Dell Product Stewardship Program

Scott O’Connell, Dell Environmental Affairs

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Green Is Everywhere

68% Of Executives foresee increased 68% Of Executives foresee increased

government regulation on government regulation on

environment environment

77% Of Companies anticipate 77% Of Companies anticipate

spending more on Environmental spending more on Environmental

Programs Programs

80% of all data centers report 80% of all data centers report

capacity issuescapacity issues

83% Of Largest Retailers are83% Of Largest Retailers areinvolved in Green Practicesinvolved in Green Practices

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Energy and Resource Related issuesEnergy and Resource Related issues

Air, Water PollutionAir, Water PollutionClimate Change/ Global Warming / OzoneClimate Change/ Global Warming / Ozone

Trash Generated/Waste by CorporationsTrash Generated/Waste by Corporations

The economy / UnemploymentThe economy / Unemployment

Over Population / Cutting down trees / DeforestationOver Population / Cutting down trees / Deforestation

Green Issues are a Lie / Myth / Global Warming ConspiracyGreen Issues are a Lie / Myth / Global Warming Conspiracy

Society/OurselvesSociety/Ourselves

Most Important Green Issues – Consumer Survey Penn, Schoen & Berland Associates (PSB)

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44

21 19 9

20 19 19

17 18 41

11 7 7

5 - -

3 3 4

2 - -

1 4 3

7: What do you think is the most important green issue or problem today?

2009 / 2008/2007What do you think is the most important green issue or problem today? OPEN END

• Energy and pollution remain the most important green issues.

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Green Attribute Importance – Consumer Survey Penn, Schoen & Berland Associates (PSB)

Reduces the amount of toxic or other dangerous

substances in its products and business processes

Recycles materials and uses recyclable materials

Works to make operations more energy-efficient

Reduces the amount of packaging they use

Offers environmentally friendly products and

services, such as paperless billing

Encourages environmentally friendly behavior

among employees at the workplace

Promotes green practices through

advertising and public service announcements

Maintains partnerships with environmental organizations

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Very Important

Important / Not Important

70 94/6

64 93/6

61 93/6

52 89/11

48 88/11

46 87/11

35 78/19

32 75/22

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43: When you think about what brands you buy, how important is it that a company is environmentally friendly or is a “green” company?

44-51MA: Now please think about specific activities a company can do. Please rate how important each is to you in order for you to think of a company as “green”.

How important is each of these things to you in order for

you to think of a company as “green”?

• The top three green attributes are reducing the amount of dangerous substances, recycling and making

operations more efficient.

6DELL CONFIDENTIAL 6

EPEATElectronic Product EnvironmentalAssessment Tool

Der Blaue EngelGermany's voluntary environmental label

TCO ’03 TCO ‘05Swedish environmental/ergonomics label

EPAUSA Environmental Protection Agency

JEITAJapan Electronics and InformationTechnology Industries Association

CECChina Environmental Certification

Key Electronics Industry Eco-Labels – Can We Harmonize Globally and Across Markets (B2B, B2C)?

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Retail Sustainability Initiatives – Sustainability Consortium

• Wal-Mart created a Sustainability Steering Committee in mid-2008 and have expanded this to a multi-stakeholder “Sustainability Consortium”

• The Sustainability Consortium consists of retailers, companies, governments, universities and non-governmental (NGO) organizations• Emphasis is on consumer products, initial focus sectors include food, personal care,

apparel• $100K/yr or $50K/yr membership fee• http://www.sustainabilityconsortium.org/

• The Consortium will develop a multi-phase, data-driven supplier andproduct open life cycle database and index over the next 3+ years• Wal-Mart has a version 1.0 Index, focused on corporate-level criteria. • Version 2.0 (expected in 2010-2012) will be more product focused, Version 3.0 will

follow

• Opportunity for industry to proactively participate in the Sustainability Consortium, help shape positive outcome for the industry, retailers and consumers

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What Could A Sustainability Index Look Like? France Eco Indicator Example For Cell Phones

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Where Does The Industry Go For Guidance?

INTERNATIONAL R

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Dell Environmental Case Studies – 3 Examples

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Dell’s implementation Best-of-breed tools

• Dell shuts down 50,000 client systems worldwide

– 12 hrs at night, Mon–Fri

– 48 hours total over the weekend

• Measuring power consumption by system, facility to facility, every 15 minutes

• Also measuring cooling system consumptions (powered-down systems are cooler)

Third-party power management solution

• Works with the standard/common environment (Windows, SMS)

• Reporting/management functions to measure and analyze results/savings

• No impacts to patches, security, end user productivity

Impressive results

$1.8 million/year saved in energy costs

13 million kW/hrs saved

8,500 tons of CO2 emissions avoided per year

Case Study: Energy Optimized Software

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Case Study - Dell Environmentally Preferable Materials Initiatives

Mercury-free Notebook LED transition• Effective Dec. 15, 2008, >60% of E-Family laptops will ship with mercury-free LED back lights. Goal

is to achieve 100% LED on all notebooks by 2010.

Drive BFR/PVC-Free Transition• Dell remains committed to eliminate the remaining uses of BFR, CFR, & PVC as acceptable

alternatives are identified, but a specific timeline has not been identified.

• Thru September 2009, Dell has launched 10 “halogen-reduced” printer, PC and display products and 2 BFR/PVC-free products (G2210, G2410 displays). Standard offerings, not upsell configurations.

Lead-Free Enterprise Leadership• Dell is leading the industry in Lead-Free enterprise products, ahead of anticipated EU RoHS

regulation (2014).

Post Consumer Recycled Content Plastics• >1M lbs of recycled content plastics shipped in 2008, goal is to increase use of recycled content

plastics across the Dell portfolio.

• Identify closed loop recycling technologies.

Industry Trade Associations• Continue to lead industry association activities and encourage suppliers to engage where appropriate

• Dell chairs BFR/PVC-free projects in iNEMI & HDPUG

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BFR/PVC Avoidance Scenarios

Product A Product B0

50,000

100,000

150,000

200,000

250,000

BF

R &

PV

C A

vo

ida

nce

(k

g)

Projected BFR and PVC avoidance:• Product A - a single niche BFR/PVC-free product (converting ~1000 parts)

• Product B - a mainstream product that has a BFR-free main PCB and BFR-free fan housing and impeller only (converting 3 parts)

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Case Study – Dell Packaging Stewardship 2012 Goals

CONTENT

CURBCUBE

10% reduction

in size

40% increaserecycled content

75% curbsiderecyclability

INSPIRON 1318 50% Box Size Reduction

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Regulatory and market-based requirement are increasing across each stage of the product life cycle - raw materials extraction end-of-life

• most of these issues are non-competitive, ripe for consortium engagement• need to keep the big picture in mind… how can we help our customers?

(ex: 98% of CO2 emissions OUTSIDE the ICT sector)

Dell has taken a proactive environmental approach and is committed to delivering environmental benefits to our customers

Now more than ever, industry needs to collaborate to share best practices to positively influence regulations and voluntary standards

• LCA data can be a powerful tool, if used properly

iNEMI can play a critical role as the industry “environmental data clearinghouse”. ITI can partner to help prioritize data needs and lobby strategy.

Summary

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THANK YOU