Sustainability Report - Dell

• Retired Dell-owned equipment, customer returns and excessspare parts: Dell-owned equipment that is retired, computerproducts returned within 30 days of purchase that can berefurbished and resold, and a small amount of excess spareparts (This excess is very small because Dell's build-to-ordermodel allows for very low amounts of inventory.)As part of our continuing effort to build awareness of Dell'sproduct recovery progress, Dell established a recycling goal forfiscal year 2006. Dell publicly announced a goal to increasematerial weight recovered from customers in fiscal year 2006by 50 percent over material weight recovered in fiscal year2005. Consistent with the prior year, calculations for this goalinclude only the first four recovery categories listed. For 2006,Dell recovered 72 percent more product by weight, exceedingour goal of 50 percent. For details on Dell's recovery goalresults from 2005 to 2006, see Figure 31 on page 64.For fiscal year 2007, Dell has established a new, longer-termproduct recovery goal. Our goal is to recover a cumulative 125million kilograms of product by Dell's fiscal year 2010, as measuredfrom our baseline established in fiscal year 2004 (seeFigure 32). Cumulative weight from product includes materialfrom the first four recovery categories previously referenced.Figure 32: Cumulative Worldwide Recovery—ProductRecovery Fiscal Year 2007-Fiscal Year 2010125ExternalGoalLegislative and Regulatory ComplianceDell is dedicated to meeting the requirements of the EuropeanUnion's Directive on Waste from Electrical and ElectronicEquipment (WEEE) and is engaged in the development of country-specificimplementation schemes to comply with the nationalWEEE laws. The directive aims to reduce the waste arisingfrom electrical and electronic equipment, and improve the environmentalperformance of everything involved in the life cycleof electrical and electronic equipment. The countries of theEuropean Union are at different stages of implementation ofthe directive, and some countries are not scheduled to implementthe directive until January 2007.In 2005, Dell implemented compliance programs in accordancewith several new U.S. state regulations related to productrecovery: California's Electronics Recycling Act (CA SB20/50),Maine's Safe Collection and Recycling of Electronics (P.L. 661),and Maryland's Statewide Computer Recycling Pilot Program(H.B. 575).In 2005, Dell also established the initial framework for a globalproduct recovery compliance program. The new program is builton Dell's environmental responsibility policy and incorporatesdue diligence, contractual partner commitments, ongoing audit,and review for compliance. As part of this program, Dell establishedone consistent practice in all regions for reviewing environmentalpartners, their business practices, and their downstreamdisposition channels.Cumulative Kgs (M)10075502502004 20052006 2007 2008 2009 2010Fiscal YearD 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 0 665