Creating Shared Value is driving innovation and growth at GE
GE has had a string on successes implementing Creating Shared Value and the following figures demonstrate GE commitment as well as the financial reward for pursuing a shared value strategy under the umbrella of Ecomagination:
- Over $18 billion on revenues were generated by GE’s ecomagination product and services in 2010. GE now predicts that the growth in revenues of ecomagination products will grow at twice the rate of total company revenues between 2011 and 2016.
- In 2010, GE invested $1.8 billion on research and development for ecomagination. In a further demonstration to GE’s commitment to Creating Shared Value a total $10 billion between 2010 and 2015 has been committed to research into ecomagination products.
- GE’s TrueCourse™ Flight Management System, a flight navigation system that allows aircraft to fly a more direct path when landing will reduce annual fuel consumption by over 600,000 gallons. Based on an average fleet of twenty-nine 737 aircrafts, this represents a saving over $1.2 million per year. Shorter flight paths also mean less noise pollution for the people living near airports.
- GE’s RailEdge® Movement Planner is a breakthrough software solution that improves railroad capacity and reliability on the existing rail infrastructure. Movement Planner helps railroads move more freight faster. Efficiency is gained at a fleet-wide level across an entire railroad network by analyzing train schedules, traffic control systems and train movements relative to each other and then coming up with an optimized traffic plan for the trains, even down to the best speed at which to travel to keep the flow going throughout the railroad. Average speeds increase by 10 to 20 percent, or up to four miles per hour — which is substantial since every mile per hour faster a freight train travels may save a railroad up to $200 million a year in capital and expenses.
“Ecomagination is GE’s business strategy to create new value for customers, investors and society by helping to solve energy, efficiency and water challenges. It is our belief that, through a constant commitment to innovation, we can design and deliver great economics as well as great environmental performance.”[i]
[i] GE ecoimagination portfolio, http://www.ecomagination.com/portfolio