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Xerox Smarter Ways to Green

Patricia CalkinsVice President, Environment, Health & SafetyXerox Corporation

Thought Leadership Summit on SustainabilityAugust 10, 2010 Washington DC

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Environmental Sustainability

What is sustainability & why should we care?

How has Xerox approached this challenge?

How does this flow through to our products & services?

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Sustainability

Social challenges:4 billion people live on <$4/day*

Economic opportunities:Developing economies targeted for top line growth

Environmental challenges

Not just a ‘nice to have’… A fundamental for business

Why is Sustainability Important?

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Smarter Ways to Green

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Introduces first product to make two-

sided copies

1969

Introduces "power down"

mode

1982

Introduces a recycled grade

of cut sheet paper

1973

Joins ENERGY STAR as charter

partner

1993

Waste toner recycling starts;

ISO 14001 for major

manufacturing sites

1997

2003

Joins EPA Climate Leaders;

Paper Supplier Rqmts launched

2007

Achieves > 10% reduction in

Greenhouse Gas Emissions; boosts

goal to 25% by 2012

2008

Introduces Sustainability

Calculator

2009

Achieves 20% reduction in

Greenhouse Gas Emissions;

Launches ColorQube

Xerox started this journey many years ago

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A quantitative approach

Value chain – find the leverage points

Economically driven

Quick payback – easy wins

Smarter Ways to Green

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Green IQ Quiz: Environmental Footprint

What best represents the environmental footprint of office printing?

A. The number of cartridges sent to landfill

B. Heat load of all the printers in the building

C. Air emissions from the electricity generating plants that power your printing devices

D. The total environmental burden –including energy, greenhouse gases, solid waste – across the life cycle of printing

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X

extraction

chemical mfg

fabrication

assembly

logging

chemical mfg

paper mfg

transportation

packaging

energy

Environmental Footprint of Printing

Correct answer is D

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Xerox goals comprehend footprint of printing

Challenge Goal

Carbon NeutralClimate Protection & Energy

Preserve Biodiversity & the World’s Forests

Sustainable Paper Cycle

Preserve Clean Air & Water

Zero persistent, bioaccumulative, toxic footprint

Scope

Waste Prevention & Management

Waste-free Products, Facilities & Customers

Suppliers

Xerox Operations

Customers

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TechnologyTonerPaper

Examples within the Value Chain

Service

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Green IQ Quiz: Paperless Office?

When do you think we will reach the paperless office?

A. 2015

B. 2020

C. Too far out to predict

D. Never

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In Fact: Paperless Office

Green Tip: Move to a Less Paper Office and Choose Environmentally Sound Papers

• The paperless office was predicted in the 1970’s

• Connecting an office to the internet increases paper consumption by 40 percent

• Office workers throw away 45 percent of everything they print by the end of the day

• Some paper – like banner sheets –can have a life of only 30 seconds

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Steps Toward a Sustainable Paper Cycle

Xerox equipment is designed for efficient use of paper:

• Print management features

• Recycled paper runs reliably

• On-ramp to digital document management

• Workflow SW tools

Print Wisely

Responsible Sourcing

Environmentally-sound papers:•Forestry Practices •Paper Mills•Environmentally Sound Paper Offerings

• (FSC, PEFC, SFI)• Recycled Paper

Responsible Use

�Xerox paper, packaging, and prints are recyclable

Responsible Disposal

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Moving to a Less Paper Campus & Office

• Be Selective about what you print & print only the quantity needed

• Duplex – use both sides of paper and print multiple images per page

• Go digital – read, send and store digital documents

• Business benefits:

– Cut paper costs

– Cut storage costs

– Increases productivity

Actions taken:•Set printer drivers to default duplex•Green campaign – print only what is needed

Results*:32% reduction in annual paper use$53K in annual savings

Xerox Customer Cuts Paper Use

*Across 20,000 employees; volume declines also contributed to reduction

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Emulsion Aggregation (EA) Toner

40% – 45% less toner mass

Small and Spherical EA Toner

Conventional Toner

Paper

� Breakthrough process for producing color and black toners:

� Less toner mass per page for smaller toner

� Less toner waste for spherical toner

� Less energy to produce and to print

Paper

New toner technology

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New solid ink print technology

ColorQube waste: 88 pounds

Total waste produced printing 22k pages per month over 4 year life

Comparable Laser MFD: 815 pounds

90% less waste

• Less to manufacture

• Less to transport

• Less to store

• Less to dispose of

less impact on the environment

=

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Technology innovation: Long Life Parts

Protective overcoat increases photoreceptor’s usable life >60%

Reduces the need for replacement cartridges by 43%

Drop-in replacement: no need for product reengineering

Case example: Laser MFP photoreceptor cartridge*

$ Business benefits

$ Reduced workflow interruptions

$ Improved productivity

$ Fewer service calls

Environmental benefits

• Resource savings: 170,000 pounds/yr

• Less waste generation

• Less transportation

Enough energy saved to power 70 homes

*DocuColor 240/242/250/252 and

Work Center 7655/7665/7675

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Optimized Infrastructure

Training Programs

Pre-emptive Maintenance

Remote Service

Xerox Services

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“Greening the Office”: Floor Mapping Example

Desired StateCurrent Situation

Legend

• Overabundant/underutilized assets

• Energy inefficiency

• Wasted manufacturing and materials

• Inefficient maintenance

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Measuring Sustainability Results with Xerox Sustainability Calculator

Reduced energy by 27%Reduced GHG by 26%

Reduced GHGs by 26%

Reduced solid waste by 33%

$$ 34% Reduction in Costs

Baseline Devices 2862

Optimized Devices 1028

Office Optimization Case study*

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Financial Services SectorGlobal Bank client case study

ObjectivesReduce operating cost and boost productivity

Support company green goalsEnable global expansion

Results - Energy reduced by 23%- GHG reduced by 22%- Solid waste reduced by 31%- Paper use reduced by 19%

Approach - Consolidate devices by 87%- Implement two-sided printing

Manufacturing IndustryUS defense contractor case study

ObjectivesAdopt industry best practice print management

Increase employee efficiencyDrive major cost savings

Deliver sustainability benefits

Results - Energy reduced by 25%- GHG reduced by 24%- Solid waste reduced by 31%- Paper use reduced by 19%- Saving delivered – 40%

Approach - Consolidate devices by > 60%- Proactive monitoring

Health Care IndustryPharmaceutical company case study

ObjectivesReduce operating cost and boost productivity

Support company green goalsManaged Print Services across enterprise

Results - Energy reduced by 25%- GHG reduced by 24%- Solid waste reduced by 31%- Paper use reduced by 40%- Paper savings delivered - $90,000

Approach - Consolidate devices 60%- Duplex default & secure print

Higher EducationCanadian University case study

ObjectivesReduce document management costs

Improve information managementEnable a superior academic environment

Results - Energy reduced by 9%- GHG reduced by 10%- Solid waste reduced by 23%- Paper use reduced by 22%- Savings expected: $13.8M (7yrs)

Approach - Replace 1000 units with 400- Duplex printing

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Print Tool Solutions:Integrated Approach to Enabling Responsible Printing

Network

Device

Individual

Print Governance

Device Features

User Behaviors

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Seven Tips to Help Manage Your Print Environment for a “Greener” World

1. Go digital. Read, send & store digital documents

2. Use paper wisely & use sustainably sourced paper

3. Recycle the paper you use

4. Reach for ENERGY STAR®

5. Replace stand-alone office products with multifunction systems

6. Return print/copy cartridges for recycling or go cartridge-free with ColorQube!

7. Seek office equipment designed for remanufacturing or recycling

For more information, please go to: www.xerox.com/greenoffice

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“To us, sustainable development is a

race with no finish line. It requires

leadership that sets high expectations

and clear direction, partnerships that

inspire collaboration and adaptation of

sustainable business practices and

innovation that constantly pushes the

frontier of what is possible.”

Ursula M. BurnsChief Executive OfficerXerox Corporation

A Race Without a Finish Line

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Learn More About Xerox’s Approach to Sustainability

Xerox’s “Report on Global Citizenship”available at www.xerox.com/citizenship

“Environmental Overview” Brochure and Briefing Paper

Articles & Downloads, Sustainability Calculator, e-Newsletters at: www.xerox.com/thoughtleadership

Visit: www.xerox.com/environment