Philips CEO named top green innovator for pioneering 'pay per lux'

Fortune has named Philips CEO Frans van Houten as one of the world's 25 top ‘eco-innovators’, in recognition of the company’s innovation in LED lighting.

The influential US business magazine pointed to Philips’ leadership role in the LED lighting revolution, in particular its use of ‘pay per lux’ models, whereby customers pay Philips a regular fee to handle their entire lighting service, including design, equipment, installation, maintenance and upgrades.

Fortune said: ‘The idea addresses a flaw in the LED business model: How do you make money when your product lasts 15 years? Plus, Philips can come back and sell customers new, more efficient technology as it comes to market.’

54-year-old van Houten makes number 13 in the magazine’s list, which also includes Nest CEO Tony Fadell and Richard Kaufmann, the New York state government’s green czar.

The metro system in Washington DC is one of the first customers to sign up for a ‘lighting as a service’ deal, along with Rau architects in the Netherlands and the UK’s National Union of Students.

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