Performance Reporting
The following table summarizes our key environmental and safety performance indicators, including our goals and performance over the past five years. Additional detail is included in the corresponding sections of this report.

All of our major manufacturing and distribution operations employ an environmental management system that conforms to ISO 14001. The system:

• Establishes a framework to ensure compliance with regulations and Xerox standards
• Identifies environmental impacts and sets objectives and performance targets
• Pursues continual improvement in conserving natural resources, eliminating the use of toxic and hazardous materials, preventing pollution, and recovering, reusing and recycling materials
• Ensures integration between day-to-day business activities and environmental planning and program management
• Encourages innovative solutions, creative partnerships and employee involvement

Our major manufacturing operations have been certified to ISO 14001 since 1997. Our major worldwide technology equipment distribution centers achieved certification in 2010. Quarterly status meetings and use of a newly deployed scorecard provide visibility, best practice sharing and innovation across our operations.

Energy Goal 2020
In 2003, we made a public commitment to reduce GHG emissions — our carbon footprint — by joining the U.S. Environmental Protection Agency (EPA) Climate Leaders program and launching our own internal Energy Challenge 2012.

This 10-year initiative set a goal to reduce GHG emissions across all company operations by 10 percent by 2012. We met this target six years ahead of schedule, so we set a new target of 25 percent reduction by 2012 (from a 2002 baseline). At the conclusion of the program, we successfully cut emissions by 42 percent — that’s 210,000 tons of carbon dioxide equivalents (CO2e) — and reduced energy consumption by 31 percent.

Our new corporate-wide goal is to reduce energy consumption and GHG emissions by 20 percent by 2020 (from a 2012 baseline). In 2016, we met our new goal by reducing energy consumption by 20 percent and cut GHG emissions by 28 percent — that’s 92,000 tons of CO2e.*

*Excludes data centers numbers. Energy Challenge 2012 included fleet and facilities for the Technology Business (and Services where co-located). Energy Goal 2020 encompasses all parts of our business.

Energy Consumption

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

In accordance with the Greenhouse Gas Protocol and to make annual data comparable, we adjust the energy and emissions data each year as a result of the opening and closing of facilities and more appropriate emission factors that are available.

Greenhouse Gas Inventory
In accordance with the international guidelines of the Greenhouse Gas Protocol developed by the World Resources Institute and the World Business Council for Sustainable Development, we track the six major GHGs: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF6). As noted, we express our carbon footprint in terms of carbon dioxide equivalents (CO2e).

Energy sources account for more than 99 percent of our GHG emissions. Our 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.

As a result of the opening and closing of facilities and changes to the fleet inventory, base-line adjustments are made each year, which are reflected in the Energy Consumption and GHG Emission charts. In 2016, we expanded our GHG tracking of indirect, or Scope 3, emissions to include end-of-life treatment of sold products. We also continue to track Scope 3 emissions from employee business travel, product transport, employee commute and waste generated in operations.

In 2016, Xerox GHG emissions totaled 233,305 metric tons of CO2e, which is a 28 percent reduction from a 2012 baseline and surpasses our 2020 reduction target of 20 percent. About 56 percent of the GHG emissions total were indirect emissions from purchased electricity and steam. The remaining 44 percent 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 54 percent of our direct GHG emissions. The remaining 46 percent are direct emissions from our service and sales vehicle fleet and other mobile sources.

Greenhouse Gas Emissions

Scope 3 Emissions
Scope 3 emissions result from activities commissioned by Xerox, but take place at a third party and/or arise from sources not owned or controlled by Xerox. Therefore, the collection of indirect, or Scope 3, GHG emissions is challenging. The probability of data inaccuracy with Scope 3 emissions is higher than for Scope 1 or 2 emissions for several reasons. These include the limited availability of data from the supply chain and, the more tiers of suppliers there are in the system, the more onerous the data collection process is. In order to overcome some of these challenges, we calculate Scope 3 emissions according to the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard. This standard provides requirements and guidance to collect, prepare and publicly report a GHG inventory that includes indirect emissions. The Scope 3 emissions information is also used to prioritize our GHG emission reduction efforts and to integrate consideration of carbon impact into our sourcing and internal decision-making.

Third Party GHG Verification
Our 2016 Scope 1, Scope 2 and Scope 3 GHG emissions have been verified by a third party verification/assurance company in accordance with ISO 14064-3:2006 against our internally defined methodology described in “Xerox Corporation Greenhouse Gas Emissions Inventory Management Plan, Version 2, December 2016” and the principles of: transparency, accuracy, consistency, completeness and relevance.

Climate Change Risks and Opportunities
Xerox has examined the regulatory, physical and commercial risks and opportunities associated with climate change across our value chain.

We assess and manage our carbon risk by maintaining both a comprehensive GHG emissions inventory and a mature regulatory tracking function that provides the necessary information to stay abreast of developing regulation. We do not consider our company to be subject to unique risks due to changing weather patterns, rising temperatures and sea level rise, but we recognize that our business and our customers could be affected by more frequent disruptions as a result of severe weather in locations where we operate. We may need to invoke our business continuity and resumption plans to aid customers and employees who are impacted by business disruptions on account of severe weather. We have experience working to ensure continuity of critical applications by prioritizing business needs and developing customer-specific preparedness plans where appropriate. These plans include communication with employees and customers, management of employee health and safety issues, business continuity and resumption processes, as well as interaction with government organizations.

We recognize that the increasing costs of energy and concerns around energy security are issues that affect both our operations and our customers. To meet our commitment for “Reducing Energy Use and Protecting the Climate,” our long-term strategy is to continue to invest in technologies that reduce the carbon footprint of our operations and develop technology solutions that help our customers to reduce the energy and environmental impacts of their business.

Preserving Clean Air and Water

Air Emissions
Xerox has significantly reduced manufacturing air emissions over the past 20 years, but we continue to pursue efforts to do even more.

Most of our air emissions originate from the production of imaging supplies such as toner, photoreceptor drums and belts as well as fuser rolls. Approximately 25 metric tons of volatile organic compound (VOC) process air emissions (VOC and non-VOC) were released to the atmosphere from these activities in 2016. Emission reductions over time primarily have come from process modification, lower production volumes of legacy products and production declines attributable to longer-life components.

Volatile Organic Process Air Emissions

Emissions for years 2013 through 2015 are based on actual usage records. Since usage records were not available for 2016, quantities were estimated based on a survey assuming worst case scenarios. Actual air emissions for 2016 may be lower than shown.

A subset of these VOC emissions is defined by the U.S. Environmental Protection Agency (EPA) as hazardous air pollutants (HAP). In 2016, Xerox reported worldwide air emissions of approximately 5.3 metric tons of HAP under national toxic chemical release regulations, including the U.S. Toxic Release Inventory (TRI) program. Methylene chloride, methyl isobutyl ketone (MIBK), 1,3-butadiene and styrene represent virtually all of these HAP emissions.

2016 HAP Air Emissions

as Reported under National Toxic Release Regulations

Ozone-Depleting Substances
Xerox policy prohibits the use of ozone-depleting substances (ODS) as ingredients in the manufacturing processes for products and finished products including spare parts, accessories, consumables and packaging. ODS used as refrigerants in facility and vehicle air conditioning systems and various food/equipment-cooling systems are in compliance with applicable global regulations. Elimination of ODS as refrigerants is managed consistent with government phase-out dates.

Toxic Chemical Releases
The release of materials used in our worldwide operations is evaluated annually and reported to government agencies under national toxic chemical release reporting regulations, such as the U.S. TRI, the Canadian National Pollution Release Inventory and the European Pollutant Release and Transfer Register. Releases for reporting year 2016 remained unchanged compared to 2015 levels and were 75 percent lower than 2007 levels. Note: 2015 values are updated in this report to include approximately 5 metric tons of releases and transfers that were inadvertently excluded at that time.

Reportable Toxic Chemical Releases and Transfers

In 2011, operations with reportable toxic chemical releases to the air, land or water — in amounts of greater than one metric ton — established goals, targets and objectives related to chemical releases. Progress against these goals as of year-end 2016 is summarized below:

• An initiative to reclaim spent methyl isobutyl ketone (MIBK) continued to exceed expectations in the fifth full year of implementation. Recovered solvent was qualified for use as a cleaning solvent for the fluid delivery systems used in U.S. fuser roll coating operations. As a result, the amount of virgin MIBK purchased in 2016 for use in the manufacturing operation has been reduced by 43 percent from the 2010 baseline on a normalized, per-part basis.
• Methylene chloride used in the manufacture of Xerox photoreceptor belts was reduced by 70 percent from the 2010 baseline, greatly exceeding target. This dramatic decrease was primarily due to volume declines of legacy products and process modifications that cut the amount of methylene chloride used for batch cleaning of production equipment.
• Per-batch emissions of 1,3-butadiene from U.S. toner resin manufacturing operations decreased slightly, exceeding target in 2016. Low-emission hose connectors and incident-free material handling operations contributed to this result.

Spills and Accidental Releases
Our goal is to proactively prevent any release of regulated materials to air, soil and water. In 2016, ten reportable spills or releases occurred at Xerox operations. Most of these spills/releases were minor in nature, contained and had little to no impact on the environment, while only two releases were relatively significant. The first significant release occurred at our Webster, New York facility, where 0.45 metric tons of methylene chloride was released to the air over the course of several hours as a result of equipment failure. The second significant release occurred in Ontario, Canada, where 32,000 liters of wastewater was prematurely discharged to the sanitary sewer from toner manufacturing operations due to a programming error. While the reporting of these spills is not a GRI requirement, they are included in this report for the purpose of transparency. Xerox received no fines or non-monetary sanctions for any spills in 2016 and corrective measures were implemented to minimize the potential for these incidents to occur in the future.

Water Consumption and Treatment
As part of our commitment to conserve resources, we monitor water consumption across our manufacturing, distribution and R&D facilities worldwide. Water consumed by Xerox operations is sourced from local municipal suppliers that withdraw water from the ground, lakes, rivers or other surface waters.

In 2016, we exceeded our goal to reduce water consumption by 35 percent (against a 2010 baseline), years ahead of our targeted date of 2020. Our annual water consumption was down 43 percent due to a combination of conservation initiatives and production declines.

A pilot program was initiated at our plant in Wilsonville, Oregon, to evaluate the use of Reverse Osmosis reject water for secondary use. This project was implemented in mid-2016. During the year, more than 265,000 gallons (1.003 million liters) of reject water – which would have otherwise have been sewered - were reused onsite in cooling towers.

The water discharges at manufacturing sites are monitored to validate compliance with local sanitary sewer discharge limits. Wastewater from manufacturing processes is treated, as necessary, before being discharged into local sanitary sewers. We utilize best practices to prevent unwanted pollutants from entering waterways via surface contamination and run-off. Extensive sampling of wastewater, discharged to both sanitary and storm sewers, ensures that discharged water meets our strict requirements. Although Xerox has not established a goal for reduction of wastewater discharges, it is worth noting that water discharged from our facilities in 2016 was approximately 32 percent lower (731 million liters) than in 2010. These results also can be attributed to water conservation initiatives and production declines.

Water Consumption

Revenue is from continuing operations attributable to Xerox Technology, revised for all periods to reflect discontinued operations.

Preventing and Managing Waste

Hazardous Waste
In 2016, the amount of hazardous waste generated was 11 percent higher than in 2015 as a direct result of decommissioning activities at a European manufacturing site, production increases and a raw material contamination incident. Xerox beneficially managed 75 percent of the hazardous waste generated in 2016 through recycling and/or fuels blending technologies.

Xerox does not export hazardous waste to developing nations. A third-party supplier recovers spent MIBK, which is returned to the generating manufacturing operation for reuse. Solid and liquid hazardous waste streams that have an adequate BTU value are managed via a fuels blending program. An off-site waste disposal vendor blends these waste streams to meet the specifications provided by cement kilns.

Hazardous Waste Generated

Revenue is from continuing operations attributable to Xerox Technology, revised for all periods to reflect discontinued operations.

2016 Hazardous Waste Management Methods

Non-hazardous Solid Waste
Xerox has had waste reduction efforts in place for many years. We reuse boxes, pallets and containers for parts delivery. We capture toner that is outside the acceptable size range during manufacturing, recycle returned equipment and reuse totes for recycling scrap metal and paper.

Globally, operations generated 39,000 metric tons of non-hazardous solid waste in 2016, down from 47,100 metric tons in 2015. Process waste consists primarily of paper, wood, pallets, waste toner, plastics and packaging waste such as corrugated cardboard. Equipment manufacturing waste includes scrap metal, waste batteries and lamps, miscellaneous trash, and non-usable end-of-life equipment and parts that our customers return to Xerox for processing and remanufacturing. This waste made up about 73 percent of the non-hazardous solid waste managed by Xerox operations in 2016. Xerox is able to reuse or recycle nearly 100 percent of the waste generated from our customer returns.

Our goal is to attain a reuse/recycle rate of 100 percent by 2020 at facilities globally, compared to a baseline year of 2009. In 2015 and 2016, we managed 94 percent of non-hazardous solid waste beneficially, up from 93 percent in 2014. The increased reuse/recycle rate is attributed to an increase in our manufacturing operations using energy-from-waste technology as a means of dispositioning waste that is not recyclable. Additionally, in 2016 our equipment resellers were able to return a greater number of products to the marketplace for resale. That resulted in a significant reduction of all non-hazardous waste. Please note that the reuse/recycle rate has been revised from previous years to more accurately represent non-hazardous waste management methods.

Non-hazardous Waste

Annual volume by Management Method

Revenue from continuing operations attributable to Xerox, revised for all periods to reflect discontinued operations.

2016 Non-Hazardous Waste Management Methods

Percentage by Management Method

Non-hazardous Solid Waste Recycling Rate

Environmental Remediation and Compliance
In 1985, we voluntarily assessed our real estate portfolio globally and identified 68 facilities with environmental contamination. We worked closely with the appropriate federal, state and local agencies to initiate prompt and appropriate measures to ensure the protection of employees, neighbors and the environment.

Today, only two of the original 68 sites require active remedial or control measures. We have effectively removed or greatly reduced the source areas of contamination and have remediated these properties for reuse or redevelopment. We are now completing post-remediation compliance monitoring at sites that are no longer subject to active remediation, which will enable the regulatory process for managing these sites to be terminated officially.

In addition to using conventional techniques for groundwater recovery and treatment and soil excavation, we have a history of developing innovative technologies to enhance our remedial efforts. These included techniques that improve and accelerate the recovery of contaminants such as high-vacuum 2-Phase Extraction and enhanced bedrock fracturing. We also employ technologies where contaminants are converted to less-harmful substances through enhanced natural biodegradation and chemical oxidation.

Compliance Reporting
We require our operations and subsidiaries worldwide to report allegations of regulatory non compliances to our Environmental Health, Safety and Sustainable (EHS&S) group for evaluation and corrective action, where appropriate. In 2016, two instances resulted in a notice of violation. One notice was due to water discharges exceeding wastewater discharge limits. The second notice involved the lack of registration on a petroleum bulk storage tank. No fines or non-monetary sanctions were issued for either notice of violation. Corrective actions have been completed and appropriate controls implemented to ensure ongoing compliance.

Reducing Environmental Impact through Our Services and Solutions
Our expanding Managed Print Services business in combination with our extensive print fleet offers solutions that reduce energy consumption and improve environmental performance.

Our equipment and software is designed to help customers operate efficiently. The “earth smart” feature, integrated into the Xerox global print driver, brings several resource-saving settings together at the single click of a button. These features, such as duplex (two-sided printing), n-up (multiple pages per sheet), proof print and toner saving modes, make it easier for customers to make responsible print choices. Our Xerox Enterprise Print Services customers have access to sophisticated print management and reporting tools, such as Xerox Print Agent, which provides additional methods of encouraging and tracking responsible print behaviour. Software products such as DocuShare^® and FreeFlow^® Digital Workflow Collection help Xerox customers reduce paper consumption by facilitating electronic data management, scan to email, print-on-demand and distribute-then-print workflows.

Xerox has also been exploring creative ways to engage employees in the sustainability effort. The Xerox® Print Awareness Tool is a unique managed print service approach to sustainability management and reducing print volumes. By using this tool, users can see their print usage, using an easy, interactive desk interface, and take steps to improve print behaviour. Through each user's contribution to improvement, customers get one step closer to decreasing overall print costs and achieving corporate social responsibility and sustainability goals. In 2014 Xerox launched CompleteView™ Pro, another tool in the managed print assessment process that, in part, provides customers with a sustainability analysis documenting the environmental impact of print output such as power consumption and CO2 emissions by device and site. Learn more at managed print services.

Using the full suite of Managed Print Service tools, we work with customers to improve the efficiency of office document management by assessing printing needs and developing solutions. Using this approach, customers can better achieve these goals:

• Energy and Greenhouse Gas reduction: Print asset optimization and updates improve energy consumption, reduce Greenhouse Gas impact, and reduce waste materials.
• Reduced paper usage: Using both print authentication and authorization, along with gamification techniques, print behaviors can be changed to reduce unnecessary prints.
• Reduce waste: Newer, more sustainability print technologies and consumables drastically reduce the amount of waste generated from printing practices.
• Digital Transformation: Other paper reductions comes from adoption of digital workflows integrated with Enterprise Content Management (ECM), digital alternatives.

In addition, we use a comprehensive design for the environment approach when designing and developing our products so that environmental impacts are minimized throughout the supply chain.

Standards
Our product standards encompass the following: energy efficiency, chemical management, packaging, parts reuse and recycling, electrical and mechanical safety, ergonomics, electromagnetic emissions, noise, fire resistance and materials safety. Xerox business teams and our Environmental Health, Safety & Sustainability (EHS&S) organization review our products at each stage of the development process for conformance with environmental, health and safety standards, which is a requirement for the introduction of any product. All Xerox standards ensure our products have the appropriate labels and information needed to meet all safety and environmental label requirements to keep our customers appropriately informed. All products meet required industry labeling standards for each market.

Lifecycle Assessment
Xerox integrates lifecycle thinking into all of our product and service development activities as well as our innovation activities. Lifecycle Assessments (LCAs) are a means of technically evaluating the environmental impact of a product’s materials, manufacturing, distribution, use and end-of-life. We conduct full LCAs — in accordance with the appropriate ISO standards — to determine where in the product lifecycle the largest environmental impacts arise and to compare products with a significant difference in technology. Full peer-reviewed LCAs have been performed on our solid ink products (8860, 8870, 8700 and ColorQube 9200 series) and many of our laser technology devices (WorkCentre 5325/30/35, WorkCentre 5945/55, and Phaser 7100). Many of these LCAs directly contributed to our achieving the Electronic Products Environmental Assessment Tool® (EPEAT®) Gold certification for these configurations and provided valuable input to our design teams to determine future opportunities for reductions in environmental impacts. We encourage our customers to learn more about how their printing behavior affects the overall carbon footprint of their organization from a lifecycle perspective.

Product Design
Xerox has long incorporated environmental considerations into product design. Internal processes ensure that product design teams are informed about regulatory and market driven changes affected by product design. These processes ensure that product design teams are able to incorporate timely environmental and product safety considerations. Scientists in our materials research group evaluate aspects of Safety, Energy, Materials and Sustainability (SEMS) using a tool we developed that enables researchers to quickly compare the current design with a future proposed design. The tool challenges designers to think about the whole lifecycle of the product and recognize any positive or negative impacts to the environment. By using SEMS, we can quantify energy reductions, reduce risk of regulated materials and track progress over time. SEMS was designed to be used in early research and development stages to understand tradeoffs and help make decisions.

EPEAT^®
For office products, Xerox uses EPEAT^® as the foundation of our Design for Environment program. A comprehensive environmental rating system, EPEAT^® identifies electronic equipment that meets specific criteria. The diagram below shows the rigor of the system. EPEAT^® is composed of criteria spanning corporate and product requirements (50+ requirements for imaging equipment). When a company and product meets these criteria, it must pass a third party desk review. Only after a satisfactory review, the product can be registered and verified annually to ensure compliance.

EPEAT^® combines comprehensive criteria for design, production, energy use and recycling with ongoing independent verification of manufacturer claims. EPEAT^® criteria reflect several categories of environmental attributes that span the lifecycle of electronic products: material selection, design for end-of-life, product longevity/life extension, energy conservation, end-of-life management, corporate performance, packaging, consumables and indoor air quality. Xerox continues to support EPEAT^® initiatives and has a representative on the EPEAT Advisory Council to promote collaboration among stakeholders and aid in the success of the program moving forward. Since 2014 Xerox has committed to launching all new office products with EPEAT^® Silver or Gold certification. For example, all new VersaLink and AltaLink products are EPEAT^® Silver or Gold as we continue to design our products with the environment in mind. Xerox is the only company to claim all eight EPEAT^® corporate optional criteria. Learn more about the EPEAT^® program and view current Xerox EPEAT^® registered products here.

Reducing Energy Use through Our Products, Technology and Initiatives

• ENERGY STAR^®
  More than 10 years before the inception of the U.S. 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 continue to introduce copier, printer, fax and multifunction products that have earned ENERGY STAR® status, even as the certification criteria have grown more stringent.
  
  In 2016, 100 percent of all our new eligible product introductions achieved ENERGY STAR®. 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.
  
  The ENERGY STAR^® program, as noted, introduces progressively more stringent requirements over time. The most recent revision went into effect on January 1, 2014. While the standard was challenging to meet, our goal remains to have 100 percent of our new products achieve this label. Xerox and other industry members are working with the EPA to establish the next set of requirements, which will be ENERGY STAR^® Imaging Equipment 3.0. Xerox will keep on meeting these new targets in the coming years. These energy requirements serve as the foundation for other eco-labels, such as EPEAT^® and Blue Angel, and show our ongoing commitment to reduce product energy consumption.
  
  
• Multifunction Devices
  Our 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 50 percent. Energy savings would be substantially higher if a multifunction system replaces individual products that have not earned the ENERGY STAR^® rating.
  
  
• Xerox ConnectKey™
  Xerox ConnectKey™ is a software solution that enables information to be moved to and from the cloud without the security risks that commonly exist. Cloud computing is an alternative to large data centers and is being recognized worldwide as less energy intensive than data centers while generating fewer GHG emissions. In addition, Xerox ConnectKey™ and Cisco EnergyWise enable energy management by allowing for the control, management and reporting of a device’s power consumption and the setting of power states and timeout intervals.

Deinkability
In recent years, deinkability has become an area of increasing concern, particularly among our Graphic Communications customers. Ensuring that prints produced with our equipment and materials can be responsibly managed at the end of their useful life is an important consideration in our product development process. When appropriate, independent testing confirms that these prints pose no unique challenges to the recycling stream. While the deinkability of xerographic prints has long been demonstrated, a key milestone for a new technology came in 2010 when our CiPress printer achieved a “Good Deinkability” rating from INGEDE, the international association of the deinking industry.

Packaging and Distribution
Packaging and distribution are integral parts of our product commercialization process. We strive to eliminate, reduce, reuse and recycle packaging and eliminate the use. We also require packaging suppliers to comply with bans and restrictions for a variety of chemicals. We document our expectations in our Environment Health and Safety Requirements for Packaging Standard — EHS-710, and our General Packaging Standard — 88P311. Our commercial equipment is designed and tested extensively to be shipped without any required packaging. Eliminating or reducing packaging wherever feasible, conserves natural resources and decreases fuel use for distribution. Doing so represents a sustainability win for business and the environment.

We also offer the Xerox^® Automated Packaging Solution. This system uses the latest in document technology to print, finish and cut customized folding cartons in short runs. By creating packaging quickly and cost effectively, this tool enhances material efficiencies as well as decreases obsolescence through customized boxes and containers. Automated packaging reduces financial and environmental costs associated with warehousing, storage and disposal. It also proves an advantage for focused marketing campaigns and rapidly changing competitive markets.

Third-Party Supplies Sold by Xerox
Xerox sells imaging supplies through its distribution network that are manufactured by other companies for use in other OEM printers. Manufacturing processes combine patented and patent- pending technology, environmental management principles and proven waste prevention manufacturing and recycling processes. We thoroughly review these supplies to ensure compliance with appropriate regulatory requirements. In addition, we assess them against our own stringent standards. The results of these reviews ultimately determine which products carry the Xerox brand. Information is provided on Safety Data Sheets (SDS), which meet the requirements of the Globally Harmonized System of Classification and Labeling of Chemicals (GHS) as implemented through regulations in our various markets.

Striving for a Circular Economy
In the 1980s, Xerox introduced the concept of a circular economy for electronics remanufacturing, long before the term was coined. Our vision was to transform Xerox manufacturing, operations, offices and facilities into waste-free workplaces. We had the same vision for our customer’s workplaces. A world where our electronics and supplies currently in use would be the raw materials of tomorrow at the end of their useful life. Hence, the meaning of the term circular economy. Where quality is not compromised, precious natural resources are conserved and waste becomes an obsolete term. More than three decades later, we are still living the dream and demonstrating that a circular economy approach delivers economic, environmental and societal benefits.

Our aim is to design products, packaging and supplies that make efficient use of resources, minimize waste, reuse material where feasible and recycle what cannot be reused. To meet this commitment, we developed several programs: Xerox Green World Alliance provides a collection and reuse/recycling program for spent imaging supplies; Xerox Product Takeback and Recycling Program manages equipment at end-of-life; and we invest in technologies that reduce the creation of waste. For laser-based products, materials innovation has extended the life of critical replaceable components by up to 50 percent.

Our approach to managing products at end-of-life translates into significant environmental and financial benefits. Globally, our combined returns programs (equipment resale or remanufacture in conjunction with parts and consumables reuse and recycling) prevented nearly 37,000 metric tons of waste from entering landfills in 2016.

Consumables Takeback and Recycling
Our GWA initiative, as noted, is a collection and reuse/recycling program for customers for their used imaging supplies. GWA is central to our commitment to waste-free products.

Currently, more than 35 countries participate in the Xerox GWA. Each has its own GWA country website that describes the processes available to the customer or the appropriate points of contact for more information. Worldwide, our customers returned more than 4.2 million cartridges, toner containers and other used supply items in 2016, equating to 4,800 metric tons.

Returned products are sorted, and items suitable for remanufacturing are cleaned, inspected and then remanufactured. Remanufactured consumables, containing an average of 90 percent reused/recycled parts, are built and tested to the same performance specifications as new products. Items that are not suitable for remanufacturing are recycled or recovered through energy from waste. Recycled waste toner and toner reclaimed from manufacturing that qualifies for reuse may account for 25 percent of the weight of new toner, without compromising toner functionality. Reusing waste/reclaimed toner saves several million dollars in raw material costs each year. Of the toner that cannot be reclaimed, 75 percent is recycled by our consumables recycling partner while the remaining volume is utilized at energy from waste facilities to generate steam and electricity.

Total Waste Diverted from Landfills from Returned Cartridges, Bottles and Waste Toner

Equipment and Parts Takeback and Recycling
In the early 1990s, we pioneered the practice of converting end-of-life electronic equipment into products and parts that contain reused parts while meeting new-product specifications for quality and performance. We have developed a comprehensive system for taking back end-of-life products, which processes assets through remanufacture, refurbish, parts reuse, recycling or broker sales, each of which fully supports our waste-free initiatives.

We design our machines with high durability and reuse capability in order to facilitate multiple product lifecycles. During the active phase of a product, all returned equipment and spare parts are evaluated for reuse opportunities throughout the supply chain. Finally, all parts and equipment that are not destined for re-use have specific guidelines, which facilitate easy and consistent recycling.

Changes in volumes of waste diverted from landfills are due in part to increases in product and part re-use opportunities, modifications in product mix, a move to lighter-weight machines as well as growth of regulatory-driven local recycling schemes. For example, the transition to digital equipment and lighter-weight parts has reduced the weight of both office and production equipment by as much as 50 percent over the last 10 years. The decline also includes a decrease in the number of office machines returned for remanufacturing in Europe due to participation in European Union member state Waste Electrical and Electronic Equipment (WEEE) programs. In geographies where Xerox exercises direct control over the end-of-life management of equipment, return rates are high. For example, approximately 57 percent of all U.S. equipment installs are ultimately returned to Xerox for end-of-life disposition, a figure that rises to 100 percent for leased equipment.

In 2016, 11,000 metric tons of equipment and parts related waste were diverted from landfills to recycling at our U.S. Reverse Logistics Center. Globally, that volume rises to 37,000 metric tons.

Total Waste Diverted from Landfills from Returned Equipment and Parts

E-Waste
While Xerox has long been committed to responsible end-of-life management of equipment, the proliferation of e-waste regulations has created a need for multiple programs in different countries and even states. The subtle differences in requirements among these regulations pose challenges from a process consistency and efficiency standpoint. For example, with the implementation of the European Union’s WEEE Directive, we continue to operate our European takeback program to enable equipment remanufacturing and parts reuse. We also participate, as needed, in European member states’ individual collection and recycling programs.

In the U.S., Xerox recently partnered with a large electronics recycler to ensure that our customers have a means for their old imaging devices to be processed in a responsible manner. The program is consistent with the requirements defined in the various manufacturer takeback initiatives.

We carefully manage suppliers that provide recycling and waste disposal services. A waste vendor approval process assesses the safety and environmental practices as well as compliance history of each vendor. Where appropriate, we require these companies to document the final disposition of materials sent to their facilities, including electronic scrap. Xerox does not allow its vendors to send electronic scrap to developing nations for processing. We strive to work with only those recyclers that have implemented voluntary programs certified by accredited organizations. The programs are U.S. EPA’s Responsible Recyclers (R2) or the Basal Action Network’s e-Stewards standards. In addition, in 2014, Xerox’s two U.S. equipment processing facilities achieved R2 certification.

Paper
We recognize our obligation to responsibly source paper and enable efficient paper use. Our strategy begins upstream with the fiber source and continues to processing and manufacturing, through use and end-of-life. We utilize a multi-pronged approach through partnerships with our customers and suppliers, The Nature Conservancy and other stakeholders, including non-government organizations (NGOs), government agencies and academia. Our long-term goal is to support a sustainable paper cycle and minimize environmental impacts while meeting our customers’ exacting business needs.

In 2013, Domtar signed an agreement with Xerox for the acquisition of the Xerox paper and media products business in the U.S. and Canada. This deal gives Domtar exclusive rights for the marketing and distribution of Xerox brand paper and print media. Read more about Domtar and sustainability. The same year Xerox’s paper business in Western Europe was sold to Antalis. Read more about Antalis’s sustainability charter.

Xerox maintains the paper business in its Developing Market Operations. We apply stringent paper sourcing guidelines for companies that provide paper to Xerox for resale. The requirements cover all aspects of papermaking, from forest management to production of finished goods. We supply papers that comply with sustainable forest management standards, including Forest Stewardship Council (FSC) and Program for the Endorsement of Forest Certification (PEFC). FSC-certified papers use raw materials from an FSC-certified source, controlled wood sources or post-consumer reclaimed sources.

Our Partnership with The Nature Conservancy (TNC)
Since 2006, Xerox and TNC have partnered to preserve and protect globally important forests. This work is funded through The Xerox Foundation grants of more than $2 million.

During the third term of the partnership in 2016, Xerox supported the Conservancy’s efforts to:

• Develop and test a broadly applicable carbon methodology for improved forest management that would allow landowners to achieve forest certification and serve as a platform for potential carbon benefits.
• Strengthen a key tool for identifying priority habitats — the High Conservation Value (HCV) approach — for building consistency across projects, disseminating standards and training assessors through global and regional HCV networks. .
• Promote responsible forestry through the implementation of forest management standards by working with Xerox suppliers and other land managers at two sites in North America: Central-Western New York and across the Canadian boreal forest (including a focused project in Northwest Ontario).

These initiatives have improved forest conservation, helping to develop a sustainable paper cycle and advance sound forest management practices through market incentives, landowner investment and resource networks. Most importantly, our work has and will continue to stem the tide of forest loss and degradation, a contributor to global GHG emissions.