XEROXEnvironment Leadership

Anne StocumEnvironment, Health & Safety

Xerox Corporation

Agenda

Xerox Business

Areas of Concern & ProgressSome examples

Toward Sustainability

Xerox is the global leader in the document management business, offering the most innovative array of document products, services and solutions in the industry.

Markets:• High End Production Printing • Networked Offices• Services

•Primary Technologies:•Electrophotography = Xerography•Inkjet - Solid, Liquid

•Print, Copy, Scan, Fax•Supplies (Paper, Toner Cartridges)•Software Solutions

•Photo-optics•Materials•Electronics (Digital) Architecture

What is Xerography?

Webster’s Definition:A process for copying graphic matter by the action of light

on an electrically charged photoconductive insulating surfacein which the latent image is developed with a resinous powder.

XeroXero--graphygraphy = = DryDry--Writing (Greek)Writing (Greek)

The Xerographic Process

Photoreceptor

•Safety of particulates (toner)

•Hazardous materials usage and emissions

•Waste reduction

•Energy Efficiency

•End of life disposition

•Safety of particulates (toner)

•Hazardous materials usage and emissions

•Waste reduction

•Energy Efficiency

•End of life disposition

Areas of Concern

...Most Common to the I.T. Industry

Toner Safety (Particulates)Safety of Toner Questioned in 1979

Near-Term Actions (1979 - 1982)

Identified and eliminated mutagens from carbon black

Set quality standard for carbon black suppliers

U.S. EPA: What are chronic

health effects of Xerox toners?

Long-Term Initiative (1983 - Today)

Xerox Health Studies− To understand chronic

effects of toner inhalation (particulates)

Toner SafetyXerox Health Studies

Mortality Study

Employee Health Study

Rodent Inhalation Study

0

5

10

15

mg/m3

OSHADutchXerox

Workplace ExposureLimits Lowered in 1988

Major Finding No evidence of chronic health effects

due to toner exposure.

Major Benefit Health studies provide a strong basis for the protection of Xerox employees and customers

Xerox: Industry BenchmarkTotal Dust 1/6th OSHA Limit

Resp. Dust 1/12th OSHA Limit

Total Dust Respirable Dust

(Cohort size 35,000) (~7500 employees)

Toner SafetyColor, Small Particles

Xerox’s Core Business over the next 5 years will continue to rely on “mmaarrkkss onon ppaappeerr”

Chemical TonersTechnology Advance - - a new process to

manufacture toners

Chemical TonersTechnology Advance - - a new process to

manufacture toners

•Higher quality color images

•Less energy intensive to produce and use

•Less material / image

Benefits:

•Smaller particle size (5 um)

•New materials

Concerns

New Toxicology Methods

Employed

•Safety of particulates (toner)

Hazardous materials usage and emissions

•Waste reduction

•Energy Efficiency

•End of life disposition

•Safety of particulates (toner)

Hazardous materials usage and emissions

•Waste reduction

•Energy Efficiency

•End of life disposition

Areas of Concern

...Most Common to the I.T. Industry

Material Restrictions / BansAn Increasing Challenge

Res

tric

ted/

Ban

ned

Mat

eria

l

1975 1985 1995 2000 2005

ozoneozone

ozone-depleting substances

some chlorinated solventsNi/Cd batteriessome pigmentscarbon blackvolatile organicsheavy metals (packaging)arsenic

ozone-depleting substances

some chlorinated solventsNi/Cd batteriessome pigmentscarbon blackvolatile organicsheavy metals (packaging)arsenic

polyvinyl chloridepersistent &bioaccumulativechemicalsazo dyesendocrine disruptors?more chlorinated solventssmall particles

polyvinyl chloridepersistent &bioaccumulativechemicalsazo dyesendocrine disruptors?more chlorinated solventssmall particles

asbestosPCBsasbestosPCBs

BannedRegulated

leadhalogenated flameretardantsmercurycadmiumhexavalent chromiumselenium

leadhalogenated flameretardantsmercurycadmiumhexavalent chromiumselenium

Bans/Restrictions Affect:

Electronics Plastic EnclosuresBatteries PackagingImaging Manufacturing Materials Processes

Eco-EfficiencyReduce Hazardous Materials

Replace Metal Alloy Photoreceptors with Organic Photoreceptors (1981 - 1990)

•Selenium, Arsenic •Health concerns•Waste issues

•Selenium, Arsenic •Health concerns•Waste issues

•Eliminated arsenic•Reduced selenium use by >99.5%

•Eliminated arsenic•Reduced selenium use by >99.5%

•Technology advantage•Safe materials •Safe disposal

•Technology advantage•Safe materials •Safe disposal

Eco-EfficiencyReduce Hazardous Materials

Replace Metal Alloy Photoreceptors with Organic Photoreceptors (1981 - 1990)

- Dicholoromethane Exposure limits reduced

- Emissions reduced by 96% since 1991

- Search for substitute unsuccessful

- Dicholoromethane Exposure limits reduced

- Emissions reduced by 96% since 1991

- Search for substitute unsuccessful

Organic Photoreceptor Tradeoff

Dichloromethane: • Organic solvent carrier in manufacturing process• Identified as possible human carcinogen in 1986

Dichloromethane: • Organic solvent carrier in manufacturing process• Identified as possible human carcinogen in 1986

0

400

800

1200

'91 '92 '93 '94 '95 '96 '97 '98 '99 '00

96% reduction in MeCl2 emissions

Thousands of Lbs Emitted to Air

•Safety of particulates (toner)

•Hazardous materials usage and emissions

Waste reduction

•Energy Efficiency

•End of life disposition

•Safety of particulates (toner)

•Hazardous materials usage and emissions

Waste reduction

•Energy Efficiency

•End of life disposition

Areas of Concern

...Most Common to the I.T. Industry

Xerox ApproachEnvironmental Leadership

Product Safety & Occupational Health

EnvironmentalLeadership

Environmental Awareness

1960’s 1960’s -- 1970’s1970’s 2000’s2000’s

Compliance with

Regulations

Xerox Standards

Applied Worldwide

Most Stringent Regulatory & Consensus Standards Adopted

Comprehensive Policy

Xerox Program Evolved with Growing Environmental Awareness

1980’s 1980’s -- 1990’s1990’s

Waste-free products manufactured in waste-free factories to enable customers’ waste-free workplaces

Xerox Waste Free Goal

Life CycleView

End of Life ManagementEnd of Life

Management

Design and Build

Design and Build

Customer Use

Customer Use

….Introduced in early 1990’s

Waste-free products manufactured in waste-free factories to enable customers’ waste-free workplaces

Waste Free Goal

• Minimal use of hazardous substances

• Low plant emissions • Efficient use of energy

and materials• Parts reuse• Equipment

remanufacture

• Minimal use of hazardous substances

• Low plant emissions • Efficient use of energy

and materials• Parts reuse• Equipment

remanufacture

• Energy efficiency

• Low machine emissions

• Paper-saving features

• Return programs for supplies

• Equipment takeback

• Energy efficiency

• Low machine emissions

• Paper-saving features

• Return programs for supplies

• Equipment takeback• Equipment and parts

recovery

• Materials recycling

• Equipment and parts recovery

• Materials recycling

SupplierRelationships

SupplierRelationships

Life CycleView

End of Life ManagementEnd of Life

Management

Design and Build

Design and Build

Customer Use

Customer Use

Air Emission ReductionsU.S. Toxics Release Inventory

(000’s lbs)

0400800

12001600

'91 '93 '95 '97 '99 '00

Product Energy EfficiencyXerox Energy Star products

enable 600,000 tons of avoided CO2 emissions

160 Million lbs waste diverted from landfill

Waste Free GoalBenefits

1990 2000

55%

Dust1990 2000

70%

Ozone

Reductions in product chemical emissions

Life CycleView

End of Life ManagementEnd of Life

Management

Design and Build

Design and Build

Customer Use

Customer Use

0

80

160

2000

Supplies

Equipment

Remanufacturing & Recycling

80% Recycle RateNon-hazardous Solid Waste

0

25

50

75

100

'90 '92 '94 '96 '98 '00

92%

• Energy efficiency

• Low machine emissions

• Paper-saving features

• Return programs for supplies

• Equipment takeback

• Energy efficiency

• Low machine emissions

• Paper-saving features

• Return programs for supplies

• Equipment takeback

Waste-free products manufactured in waste-free factories to enable customers’ waste-free workplaces

Waste Free Goal

• Minimal use of hazardous substances

• Low plant emissions • Efficient use of energy

and materials• Parts reuse• Equipment

remanufacture

• Minimal use of hazardous substances

• Low plant emissions • Efficient use of energy

and materials• Parts reuse• Equipment

remanufacture

• Equipment and parts recovery

• Materials recycling

• Equipment and parts recovery

• Materials recycling

SupplierRelationships

SupplierRelationships

Life CycleView

End of Life ManagementEnd of Life

Management

Design and Build

Design and Build

Customer Use

Customer Use

Energy ManagementOpportunities

Power Modes:

•RUN•STANDBY•LOW POWER•SLEEP•OFF - Auto Off •OFF - Switch Off

• Machine enters energy saving modes automatically

• Machine in these modes 80% of time

• Machines must “warm-up” to be ready to run

ENERGY STAR Program

EPA and Industry work together to set criteria (since 1993)

Internationally recognized and accepted

Common procurement requirement (market incentive)

Typical Office Copier

1990 2000

80%

5034 Document Centre 432DC • Consumes up to 80 % less energy than comparable

1990 model

• While providing increased functionality

ENERGY STAROffice Equipment Results

Worldwide:Xerox ENERGY STAR equipment - 2000

•Avoided 600,000 tons Carbon Dioxideemissions

•Energy saved could light 650,000 U.S. houses for a year

Xerox ENERGY STAR MachinesAnnual Energy Savings (MwH)

0

200,000

400,000

600,000

800,000

1,000,000

1996 1997 1998 1999 2000

Climate change debate & energy “crisis” Increasing pressure for energy efficient products

• Growing international pressure for stricter ENERGY STAR criteria

– 66% stricter criteria in 2003 compared to 1999 levels

– No more “grandfathering”

Energy Star TrendPrinters

0

20

40

60

80

1999 2000 2003

Wat

ts in

Sle

ep M

ode

0-1010*2020-3030-44>44

Beyond Today’s Energy Star• U.S. and European public sector will demand “most” energy efficient

Technology Challenges:

•Energy management of complex systems (digital, networked, multifunction)

•Fast recovery times from energy-saving modes•Fuser technologies important - rapid heating

The Xerographic Process

Photoreceptor

Energy ManagementProcurement Challenges

2001 E.O. 13221

Buy Lowest “Standby” Power

Issues with Lowest “Standby” Power• Not necessary for products already managed under ENERGY STAR program

• Adds another energy criterion for procurement --- potentially confusing

• Could eliminate from consideration products that meet ENERGY STAR criteria

Federal Government

Automatic energy saving modes Manual OFF Switch

1999 E.O. 13123

Buy ENERGY STAR Equipment

• Energy efficiency

• Low machine emissions

• Paper-saving features

• Return programs for supplies

• Equipment takeback

• Energy efficiency

• Low machine emissions

• Paper-saving features

• Return programs for supplies

• Equipment takeback

Waste-free products manufactured in waste-free factories to enable customers’ waste-free workplaces

Waste Free Goal

• Minimal use of hazardous substances

• Low plant emissions • Efficient use of energy

and materials• Parts reuse• Equipment

remanufacture

• Minimal use of hazardous substances

• Low plant emissions • Efficient use of energy

and materials• Parts reuse• Equipment

remanufacture

• Equipment and parts recovery

• Materials recycling

• Equipment and parts recovery

• Materials recycling

SupplierRelationships

SupplierRelationships

Life CycleView

End of Life ManagementEnd of Life

Management

Design and Build

Design and Build

Customer Use

Customer Use

Waste Free GoalParts Reuse and Equipment Remanufacturing

Document Centre 220

“newly manufactured”

Document Centre 440

Conversion

“Factory Produced New Model”

Document Centre 220

“remanufactured”

raw materials

Waste to landfill

GOAL = 0%

equipment remanu-factured

parts made with recycled materials

parts strip,

repair, & reuse

equipment conversion

finished new

products

partsfabrication

Reuse/Recycle Process

suppliers Xerox

recyclingcenter

Goal: optimize financial and environmental benefits...

• Design tools

Designing for RemanufactureIncorporating reuse/recycle into product design

Life cycle costs

Extended life of parts

Easy disassembly

Part reusability

Material recyclability

Key Considerations Implementation

• Design requirements

Reman &DisposalCoding

Reman &DisposalCoding

MaterialGuides

MaterialGuides Product

Life CycleCost Model

Product Life Cycle

Cost Model

• Mandatory review in product development process

• Training

Designing for Product ConversionExtending the concept of remanufacture

Variant 3

Variant 1

Variant 2

Common engine

40 - 60%recycled content60+% recycledSp

eed

or

Func

tion

Time

• Platform design• Parts commonality• Good predictability

of field returns

Product Conversion

• Limitation: product life in the market place

CleanSheet X

RemanX

70 - 90%Reused parts: 0%

Product Remanufacture

Integrating “Remanufacture” with New Build

Teardown/strip

Staging

Sort

Clean

Reprocess

End-of-life machines

Machine frames

PartsAssemble

frameBuild

subassemblies

New parts

Machine assembly

Quality testing

New parts

New or “reman” machines

Document Centre 220

Document Centre 440

Advances in Cleaning TechnologyKey Enabler of Remanufacture/Reuse

199319881970 1998

Traditional solvent-based

cleaning

Traditional solvent-based

cleaningCO2

blastingCO2

blastingAutomated

CO2 blastingAutomated

CO2 blastingNon-

hazardousterpines

Non-hazardousterpines

Eliminate hazardous waste

Reduce cleaning time

Increase part recovery rates

…reduced cost and environmental impact

Evolution of Xerox Part Cleaning Technology

Results

Determine signature for new parts -- an acceptable range for noise, heat, vibration during use

Returned parts with consistent signatures are processed for reuse

Technology - Predicting Part ReliabilityKey Enabler of Remanufacture/Reuse

Xerox Signature Analysis

The Same High Standard for All ProductsEquivalent specifications for reliability, quality and appearanceSame quality assurance processSame guarantees and service agreementsSame performance

Key EnablersFull integration of remanufacture and manufactureTechnologies for predicting part reliabilityBusiness teams assume full responsibility throughout product development process

Ensuring Customer Satisfaction

Supplies: 16M lbs.

Equipment: 142M lbs.

Total:

158,000,000 lbs.

Xerox “Remanufacture” ResultsProgress Towards Waste-Free

More than 1 billion pounds of waste diverted from landfills since 1990Nearly 160 million pounds in 2000

Cost savings of several hundred million dollars annually

ChallengesProduct Delivery and Market Issues

Markets for remanufactured productsMarket acceptance developing slowlyGovernment purchasing is key

New technology increases obsolescence rateCost-effective “recycling” of equipment and materialsInfrastructure development

Need to develop cost-effective regional recyclers (i.e., disassemblers) for products

Partnerships requiredSome industry wideAlliances with suppliers

Recycled/remanufactured content...

Is integral to most Public Sector environmental procurement policies

BUT is often restricted by specifications in U.S. (state/local), Europe and Brazil

A

B

C

D

E

ChallengesProcurement Restrictions

25 States restrict products with used parts

2 states require 100% “virgin new”

EH&S Corporate Policy (updated in 1991)

For All Stakeholders

Protection from unacceptable risk takes priority over economic

considerations

For All Stakeholders

Protection from unacceptable risk takes priority over economic

considerations

For all Operations

Safeguard health, protect the environment &

conserve resources

For all Operations

Safeguard health, protect the environment &

conserve resources

For all Products

Optimize resource utilization & minimize environmental impact

For all Products

Optimize resource utilization & minimize environmental impact

Xerox ApproachGuiding Principles

Commitment to the protection of the environment and the health and safety of its employees, customers and neighbors

Commitment to the protection of the environment and the health and safety of its employees, customers and neighbors

EH&S Corporate Policy (updated in 1991)

Xerox ApproachDeployment

Strategic Goals and Initiatives

Safe Workplace

Eco-Efficiency

Safe Products

Customer Environmental

Satisfaction

HealthyWorkforce

EH&S Standards(applied worldwide)

MaterialsProducts

Remediation

Envirom’tlManage-mentOperations

Integrate EH&S into Product Development Process

DefineProductPlatform & Technology

Deliver Product

Market & Product Strategy

Toward Sustainability

Waste Free Goal

Evolution of Xerox Environmental Leadership Program

Eco-Efficiency

Remediation1980 1985 1990 1995 2000

Business Value

Material Safety

2010

Paper BasedPaper Based

“Old” Industrial Economy“Old” Industrial Economy “New” Knowledge-based Economy“New” Knowledge-based Economy

Toward SustainabilityNew Ways of Doing Business

•Decentralized

•On demand

•Customized

•Reusable

•Decentralized

•On demand

•Customized

•Reusable

Reduced• Paper use • Waste•Energy Use • Inventory

Reduced• Paper use • Waste•Energy Use • Inventory

Xerox’s Core Business…Helping Customers Manage and Deliver Information Effectively

Electronic paperElectronic paper

Digital InformationDigital Information

BookBook--inin--TimeTimeFlowportFlowport

DocuShareDocuShare

• Energy intensive

• Polluting

• Natural resource depletion

• Energy intensive

• Polluting

• Natural resource depletion