Water Use

In May 2008, we announced our goal of reducing our freshwater consumption by 20% in 2012 from a baseline of 2006. In early 2009, we modified the goal to a 25% reduction by 2015. GE annually collects water data for those sites consuming more than 15 million gallons a year. This includes water used for potable, process and sanitary purposes, as well as once-through cooling water from freshwater sources. We adjust the data each year to reflect acquisitions and divestments.

In 2010, GE’s water use was 11.9 billion gallons, a 22% reduction from the 2006 baseline, and an 11% increase from 2009.

Factors contributing to the observed increase over last year’s results include the following:

• Increased attendance at our NBCU theme parks in the U.S. (increase in potable water use)
• Product testing campaigns (increase in once-through cooling water use)

We have identified engineering controls to minimize once-through cooling water consumption during product testing campaigns that will be implemented this year. In 2011, we divested our controlling interest in NBCU operations;  consequently, those data will be removed from our metrics next year. Considering the divestiture of NBCU operations and inclusion of new acquisitions in 2011 and beyond, significant variability in our metrics will continue to exist for the duration of the goal time horizon.

Another action underway will potentially reduce GE’s global water use by an estimated 5% as a result of a large project at one of our U.S. plants utilizing GE Water & Process Technology equipment, including nanofiltration and ultrafiltration technologies to recycle and reuse water. We anticipate that the new system will be operational by 2015.

Due to the enormous success of the kaizen blitz activities since 2008, we will continue conducting these events at those sites using the most significant quantities of water across the Company with at least four additional events planned for 2011.