xerox corporation · xerox’s annual ethics letter “xerox is committed to protect the...

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E N V I R O N M E N T,

H E A LT H &

S A F E T Y

P R O G R E S S

R E P O R T

X E R O X C O R P O R A T I O N

Xerox Corporation is committed to the protection of the environment and the health and safety of

its employees, customers and neighbors. This commitment is applied worldwide. The following

principles shall govern all business practices in the design, manufacture, procurement, marketing,

distribution, maintenance, reuse/recycling and disposal of products and related services:

� Protection of the environment and the health and safety of Xerox employees,

customers and neighbors from unacceptable risks takes priority over

economic considerations and will not be compromised.

� Xerox operations must be conducted in a manner that safeguards health,

protects the environment, conserves valuable materials and resources, and

minimizes risk of asset losses.

� Xerox is committed to designing, manufacturing, distributing and marketing

products and processes to optimize resource utilization and minimize

environmental impact.

� All Xerox operations and products are, at a minimum, in full compliance

with applicable governmental requirements and Xerox standards.

� Xerox is dedicated to continuous improvement of its performance in

environment, health, and safety.

C O R P O R A T E P O L I C Y

15 Environmental Performance: 2000 Results

21 Environmental Remediation/Compliance Penalties

22 Safe Workplace: Health and Safety at Xerox

24 Community Involvement: Partnerships in Environmental Leadership

25 Awards/Publications and Additional Information

C O N T E N T S

1 To Our Stakeholders

2 Executive Summary

3 Policy and Strategy: Integrating EH&S into Xerox Business

6 Waste-Free Products: Sustainable Product Design

12 Waste-Free Product Goals in Practice

14 Waste-Free Factory: An Ongoing Commitment

T O O U R S T A K E H O L D E R S 1

Before it was popular to do so, Xerox adopted

a policy that protects the environment and

the health and safety of our employees, cus-

tomers and neighbors. We sought to become

a world leader in environment, health and

safety. In the decade since, we have taken

bold steps – sometimes with an uncertain

payoff – to translate our goal into results.

Along the way, the world and our business

have changed. Regulations are more compli-

cated. Customers have higher expectations.

What were once leadership positions are

accepted practice. Each step we took toward

our goal seemed to raise the bar once again.

Yet despite unexpected business challenges,

we have not wavered. We will not take unac-

ceptable risks with the environment or people’s

health and safety in pursuit of economic gain.

This principle is central to the way Xerox does

business in every nation around the globe.

To this end, we have implemented worldwide

initiatives that focus on safety and environ-

mental management systems. For instance,

our Zero Injury program, begun in 1997, has

yielded impressive results according to two

• Our factories continue to reduce air

emissions and solid and hazardous

waste through creative practices and

conscientious stewardship. In 2000,

Xerox factories worldwide recycled 80%

of their non-hazardous solid waste.

As we review the changes in our world and

our marketplace, we are confident that the

Waste-Free goal, which has served us well

in the past, is a worthy compass for the

future. However, this does not mean that

we are standing still. Pressing environmental

problems of the 21st century – such as global

climate change and proliferating electronic

waste – require continued leadership. Every

business must do its part. I pledge that

Xerox will.

industry measures. Between 1997 and 2000

our Total Recordable Incident rate dropped

46% and the Day Away From Work case rate

was cut 41%. In addition, all our major manu-

facturing operations are registered to the ISO

14001 environmental management system

standard. This action drives responsibility for

environmental performance to the operations

level where it is most effective.

We articulate our environmental goal in just

a few words: making Waste-Free Products in

Waste-Free Factories, to help our customers

attain Waste-Free Workplaces. Many of the

achievements detailed in this report are the

direct result of striving toward this goal, deliv-

ering important value – and measurable results

– to our customers, our employees, our share-

holders and our neighbors in the communities

where we do business. Two examples:

• Working with our customers as partners,

our pioneering efforts in remanufacturing

and parts reuse and recycling diverted

nearly 160 million pounds of waste from

landfills in 2000.

Sincerely,

Anne M. Mulcahy

Chief Executive Officer

E X E C U T I V E S U M M A R Y2

E x e c u t i v e S u m m a r y

Despite challenging business conditions, Xerox demonstrated continued progress toward key

environment, health and safety goals in 2000, improving the performance of Xerox products and

facilities for the benefit of our customers, employees and neighbors.

Goal 2000 Progress Worldwide Performance

Customer

Environmental

Satisfaction

Eco-Efficiency

Safe Workplace

• Prevented nearly 160 million pounds of material

from entering landfills through the reuse and

recycling of Xerox equipment and supplies.

• Increased the number of Xerox products meeting

the stringent requirements of the international

ENERGY STAR®‚ Canada’s Environmental Choice

EcoLogo and Germany’s Blue Angel ecolabels.

• Enabled energy savings of more than

800,000 megawatt hours through the sale

of ENERGY STAR-qualified products.

• Improved our safety record with a 17% reduction

in the rate of Total Recordable Incidents and an

11% decline in the Day Away From Work case rate.

• Reduced musculoskeletal injuries among Xerox

employees in our U.S. manufacturing operations

by 57% from a 1992 baseline.

• Beneficially managed 96% of hazardous waste

through treatment, recycling or fuels blending.

• Recycled 80% of non-hazardous solid waste.

Xerox’s four equipment recovery and recycle

operations achieved a 95% recycle rate.

• Increased the number of Xerox manufacturing

sites registered to the ISO 14001 standard to

25 (out of 27).Workplace Injury Rates

0

1

2

3

1993 1994 1997 19981995 1996

Per 1

00 W

orke

rs

1999 2000

Total Recordable Incident Rate

Day Away FromWork Case Rate

2000 Hazardous Waste Management

Xerox Equipment and Supplies Reuse and Recycle:Total Waste Diverted From Landfill in 2000

Total:158,000,000 lbs.

Supplies: 16,000,000 lbs.

Equipment: 142,000,000 lbs.

Recycled23%

Fuels Blended7%

Treated66%

Disposed4%

P O L I C Y A N D S T R A T E G Y 3

P o l i c y a n d S t r a t e g y :Integrating EH&S into Xerox Business

Environment, Health andSafety Vision and Goals

The diverse nature of the Xerox product portfolio

and the worldwide scope of Xerox operations

and customers make managing the corporation’s

environment, health and safety programs a

challenging task. A strong corporate policy

forms a solid foundation from which to develop

our environment, health and safety vision and

goals. Applicable to all operations worldwide,

the policy commits Xerox to protect the health

and safety of employees, customers and

neighbors. Additionally, Xerox is committed

to protecting the environment and conserving

resources. Our policy states that these

commitments will not be compromised

for economic considerations.

Xerox’s vision of environment, health and

safety leadership is constantly evolving as

we strive to maximize value to our customers,

employees and society while maintaining

relevance and consistency with changing

business strategies and product lines. In

the last decade, we have made significant

progress in reducing the environment, health

and safety impacts of Xerox products and

factories through a “Waste-Free” focus.

Simply stated, our aim is to produce Waste-

Free Products in Waste-Free Factories to

enable our customers to achieve their

Waste-Free Workplace goals.

The Waste-Free concept has guided the

environmental management of Xerox

manufacturing facilities and the development

of sustainable product design principles.

Today, Xerox’s strategic environment, health

and safety goals are organized into four

categories: Safe Workplace and Healthy

Workforce, Eco-Efficiency, Safe Products, and

Customer Environmental Satisfaction. Our goal

of customer satisfaction reflects the important

role Xerox customers play in directing our

efforts to become a sustainable company.

Provide Valueto Employeesand Society

Safe Workplaceand Healthy Workforce

Safe Products

CustomerEnvironmental

Satisfaction

Provide Valueto Customers

Eco-Efficiency

• Zero Injury• Health Studies• EH&S Audits and

Assessments

• Supplies Return Programs• Equipment Remanufacture

and Parts Reuse/Recycle

• Waste-Free Factories• Environmental

Management Systems

• Supply ChainManagement

• SustainableProduct Design

EH&S Vision Goals Supporting Initiatives

P O L I C Y A N D S T R A T E G Y4

Integrating Environment,Health and Safety into Business

Implementing environment, health and safety

goals requires the involvement of senior

managers in our business groups and regional

operating units. We incorporate these goals

into Xerox management strategies and business

processes to ensure their deployment throughout

the company. Deployment mechanisms include:

• Strategic Planning Process

Environment, health and safety goals are

considered in business groups’ annual

strategic planning.

• Time to Market Process

Environment, health and safety criteria

are integrated into Xerox product design,

development and delivery.

• ISO 14001 Environmental

Management System

Manufacturing facilities employ ISO

14001-conforming environmental manage-

ment systems to identify environmental

impacts and set reduction targets.

• Audit Process

Research, manufacturing and service

organizations undergo integrated

environment, health and safety audits

at least once every three years. Xerox

audit teams evaluate operations against

Xerox standards, applicable government

regulations and industry guidelines,

identifying critical risks and areas of non-

compliance. Action plans are developed

with local management teams to correct

deficiencies.

• Product Safety• Materials Safety• Environmental

Requirements• Ergonomic Design• Remanufacture/

Recycle

• Market Research• Competitive

Trends• Regulatory

Trends

• EH&S Technology Needs

• EH&S DesignStandards

ProductDelivery

ProductLaunch

ProductDefinition

and Design

TechnologyAssessment

• EnvironmentalMarketing

• CustomerCommunications

StrategicPlanning

• Customer/Sales Support• Customer Satisfaction

Surveys and Feedback

Employee Involvement

We recognize that Xerox employees form the

backbone of our day-to-day efforts to achieve

corporate goals for environmental and social

responsibility. The company CEO builds

employees’ awareness of their responsibility

to our corporate environment, health and

safety commitment through an annual ethics

letter. Each employee must confirm his/her

understanding of this commitment through

a formal acknowledgment process.

Working in Xerox facilities and surrounding

communities, Xerox employees use their

knowledge, experience and talent to implement

corporate environmental initiatives and make

progress toward sustainable growth. The

Xerox Earth Awards program was established

in 1990 to recognize Xerox employees

worldwide for outstanding achievements

in resource conservation, waste reduction,

recycling and community involvement. The

Environmental Plank ofXerox’s Annual Ethics Letter

“Xerox is committed to protect the

environment and the health and safety of

its employees, customers and the com-

munities where it does business. Xerox

will operate in a manner that conserves

natural resources, and will comply with

all laws regulating these matters.”

Earth Awards program is an important

communications vehicle, increasing employee

awareness of Xerox’s environmental goals and

initiatives and inspiring new efforts through-

out the company. Our 2000 Earth Award

winners included teams from North America,

Europe, Brazil, India and Australia. These

teams identified savings of over $27 million,

proving once again that what is good for the

environment can be good for business.

Xerox’s Time to Market Product Development Process

technologies develop, Xerox will continue to

maximize the value of services and solutions

while minimizing resource use, ultimately

helping Xerox customers do more with less.

new set of product

environmental

performance goals

in 2000 focusing on resource conservation

and energy efficiency. We will move closer to

our goal of sustainable growth as new Xerox

products are designed to meet these targets

over the next several years. As innovative

P O L I C Y A N D S T R A T E G Y 5

Xerox’s Supplier EH&S Requirements

• Comply with applicable government

environment, health and safety regulations.

• Eliminate ozone-depleting substances

from all parts/materials supplied to Xerox.

• Eliminate toxic heavy metals — includ-

ing cadmium, lead, mercury and hexa-

valent chromium — from packaging.

• Work with Xerox to achieve environ-

mental leadership-driven goals for

product design. These specifications

encompass prohibited/restricted mate-

rials, packaging materials, recycled

content, recyclability and hazardous

materials minimization.

• Mark plastic parts with recycling

codes, as defined by ISO standards.

Partnerships for Sustainable Growth

Strong partnerships with suppliers and

customers are an important element of Xerox’s

evolving vision of a sustainable company, and

necessary for achieving Waste-Free targets

for products and factories.

Supply Chain Management

Starting in 1998, Xerox began deploying Supplier

EH&S Requirements consistent with internal

targets for reducing environmental impacts.

Suppliers are asked to meet five specific

requirements in order to do business with

Xerox. In addition, Xerox suppliers are expected

to develop an environmental management

system conforming to the ISO 14001 standard.

Xerox has integrated these requirements into

our Supplier Assessment Program. Evaluations

consider conformance to the expanded set of

Xerox requirements and form the basis for

competitive comparisons among suppliers.

Customers

Strong partnerships with Xerox customers

are essential to maximizing the environmental

benefits of sustainable product designs.

Customer feedback is incorporated into

the product development process to ensure

that Xerox products combine environmental

performance requirements with considerations

for customer ease-of-use. Customer support

is also crucial to the success of Xerox

return/recycle programs for equipment and

supplies. While Xerox designs products for

multiple lives, we rely on our customers to

return them at end-of-life for remanufacture

or recycling.

Toward Sustainable Growth

For more than a decade, the deployment of the

Waste-Free concept has resulted in dramatic

improvements in the environmental performance

of our factories and products. The succeeding

sections of this report detail that progress.

Despite the demanding business conditions

of the last twelve months, Xerox remains

committed to reducing the environmental

impacts of our products, services and manu-

facturing processes and to protecting the

health and safety of our employees and

customers. Xerox deployed a challenging

Xerox’s contribution to a sustainable society isstrengthened through activeemployee involvement andcreative partnerships withcustomers and suppliers. Eco-Efficient

Facilities

Employees

Customers

SustainableProducts and

Services

SustainableCompany

SustainableCompany

Suppliers

W A S T E - F R E E P R O D U C T S6

W a s t e - F r e e P r o d u c t s :Sustainable Product Design

Xerox established sustainable product design

initiatives in the early 1990s as a means of

putting our Waste-Free Product goals into

practice across the Xerox product line. As a

result of these initiatives, successive generations

of Xerox products offer increasing functionality

while conserving energy and materials and

requiring fewer hazardous substances

throughout the product lifecycle.

Xerox made good progress toward our

Waste-Free Product goals in 2000:

• Xerox equipment remanufacture and

supplies reuse/recycle programs diverted

nearly 160 million pounds of material

from landfills.

• Energy-efficient product features enabled

energy savings of more than 800,000

megawatt hours.

• Emissions of dust and ozone from

Xerox office/production equipment were

reduced by 55% and 70%, respectively,

from a 1990 baseline.

• Product noise in standby mode decreased by

more than 80% when comparing new digital

office machines to the models they replaced.

• Challenging new energy efficiency,

reuse/recycle and noise reduction targets

for future products were deployed to

ensure a continued commitment to

design advances in these areas.

Xerox Products with Ecolabel Certifications

Xerox Waste-Free Product Goals

By year-end 2000, Xerox had introduced 176

ENERGY STAR-qualified products and 160

Environmental Choice EcoLogo-certified

machines. Eighteen products meeting Blue

Angel criteria had also been introduced.

• Equipment remanufactureand parts reuse/recycle

• Supplies return programs• Energy-efficient design• Efficient use of paper• Recycled content in equipment,

supplies, and packaging

• Design to Xerox worldwideproduct environmentalperformance standards

Efficient Use ofMaterials and Energy

Waste-Free Product Goals Sustainable Product Design Initiatives

Minimal Use ofHazardous Substances

Low Emissionsand Noise

0

20

40

60

80

1995 1996 1997 1998 1999

100

120

140

160

180

Cum

ulat

ive

Num

ber o

f Pro

duct

s

2000

ENERGY STAR Germany’s Blue Angel

Canada’s EnvironmentalChoice EcoLogo

One measure of the success of our sustainable

product design initiatives is the number of

Xerox products that meet the world’s most

widely-recognized certifications for product

environmental performance – the international

ENERGY STAR, Canada’s Environmental Choice

EcoLogo and Germany’s Blue Angel ecolabels.

quality

assurance

tests. As a result, all Xerox

products – newly manufactured

and remanufactured – carry

the same Xerox guarantees,

warranties and service agreements.

Moving forward, Xerox will look for ways

to further enhance the potential of end-of-life

equipment, extending our research in common

designs and modular product architectures

that offer maximum flexibility for reuse of

components. Partnerships with universities and

research institutes worldwide will continue

to advance the science of remanufacturing.

Xerox Equipment Remanufacture and Parts Reuse/Recycle Management Process

Raw Materials

New Parts

Build ProductDeliver

Customer Use

Return to Xerox

Dismantle

Sort/Inspect

DisposalGoal: Zero to Landfill

Alternative Uses

Recycle Materials(Third Party)

Recycle Parts

Process Parts for Reuse(Xerox or Suppliers)

Equipment remanufacture

and the reuse and recycling

of parts prevented more than

142 million pounds of waste

from entering landfills in 2000.

W A S T E - F R E E P R O D U C T S 7

Waste-Free Product Goal:

Xerox Equipment Remanufactureand Parts Reuse

Xerox formalized its commitment to taking

back end-of-life equipment from customers in

the early 1990s, establishing an equipment

remanufacture and parts reuse/recycle

process that forms the foundation of our

Waste-Free program. By building the concepts

of durability, easy disassembly, reuse and

recycling into the earliest stages of product

design, Xerox has been able to maximize the

end-of-life potential of products and compo-

nents. Ninety percent of Xerox-designed

equipment is developed with remanufacturing

in mind. Reused/recycled parts can comprise up

to 90% of a remanufactured machine’s weight.

Our approach to managing products at end-of-

life translates into significant environmental

and financial benefits. Equipment remanufacture

and the reuse and recycling of parts prevented

more than 142 million pounds of waste from

entering landfills in 2000. Parts reuse and

recycling has substantially reduced the amount

of raw materials and energy needed to manu-

facture equipment, enabling cost savings of

several hundred million dollars a year.

Xerox’s unique processes and technologies

ensure that all of our products, regardless of

reused/recycled part content, meet the same

specifications for performance, appearance,

quality and reliability. Signature Analysis is

one such technology that enables Xerox

Efficient Use of Materials and Energy

engineers to determine the usable life of parts.

Using this technology, we test new parts to

determine a ‘signature’ – an acceptable range

for the noise, heat or vibration the parts

produce while in use. We then test the same

characteristics in parts from returned equipment.

Only those parts whose signatures are

consistent with those of newly-built parts

are approved and processed for reuse.

The processes of equipment remanufacture

and parts reuse/recycling are fully integrated

into Xerox manufacturing operations. Products

with reused/recycled parts are built on the same

manufacturing lines as newly manufactured

equipment, and they undergo the same rigorous

TOTALSATISFACTION

GUARANTEE

Xerox employees in Venray, Netherlands

are contributing expertise in predicting

the life span of components to a multi-

year remanufacturing study funded by

the European Union.



Return Programs for Xerox Supplies

Like our equipment remanufacture and parts

reuse program, Xerox return programs for

supplies are a central element of our strategy

to achieve Waste-Free Product goals for

efficient use of materials and energy.

Partnerships with Xerox customers have made

these programs a success. In 2000 alone,

Xerox supplies return initiatives prevented

nearly 16 million pounds of waste from

entering landfills.

Xerox has steadily expanded its supplies

return programs since the introduction of our

copy/print cartridge return program in 1991.

Today, Xerox has well-established methods

for collecting and reprocessing cartridges and

toner containers for Xerox office and retail

products, as well as waste toner for a family

of high-speed production copiers and printers.

Prepaid postage labels and the packaging

from new supplies allow customers to return

old products to Xerox for reuse and recycling.

Returns are cleaned, inspected, and then

remanufactured or recycled. Reprocessed

products, containing up to 95% reused/recycled

parts by weight, meet the same performance

specifications as new products.

Customers worldwide returned more than

seven million cartridges and toner containers

to Xerox in 2000. More than 90% by weight of

these returned materials were remanufactured

or recycled.

The Xerox Waste Toner Return Program, with

a return rate of 70% among qualified products,

has facilitated the return of nearly four million

pounds of waste toner to Xerox since the

program’s inception in 1998 – over 1.5 million

pounds in 2000 alone. Waste toner returned

to Xerox is reprocessed and used as an

ingredient in the manufacture of new toner,

saving Xerox nearly one million dollars each

year in avoided raw material costs. Xerox

engineers expanded the scope of this program

from high-speed production machines to office

equipment in 2000, qualifying the waste toner


from two families of workgroup copiers and

multifunction products for reuse. We will

begin remanufacturing this toner in 2002.

In 2001, Xerox has made a focused effort to

increase worldwide return rates for supplies

by introducing the Green World Alliance, an

initiative combining existing return programs

for a variety of Xerox supplies into one simplified

process for customers. In 2002 and beyond,

Xerox engineers will continue to qualify

newly-developed supplies for inclusion in

the Green World Alliance program.

Xerox Supplies Return Programs: Total Waste Diverted From Landfill

Waste Toner: 1,600,000 lbs.Toner Containers: 2,100,000 lbs.Cartridges: 12,000,000 lbs.

0

5,000,000

10,000,000

1998

Tota

l Pou

nds

ofW

aste

Div

erte

d

1999

15,000,000

20,000,000

2000

Xerox return programs for cartridges,

toner containers and waste toner provide

significant environmental benefits. In

2000, reuse and recycling of returned

supplies diverted nearly 16 million pounds

of material from landfills worldwide.

Xerox Green World Alliance


Energy Efficiency

Xerox has achieved significant reductions in

product energy consumption over the past

decade. Since the early 1990s, Xerox equip-

ment has been designed to automatically

enter a “power saver” mode after a specified

period of non-use. Because office equipment

is often inactive for portions of a workday and

may be left on overnight, this power saver

feature has the potential to substantially

reduce product energy consumption.

Xerox formalized its commitment to energy-

efficient product design in 1993, joining the

U.S. Environmental Protection Agency (EPA)’s



ENERGY STAR Office Equipment program as a

Charter Partner. Since then, we’ve introduced

more than 176 ENERGY STAR-qualified copier,

printer, fax and multifunction products. Each

of these has been carefully designed with

energy-saving features that bring value, effi-

ciency and flexibility to our customers’ work

environments. More than ninety-five percent

of eligible Xerox products introduced in 2000

met ENERGY STAR criteria.

Advances in low temperature fusing and

new electronics architectures have made

today’s Xerox office copying equipment signif-

icantly more energy efficient than comparable

1990 models, even while offering customers

enhanced features and functionality. For

example, the annual energy consumption of

the ENERGY STAR-qualified Xerox Document

Centre 432DC is up to 80%1 less than that

of the Xerox 5034, introduced in 1990.

Xerox multifunction equipment further

reduces the amount of energy required to

provide customers with copy, print, fax and

scan capabilities by combining the functions

of multiple products into one machine.

The annual energy consumption of a Xerox

Document Centre multifunction machine

is 20-30% less than the combined annual

energy consumption of the standalone

ENERGY STAR-qualified copier, fax and printers

it replaces. Energy savings can increase to

65% if a multifunction machine replaces

standalone products that are not ENERGY

STAR-qualified.

Xerox Multifunction Equipment: Inherent Environmental Benefits

By combining the functions of multiple products, Xerox multifunction machines can reduce annual

energy consumption by 20-30% compared to the standalone copiers, fax and printers they replace.

Annual energy consumption of an office copier,

two printers and a fax: 1070 kWh

Annual energy consumption of

a multifunction machine: 750 kWh

1 Variations in customers’ patterns of copier use account for a range in the possible energy reductions that can be achieved by replacing old equipment with newer models. Maximum reductions are achieved by customers who do not manually power off equipment at the end of each workday.

30% reduction


Energy-efficient machines offer notable

environmental benefits. In 2000 alone, Xerox

ENERGY STAR-qualified office and production

equipment in customer locations enabled

energy savings of more than 800,000

megawatt hours – enough energy to light

more than 650,000 U.S. homes for a year.

These energy savings translate into an avoid-

ance of over 600,000 tons of carbon dioxide

(CO2) emissions.

Product energy efficiency is becoming an

increasingly important customer consideration.

Accordingly, Xerox continues to invest in break-

through technologies required to achieve further

reductions in product energy consumption. Current

research is focused on further reducing fusing

energy, developing lower-melting toners and

inks and designing ultra-low power electronics.

Paper

The U.S. EPA estimates that manufacturing

a piece of paper requires ten times more

energy than making a copy. As a result, Xerox

products are designed with reliable two-sided

or duplex capability that allows customers

to use paper efficiently.

Our line of Xerox supplies includes papers

containing up to 100% post-consumer recycled

content. Recycled supplies are designed for

optimal performance in Xerox equipment and

are required to meet the same performance

specifications as new paper.

Environmental Benefits of Xerox ENERGY STAR Machines

Book in Time

In 2000, Xerox ENERGY STAR-qualified office and production copiers and

printers enabled energy savings of more than 800,000 megawatt hours. This

translates into more than 600,000 tons of avoided carbon dioxide emissions.

200,000

400,000

600,000

800,000

1996 1997 1998 1999 2000

800,000

600,000

400,000

200,000

Ann

ual E

nerg

y Sa

ving

s (M

Wh)

0 0

MWh CO2

Note: Xerox personal copying and printing equipment enabled an additional 1.2 million megawatt hours in energysavings in 2000. Because Xerox discontinued its line of personal products in 2001, the associated savings are notreflected in this chart. Annual energy savings are calculated by comparing the annual energy consumption of XeroxENERGY STAR-qualified product types to non-ENERGY STAR counterparts (using EPA data on non-ENERGY STAR prod-ucts). Savings are aggregated across the estimated number of Xerox ENERGY STAR-qualified machines in customerlocations. Energy savings are translated into avoided CO2 emissions using an EPA conversion factor.

▲

▲ ▲

▲

CaptureDigital BookMaster

Repository

Print on Demand Finishing

Production Management

IT Integration

Order System

▲

▲

Xerox’s Book in Time print-on-demand

solution allows publishers to keep all

titles in print indefinitely while minimizing

inventory and associated waste.

Xerox’s expanding portfolio of software products

such as DocuShare and DigiPath provide

customers the opportunity to replace paper-

based information with electronic processes.

Further, Xerox customers have demonstrated

that Xerox document management solutions

like Book in Time can reduce paper consumption

by as much as 40%.



To reduce the use of chemicals considered

harmful to human health or the environment,

Xerox has established a set of requirements

that govern product design and materials

selections. We have distributed these guidelines

to Xerox design engineers as well as our

component and materials suppliers. Research

and design teams are also investigating

alternative parts and materials as necessary.

In 2001, Xerox’s efforts to eliminate chemicals

of concern from our product line are focused

on mercury and lead. We are working to

phase out mercury-containing lamps that

scan images and back-light user displays in

some of our office products. Fuji Xerox has

developed breakthrough processes making

it possible to use lead-free solder in the

Minimal Use of Hazardous Substances

and production copying and printing

equipment by more than 55% and 70%,

respectively. Product noise levels have also

declined. Compared to the models they

replaced, Xerox’s newest digital office

products feature noise emissions that

are 65% lower during operation and more

than 80% lower in standby mode.

Reduction in Product Chemical Emissions Since 1990

Incorporating state-of-the art technologies

into Xerox office and production equipment

has significantly reduced ozone and

dust emissions.

Looking Toward the Future

Maintaining leadership in sustainable product

design requires an ongoing effort. Xerox is

committed in the short-term to implementing

a new set of challenging product environmen-

tal performance goals established in 2000.

Going beyond existing Xerox product design

standards, these goals set stretch targets

for future products. A particular focus has

been placed on product energy efficiency,

reuse/recyclability of equipment and

supplies, and minimized noise emissions,

in accordance with customer requirements.

55%

1990 2000

Dust

70%

1990 2000

Ozone

electronic boards of copiers and printers.

Selected Fuji Xerox products manufactured

in 2001 will feature lead-free solder.


Between 1990 and 2000, Xerox engineers

cut emissions of dust and ozone from office

Low Emissions and Noise

Expertise

Equipment

As Xerox continues to expand its focus from

copiers and printers to integrated document

management solutions, we’re able to combine

Xerox equipment, software and expertise to

enable customers to manage documents – and

the information they contain – in ways that

further minimize material and energy

resources. And as Xerox scientists continue

to develop innovative technologies, we

are committed to maximizing their

capability to transform the way

society works, ultimately

helping Xerox customers

do more with less.

Software

Doing More with Less

Integrated document management solutions

combine Xerox equipment, software and

expertise to help customers share information

using fewer material and energy resources.


Phaser 850

Phaser 860

ColorStix solid ink sticks

▲

DocuColor 12

Digital Multifunction Products

Xerox multifunction products offer inherent

environmental benefits. By combining the

functions of multiple products into one machine,

Xerox has significantly reduced the materials

and energy required to provide customers

with copying, printing, faxing and scanning

capabilities. The annual energy consumption

of a Xerox Document Centre multifunction

machine is 20-30% less than the combined

annual energy consumption of the standalone

copier, fax and printers it replaces.

Xerox expanded its line of multifunction products

in 2000 and 2001 with several new models

that are ENERGY STAR-qualified and certified

to Canada’s Environmental Choice EcoLogo.

▲

W a s t e - F r e e P r o d u c t G o a l s i n P r a c t i c e

DocumentCentre 432ST

DocuPrint N2025

Networked Laser Printers

The Xerox DocuPrint N2025 and DocuPrint

N2125 networked laser printers, introduced

in 2000, are among the latest Xerox printers

designed to meet Germany’s Blue Angel

criteria for environmental preferability. The

Blue Angel ecolabel has established some of

the world’s strictest standards for product

energy consumption, emissions of noise,

ozone and dust, use of hazardous materials

and product reuse and recyclability.

DocuPrint N2125

▲

Solid Ink Color Printers

Xerox acquired the Color Printing and Imaging

Division of Tektronix, Inc. in January 2000,

and with it, a unique color printing technology

known as solid ink.

Solid ink printers use ColorStix® ink – solid

blocks of ink at room temperature. During the

printing process, these sticks are melted and

jetted through piezoelectric printheads, achieving

nearly 100% ink transfer efficiency. Images are

printed onto a rotating drum and offset onto

paper in a single pass of the print engine.

Solid ink printers make efficient use of materials,

weighing approximately 25% less than typical

color laser printers. By eliminating print cartridges

and minimizing the number of other consumable

items that must be replaced throughout the

life of the machine, solid ink printing generates

a substantially lower volume of waste compared

to other technologies. In fact, compared to a

typical color laser product, a solid ink printer

produces 95% less waste during use. Fewer

consumables translate into lower operating

costs, increased reliability and ease-of-use.

The Phaser 850 and 860 printers are the

newest Xerox products featuring solid ink

technology.

Xerox introduced a number of products and supplies in 2000 and 2001 whose environmental features

demonstrate our latest advances toward Waste-Free Product goals.


Environmentally-Preferable Paper

Xerox expanded its line of recycled papers in

2000 and 2001 to include several new premium

products designed for use in digital color

printing applications. Recycled papers –

containing up to 100% post-consumer recycled

content – use post-consumer waste in place

of new pulp to help conserve natural resources

and save energy. Xerox also increased the

number of its papers manufactured using

elemental chlorine-free (ECF) or totally chlorine-

free (TCF) bleaching or de-inking processes.

In Europe, Xerox introduced Planet Light,

a 70 gram per square meter (g/m2) paper

that achieves the same characteristics of a

heavier-weight 80 g/m2 sheet using less fiber.

Planet Light also requires fewer energy and

chemical resources during production than

traditional papers.

SmartPaper™: Reusable Electronic Paper

A recent Xerox invention, electronic paper

has significant resource-conserving potential.

Like traditional paper, it is thin, lightweight

and flexible. Unlike conventional paper, how-

ever, it is electrically writable and erasable

and can be reused thousands of times.

In 2000, Xerox created the Gyricon Media

company to bring SmartPaper technology to

market. Gyricon’s first focus is MaestroSign™

Systems, a retail solution that synchronizes

SmartPaper pricing displays with point-of-sale

databases. This wireless system reduces

the waste and labor associated with daily

management of traditional cardboard signage

and gives retailers the ability to instantly

change display pricing from one central location.

Macy’s East installed the first MaestroSign

demonstration system in their Bridgewater,

New Jersey store in July 2001.

▲

SmartPaper contains millions of small

two-color beads sealed in a thin layer of

transparent plastic. When voltage is applied

to the surface, the beads rotate to show one

color or the other, producing an image.

MultipurposeRecycled-30%

Digital Color Gloss(ECF)

Planet+ (TCF)

Planet Light

EA toner particles

EA Toner Technology

The Xerox Research Centre of Canada recently

announced a breakthrough technology for

producing color toner. Developed over eight

years, this new method to manufacture toner

involves emulsion aggregation (EA), a process

that chemically builds toner particles to any

desired shape or size. Traditional toner is

made by physically grinding large particles of

solid colored plastic into smaller ones. With

particles that are exceedingly small, of uniform

size and perfectly round, EA toner sets a new

standard for color image quality while lowering

printing costs and reducing the amount of

toner required per printed page. Improved

control over the electrical properties of toner

particles results in more efficient use of toner

during printing and reduced generation of

waste toner. At the same time, EA toner

exhibits image fixing capability at low temper-

atures, reducing per-page product energy con-

sumption. The new toner will be available in

Xerox products in 2002.

▲

▲

A Xerox scientist tests

new EA toner technology.

to better integrate

these environmental

considerations into

overall operational

activities and has

enabled Xerox to

significantly reduce its

impact in these areas.

Nevertheless, we recog-

nize that chemical sub-

stitution and innovative

recycling solutions represent

opportunities to further reduce

our environmental impact.

Xerox Site Operations

Xerox has research and manufacturing sites in

11 countries around the world. The year 2000

was a year of great change in Xerox’s manu-

facturing operations. We opened one major

manufacturing site and acquired another.

W A S T E - F R E E F A C T O R Y14

W a s t e - F r e e F a c t o r y :An Ongoing Commitment

Since the early 1990s, Xerox has managed

environmental performance in its manufacturing

operations to an internal benchmark known

as Waste-Free Factory. Our commitment to

the goals of this initiative, along with global

implementation of an ISO 14001-conforming

environmental management system, has driven

environmental performance improvements

over the last decade.

Environmental Management:ISO 14001

In 1997, Xerox made a commitment to certify

all of our manufacturing facilities to the ISO

14001 environmental management system

standard. All major manufacturing plants were

registered within one year of that commitment.

In 2000, two additional sites established ISO

14001-conforming management systems,

bringing the number of registered Xerox

sites to 25. All manufacturing sites will have

achieved registration by the end of 2001.

The ISO 14001 standard requires companies

to integrate environmental planning, program

implementation and measurement with day-

to-day business activities. This methodology

builds on the commitments made by Xerox

facilities to our Waste-Free Factory goals. The

Waste-Free Factory criteria include significant

reductions in waste, emissions and energy

consumption, as well as increased recycling.

The structured approach of ISO 14001 helps

Consolidations led to major expansions of

some operations and decommissioning of

others. Despite these changes, Xerox has

continued to reduce environmental impacts

through the application of innovative engi-

neering solutions, creative partnerships

and employee involvement.

Xerox Research, Manufacturing and Equipment Recovery Site Operations

Type of Operation Locations

Research and Development Canada, United States

Machine Assembly Brazil, Egypt, India, Malaysia, Mexico, and Remanufacture Netherlands, United Kingdom, United States

Toner, Ink and Photoreceptor Canada, India, Ireland, Manufacture Netherlands, Spain, United States

Equipment, Parts and Brazil, Egypt, India, Mexico, Netherlands, Cartridge Recovery/Recycle United Kingdom, United States

ISO 14001 Registrations

0

5

10

15

20

1997 19981995 1996

Cum

ulat

ive

Num

ber o

fRe

gist

ratio

ns

1999

25

2000 2001 Outlook

30

All Xerox manufacturing operations will be registered

to the ISO 14001 environmental management system

standard by the end of 2001.

volatile organic solvents to clean returned

Xerox equipment in preparation for

remanufacture. This substitution has not

only contributed to a reduction in hazardous

waste, it has reduced cleaning time by 40%

and lowered cleaning costs by 35%. Xerox

has achieved additional reductions in haz-

ardous waste with a proprietary process that

decreases the amount of solvent required to

manufacture fuser rolls. By improving the solvent

transfer efficiency to 100%, we have cut our

use of solvent and raw materials by 70%.

E N V I R O N M E N T A L P E R F O R M A N C E 15

E n v i r o n m e n t a l P e r f o r m a n c e :2000 Results

Hazardous Waste

Xerox strives to minimize hazardous waste

generation and to find disposal solutions that

are environmentally benign. Ninety-six per-

cent of the hazardous waste generated in

2000 was beneficially managed through

treatment, recycling or fuels blending, while

the remaining four percent was disposed of

in landfills or incinerated.

Reducing hazardous waste requires innovative

engineering solutions. Since the early 1990s,

Xerox has used dry ice pellets in place of

Beneficial treatment of hazardous waste was a continued

focus in 2000, with 96% of waste either treated, recycled

or fuels blended. Disposal accounted for only 4% of the

hazardous waste managed worldwide.

Hazardous Waste Generated 2000 Hazardous Waste Management

In 2000, hazardous waste generation decreased 10% from

1999 levels worldwide and 35% in Webster, New York, due

primarily to reduced production levels.

0

1,000

2,000

3,000

4,000

1995 1996 1997 1998

Tons

1999

5,000

6,000

0

Poun

ds p

er S

tand

ard

Hou

r Wor

ked

2000

0.05

0.1

0.15

0.25

0.2

0.3

0.357,000

Lbs./Std. Hr. Worked Webster, NY Worldwide

Recycled23%

Fuels Blended7%

Treated66%

Disposed4%

CO2 Cleaning Operations

A Xerox technician cleans a returned

copier in preparation for remanufac-

turing. The process involves spraying

a stream of frozen carbon dioxide

(dry ice) pellets at entire machine

hulks as well as at delicate

components. Toner, oils, and grime

freeze to the surface of the parts,

then fall off into a catch pan where

they can be vacuumed or swept

away.

This section presents figures based on gross quantities for manufacturing, research and

equipment recovery/recycle operations. Unless otherwise noted, all numbers represent

worldwide figures. Data are normalized using the standard hours worked in each of the

reporting facilities. Where multi-year worldwide data values are available, normalized

trends are shown.

efficiency of manufacturing processes and

the installation of state-of-the-art emission

control technologies have resulted in a 96%

reduction of dichloromethane emissions

to air since 1991. Whereas in 1991 a third

of the dichloromethane waste generated was

released to the air, only 2% is released today.

Xerox captures the remainder for on-site

reuse or off-site recycling. To

date, we have not been able

to identify another chemical

as a suitable replacement,

but the reduction of

dichloromethane emissions

to the air remains a priority.

The majority of the 198 tons of air emissions released

in 2000 were volatile organic compounds, with

dichloromethane (methylene chloride) as the single

largest contributor.

E N V I R O N M E N T A L P E R F O R M A N C E16

Air Emissions

Xerox facilities released 198 tons of air emis-

sions in 2000, a 24% decrease from 1999. The

reduction is due both to production decreases

and better control of particulate emissions.

Xerox facilities that manufacture toners, inks

and photoreceptors are our most chemically-

intensive operations and are responsible

for a large proportion of the air emissions

released in 2000. With a firm commitment to

our Waste-Free Factory goals, these facilities

have made tremendous progress in reducing

air emissions over the last decade. Reduction,

reuse and recycling strategies have enabled

an 89% decrease in air emissions since 1991.

Dichloromethane (methylene chloride), the

single largest contributor to air emissions, is

a necessary solvent for the manufacture of

organic photoreceptors. Improvements to the

Photoreceptor Inspection, Brazil

Improvements to the efficiency of manufacturing process-

es and the installation of state-of-the-art emission

control technologies have resulted in a 96% reduction

of dichloromethane emissions to air since 1991.

2000 Air Emissions Dichloromethane Management U.S. Facilities, 1991 vs. 2000

Other VolatileOrganic Compounds

68%Particulates

17%

Dichloromethane13%

Other RegulatedPollutants

2%

0%

20%

40%

60%

80%

Released toAir

Perc

enta

ge W

aste

Gen

erat

ed

Reused orRecycled

100%

Xerox supplies manufacturing operations have

reduced air emissions by 89% since 1991.

Air Emissions: Supplies Operations

0

200

400

1991 1997 19981995 1996

Tons

1999

600

800

2000

1991 2000


U.S. Toxics Release Inventory

As part of Xerox’s commitment to environmen-

tal responsibility and Waste-Free goals, we

work to continually reduce our releases to the

environment. One measure of our progress is

the quantity of releases reportable under the

U.S. Environmental Protection Agency (EPA)’s

Toxics Release Inventory (TRI).

Xerox TRI reports, submitted annually to

the EPA and relevant U.S. state agencies,

summarize releases of certain toxic chemicals

to air, water and land. Off-site shipments of

these chemicals are also reported. The EPA

makes this information publicly available so

local communities know the types and quanti-

TRI Air Emissions

TRI Air Emissions: U.S. Facilities

The majority of Xerox TRI-reportable releases

– more than 90% – are to air. Since 1991, TRI

releases to the air have been reduced by 92%.

The installation of state-of-the-art abatement

technologies in the early 1990’s and continu-

ous improvement in our processes have

contributed to this decrease. Reductions in

recent years are due primarily to production

decreases and process decommissioning.

0

200,000

400,000

600,000

800,000

1991 1992 1995 19961993 1994

Poun

ds

1997

1,000,000

1,200,000

1,400,000

1998 1999 2000

2000 TRI Air Emissions: Distribution by Chemical

Methanol3%

1,3-Butadiene10%

Styrene3%

Toluene2%

Methyl Isobutyl Ketone6%

Glycol Ethers10%

Dichloromethane51%

Methyl EthylKetone

15%

2000 Total Xerox TRI Releases: U.S. Facilities (Pounds)

To Air To Sanitary To Landfill Total TotalSewer Released to Beneficially

Environment Managed*

Webster, NY 57,261 0 0 57,261 1,248,506

Oklahoma City, 40,379 0 2,687 43,066 1,730,396Okla.

Total: 97,640 0 2,687 100,327 (3%) 2,978,902 (97%)

ties of toxic chemicals that are released by

nearby companies. Companies are required

to report only certain listed chemicals used

above a threshold quantity. This requirement

applied to two Xerox U.S. facilities in 2000.

Xerox achieved a 37% reduction in total

releases of TRI-reportable chemicals between

1999 and 2000. Ninety-seven percent of

waste generated from TRI-listed chemicals

was beneficially managed in 2000 and only

3% was released to the environment.

* “Beneficially managed” represents quantities of waste recycled, treated or used for energy recovery on- or off-site.


In addition to the typical solid waste generated

at manufacturing sites, Xerox manages

thousands of end-of-life machines returned

by customers to our four

equipment and recovery

operations. Because of

the unique challenges of

managing electronic waste,

the following sections

Non-Hazardous Solid Waste

Our Waste-Free Factory initiative has focused

efforts on reducing the amount of non-haz-

ardous solid waste generated in Xerox opera-

tions, and responsibly managing waste that

can not be eliminated. In 2000, Xerox opera-

tions collectively achieved an 80% recycle

rate. When a one-time disposal of toner

waste is excluded, the non-hazardous solid

waste recycle rate was 87%.

Toner represents a significant

portion of our solid waste stream.

Since toner particle size must be

strictly controlled to ensure quality and per-

formance, a by-product of the manufacturing

process is toner “fines” that must be excluded

from the final product. Xerox achieved a major

reduction in solid waste generation by devel-

oping a method to recycle these fines back

into the manufacturing process. In 2000, the

reuse of fines prevented the disposal

of over 3,500 tons of solid

Manufacturing Operations

Xerox manufacturing operations reported a

17% increase in solid waste generation per

standard hour worked between 1999 and

2000. This increase resulted from the final

disposition of waste recovered over several

years in a cartridge remanufacturing operation

in Latin America. Without this one-time dis-

posal, the amount of solid waste generated

per standard hour worked remained flat

between 1999 and 2000.

Xerox achieved a 80% recycle rate across all facilities in

2000. Excluding a one-time disposal of a large amount of

accumulated toner waste, the non-hazardous solid waste

recycle rate was 87%.

Non-Hazardous Solid Waste Recycle Rate:All Facilities

0%

20%

40%

60%

80%

100%

1997 19981995 1996

Perc

enta

ge R

ecyc

led

1999 2000

waste. Despite these advances, not all toner

can be reused and to date, recycling outlets

have not been identified. Meanwhile, several

of our North American plants are sending this

waste toner to be burned to produce energy.

Our goal is to reduce to zero the amount of

waste toner sent to landfills.

In 2000, a 17% increase in solid waste generated per

standard hour worked was reported in our manufacturing

operations. This increase is due to a one-time disposal of

accumulated toner waste. Excluding this activity, the amount

of solid waste generated was unchanged from 1999 to 2000.

Toner ManufacturingOperations, Webster, New York

In 2000, Xerox’s ability to reuse toner

fines in the manufacturing process

prevented the disposal of over 3,500

tons of solid waste.

Non-Hazardous Solid Waste Generated:Manufacturing Operations

0

2

4

6

10

0

20,000

40,000

60,000

80,000

1995 1996 1997 1998

Tons

1999

Poun

ds p

erSt

anda

rd H

our W

orke

d

8

2000

present separate solid waste management

results for manufacturing operations and

equipment recovery/recycle sites.

Lbs./Std. Hr. Worked Recycled or Reused Disposed


Equipment Recovery and Recycle Operations

Equipment that has reached the end of its

useful life at customer sites is returned to

four locations in North America and Europe

where Xerox evaluates equipment and parts

for remanufacture or recycle. As an industry

pioneer in equipment remanufacture and parts

reuse, Xerox has given new life to thousands

of copiers and printers while diverting hun-

dreds of millions of pounds of electronic

waste from landfills. To maximize environ-

mental and financial benefits, returned Xerox

equipment is first evaluated for remanufac-

ture potential, while recycling is considered

a secondary option. Xerox’s four equipment

recovery and recycle operations collectively

reported a 95% reuse/recycle rate in 2000.

From the Ground Up

The Xerox Technology Park in Dundalk, Ireland – Xerox’s newest manufac-

turing site – is a showcase for environmental design and management

practices. Located on 104 acres of land, this 500,000 square foot complex

houses toner, ink and equipment manufacturing operations. The park’s

environmental features were incorporated into the earliest stages of

planning and construction. Each of the five buildings on this site feature

state-of-the-art management controls including energy-efficient lighting

and heating systems. A fully-automated firewater retention pond protects

the local environment in the event of a fire. Over 20,000 native trees and

500,000 shrubs have been planted to enhance the park’s appearance from

the surrounding community.

Xerox registered this new site to the ISO 14001 environmental management system standard within months of first operation,

embedding good environmental practices into everyday facility operations. Recycling programs were initiated from the start.

In its first year of operation, the Xerox Technology Park achieved a non-hazardous solid waste recycling rate of 71%. Xerox has

also established strict limits for hazardous waste and air emissions under the guidance of the Ireland EPA.

Dundalk, Ireland Manufacturing Facility

Non-Hazardous Solid Waste Managed:Equipment Recovery/Recycle Operations

In 2000, Xerox’s equipment recovery/recycle operations reused or

recycled 95% of returned equipment.

Recycled or Reused Landfilled

0

20,000

40,000

60,000

80,000

1995 1996 1997 1998

Tons

1999 2000


18% between 1996 and 2000. This result was

achieved in part through “free” cooling. In

winter months, the Webster facility cools

process water by running it through pipes

outdoors instead of using energy-consuming

chillers (industrial air conditioners). Xerox’s

El Segundo, California facilities optimize energy

use with heating and cooling equipment that

runs at variable speeds to match precise

Energy and WaterConsumption

Worldwide energy consumption increased by

8% between 1999 and 2000 as a result of

the acquisition and start-up of new facilities.

Individual Xerox factories around the world

have implemented innovative energy conser-

vation measures over the past several years

to reduce annual energy use. Our largest

manufacturing complex, located in Webster,

New York, reduced energy consumption by

Energy consumed in our manufacturing site

operations is supplied by electricity and

natural gas.

2000 Energy Use

An 8% increase in worldwide energy consumption in

2000 was due primarily to the acquisition and start-up of

new facilities. Xerox’s largest facility in Webster, New

York, has reduced energy consumption by 18% since 1996.

Energy Consumption

Xerox manufacturing site operations consumed

energy equivalent to 474,000 tons of C02 emissions

in 2000.

2000 Energy Consumption in Equivalent CO2 Emissions

Xerox’s largest facility in Webster, New York reduced

its water consumption by 14% between 1999 and 2000

and by 39% since 1993. These reductions were due to

both process improvements and production decreases.

Water Consumption

CO2 FromElectricity

68%CO2 From

Natural Gas31%

CO2 From#2 Fuel Oil

1%

Electricity48%

Natural Gas51%

Fuel Oil1%

0

10

20

1996 1997 1998

Mill

ions

of T

herm

s

30

40

1999

50

2000 19960

200

400

1993 1997 1998

Mill

ions

of G

allo

ns

600

800

1999

1,000

2000

Webster, NY Worldwide Webster, NY Worldwide

needs, and with skylights that reduce the

need for indoor lighting. El Segundo operations

cut energy consumption by more than 39%

from 1993 to 2000.

Energy-efficient features of Xerox offices

include high-efficiency lighting, motion

detectors that turn lights off when rooms

are unoccupied, extra insulation, and solar

film on windows.

To reduce the risk of future contamination,

Xerox has implemented environmental

management systems in all major

manufacturing facilities worldwide. As a

result, only one new contaminated Xerox

site has been identified since 1992.

R E M E D I A T I O N A N D C O M P L I A N C E P E N A L T I E S 21

E n v i r o n m e n t a l R e m e d i a t i o n

C o m p l i a n c e P e n a l t i e s

Xerox’s proactive approach to the clean up

of contaminated sites spans more than a

decade. An initial survey of Xerox facilities

initiated in 1985 identified 68 sites with soil

and groundwater contamination. Since then,

Xerox has finished remediation activities at

48 sites. Two of these sites, both in the U.S.,

were completed in 2000. The completion of

three additional sites is planned for 2001.

The development of an innovative remediation

technology called 2-PhaseTM Extraction has

helped Xerox meet an aggressive schedule

for completing remediation projects. In 2000,

Xerox received its eleventh U.S. patent

for remediation technology. This recent

development strengthens our ability to

return contaminated properties to a useful

and beneficial state.

Xerox Corporation was assessed four compliance

penalties in 2000. The U.S. Occupational

Safety and Health Administration (OSHA)

issued a $1,875 Citation to a Xerox Business

Services client operation for a potential safety

issue associated with exposed gears on

equipment. OSHA also assessed a single

Xerox parts repair operation a $1,125 Citation

for providing insufficient personal protective

equipment to service technicians.

The U.S. Environmental Protection Agency

issued a Xerox manufacturing facility a

Consent Agreement and Final Order in the

amount of $5,000. The penalty was assessed

for wastewater discharge reporting that did

not fully meet the requirements of the U.S.

Emergency Planning and Community Right-

To-Know Act.

The State of California’s Division of

Occupational Safety and Health assessed a

$475 Citation to a Xerox distribution operation

for inadequate labeling of fork truck controls.

In all cases, Xerox immediately implemented

corrective actions to address problem areas.

Coupled with regular reviews of proper Xerox

operating procedures and routine monitoring

of operations, these actions minimize the

possibility of future incidents.

Our goal is completion of

remediation activities at 90%

of identified sites by 2007.

Contaminated Sites Remediated

0

10

20

30

40

1993 1994 1997 19981995 1996 1999

50

60

70

2000 2007Goal

2001Outlook

Cum

ulat

ive

Num

ber o

f Si

tes

Rem

edia

ted

S A F E W O R K P L A C E22

S a f e W o r k p l a c e :Health and Safety at Xerox

improvement. The highly decentralized nature

of our sales, service and document processing

operations presents one such challenge.

Employees in these Xerox operations work at

several thousand locations – including customer

sites – worldwide. In 2001 and beyond, we are

strengthening communication, accountability,

and follow-up efforts to improve injury rates

among this population of Xerox employees.

Xerox’s commitment to safety and health is

demonstrated by our Zero Injury program,

which was initiated in 1997. The goal of this

program is to reach benchmark safety levels by

achieving a 20% year-over-year reduction in

Total Recordable Incidents (TRI) and Day

Away From Work (DAFW) cases.

Although in 2000 Xerox fell short of our 20%

reduction targets, we did achieve double-digit

improvement in our injury rates. Xerox’s TRI

rate declined by 17% between 1999 and

2000, while the DAFW case rate decreased

by 11%. Since the inception of the Zero Injury

program, we have improved our TRI rate by

46% and our DAFW case rate by 41%. Greater

management accountability and a better

understanding of the causes of accidents and

injuries have enabled Xerox to make this progress.

In 2000, Xerox placed special emphasis on

identifying those job functions with unique

issues and formulating strategies for

Workplace Injury Rates

0

1

2

3

1993 1994 1997 19981995 1996

Per 1

00 W

orke

rs

1999 2000

Total Recordable Incident Rate

Day Away FromWork Case Rate

Xerox manufacturing

employees use ergonomic

lift devices to reduce

the risk of back injuries.

Metric (per 100 workers) 2000 Target 2000 Results 2001 Target

Total Recordable 1.25 1.30 1.04

Injury Rate (20% reduction) (17% reduction) (20% reduction)

Day Away From 0.55 0.62 0.50

Work Case Rate (20% reduction) (11% reduction) (20% reduction)

S A F E W O R K P L A C E 23

Ergonomics

Because musculoskeletal disorders represent

nearly 50% of our work-related injuries/illnesses,

the application of ergonomic principles is an

important component of our injury reduction

program. Workers’ compensation claims

attributable to musculoskeletal disorders

peaked in 1992. Since then, Xerox has made

a significant effort to reduce these injuries,

and has experienced a steady decline in the

number of cases as well as the cost associated

with those cases. Results for 2000 indicate a

57% reduction in the number of musculoskeletal

disorders within our U.S. manufacturing

operations from the 1992 baseline. Across all

U.S. operations a 26% reduction has been

achieved since 1992. We attribute these

improvements to the reduction of ergonomic

hazards in our jobs and improved case

management of injured workers.

In addition to correcting problems in existing

jobs, Xerox is addressing ergonomic issues in

the design of new products and manufacturing

processes. The aim is to reduce ergonomic

stresses on assembly and service personnel

by identifying and eliminating potential

ergonomic hazards. As these new products

move into production, we expect to see a

decrease in musculoskeletal disorders as a

result of this early design involvement.

Xerox will continue to strive toward industry

benchmarks in workplace safety, and has set

a 20% reduction target for injury rates in 2001.

Health Studies:Focus on Toner

Xerox is one of the largest manufacturers

and distributors of toners in the world.

Toners are fine powders composed of

plastics, colorants and small quantities

of functional additives. The safety of Xerox

toners has been well established through

laboratory testing and employee health

studies. In fact, more than 15 years ago,

as part of Xerox’s commitment to our employ-

ees and customers, three major health

studies were launched to examine the

potential long-term health effects of toner.

The first of these studies, completed in

1989, was a comprehensive laboratory

study. Results indicated some health effects

at very high levels of dust exposure, levels

unlikely to be experienced by workers in our

plants. Nonetheless, to ensure worker safety,

Xerox lowered toner dust levels in our plants

at that time. To protect our customers, we

Musculoskeletal Injuries/U.S. Manufacturing Operations

0

100

200

300

400

1993 1994 1997 19981995 1996 19991992 2000

Num

ber o

f Cas

es

U.S. Limit

Dutch Limit

Xerox Limit

0 10 155

Milligrams per Cubic Meter

0.42.5

510

155

Xerox workplace

exposure limits

are six times lower

than U.S. government

limits and four times

lower than Dutch

limits.

strictly control emissions of dust from our

machines. In fact, Xerox machine emission

limits are lower than limits set by the

strictest ecolabels.

The other two health studies focus on Xerox

workers who manufacture toner and service

our equipment. One is a study of more than

32,000 employees who worked at Xerox

between 1960 and 1982. This study uses

standardized techniques to compare the

causes of death for the Xerox population to

causes of death for the overall U.S. popula-

tion in order to determine if there are any

work-related patterns in the causes of

death of Xerox employees. The other study

is designed to evaluate the potential effects of

toner on the respiratory system of current

Xerox employees who are exposed to toner.

No evidence of chronic health effects due

to toner exposure has been demonstrated

from these studies for either manufacturing

workers or service engineers.

Respirable Dust Total Dust

Workplace Exposure Limits

C O M M U N I T Y I N V O L V E M E N T24

C o m m u n i t y I n v o l v e m e n t :Partnerships in Environmental Leadership

2000 Olympic Games

Xerox was

instrumental

in helping the

2000 Games

in Sydney, Australia with its environmental

goals. The document management services

that Fuji Xerox-Australia provided to the Games

featured energy-efficient copiers and printers,

returnable/reusable print cartridges and recycled

paper. The use of Xerox print-on-demand tech-

nologies and electronic results publication

enabled the Sydney Games to achieve significant

paper savings compared to previous Olympics.

Earth Day

Xerox facilities around the world celebrated

Earth Day in 2000 and 2001. Xerox operations

in France, India, Italy, and the United States

organized local events to promote environmental

awareness among employees and surrounding

communities. Xerox employees at our Nogales,

Mexico facility worked with the Mexican

Environmental Department to distribute over

7,000 trees to local communities. In Canada,

staff volunteers from the Xerox Research

Centre helped the City of Mississauga dispose

of approximately 500 pounds of waste.

Educational Support

Xerox sponsors students, research and

coursework in environmental design and

management worldwide. In 2000, Xerox funded

research at Clarkson University in the U.S.,

Imperial College and the University of Surrey

in the U.K., and the Universities of Eindhoven

and Twente in the Netherlands. Xerox Mexico

used savings earned through factory recycling

initiatives to train high school teachers on

environmental topics and provide scholarships

to underprivileged students. In Brazil, Xerox

funded community programs like the Mangueira

Olympic Village that provide children with

educational and sporting opportunities.

In China, Xerox sponsored an art exhibition

designed to educate children about the

importance of environmental protection.

Organized by China’s Environmental Protection

Bureau and the China Children’s Center, the

Beijing exhibit featured dozens of paintings

by elementary and high school children.

Beautification and Restoration Programs

Xerox provides ongoing support to Adopt-

a-Highway in New York, the Mississauga

LitterNot Campaign in Ontario, Canada and

the Landcare conservation program in Australia.

GlobalEnvironmental Leadership

Xerox is a founding member of The Nature

Conservancy’s International Leadership

Council and the World Business Council for

Sustainable Development. Additionally, Xerox

participated in several events in 2000 in an

effort to share leadership practices with other

businesses. Xerox took part in Ireland’s Good

Neighbor Scheme, a program designed to help

small companies learn benchmark workplace

safety practices from large corporations.

In Bahia, Brazil, Xerox partnered with fifteen

other companies to establish a forum for sharing

expertise and solving problems in the areas of

resource conservation and waste management.

As a global business leader, Xerox recognizes the importance of extending our environmental commitment beyond our corporate

boundaries. Xerox employees are central to our efforts to share with the community the knowledge we’ve acquired by implementing

corporate environmental initiatives. This page features a few of the many outreach activities that Xerox supported in 2000.

Award-winning painting

featured in a Xerox-

sponsored children’s art

exhibition in Beijing, China.

A W A R D S A N D P U B L I C A T I O N S 25

A w a r d s

• The Asahi Shimbun’s 2001 Environment

for Tomorrow Award, presented to

Fuji Xerox for its comprehensive equip-

ment remanufacture and parts reuse/

recycling system.

• The 2000 Arizona Mexico International

Green Organization (AMIGO) Award,

honoring Xerox employees in our Nogales,

Mexico facility for their efforts to promote

pollution prevention practices within local

schools and businesses.

• INFORM’s 2000 Corporate

Environmental Vision Award, for

Xerox’s equipment remanufacture and

parts reuse/recycling system.

• The United Nation’s 2000

Environmental Award, for Fuji Xerox-

Australia’s environmental leadership.

• The British Safety Council’s National

Safety Award, presented to Xerox’s

Rampur, India manufacturing facility for its

outstanding safety record.

• The Princes’ Award Foundation’s

2000 Millennium Award, in recognition

of Xerox Europe’s success in reducing

environmental impacts through

Waste-Free initiatives.

• The U.S. EPA and Environment Canada’s

2000 State of the Lakes Ecosystem

Conference (SOLEC) Award, for Xerox’s

resource conservation and pollution

prevention initiatives.

P u b l i c a t i o n s a n d A d d i t i o n a l I n f o r m a t i o n

• Xerox Environment, Health and Safety Progress Reports, 1994-2000

• Material Safety Data Sheets

• Product Safety Data Sheets

• Because We Can’t Remanufacture the Earth

• Business Guide to Waste Reduction and Recycling

• Facts About the Safety of Xerox Products

• Ozone Brochure

Available from:Xerox Customer Environment, Health and Safety SupportXerox Corporation800 Phillips Road, Bldg. 205-99FWebster, New York 14580 USATelephone: (800) 828-6571TTY: (866) 375-4134E-mail: [email protected]

Xerox Environment, Health and Safety Web Site:www.xerox.com (refer to “About Xerox” section)

Xerox Europe Environment, Health and SafetyBessemer RoadWelwyn Garden CityHertfordshire AL7 1HEEnglandTelephone: 44 1707 353434E-mail: [email protected]

Xerox Europe Environment, Health and Safety Web Site:www.xltc.com/ehs/extehs.nsf

Over the past decade, Xerox’s successes in environmental leadership and product stewardship have earned us many prestigious

awards, some of which only a handful of companies worldwide have received. We are very proud of our most recent honors:

Corporate Headquarters: Xerox Corporation 800 Long Ridge RoadP.O. Box 1600Stamford, Connecticut 06904 USAwww.xerox.com

Founded: 1906, Rochester, New York, as The Haloid Company Named Xerox Corporation in 1961

Business: Document processing products, systems, services and solutions

Chief Executive Officer: Anne M. Mulcahy

Revenues (billions): 1996 1997 1998 1999 2000$17.4 $18.1 $19.6 $19.6 $18.7

Number of Employees: 1996 1997 1998 1999 2000Worldwide 86,700 91,500 92,700 94,600 92,500United States 46,000 50,200 52,000 53,200 50,000

Vice President, Environment, Health and Safety: Jack C. Azar800 Phillips Road, Bldg. 105-70CWebster, New York 14580 USATelephone: (716) 422-9266

Xerox Corporation is publicly traded on the New York Stock Exchange; symbol XRX

X E R O X A T A G L A N C E

©2001 Xerox Corporation. XEROX,® The Document Company,® the digital X,® and all Xerox product names and numbers mentionedherein are trademarks of XEROX CORPORATION. ENERGY STAR is a U.S. registered mark. As an ENERGY STAR Partner, Xerox hasdetermined that these products meet the ENERGY STAR guidelines for energy efficiency. All rights reserved. 10/01 610P629200

Xerox Corporation is the global leader in the

document management business, offering the widest array

of products, services and solutions in the industry.

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