Dell Brand Identity Standards · 2011-07-21 · For the period 2010-2015 Dell Brand Identity...

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DELL AUSTRALIA PTY LIMITED Australian Packaging Covenant Action Plan For the period 2010-2015

Transcript of Dell Brand Identity Standards · 2011-07-21 · For the period 2010-2015 Dell Brand Identity...

DELL AUSTRALIA PTY LIMITED

Australian Packaging Covenant Action Plan

For the period 2010-2015

Dell Brand Identity Standards Version 2.0 | February 2010

CONTENTS PAGE

1. Executive Summary 1

2. Company Summary 2

3. Environmental Initiatives 3 3.1 Corporate Initiatives 3 3.2 Dell’s Achievements in Australia 9

4. Covenant Contact Officer 12 4.1 Our APC Team 12

5. Schedule for Packaging Reviews 14 5.1 Types of Packaging Used 14 5.2 Timetable for Review 14

6. Action Plan Table 15 6.1 Introduction 15 6.2 Design 15 6.2.1 Covenant Goals 16 6.2.2 Outcome 16 6.2.3 Key Performance Indicator 16 6.2.4 Current and Planned Actions 16 6.3 Recycling 19 6.3.1 Covenant Goals 19 6.3.2 Outcome 19 6.3.3 Key Performance Indicator 19 6.3.4 Current and Planned Actions 19 6.4 Product Stewardship 20 6.4.1 Covenant Goals 20 6.4.2 Outcome 20 6.4.3 Key Performance Indicator 20 6.4.4 Current and Planned Actions 20 6.5 Action Plan Tables 21 6.5.1 Design 21 6.5.2 Recycling 22 6.5.3 Product Stewardship 22

DELL AUSTRALIA PTY. LIMITED | APC ACTION PLAN | 2010 - 2015

DELL AUSTRALIA PTY LIMITED

Australian Packaging Covenant Action PlanFor the period 2010-2015

Dell Brand Identity Standards Version 2.0 | February 2010

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1. ExECUTIvE SUMMARY

DELL Australia Pty Ltd (DELL Australia) is a signatory to the Australian Packaging Covenant (APC) and has prepared this Action Plan for the period 2010-2015.

Dell Australia became a signatory to the National Packaging Covenant on February 8, 2007. As an importer of packaged goods, Dell Australia is committed to upholding the principles of the Australian Packaging Covenant and this 2010 – 2015 Action Plan details the actions and targets that have been put in place by DELL Australia to be undertaken over the next five years. An Annual report will be prepared going forward to detail the achievements in relation to the Covenant principles on an ongoing annual basis.

Dell has an active development program in Materials Research and Packaging Design to advance sustainable packaging. Dell’s product Phase Review Process (PrP) encompasses the entire development cycle of the product from “Concept to Sustaining”. The environmental aspects of our product’s design are integrated into the PrP through the use of the ISO 14001 standard. Dell is distinguished by having our Product Development activities certified to the ISO 14001 environmental management system (EMS) standard. Packaging is an integral part of this process.

DELL Australia as a brand owner, a member of the packaging supply chain and, as a signatory to the Covenant, has set out a company specific list of actions to adapt the Sustainable Packaging Guidelines. These have been prepared in consultation with our global packaging team based in Round Rock, Texas, United States of America, to ensure our reporting standards and capabilities in Australia are in line with our current global standards for our packaging supply chains. The aim is to build on established baseline data developed during the National Packaging Covenant, and develop specific achievable actions for the implementation of commitments we have made under the Covenant.

Each action is linked to the key performance indicators (KPIs) and targets as set out in the Covenant. DELL Australia is in the process of developing a central database for APC requirements along the lines of that are already in place and as reported in our annual corporate sustainability reports. This will manage the substantial data requirements of the implementation phase of the APC action Plan and these records will be made available for review by the relevant parties on request.

DELL Australia has prepared a timeline for the next 12 months to address issues raised during the development of the Action Plan in each of the three main areas i.e. Design, Recycling and Product Stewardship. In Section 5 we layout our timeline and order of priority for the actions we aim to undertake under the Sustainable Packaging Guidelines (SPG).

The key goals for 2011 are;

Design – Ensure that DELL’s packaging review process and associated initiatives cover all the topics 1. required under the Sustainable Packaging Guidelines (SPG) or at least acknowledge what areas of the SPG are covered and develop procedures to address and record the remaining topics;

Recycling – DELL Australia will review our inhouse office recycling activities, discuss our recycling 2. requirements with third party distribution service providers, aiming to ensure packaging material is recovered from the waste stream and directed towards recycling, where possible;

Product Stewardship – DELL publishes a Corporate Responsibility Report each year indicating 3. Objectives, Goals and Achievements for past and future years. DELL Australia will ensure our activities in the area of product stewardship are recognized and reported in this report.

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Dell was founded in 1984 by Michael Dell, the longest-tenured executive to lead a company in the computer industry. We are a premier provider of products and services worldwide that enable customers to build their information technology and Internet infrastructures. Dell offers a broad range of products in the following categories: desktop computer systems, servers and networking products, mobility products, software and peripherals and services.

Dell Australia is a subsidiary of Dell Inc. currently headquartered in Round Rock, Texas, United States of America. Dell Inc operates worldwide and its subsidiaries develop, design, manufacture, market and sell computers and services, software and peripherals to customers worldwide. The company sells its technology to a variety of customers – consumers, public customers, large enterprises and small- and medium-sized businesses.

Our global leadership has been the result of a persistent focus on delivering the best possible customer experience by selling products and services directly to customers. In fiscal year 2008 we launched our retail business and expanded our partnerships with value-added resellers (VARs). Dell Australia has served businesses, governments, large organisations and individuals since the early 1990s. The company’s local head office is in Sydney and it maintains a presence in Adelaide, Brisbane, Melbourne and Perth. From these locations, Dell Australia provides technical and customer support, and performs sales, marketing and support functions.

Dell Australia works with organisations across the country such as Minter Ellison; Museum Victoria and Goulburn Ovens Institute of TAFE on projects ranging from virtualisation to storage and mobility.

DELL CORPORATE RESPONSIbILITY REPORT

Dell publishes a Corporate Responsibility Report each year and the 2010 Summary Report can be found at: http://content.dell.com/us/en/corp/report.aspx.

2. COMPANY SUMMARY

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3.1 CORPORATE INITIATIvES

Addressing Climate Change

Dell is committed to reducing GHG emissions beyond its own operations. To do this, we have adopted a strategy that takes into account the GHG impacts of our products and our suppliers. We look at each stage of the product life cycle — from developing, designing and sourcing through manufacturing and operations, order fulfillment, customer use and product recovery. The following figure shows how these focus areas work together.

We can have an even greater impact on GHG emissions reduction by looking outside our own operations to those of our suppliers. We have set expectations with our Tier 1 suppliers, who represent 95 percent of our total spend, to manage, improve and report their GHG emissions as a consideration for awarding business.

3. ENvIRONMENTAL INITIATIvES

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Picking the Right Materials

Packaging consists of the box and the cushioning. We can help our customers by selecting the right packaging materials and using less of them:

Recyclable boxes — Our business client product boxes are made from corrugated cardboard, which is 100 percent recyclable. We use a large amount of recycled cardboard in our new cardboard, but we can’t use 100 percent recycled content because it would lack the necessary structural integrity. So we focus our efforts on reducing the size of the box (cube). One of the most efficient methods for reducing box size is through the use of our multipacks — when a customer orders several of the same products, upon request, we can bundle them together in a way that greatly reduces the amount of packaging material our customers have to deal with after the equipment is unpacked.

Recycled cushioning — For many reasons, we’re experimenting with a variety of materials to create our cushioning. Regional cost differences and regional environmental concerns must be considered. For products such as the Dell Inspiron™, we use thermal-form high-density polyethylene (HDPE), which contains 100 percent recycled content* from items such as milk jugs and detergent bottles that are 100 percent recyclable. We have introduced new packaging, such as air cushions in Europe, and other cushioning material, such as thermal-form HDPE cushion, in our effort to accomplish the goals of the Three C’s program.

Sustainable bamboo — In November 2009, we began shipping Dell Inspiron Mini 10 and 10v netbooks in packaging made from bamboo, a highly renewable, certified compostable material that serves as a great alternative to moulded paper pulp, foams and corrugated cardboard often used in packaging. Recently, we have extended the use of bamboo packaging to include a number of Dell Inspiron laptops. We encourage customers to add bamboo packaging to their compost piles for easy, environmentally responsible disposal.

Toss It in Your Compost Pile

Adding to its attributes as an environmentally-responsible alternative to traditional packaging materials, Dell bamboo packaging has been certified “compostable” and has received ASTM D-6400 certification from the Soil Control Lab. This certification assures that the bamboo will compost satisfactorily and biodegrade at a rate comparable to known compostable materials. The certification also assures that the compost resulting from the packaging’s degradation process is of good quality and can sustain plant growth. During the compostability testing, engineers grew cucumber and sunflower plants in soil mixed with our bamboo packaging compost. As you see from the photo below, the cucumber plants are nice and healthy!

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Reducing Waste with Multipack

For orders of multiple systems going to the same location, we offer Multipack — a packaging option that enables multiple systems to be shipped in a single box. Multipack is offered on a limited basis but is available for most 1U and 2U servers, OptiPlex™ desktops and Latitude™ laptops. For our PowerEdge™ M-Series blade servers, we have taken Multipack to new heights, and ship a fully configured chassis in a single box. This enables our customers to unpack and start up their new blade servers in about 15 minutes.

Multipack packaging types include:

Server Multipack — Expanded to M1000E Multipack, which holds eight blade systems, reducing the cube by on average 42%.

OptiPlex Desktop multipack packaging - Reduces the cube on average 27%.

U.S. Latitude multipack packaging — Reduces the cube on average 33%.

Dell also announced on April 5, 2011 that it will begin a pilot for Mushroom based packaging. This packaging is created by growing mushroom fibres on waste like cotton seed, wood fibre and buckwheat hulls and consumes one-tenth the energy used to manufacture foam packaging. Dell is the first technology company to start pilot shipments. The initial pilot is for US only and shipments will be for the PowerEdge R710 server.

Read more: http://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2011/04/05/dell-plans-pilot-to-ship-products-in-mushroom-packaging.aspx

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Future Packaging Projects

The packaging life cycle is complex, and it can be difficult to determine which materials offer the best environmental solutions. Our packaging engineers consider methodologies such as life-cycle assessments and carbon-footprint analyses to compare the environmental effects of different packaging. Using these methodologies to quantify packaging materials and related logistic models helps us profile and select the best solutions. Some of these future packaging product types include:

Air-filled cushion technology;• Moulded paper pulp cushions; • Moulded Fibre from local vegetation and agriculture waste; and • Renewable resource packaging materials, such as starch-based foam. •

Developing greener products is essential to helping our customers minimize their environmental footprint. Our goal is to build products with more computing power while saving energy costs and conserving resources. In short, more “green” equals less energy consumption, less waste and lower costs. To develop greener products, we address the resources and ingredients used to build them, the amount of energy they consume, the packaging that protects them and the recyclability of the products. We ask,” Is there a more energy-efficient solution? What environmentally responsible yet reliable materials are available? Can these materials be recycled?”

We are constantly looking for better ways to build greener products without building in additional costs or stripping out important features.

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Using Greener Materials, Offering Greener Products

Products are only as green as what goes into them, so we focus on getting the components right.

In 2010, we transitioned all of our new laptop displays to light-emitting diode (LED), which • eliminates the use of mercury. This technology has already been incorporated in the Dell Latitude E4200, E4300, E6400, E6400 ATG and E6500, and we are committed to expanding the list of mercury-free, LED-based products in future offerings.

The plastic materials used in select mainstream OptiPlex systems and monitors in 2009 included • more than 7.2 million pounds of post-consumer recycled plastic. That’s equivalent to recycling more than 263 million water bottles.

By the end of 2011, all newly introduced Dell personal computing products will be free of PVC, • BFRs and chlorinated flame retardants (CFRs). However, achieving this goal is contingent on when the industry identifies acceptable alternatives that will lower product health and environmental impacts without compromising product performance.

We are proactively eliminating the four chemicals expected to be restricted when RoHS is updated around 2014: hexabromocyclododecane (HBCDD), bis (2-ethylhexyl) phthalate (DEHP), butyl benzyl phthalate (BBP) and dibutyl phthalate (DBP). As of July 1, 2010, all newly designed Dell products are free of these four chemicals.

Driving Energy Efficiency

Our customers seek to work as efficiently as possible, and we aim to build products to help them be efficient. All Latitude, Precision and OptiPlex systems can be configured for ENERGY STAR compliance and are among the most energy-efficient in the industry. In fact, Dell was the first company to offer ENERGY STAR 1.0 for server families and the first to achieve 80 PLUS Gold power-supply energy efficiency for a server power supply unit.

As of May 2011 Dell has 192 products registered for Electronic Product Environmental Assessment Tool (EPEAT). Our laptops and desktops are being designed to consume up to 25 percent less energy by the end of calendar year 2010 compared to systems offered in May 2008. Dell estimates that customers using desktop power management features and settings have saved a total of more than $4 billion on energy costs.

Reducing Our Own Footprint

Being environmentally responsible goes beyond selling greener products and services. Dell understands that reducing our own environmental footprint is the responsible thing to do, so our commitment to promoting a healthier and cleaner planet starts in our own backyard.

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Reducing Energy Consumption

Energy-efficient operations enable us to conserve resources, reduce emissions and trim our operating costs.

During the last three years, Dell has completed more than 170 improvement projects in its • facilities. These upgrades are estimated to reduce energy usage by 36 million kWh, avoid generating 21,000 metric tons of greenhouse gas (GHG) emissions, and save roughly $5.8 million each year.

As a result of virtualization, by the end of 2009, Dell’s internal IT organization saved enough • electricity annually to power roughly 2,000 average American homes for one year.

By applying our “green efficiency” approach, Dell IT has achieved more than $29 million in energy • savings to date and indefinitely postponed the need to build a new data centre to support our internal operations.

Investing in renewable energy to lower our greenhouse gas emissions Dell recognizes that climate change is real and must be mitigated, and we support efforts to reduce global emissions to levels guided by evolving science. We aspire to purchase as much electricity from clean and renewable sources of energy as practical. This, along with our ongoing energy-efficiency improvements, will help us to meet our pledge to reduce GHG emissions.

Highlights of our accomplishments thus far include:

We currently power our entire Round Rock, Texas, headquarters campus plus seven of our • facilities in the U.S. and Europe with 100 percent purchased renewable electricity.

In fiscal year 2010, we sourced 25 percent of our global electricity from renewable sources such • as wind and solar.

We are one of the top five purchasers of renewable electricity in the U.S. (according to the • Environmental Protection Agency’s Fortune 500® Partners rankings April 2010) — and we are the top computer-maker purchaser (U.S. only).

Our manufacturing site in Hortolândia, Brazil, has solar panels on the roof to heat water for the • building’s kitchen and cafeteria areas. This is expected to save 76,000 kWh each year.

Our headquarters’ parking lot in Round Rock, Texas, is the home of solar arrays that are • designed to produce 131,051 kWh of renewable source electricity. This alternative source of electricity will allow us to avoid generating 221,000 pounds of GHG emissions each year, roughly equivalent to planting 23 acres of pine forest every year.

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We’ve pledged to continue to maximize our green power purchases, reduce our own operational emissions and responsibly offset the remainder. In 2007, we announced a goal to further increase operational efficiency by reducing global GHG emissions by 15 percent per dollar of revenue (a carbon-intensity measurement) from 2007 to 2012, and to offset our facilities’ operations worldwide. We’ve also committed to further reduce our absolute global operational GHG emissions 40 percent by 2015.

For more information on Dell’s goals, please refer to the 2010 Dell Corporate Responsibility Report (summary) on page 31 at: http://content.dell.com/us/en/corp/cr.aspx?~ck=bt

3.2 DELL’S AChIEvEMENTS IN AUSTRALIA

Dell has demonstrated leadership in asset disposal and recycling services in Australia.

Consumer Recycling Initiatives

In November 2005, Dell Australia held the first of its public free recycling days. Held at Cromer Public School in Sydney’s Northern Beaches, the event allowed the public to drop off any brand of computer, monitor, printer and even mice for safe, environmentally-conscious and free disposal. Close to 10 tonnes of equipment was collected. Since then, seven more events have taken place; Brisbane in May 06, Wellington NZ in September 06, Melbourne in October 06, Perth in November 06, Canberra in May 07, Adelaide in Mar 08 and Canberra in Oct 2009. The eight events in Australia and New Zealand have helped to divert over 165 tonnes from landfill.

Dell also offers free consumer take back programs for Dell and non Dell products.

(1) Take Back Dell - Free recycling of any Dell branded equipment.

Dell will pick up Dell-branded equipment from any location in Australia or New Zealand (metro, country and remote). You do not need to purchase any new Dell equipment to qualify for this program. Terms and conditions apply at the Recycling for Home link at www.dell.com.au/recycle.

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(2) Buy Dell, Recycle Free - Free recycling of any brand when you buy a Dell XPS, Inspiron or Vostro PC.

Dell will recycle any brand of personal computer on a one-for-one basis when you buy a new Dell XPS, Vostro or Inspiron desktop or notebook – metro regions only. Terms and conditions apply at www.dell.com.au/recycle.

(3) Byteback Victoria.

Dell participates in this program with AIIA, major IT industry organisations and Sustainability Victoria. Byteback is a computer take-back program to help people dispose of unwanted computer equipment responsibly. Because the main aim is to keep old computers out of landfill, equipment deposited at Byteback sites is broken down into components for recycling. For more information please see http://www.bytebackaustralia.com.au/.

Asset and Recovery Services in Australia

Identity theft, standards compliance, environmental liability — these concerns are increasingly top of mind for today’s businesses. Whether it’s personal financial information, highly confidential health records or corporate intellectual property, business servers, desktops and laptops across the globe hold some of the most sensitive and proprietary data. Add to this the environmental impact of obsolete equipment, and it’s clear that proper disposal of computer equipment that has reached the end of its life cycle has never been more important.

Dell can help you recover, resell, recycle or return to lease your excess computer equipment in a secure and environmentally conscious manner that complies with local regulatory guidelines.

Head Office, Frenchs Forest Environmental Activities

Dell Australia promotes recycling and responsible paper usage in its own offices. With regard to recycling, Dell Australia has worked with the property manager for its main office to implement an onsite recycling service which enables all tenants in the building to sort paper, bottles and general waste. We have also moved to the use of recycled paper in all the printers in our offices and set the default to double-sided printing. In addition, our printers and fax machines are set to no longer print activity reports.

We have installed sensor lights in meeting rooms to ensure lights are only activated when rooms are in use - therefore reducing energy consumption. In addition, Dell is currently finalising plans to purchase a percentage of renewable energy from our energy provider on our main energy contract.

Waterless urinals are also in operation assisting with water savings.

Dell recycles all internal computer assets via an approved ISO 14001 recycling vendor.

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Dell continues to offer multi packs for the shipping of desktops to reduce packaging for corporate customers. Sea freight shipping is also an option for large orders, which reduces carbon emissions and saves money for the customer. Both these delivery options have been well received by our customers as well as being helpful to the environment.

Packaging Covenant Signatory Commitments

Dell Australia became a signatory to the National Packaging Covenant on February 8, 2007. As an importer of packaged goods, Dell Australia is committed to upholding the principles of the Australian Packaging Covenant and this 2010 – 2015 Action Plan details the actions and targets that have been put in place by DELL Australia to be undertaken over the next five years. An Annual report will be prepared going forward to detail the achievements in relation to the Covenant principles on an ongoing annual basis.

Dell will continue to work with its Principal and suppliers to ensure that all the members of its packaging supply chain conform to the requirements of the Australian Packaging Covenant. Dell’s environmental stewardship program drives conservation of product energy consumption; develops methods to reduce or eliminate materials for disposal; prolongs product life span; and provides effective and convenient equipment recovery solutions. For information concerning Dell’s Environmental Affairs programs, please see: http://www.dell.com/environment.

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4. COvENANT CONTACT OffICER

Ms Ann Brownlow will be responsible for DELL Australia’s commitment to the Australian Packaging Covenant. She will report to DELL Australia’s Managing Director, Mr Joseph Kremer, on all matters relating to the Australian Packaging Covenant. This Action Plan has been endorsed by Mr Kremer.

The contact details for Ms Brownlow are:

Ann Brownlow APJ Producer Responsibility Compliance ManagerDELL Australia Pty Limited14 Aquatic DriveFrench’s Forest NSW 2086

4.1 OUR APC TEAM

In relation to packaging, the development and review of new packaging is primarily headed by the WW Packaging and Procurement Director’s organisation. Members of several other functions such as product core teams, Marketing, platform planning, WW Environmental Affairs, and part of the Aggregate product planning stage are involved in the review process. DELL Australia will call upon these global resources to assist the Australian office implement the Sustainable Packaging Guidelines as the majority of issues may already be covered by a current activity or reporting requirement of these departments

DELL believe a combination of the expertise we have in the Australian office combined with the resources of our WW packaging team, assisted by our local advisors, will result in a team that will complete the SPG requirements to the highest standards.

We have identified the key departments required to have input and have created a team made up of the following individuals to work on this key project as part of our ongoing efforts to address packaging:

Name: Responsibility:

Ann Brownlow APJ Producer Responsibility Compliance Manager

WW Packaging Team

Greenstreets Environmental Resources External Advisor

This APC team will work collectively over the next five years to develop a world class repository for all information relating to the Sustainable Packaging Guidelines and APC requirements, while carrying out all tasks necessary to achieve compliance with the APC membership. Individuals may not be involved in all twelve strategies relating to the Sustainable Packaging Guidelines, and a number of current global initiatives may already negate the need to address particular elements of the SPG.

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Over the past five years DELL Australia has worked with our advisors to build up a core body of knowledge within the Australian operation in relation to the National Packaging Covenant, and subsequently the Australian Packaging Covenant. In the past year the preparation for the Australian Packaging Covenant included:

Onsite workshop in DELL Australia for Ms Ann Brownlow in relation to the transition process from • National Packaging Covenant to Australian packaging Covenant;

Attendance at a number of APC led workshops; and •

A comprehensive Q & A session between our advisors in Australia and our WW Packaging • team to align their global view of packaging compliance with the specific elements of Australian reporting requirements.

DELL Australia and our advisors aim to hold regular quarterly meetings where we will progress the actions we have listed in the Action Plan as an ongoing project. The team will endeavour to have a timely implementation of the Action Plan and will ensure data is stored in an auditable manner in our in-house APC audit database. Our aim is to store all documents electronically in a secure central location in a SharePoint repository.

Dell will also continue to ensure our suppliers assist in the implementation of this action plan based on our current strict procurement process. Members of our key suppliers currently meet the Dell packaging staff on a regular basis and are directly involved in the evaluation of new packaging materials, sustainable packaging initiatives etc. Our compostable bamboo packaging is just one example of how we have worked with suppliers in developing sustainable packaging.

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5. SChEDULE fOR PACkAGING REvIEwS

DELL Australia have identified that our product line is the most appropriate method to review packaging. We have allocated the staff, time and systems necessary to ensure this is carried out on an ongoing basis through continuous product development protocols.

5.1 TYPES Of PACkAGING USED

Our relationship with packaging:

DELL supply seven types of material, with many sub groups in each e.g. seven types of plastic 1. within the plastic range;DELL has used many stringent reporting requirements with our suppliers to ensure we are dealing 2. with only the most sustainable of companies;DELL is constantly comparing our baseline data to industry benchmarks and best practice 3. globally.

5.2 TIMETAbLE fOR REvIEw

An initial review of our key product was carried out as part of the preparation of this Action Plan. On the basis of this initial review, DELL Australia has determined the following target Timetable for Review:

% of Product Lines Reviewed

Review Period: Existing New

1/4/2011 – 31/3/2012 20% 20%

1/4/2012 – 31/3/2015 100% 100%

6. ACTION PLAN

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6.1 INTRODUCTION

Our APC team has worked collectively to review existing systems and procedures to assist in the development of a baseline for Action Plan indicators, and also to identify any gaps that exist in current reporting systems. This has provided a list of actions for the implementation of the Plan over the next twelve months and the lifetime of this Plan. These are set out below and are not exhaustive as many of the APC goals are already addressed through current systems within DELL - our sustainable packaging designing program of 3C’s – Cube, content and Curbside.

Our action plan is split to show the actions we will take under the three main headings:

Design;• Recycling; and• Product Stewardship•

A summary of the actions is also provided in the Action Plan Tables section.

6.2 DESIGN

Dell Packaging Engineering is actively involved with reducing the packaging in all areas of the company’s business. These include our mainstream products such as notebooks, desktops, servers and storage systems. In addition Dell’s packaging procurement guidelines also apply for monitors, printers, accessories, software & peripherals, service, and packaging of inbound material from suppliers.

The company has an active development program in Materials Research and Packaging Design to advance sustainable packaging. Dell provides practical, innovative packaging solutions that minimise impacts on the planet and make it easy for customers to do the same. Always striving to find a better way, we have created a metric for packaging improvement which we will aim to apply to our Australian operations packaging over the course of the Australian Packaging Covenant.

Dell designs and engineers its products and packaging to prevent pollution and conserve natural resources throughout the system’s life cycle. We work with the best available suppliers and processes so we can to ensure a stable packaging product that will first protect the shipment, and second do so in the most environmentally responsible way without impacting the overall customer experience.

Dell Worldwide Packaging and procurement Director is responsible for the packaging design process and decisions for advancing the introduction of sustainable packaging materials. We believe this global approach will run complimentary to the requirements under the Sustainable Packaging Guidelines.

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6.2.1 Covenant Goals

For DELL the goal is to look at optimising packaging to use resources efficiently and reduce environmental impact without compromising product quality and safety. In order to do this, DELL has committed to review existing procedures for new packaging design or procurement to ensure these cover the requirements of the Sustainable Packaging Guidelines.

6.2.2 outCome

The outcome should be packaging designed to:

Avoid or minimise the use of materials and other resources;• Optimise recyclability and recycled content; and• Reduce litter impacts.•

6.2.3 Key PerformanCe IndICator

The Key Performance Indicator for design will be evidence that DELL is implementing the Sustainable Packaging Guidelines (SPG) for design and procurement of packaging.

6.2.4 Current and Planned aCtIons

DELL has commenced the review of all packaging using the SPG guidelines.

DELL has determined that it will take twelve months (to April 2012) to review 20% of all current products and 20% of new products using the SPG guidelines. Based on the results of this exercise, DELL will implement a program over the next four years to review all products.

DELL Australia has integrated third party consulting, and training to this project so every member of our team is fully resourced to carry out the tasks required. This aids with the development of our team and procedures, and backing documentation.

The reviews of the packaging on our selected product lines will be carried out between April 2011 and March 2012, and all 63 questions will be documented for each line of business on mainstream product. A full audit trail will be available for both compliance and substantive audits.

DELL currently has a range of equivalent processes to address issues raised in the SPG guidelines

Of these, the main initiative that can be directly compared to the Sustainable Packaging Guidelines as a replacement / current initiative that is achieving the goals of the SPG is a programme under the title “The Three C’s of Smart Packaging”

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The Three C’s of Smart Packaging

Dell is implementing a plan to simplify and revolutionise computer packaging that will result in estimated savings of more than $8 million and the elimination of approximately 20 million pounds (10,000 tons) of packaging materials from 2008 through 2012.

Our Dell Packaging engineering team continuously develops and reviews improved packing methods that use the least amount of packaging material possible, while still protecting product shipments. We want to lead the industry in this area — creating a metric where one doesn’t currently exist. We have a deliberate and innovative strategy to increase the sustainability of our packaging. We call it the Three C’s:

Cube — How big is the box? Could it be smaller? Content — What is the packaging made of? Could it be made of something better? Curb — Is it easily recycled?

In December 2008, we committed to eliminating 20 million pounds of packaging by 2012. We plan to do this by:

Shrinking packaging volume by 10 percent (cube);• Increasing to 40 percent the amount of recycled content in packaging (content); and • Increasing to 75 percent the amount of materials in packaging to be curbside recyclable (curb).•

We have already made great progress toward our commitment. We’ve reduced packaging volume by over 13 percent, surpassing the original goal of a 10 percent reduction. So far, we have increased the amount of recycled content in packaging by approximately 33 percent (94 percent of the way there). We have increased the amount of materials in packaging to be curbside recyclable to 57 percent. These dedicated efforts have already resulted in eliminating over 8.7 million pounds of packaging.

Going forward, as part of our review of the SPG guidelines, each current standard will be referenced against the SPG guidelines where we believe it has provided coverage for a particular requirement raised in the review.

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Strategy Yes No Document Copy on APC file

1 Maximise water and energy efficiency Yes Energy Efficiency

Dell Earth

Yes (CR Report & Corporate

Websites & Action Plan references

2 Minimise materials Yes Greener Products and Packaging

As Above

3 Use recycled materials Yes Greener Products and Packaging

CR Report

As Above

4 Use renewable materials Yes Greener Products and Packaging

As Above

5 Minimise risks from Rohs Yes Chemical Use Policy

As Above

6 Use materials from responsible suppliers

Yes Supplier ResponsibilitySupplier StandardsSupplier Principles

As Above

7 Design for Transport Yes CR Report As Above

8 Design for reuse Yes CR Report As Above

9 Design for recovery Yes Greener Products and Packaging

As Above

10 Design for litter reduction Yes Greener Products and Packaging

As Above

11 Design for consumer accessibility Yes Measure Corporate Responsibility

As Above

12 Provide consumer information Yes CR Report As Above

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6.3 RECYCLING

6.3.1 Covenant Goals

For DELL Australia the goal for recycling is to make a contribution to improved recovery of packaging by having on-site recovery systems for recycling of used packaging and, to consider a policy to purchase products with a recycled material content.

Dell designs all packaging so that it can be disposed of in an environmentally friendly manner. This includes choosing of materials that can be easily accepted for recycling in most of the communities, properly labelling packaging to educate consumers for responsible recycling, marking plastics packaging using SPI plastics code to aid recovery and sorting.

6.3.2 outCome

The outcome should be:

Improved recovery of recycled materials from the premises of DELL Australia.•

6.3.3 Key PerformanCe IndICator

The Key performance indicator for recycling will be evidence that DELL Australia is implementing the on-site recovery of packaging through documentation provided from our contracted waste managers.

6.3.4 Current and Planned aCtIons

DELL has commenced the review of all on-site waste management practices in relation to our in-house waste, and has also continued to look at buy recycled as part of our general purchasing practices.

6.3.4.1 In-house Recycling

DELL Australia encourages recycling in all its offices and has provided for separate recycling receptacles.

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6.4 PRODUCT STEwARDShIP

6.4.1 Covenant Goals

The goal for Product Stewardship is that DELL show a demonstrated commitment to product stewardship through working with third parties.

6.4.2 outCome

The outcome should be:

To improve the design and recycling of packaging; and • Reduce the overall level of litter created by packaging.•

6.4.3 Key PerformanCe IndICators

The key performance indicators for product stewardship are;

Have formalised procedures in place to work with others to improve design and recycling of • packaging;

To engage in other initiatives that show product stewardship such as education, sponsorship of • initiatives etc; and

To reduce the occurrence of litter in their operations and encourage clients to properly dispose of • the packaging of products to remove them from the litter stream.

DELL Australia is committed to the principle of Product Stewardship at all stages in the life of our products, including the packaging chain.

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6.5 ACTION PLAN TAbLES

6.5.1 desIGn

Covenant Goal Actions Responsibility Targets Timeline

1. Design - optimise packaging to achieve resource efficiency and reduction in quantity required. The design efforts should reduce environmental impact without compromising product quality and safety.

Prepare gap analysis between existing environmental and product development systems/standards and SPG to ensure SPG implemented:

APC Team April 2015

- Review existing products to ensure they meet SPG guidelines

20% reviewed 31st March 2012

- Review new products to ensure they meet SPG guidelines

20% reviewed 31st March 2012

- Implement changes from initial review which ends April 2012 to ensure all products meet SPG requirements

100% products 31st March 2015

- Implement adequate audit procedures and tools to record the results of the SPG reviews.

Implement system to record SPG reviews and links to other standards

December 2012

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6.5.2 reCyClInG

Covenant Goal Actions Responsibility Targets Timeline

2. Recycling - Improved recovery of packaging by having on-site recovery systems for recycling of used packaging and, to consider a policy to purchase products with a recycled material content.

Review and implement improved on-site recycling and buy recycled policies:

APC Team April 2015

- Document baseline recycling information for on-site packaging waste

Baseline data 31st March 2012

- Report annually on recycling of on-site packaging waste

June 2012 – June 2015

- Review existing Buy Recycled policy and see if improvements need to be made

31st March 2012

- Document recycling information for office waste recycling where possible

Baseline data December 2013

- Identify opportunities for improvements in Buy Recycled quantities

April 2015

6.5.3 ProduCt stewardshIP

Covenant Goal Actions Responsibility Targets Timeline

3. Product Stewardship - Show a demonstrated commitment to product stewardship through working with third parties

Review inhouse Sustainable Packaging Guidelines to try to extend this to include packaging.

APC Team 31st March 2012

Develop plan to implement changes identified in existing policies

April 2012

Provide information to customers to promote recycling.

December 2012