DELL AUSTRALIA PTY LIMITED

Australian Packaging Covenant Action Plan For the period 2010 - 2016

DELL Australia Pty Ltd APC Action Plan 2016

CONTENT

1 Executive Summary ...... 2

2 Company Summary ...... 3

3 Dell Corporate Social Responsibility ...... 4-6

4 Packaging ...... 7-11

5 Dell's Producer Responsibility in Australia ...... 12-13

6 Packaging Covenant Signatory Commitments ...... 13-14

7 Schedule for Packaging Reviews ...... 15

8 Action Plan ...... 16

8.1 Introduction...... 16

8.2 Design ...... 16-19

8.3 Recycling ...... 20-24

8.4 Product Stewardship ...... 25-29

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DELL Australia Pty Ltd APC Action Plan 2016

1. Executive Summary

DELL Australia Pty Ltd (Dell Australia) is a signatory to the Australian Packaging Covenant (APC) and has prepared this Action Plan for the period 2010-2015.

Dell Australia became a signatory to the National Packaging Covenant on February 8, 2007. As an importer of packaged goods, Dell Australia is committed to upholding the principles of the Australian Packaging Covenant and this 2010 – 2016 Action Plan details the actions and targets put in place by Dell Australia to be undertaken over the next five years. An annual report will be prepared going forward to detail the achievements in relation to the Covenant principles on an ongoing annual basis.

Dell has an active development program in Materials Research and Packaging Design to advance sustainable packaging. Dell's product Phase Review Process (PrP) encompasses the entire development cycle of the product from "Concept to Sustaining." The environmental aspects of our product's design are integrated into the PrP through the use of the ISO 14001 standard. Dell is distinguished by having our Product Development activities certified to the ISO 14001 environmental management system (EMS) standard. Packaging is an integral part of this process.

Dell Australia, as a brand owner, a member of the packaging supply chain, and as a signatory to the Covenant, has set out a company-specific list of actions to adopt the Sustainable Packaging Guidelines. These have been prepared in consultation with our global packaging team based in Round Rock, Texas, United States of America, to ensure our reporting standards and capabilities in Australia are in line with our current global standards for our packaging supply chains. The aim is to build on established baseline data developed during the National Packaging Covenant and develop specific, achievable actions for the implementation of commitments we have made under the Covenant.

Each action is linked to the key performance indicators (KPIs) and targets as set out in the Covenant. Dell Australia created a central database for APC requirements along the lines of those already in place and as reported in our annual corporate social responsibility reports. This will manage the substantial data requirements of the implementation phase of the APC Action Plan and these records will be made available for review by the relevant parties on request.

Dell Australia has prepared a timeline for the next 12 months to address issues raised during the development of the Action Plan in each of the three main areas i.e. Design, Recycling and Product Stewardship. In Section 5 we layout our timeline and order of priority for the actions we aim to undertake under the Sustainable Packaging Guidelines (SPG).

The key goals for APC 2010 - 2016 are:

1. Design – Ensure that Dell’s packaging review process and associated initiatives cover all the topics required under the Sustainable Packaging Guidelines (SPG) or at least acknowledge what areas of the SPG are covered and develop procedures to address and record the remaining topics;

2. Recycling – Dell Australia will review our inhouse office recycling activities, discuss our recycling requirements with third-party distribution service providers, aiming to ensure packaging material is recovered from the waste stream and directed towards recycling, where possible;

3. Product Stewardship – Dell publishes a Corporate Social Responsibility Report each year indicating Objectives, Goals and Achievements for past and future years. Dell Australia will ensure our activities in the area of product stewardship are recognized and reported in this report.

2. Company Summary

For more than 30 years, Dell has empowered countries, communities, customers and people everywhere to use technology to realize their dreams. Customers trust us to deliver technology solutions that help them do and achieve more, whether they’re at home, work, school or anywhere in their world.

Michael Dell founded the company in 1984 as a 19-year-old with $1,000 and a game-changing vision for how technology should be designed, manufactured and sold. The company completed its initial public offering in 1988

2 DELL Australia Pty Ltd APC Action Plan 2016 and grew to become a global provider of technology solutions. In 2013, Michael Dell and private equity firm Silver Lake Partners bought back Dell from public shareholders to accelerate its long-term solutions strategy and to focus on the innovations and long-term investments with the most customer value.

As the company went private, Dell’s 2020 Legacy of Good Plan became one of the first long-term strategies laid out. The plan outlines Dell’s strategy for bringing sustainability and business objectives together, creating social and environmental benefits while driving customer outcomes. It contains 21 ambitious goals with a shared completion date of 2020 that will push Dell to be more innovative and collaborative. They are also based around the concept of shared value – that the decisions we make and the sustainable paths we choose will benefit all of us.

Dell Australia is a subsidiary of Dell Inc. (currently headquartered in Round Rock, Texas, United States of America). Dell Inc. operates worldwide and its subsidiaries develop, design, manufacture, market and sell computers and services, software and peripherals to customers worldwide. Dell Inc. listens to customers and delivers innovative technology and services that give them the power to do more. For more information, visit www.dell.com.

Our Australian operations now include offices in Sydney, Melbourne, Brisbane and Canberra, our logistics team managing CFI/CFS out of Mascot, and data centre capacity in Brisbane and Canberra. Through our acquisition of Quest, we now have a significant software development centre in Victoria and a sales office in North Sydney. Our capabilities have been boosted through the acquisition of EqualLogic, Compellent, Exenet, Ocarina Networks, Force10, Scalent, Wyse, RNA Networks, Gale Technologies, SecureWorks, KACE, SonicWall, AppAssure, Quest Software, Perot Systems, Boomi, InSite One, Clerity and Make Technologies.

Dell opened a Dell Solutions Centre in Sydney in May, 2012 and launched a new Data Centre Services that will enable Australian businesses to select solutions that will help drive business results. Two Tier 3 data centres, located in Brisbane and Canberra, feature all new technology around green power, highly dense computing capability, highly secure sites, redundant N+2 power are now operating offering Dell Smart Hosting and Disaster Recovery, Unified Communications as a Service (UCaaS), and customised Enterprise Managed Services (EMS). Two new Data Centres in Sydney and Melbourne were added July 2014 as with Cloud Services offerings of IaaS, SaaS, CaaS and DR and Backup as a Service.

From humble beginnings, our customer base now reads like a roll call of corporate Australia, alongside federal and state government departments, small and medium businesses, schools, universities and individual consumers.

3. Dell Corporate Social Responsibility

In 2013, Dell launched the 2020 Legacy of Good Plan – our long-term strategy for creating social and environmental good as part of our everyday business objectives. The plan looks up and down the entire value chain, setting goals to ensure Dell delivers on its commitment to put technology and expertise to work where it can do the most good for people and the planet. Three years into the plan and we are witnessing a shift toward shared value creation, where business decisions are also benefiting people and the planet.

Among the many highlights from the past year (Feb., 2015 – Jan., 2016), five stand out:

Innovative packaging solutions mean less waste How products arrive matters. Was the packaging designed in an environmentally friendly way that allows you to quickly unbox or conveniently store your shipment of electronics? After deployment, are you left with a mess that cannot be recycled? After all, packaging can quickly become a headache. In fact, the volume of packaging waste is staggering: nearly 80 million metric tons generated in the E.U. in 2011 alone.

Dell has set a goal of delivering waste-free packaging by 2020 to make the customer experience better while creating shared value in the communities it serves.

Progress to date has been strong: 7 out of 10 shipments worldwide arrive in what we define as waste-free packaging: where all materials used are sustainably sourced and easily recyclable or compostable. This includes all tablets and thin clients, 93 percent of laptops and 72 percent of flat-panel monitors.

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We have also begun to measure the total amount of waste-free materials that go into our packaging (by weight). Approximately 93 percent of all of Dell’s packaging materials (by weight) are sustainably sourced and easily recyclable or compostable.

While nearly all our materials by weight meet the definition, only slightly more than 70 percent of shipments arrive with all waste-free materials. Of course, that doesn’t mean the other 30 percent that have some non-sustainable or non-recyclable materials are entirely problematic. An excellent example: while only 10 percent of server shipments go out entirely waste-free, 81 percent of all server packaging materials by weight are sustainably sourced and recyclable or compostable.

Innovation plays a critical role in transforming our packaging solutions. We were the first in the industry to use bamboo (2009), mushrooms (2011), wheat straw (2013) and AirCarbon made from captured methane (2014), all while continuing to shrink the amount of materials sent to customers.

Dell is leading the way with its recycling efforts E-waste is one of the fastest growing waste streams, especially in the developing world. According to the StEP Initiative/United Nations University, 75 million tons of electrical and electronic equipment were discarded globally in 2015. These used electronics – whether warehoused after an organizational refresh or at home in the back of a closet –have tremendous embedded value.

Dell is committed to being part of the solution, offering many reuse and recycling options for customers around the globe and partnering with other organizations to extend our reach and make takeback solutions easier. We have an ambitious goal to collect 2 billion pounds of obsolete electronics by 2020 and are well on our way, having collected 1.6 billion pounds since 2007.

With offerings in 83 countries and territories, ours is now the world’s largest technology recycling program. We also collaborate with governments, nonprofits and other recyclers to expand takeback opportunities around the world. This includes our partnership with the U.N. International Development Office (UNIDO) to increase recycling opportunities in developing countries.

As an example, we worked with TechCollect in Sydney for the second annual e-Waste Recycling Day, collecting more than 8 tonnes of obsolete electronics.

Of course, taking back all that equipment is one thing, but what do they do with it? All of the equipment either gets donated for reuse (if it still has value) or broken down for recycling. We have also expanded our closed-loop recycled plastics supply chain, where we sort plastics from recycled electronics, melt them down and turn them into new parts. To date, we have created more than 7.5 million pounds of new parts for 48 different products (and tens of millions of units).

Improving energy efficiency across the whole product portfolio Driving energy efficiency helps customers reduce costs and make the most of their power – computing more while consuming less. As part of our Legacy of Good plan, we set a goal to reduce the energy intensity of our entire product portfolio by 80 percent by 2020 and we’re already at 43 percent since 2011.

This success is reflected in the fact that we had 416 products qualified to the ENERGY STAR standard (approximately 90 percent of all our eligible products) at the end of our fiscal year (always check the ENERGY STAR web site for the most current offerings). We estimate that, in addition to saving approximately $825 million on electricity costs, the customers who bought products last year will account for 2.9 million fewer metric tons of CO2e over the life of their products

4 DELL Australia Pty Ltd APC Action Plan 2016 compared to those who bought in 2011. It would take more than 74 million trees seedlings grown for 10 years to absorb that same amount.

We were very proud that our goal was recognized by CDP as a science-based emissions reduction target – the kind needed to help keep global temperature increases below 2°C.

Creating possibilities for underserved populations We believe technology has an important role in helping the youth of today realize a more promising tomorrow. Dell strategically provides funding, volunteer time and the latest technology to help them. We partner with local organizations who are already engaged in reaching underserved youth around the world, helping to drive digital skills for their future.

Working with local organizations that know the populations’ needs is an important part of our model. We provided financial assistance, volunteer time and the latest technology to 62 youth learning partners in 15 countries. Some examples include:

 The Learning Links Foundation is a Youth Learning partner in Chennai, India near Dell’s manufacturing site. Dell engineering and IT teams completed teacher training and taught courses to more than 150 students.  The TECH Truck, launched in partnership with the Perot Museum of Nature and Science in Dallas, Texas, was outfitted with 3D printers, laser cutters, Dell laptops and other technology to encourage experimental learning of STEM concepts.  In Morocco, our partner Bayti brings ICT, language and other career-building skills to street children and other underserved youth through 17 Dell technology labs in community centers. To reach young people in more distant communities, Bayti also hosts a mobile IT Caravan, traveling nearly 2,500 miles each year. Dell team members serve as Caravan facilitators to help youth in these communities learn how to use technology. In FY16, our team helped certify more than 6,000 young people as Dell Certified System Experts. Many of the students go on to paid positions after receiving the training and certification.

After a survey of 320,000 youth learning participants, we discovered half of them were accessing technology for the very first time.

Flexible workplaces yield more productive, more satisfied employees Where do you do your best work? We all have different styles and employers are increasingly keen on ensuring they attract and retain the best talent by ensuring they can work where and when they do their best. In fact, according to the Global Evolving Workforce Study (commissioned by Dell and Intel), 86 percent of the 4,700 study respondents believe they are just as productive or even more productive at home than they are in the office.

In 2015, Dell did a study of our own telecommuting efforts in the U.S. It demonstrated that telecommuting is a net positive solution:  The average Dell employee works remote 9.7 times per month, which is higher than the US average (2.3 per month)  Collectively, working remote helps Dell U.S. employees: o Save over $12 million in fuel costs per year (approx. $350 per employee) o Avoid 136 million miles of travel per year o Avoid over 35,000 metric tons of CO2e per year

The benefits of telecommuting go even further. We believe we helped our customers and their employees in the US avoid approximately 617 million round-trip commutes and 6.1 million metric tons of CO2e in 2015 through telecommuting (based on Dell’s share of U.S. server market, average telecommute frequency per Gallup and distances per the 2014 Global Workplace Analytics study ). It would take more than 150 million tree saplings grown for 10 years to sequester that much carbon (per U.S. EPA)

For a complete review of progress against all 21 goals, read the full report or see our online summary at http://legacyofgood.dell.com/.

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4. Packaging

A simple strategy has driven our packaging efforts since even before the formulation of the Legacy of Good Plan. The 3 Cs strategy looks holistically at the way we design packaging:  Cube: by reducing the overall size of the ‘box’ and other materials, Dell can minimize the amount of material needed and, for the customer, the amount of material that then needs to be dealt with after delivery. Smaller packaging volume reduces costs, enables more dense shipping, and minimizes greenhouse gas emissions.  Content: by emphasizing the use of recycled, rapidly renewable or otherwise sustainable materials, Dell engineers can reduce the overall impact of the packaging we use. That also means looking at the overall lifecycle of the packaging – considering what’s locally available and measuring the total carbon footprint where appropriate.  Curbside: it is a mistake to believe that some materials are not recyclable, but it’s worse to pretend those materials are easily recyclable. That’s why Dell puts a premium on developing packaging solutions that meet a very base level of recyclability – will it be taken by a local municipality’s recycling stream (or, in the case of compostability, does it meet simple standards for non-commercial composting, such as that set by ASTM) This ensures that no matter what kind of customer you are, you can easily recycle your packaging.

This strategy – still in place today – continues to inform the way we approach packaging. With the launch of the 2020 Legacy of Good plan, we added a pair of goals that codified our internal expectations of delivering waste-free packaging: 1. Ensure 100% of product packaging is made from sustainable materials by 2020 2. Ensure 100% of product packaging is recyclable or compostable by 2020

These goals and the 3Cs strategy inform everything we do.

Sourcing Dell’s packaging materials Dell’s design for environment spec DN362, Dell Restricted Materials for Use Specification# 6T198 and Recycling Marking Specification for Product Packaging Part no. G 3515 serve as guidance documents for packaging engineers, procurement teams and suppliers in relation to packaging requirements.

6 DELL Australia Pty Ltd APC Action Plan 2016 The documents details pack design requirements such as minimising materials, use of materials from sustainable sources, material types not acceptable for use in packaging, material identification to enable recovery and cube size to maximize transportation and storage efficiency.

As we continue to work toward our 2020 goal of making all product packaging from sustainable materials, Dell has continued to expand our packaging offering with higher recycled Currently, Dell uses the following packaging materials: content in different packaging components. Here is our current Outer box: corrugated cardboards, including those derived recycled content rate in different packaging: from wheat straw  Corrugated Cardboard, including those derived from wheat straw – contains a minimum of 25% post-consumer Inside cushion: HDPE, EPE, molded paper pulp, molded bamboo pulp, and/or EPS recycled content New cushion: mushrooms  Molded Pulp – 100% post-consumer recycled content Other: LDPE, AirCarbon accessory bags  HDPE – 100% post-consumer recycled content

Dell inbound packaging specification Dell p/n# 11500 is referenced in supplier contracts and master purchase agreements. Dell also uses the chemical use policy which all suppliers are require to adhere when supplying product and packaging material to Dell.

Dell requires supplier to sign the Supplier Declaration of Conformity (SDoC) to ensure that all product materials comply with Dell’s Environmental Policy. This documentation is required as part to production. To sign the SDoC, the supplier must ensure that the product meets the Dell Materials Restricted for Use Specification. At request, the supplier must also be able to provide technical documentation in the form of internal design controls, supplier declarations, or analytical test

Striving for 100% sustainably sourced Prior to the Legacy of Good Plan, Dell had a global goal to increase the amount of recycled content and renewable materials in our packaging by 40 percent between 2008 and 2012. We met that goal a year ahead of schedule, encouraging us to set the more ambitious goal of sourcing all product packaging from sustainable materials.

Our efforts to find the most sustainable materials has led Dell to launch several “industry firsts,” including the use of bamboo (2009), mushrooms (2011), and wheat straw (2013). All of this was made possible through our strong partnerships with innovative suppliers globally.

We initially turned to bamboo as a replacement for foam cushions in shipping lightweight products such as notebooks. The rapidly renewable material is light, strong and grows back at up to an inch per hour. All of our bamboo cushioning comes from FSC-certified sources.

Mushrooms provided Dell with an opportunity to replace some petroleum-based foam cushions for heavier shipments. The forms are grown for 5-10 days with a mixture of mushroom spores and agricultural wastes (as a food source for the mushrooms). After the kiln drying stops the growth process, the forms are ready to be used.

Our business client product boxes are made from corrugated cardboard, which is 100 percent recyclable. We use a large amount of recycled cardboard in our new cardboard, but cannot use 100 percent recycled content because it would lack the necessary structural integrity.

Just as Dell was the first technology company to use bamboo and mushrooms, we worked with packaging partner YFY Jupiter to launch the use of wheat straw in the manufacture of various packaging materials. The wheat straw (the part left over after the wheat harvest) is often burned by farmers, creating downwind air pollution. Instead, Dell and YFY Jupiter are purchasing the material and breaking it down using enzymes similar to those found in a cow’s stomach to use it in packaging. We helped YFY Jupiter launch the world’s first manufacturing plant for converting these agricultural wastes into paper pulp in Yangzhou, China in September 2013. The process uses 40% less energy and 90% less water than typical corrugate cardboard production.

7 DELL Australia Pty Ltd APC Action Plan 2016 We use the wheat straw in the manufacture of: 1) Corrugate board for Dell ship boxes 2) Molded pulp cushions used on a range of notebook platforms supplied by Asia-based ODMs.

Extensive testing in accordance with Dell test specification 00121 has validated suitability of wheat straw raw material for use in both the ship boxes and cushions.

At the end of FY14, the notebook packaging boxes were made from approximately 30% wheat-based fibre and 70% recycled-content, corrugated cardboard— up from the ratio of 15% wheat and 85% cardboard used when the boxes launched in mid-FY14. Wheat straw now makes up approximately 70% of the new molded paper cushions for notebooks, with the remaining 30% coming mostly from recycled-content paper.

We used nearly 2 million pounds of wheat straw in our packaging during the calendar year 2015.

We continue to examine the viability of scaling AirCarbon™ bags. AirCarbon is a carbon-negative plastic made Newlight Technologies from captured methane emissions, like those captured by dairy digesters, avoiding the use of oil. We tested the protective bags for approximately six months on Dell Latitude notebooks and are now looking at ways we could scale their use and/or apply Newlight’s innovative material to other packaging solutions.

We did not introduce any new packaging materials in the 2015 period, but will initiate a feasibility test of using ocean-bound plastics (non-point source plastics in coastal areas) as a source material for packaging in 2016 or 2017.

As of the end of FY16, 72 percent of Dell’s packaging meets the criteria for being sustainably sourced, putting us on target for meeting our 2020 goal.

Making recycling (and composting) easy

In support of the other half of our waste-free goal, Dell’s packaging is optimized for recycling. We make it easy for recyclers to sort packaging by labelling the packaging as per Society of Plastics Industry (SPI) coding from 1 to 7. Also our packaging meets heavy metal restrictions set by EU packaging directive 94/62/EC and as amended in 2004. Dell restricts the use of PVC in all our packaging. Our shipped pallets are compliant to ISPM 15 requirements.

In 2015, Dell also engaged in the IEEE 1680.1 computer standard’s (EPEAT) revision activity. We continue to bring in our technical expertise in revising this standard.

Among the materials we currently use, all of our corrugate containers and boxes, molded paper-pulp cushions, bamboo cushions and packaging materials made with wheat straw (boxes and molded cushions) are recyclable at a majority of municipal recycling facilities.

The bamboo and mushroom cushions also received ASTM D-6400 certification from the Soil Control Lab for compostability. This certification assures customers that the materials will satisfactorily biodegrade and compost at a rate comparable to known compostable materials.

The certification also assures that the compost resulting from the packaging’s degradation process is of good quality and can sustain plant growth. During the compostability testing, engineers grew cucumber and sunflower plants in soil mixed with our bamboo packaging compost.

As of 2015, 72% of Dell packaging deliveries and 93% of packaging materials are compostable and recyclable, putting us on track for meeting our 2020 Legacy of Good goal.

8 DELL Australia Pty Ltd APC Action Plan 2016 Continuing to find ways to reduce packaging One of Dell’s long-term global packaging strategies is to minimize the amount of packaging we need to ensure products arrive safely, but without waste. As outlined in our action plan, Dell globally introduced a plan in 2008 to eliminate 20 million pounds (9,072 tons) of packaging material between 2008 through 2012 from desktops and notebooks. While we met the goal, we continue to track our efforts for mainstream products. Since 2009, Dell has eliminated a total of 33.6 million pounds (15,240 metric tons) of packaging weight, saving the company more than US $65.9 million.

One of the ways we are able to reduce packaging is through the use of multipacks – when a customer orders several of the same product, upon request, we can bundle them together in a way that greatly reduces the amount of packaging material customers have to deal with after unpacking.

Multipack is offered on a limited basis but is available for most 1U and 2U servers, OptiPlex™ desktops and Latitude™ laptops. For our PowerEdge™ M-Series blade servers, we have taken Multipack to new heights, and ship a fully configured chassis in a single box. This enables our customers to unpack and start up their new blade servers in about 15 minutes.

Multipack packaging types include: . Server Multipack — Expanded to M1000E Multipack, which holds eight blade systems, reducing the cube by on average 42%.

. OptiPlex Desktop multipack packaging - Reduces the cube on average 27%.

. U.S. Latitude multipack packaging — Reduces the cube on average 33%.

Beyond the use of multipack, we are also committed to finding smaller packaging designs for individual units without compromising safe delivery. A recent set of redesigns has helped us reduce the size of Dell laptop ship boxes and cushioning components. This increased the number of boxes we can fit on each pallet, and in each shipping container, while maintaining our quality levels.

For example, we achieved a 27 percent increase in units per pallet for our Latitude™ E5550 and can now ship 84 units per pallet. We achieved a 15 percent increase in units per ocean-going shipping container for the Inspiron™ 3441, adding 500 more units per container.

Innovation sessions bring suppliers into the process We regularly host innovations sessions with our suppliers. The outcome-based brainstorming sessions bring packaging providers, logistics providers and other industries together to review ideas and technologies. The participants range from Fortune 500 corporations to start-ups, all looking for new, cost-effective and sustainable ways to help deliver on the Legacy of Good goals.

Closed-Loop Recycled Plastics in Dell products In 2015, Dell expanded our closed-loop efforts, recycling plastics from old retired electronics back into new products with the help of our partners. By the end of FY16, we had 48 different products (monitors, desktops and all-in-ones) that featured parts made this way.

The process begins with customers who recycle their old systems through our take-back efforts. In the pilot project, we are separating out plastics collected through Dell Reconnect partners in the U.S. The plastics are separated into types and shipped to our manufacturing partners in China. Meanwhile, other materials from the computers are similarly recycled and separated, then sold on the commodities market for reuse by others. When the plastics arrive, they are shredded at the manufacturing facilities, melted and blended (currently 35 percent recycled-content), then molded into new parts. These parts (often back panels or enclosures) are then assembled into the final computer. We’ve produced tens of millions of computers with these parts.

For more information visit www.dell.com/closedloop.

Dell has incorporated KPI 4 as part of our Zero waste 2020 goal.

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Awards and Recognition

Dell is humbled by the multiple honours bestowed up on us, including last year’s 2015 APC Award in the Large Communications and Electronics Category. Additionally, we were listed #1 on Computer Business Review’s Top 10 Greenest Tech Companies and took home a 2016 CES Innovation Awards for the Dell UltraSharp InfinityEdge Monitor, which won in the Eco-Design and Sustainable Technologies category for its use of closed-loop plastics. The Sustainable Purchasing Leadership Council also saw fit to present its Outstanding Case Study Award for our closed-loop plastics work.

Dell was also recognized by the U.S. EPA’s Sustainable Materials Management Electronics Challenge with both a Gold Tier Award (for the second consecutive year) and a Champions Award. The Consumer Technology Association named us an Initiative Leader in the eCycling Leadership Initiative for the fifth consecutive year and the Taiwan Ministry of Economic Affairs again recognized us with an IPO Award for Green System Partners.

We are also very proud of other related awards:  Diversity Inc – ranked Dell’s supplier diversity program #2 in FY16.  Women's Business Enterprise National Council named Dell a top corporation for women-owned businesses (seven years in a row).  Ethisphere Institute—Named to World's Most Ethical Companies list (third consecutive year).  FlexJobs—#12 on 100 Top Companies with Remote Jobs (second consecutive year).

Links and resources:

 Annual Update on 2020 Legacy of Good Plan: www.dell.com/legacyofgoodupdate  Dell sustainable packaging: www.dell.com/packaging  Bamboo Packaging: www.dell.com/bamboo  Mushroom Packaging: www.dell.com/mushroom  The wheat straw packaging www.dell.com/wheat  Air Carbon: www.dell.com/aircarbon  Sustainable Purchasing Leadership Council: https://www.sustainablepurchasing.org/

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5. Dell’s PRODUCER RESPONSIBILTY in Australia

The Product Stewardship Act 2011 for Television and Computers Regulation came in force on 2011.

Dell is a Founding member of the Australia and New Zealand Recycling Platform (ANZRP), TechCollect program since April 2012. Dell has an ongoing partnership with ANZRP to fund the National TV Computers Recycling Scheme.

Over the two-year period (2014-2015), Dell partnered with ANZRP TechCollect in an annual one-day recycling event at the Dell Australia Frenchs Forest Head office. Together we collected more than 30K kg of eWaste (excludes packaging). Dell plans to expand this one-day event significantly in the future.

Before the legislative requirements, Dell has been offering free consumer take back programs from 2006. Dell was the first to offer the recycling programs in Australia.

1. Take Back Dell - Free recycling of any Dell branded equipment from any location in Australia (metro, country and remote). You do not need to purchase any new Dell equipment to qualify for this program. Terms and conditions apply at the Recycling for Home link at www.dell.com.au/recycle.

2. Buy Dell, Recycle Free - Free recycling of any brand when you buy a Dell XPS, Inspiron or Vostro PC. Dell will recycle any brand of personal computer on a one- for-one basis when you buy a new Dell XPS, Vostro or Inspiron desktop or notebook – metro regions only. Terms and conditions apply at www.dell.com.au/recycle.

3. Printer Supplies Recycling http://www.dell.com/learn/au/en/aucorp1/corp-comm/recycling-inktoner- au?c=au&l=en&s=corp&delphi:gr=true

Dell has demonstrated leadership in asset disposal and recycling services in Australia.

Asset and Recovery Services in Australia

Identity theft, standards compliance, environmental liability — these concerns are increasingly top of mind for today’s businesses. Whether it's personal financial information, highly confidential health records or corporate intellectual property, business servers, desktops and laptops across the globe hold some of the most sensitive and proprietary data. Add to this the environmental impact of obsolete equipment, and it’s clear that proper disposal of computer equipment that has reached the end of its life cycle has never been more important.

Dell can help you recover, resell, recycle or return to lease your excess computer equipment in a secure and environmentally conscious manner that complies with local regulatory guidelines.

Head Office, Frenchs Forest Environmental Activities

11 DELL Australia Pty Ltd APC Action Plan 2016 Dell Australia promotes recycling and responsible paper usage in its own offices. With regard to recycling, Dell Australia has worked with the property manager for its main office to implement an onsite recycling service which enables all tenants in the building to sort paper, bottles and general waste. We have also moved to the use of recycled paper in all the printers in our offices and set the default to double-sided printing. In addition, our printers and fax machines are set to no longer print activity reports.

For the past year an informal group had been working to minimize our energy consumption and waste, improve our recycling and increase community volunteering. This year, we are formalizing the group as ANZ Planet, Dell’s Employee Resource Group (ERG) with a set of programs and regular communications to achieve these goals.

As part of our ongoing efforts to reduce our environmental footprint in Australia and elsewhere, Dell’s Data Centre Air Conditioning Upgrade Project reduced the volume of air cooling by up to 80% by making upgrades to equipment and taking advantage of higher-temperature computing. The effort reduced greenhouse gas emissions by approximately 140 tons in year one and Dell Australia's energy consumption dropped by 13% during 2015.

6. Packaging Covenant Signatory Commitments

Dell Australia became a signatory to the National Packaging Covenant on February 8, 2007. As an importer of packaged goods, Dell Australia is committed to upholding the principles of the Australian Packaging Covenant and this 2010 – 2016 Action Plan details the actions and targets that have been put in place by Dell Australia to be undertaken over the next five years. An Annual report will be prepared going forward to detail the achievements in relation to the Covenant principles on an ongoing annual basis.

Dell will continue to work with its Principal and suppliers to ensure that all the members of its packaging supply chain conform to the requirements of the Australian Packaging Covenant. Dell’s environmental stewardship program drives conservation of product energy consumption; develops methods to reduce or eliminate materials for disposal; prolongs product life span; and provides effective and convenient equipment recovery solutions. For information concerning Dell’s Environmental Affairs programs, please see: http://www.dell.com/environment.

6.1 Covenant Contact Officer

Ms Susan Poh as the ANZ Producer Responsibility Compliance Manager will be responsible for Dell Australia’s commitment to the Australian Packaging Covenant. She will report to Dell Australia’s Managing Director, Ms Angela Fox, on all matters relating to the Australian Packaging Covenant. This Action Plan has been endorsed by Ms Angela Fox.

6.2 Our APC team

In relation to packaging, the development and review of new packaging is primarily headed by the WW Packaging and Procurement Director’s organisation. Members of several other functions such as product core teams, Marketing, platform planning, WW Environmental Affairs, and part of the Aggregate product planning stage are involved in the review process. Dell Australia will call upon these global resources to assist the Australian office implement the Sustainable Packaging Guidelines as the majority of issues may already be covered by a current activity or reporting requirement of these departments.

Dell believe a combination of the expertise we have in the Australian office combined with the resources of our WW packaging team, assisted by our local advisors, will result in a team that will complete the SPG requirements to the highest standards.

We have identified the key departments required to have input and have created a team made up of the following individuals to work on this key project as part of our ongoing efforts to address packaging:

Name: Responsibility: Susan Poh ANZ Producer Responsibility Compliance Puneet Shrivastava WW Environmental affairs Jim Quirke, WW Packaging & Procurement Stephen Roberts Corporate Social Responsibility

12 DELL Australia Pty Ltd APC Action Plan 2016 This APC team will work collectively over the next year due to the extension of the APC 2010-2016 Action Plan to develop a world-class repository for all information relating to the Sustainable Packaging Guidelines and APC requirements, while carrying out all tasks necessary to achieve compliance with the APC membership. Individuals may not be involved in all twelve strategies relating to the Sustainable Packaging Guidelines, and a number of current global initiatives may already negate the need to address particular elements of the SPG.

Dell WW Packaging and Procurement has been actively collaborating with other companies and supporting research to drive sustainable packaging solutions for IT industry.

Dell is involved with every step of our products packaging design and procurement. We work with overseas suppliers in the design and layout of each individual products promotional material and packaging. As part of our initial Sustainable Packaging Design audit, we have requested our suppliers complete all sections of the guidelines over which they have influence in the overseas markets i.e. querying manufacturers of packaging in relation to material minimisation, use of recycled content. We have also requested information in relation to the consumption of resources, as well as water and energy efficiency.

Our aim as a brand holder is to ensure every stage in the development of our products packaging is considered under the Sustainable Packaging Guidelines.

Dell Australia and our advisors aim to hold regular quarterly meetings where we will progress the actions we have listed in the Action Plan as an ongoing project. The team will endeavour to have a timely implementation of the Action Plan and will ensure data is stored in an auditable manner in our in-house APC audit database. Our aim is to store all documents electronically in a secure central location in a SharePoint repository.

Dell engages with our main manufacturers and communicates the need for the Sustainable Packaging Guidelines as part of our 2020 Legacy of Good goals to develop packaging that is 100% sourced from sustainable sources and is entirely recyclable or compostable once it serves its purpose. Our suppliers are a key part of our strategy and help us meet these commitments. Suppliers advise if they have checked on the possibilities of additional reduction in the materials used in the packaging and input to the process of minimising the use of materials and other resources. Tier 1 suppliers to Dell are part of this Packaging optimisation opportunities.

Our challenge is to first minimize packaging and to then create the packaging we do need from materials that will not create waste for our customers—in other words, make them recyclable and compostable. However, finding cost- friendly and consistent sources for these materials can be an obstacle.

As with product design, we took the long view when designing new packaging in 2015, thinking about how a customer would ultimately recycle or compost each element. In October 2015, we again hosted a combination of open innovation sessions in Austin, TX based facility and outcome-based brainstorming sessions with packaging providers, logistics providers and other industries. We reviewed ideas and technologies from organizations ranging from Fortune 500 corporations to start-up companies, looking for new cost-effective and sustainably sourced materials that are also recyclable or compostable, as well as new manufacturing methods that can also increase the recyclability or compostability of our packaging.

7. Schedule for packaging reviews

Dell Australia has identified that our product line is the most appropriate method to review packaging. We have allocated the staff, time and systems necessary to ensure this is carried out on an ongoing basis through continuous product development protocols.

7.1 Types of Packaging Used

Our relationship with packaging:

1. Dell supplies seven types of material, with many sub groups in each e.g. seven types of plastic within the plastic range; 2. Dell has used many stringent reporting requirements with our suppliers to ensure we deal with only the most sustainable of companies; 3. Dell is constantly comparing our baseline data to industry benchmarks and best practice globally.

13 DELL Australia Pty Ltd APC Action Plan 2016

7.2 Timetable for Review

An initial review of our key product was carried out as part of the preparation of this Action Plan. On the basis of this initial review, Dell Australia has determined the following target Timetable for Review:

% of Product Lines Reviewed Review Period: Existing New 1/4/2011 – 31/3/2012 20% 20% 1/4/2011 – 31/3/2015 100% 100% 1/4/2015 – 31/12/2016 100% 100%

14 DELL Australia Pty Ltd APC Action Plan 2016

8 Action Plan

8.1 Introduction

Our APC team has worked collectively to review existing systems and procedures to assist in the development of a baseline for Action Plan indicators, and also to identify any gaps that exist in current reporting systems. This has provided a list of actions for the implementation of the Plan over the next twelve months and the lifetime of this Plan. These are set out below and are not exhaustive as many of the APC goals are already addressed through current systems within Dell - our sustainable packaging designing program of 3Cs – Cube, Content and Curbside (Kerbside).

Our action plan is split to show the actions we will take under the three main headings:

. Design; . Recycling; and . Product Stewardship

A summary of the actions is also provided in the Action Plan Tables section.

8.2 Design

Dell Packaging Engineering is actively involved with reducing the packaging in all areas of the company’s business. These include our mainstream products such as notebooks, desktops, servers and storage systems. In addition Dell’s packaging procurement guidelines also apply for monitors, printers, accessories, software & peripherals, service, and packaging of inbound material from suppliers.

The company has an active development program in Materials Research and Packaging Design to advance sustainable packaging. Dell provides practical, innovative packaging solutions that minimise impacts on the planet and make it easy for customers to do the same. Always striving to find a better way, we have created a metric for packaging improvement which we will aim to apply to our Australian operations packaging over the course of the Australian Packaging Covenant.

Dell designs and engineers its products and packaging to prevent pollution and conserve natural resources throughout the system's life cycle. We work with the best available suppliers and processes so we can ensure a stable packaging product that will first protect the shipment, and second do so in the most environmentally responsible way without impacting the overall customer experience.

Dell Worldwide Packaging and Procurement Director is responsible for the packaging design process and decisions for advancing the introduction of sustainable packaging materials. We believe this global approach will run complimentary to the requirements under the Sustainable Packaging Guidelines.

8.2.1 Covenant Goals

For DELL the goal is to look at optimising packaging to use resources efficiently and reduce environmental impact without compromising product quality and safety. In order to do this, DELL has committed to review existing procedures for new packaging design or procurement to ensure these cover the requirements of the Sustainable Packaging Guidelines.

Dell’s goal for sustainable packaging for the reporting period are: • Dell’s 2020 Sustainable Packaging goals http://i.dell.com/sites/doccontent/corporate/corp-comm/en/Documents/2020-plan.pdf

8.2.2 Outcome

The outcome should be packaging designed to:

15 DELL Australia Pty Ltd APC Action Plan 2016 . Avoid or minimise the use of materials and other resources . Optimise recyclability and recycled content . Reduce litter impacts . Ensure 100% of product packaging is sourced from sustainable materials . Ensure 100% of Dell packaging is either recyclable or compostable

8.2.3 Key Performance Indicator

The Key Performance Indicator for design will be evidence that Dell is implementing the Sustainable Packaging Guidelines (SPG) for design and procurement of packaging.

Dell global product development is certified to ISO 14001:2004 Environmental Management System.

Dell’s ISO 14001:2004 certificate can be found online at: http://i.dell.com/sites/content/corporate/corp-comm/en/Documents/dell-iso14001-worldwide.pdf

Dell global product development certificate No. 14.5000/R1/S includes product and packaging design. The most recent external re-certification audit was performed on 17-19 June 2013 by the National Standards Authority of Ireland.

Dell product & packaging design group is recertified until 24 January 2017. In addition to external audits Dell product group conducts its own internal annual assessment as part of ISO 14001:2004 compliance. As per the ISO 14001:2004 standard we review our Aspects and Impacts periodically and set goals and objectives to improve environmental performance to achieve them. Dell specifications governing packaging design and procurement and our supplier engagement models governs packaging evaluation against our sustainable packaging guidelines.

Dell Inbound Packaging Specification PN 11500, Dell design for environment spec DN362, Dell Restricted Materials for Use Specification PN 6T198 and Recycling Marking Specification for Product Packaging PN G3515 serve as guidance documents for packaging engineers, procurement teams and suppliers in relation to packaging requirements. The documents details pack design requirements such as minimising materials, use of materials from sustainable sources, material types not acceptable for use in packaging, material identification to enable recovery and cube size to maximize transportation and storage efficiency.

We require all our suppliers to comply with the environmental specification around the restricted substance, packaging labelling, packaging design for environment including but not limited to post-consumer recycled content etc.

8.2.4 Current and Planned Actions

Target: According to your Action Plan, what Actual: What did you achieve? did you set out to do? KPI 1: % of signatories with documented policies and procedures for evaluating and procuring packaging using the SPGs or equivalent.

Review existing packaging using the Dell used following packaging materials – Sustainable Packaging Guidelines Outer Box: 1) Corrugated cardboards Inside Cushion: 1) HDPE; 2) EPE*; 3) Molded Paper Pulp; 4) Bamboo;5) Mushroom 6) EPS* 7) Wheat Straw *Note: extremely small percentage in select flat panel Monitors Other: LDPE Accessory bags

At the beginning of APC reporting, Dell engaged with all of our plastics packaging suppliers and Corrugated Cardboard supplier to establish baseline against SPG KPI's.

We evaluated: mushroom packaging and bamboo packaging material as these were launched after the APC plan was finalized.

16 DELL Australia Pty Ltd APC Action Plan 2016

In 2014, sustainable wheat straw material used in our ship boxes and cushioning was chosen for evaluation. That completed our assessment of packaging materials against the Sustainable Packaging Guidelines from APC.

Since no new packaging material was introduced in 2015, Dell continued to optimize the box size and reduced the amount of packaging material used in Dell products.

Review new packaging using the Sustainable After the successful pilot of Air Carbon bags, Dell Packaging Guidelines introduced it in selected notebook products in US market. We are working with the packaging supplier to fully commercialize this for other major markets. Initial assessment on Air Carbon is on following link: www.dell.com/aircarbon Reduce Packaging Weights in 2015 In year 2015 alone, we eliminated 2.3 million pounds of packaging material. Total packaging material reduced since November 2008 till 2015 amounts to 33.6 million pounds.

2008- 2012 Cube , Curbside and Content goals Goals met and exceeded. (See FY 13 Dell corporate Responsibility Report ) New 2013- 2020 Sustainable Packaging Goals At the end of FY16, 72 percent of product packaging is sourced from sustainable materials, an increase from 66 percent in FY15. We define sustainable materials specifically as those that come from recycled or renewable (preferably rapidly renewable) sources.

Also, 72 percent of all Dell packaging by sales volume could be considered recyclable or compostable. This means that, in seven out of ten Dell shipments, 100 percent of the packaging is recyclable or compostable.

We continue to categorize a material as being recyclable if it is accepted by at least 60 percent of municipalities, and as being compostable if it can be certified to meet ASTM D6400 standard. This goal status on Packaging Sourced from Sustainable Materials and Packaging is Recyclable or Compostable at end of FY15 keeps us on track for meeting our 2020 waste-free packaging goals.

Liaise with global suppliers to ensure existing Dell engages with our main manufacturers and products meet the SPG guidelines communicates the need for the Sustainable Packaging Guidelines as part of our 2020 goals to develop 100% of packaging which is sourced from sustainable sources and is recyclable once it serves its purpose.

Our suppliers are key part of our sustainable strategy and help us meet commitments to our 2020 commitment. Suppliers advise if they have checked on the possibilities of additional reduction in the materials used in the packaging and input to the process of minimising the use of materials and other resources.

Tier 1 suppliers to Dell are part of this Packaging optimisation opportunities.

17 DELL Australia Pty Ltd APC Action Plan 2016

Creative packaging design reduces size

As part of Dell’s packaging strategy, we streamline the size of our boxes and cushions in order to reduce overall packaging volume. Smaller boxes means more Dell products per shipment, which translates to fewer emissions generated per product shipped and ultimately, less waste for our customers

Additionally, we created Multipack for times when you place large orders of certain products like servers, notebooks or desktops. By combining multiple items in one box, Multipack significantly reduces the amount of cardboard you’re left with — cutting the number of boxes by as much as 90 percent.

Optimising recyclability and recycled content

Our challenge is to first minimize packaging and to then create the packaging we do need from materials that will not create waste for our customers- in other words, make them recyclable and compostable. However, finding cost- friendly and consistent sources for these materials can be an obstacle. As with product design, we took the long view when designing new packaging in 2015, thinking about how a customer would ultimately recycle or compost each element.

In October 2015, we hosted a combination of our 8th open annual innovation sessions in Austin, TX based facility and outcome-based brainstorming sessions with packaging providers, logistics providers and other industries. A total of 11 suppliers attended the session. We reviewed ideas and technologies from organizations ranging from Fortune 500 corporations to start-up companies, looking for new cost-effective and sustainably sourced materials that are also recyclable or compostable, as well as new manufacturing methods that can also increase the recyclability or compostability of our packaging.

In addition Dell’s packaging is optimized for recycling. We make it easy for recyclers to sort packaging by labeling the packaging as per Society of Plastics Industry (SPI) coding from 1 to 7. Also our packaging meets heavy metal restrictions set by EU packaging directive 94/62/EC and as amended in 2004. Dell restricts the use of PVC in all our packaging. Our shipped pallets are compliant to ISPM 15 requirements.

8.3 Recycling

8.3.1 Covenant Goals

For Dell Australia the goal for recycling is to make a contribution to improved recovery of packaging by having on- site recovery systems for recycling of used packaging and to consider a policy to purchase products with a recycled material content.

Dell designs all packaging so that it can be disposed of in an environmentally friendly manner. This includes choosing of materials that can be easily accepted for recycling in most of the communities, properly labelling packaging to educate consumers for responsible recycling, marking plastics packaging using SPI plastics code to aid recovery, sorting and composting.

8.3.2 Outcome

The outcome should be:

. Improved recovery of recycled materials from the premises of Dell Australia. . Improved recovery of packaging by having on-site recovery systems for recycling of used packaging at factories and outsource vendors . Implement formal policy of buying packaging made from recycled products.

8.3.3 Key Performance Indicator

The Key performance indicator for recycling will be evidence that Dell Australia is implementing the on-site recovery of packaging through documentation provided from our contracted waste managers, factories and outsource vendors.

18 DELL Australia Pty Ltd APC Action Plan 2016

Office Waste is included in our Distribution centres recycling and waste metrics.

8.3.4 Current and Planned Actions

Dell has commenced the review of all on-site waste management practices in relation to our in-house waste, and has also continued to look at buy recycled as part of our general purchasing practices.

8.3.4.1 Optimise Onsite recovery systems at all Dell -operated buildings

Dell Australia promotes recycling and responsible paper usage in its own offices. With regard to recycling, Dell has worked with the property manager for its main office to implement an onsite recycling service which enables all tenants in the building to sort paper, bottles and general waste. Together with the ANZ Planet Employee Resource Group, Dell improved existing on-site recycling to include: - Installation of centralised waste paper stations - Building wide recycling program for General Waste - Recycling of E-waste, batteries and phones all year through reception - Cigarette Butt recycling program in Sydney office - Commenced purchase of replacement office chairs that are Green Tag certified and 96% recyclable.

In addition, Dell Planet group organised campaigns like  2016 National Recycling Week – 7-13 November 16  Recycling Campaign on centralised bins  Recycling Education in main kitchens

8.3.4.2 Identify existing waste streams and opportunities to improve On -site recovery systems for recycling used packaging for Dell.

Schenker, our primary Logistic partner manages all Dell‘s assets/ inventory within the Sydney warehouse. Their warehouse in Botany is 100% Dell site and Schenker assisted with onsite recovery systems for recycling used packaging for Dell.

Prior to 2012, these used packaging would have gone to landfill. The operations team and the environmental team continually review this list for new waste streams. Schenker deals with a preferred waste management partner to continuously optimise these systems

Plastics Cardboard Pallets Bioreactor tons tons tons tons 2014 18 84 0 55 2015 59 185 5 96

In line with Dell's requirement, our Warehouse vendor put in place Waste disposal equipment at Botany

Cardboard 35m3 Auger (pre-shredder) Compactor with 1100L bin lifter Clear Plastic Trethewey Autobaler Landfill 30M bin Plastic Black Slip sheets Stacked in between pallets Polystyrene Recycled stored in cages, not reporting in place yet Cardboard/Plastic 1100L bins to tip into the balers

8.3.4.3 Ensure On-site recovery systems for recycling of Dell's used packaging at TES AMM, Dell’s environmental partner

Volume of Dell's used packaging material : • Foam and plastics -99% is diverted from landfill.

19 DELL Australia Pty Ltd APC Action Plan 2016 • Paper and Cardboard – 95% is diverted from landfill

TES worked with downstream vendor for foams like Dunlop who are committed to reducing landfill and overall impact on the environment. Dunlop recycle carpet underlay, and use recycled content within their underlay products. Dunlop underlays are made of 90% recycled materials and are 100% recyclable.

TES send all their timber pallets to a Sydney-based pallet supply, repair and reuse company that produce poultry bedding. 0.67 tonnes of carbon dioxide is saved for each tonne of timber packaging diverted from landfill.

8.3.4.4 Buy recycled as part of our general purchasing practices.

Dell inbound packaging specification Dell p/n# 11500 is referenced in supplier contracts and master purchase agreements. Dell also uses the chemical use policy which all suppliers are require to adhere when supplying product and packaging material to Dell.

Dell requires supplier to sign the Supplier Declaration of Conformity (SDoC) to ensure that all product materials comply with Dell’s Environmental Policy http://i.dell.com/sites/doccontent/corporate/corp-comm/en/Documents/dell- global-environmental-policy.pdf

This documentation is required as part to production. To sign the SDoC, the supplier must ensure that the product meets the Dell Materials Restricted for Use Specification. At request, the supplier must also be able to provide technical documentation in the form of internal design controls, supplier declarations, or analytical test data.

Use of Recycled content in Office Paper: - Dell uses up to 75% post consumer content in the office copy paper - Dell used up to 36% recycled content in the direct marketing paper. In additional up to 93% of the Dell catalog fiber was sourced from the Forest Stewardship council - certified sources.

Use of Recycled Content in Packaging: Dell uses recycled-content materials to cut waste. Specifics vary by world region and product shipped, but includes Corrugate cushion, thermal-form high-density polyethylene (HDPE) and Molded pulp cushion. HDPE cushions are made using recycled-content plastics derived from recycled milk jugs and detergent bottles. Our HDPE cushioning, which is made from 100 percent recycled content from milk jugs and detergent bottles can be recycled through many kerbside and corporate programs. Molded paper pulp is made from recycled paper and is used with some of our desktops. Both help return commonly recycled materials back for reuse again.

Corrugated boxes used in Dell products contain at least 25% post-consumer recycled content in them. In some cases our suppliers use in excess of 50% post-consumer recycled content in corrugate cardboard packaging.

See section 4.8.3.1 in Dell's EPEAT Product Registration at the link http://ww2.epeat.net/publicSearchResults.aspx?return=search&&status=1&ProductType=1,2,3,4,5,6&stdid=1&man ufacturer=28&epeatcountryid=2&

See declaration of Post consumer recycled content in every Dell products Environmental Datasheets http://www.dell.com/content/topics/global.aspx/about_dell/values/regulatory_compliance/dec_conform?c=us&l=en &s=corp&~ck=anavml

Target: According to your Action Plan, what did you set Actual: What did you achieve? out to do?

Dell 2020 goals to make packaging out of more Dell has continued to expand our packaging offering sustainable materials with higher recycled content in different packaging components. Here is our current recycled content rate in different packaging: • Corrugated Cardboard – Minimum of 25% Post- Consumer Recycled Content • Molded Pulp – 100% • HDPE – 100%

Closed Loop Recycled Plastics in Dell products : In 2014, Dell explored using plastics from old retired electronic products back into new products with the help

20 DELL Australia Pty Ltd APC Action Plan 2016 of our environmental partner. With the launch of the OptiPlex 3030 All-in-One, Dell became the first in the industry to offer a computer made with third party certified closed-loop recycled plastics.

The process begins with customers who recycle their old systems through our take-back efforts. In the pilot project, we are separating out plastics collected through Dell Reconnect partners in seven U.S. states.

The plastics are separated into types and shipped to our manufacturing partners in China. Meanwhile, other materials from the computers are similarly recycled and separated, then sold on the commodities market for reuse by others. When the plastics arrive, they are shredded at the manufacturing facilities, melted and blended (currently 35 percent recycled-content), then molded into new parts. With the OptiPlex 3030, this includes the stand and the back plate of the computer/monitor. These parts are then assembled into the final computer. The OptiPlex 3030 is the first product certified by UL Environment to their closed-loop standard, with the result that at least 10 percent of the product is made of closed-loop plastics. Throughout 2014 we will add additional desktops and monitors that will use the closed-loop process. By reusing plastics from old electronic products, Dell is cutting down on e-waste, saving resources and reducing carbon emissions by 11 percent compared with virgin plastics.

At the end of FY15, we have over 40 Dell products shipping globally with closed loop recycled plastics. For more information visit www.dell.com/closedloop

8.3.4.5 Recycle and Compost your Packaging

Many of our packaging materials are recyclable (depending on location), compostable or both. The following information (also available online) is meant to help you understand the packaging materials that accompanied your Dell product:

21 DELL Australia Pty Ltd APC Action Plan 2016 Material Action Notes  Made with a minimum of 25 % recycled cardboard (percentages may be Corrugated higher in some regions) containers Recycle  Minimal printing/graphics on the box maximizes recyclability and boxes  Widely accepted for recycling around the world

 Used for shipping parts and peripherals; they take up less space and create less waste than a rigid box Packaging Recycle envelopes  Made from paperboard that contains some recycled content

 Often recyclable — check with your local program

 Recycles like cardboard — many recyclers will take them (check local guidelines) Bamboo Recycle or cushions compost  Certified compostable by ASTM International standards

 Learn more about our bamboo packaging

 Grown rather than made, using agricultural waste and mushroom spores Mushroom Compost  Used to protect multiple servers in a single box (Multipack) cushions  Certified compostable by ASTM International standards

 Used to cushion larger products, such as desktops Molded paper-pulp Recycle  Made from recycled newsprint and other paper sources cushions  Usually recycles like cardboard — check with your local recycler

 Often made from recycled plastics, such as water bottles or milk jugs, to protect larger products HDPE Recycles  Carries the #2 recycling symbol, which is accepted in many places cushions most places  After you recycle, they get turned into other recycled-content materials, such as plastic lumber and even more bottles

 Expanded polyethylene (EPE) is flexible foam used to protect some Non- shipments EPE cushions recyclable  Not widely accepted for recycling

 Lightweight, inflated plastic cushions made of #4 plastic Air Pack Puncture to  May be accepted for recycling — check with your local recycler cushions reduce use  Help minimize waste by puncturing

8.4 Product Stewardship

8.4.1 Covenant Goals

The goal for Product Stewardship is that DELL show a demonstrated commitment to product stewardship through working with third parties.

22 DELL Australia Pty Ltd APC Action Plan 2016 8.4.2 Outcome

The outcome should be:

. Formal processes in place for collaborating with other companies or organisations on improved packaging designs and/or recycling which aims to reduce or eliminate waste.

8.4.3 Key Performance Indicators

The key performance indicators for product stewardship are;

. Have formalised procedures in place to work with others to improve design and recycling of packaging; . To engage in other initiatives that show product stewardship such as education, sponsorship of initiatives etc; and . To reduce the occurrence of litter in their operations and encourage clients to properly dispose of the packaging of products to remove them from the litter stream.

Dell Australia is committed to the principle of Product Stewardship at all stages in the life of our products, including the packaging chain.

Dell has been actively collaborating with other companies and supporting research to drive sustainable packaging solutions for IT industry.

• Dell is member of Sustainable Packaging Coalition (SPC) in United States. SPC is an industry working group dedicated to a more robust environmental vision for packaging. Through strong member support, an informed and science-based approach, supply chain collaborations and continuous outreach, SPC endeavor to build packaging systems that encourage economic prosperity and a sustainable flow of materials. Dell has supported SPC since 2008 and has been an active member. Dell has participated in numerous SPC projects in past on sustainable packaging design. Dell has supported the SPC’s Life Cycle Assessment tool – Compass.

• Dell is also member of ‘The Sustainability Consortium (TSC)’ and participates in the Packaging sector workgroup among other work groups. TSC drives scientific research and the development of standards and IT tools, through a collaborative process to understand and address the environmental, social and economic implication of products and packaging.

• Prominent suppliers to Dell are invited on a regular basis to participate in sustainable packaging design discussions and are directly involved in helping Dell meet its objectives of sustainable packaging design.

• We talk to customers in helping them solve the sustainable packaging issues and also speak on sustainable packaging topic in several renowned conferences.

Target: According to your Action Actual: What did you achieve? Plan, what did you set KPI 6: % signatories with formal processes to work collaboratively on out to do? packaging design and / or recycling.

Develop Supplier engagement Dell has launched several first among sustainable packaging solutions in the strategy, including supporting tech industry in last 5 years such as bamboo (2009), mushrooms (2011), wheat mechanisms to build supplier straw (2013) and AirCarbon (2015). capability and implement from FY14 All of this was possible due to Dell’s closed partnership with packaging suppliers globally. This initiative continues to explore who Dell can deliver to our 2020 commitment to source 100% packaging from sustainable material which are recyclable and/or compostable.

Dell has made tremendous progress in sustainable packaging design over the To report on the 3C's goal on period. At Dell, we see green packaging and product delivery as an improvement to packaging opportunity for innovation - helping businesses and

23 DELL Australia Pty Ltd APC Action Plan 2016 designs/and/or recycling homes reduce their waste through:

Creative packaging design: Reduce the size of the box and you get more boxes in the same space for shipping. Put more products in one box — like we do using our Multipack for some orders — and there’s less waste overall.

Innovative materials: We pioneered the use of natural materials in our packaging, like our bamboo and mushroom cushions, our new wheat straw initiative and our AirCarbon bags. We also make it easy for customers to recycle the packaging they do receive.

Better logistics: Shifting many international shipments from aircraft to ocean freight is just one example of how our work, to constantly refine our transportation network, delivers better ways for getting products to you safely and with a minimal footprint.

Ensure Dell actively SPLC – Sustainable Purchasing Leadership Council: collaborating with other In 2014 Dell joined the Sustainable Purchasing Leadership council. The companies and supporting Council’s membership collaborate with each other and with other partners to research to drive supply purchasers with the best available hot spot Sustainable packaging solutions and product-specific guidance in a manner that prioritizes high-impact areas for IT industry. of spending and that supports procurement processes commonly found in the public and private sector. In early 2015 we also presented in the supply chain summit in Barcelona and in October 2015 presented at ScanPack Gothenberg. Dell is also scheduled to present at SustPack, Chicago April 2016.

Prominent suppliers to Dell are invited on a regular basis to participate in sustainable packaging design discussions and are directly involved in helping Dell meet its objectives of sustainable packaging design. We talk to customers in helping them solve the sustainable packaging issues and also speak on sustainable packaging topic in several renowned conferences.

Dell’s 2020 packaging goals build on success it already has achieved in the sustainable packaging realm. As part of this push, the company currently is working with innovative packaging materials.

Dell was the first technology company to use bamboo cushions to replace foam in shipping lightweight products such as notebooks; the rapidly renewable material is light, strong and grows back at up to an inch per hour. The company also is using mushrooms as an organic alternative to foam for heavier products such as servers. Both materials are either recyclable or compostable.

Dell’s packaging efforts are part of its lifecycle approach to sustainability, designing products and services with environmental impact in mind at each stage of their existence. This includes incorporating aspects such as smarter materials choices, energy efficiency, environmental standards and easy recycling.

Last year we collaborated with our partner Newlight Technologies’ Air Carbon™ for a pilot project to manufacture protective bags out of plastic made not from oil but from captured carbon emissions. This process sequesters more carbon than it produces, pulling carbon from the air and generating a net positive impact on the environment. While the initial pilot project will focus on packaging – specifically for the protective bags for Dell Latitude notebooks shipped to the U.S. and Canada – AirCarbon’s functional flexibility makes it attractive for other possible uses with Dell products http://www.dell.com/learn/us/en/uscorp1/corp-comm/air-packaging

Other Product Stewardship outcomes

Target: According to your Action Plan, what did you set Actual: What did you achieve? out to do? KPI 7: % signatories showing other Product Stewardship outcomes. Reduce Packaging Impact Dell’s 2020 packaging goals build on what we’ve already accomplished. In the last one year, our sustainable packaging program has resulted in reducing impact on the environment for example: • In 2015 we are used in excess of 800 tons of wheat straw, reducing an estimated 720 tons of

24 DELL Australia Pty Ltd APC Action Plan 2016 CO2 emissions (about the same amount of carbon fixed by nearly 600 acres of forest). The wheat straw program is part of our bigger goal of establishing a waste-free packaging stream by 2020. • Our newest packaging innovation with Newlight technologies does not require fossil fuel in the manufacture of plastic bags. It uses a biocatalyst to process the gases in a reactor, where the carbon is then pulled out and rearranged into plastic polymers that can be used to make bags or other materials. The catalysts used with AirCarbon are 10 times more efficient than other solutions, making it an economic choice that is also carbon-negative (meaning it stores more carbon in the plastic than it generates during production). Reduce greenhouse gas emissions from our facilities and Over 2015, Dell purchased approx. 98.5% Green logistics operations by 50% Energy for Frenchs Forest site Data centre Air-conditioning upgrade project:– Reduces volume of air being cooling by up to 80% Expect approx 140 tons of green-house gas reduction in year one Reduce Dell Australia's Energy Consumption by 13% Establish an ongoing partnership with ewaste Co-regulatory member of ANZRP Arrangement for Arrangement to support electronic waste product product stewardship scheme since April 2012 stewardship scheme

Dell sought to minimise the litter propensity of our packaging and are educating customers on responsible disposal. Dell designs packaging to be waste-free. Our products are designed to be used in a fashion that prevents littering of packaging. Both business and individual customers usually remove packaging before they can use the products. However the packaging is easily separable into different recycling streams such as: Paper/Corrugate, Plastics (HDPE, EPE cushion), PE bags and Molder Pulp etc.

Target: According to your Action Actual: What did you achieve? Plan, what did you set KPI 8: Reductions in packaging items in the litter stream. out to do?

Participation in community Australia’s community service participation rate services increased from 34.5% (2014) to 38.9% in 2015 -National Recycling week-local park clean up -Planted over 300 trees that were donated by Warringah Council. -8 days Waratah park maintenance, constructing new enclosures to house injured wildlife, clearing weeds and restoring natural vegetation

Education of Litter Impact to the National Recycling week– Education and awareness; Environment to staff local park clean up

Ensure 90 percent of waste - Installation of centralised waste paper stations in Melbourne office + generated in Dell operated building wide recycling program buildings is diverted from - National Recycling Week: Week long activities including; staff e-waste, landfills by 2020 batteries and phone collection points; Book/CD/DVD swap; toy recycling; - Recycling of E-waste, batteries and phones all year through reception

25 DELL Australia Pty Ltd APC Action Plan 2016

Dell is looking for the next way we can better our planet. We've simplified packaging and are now engineering innovative methods to create eco-friendly packaging options. Our introduction of Bamboo and Mushroom packaging indicates our commitment to think outside the box and do what is good for the environment. Dell will continue to find newer ways to choose and introduce sustainable packaging materials which protects our product but is also environmentally friendly.

Challenges exist in developing supply chain, logistics and procurement streams but we have a vision to lead the way in developing greener solutions for packaging globally. Our other achievements in sustainable packaging are highlighted in our corporate social responsibility report. http://content.dell.com/us/en/corp/report.aspx.

Packaging is traditionally considered as waste. However, Dell is committed to sourcing 100% of Dell's product packaging from sustainable material by 2020. The challenge for Dell is to engineer these sustainable material for high- volume packaging material of choice which can be used to safely protect Dell products during logistics, taking into account regional variation, cost, local laws etc. Each region has its own range of sustainably sourced materials, the main challenge is having the same sustainably sourced material types available in all regions so the customers have the same product experience worldwide.

See Dell's 2020 Legacy of Good goals: (page # 24) http://i.dell.com/sites/doccontent/corporate/corp-comm/en/Documents/2020-plan.pdf

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