Raising the Global Bar:St d d & C iStandards & ConvenienceAugust 2008August 2008

DELL CONFIDENTIAL 1

Dell Believes No Computer Should Go To WasteKeep environmentally sensitive materials out of landfills, enable materials to be recycled or reused, and help conserve natural resources.

Dell Global Takeback ProgramsPrograms

Free Consumer Recycling and available Asset Recovery Services

Free Consumer Recycling, Asset Recovery Service Planned

No Standard Services, Subject to Review Upon Request

Environmental Partner (EP) StandardsSta da ds

Framework for Responsible Recycling1. Corporate Beliefs

– Dell’s Environmental Guidelines2. Due Diligence

– Global Partner On-boarding Processesg3. Contractual Partner Commitments

– Asset Recovery Services AgreementAsset Recovery Services Agreement4. Sustained Compliance

– Ongoing channel auditsOngoing channel audits

EP Standards…1. Corporate Beliefs1. Corporate Beliefs

d i i i h l i l1. Recovery and Waste Disposition Channels Environmental Guidelines (established June 2004, revised annually)

2. Reuse Disposition Channels Guidelines Environmental Guidelines (established 2004, revised annually)

3. Data Destruction Channels Guidelines (established 2007, revised annually)revised annually)

EP Standards…1. Corporate Beliefs

Dell’s Recovery and Waste Disposition ChannelsEnvironmental Guidelines established June 2004, revised annually

Prevent Waste and Pollution

Be a Responsible Neighbor

Continually Improve and Communicate our

Performance

M i i E i t ll iti T k d d t d f• Maximize re-use opportunities and minimize disposition (landfill and incinerate) of end-of-life electronics.

• Environmentally sensitive material will not be exported from developed to developing countries either directly or through

• Track and document end-of-life electronics through the proper disposition channels

• Show the final disposition of all waste materials in

• Partners shall either be brokers, refurbishing operations, or recycling or disposal operators who have or are implementing

intermediaries, unless the Worldwide Dell Asset Recovery Services Council has approved the disposal channel (Developed

all waste materials in tracking information.

have or are implementing comprehensive environmental and safety management system (s).

• Partners must meet all

( pcountries can be defined as those members of Organization for Economic Co-operation and Development).

environmental, transport, and EH&S regulations.

Development).

December 2007

EP Standards…1. Corporate Beliefs

Dell’s Reuse Disposition Channel Guidelines Environmental Guidelines established 2004, revised annually

Maximize Reuse Opportunities

Functionally Test Equipment

On-board and Maintain as Dell EPs Partners

Involved in the Sorting of Material or Equipment

• Maximize re-use opportunities and by returning functional refurbished systems to the

• All equipment with potential reuse capacity will be fully tested and functional when marketed or

• All partners who sort equipment for testing or disposal/recycling purposes must be on boarded asrefurbished systems to the

secondary market.• Commit to responsible recycling

of materials with no reuse or refurbishment value.

• EPs must implement and

and functional when marketed or distributed as a refurbished product and is clearly labeled as refurbished by the EP.

• No product that is untested or non-functional will be marketed

purposes must be on-boarded as a Dell EPs, and are required to pass on-boarding and annual audits.

• The disposition of all materials will be tracked and documented, • EPs must implement and

maintain and environmental management system (EMS) where allowed by law,

• The entire disposition channel must comply with all applicable

or distributed as refurbished for reuse and shipped either domestically or internationally

• Data on refurbished equipment is responsibly handled by

,whether refurbished and end-of-life electronics.

p y ppenvironmental, transportation and health and safety regulations.

refurbishers through the use of Dell’s Data Destruction standard. December 2007

EP Standards…1. Corporate Beliefs

Control and Destroy Data Maximize Reuse Opportunities

Dell’s Data Destruction Channel Guidelinesestablished 2007, revised annually

on Hard Disk Drives

• Hard disk drives are handled in a controlled manner from point of collection

• Dell endeavors to maximize re-use opportunities Hard disk drives that meetcontrolled manner from point of collection

until the data has been verified as overwritten or the drive physically destroyed.

• Data on hard disk drives is responsibly

opportunities. Hard disk drives that meet standard minimum technology specifications and are able to be refurbished and placed back on the secondary market whether for profit or not f fit i i it

p yhandled by Dell or its EP through Dell’s Data Destruction Standard.

• Hard disk drives slated for physical destruction are adequately stored in a secured area until the are rendered

for profit, is a priority. • Dell and our EPs are commited to the

responsible recycling of materials with no reuse or refurbishment value, endeavoring to minimize the use of processes thatsecured area until the are rendered

inoperable and unreadable.• Data on hard disk drives is destroyed by a

minimum of a three pass data wipe using an automated overwrite script.

to minimize the use of processes that result in landfill and incineration of end-of life electronics per the policies set out in Dell’s Recovery and Waste Disposition Channel Guidelines. H d d i ith f il d t t

p• All Dell EPs are contractually obligated to

adhere to these guidelines.

• Hard drives with failed sectors are not made available for reuse.

December 2007

EP Standards…Framework for Responsible Recycling

1. Corporate Beliefsp– Dell’s Environmental Guidelines

2. Due Diligenceg– Global Partner On-boarding Processes

3. Contractual Partner Commitments3. Contractual Partner Commitments– Asset Recovery Services Agreement

4 Sustained Compliance4. Sustained Compliance– Ongoing channel audits

EP Standards…2. Due Diligence –

• Process is standardized and used Globally

gGlobal Partner On-boarding Process

– Global cohesiveness on the standard– Global consistency in auditing partner

Global approval required prior to on boarding of a new ITAD– Global approval required prior to on-boarding of a new ITAD service provider

• Audit Protocol addresses a potential provider’s adherence to

EH&S l ti l l t th it i hi h th d– EH&S regulations local to the community in which they do business

– Maintenance of all appropriate licenses and permitsAbilit t k th fi l ti l f ll t i l t d t– Ability to know the final resting place of all material generated out of their facility – No irresponsible export of materials

– Site, Asset & Data Security proceduresISO 14001 d OHSAS 18001 tifi d

9

– ISO 14001 and OHSAS 18001 certified

EP Standards…2. Due Diligence –

D t

gGlobal Partner On-boarding Elements

LogisticsEHS

Data Destruction

GLOBALDownstream Takeback RiskManagement

Program

Downstream Channels Security

MachineTesting

FinancialReview

Business3rd Party Service Agreement

Business ProcessReview

3rd Party

3rd Party

DELL

EP Standards…Framework for Responsible Recycling

1. Corporate Beliefs– Dell’s Environmental Guidelines

2. Due Diligence– Global Partner On-boarding Processes

3. Contractual Partner Commitments– Asset Recovery Services Agreement

4. Sustained Compliance– Ongoing channel audits

EP Standards…3. Contractual Commitments

Dell’s Contract with all Environmental Partners (D 2007 d t )(Dec 2007 updates)– ISO14001 certification– OHSAS18001 certificationOHSAS18001 certification– Right to audit at any time– Liability and environmental insurance – Proof of Insurance– Data cleansing standards– Stringent materials export requirements

N i l b– No prison labor– Item level reporting– Data disposition (certificates of destruction and / or dataData disposition (certificates of destruction and / or data

destruction)– Dell Certificate of Disposal for all end of life materials

EP Standards…Framework for Responsible RecyclingFramework for Responsible Recycling

1. Corporate Beliefs– Dell’s Environmental Guidelines

2. Due Diligence– Global Partner On-boarding Processes

3. Contractual Partner Commitments– Asset Recovery Services Agreement

4. Sustained Compliance– Ongoing channel audits

EP Standards…4. Sustaining Compliance –g p

EP Compliance ReviewEnvironmental, Health and Safety

Data Destruction– General OperationsSa ety

– Siting and General Operations– Housekeeping– Storm Water Discharges

Air Emissions

– General Operations– Software-Based Destruction– Physical Data Destruction– De-Gaussing Operations

– Air Emissions– Water Discharges– Hazardous Materials– Hazardous Wastes

Logistics– Permits and Licenses– Transboundary Shipments– Asset Security

– Emergency Prevention and Planning

– Final Materials Disposition– Employee Safety

Asset Security– Employees and Drivers– Trucks and Trailers– In Transit Storage

Routes Schedules and Transfers– Management SystemsSecurity

– Personnel SecurityFacility Security

– Routes, Schedules and TransfersAudit Remediation Action Plan (for recurring audits)

– Corrective Action Documentation– Facility Security– Asset Security

– Downstream Change Notification Documentation

– Downstream Audit Reports

EP Standards…4. Sustaining Compliance –

Ongoing Channel A dits

EnvironmentalSite AuditSit i it d d t i f

Ongoing Channel Audits

EnvironmentalPartner

Site visit and document review of EHS, Security, Data Destruction &

Logistics

Tier 1 Vendor Scrap Metals,

Printed Circuit Boards, Cables,

Tier 1 VendorPaper, Wood,

Plastics

Tier 1 VendorRefurbished

systemsDownstream Channel Audit Batteries

Tier 2 Vendor

Mixed scrap metal for recycle

AuditProcess and document review of

materials volumes transferred & shipment documentation/

th i ti f t f f

Tier 2 Vendor

Retail ResaleTier 2 Vendor

Plastics reuse as commodity

Tier 2 Vendor

Scrap Aluminum for recycle

d

yauthorizations for transfers from

Partner to Tier 1 and from Tier 1 to Tier 2 (to final disposition

for sensitive materials)

Tier 2 Vendor

Paper for recycle

Tier 2 Vendor

Scrap circuit boards for

precious metals recovery

Convenience...Dell’s Takeback Program Portfoliog

Free Branded

Value R

Compliance Programs Branded Recovery Recycle

g

Producer Responsibility“Free & Convenient”

Asset Recovery Services

“Maximize Returnon Assets”

Donation DonationOn-site DataDestruction

Free w/ Purchase

All programs must be compliant

Lease Return

Non-profitCollection

Compliance

Policies &Standards

Laws &Regulations

Convenience…Commercial Takeback Approach

321pp

3DISPOSITIONOPTIONS*

AUDIT, SORT, & DATA DESTRUCTION2ASSET REMOVAL

& LOGISTICS1ResellResell

Recycle

Return to Lease

Redeploy• Plan• Pack• Transport

• Data Security• Audit and Assess• Asset tag removal• Detailed Reporting

Redeploy

Donate*some geographical limitations may apply

• Global compliance with environmental laws & regulations for recycling

• Stringent controls over data security

• Detailed audits of environmental partners and downstream channels

• Flexible disposition options17

Convenience…Consumer Takeback ApproachConsumer Takeback Approach

Free Branded Mailback

1Request Service

2Pack &

Schedule

3Transport & Recycle

1Request 2 3

Free with Purchase of a Dell Mailback

qRecycle Kit at

PurchasePack &

ScheduleTransport & Recycle

Convenience…Consumer Takeback ApproachConsumer Takeback Approach

1

Non-Profit Collection & Collection Events

21Self-

Transport

2Drop-off

Donation

1Request Service

2Pack &

Schedule

3Transport & Recycle

QuestionsQuestionsKristyn Rankin

Compliance Programs ManagerDell Global Services Delivery

Kristyn rankin@dell.coms y _ a @de co