Sustainability Report - Dell

• Goal: Maintain Dell's current minimum average of 28percent post-consumer recycled content for office suppliesused in Dell's operations, and encourage suppliers andcontractors to match this percentage for work producedon behalf of Dell.Results: Dell achieved an average of approximately 29percent in fiscal year 2006, and worked with our copy centerand copier paper providers to attain similar percentages.• Goal: Within 12 months (by October 2005), achieve 30percent post-consumer recycled content in corrugatedpackaging materials.Results: Dell met the goal of 30 percent post-consumerrecycled content.Outlook for Attainment of Fiscal Year 2007-2008 GoalsAlthough many of our long-term challenges will requiremonitoring, the outlook for attainment of fiscal year 2007-2008goals remains excellent. Several new sources of supply forboth FSC-certified and post-consumer recycled content paperhave been identified. Qualification of these mills as preferredsources is underway.Demand for post-consumer waste generated in the Americasand destined for export to Asia continues to provide challengesto attainment of Dell's overall recycled content goals. Whilethe current market for recycled fiber remains strong, Dell willcontinue to seek alignment with partners from key global areasin which paper producers can economically use fiber wastestreams as a source of raw material input.The availability of FSC-certified sources will continue torequire close monitoring as Dell's goals for certified fiberincrease. While there is evidence that the use of certified fiberas an input to the papermaking process is increasing, theinconsistent certification criteria of various systems intended tocertify responsible forest practices distracts from the path forimprovement in this area. It is Dell's expectation that theconclusion of this debate will lead to improved availabilityof responsibly sourced fiber.Description of Key Changes in Sourcing for Fiscal Year 2006During fiscal year 2006, Dell began sourcing catalog paperfrom a European mill that offered 100 percent recycled and 80percent post-consumer waste paper for a portion of our UnitedPaper CalculatorDuring fiscal year 2006, Dell began sourcing catalog paper from a European mill that offered 100 percent recycledand 80 percent post-consumer waste paper for a portion of our U.S. and European catalog requirements. Thisreplaced a paper containing 10 percent post-consumer waste. Switching to this paper resulted in the followingpositive environmental impacts:10% Post-consumerRecycledContent Paper80% Post-consumerRecycledContent PaperEnvironmentalSavingsEquivalent to…Wood Use 19,200 tons 4,267 tons 14,933 tons 103,385 trees savedTotal Energy307,180 million BritishThermal Units (BTUs)245,271 million BTUs 61,908 million BTUs enough energy saved topower 680 homes/yearGreenhouse Gases 60,222,438 lbs CO 2equivalent38,995,857 lbs CO 2equivalent21,226,580 lbs CO 2equivalent1,927 cars/year off theroadWastewater 143,097,488 gallons 108,021,664 gallons 35,075,824 gallons enough water to fill53 olympic sizedswimming poolsSolid Waste 21,457,941 pounds 12,699,639 pounds 8,758,302 pounds avoidance of 313garbage trucks ofwasteEnvironmental impact estimates were made using the Environmental Defense Paper Calculator. For more informationsee http://www.papercalculator.org.56 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