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Pictured: Philips solutions for water purification, healthcare, materials recycling (plastics in the vacuum cleaner) and food productivity (horticultural lighting)n Water: Water is essential to all forms of life. Philips' InstantTrust water disinfection solution, optimised for point-of-use water dispensers, heralds the first time water can be disinfected instantly, efficiently and independent of water temperature.n Healthcare: Philips delivers innovations that improve the quality of care, enhance patients' lives and enable the delivery of better outcomes at lower cost. These cover, among other things, prevention, early/better diagnostics, efficiency enhancement, minimally invasive intervention, and shifting care from hospital to the home. ?industry intro 017

POLICY AND FINANCING MEASURESBesides solutions like the ones outlined above, it is imperative that governments create policy frameworks (governing, among other things, public procurement, Total Cost of Ownership, and fiscal incentives) that stimulate clean, smart innovation, as well as adopting more ambitious energy and resource efficiency performance standards. At the same time, governments need to facilitate reform of healthcare systems, in order to make them more accessible and affordable, with greater focus on prevention and home healthcare solutions. It is also vital that we drive the renovation of all existing building stock and other city infrastructure with energy and resource-efficient solutions and approaches. An annual commitment to a 3 per cent energy-efficiency improvement in this area (compared to the current 1 per cent) would lower Europe's required investment in zero-carbon energy infrastructure - renewable energy; nuclear; carbon capture and storage - up to 2050 by a factor of three. Likewise, we would benefit greatly by moving financing mechanisms away from "lowest initial cost" to integral "life-cycle value"-based. This involves developing new business models that balance operating expense and capital expenditure. In this respect, it is important to recognise that when people or projects need financing mechanisms and solutions, there is a budgeting issue that must be addressed too. As we move from lowest initial cost/linear business models to address our medium and longer-term challenges, we have to do the same with our budgeting processes and financial planning. Too often, budgets have a one-year scope, or companies are judged on annual or even quarterly performance. By taking resource efficiency considerations into account when making budgetary projections, we - politicians, businesses, the electorate - will be able to make better choices with real long-term benefits.At Philips, we are designing and testing innovative new business models that can help foster sustainable development. For example, the "Pay per Lux" lighting concept currently being trialed in the Netherlands provides companies with state-of-the-art energy-saving lighting systems without any capital expenditure. It works like this: after installation, we retain ownership and maintenance of the lighting, and in return the customer pays only for the amount of light emitted. This encourages the deployment of energy-efficient solutions and advanced lighting controls. CONCLUSIONWith a forward-looking agenda focused firmly on the greater common good in the long term, and based on a collaborative model that brings together Above: The Sustainable Development Challenge018 industry intro