Cradle to Grave

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Cradle to Grave

• Institute of MedicineRoundtable on Environmental
  Health Sciences, Research and Medicine

October 13, 2004 Jack C. Azar Xerox Corporation
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Cradle-to-Grave Extended Producer Responsibility

• Key Factors for Success
• Designing for product life cycle
• Quality maintained through life cycle
• Market acceptance of reuse / remanufacture
  concept
• Economically viable
• Challenge for consumer business

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Figure 1Product Life Cycle
Raw Materials
Fabricate New Parts
Build Products
Deliver
Process Parts for Reuse (Equipment
Remanufacture or Conversion)
Customer Use
Return to Xerox
Recycle Parts
Dismantle
Recycle Materials
Sort/Inspect
Disposal Goal Zero to Landfill
Alternative Uses
X
Xerox Closed-Loop Process
Third party
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Figure 2Extending the Product Life
CycleDesigning for Product Conversion
significant waste reductions
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Figure 3Establishing Formal Recovery Recycle
ProcessesUtilizing a reuse/recycle hierarchy
Recovery Process
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Figure 4Establishing Formal Recovery Recycle
ProcessesUtilizing a reuse/recycle hierarchy
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Figure 5Remanufacture/Reuse ResultsXEROXS
PROGRESS TOWARDS WASTE-FREE

• 161 million pounds of waste diverted in 2003
• Over 1.5 billion pounds of waste diverted from
  landfills since 1991

Waste Diverted from Landfills in 2003
?
Supplies 17M lbs.
Total 161M lbs.
Equipment 144M lbs.
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Figure 6Energy Savings From Reuse
Note Data cover the remanufacture and
reuse/recycle of Xerox equipment and parts at
Xerox facilities and those of our contract office
equipment manufacturer, Flextronics.
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Figure 7Avoided CO2 Emissions from Reuse
Note Data cover the remanufacture and
reuse/recycle of Xerox equipment and parts at
Xerox facilities and those of our contract office
equipment manufacturer, Flextronics.
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Extended Producer Responsibility

• Environmental gains primarily made on back-end of
  the process
• Product recovery and recycle/reuse
• Outsourcing of manufacture can be part of the
  process
• OEM sets requirements for remanufacture/reuse
  process
• Less leverage with raw material/parts/component
  suppliers
• Primary suppliers serve many OEMs
• Foreign sourcing

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Figure 8Environmental, Health Safety
Requirements Across the Supply Chain
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Extending the Reach of Xeroxs Waste-Free Goal

• Environmentally Responsible Paper Sourcing
• Corporate position adopted in 2000
• Supplier requirements issued in 2003
• Recycled offerings expanded in 2003 - 2004

Xerox Corporation sources its paper from
companies committed to sound EHS practices and
sustainable forest management in their own
operations and those of their suppliers...
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Xeroxs Environmental Paper Sourcing Initiative

• Driven by Customers
• Protects Brand
• Dependent on Supplier Partnerships
• Consistent with Xeroxs Values

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Xeroxs Environmental Paper Sourcing Initiative

Raw Materials
Protects Xerox Brand
As one of the largest brands of cut-sheet paper
in the world, Xerox recognizes its obligation to
ensure the responsible management of forests that
provide raw materials for the production of paper.
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Xeroxs Environmental Paper Sourcing Initiative
Raw Materials
Key Elements of Supplier requirements

• Commitment to compliance with all EHS
  requirements
• An effective mill environment management
  system
• For supplier-managed forests
• Third party certification to sustainable
  forest management
• Fiber procurement
• Third party chain of custody certification to
  ensure
• No illegal wood
• No fiber derived from forest areas of
  significant ecological or cultural importance
• Suppliers practices sustainable forest
  management

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Xeroxs Environmental Paper Sourcing Initiative
Raw Materials
Dependent on Supplier Partnerships

• To Date
• 82 percent of the 60 Xerox suppliers
  worldwide are in compliance with requirements
  or will comply by year end 2004.
• These suppliers represent more than 90
  percent of paper Xerox supplies to customers
• More than 95 percent of the paper Xerox
  supplies is elemental chlorine free.

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Xeroxs Environmental Paper Sourcing Initiative

Raw Materials
Challenges and Risks

• Challenges
• Small paper mills/converters may
• have a difficult time complying
• with the requirements
• Culture barriers in
• South America Far East
• Trade barriers in India insulate
• the country from global market
• pressure

• Risks
• Suppliers source from some
• controversial geographical areas
• making Xerox Corporation
• vulnerable to environmental
• activitists.
• Greenpeace Europe Northern Finland
• North America - Buy Good Wood
• Campaign