Climate Protection

We believe that Xerox, like all global businesses, should do its part to reduce the risks of climate change. While our ultimate goal is to become climate-neutral as a company, our immediate focus is reducing energy consumption in our own operations and providing sustainable document management technology and solutions to our customers to reduce the energy and environmental impacts of their business. We are making investments in several initiatives to support this goal.

Reducing Energy Consumption through Xerox Products and Solutions

ENERGY STAR^® Savings
More than 10 years before the inception of the U.S. Environmental Protection Agency (EPA) ENERGY STAR Office Equipment program, Xerox introduced the first imaging product with an automatic power-down mode. Since joining with the EPA as a Charter Partner in 1993, we have introduced more than 500 copier, printer, fax and multifunction products that have earned ENERGY STAR status. This continued success in cutting the power consumption of our laser-based printing products has been achieved by adjustments in the fuser design, changes to the properties of the toner, more-efficient electronic controls and the workings of the xerographic system as a whole.

A more exacting ENERGY STAR standard became effective on July 1, 2009. This new standard builds on the 2007 changes to the program, continuing to evaluate: How much energy would the device use during a typical week? It measures the energy consumed if the system mimics the tempo of a normal office, running a sample job mix with downtime for lunch, overnight and on weekends. The result is a Typical Electricity Consumption (TEC) number that must meet the EPA’s tough new requirements for a product to achieve ENERGY STAR status. The EPA’s new ENERGY STAR requirements raised the bar so significantly that only 25% of products in the marketplace were expected to meet the new criteria. At Xerox, 100% of all new eligible product introductions in 2010 passed this tough test. An example of the company’s success is the Xerox WorkCentre^® 7535 color office multifunction printer. Based on ENERGY STAR testing methods, the WorkCentre 7535 uses 3.4 kWh per week of electricity, about 40% less than a previous color multifunction printer offered by Xerox.

The ENERGY STAR program will continue to raise the standard over time with tougher requirements. Our goal remains to have 90% of new product introductions achieve this ecolabel.

Xerox WorkCentre 7535 = 40% less energy consumption than previous model.

Xerox engineers designed a new Induction Heat Fusing system that uses significantly less energy than previous designs. This new fusing system does not require preheating and doesn’t consume any power when the machine is in standby mode. Because it has very little warm-up time, the machine can spend more of its time in sleep mode, with minimal impact on productivity. The result? The Xerox WorkCentre 7535 multifunction color printer uses 40% less total energy than a previous comparable model.

Xerox Partnership with U.K. Department for Work and Pensions (DWP) Named Green IT Public
Sector Project of the Year.

The award recognized DWP’s sustainable print project, delivered in partnership with Xerox, which has cut the amount of electricity the department uses.

In March 2010, DWP began a joint sustainable print service project with Xerox to cut printing costs and reduce energy use through a managed print service. With Xerox’s help, the Department replaced more than 30,000 legacy single-function printers with fewer than 8,200 Xerox multifunction devices which, where necessary, are capable of printing, copying, faxing and scanning, and are ENERGY STAR-rated.

In addition to cutting electricity consumption by 63%, the new fleet gave DWP staff capacity to have scanning facilities at every site in the Department if needed. Default double-sided printing also helped save paper and money. Calls to the help desk have nearly halved, and there has been a 90% reduction in the number of site visits by engineers to deal with faulty printers.

“All in One” = Less Energy Use
Xerox multifunction systems further reduce the amount of energy required to copy, print, fax and scan by combining the functions of multiple products into one machine. The annual energy savings of replacing several individual ENERGY STAR-qualified copiers, fax machines and printers with one Xerox ENERGY STAR-qualified WorkCentre multifunction system is up to one-half. Energy savings would be substantially higher if a multifunction system replaces individual products that have not earned the ENERGY STAR rating.

“Right-Sizing” Office Printing Further Reduces Energy Use
Xerox also works with customers to improve the efficiency of their office document management by assessing their actual printing needs and developing solutions that meet that need – often by dramatically reducing the number of stand-alone and networked office equipment devices, saving energy and associated greenhouse gas emissions and reducing solid waste.

Xerox Multifunction Systems: Inherent Environmental Benefits

312 kWh
Annual energy consumption of an office copier, four laser printers and one fax machine, based on 2009 U.S. EPA ENERGY STAR-rated typical electricity consumption spec limits.

179 kWh – 43% reduction
Annual energy consumption of a Xerox WorkCentre multifunction system.

In 2008, Xerox unveiled the industry’s first Sustainability Calculator, designed to help customers understand the benefits of Xerox solutions and pinpoint opportunities to reduce their environmental impact while reducing costs. The software tool estimates the overall impact a company’s document technologies have on the environment, and allows customers to see how that can be reduced by “right-sizing” their print environment. It evaluates the current office environment of printers, copiers and multifunction devices and then estimates environmental benefits that could be achieved in terms of energy and paper use, solid waste, water, air and greenhouse gas emissions. The tool includes an evaluation of impacts that span raw material extraction, manufacturing, use and disposal. This broad view extends the evaluation to life cycle impacts, providing customers a more complete and fact-based estimate of their environmental footprint and an understanding of the kind of actions that will reduce it. Xerox customer case studies reveal that life cycle impacts can be significantly lowered. While results are dependent on the specific parameters of the optimization, dozens of evaluations over the past three years have demonstrated that life cycle reductions in the key environmental metrics of 20%–35% are typical. Learn more at www.xerox.com/sustainabilitycalculator.

Two Ohio universities reduce their environmental impact through Xerox Managed
Print Services.

Cuyahoga Community College (Tri-C) and Cleveland State signed on for Xerox MPS to not only reduce costs (the two schools plan to save nearly $1M per year combined), but also to keep up with the document demands of a growing student population. An added benefit? Reduction in environmental impact. Analysis using Xerox’s Sustainability Calculator estimates that the changes will lead to life cycle reductions in energy, greenhouse gas emissions and solid waste in excess of 30% at Tri-C and 50% at Cleveland State.

Reducing Our Company-Wide Carbon Footprint: “Energy Challenge 2012”¹
In 2003, Xerox made a public commitment to reduce greenhouse gas (GHG) emissions – our carbon footprint – by joining the U.S. EPA Climate Leaders program and launching an internal program known as Energy Challenge 2012. We adopted a goal of reducing by 10% our absolute GHG emissions across all company operations, by 2012, from a 2002 baseline. By focusing efforts on energy efficiency, new technologies and business productivity, Xerox met this target six years ahead of schedule – in 2006. Recognizing our opportunity to do even more, in 2007 Xerox set a new and challenging goal to reduce our GHG emissions by 25% by 2012, from the 2002 baseline. Through 2010, we have cut emissions by 31%, or 151,500 tons of carbon dioxide equivalents (CO₂e). This was achieved by reducing energy consumption in our facilities, manufacturing operations, and across our service and sales vehicle fleet. In 2010, energy consumption was down 22% compared with 2002. Also in 2010, we began the effort of establishing the GHG emissions inventory for our largest acquisition ever (ACS) that occurred in March 2010. The new corporate goal to be announced in early 2012 will be inclusive of ACS.

¹Energy and GHG emissions totals are associated with fuel consumption by company-owned fleet and natural gas/electricity consumption in facilities with square footage of 17,500 or greater. Vendor invoices from utility and fuel providers are the preferred source of data; when unavailable, estimations have been used.

ACS solutions reduce toll plaza congestion.

ACS is a leader in Electronic Toll Collection (ETC), a technology effective in increasing throughput and hence in decreasing congestion at toll plazas. ACS ETC solutions help the motor carrier industry save two million hours and 12 million gallons of fuel each year – and the associated air emissions from that fuel consumption.

Energy Consumption

ACS parking solutions reduce the time customers spend on parking.

Especially in metro areas, significant time can be spent driving around looking for an available parking space – resulting in carbon emissions, fuel consumption and frustrated drivers. ACS technology reduces the hassle of parking, saving fuel and driving time. On-street wireless vehicle sensors enable real-time monitoring of parking space occupancy status. Within a parking management system, these data are integrated with data from meters, enforcement, guidance and analytical subsystems to maintain a comprehensive model. When integrated with the payment status data from meters, the data from wireless sensors drive analytics for dynamic pricing strategies and enable guided parking via a parking guidance system – through the city and straight to available parking.

Parking Guidance Systems (PGS) integrated with wireless sensors provide information to motorists regarding parking options at their destinations, pre-trip as well as en route. They are able to check parking options, locations, rates and optimal parking before they leave the house or en route via dynamic message signs installed on roadsides, through navigation systems in their cars, and through smart phone applications.

Greenhouse Gas Emissions

ACS unveils state-of-the-art data center.

In March 2010, ACS unveiled a new state-of-the-art flagship data center in the U.K. that could serve as an industry model by simultaneously cutting carbon emissions and reducing energy costs. Located in Telford, the data center incorporates leading-edge design to reduce environmental impact. For example, the modular design means that it can run on free air cooling for 54% of the year, external conditions allowing, which leads to a reduction in carbon emissions estimated at 4,200 metric tons per year over traditional cooling methods. The U.K. data centers apply ISO 14001 environmental management principles to their operation, and are working toward certification in 2011. This data center received recognition as a finalist for both the U.K. IT Industry Awards 2010 “Environmental Project of the Year” and the Data Centre Leaders Awards 2010 for “Improved Data Centre Energy Efficiency.”

Greenhouse Gas Inventory
In keeping with the international guidelines of the Greenhouse Gas Protocol developed by the World Resources Institute and the World Business Council for Sustainable Development, Xerox tracks the six major GHGs: carbon dioxide (CO₂); methane (CH₄); nitrous oxide (N₂O); hydrofluorocarbons (HFCs); perfluorocarbons (PFCs); and sulfur hexafluoride (SF₆). We express our carbon footprint in terms of carbon dioxide equivalents (CO₂e). In fact, energy sources account for more than 99% of our GHG emissions. Xerox’s GHG inventory includes direct emissions from the combustion of fossil fuels, primarily natural gas, and indirect emissions from purchased electricity and steam at our manufacturing sites, offices and warehouses. The inventory also includes the combustion of gasoline and diesel fuels in our service and sales vehicle fleet. In accordance with the Greenhouse Gas Protocol, inventory adjustments are completed each year as a result of the opening and closing of facilities and changes to the vehicle fleet. Xerox is in the process of expanding GHG tracking to include Scope 3 emissions.

Estimating Scope 3 Emissions

There are many challenges in assessing Scope 3 emissions, including the large number of variables, the difficulty in collecting data from suppliers, and increasing uncertainty in the data as the sources become further removed from the company itself. We have begun calculating Scope 3 according to the WRI Scope 3 Accounting Standard expected to be finalized later in 2011. We will use the information to prioritize our GHG emission reduction opportunities and to integrate consideration of carbon impact into sourcing and internal decision making.

Our first Scope 3 calculation exercise focused on a representative multifunction printer. Emissions throughout the product life cycle were included in the model. As expected, Scope 3 emissions per unit are higher than Scope 1 or Scope 2, with the highest contribution being from product use, followed by consumables and raw material extraction and processing. This information is consistent with previous life cycle assessment work we have conducted, and continues to guide our product design efforts.

Pareto of Carbon Impact of Value Chain for a Representative Product
(paper not included)
Including Scopes 1, 2 and 3

Due to the complexities of measuring and the changing dynamic of supply chains, these numbers represent a snapshot in time based on one product and are a best effort to evaluate the relative contribution to Scope 3 of the key segments of our value chain. While these calculations are not precise enough for carbon reporting purposes or company/product comparisons, they do provide value as a diagnostic tool to help prioritize where efforts may have the biggest opportunity.

Sources of Greenhouse Gas Emissions

In 2010, Xerox GHG emissions totaled 336,000 metric tons of CO₂e. About 53% were indirect emissions from purchased electricity and steam. The remaining 47% were direct emissions from the combustion of natural gas, gasoline and diesel fuel. Xerox-owned or leased facilities, such as manufacturing sites, offices and warehouses, are associated with 71% of our GHG emissions. The remaining 29% are emissions from our service and sales vehicle fleet and other mobile sources.

Strategies for Meeting Our Reduction Target
Our ultimate goal is to be climate-neutral. While our strategy for achieving that goal is evolving, our first priority is to reduce our total GHG emissions by lowering the energy intensity of our operations. Xerox is finding success with the following approaches:

Shifts Toward More Energy-Efficient Technologies
One example is Xerox’s commitment to emulsion aggregation (EA) technology, or chemical toner, which is estimated to generate 28% fewer GHG emissions in the manufacturing process than conventional toner.

Process Improvements that Reduce Energy Demand
Xerox is its best case study for the efficiency of using digital multifunction systems in workplaces instead of stand-alone printers, copiers, fax machines and scanners. In Xerox locations worldwide, employees depend on networked Xerox systems for virtually all document management needs. One multifunction system can cut energy consumption by up to one-half compared to several single-function devices.

Increased Reliability of Xerox Equipment and Parts
Digital technology has improved the reliability of components inside our products. This reduces service calls, which results in fewer miles driven by Xerox technicians and less gasoline consumed. Longer-lasting parts also mean that less manufacturing energy is invested over the life of a Xerox product. Life extension is a key focus of our consumables development group.

Equipment Upgrades and Energy Management Programs
Every year, Xerox facilities identify opportunities to reduce energy consumption through equipment upgrades and better energy management. Some Xerox facilities save energy through “free” cooling. In winter months, the facilities cool process water by running it through outdoor pipes instead of using chillers, which are the equivalent of industrial air conditioners.

Use of Renewable Energy Sources
By purchasing “green power,” several Xerox sites, including some in the United Kingdom and the U.S., are taking advantage of opportunities to further reduce GHG emissions. An example is the Xerox facilities in the U.K., where 100% of the portfolio is powered by Green Energy. Other facilities, such as Wilsonville, Oregon, purchase renewable energy or credits that offset a portion of electricity consumption.

Climate Change Risks and Opportunities
Xerox has examined the regulatory, physical and commercial risks and opportunities associated with climate change. We are well-positioned for current and potential future regulation by our investment in a robust GHG emission inventory. Consistent with our sustainability strategy, the company will continue to invest in energy-efficient product designs and solutions to meet future customer demands and product-centric regulatory requirements. We are currently gathering Scope 3 emissions data and other key metrics to assess climate change risk in the supply chain.

Xerox is not subject to unique risks due to changing weather patterns, rising temperature and sea level rise. In the case that our operations or customers’ operations are impacted by unpredictable events such as extreme weather, the company’s well-defined crisis management plan will be executed. It covers communication with employees and customers, management of employee health and safety issues, business continuity and resumption processes, as well as interaction with government organizations.