Environmental Leadership

Since we introduced two-sided copying in 1970, we have continued to innovate at the forefront of environmental sustainability, offering the first recycled grade of cut sheet paper and office equipment with an energy-saving mode, long before ENERGY STAR® was established.

Governance
Our global Environment, Health, Safety and Sustainability (EHS&S) department enforces our environment, health and safety policy. The corporate EHS&S governance policy, first adopted in 1991, underpins our environmental leadership program. The Vice President of EHS&S reports to the President of Corporate Operations, a direct report to the CEO. Our governance model uses clearly defined goals, a set of worldwide standards and an audit process that validates compliance. To review this policy, visit www.xerox.com/environment.

Learn more about our Enterprise Risk Management process.

Our Enterprise Risk Management (ERM) process, overseen by the Xerox Board of Directors, strengthens our capability to assess, monitor and manage all categories of business risk and sustainability, including climate change risk. Vital strategic and operational risks identified are approved by the Corporate Management Committee (CMC) and reviewed annually by the Board.

A risk mitigation plan, in which leaders are assigned to each identified risk, is developed and reviewed by the CMC and the Board. The Business Ethics and Compliance Office and various Internal Control committees also monitor risk management and exposure. The Board of Directors regularly reviews the Enterprise Risk profile and monitors the effectiveness of management policies and decisions, including risk management activities.

The Office of Global Government Affairs is responsible for tracking external developments, including climate change risk, and determining if these developments are likely to affect Xerox products and operations. Through trade associations and partnerships, EHS&S tracks applicable regulations and also policy changes that may affect the company. We develop processes, new technologies and products to counter the risks associated with external changes.

Our major operating units and key corporate functions (e.g., Risk Management, Real Estate) also are responsible for evaluating, monitoring and managing within their respective businesses site-specific risks that potentially have an impact on Xerox’s ability to achieve its overall business objectives. The Business Continuity Assurance Process ensures business units are prepared for environmental risks.

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Standards and Programs
Environment, health and safety standards guide employees and suppliers in complying with corporate policies. These worldwide standards apply across Xerox and establish specific requirements for products, services, operations, product safety, materials safety, packaging, design for environment and environmental management. We also have established company-wide programs, such as Zero Injury, to engage employees worldwide.

Supply Chain Management
As a critical element of supply chain governance, we extend environment, health and safety requirements across our supply chain. Since 1998, we have asked our materials, electronics and component suppliers to meet specific environmental, health and safety requirements. These requirements were broadened in 2004 to better govern the use of chemicals in our products, parts and supplies throughout the supply chain. The Xerox standard, "Xerox Environmental, Health and Safety Supplier Requirements: Chemical Bans/Restrictions and Part Marking," establishes requirements for regulatory compliance, chemical bans and restrictions, and parts marking for parts and materials intended for use in electronic products. The standard also requires that suppliers utilize socially responsible supply chain due diligence practices in various operations, including but not limited to mining and smelting operations.

Further, by adopting the Electronic Industry Citizenship Coalition's (EICC) Code of Conduct, we have strengthened our commitment to ensure that our technology suppliers are operating according to accepted industry standards for environmental management. In 2013, our Vice President of EHS&S was selected by EICC as a member of the EICC Senior Executive Advisory Council.

For more information, see the Supplier Relations section of this report.

Audit Program
A well-established internal audit program measures our success in implementing corporate standards, allows us to share best practices and helps us validate regulatory compliance. Audits at major operations are conducted on a rolling average of once every three to five years (or sooner, based on performance). The frequency and the focus of the audits are based on the type of operations and the inherent risks associated with the operations. In 2012, we began including Xerox Services in this audit schedule.

Xerox audit teams evaluate operations against our internal standards, external regulations and industry guidelines. Beginning in 2010, the teams also evaluated management system performance. With the assistance of the local managers and support staff, action plans are developed and deficiencies corrected. Senior management pays particular attention to situations with the potential to pose a significant risk of environmental damage, serious injury to employees or regulatory non-compliance. In 2012, we met our goal of resolution of these issues within 90 days and continued to demonstrate that the audit program has become an important mechanism for identifying and correcting performance gaps.

Learn more about our audit of Xerox Services facilities.

In late 2012, we initiated environmental, health and safety audits of virtually all international Xerox Services facilities. The audit covers environmental dimensions, life and fire safety, emergency preparedness, security, management processes and other areas that directly affect employees on a daily basis. We are actively making improvements to the facilities and/or management processes to ensure a consistent level of EHS&S performance across our sites worldwide wherever deficiencies are noted. In addition, we have developed internal standards based on recognized life safety codes and are applying these requirements across all geographies in which we operate.

As of May 2014, we completed audits on 127 of the 140 international Xerox Services sites in our audit program. Completed sites are characterized according to the type and severity of issues noted. Facilities prioritized for immediate corrective action develop plans designed to close high-priority issues expeditiously. With corrective actions in place, processes are established to ensure consistent performance and evaluate new acquisitions to the same standards.

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Employee Engagement and Training
Employees and third-party contractors learn how our operations affect the environment and employee safety through training and internal communication. Beginning with our new hire orientation, employees are made aware of company-wide environment, health and safety requirements. Global programs such as Energy Challenge, Zero Injury, Sustainable You, Environmental Faces of Xerox and the Xerox Earth Awards engage employees throughout the company. Regional Earth and Safety Fairs and Green Teams also help to communicate challenges, best practices and accomplishments.

Learn more about how we're involving our employees in environmental efforts.

Yammer, our internal social media network, allows our employees across the globe to connect with each other. Through groups such as Working Green, Living Green and Simply Well, employees exchange information about the environment, safety and health. The Xerox Yammer network boasts nearly 25,000 employees worldwide.

The formation of local “Green Teams” provides employees who are part of a common work group or share a workspace with the opportunity to work together to educate, support and seek process or site changes that will enable environmental improvements, cost savings or productivity improvements.

As appropriate, employees receive training on topics such as hazardous waste management, spill prevention and response, recycling, ISO 14001 and a variety of other topics. In addition to safety topics for which regulations require training, employees are trained on established safe job procedures based upon the job-specific hazards they may encounter and procedures and protective equipment they are expected to use. Recently, a significant number of procurement agents participated in training on Xerox corporate sustainability goals to re-emphasize our Socially Responsible Purchasing Policy.

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We post our environmental management policy in our facilities and on our intranet. We communicate environment, health and safety goals to all our operations and integrate those goals into processes for product development and services. Through our ISO 14001 environmental management system, employees identify the environmental aspects associated with their responsibilities. Xerox Services facilities management personnel are introduced to our environmental sustainability and compliance programs and trained to identify sustainability opportunities and perform regulatory applicability assessments. This training included both Xerox facilities personnel and those from our third-party management company.

Stakeholder Outreach
We communicate with stakeholders about environmental health and safety programs, goals and performance. Stakeholders include employees, customers, investors, universities, government agencies and environmental groups. We track inquiries and comments from customers and other stakeholders. Customers provide input through focus groups, and we tap into the larger community through participation in external organizations.

Learn more about our environmental partnerships.

To advance global efforts to improve the environment, Xerox partners with these private and public organizations:

Business Consortiums:

  • Business Roundtable Climate RESOLVE;
  • Business Roundtable S.E.E. (Society, Environment, Economy) Change;
  • Business for Social Responsibility;
  • Sustainability Innovators Working Group;
  • EcoPatent Commons;
  • Corporate EcoForum;
  • Electronics Industry Citizenship Coalition (EICC);
  • The Conference Board; and
  • Conflict Free Sourcing Initiative (CFSI).
Non-Governmental Organizations:
  • Environmental Defense Fund Climate Corps;
  • International Leadership Council of The Nature Conservancy;
  • Central/Western New York Leadership of The Nature Conservancy;
  • The Prince's May Day Network;
  • Organization for Economic Cooperation and Development (OECD) Expert Advisory Group on Sustainable Manufacturing and Eco-innovation;
  • Second Nature (Higher Education);
  • E.P.E.A.T; and
  • Finger Lakes Regional Economic Development Council’s Sustainability Workgroup.
Government Organizations:
  • Sustainable Energy Authority of Ireland;
  • U.S. EPA ENERGY STAR®;
  • U.S. EPA SmartWay Transport Partnership;
  • U.S. EPA WasteWise; and
  • U.S. EPA Green Power Partnership.

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Our Progress in 2013

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Interbrand assessed the Xerox brand on sustainability and environmental stewardship.

Preserving the Planet | Environmental Leadership

Interbrand ranked Xerox 29th out of 50 brands on its 2013 Best Global Green Brands report, moving up three spots from 2012. The report examines how leading brands perform in the area of sustainability and how environmentally conscious efforts are perceived by the public.

Read more about the Best Global Brands Report.

The Xerox Board of Directors: Maintaining Independence

Sustaining Business

Based on standards for independence developed by the New York Stock Exchange, the Xerox Board of Directors is approximately 90 percent independent. It includes one non-independent director: Xerox Chairman and CEO Ursula M. Burns. Learn more about the Board's independence and our governance policies: www.xerox.com/governance.

2010201120122013
88%90%90%90%

Voice of employee survey

Evolving the Workplace

Our proprietary Voice of the Employee Survey allows managers to assess their employees' satisfaction with their job, work group, manager and Xerox as a whole.

Since 2009, we have surveyed 100% of our global population across 49 countries and in 26 languages. Each manager receives a personalized report to assist in developing action plans where needed. In addition, we capture global trend data and employee ideas.

We received 68,500 responses to our 2013 Voice of the Employee survey. We will administer the survey again in 2015.

See more detailed information on employee satisfaction surveys.

2010201120122013
72%74%75%*73%

*In 2012, the survey was distributed to around 14,000 employees in Europe, Canada and our developing markets. All other years reflect a larger global population.

Addressing employee inquiries

Evolving the Workplace

The Sentinel Customer Satisfaction Assurance Systemtm, a Xerox proprietary Web-based polling/routing/reporting system, links employee inquiries or comments through the intranet with appropriate Xerox contacts to identify and track any comment, suggestion or unresolved problem for action.

The chart below displays the number of employee inquiries we received and routed for resolution. The decline in inquiries in recent years is due to the overall resolution of systemic issues and the ability for employees to provide comments/suggestions or raise a technical issue.

2010201120122013
6,6983,2912,7452,185

Employee Diversity – Women Employees

Evolving the Workplace

We gain a competitive advantage as we continue to draw on the experience and creativity of a well-balanced, diverse workforce. That means we're better able to understand and meet the changing demands for our products and services. Simply stated, a balanced workforce makes good business sense.

In the U.S., 53.2 percent of employees are women, and women represent 27 percent of executive and senior-level managers. Diversity reporting is not tracked in most other countries.

The chart below displays the percentage of executive and senior-level managers who were women over the past four years in the U.S.

Learn more about diversity at Xerox.

2010201120122013
23.8%25.0% 26.0% 27.2%

Employee Diversity – Minority Employees

Evolving the Workplace

Employees with different ways of thinking – and different ways of perceiving our world – are employees who create innovative solutions. In a business like ours, whose lifeblood is fresh ideas, this variety of perspectives is a priceless resource – and a key to achieving critical business results.

Minorities represent 40.3 percent of employees and 12 percent of executive and senior-level managers in the U.S. Diversity reporting is not tracked in most other countries.

The chart below displays the percentage of minority employees in our U.S. workforce over the past four years.

Learn more about diversity at Xerox.

2010201120122013
37.5%37.5%39.4%40.3%

Monitoring the safety of our employees

Evolving the Workplace

The health of our business depends on the health and safety of our workforce. In 2013, an ongoing project to improve employee safety awareness and inspection of safe work practices resulted in a declining frequency of injuries.

See more detailed information on our recordable injury rates.

2010201120122013
Up 18% from 2009Down 1% from 2010Up 5% from 2011Down 3% from 2012

Preventing Injuries and Illnesses

Evolving the Workplace

The health of our business depends on the health and safety of our workforce. In 2013, an ongoing project to improve employee safety awareness and inspection of safe work practices resulted in a declining frequency of days away from work cases.

See more detailed information on work injury rates at Xerox.

2010201120122013
Up 4% from 2009Up 6% from 2010Up 13 % from 2011Down 12% from 2012

Topping the competition

Serving Customers

Xerox is the leader in equipment revenue market share*. We offer the industry's broadest portfolio of document technology and services for businesses of any size, in any industry, anywhere around the world.

*Equipment revenue (shipment value) in the hardcopy peripheral industry. Source: IDC WW Quarterly HCP Tracker, Final Historical 1Q14.

Learn more about Xerox products.

2010201120122013
#1#1#1#1

Innovating for the future

Serving Customers

Xerox was granted 1,168 U.S. patents in 2013, ranking the company as one of the world's top innovators. Our joint venture in Japan, Fuji Xerox Co. Ltd., received 800 U.S. patents. The Xerox group garnered 1,968 patents total.

Xerox and Fuji Xerox collectively invest about $1.3 billion annually in research, development and engineering.

*Total patents earned along with Fuji Xerox Group.

Learn more about innovation at Xerox.

See more information on our patent filings.

2010201120122013
1,6051,6181,9001,968

Measuring Customer Satisfaction

Serving Customers

Service and support for Xerox products earned five consecutive industry certifications from 2006-2010 under the J.D. Power and Associates Certified Technology Service and SupportSM program. All forms of customer support – phone, online, on-site – were evaluated by independent service industry experts who recognized our support services as among the best in class. These certification reviews have ensured we maintain process excellence in technical service delivery.

In 2011, we chose to invest in a new customer satisfaction process to ensure a stronger focus on understanding and fulfilling customer needs and expectations. The new process solicits feedback from our technology customers around the globe and provides detailed insights that help us identify systemic issues and make the necessary changes that ensure strong customer satisfaction. Improved closed-loop follow-up processes also enable faster responses to individual problems.

2010201120122013
Achieved certification in the J.D. Power and Associates program for Certified Technology Service and Support.In 2011, we chose to invest in a new customer satisfaction process to ensure a stronger focus on understanding and fulfilling customer needs and expectations. In 2012, we continued our investment in a new customer satisfaction process to ensure our award-winning service and customer-centric approach builds customer loyalty and trust. In 2013, we further developed our new customer satisfaction process and saw positive results, both in the feedback from our customers and in the internal measures we use to assess the quality of what we are delivering to the marketplace.

Industry Analysts Recognize Xerox As A Market Leader

Serving Customers

Our commitment to our customers has gained worldwide recognition.

Xerox has been named a leader in the Gartner Magic Quadrant for Managed Print Services for six consecutive years (most recently Oct. 21, 2013) and a leader in the Gartner Magic Quadrant for Customer Management Contact Center BPO for two consecutive years (most recently Dec. 24, 2013).1

Many independent industry analysts rate Xerox services and products as leaders in multiple categories. Selected awards are displayed in the chart.

1Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

2010201120122013
IDC: an IDC MarketScape leader for Worldwide Managed Print Services.

Quocirca: Market leader for MPS Landscape.
IDC: an IDC MarketScape leader for Worldwide Managed Print Services.

Quocirca: Market leader for MPS Landscape.

Everest Group: PEAK Matrix Assessment leader for Benefits Administration Outsourcing.
IDC: an IDC MarketScape leader for U.S. Shared, Networked MFPs for the Distributed Office; EMEA Managed Print Services.

Forrester Research, Inc.: cited as a leader in The Forrester Wave™: Managed Print Services, Q2 2012.

Quocirca: Market leader for MPS Landscape.
IDC: an IDC MarketScape leader for Worldwide Managed Print and Document Services; U.S. Smart Multifunction Peripherals.

Quocirca: Market leader for MPS Landscape.

HfS Research BluePrint: Winner's Circle for Healthcare Payer BPO Services.

Everest Group: PEAK Matrix Assessment leader for Benefits Administration Outsourcing; Contact Center Outsourcing.

NelsonHall NEAT: Leader in Benefits Administration Services.

Xerox Foundation

Caring for Communities

In 2013, more than 2,500 non-profit organizations, colleges and universities received direct financial support from the Xerox Foundation through grants, matching gifts or community involvement activities. We focus our investments in the following areas:

  • Education and workforce preparedness
  • Science and technology
  • Employee and community affairs
  • National and cultural affairs

Learn more about the Xerox Foundation.

See more detailed information on Xerox Foundation giving.

2010201120122013
$12.5 million$13.5 million$13.5 million$13.5 million

The Xerox Community Involvement Program

Caring for Communities

The Xerox Community Involvement Program links the voluntary spirit of our employees to get involved in the communities where we live and work. Since 1974 when the program began, more than 500,000 Xerox people have been involved in regional, community-focused projects.

Learn more about the Xerox Foundation.

See more detailed information on community involvement programs.

2010201120122013
10,000 Employees

700 Projects
12,000 Employees

750 Projects
12,500 Employees

700 Projects
13,000 Employees

800 Projects

Our goal: Zero waste to landfills

Preserving the Planet

To pave the way for our ultimate goal of zero waste to landfills, we aimed to achieve a 50 percent reduction in landfill rate between 2009 and 2015. We reached this target three years early, and in 2013 we surpassed it.

See more detailed information on Xerox recycling.

2010201120122013
Down 25%
from 2009
Down 25%
from 2009
Down 50%
from 2009
Down 60%
from 2009

Conserving water

Preserving the Planet

As part of our commitment to conserve resources, we monitor water consumption across our manufacturing, distribution and R&D facilities worldwide. Since 2009, water consumption has decreased by 35 percent.

See more detailed information on water consumption.

2010201120122013
Down 7% from 2009Down 21% from 2009Down 35% from 2009Down 35% from 2009

Reducing greenhouse gas emissions

Preserving the Planet

Since 2009, Scope 1 (direct) and 2 (indirect) greenhouse gas emissions are down 24 percent in our Document Technology business. The reductions are the result of improved energy efficiency, new technologies and improved energy management practices.

See more detailed information on greenhouse gas emissions.

2010201120122013
No change from 2009Down 8% from 2009Down 13% from 2009Down 24% from 2009

New products achieve the ENERGY STAR® rating

Preserving the Planet

In 2013, 100 percent of our new eligible products met the current ENERGY STAR (July 2009) requirements. We've continuously reduced power consumption of our laser-based printing products by adjusting fuser design, changing properties of toner, implementing more efficient electronic controls and improving the xerographic system as a whole.

See more detailed information on ENERGY STAR® ratings for Xerox Products.

2010201120122013
100%100%100%100%

End-of-Life Management

Preserving the Planet

Our approach to managing products at end-of-life translates into significant environmental and financial benefits. Globally, our combined returns programs (equipment remanufacture in conjunction with parts and consumables reuse and recycling) prevented over 33,000 metric tons of waste from entering landfills in 2013 alone.

Learn more about the Xerox Green World Alliance.

2010201120122013
97%98%99.3%99.1%

Reducing emissions by reducing employee air travel

Preserving the Planet

Business travel plays a big role in contributing to greenhouse gas emissions. In recent years, we've promoted videoconferencing and other technology as environmentally friendly alternatives to air travel. Thanks to these efforts, we've reduced emissions due to air travel by 20 percent per employee every year since 2010.

See more detailed information on carbon dioxide equivalents (C02e).

2010201120122013
Baseline yearDown 20% per employee from 2010Down 20% per employee from 2010Down 20% per employee from 2010

Energy Use Reduction

Preserving the Planet

Following achievement of our "Energy Challenge 2012," we adopted a new goal of reducing greenhouse gas emissions by 10 percent across all company operations by 2017. In 2013, we attained a 6 percent reduction – more than half of our five-year goal.

To allow for consistent reporting, the chart below depicts achievement against the original 2002 baseline.

See more detailed information on energy use reduction.

2010201120122013
Down 21% from 2002Down 27% from 2002Down 33% from 2002Down 39% from 2002