International Conference on Sustainable Manufacturing

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1 International Conference on Sustainable Manufacturing Patricia Calkins Vice President Environment, Health & Safety Xerox Corporation Page 1

2 Agenda Who is Xerox? How we have approached this challenge Examples: technology, toner, paper, services What have we learned through our journey? Page 2

3 Xerox at a glance $17 billion business 57,400 employees worldwide Customer operations on six continents, 160 countries Headquarters: Norwalk, Connecticut NYSE: xrx North America Canada United States Developing Markets Africa, Eastern Europe Latin America Middle East, South Asia Russia Fuji Xerox* Asia Pacific Australia New Zealand *joint venture Europe Covers 17 countries across Europe Page 3

4 Xerox offers the document industry s broadest portfolio of offerings Document outsourcing and services Simplify document-driven processes Print infrastructure optimization Manage in-house print operations and special events Make information easier to manage and find through digital imaging, archiving and indexing Production printing & Graphic Arts Color and black-and-white digital printers and presses Wide-format and continuous-feed printers and copiers Business development tools to help grow a profitable digital business Publishing solutions for books, on-demand documents, transactional applications, personalized printing and more Workflow software to simplify how print jobs are created and managed Office solutions Multifunction systems, color and black-andwhite, that combine printing, copying, faxing and scanning Color network printers, solid ink and laser Digital copiers and fax systems Software to streamline how information is stored and shared Supplies Toner, paper and ink Page 4

5 Page 5

6 Energy - MJ/cup Which Beverage Container Has a Bigger Carbon Footprint? Ceramic Embodied Energy (MJ/cup) Plastic Glass Paper Foam Page 6 Data source: Institute for Lifecycle Environmental Assessment

7 How Many Reuses Required? Reuse Factors Disposable Cup Reusable cup Foam Ceramic 1006 Plastic 450 Glass 393 Ceramic Plastic Glass Paper Foam Data source: Institute for Lifecycle Environmental Assessment Page 7

8 Key elements of successful sustainability framework A quantitative approach Economically driven Value chain scope Easily understood Page 8

9 Xerox experience: Long history of commitment Introduces a recycled grade of cut sheet paper Joins ENERGY STAR as charter partner Green World Alliance begins Paper Supplier Requirements launched Introduces first product to make two-sided copies Introduces "power down" mode Toner recycling starts Commits to reducing green house gases by 10% by 2012 Page 9 Early 1990 s: Waste Free commitment remanufacturing strategy LCA used to prioritize technology & design efforts

10 First step is defining what to prioritize Defining direction Regulations Customers Page 10

11 Approach to developing environmental sustainability platform Map Xerox env l footprint Identify key aspects Translate to key BGs Conduct external research on stakeholder priorities NGOs Policy makers Regulators Scientific comm Media/public Investors Other companies Prioritize aspects & define planks Develop goals, metrics, targets Policy Standards Guidelines BG footprint Prioritize Link to goals Targets Page 11

12 Environmental impact across the value chain extraction chemical mfg Environmental footprint = impact across value chain transportation fabrication assembly packaging X energy chemical mfg paper mfg Page 12 logging

13 Xerox s Environmental Sustainability platform Challenge Goal Scope Climate Protection & Energy Carbon Neutral Suppliers Preserve Biodiversity & the World s Forests Sustainable Paper Cycle Xerox Operations Preserve Clean Air & Water Waste Prevention & Management Zero persistent, bioaccumulative, toxic footprint Waste-free Products, Facilities & Customers Customers Page 13

14 Examples within the Value Chain Technology Toner Paper Service Page 14

15 New print technology produces less waste Solid Ink Color Technology Phaser Printers for Small Medium Office Typical Laser Waste from 1 Printer 450 lbs Compared to laser Xerography: Solid ink sticks eliminate cartridges and other consumable items Conserves raw materials Generates 90% less waste* Lower operating costs, improved reliability and ease of use Solid Ink Waste 23 lbs 4000 AMPV, 4 Year Life Page 15

16 Toner Technology Conventional Toner Toner s Secret Agent Grinding step in conventional toner is Most energy intensive (up to 40% of total energy). Addition of embrittling agent (Eagent) makes toner particles easier to grind. Reduces overall energy consumption between 15-22% per pound of toner manufacturing for certain products. New Emulsion Aggregation (EA) Toner 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 Conventional Toner Paper Small and Spherical EA Toner Paper 40% 45% less toner mass Page 16

17 Driving toward sustainable paper-cycle Duplex productivity: paper consumption can be reduced by half Recycled paper reliability: post-consumer content papers run dependably Sustainably sourced paper Digital document management: facilitates print-ondemand and distribute-then-print in order to reduce waste New Xerox High Yield Business Paper Page 17

18 Services Greening the Office Current Situation Desired State Overabundant/underutilized assets Energy inefficiency Wasted manufacturing and materials Inefficient maintenance Legend Energy reduction: 27% GHG reduction 26% Waste reduction 33% Page 18

19 Beware of unintended consequences examples: Remanufacturing/reuse Energy Star eliminating grandfathering RoHS prohibiting reuse Embodied energy 5X use savings Premature disposal Multifunction technology More use phase power More materials of construction Replaces multiple personal & single function devices Solid ink printing More use phase power Lifecycle energy equivalent 90% less waste Re-writable paper printing technology More use phase power Trade Secrets & competitiveness Paper reuse saves 4X more energy REACH? Page 19

20 Key learning from our journey Science often not the key variable Y=f(x) Y = f (a * public perception) + (b * NGO activity) + (c * Political environment) + (d * geography) + (e * Competition) + (g * customer rqmt) + (h * scientific knowledge) +. Systems thinking critical and will require new approaches Products & services embody the cumulative impact of value chain Standards and regulations tend to be managed on national basis Value chains are global LCA limitations not generally well understood Current regulatory and eco-label frameworks are overly prescriptive Business impacts can be substantial Complexity & cost Competitiveness & trade barriers Proprietary information Innovation disincentive Page 20

21 Suggested metrics design considerations Science based vs perception based System vs single attribute/phase based Incent innovation vs stifle innovation Market incentive based vs regulated Global vs local Page 21

22 Thank you For more information, please visit: Page 22

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