Stage 2: Manufacturing and OperationsEnvironmental, Health and SafetyManagement SystemAt <strong>Dell</strong> operations around the world—from manufacturingfacilities to sales offices, from distribution centers to callcenters—we are driving toward excellence in our ownenvironmental, health and safety (EHS) performance.<strong>Dell</strong> uses a formal systems approach to manage our EHSprograms. Following international standards such as ISO 14001and OHSAS 18001, as well as the rigorous requirements of theOSHA VPP (Occupational Safety and Health AdministrationVoluntary Protection Programs) in the United States, <strong>Dell</strong> hasestablished comprehensive procedures and practices designedto maintain a safe and healthy workplace, as well as protectthe environment.All of <strong>Dell</strong>'s manufacturing sites are certified to the ISO 14001Environmental Management System standard. During fiscalyear 2006, three other <strong>Dell</strong> organizations also received ISO14001 certification: the Product Group's product developmentactivities; our Worldwide Procurement's Supplier Engineeringand Quality organization; and the U.S.-based Asset RecoveryServices organization.<strong>Dell</strong>'s manufacturing sites in Ireland, China and Malaysia arealso certified to the OHSAS 18001 Occupational Health andSafety management systems standard. In the United States,each manufacturing facility is working toward VPP certification.Nine of our larger office buildings have already achieved VPPStar status, and one more has been audited and recommendedfor Star certification.The EHS management system at <strong>Dell</strong> involves several keycomponents, including:• identifying health and safety risks at each site and thesignificant environmental aspects and impacts of ouractivities, products and services• setting EHS goals, measuring performance and reviewingprogress• establishing procedures to reduce or control the risks andimpacts, respond to emergencies, and take correctiveactions• communicating policies and requirements, and providingappropriate training to employees, contractors and others at<strong>Dell</strong> sites• maintaining adequate records and other documentation• auditing regulatory compliance and performance of themanagement systemEnvironmental Programs<strong>Dell</strong> operates a number of different types of facilities in theAmericas, Europe, Middle East, and Africa (EMEA), and Asia-Pacific/Japan (APJ) regions, including manufacturing, distribution,and office buildings for customer contact and businessadministration. Throughout our operations, programs have beencreated or enhanced to manage and reduce impact to the environment.We focus our environmental programs in two keyareas: pollution prevention and resource reduction.Pollution Prevention ProgramsPollution prevention involves reducing waste, emissions, andother discharges at our facilities. The following informationdescribes the sources of such materials, and <strong>Dell</strong> programs thatminimize any resulting impacts on the environment. (For examplesof pollution prevention activities at our facilities aroundthe world, see "Regional Highlights" on page 47.)Waste Management and Spill PreventionOne of the most significant environmental aspects of <strong>Dell</strong>'soperations is the generation of non-hazardous wastes such ascardboard, plastics and waste paper. In our manufacturingoperations, most of the waste is related to packaging materialsfrom parts and supplies we bring in to assemble computers.Our office-based operations also generate paper wastes, aswell as toners, ink cartridges, and related materials. Other nonhazardouswaste generated at our facilities includes that whichcomes from food preparation and serving, housekeeping andcleaning, and facility and equipment maintenance.It is <strong>Dell</strong>'s practice to minimize the generation of waste throughour Reduce-Reuse-Recycle programs (see "Resource ReductionPrograms" on page 45). Wastes that cannot be recycled orreused are disposed of according to local regulatory requirementsand available disposal methods. The percentage of nonhazardouswastes from our global manufacturing and largeU.S.-based office campuses that is disposed of by landfill continuesto improve, as shown in Figure 13 on page 45.Our manufacturing facilities generate only small quantities ofhazardous or regulated wastes. The hazardous waste that isgenerated is predominantly related to typical equipment andbuilding maintenance operations, and includes such materialsas oil, fluorescent light bulbs, cleaning chemicals, and paint.We also generate a small amount of waste in our refurbishedproduct touch-up process. Such wastes are recycled wheneverfeasible. Hazardous wastes are handled, transported and disposedof according to regulations for each location.At many of our manufacturing and office sites, <strong>Dell</strong> uses standbyelectrical generators to provide emergency power for operatingbuilding life and safety systems and for data backup in the44 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 6
Figure 13: Waste Disposed by LandfillFigure 14: Recycled and Reused Rates1001008080Percentage6040Percentage6040202002000 2001 2002 2003 2004 2005 2006Fiscal YearData are for global manufacturing sites and large U.S. offices.02004 2005Fiscal Year2006event of power failure. Some facilities also have diesel-fueledfire pumps to provide for adequate water pressure for buildingfire sprinkler systems. Diesel fuel for use in the generators andfire pumps is stored in double-walled tanks and inside containmentstructures. Our facilities have spill prevention, containmentand counter-measure or contingency plans in place tominimize the impact of potential leaks or spills from fuel storagetanks, as well as from hydraulic fluid leaks from wastecompactors, dock levelers and other equipment. As a practice,<strong>Dell</strong> does not store hazardous materials, other than dieselfuel, outdoors.Wastewater ManagementWastewater is not generated in <strong>Dell</strong>'s manufacturingprocesses. Wastewater is generated as a result of water usein cafeterias and canteens, restrooms, and building operations(such as cooling towers), and general facility housekeeping andcleaning. Wastewater discharges from most of <strong>Dell</strong>'s facilitiesare directed to local municipal sanitary sewage treatment facilities;in some locations, on-site sanitary sewage treatment orpre-treatment systems are in place.Air EmissionsBecause most of our assembly processes do not involve the useof chemicals, there are no appreciable air emissions from <strong>Dell</strong>manufacturing operations. We operate one small paint spraybooth in our product refurbishment center, which is used forhand-applied touch-up spray painting. The estimated emissionsfrom this operation are less than 600 pounds per year ofvolatile organic compounds (VOCs).Other sources of air emissions that are generated by <strong>Dell</strong>operations are the testing and occasional operation of emergencystand-by electrical generators, and minor sources suchas building maintenance and facility cleaning operations.RecycledResource Reduction ProgramsResource reduction involves minimizing the consumption ofnatural resources and energy. Categories of resources used in<strong>Dell</strong> operations include: consumable materials used in manufacturingand office areas (such as shipping pallets, paper andoffice supplies), energy (electricity and gas), and water.Throughout our operations, employees are encouraged to lookfor opportunities to use less of a given resource, or to identify amore environmentally friendly alternative. For examples ofresource reduction activities at our facilities around the world,see "Regional Highlights" on page 47.Reduce, Reuse and Recycle ProgramsReusedData are for global manufacturing sites and large U.S. offices.As mentioned in the "Waste Management and Spill Prevention"section on page 44, <strong>Dell</strong> manages a significant amount ofincoming packaging materials. Wherever possible, wastes arereduced by modifying processes and by identifying opportunitiesfor reuse and recycling.<strong>Dell</strong>'s Reduce-Reuse-Recycle programs enable employeesto focus on projects that reduce the amount of resourcesconsumed, directly and indirectly. Our preferred option is toreduce the amount of materials we use. Opportunities for reuseand recycling are also important techniques in reducing ourenvironmental footprint.<strong>Dell</strong> continues to maintain a high rate overall for reusing andrecycling non-hazardous waste. In fiscal year 2006, the reuserate was approximately 11 percent and the recycling rate wasover 79 percent, as shown in Figure 14.<strong>Dell</strong> operations also have ongoing paper use reductionprograms. In our U.S. office and manufacturing facilities, theD 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 0 645