Sustainability Report - Dell

Stage 1: Product Concept and DesignThe Total Product Life CycleThe electronics industry, as well as other industry sectors, isfacing an increasing number of demands focused on reducingthe environmental impacts of how products are designed,manufactured, used, and managed at end-of-life. As evidencedthrough "green" procurement policies and emerging Europeanlegislation such as Registration, Evaluation and Authorisationof Chemicals (REACH) and Energy Using Products (EuP), theglobal marketplace is increasingly demanding product environmentalimprovements, as well as increased access to environmentalinformation that relates to the product life cycle.Globalization within the industry has impacted managementof the product life cycle by involving more participants in theprocess, which makes the process more complex. This alsoposes unique challenges in determining how environmentalaspects of one stage in the life cycle (material selection, forexample) impact another stage in the cycle (end-of-lifemanagement, for example).In order to meet these challenges, Dell established the Designfor the Environment (DfE) Program to integrate environmentalattributes into each aspect of the product life cycle, fromsupplier management during component manufacturing to endof-lifesolutions. This methodology encourages reduction of themost significant environmental aspects of the life cycle withoutunnecessarily burdening the supply chain.Environmental Management SystemImplementationDell's Product Development Group has recently achievedcertification to the ISO 14001 standard, an accomplishmentwhich took approximately two years to complete. Third-partyauditing verified that our design activities are compliant withthis internationally recognized standard for environmentalmanagement system criteria.Establishing a formalized approach to our planning, goalsetting, auditing and corrective actions will help support regulatorycompliance and continual improvement in our productdesign. A good example of where ISO 14001 certification willsupport adherence to new legislation is in EuP. This law refersto ISO 14001 as a way to demonstrate compliance to a specificcomponent of the requirement. Becoming certified is a way inwhich Dell has enabled our strategy of being proactive.Gaining certification for Dell's product development organizationis part of our overall corporate ISO 14001 certificationprogram, which now covers all manufacturing sites aroundthe world and includes organizations such as Services,Power Management Pilot—Twin FallsDell activated the power management features onmore than 550 client systems using the EnvironmentalProtection Agency's (EPA) free EZ-GPO software andsystem policy at our Twin Falls, Idaho call center.Estimated savings were calculated based on the followingassumptions:• 16 system use hours per day, 7 days per week• Suspend monitor–10 minutes and Suspendsystem–15 minutesUsing Cadmus Advanced Power ManagementCalculator, the projected savings of implementing thesefeatures is an estimated 140,000 kWh, and $10,000 inenergy cost (a 29 percent reduction), while preventingover 100 Tons 1 CO 2 of pollution.The benefits of using computer power management are:• Reduction in peak load demand charges. (Many utilitiescharge $150-$200 per kW per year.)• Reduction in cooling loads– A typical office building with internal heat loadand moderately efficient systems saves anadditional 15 percent.– In southern climates, savings could be 30 percentor more.1Tons CO 2 represents the tons of carbon dioxide from electricitygeneration emissions avoided because of energy savings from powermanagement. 2000 pounds equals one ton.Procurement and Logistics. For more information, see "Stage 2:Manufacturing and Operations" on page 44.Product Energy Efficiency and ImprovementsENERGY STAR ProductsDell has actively participated in the Environmental ProtectionAgency's (EPA) ENERGY STAR program for more than a decade.During this time, Dell has offered many desktop, workstation,notebook, printer, and display models that meet the requirementsfor ENERGY STAR qualification. Our decision to designproducts to meet these requirements has reduced energy consumption,thereby reducing electricity costs for our customersand reducing environmentally-sensitive materials producedduring power generation. Dell's unique build-to-order modelincreases efficiency and eliminates waste while allowingsystems to be built to customer specifications that meetENERGY STAR qualifications.D E L L S U S T A I N A B I L I T Y R E P O R T • F I S C A L Y E A R 2 0 0 635