreducingcosts,withoutshuttingdownturbines.Inadditionthesystemcanstartdispatchingpowertomeetcustomerdemandsassoonasenergyneedstoincrease.

InadditiontoprovidinglowerNOxandCOemissions,GE’snew9FADLN2.6+CombustionSystemprovidesimprovedturbineavail-abilityandoperationalflexibility,loweremissionsduringstart-upandshutdown,andoverallreducedcostofoperation.ThisenhancedproductbuildsupondecadesofGEleadershipandexperienceintheareaofcombustiontechnology.

More energy, fewer emissions: New DLN system for power plants

GEhasapplieditsexperiencewithmorethan6,0001.5MWoperatingwindturbinestobringtomarketthe2.5xl,anevolution-aryproductdesignedforhighreliability,maintainabilityandimprovedcapacityfactortomeetthegrowingdemandsofthewindindustry.TheevolveddesignofthenewGE2.5xloffersmanybenefits.Theturbinehasbeendesignedwithadouble-bearing

mainshaftfordrive-trainreliabil-ity,fullpowerconversionforenhancedgridintegrationcapa-bilityandapermanentmagnetgeneratorthatsignificantlyimprovesefficiencyatlowerwindspeeds.Anotherbenefitoftheevolveddesignistheextensionofthemaintenanceintervalfromsixto12months,anadjustmentthathelpsdeliverincreasedannualenergyyield.

Enhancing wind power: GE 2.5xl

Switching to savings: Walgreens’ efficient lighting program Since1968,GEhasworkedwithretailerWalgreensonenergy-savingprograms.WalgreenshasbeenoneofGE’searlyadoptersofenergy-efficienttechnologiesandithassole-specifiedGE’sLEDRefrigeratedDisplayLightingforallnewstorerefrigeratedcases.Inaddition,Walgreensiscurrentlyusinghigh-efficientceilinglightinginits5,600storesacrosstheUnitedStatesandPuertoRico.BydeployingGE’shigh-efficiencyT8linearfluorescentsandbyusingcentralizedlightingcontrolsystems,Walgreensisreducingitsenergyconsumptionby133millionkWhandCO2emissionsby81,000metrictonsannually.ThisremarkableprogramwillbenefittheenvironmentandWalgreensshareholdersalikebyresultinginannualenergysavingsofmorethan$10millionforthecompany.

“ThroughourrelationshipwithGEandtheuseofinnovationinlightingtechnology,wehavebeenabletodeepenourcommitmenttoreducingourcompany’senergyusage.Welookforwardtocontinuingthispartnershipwellintothefuture.”TimSchmid,DivisionalVice-President,ConstructionandFacilitiesmanagementatWalgreens.

Taking flight: The GEnx engineInvestinginnewtechnologiesforaircraftisanongoingcommit-mentbyGEasairlinesfacemorerestrictiveconditionsaroundtheworldandlooktoanexpandedrangeofrequirementstobemet,includingreducednoiseandemissionslevels,greatercapacity,longerrangeandloweropera-tionalcosts.Takingitsfirstflightthisyearandbecomingacom-mercialreality,theGEnxenginestrikesabalancebetweenperfor-manceandcostwhilemakingexponentialimprovementsinnoise,emissionsandfuelefficiency.

TheGEnxenginerepresentsabreakthroughforsustainabilityandecomaginationintheaviationindustry.Itusesstate-of-the-artmaterialtechnology,fromrevolu-tionarycompositefanbladesandcasetomoredurable,highertemperatureturbineblades.ThecombinationoflargerandlighterweightcompositefanbladeswithGE’sTAPS(TwinAnnularPre-swirl)combustortechnologyallowsforweightreductionandcleanerfuelburn.Theimprovedaerodynam-icsdramaticallyreducenoiseandhelpmeetmorestringentnoiserequirementsatairportssuchasHeathrowwhileenablingthe

aircrafttocarrymorefueltoflyfarther.AircraftusingtheGEnxengineareabletoflyupto8,500nauticalmiles—theequivalentofNewYorktoShanghainon-stop.

Theseperformancefeatureshavemadeanimpactinthemarketplace.TheGEnxengineisthefastestsellingwide-bodyengineinGE’shistory,withmorethan800enginessoldtomorethan25customerstodatearoundtheworld.Firstdesignedin2004forthepopularBoeing787,theGEnxenginealsoexclu-sivelypowerstheBoeing747-8.ItalsowasselectedasoneoftwoenginestopowerBoeing’snew-generation787DreamlineraircraftandtheAirbusA350air-craft.TheQantasGroupselectedGEnxasthepowerplantforitsBoeing787Dreamlinerfleetofupto115aircraft.Deliveriesarescheduledtobeginin2008.TheChiefFinancialOfficerofQantas,Mr.PeterGregg,says,“TheGEnxwaschosenbecauseofitssupe-riorperformanceforthetypeofoperationtheQantasGroupaircraftwillperformandfortheenvironmentalbenefitsthatitshalldeliverascomparedtocurrentaircrafttypes.”

Investment in nature: Pakini Nui wind projectGeneratingprofitswhiledrawingonaninexhaustiblenaturalresource,GEbuiltturbinesandGEEnergyFinancialServices’capitalarecapturingthewindthatblowsacrossthemajestic,lava-formedlandscapeofHawaii’sBigIsland.The21MWPakiniNuiWindProjectisatSouthPoint,oneoftheworld’swindiesthabitablelocations.Thewindfarmisproducingelectricalenergyestimatedtobesufficientformorethan10,000homesandishelpingtoavoidmorethan22,000tonsperyearofgreenhousegasemissions.ThewindfarmishelpingtoreducetheBigIsland’sdependencyonimportedfossilfuelbytheequivalentof160,000barrelsofoilperyear.ApolloEnergy,oneofHawaii’spioneerwinddevelopers,createdtheprojectusingGEEnergy’s1.5MWSEwindturbinesandGEEnergyFinancialServices’debtandequityinvestmentsforprojectdevelopment,constructionandoperation.

RevenuesGEhassetanambitioustarget—togrowitsrevenuesfromecomaginationproductsto$20billionby2010.In2006—GE’sfirstfullyearofdeployingecomagination—revenuesgrewfrom$10billionin2005to$12billion,deliveringa20%increaseinrevenue.Twoyearsintothiscommitment,GEhastalliedsignificantprogressthatwilltranslatetotheCompany’sbottomline,reward-inginvestorsasshownhere:

GE’sbusinessspanstheglobe.Wehavepositionedourselvestoinvestanddeliver,andasaresult,weareexperiencinghugegrowthoutsidetheUnitedStates,mostnotablyinemergingmarkets.Thefollowingproductareasareparticularlyillustrativeofoutstandingecomaginationwinsfrom2006:

ENERGY STARGE’scommitmenttotheENERGYSTARprogramfurtherreflectsourbeliefthatgreenisgreen.Total2006revenuesfromGE’sENERGYSTARqualifiedproductsincluded:

ENERGYSTARdishwashers$495million

ENERGYSTARlightingCFLs(CompactFluorescentLights)$128million

ENERGYSTARrefrigerators$845million

ENERGYSTARwashers$184million

ENERGYSTARwaterdispensers$14million

WaterIn2006,GEaddedtechnologiestoitsportfoliothatwillenhancethedesalinationproductsthatGEpreviouslyhadonthemarket.Byaddingpretreatmenttechnologyforreverseosmosistechnology,GEwillbeabletobetterhelpcus-tomersaddresspressingwaterscarcityissues.

EVOLUTION transportationHighlightsaroundtheworldGEsignedacontracttosupply310EvolutionSerieslocomotivestoKazakhstan

WindIn2006,GEannouncedthatithadsurpassed5,000installationsforits1.5MWwindturbine,withrevenuesexceeding$3.4billion,anincreaseofmorethan54%over2005.Theseturbinesareoneofthemostwidelyusedmachinesintheglobalwindpowerindustry.

The1.5MWwindturbinealongwiththenewlydeveloped1.5xlemodelallowsGEtooffertheidealrotordiameterforeverywindclassification.

2009*

1816

2008*

14

2007*20062005

1210

2004

6

2010*

20

ECOMAGINATION REVENUE GROWTH

(In $ billions)

*Forecast

Aviation revenuesTodate,morethan1,065ecomagination-certifiedaircraftengineshavebeensoldwithatotalprojectedordervalueofmorethan$12billion.

Representativewins:

MiddleEast

• ALAFCO12GEnxpowered787satanapproximatevalueof$530million

• Emirates10GEnxpowered747-8freightersatanapproximatevalueof$600million

• Qatar14GE90powered777-300ersandsixGE90powered777-200LRsatanapproxi-matevalueof$750million

AsiaPacific

• Qantas45GEnxpowered787satanapproximatevalueof$1billion

Americas

• Continental10GEnxpowered787satanapproximatevalueof$250million

• Atlas12GEnxpowered747-8freightersatanapproximatevalueof$700million

Africa

• Ethiopian10GEnxpowered787satanapproximatevalueof$330million

China

• ChinaSouthern10GEnxpowered787satanapproximatevalueof$240million

• ChinaEasternAirlines15GEnxpowered787satanapproximatevalueof$370million

Europe

• Lufthansa20GEnxpowered747-8passengeraircraftatanapproximatevalueof$950million


Greening energy investments

GE’s Energy Financial Services, whose investments in renewable energy date back more than 20 years, significantly expanded its team of experienced finance and technical professionals serving this market in 2006. The results were immediate: nearly doubling the portfolio of investments in wind, solar, hydroelectric, geothermal and biomass to $1.75 billion in 2006 with a goal of reaching $3 billion by the end of 2008. The GE unit is also exploring biofuels and energy- efficiency investments, and formed a venture investing team to focus on later-stage emerging energy and water technology companies. Amongtheinvestmenthighlights:

• NegotiatedapartnershipwithAESCorporationtodevelopgreenhousegasemission-reductionprojectsintheUnitedStates.Thepartnershipseekstooffsettheequivalentofanannualproductionvolumeof10millionmetrictons(MMT)ofcarbondioxidegasby2010,primarilythroughmethaneemissionsreductions.

• Financedandacquiredoneoftheworld’slargestsolarpowerplants,the11MWSerpaPowerPlantinPortugal,avoiding30,000tonsayearingreenhousegasemissions.

• MadecommitmentstoprojectequityinvestmentsinwindfarmsinHawaii(21MW),Texas(125MW),Pennsylvania(150MW–2farms),Illinois(132MW–2farms),NewMexico(90MW),California(38MW)andMinnesota(205MW).

• Completedfinancingfor22solarroofsatopschoolsinSanDiego,California.

• Receivedtheexclusiverighttoprovideprojectequityaswellasco-leaddebtfinancingforconstructionofa200MWrun-of-riverhydroelectricprojectinBritishColumbia.

• ProvidedaloanfortwoDelawarelandfillgas-to-energygenerationprojects,bothusingGEEnergy’sJenbachergasenginesconfiguredasgeneratorsets.Theprojectsavoidapproximately40,000tonsayearingreenhousegasemissions.

• ProvidedcapitaltoOceanPowerDelivery,Ltd.fortheworld’sfirstcommercialfacilitythatwillgenerateelectricityfromoffshoreoceanwaves.

26 ge 2006 ecomagination reportFloridaPower&Light(FPL)HorseHollowoutsideAbilene,Texas

TechnicianattheAssemblyHall,Jenbach,Austria(whereallassemblyoftheenginestakesplace)

SerpaPowerPlant,Portugal

Reduce Our Greenhouse Gas Emissions and Improve Energy SavingsTo make ecomagination truly “sustainable” from a business perspective, GE set very real, aggressive targets, one of which is to improve the energy efficiency of Company operations and reduce the Company’s greenhouse gas (GHG) emissions. GE’s plan to achieve this is called 1-30-30.

The“1”reflectsthepercentage(versus2004levels)bywhichGEwillreduceitsabsoluteGHGemissionsworldwideby2012.Thisisamajorgoal,giventhatGHGemissionswouldotherwisehavegrownsubstantiallybaseduponcurrentbusinessgrowthprojections.GEalsocommittedtoreducetheintensityofitsGHGemissions30%by2008andimproveenergyefficiency30%bytheendof2012(alsoversus2004levels).ImprovingenergyefficiencytranslatesintosignificantenergycostsavingsforGE—anotherwayecomaginationisrewardinginvestors.

Bymakingapubliccommitmentandthentrackingtheresults,GEisleadingbyexampleanddemonstratinghowonecompanycanmakeadifference.

JenbacherengineassemblyJenbach,Austria.

CO2 PRODUCTION

(In millions of tons)

A. Original growth estimateB. Baseline emissions

2010*2008*20062004 2012*

1512.312.1 12.3

14.113.2 12.3

15.7

12.312.1

*Forecast

ge 2006 ecomagination report 2928 ge 2006 ecomagination report

Greenhouse gas emissions2006Results:

•GEcutworldwideGHGemissionsfromitsoperationsbyabout4%to10.8MMTin2006comparedtothe2004baseline.Bywayofcomparison,theannualavoidedGHGemissionsfromjustoneofGE’sproducts,itsinstalledbaseofwindturbines,isapproximately18.8MMT.

•GE’sGHGandenergyintensityhavebothbeenreducedby21%and22%respectivelycomparedtothe2004baseline.Inaddition,GEhasreduceditsabsoluteenergyuseby5%comparedto2004.

Thesedata(seechartsbelow)arebasedondetailedinformationfromabout550largeGElocationsaswellasestimatesfromanadditional3,000smallerGElocations.ItalsoincludestheairfleetGEoperatesforitsourownuseaswellasvehiclesleasedbyGEFleetServicesforinternalGEuse.

Futureyearlyresultsmayshowincreasesaswellasdecreasesinemissionsdueto:

•Acquisitionanddivestments.AlthoughthenumberoflargeGElocationsisaboutthesameasin2004,therehasbeenachangeofapproximately15%intheactualsitesmakingupthislist.Weanticipatethatthesitesmakingupourinventorymayundergoanother15%changein2007.EachofthesechangesrequireadjustmentstoGE’s2004baselineemissionsandtheemissionsprofilesofnewlyacquiredlocationsmaydiffersignificantlyfromdivestedsites.

•Buildingofnewmanufacturing,officeandserviceoperationsforwhichtherewillbeno2004baselineadjustments.

•Productionincreasesanddecreases.

Tooffsettheseincreasesby2012,ourstrategyistocontinuetoidentifyandimplementalargevarietyofreductionprojectsincludingenergyconservationmeasures,useoflowcarbonenergysupply(includingrenewables)andapplicationofGEtechnologiestoouroperations.

MoreinformationonthedetailsofGE’sGHGinventory,includingmethodology,QualityControl/QualityAssuranceprocess,verificationofourbaselineGHGinventoryandtheextenttowhichGEfollowstheWorldResourcesInstitute(WRI)/WorldBusinessCouncilforSustainableDevelopment(WBCSD)GHGProtocolcanbefoundatwww.ge.com/en/citizenship/features/greenhouse.htm.

GEenergyfinancialinvestmentsInadditiontoreportingGHGemissionsfromitsoperations,GEisreportingtheGHGemissionsassociatedwithitsequityinvest-mentsinpowerplantsthroughGEEnergyFinancialServices.

WearereportingtheseemissionsbaseduponGEEnergyFinancialServicesbusiness’percentageofequityownership,evenifGEdoesnotcontrolthepowerplant’selectricityoutput.Forexample,ifthatbusinessunit’sequityinterestis100%,alloftheGHGemissionsfromthatpowerplantareattributedtoGE.IfGEEnergyFinancialServicesbusiness’equityinterestis20%,thatisthepercentageofGHGemissionsattributedtoGE.Calculatedonthisbasis,GHGemissionsareapproximately10.94MMTfrom27equityinvestments.

AswithGE’scommitmentsonGHGemissionsfromitsopera-tions,GEisalsoundertakingseveralinitiativesarounditsequityinvestmentsinenergy,suchas:

•DemonstratingleadershipbybecomingoneofthefirstfinancialservicescompanyintheworldtoreportGHGemissionsassoci-atedwithpowerplantequityinvestments.

•WorkingwithWRIandotherorganizationsinthissectortodevelopaGHGAccountingProtocoldesignedtocoverthefullrangeoffinancialinstrumentsusedinthefinancialservicesindustry.

•ParticipatinginUSCAP,advocatingforU.S.legislationsettingmandatoryGHGreductiongoalsandforacap-and-trademech-anism,whichwouldimpactGE’sownpowerplantinvestments.

•Helpingtostimulatethegrowthofrenewableenergythroughanaggressiveinvestmentstrategy.GEhasgrownitsassetsinthisareafrom$630millionin2004tomorethan$2billiontoday(including13equityinvestments)withagoalof$3billionbytheendof2008.

•ElectricityfromEnergyFinancialServicescurrentequityportfo-lioofrenewableassetswillavoid[4.4millionshorttonsofCO2peryear(3.9MMT)].Thisisbasedonactual2006generationforoperatingprojectsandlikely(P50,i.e.equalchanceitwillbehigherorlower)generationforthosethatarenotfullyopera-tionalyet.

•Byincorporatinganassumedfuturecostofcarbontohelpguideitsinvestmentdesision-making.

•LeadingU.S.carbonmarketdevelopmentthroughitsrecentlyannouncedpartnershipwithAESCorp.tofinancecarbonreductionprojectswithagoalofoffsetting10MMTofGHGsby2010.

2005

11.2511.26

2004 2006

10.83

GE OPERATIONAL GHG EMISSIONS

(Million metric tons of CO2 equivalent emissions)

2005

107.71108.00

2004 2006

102.93

GE OPERATIONAL ENERGY USE

(Million MMBtu)

GE OPERATIONAL ENERGY INTENSITY

(MMBtu per $ million revenue)

2005

728.00804.21

2004 2006

629.96

2005

76.0583.39

2004 2006

66.31

GE OPERATIONAL GHG INTENSITY

(Metric tons per $ million revenue)


Achieving big savingsEachoneofGE’sbusinesseswithsignificantGHGemissionshasdevelopeda1-30-30strategicplantomeetGE’sgoalsofreducingtheCompany’sGHGemissions.TheCompanyhasalsodevelopedaspecializeddatabasefortrackingprojectsandsharinglearnings.Todate,GEhasidentifiedopportunitiesformorethan1MMTofCO2reductionsandhasexecutedonprojectswithmorethan300,000-metrictons(MT)ofreductionsand$70millioninenergysavings.Someoftheseexamplesinclude:

Re-lampingGEfacilitiesInour2005ecomaginationreport,GEcommittedtore-lampingmanufacturingfacilitieswithinourIndustrialbusinessestodemonstrateourcommitmenttousingourownenergy-efficienttechnology.Sobeganatwo-yearplantoretrofitlightingat84ofGE’sindustrialmanufacturingplantsandwarehousesworldwide.Wehavere-lamped62of84manufacturingplantswithinourIndustrialdivisionwithnewenergy-efficientGET8andT5fluores-centlamps,driving62,000MTofGHGreductionannuallyand82.5millionkilowatthoursofelectricityuse.Thesesiteshavealsogeneratedanestimatedtotalannualsavingsof$5.3million.Thisenergyusereductionisroughlytheequivalenttoremovingnearly12,000carsofftheroad.

EnergyTreasureHuntsGEhasmadewidespreaduseofthe“treasurehunt”processdevel-opedbyToyotatoidentifyenergysavingsandGHGreductionsat181GEgloballocations.Morethan5,400projectsidentified648,000MTofGHGopportunityandapotential5,800,000MMBTUinenergysavings.Ofthispotential,nearly250,000MTofCO2reductionhasbeenrealizedorisfundedforimplementationduring2007.Mostimportant,thisprocesshasengagedmorethan2,600ofGE’semployeesandidentifiednumerousprojectsthatwillimpactGE’sglobalGHGfootprint.

SolarPanelInstallationsGEhasalsocommittedtocompletingseveralveryvisibleprojectsusingourowntechnology.InMay2007,GE’sheadquartersinFairfield,Connecticut,beganusingGE’sownsolarpanelstogenerateelectricity.Inadditiontoleveragingagainstenergycostincrease,thisprocessdemonstratesthatrenewabletechnologyisagreathedgeintheenergymarket.Fiveadditionallocationswillbeinstallingsolarpanels,targetingatotalof20sitesbytheendof2007—anexcitingdemonstrationofusingourowntechnology.

UsingGEResearch&TechnologyCapabilitiesGEhasbeenleveragingtheexperienceofourGlobalResearchCenterstoworkwithourbusinessesonreductionprojects,includingeliminating50,000CO2equivalenttonsofSF6(apotentgreenhousegas)atoneofourfacilitiesandworkingwithourchemicalplantstoperformstudiesidentifyingmorethan100,000additionaltonsinCO2reductionopportunities.

eCO2SiteCertificationProgramGEbelievesinrewardinghardwork.Akeypartofrewardingthenumeroussitesandfacilitiesthathaveembracedecomaginationand1-30-30,isourrewardandrecognitionprogram.GErecognized25facilitiesgloballyforbeatingthe1%reductionrequirementanddemonstratinga5%year-over-yearreductioninGHGemissionsduring2005.Inaddition,wealsorecognizedsixteamsthatwerethe“best-of-the-best”indevelopingthemosteffective,innovativeandcreativesolutionstomeetingour1-30-30goals.Thesebest-in-classteamswereawardedagrantforuseinspreadingtheecomaginationmessagebeyondGE’swalls,andintothebroadercommunity.

Solarpanelinstallation,GEEnergyGreenville,SouthCarolina


Keep the Public InformedTo optimize the potential of our ecomagination business strategy, GE is engaging the public and our customers in a free exchange of information, ideas, comments and constructive criticism. When we engage diverse stakeholders we’re better able to understand our mutual challenges and identify opportunities for improvement. This past year, ecomagination expanded globally as GE increased its engagement with customers and governments around the world, including the launch of ecomagination in China and Australia. GE believes in seeking opportunities wherever they present themselves in the world and doing so in a socially responsible way.

AspartofGE’soverallcorporateefforttoimprovetransparency,theCompanyissuesthisannualecomaginationreporttotrackenvironmentalgoalsaswellasaseparatecitizenshipreporttohighlightsocialresponsibilityendeavors.

ExternalmeasurementsareanimportantindicatorofGE’sprogress.Inthepastfewyears,GEhasbeenselectedforseveralcredible,sociallyresponsibleinvestment(SRI)indices,includingtheDowJonesSustainabilityIndex(DJSI),KLDGlobalClimate100IndexandInnovestGlobal100“MostSustainableCorporationsintheWorld”index.TheDJSIhaslongbeenabenchmarkforsociallyresponsibleinvestorstoidentifycompaniesthathavemadeout-standingcontributionstocitizenshipefforts.TheKLDandInnovestratingsweredesignedtopromoteinvestmentincompanieswiththestrongestsustainabilityperformanceandwhoseactivitiesdemonstratethegreatestpotentialformitigatingthecausesofclimatechange.

JeffImmeltwithJonathanLashattheUSCAPannouncementpressconference


The engagement processToensureecomaginationresearch,innovationandcustomerdemandsaremet,JeffImmeltappointedLorraineBolsingerasvicepresidentofecomagination.Ms.BolsingermanagestheentireprogramacrossGE,unitingmarketingandsalesandaligningthemwiththeCompany’senvironment,healthandsafetyprogramstomeetthegoalsoftheinitiativeandtheCompany.Inthisrole,Lorraineisresponsibleforextendingrelationshipswithstrategiccustomersbyexpandingpartnershipprogramsfocusedonnewtechnology,enterprisesellingandpromotion;workswithGE’sGlobalResearchorganizationtoassessadvancedtechnologyproj-ectsforcommercializationopportunities;andcoordinateswithGE’snetworkofseniorcountryexecutivestodevelopecomaginationplatformstailoredtomeettheircountries’uniqueneeds.ShealsospearheadsGE’scommitmenttokeepthepublicengagedbyliais-ingwithcustomers,governmentofficialsandnon-governmentalorganizationsaroundtheworld.

Inadditiontothisoutreach,GEusesseveralvehiclestoengagethepublic,includingourWebsite,specialengagementsandcon-ferences,andstakeholderevents.

Global EventsChinaInMay2006,GElaunchedecomaginationinChina,nearly100yearssinceGEfirstbeganworkinginthecountry.Attheday’sevent,VicePremierZengPeiyanexpressedhisappreciationforthelaunchofecomagination,notingthattheinitiativeisinlinewiththegoalofChina’snationaldrivetobuildaresource-savingandenvironmentallyfriendlysociety.

TheoccasionmarkedtheagreementofChinaandGEtoworktogetherusingChineseenterprisesandresearchinstitutionstoexplorenewenvironmentalprotectionandenergy-efficienttech-nologiesthatarewellsuitedfortheneedsoftheChinesepeople.EcomaginationinChinaisbeingfosteredinanenvironmentofsomeofGE’sfinestresearchcapabilitiesinthecountry,someoftheCompany’smostcreativeanddedicatedemployees,andcus-tomerswhowillbenefitfromthestrengthandpromiseofboth.

AustraliaGElaunchedecomaginationinAustraliainSeptemberof2006.GEhashadbusinessrelationswithAustraliasince1902,andbelievesinworkingwiththecountrytodiscoveranddevelopsolutionstogrowingenvironmentalchallengesinAustraliaandaroundtheworld.Withthisobjectiveinmind,GEViceCharimanandPresidentandCEOofGEInfrastructureJohnRicemetwithAustralianleadersonthedayoftheecomaginationlaunchtodiscusstheuniquechallengesthatAustraliafacesinsecuringadequateenergyandwaterreservesinaresource-constrainedworld.Futureeffortswillcontinuetofocusontheseissues.

UnitedStatesClimateActionPartnership(USCAP)InJune2005,theU.S.NationalAcademyofSciencesjoinedwiththescientificacademiesof10othercountriesinstating:“thescientificunderstandingofclimatechangeisnowsufficientlycleartojustifynationstakingpromptactions.”

GEbelievesthateachyearwedelayactiontocontrolemissionsincreasestheriskofunavoidableconsequencesthatcouldnecessitateevensteeperreductionsinthefuture,atpotentiallygreatereconomiccostandsocialdisruption.Actionsoonerratherthanlaterpreservesvaluableresponseoptions,narrowstheuncertaintiesassociatedwithchangestotheclimate,andshouldlowerthecostsofmitigationandadaptation.

ThispastyearGEjoinedtheUnitedStatesClimateActionPartnership(USCAP),adiversegroupofbusinessandleadingenvi-ronmentalorganizations,topromoteeffective,economicallysustainableclimatechange.Thegroupisunderscoringtheneedforapolicyframeworkonclimatechangeandiscallingfornationallegislationtosignificantlyreducegreenhousegasemissionsovertheshortesttimereasonablypossible.

USCAPurgespolicymakerstoenactapolicyframeworkformandatoryreductionsofGHGemissionsfrommajoremittingsectors,includinglargestationarysourcesandtransportation,andenergyuseincommercialandresidentialbuildings.Thecorner-stoneofthisapproachwouldbeacap-and-tradeprogram.TheenvironmentalgoalistoreduceglobalatmosphericGHGconcen-trationstoalevelthatminimizeslarge-scaleadverseimpactstohumansandthenaturalenvironment.ThegrouprecommendsthattheU.S.Congressprovideleadershipandestablishshort-andmid-termemissionreductiontargets;anationalprogramtoacceleratetechnologyresearch,developmentanddeployment;andapproachestoencourageactionbyothercountries,includingthoseinthedevelopingworld,asultimatelythesolutionmustbeglobal.

Throughdialogueandayear-longcollaboration,thegrouphasproducedasetofprinciplesandasolutions-based“CallforAction”reportthatlaysoutablueprintforamandatoryeconomy-wide,market-drivenapproachtoclimateprotection.ThemembersofUSCAPpledgetoworkwiththeU.S.President,theU.S.Congressandotherstakeholderstoconfrontthisvitalglobalchallenge.

EcomaginationAdvisoryCouncilOneofthewaysthatGEincreasesitsengagementwiththepublicisthroughtheEcomaginationAdvisoryCouncil.Thecounciliscomprisedofaboardofsixtoeightindustrythoughtleaderswithexpertiseinenergyandtheenvironment.Currentmembersofthecouncilinclude:

•JamesCameron,ClimateChangeCapital•EileenClaussen,PewCenteronGlobalClimateChange•KarendeSegundo,Consultant•VinodKhosla,KhoslaVentures•JonathanLash,WorldResourcesInstitute•RichardMacrory,UniversityCollegeLondon•BillMcDonough,WilliamMcDonough+Partners•ErnestMoniz,MassachusettsInstituteofTechnology•DanReicher,GoogleCorporation

GEAwardedENERGYSTARPartneroftheYearInadditiontoourlargeB-2-Bcustomers,consumersareanimpor-tantaudienceforecomagination.Asinterestandconcernfortheenvironmentgrows,consumerswanttoknowhowtheycanmakeapositiveimpactthroughtheireverydayactions.GE’sproductsthatarequalifiedasENERGYSTARcreatevisibilityforthecausewhilealsoprovidingconsumerswitharesponsiblepurchasingoption.GEhasbeencommittedtomeetingENERGYSTARqualifica-tionforasmanyofitsConsumer&Industrialproductsaspossible.From2002to2006,GEinvestedmorethan$405milliontodevelopandbringtomarkethigh-efficiencyapplianceproducts.In2006alone,GEinvestedmorethan$55millioninENERGYSTARqualifiedapplianceproducts—up31%over2005.

Inrecognitionofthiscommitment,theU.S.DepartmentofEnergyandtheU.S.EnvironmentalProtectionAgencyawardedGEConsumer&IndustrialtheENERGYSTAR2007PartneroftheYearSustainedExcellenceawardforthesecondyearinarow.TheawardrecognizesGE’sachievementincreatinghigh-performancehouseholdapplianceandlightingproductsthathelpreduceenergyspendingandprotecttheenvironment.

GEhasaggressivelysupportedtheENERGYSTARprogramthroughbroadconsumerandcustomereducationandhasparticipatedinnationalandregionaleventspromotingENERGYSTARqualifiedproductstoconsumers,customersandhomebuild-ers.Forexample,GEworkscloselywithmajorretailerstodriveawarenessofEnergySmartbulbsthroughbroadconsumerandcustomeroutreachcampaigns,andisanavidsupporteroftheENERGYSTAR“ChangeaLight,ChangetheWorld”campaign.Today,morethan50%ofallGEapplianceproductsareENERGYSTARqualified,includingnearly520appliancesandmorethan65lightingproducts.

ThecouncilmeetsatleastonceayearatGE’sGlobalResearchCenterinNewYorkandfocusesongivingGEguidanceonitstechnologyresearchandinvestments.Councilmembersareaskedtoparticipateinquarterlyconferencecalls,providenewideasonecomagination,helpgenerateorreviewwhitepapersfordistri-butiontokeystakeholdersandparticipateinGE-sponsoredeventsandotherforumsthatengagethepublic.

EcomaginationWebsiteTheGEecomaginationWebsiteprovidesaforumforthelatestinformationonecomaginationprogress,advertisingandproducts.TherevitalizedsitenowfeaturesshortproductfilmsfromaroundtheworldandinterviewswithGEcustomersandemployees.Thesiteisavailableinmultiplelanguages,andvisitorscanlearnmoreaboutmorethan45products.Todate,thededicatedecomaginationWebsitehasrecordedmorethan1.3millionuniquevisitors.

PublicawarenessGE’scommitmenttokeepingthepublicinformedisreinforcedthroughitsadvertisinganddigitalefforts.Theecomaginationcam-paignsprovideawarenessforbusinessexecutivesandconsumersontheplatformwhilealsoeducatingthemaboutGEproductsandservices.InJanuary2007,GElauncheditslatestroundofecomaginationtelevision,printandonlineadvertisingthatfocusedonwindandsolarenergy,waterdesalinationandcleanercoaltechnology.ThenewcampaigngarnerednumerousawardsandpositivereviewsfromAdAge,TheChicagoSun-Times,AdWeekandIAGResearch.

ThemtvUGEecomaginationChallengeGEbelievesimaginativeideascomefromallsources,includingfromcollegestudents.Tosparkcreativityandinnovationamongyoungpeople,GEjoinedwithmtvU,MTV’s24-hourcollegenetworkinSeptember2006tohostthemtvUGEecomaginationChallenge.CollegestudentsacrosstheUnitedStateswerechallengedtosub-mitgroundbreakingideasforprojectsthatwouldmaketheirschoolsmoreenvironmentallyresponsible.

AfterGEandmtvUannouncedthetop10finalists,studentscastthedecidingvotefortheprojecttheyfelthadthegreatestpotentialenvironmentalimpact.ThewinnerwasMITanditsteam,Biodiesel@MIT,whichproposedconstructionandmanagementofacampusbiodieselsystemtoconvertwastevegetableoilfromdininglocationstoacertifiedbiodieselthatwillbeusedtopowertransportationoncampus.Asthewinner,MITreceiveda$25,000granttohelpbringitsbiodieselproposaltolifeaswellasanAngels&AirwavesEarthDayconcert.

Inasurveyconductedafterthechallenge,awarenessofGEasanenvironmentallyconsciousbrandroseby64%.

“Partners like GE are outstanding leaders in protecting our environment through energy efficiency…. As one of the 2007 ENERGY STAR Sustained Excellence winners, GE has taken energy efficiency to new heights year after year and we all benefit.” BillWehrumActingAssistantAdministratorforEPA’sOfficeofAirandRadiation


GE at a glanceGEisanintegratedcompanyorganizedintosixbusinesses:

GE Industrial GEIndustrialprovidesabroadrangeofproductsandservicesthroughouttheworld,includingappliances,lightingandindustrialproducts;factoryauto-mationsystems;plastics,andsensorstechnology;non-destructivetestingandequipmentfinancing;andmanagementandassetintelligenceservices.

GE Healthcare GEHealthcare’sexpertiseinmedicalimagingandinformationtechnologies,medicaldiagnostics,patientmonitoringsystems,diseaseresearch,drugdiscoveryandbiopharmaceuticalmanufacturingtechnologiesisdedicatedtopredictinganddetectingdiseaseearlier,monitoringitsprogressandinformingphysicians,helpingthemtotailorindividualtreatmentforindividualpatients.

GE’sannouncedacquisitionofAbbott’sinvitrodiagnosticsandpoint-of-carediagnosticsbusinessesfor$8.1billionwillcomplementGEHealthcare’sexistingleadershippositioninvivoimagingsystemssuchasX-ray,CT,ultra-soundandMR,andacceleratetheshiftingcarecontinuumtoward“EarlyHealth.”

GE Infrastructure GEInfrastructureisoneoftheworld’sleadingprovidersofessentialtechnol-ogiestodeveloped,developingandemergingcountries.Throughproductsandservicesinaviation,energy,oilandgas,transportationandwaterandprocesstechnologies,GEishelpingtodeveloptheinfrastructureofcountriesallovertheworld.GEInfrastructureprovidesaviationfinancingaswellasenergyandwaterinvesting,lendingandleasing.

NBC Universal NBCUniversalisoneoftheworld’sleadingmediaandentertainmentcompaniesinthedevelopment,productionandmarketingofentertainment,newsandinformationtoaglobalaudience.FormedinMay2004throughthecombiningofNBCandVivendiUniversalEntertainment,NBCUniversalownsandoperatesavaluableportfolioofnewsandentertainmentnetworks,apremiermotionpicturecompany,significanttelevisionproductionoperations,aleadingtelevisionstationsgroupandworld-renownedthemeparks.NBCUniversalis80%ownedbyGeneralElectricand20%ownedbyVivendi.

GE Commercial Finance GECommercialFinance,oneofGE’slargestgrowthengines,offersanarrayofservicesandproductsaimedatenablingbusinessesworldwidetogrow.GECommercialFinanceplaysakeyroleforclientbusinessesinmorethan35countriesandindustriessuchashealthcare,manufacturing,fleetmanage-ment,realestate,telecommunicationsandcommunications,construction,energy,aviation,infrastructureandequipment.

GE Money GEMoney,formerlyknownasGEConsumerFinance,isaleadingproviderofbankingandcreditservicestoconsumers,retailers,autodealersandmortgagelendersinapproximately50countriesaroundtheworld.GEMoneyoffersabroadrangeoffinancialproductsandisatrulyglobalcompany,withapproxi-mately75%ofitsnetincomegeneratedoutsidetheUnitedStatesandwithglobaloperations.

Financial highlightsThroughouttheeconomiccycles,GE’slong-termfinancialgoalsare:organicrevenuegrowthof2-3XGDP;greaterthan10%annualearningsgrowth;operatingcashflowexceedingearningsgrowth;andareturnonaveragetotalcapitalof20%.

• Continuingrevenuesincreased10%to$163.4billion.Organicrevenuegrowthwas9%.

• Earningsfromcontinuingoperationsgrew11%to$20.7billion.Earningsinfourofsixbusinessesgrewbymorethan10%.Industrialoperatingprofitexpanded40basispointsto15.2%.

• Cashflowfromoperatingactivities(CFOA)was$24.6billion,up14%.Industrialcashflowgrew7%.Returnonaveragetotalcapital(ROTC)was18.4%,up180basispointsfrom2005.

DesignbyVSAPartners,Inc.PrintedbyActiveGraphics,Inc.,aForestStewardshipCouncil(FSC)certifiedprinter.

ThisreportisprintedonFSC-certifiedMohawkOptions100%PCWmanufacturedentirelywithwindenergyandcontains100%post-consumerrecycledfiber.ThispaperiscertifiedbyGreenSealandbySmartWoodforFSCstandardsthatpro-moteenvironmentallyappropriate,sociallybeneficialandeconomicallyviablemanagementoftheworld’sforests.

GE CUMULATIVE CASH FLOWS

(In $ billions)

A. Cash flows from operating activitiesB. Dividends paidC. Shares repurchased ($)

2005

60

2004

38

2003

23

2002

10

2006

84

A

B

C

DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGES

(In dollars)

2005

1.76

2004

1.59

2003

1.40

2002

1.46

2006

1.99

CONSOLIDATED REVENUES

(In $ billions)

2005

148

2004

134

2003

113

2002

112

2006

163

Where we’ve come from, where we need to go:AMessagefromEileenClaussen

WhenGEannouncedin2005thatitplannedtodevelopalineofproductstohelpcombatclimatechangeandotherpressingenvironmentalproblems,Icalledit“thebiggestandmostambitiousclimatestrategyincorporateAmerica.”Anditwas.Ameretwoyearslater,theideahasemergedintothemainstream.CompanieslikeWal-Mart,BankofAmerica,PG&EandWeyerhaeuser,tonamejustafew,havealsomadesignificantneweffortstoimprovetheirproductsandoperationstobenefittheenvironment.Long-timeleadershavealsorecentlyannouncedmajorjointinitiatives,suchastheBP-DuPontcollaborationonthedevelopmentofrevolutionarybiofuels.Byconventionalmeasures—profits,sales,publicity—ecomaginationhasbeenextraordinarilysuccessful.Butinmymind,therealsuccessofecomaginationshouldbemeasurednotindollarsigns,butbythechangeithasledinthewidercorporateworld.

Still,muchmoreneedstobedone.Thechallengeisgreatandtimeisshort—whatweneedisnothinglessthananeconomy-wideglobalshifttolow-andno-carbontechnologies.Whileagrowinghandfuloftheworld’stopcompaniesarepullingusintherightdirection,policyincentivesmustbeputinplacethatpushtherestofthebusinessworldtocatchup.GEunderstandsthatthroughtheuseofmarket-basedpolicies,wecansparkthetransitiontoalow-carboneconomythatwillbegoodforthecompany,goodfortheeconomyandgoodfortheplanet.

GEjoinedtheU.S.ClimateActionPartnership(USCAP)withthisunderstandinginmind.USCAPisanunprecedentedCEO-levelcollaborationofovertwodozenmajorcorporationsandnongov-ernmentalorganizations,includingthePewCenter,thatiscallingontheU.S.Congresstopasslegislationestablishingamandatory,economy-wideclimatepolicyattheearliestpossibledate.GEandtherestofthecompaniesinUSCAPunderstandthatthemostimportantdriverfortechnologicalchangeisastrongpricesignal.Acap-and-tradesystemregulatinggreenhousegasemissionsisthemostpracticalwaytocreatethissignal,combinedwithsector-specificpoliciestostimulatetechnologicalinnovationincoal-basedenergy,buildingsandtransportation.

ThevastmajorityofcorporationsthePewCenterpolledforourrecentreport,“CorporateStrategiesThatAddressClimateChange,”believegreenhousegasregulationsarecoming—abeliefmotivat-ingthemtodevelopnewlow-carbonproductsandservices.Byfollowingatwo-prongedapproachinvestingintechnologicalinnovationandadvancingpolicysolutions,GEhasdevelopedawellthought-outclimatestrategythatbenefitstheenvironmentaswellasitsshareholders.Withecomagination,GEhaspositioneditselfattheforwardedgeofthisnewbusinessmovement.Withitspolicyleadership,GEisensuringthatthemovementwillcontinuetogrow.

EileenClaussenPresidentPewCenteronGlobalClimateChange


TolearnmoreaboutGE’secomaginationstrategyandgetupdatesonprogressasitrelatestoproducts,servicesandouroverallcommitment,pleasevisitwww.ecomagination.com.

Ifyou’dliketosharethiswithcolleagues,referthemtowww.ecomagination.com/report,wheretheycandownloadthefullreport.

Documents

Delivering on ecomagination · Ecomagination is a business strategy to meet customers’ demands for more energy-efficient, less emissive products and to drive reliable growth for