DELL AUSTRALIA PTY LIMITED

Australian Packaging Covenant Action Plan

For the period

2 0 1 0 - 2 0 1 5

DELL Australia Pty Ltd APC Action Plan 2013

i

CONTENT

1 Executive Summary ...................................................................................................................... 2

2 Company Summary ...................................................................................................................... 3

3 Dell Corporate Responsibility ................................................................................................... 4

4 Packaging ................................................................................................................................... 5-9

5 Dell's Producer Responsibility in Australia ...................................................................... 10-11

6 Packaging Covenant Signatory Commitments ............................................................... 12-13

7 Schedule for Packaging Reviews ............................................................................................. 14

8 Action Plan ................................................................................................................................... 15

8.1 Introduction ...................................................................................................................... 15 8.2 Design ........................................................................................................................... 15-18

8.3 Recycling ..................................................................................................................... 19-22 8.4 Product Stewardship ................................................................................................. 23-27

DELL Australia Pty Ltd APC Action Plan 2013

2

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 – 2015 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 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 adapt 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 sustainability 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 - 2015 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 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.

DELL Australia Pty Ltd APC Action Plan 2013

3

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 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.

In 2013 we celebrate Dell’s 20th birthday in Australia. From a small team managing sales, logistics and

marketing operating out of Frenchs Forest, we now have expanded to over 1,000 team members

supporting customers in every state and territory in Australia.

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 and launched 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 which has all new technology around Green power, highly

dense computing capability, highly secure site, 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 will be 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.

DELL Australia Pty Ltd APC Action Plan 2013

4

3. Dell Corporate Responsibility Each year, Dell publishes a Corporate Responsibility Report, found at:

http://content.dell.com/us/en/corp/report.aspx. The FY14 Corporate Responsibility Report (covering Feb. 2, 2013–Jan. 31, 2014) represents Dell’s first year tracking performance against our 2020 Legacy of Good Plan.

In 2013, Dell launched the 2020 Legacy of Good Plan – our long-term strategy for bringing

sustainability and business objectives together, creating social and environmental benefits while

driving customer outcomes. The plan delivers on Dell’s commitment to put technology and expertise

to work where it can do the most good for people and the planet. It is based around 21 goals

addressing the material issues related to the environment, communities and our people. Together, the

goals are helping Dell create a legacy of good. More information on the Legacy of Good Plan can be

found at: www.dell.com/2020.

Results outlined in the Corporate Responsibility Report show that Dell is making good progress against these goals. Among the many highlights, five stand out over the past year:

• Dell reduced the energy intensity of its product portfolio by 23.2% over the last two years. Customers who purchased products in FY14 can expect to spend $449 million less in electricity over their products’ lifetime compared to those purchased in 2012.

• Through participation in our Connected Workplace program, Dell facilities avoided 6,700 metric tons of greenhouse gas emissions, which is equivalent to not driving 16M miles. Participation in the program is up to 20% officially (40% of team members take advantage of occasional flexible work solutions), and the program is helping drive creativity and better work-life balance.

• By putting our technology, expertise and giving dollars to work in underserved communities, we have helped more than half a million children through our youth learning programs. For example, the innovative solar-powered Dell Learning Labs use energy-efficient Dell Wyse thin clients to aid technology-based learning in areas of Africa without reliable electricity access.

• Now, 58% of Dell packaging is sourced sustainably, including boxes made from wheat straw in a process that uses 40% less energy and 90% less water.

• Changes in our fulfilment model and a big increase in the purchase of electricity from renewably generated sources led to an 8% drop in our greenhouse gas emissions from facilities and logistics. We would need to plant 1.9 million trees (73x the number of trees in Central Park) to absorb that amount of carbon.

DELL Australia Pty Ltd APC Action Plan 2013

5

4 . Packaging

Dell packaging used following packaging materials:

Outer Box: 1) Corrugated cardboards, including those derived from wheat straw (see above)

Inside Cushion: 1) HDPE; 2) EPE; 3) Molded Paper Pulp; 4) Molded Bamboo Pulp; 5) EPS;

New Cushion: 1) Mushroom

Other: 1) LDPE Accessory bags

For the 2013 reporting period, an additional packaging component, mushroom packaging material,

was chosen for evaluation. The existing packaging materials previously evaluated included corrugated

cardboards and bamboo. We also expanded the use of molded paper pulp cushioning to include a

range of our desktop platforms.

Packaging reduction 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 (10,000 tons) of packaging material between

2008 through 2012 from desktops and notebooks. We met this goal early and total packaging material

reductions (November 2008 through the middle of 2013) exceed 25.3 million pounds.

Additionally, we employ 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.

Sustainable, recyclable content

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.

DELL Australia Pty Ltd APC Action Plan 2013

6

In FY12, we met our stated four-year “Content” goal ahead of schedule, increasing the amount of recycled content and renewable materials in our packaging by 40 percent between 2008 and 2012.

In FY13 we exceeded the goal by increasing recycling content in packaging up to 42%

And in FY14, 58 percent of Dell packaging is now sourced sustainably (we have expanded our definition from simple recycled content to include other sustainable materials as well), including boxes made from wheat straw in a process that uses 40 percent less energy and 90 percent less water.

Dell and packaging partner YFY Jupiter have collaborated in the development of converting an agricultural waste by product wheat straw for use in the manufacture of i) Corrugate board for Dell ship boxes and ii) Moulded pulp cushions to be used on a range of notebook platforms supplied by Asia based ODM's. Extensive testing in accordance with Dell test specification 00121 has been completed to validate suitability of wheat straw raw material for use in both our notebook ship boxes and cushions. In September 2013, Dell helped our supplier YFY Jupiter launch the world’s first manufacturing plant for converting these agricultural wastes into paper pulp in Yangzhou, China. The manufacturing process utilizes specialty enzymes; based on those found in the stomach of a cow, to convert wheat straw into usable fibres for the production of both corrugated cardboard and moulded paper pulp items. 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 moulded paper cushions for notebooks, with the remaining 30% coming mostly from recycled-content paper. The process of creating the wheat-based pulp uses up to 40% less energy and 90% less water than traditional methods to convert wood into fibre. It also helps avoid approximately 180 tons of CO2 emissions per year and provides local farmers with an additional source of income. Fluctuating commodity prices in FY14 caused us to balance

the material content of some of our moulded paper pulp cushions. Our portfolio of innovative sustainable materials enabled us to introduce wheat straw and other sustainably derived materials to supplement bamboo, which had seen an increase in demand for its use. All of the materials used were of similarly sustainable sources.

DELL Australia Pty Ltd APC Action Plan 2013

7

Packaging made from air, not oil As part of our effort to source 100 percent of our packaging materials from sustainable materials, Dell has turned to Newlight Technologies’ AirCarbon for a pilot project to manufacture protective bags out of plastic made not from oil but from carbon pulled out of the air. Today most plastics are made exclusively from oil or other fossil fuel derivatives. In fact, around 4 percent of the world’s oil production is used as feedstock to make plastics, with a similar amount consumed as energy in the process. AirCarbon plastics are different. They are made from industrial sources of carbon emissions, like those captured by dairy digesters and methane capture, avoiding the use of oil. These carbon emissions would normally become part of the air we breathe, further contributing to climate change.

Instead, Newlight 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). Performance remains largely the same as traditional plastics. Dell is the first in the IT industry to use AirCarbon. 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. Our use of AirCarbon will also help Dell work toward our zero-waste packaging goals that are a part of our Dell 2020 Legacy of Good Plan. AirCarbon will join other packaging solutions derived from bamboo, mushrooms and wheat en route to a 2020 packaging profile that is 100 percent sourced from sustainable materials and 100 percent recyclable or compostable.

Sustainable bamboo — Since November 2009, we started shipping Dell products in packaging made from bamboo, a highly renewable, certified compostable material that serves as a great alternative to molded paper pulp, foams and corrugated cardboard often used in packaging. As of 2014, are shipping numerous tablets and notebooks in bamboo cushion. All of our bamboo cushioning (a highly renewable fiber) comes from FSC-certified sources. We encourage customers to add bamboo packaging to their compost piles for easy, environmentally responsible disposal. Toss It in Your Compost Pile

Adding to its attributes as an environmentally-responsible alternative to traditional packaging materials, Dell bamboo packaging has been certified "compostable" and has received ASTM D-6400 certification from the Soil Control Lab. This certification assures that the bamboo will compost satisfactorily and biodegrade at a rate comparable to known compostable materials.

DELL Australia Pty Ltd APC Action Plan 2013

8

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.

Dell also worked with our supplier for bamboo packaging to undertake compostability of bamboo

packaging. The bamboo trays used in products were tested per the ASTMD6868 standard. The results shows that the bamboo packaging passed the disintegration (95% of the sample passed the 2mm sieve after 12 weeks of composting), and biodegradation test (129 days 85% of the organic carbon in the material being tested to be converted to carbon dioxide when compared to the positive control (cellulose).

Combining multipack and mushrooms

Since 2011 Dell went a step further in introducing

new breed of compostable and innovative material.

For orders of multiple systems going to the same

location, we offer Multipack — a packaging option

that allows multiple systems to be shipped in a

single box. Dell Multipack allows us to ship six servers or 10

notebooks in one box to customers with larger orders.

Seeking a greener alternative to petroleum-based cushioning materials for this heavy packaging, Dell has piloted the use of mushroom packaging. The mushroom bioscience is based in using common agricultural waste products. Cotton hulls, rice hulls or wheat chaff are placed in a mold and injected with mushroom spawn. Five to ten days later, the mushroom root structure completes its growth, having utilized the energy inherent in the agricultural waste instead of external energy sources like petroleum. The final product looks and acts like Styrofoam — only this is organic, biodegradable and can be used as compost or mulch, which makes for easier and more environmental-friendly disposal.

We believe this material is best suited to our heavier products such as servers and desktops. The combination of Multipack and mushroom cushioning make for a super-green solution that we hope sets a new industry standard. We also began identifying new ways to use mushroom packaging with various consumer-facing, all-in-one desktop products. This would replace existing expanded polyethylene (EPE) solutions. In FY12, this innovation reduced the average number of boxes these customers received by 80% We continued to evaluate pallets made from alternative materials. Employing reusable, recyclable foam pallets instead of wood pallets reduces weight and logistics costs, helping improve fuel efficiency for all transport modes. According to vendor estimates, we avoided approximately 7,000 tons of GHG emissions just by using foam pallets instead of wood in FY12. Reducing Waste with Multipack For orders of multiple systems going to the same location, we offer Multipack — a packaging option that enables multiple systems to be shipped in a single box. 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%.

DELL Australia Pty Ltd APC Action Plan 2013

9

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

At the end of FY14, 58 percent of all Dell packaging by volume could be considered recyclable or compostable, up from 57 percent in FY13. We continue to categorize a material as being recyclable if 60 percent or more municipalities will accept it, and as being compostable if it can be certified to meet ASTM D6400 standard. Awards and Recognition. In FY14, our team continually worked with suppliers, nongovernmental organizations and stakeholders to proactively find and test new packaging materials. Packaging Digest recognized this collaborative approach to innovation by awarding Dell its first Visionary Award for the Global Packaging Industry. Interbrand Best Global Green Brands In 2013, Dell was named as one of the Top 10 Best Global Green Brands <http://www.interbrand.com/en/best-globalbrands/ Best-Global-Green-Brands/2013/Dell> by Interbrand, and was recognized for its work around easy electronic recycling, sustainable packaging, responsible sourcing and more. Green IT awarded Dell the Green IT Award for Manufacturer of the Year in 2012 and 2013 for making a significant contribution to improving the IT industry's environmental performance. Dell Ultrabook and Tablet products received the 2014 Institute of Scrap Recycling Industries (ISRI) award for highly recyclable products design.

Links and resources:

• Dell sustainable packaging: www.dell.com/packaging

http://www.dell.com/Learn/us/en/uscorp1/corp-comm/earth-products-

packaging?c=us&l=en&s=corp&delphi:gr=true

• Dell Packaging: http://www.dell.com/Learn/us/en/uscorp1/corp-comm/bamboo

packaging?c=us&l=en&s=corp&cs=uscorp1&delphi:gr=true

• Bamboo Packaging: http://content.dell.com/us/en/corp/d/corp-comm/bamboo packaging.aspx

• Mushroom Packaging: http://www.dell.com/Learn/us/en/uscorp1/corp-comm/mushroom-

packaging

• The wheat straw packaging www.dell.com/wheat

• Air Carbon: www.dell.com/aircarbon

DELL Australia Pty Ltd APC Action Plan 2013

10

5. Dell ’s PRODUCER RESPONSIBILT Y in Austral ia

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. On Saturday 31st May 2014 TechCollect and Dell partnered to hold a one-day recycling event at Dell’s Australian head office. A total of 21,492 kg Of e-waste was collected of which 6,233 kg (29%) Was IT product and 15,259 kg (71%) was glass (TV & monitor) product. www.techcollect.com.au Before the legislative requirements, Dell has been offering free consumer take back programs from 2006.

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.

DELL Australia Pty Ltd APC Action Plan 2013

11

Head Office, Frenchs Forest Environmental Activities

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 with a set of programs and regular communications to achieve these goals. Dell Australia’s Facilities Team has been working with the Carbon Reduction Institute to look at energy efficiency measures in order to reduce carbon emissions. As a result of this, we have undertaken a project to replace all of the 36w fluorescent tubes, and 50w Halogen downlights in the Sydney office with energy efficient LED alternatives. The benefit of this change is that the Sydney office will prevent 183.6 tonnes of Carbon Dioxide (CO2e) from entering the atmosphere each year. In addition, the new tubes are only 18w and have a 30,000 hour lifetime rating – so we not only save on energy costs but also on maintenance and replacement costs. The final change-over of all lighting was completed January 2014.

DELL Australia Pty Ltd APC Action Plan 2013

12

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 – 2015 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 Off icer

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, Mr Joseph Kremer, on all matters relating to the Australian Packaging Covenant. This Action Plan has been endorsed by Mr Joseph Kremer.

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 Jim Quirke,

WW Environmental affairs WW Packaging & Procurement

Stephen Roberts Corporate Social Responsibility This APC team will work collectively over the next five years 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 Australia Pty Ltd APC Action Plan 2013

13

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 will also continue to ensure our suppliers assist in the implementation of this action plan based on our current strict procurement process. Members of our key suppliers currently meet the Dell packaging staff on a regular basis and are directly involved in the evaluation of new packaging materials, sustainable packaging initiatives etc. Our compostable bamboo packaging is just one example of how we have worked with suppliers in developing sustainable packaging.

DELL Australia Pty Ltd APC Action Plan 2013

14

7 . Schedule for packaging reviews

DELL Australia have 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 supply 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 are dealing with only the most sustainable of companies;

3. DELL is constantly comparing our baseline data to industry benchmarks and best practice globally.

7.2 T imetable 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%

DELL Australia Pty Ltd APC Action Plan 2013

15

8 Action Plan

8.1 Introduct ion

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 3C’s – 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.

8.2.2 Outcome

The outcome should be packaging designed to:

Avoid or minimise the use of materials and other resources; Optimise recyclability and recycled content; and Reduce litter impacts.

DELL Australia Pty Ltd APC Action Plan 2013

16

8.2.3 Key Performance Ind icator

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 June 17- 19, 2013 by the National Standards Authority of Ireland. Dell product & packaging design group is recertified until Jan 24th 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.

8.2.4 Current and Planned Act ions

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

Actual: What did you achieve?

KPI 1: % of signatories with documented policies and procedures for evaluating and procuring packaging

using the SPGs or equivalent.

Reduce product packaging and shipping materials by 20 million lbs. (9072 tons) for desktops and notebooks by 2012

In 2008, Dell announced its “Cube” goal: to reduce overall packaging volume by 10% by the end of 2012. In FY12, we exceeded that goal ahead of schedule — volume is down by 12.1% as a result of innovative design and streamlined cushioning and maintained the volume reduction through FY13 5.3 Million lbs of packaging weight was eliminated in FY13 - Total 25,9 Million Lbs (11.75 Million KG) Weight reduced since 2008.

Increase recycled content in packaging up to 40%

In FY12, we also met our stated 4-year “Content” goal ahead of schedule, increasing the amount of recycled content and renewable materials in our packaging by40 percent between 2008 and 2012.

DELL Australia Pty Ltd APC Action Plan 2013

17

In FY13 we exceeded the goal by increasing recycling content in packaging up to 42%

Design 75% of packaging from materials which are kerbside recyclable.

Our boxes are made from recyclable corrugated cardboard, so you can easily add them to your typical recycling stream.

Our HDPE cushioning, which is made from 100 % recycled content from milk jugs and detergent bottles can be recycled through many kerbside and corporate programs.

Our newest alternative packaging materials mushroom and bamboo are both compostable. Municipal recyclers will take bamboo cushions just as they would corrugate cardboard or paper.

In FY12 Dell met its stated “Curb” goal in May 2012 of making 75 % of packaging recyclable at kerbside. We continued to track that goal ,

In FY’13 we were at 76%

More details can be found in Dells Corporate Responsibility Report link attached http://i.dell.com/sites/doccontent/corporate/corp-comm/en/Documents/dell-fy13-cr-report.pdf

( Goal set in June 2013) 100 percent of packaging is sourced from sustainable materials and will be recyclable or compostable by year 2020. End of Year Targets: 65% by 2014, 70% by 2015

Baseline measurement of packaging for all lines of business taken - 57% of packaging is currently sourced from sustainable materials and is recyclable or compostable. Assessment of packaging materials for each line of business complete to determine baseline of current packaging sourced from sustainable materials. Further details of Dell's sustainable and recyclable packaging goals can be found on following website link http://i.dell.com/sites/doccontent/corporate/corpcomm/en/Documents/2020-plan.pdf Ref. Page 24, 25, 32 & 33

Mushroom and bamboo packaging is an extension of our Three C’s philosophy: 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

DELL Australia Pty Ltd APC Action Plan 2013

18

2004. Dell restricts the use of PVC in all our packaging. Our shipped pallets are compliant to ISPM 15 requirements. Going forward, as part of our review of the SPG guidelines, each current standard will be referenced against the SPG guidelines where we believe it has provided coverage for a particular requirement raised in the review.

Strategy Yes No Document Copy on APC file 1 Maximise water and energy

efficiency Yes Energy Efficiency

Yes (CR Report &

Corporate Websites & Action Plan references)

2 Minimise materials Yes Greener Products and

Packaging As Above

3 Use recycled materials Yes Greener Products and Packaging

As Above

4 Use renewable materials Yes Greener Products and Packaging

As Above

5 Minimise risks from RoHS Yes Chemical Use Policy

As Above

6 Use materials from responsible suppliers

Yes Supplier Responsibility Supplier Standards Supplier Principles

As Above

7 Design for Transport Yes CR Report

As Above

8 Design for reuse Yes CR Report

As Above

9 Design for recovery Yes Greener Products and Packaging

As Above

10 Design for litter reduction Yes Greener Products and Packaging

As Above

11 Design for consumer accessibility

Yes Measure Corporate Responsibility

As Above

12 Provide consumer information

Yes CR Report

As Above

DELL Australia Pty Ltd APC Action Plan 2013

19

8.3 Recycl ing

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 vendor Implement formal policy of buying packaging made from recycled products.

8.3.3 Key Performance Ind icator

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. Office Waste is included in our Distribution centres recycling and waste metrics. Dell has prepared a baseline for our waste by material type to allow for comparison on an ongoing annual basis. This will be used to influence any future Waste Implementation plans. 2012

2013

Plastics ( tons) 7.71 22.4 Cardboard (kg) 66,000 89,088 Pallets (kg) NA 10,820 Bioreactor (kg)

NA 7,230

8.3.4 Current and Planned Act ions

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 In-house Recycling 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. 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. Dell recycles all internal computer assets via an approved ISO 14001 recycling vendor.

DELL Australia Pty Ltd APC Action Plan 2013

20

8.3.4.2 Reducing Litter Impacts

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. But in 2013, Schenker managed to divert over 2012

• Plastics up 15 ton

• Cardboard up 23 ton

• 10,000+ pallets recycled.

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

Cardboard 35m3 single 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

On the other hand, at TES AMM, Dell’s Environmental partner, all packaging goes into a batch with every other clients packaging and then comes out as EPE, EPS cardboard etc. Cardboard/paper (include EPS) recycled in 2013 = 58, 182 KG TES AMM also put in place the following improvements

• Installed a foam compactor in order to more effectively recycle polystyrene, polypropylene

and polyethylene and reduce freight costs.

• Improved the separation process to allow greater separation of different types of foam

• All packaging material is recycled, except the grey foam bags which cannot be recycled

(the ones that expand)

• Ongoing training and quality control ensures appropriate feedstock for recycling

processes producing high quality recycled products

8.3.4.3 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.

Plastics (tons) Cardboard (kg) Pallets (kg) Bioreactor (kg)

2012 2013 2012 2013 2012 2013 2012 2013

7.71 22.46 66,000 89,088 0 10,820 0 7,230

DELL Australia Pty Ltd APC Action Plan 2013

21

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-environmentalpolicy.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. http://i.dell.com/sites/content/corporate/corp-comm/en/Documents/dell-fy13-cr-report.pdf

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&manufacturer=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 out to do?

Actual: What did you achieve? KPI 4: Signatories implement formal policy of buying

packaging made from recycled products. To ensure formal policy is actively used and that products are purchased that contain recycled content.

Dell inbound packaging specification Dell p/n# 11500 is referenced in supplier contracts and master purchase agreements. 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% 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

DELL Australia Pty Ltd APC Action Plan 2013

22

8.3.4.3 Recycle and Compost your Packaging Many of our packaging materials are recyclable (depending on location), compostable or both.

The following information is meant to help you understand the packaging materials that accompanied your Dell product:

Material Action Notes

Corrugated containers and boxes

Recycle

• Made with a minimum of 25 % recycled cardboard (percentages may be higher in some regions)

• Minimal printing/graphics on the box maximizes recyclability

• Widely accepted for recycling around the world

Packaging envelopes

Recycle

• Used for shipping parts and peripherals; they take up less space and create less waste than a rigid box

• Made from paperboard that contains some recycled content

• Often recyclable — check with your local program

Bamboo cushions

Recycle or compost

• Recycles like cardboard — many recyclers will take them (check local guidelines)

• Certified compostable by ASTM International standards

• Learn more about our bamboo packaging

Mushroom cushions

Compost

• Grown rather than made, using agricultural waste and mushroom spores

• Used to protect multiple servers in a single box (Multipack)

• Certified compostable by ASTM International standards

Molded paper-pulp cushions

Recycle

• Used to cushion larger products, such as desktops

• Made from recycled newsprint and other paper sources

• Usually recycles like cardboard — check with your local recycler

HDPE cushions

Recycles most places

• Often made from recycled plastics, such as water bottles or milk jugs, to protect larger products

• Carries the #2 recycling symbol, which is accepted in many places

• After you recycle, they get turned into other recycled-content materials, such as plastic lumber and even more bottles

EPE cushions

Non-recyclable

• Expanded polyethylene (EPE) is flexible foam used to protect some shipments

• Not widely accepted for recycling

Air Pack cushions

Puncture to reduce use

• Lightweight, inflated plastic cushions made of #4 plastic

• May be accepted for recycling — check with your local recycler

• Help minimize waste by puncturing

DELL Australia Pty Ltd APC Action Plan 2013

23

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.

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 Ind icators

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.

DELL Australia Pty Ltd APC Action Plan 2013

24

Target: According to your Action Plan, what did you set

out to do?

Actual: What did you achieve?

KPI 6: % signatories with formal processes to work collaboratively on packaging design and / or recycling.

To collaborate with suppliers to improve design, procurement and recovery of packaging

Dell has been actively collaborating with other companies and supporting research to drive sustainable packaging solutions for IT industry. 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. Dell is involved with every step of our products packaging design and procurement. Our staff 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 brandholder is to ensure every stage in the development of our products packaging is considered under the Sustainable Packaging Guidelines.

To simplify and revolutionize computer packaging that will result in the elimination of approximately 20 million lbs (10,000 tons) of packaging materials from 2008 through 2012. This initiative coined 3C’s focus on three primary pillars for packaging sustainability: - Cube: How big is the box? Could it be smaller? - Content: What is the packaging made of? Could it be made of something better? - Curb: Is it easily recycled? In June 2013, Dell target for 100 percent of packaging to be sourced from sustainable materials and will be recyclable or compostable by year 2020..

In November 2009, Dell became the first technology company to offer bamboo packaging for our products. Bamboo is fast-growing, it replenishes the soil and it makes for sturdy lightweight packaging material. We discovered that bamboo serves as a great alternative to molded paper pulp, foams and the corrugate often used in packaging. Currently more than 50 percent of our Inspiron platforms are packaged in bamboo. Dell bamboo packaging has been certified "compostable" and has received ASTM D-6400 certification from the Soil Control Lab. 2010 -2011 For orders of multiple systems going to the same location, we offer Multipack — a packaging option that allows multiple systems to be shipped in a single box. Dell Multipack allows us to ship six servers or 10 notebooks in one box to customers with larger orders. Mushroom Packaging Pilot Seeking a greener alternative to petroleum-based cushioning materials for heavy packaging, Dell has piloted the use of mushroom packaging. The mushroom bioscience is based on using common agricultural waste products. Cotton hulls, rice hulls or wheat chaff are placed in a mold and injected with mushroom spawn. Five to ten days later, the mushroom root structure completes its growth.

DELL Australia Pty Ltd APC Action Plan 2013

25

While it is as strong and protective as Styrofoam, it is organic and compostable. Dell is in the pilot phase of mushroom packaging and is the first major company in our industry to put this new biotechnology to use. We believe this material is best suited to our heavier products such as servers and desktops, so our initial pilot shipments are for the PowerEdge™ R710 server in the Multipack packaging configuration. The combination of Multipack and mushroom cushioning make for a supergreen solution that we hope sets a new industry standard. In FY12, this innovation reduced the average number of boxes these customers received by 80% 2012 Dell met the 3C’s goal set in 2008. We met the 10% cube reduction goal In FY12. In fact we exceeded that goal ahead of schedule — volume is down by 12.1% as a result of innovative design and streamlined cushioning. In fact just in last three years we reduced packaging by 20.6 M Lbs under the 3C’s program. We also reached our goal of increasing the amount of recycled packaging content by 40% between 2008 and 2012 and have met our goal of making 75% of packaging recyclable at kerbside. 2013 Dell’s packaging engineering team launched initiative to begin using a new sustainable material — wheat straw in many of its cardboard boxes for notebooks originating in China. Beginning this August 2013, Dell started piloting the straw in its boxes, starting with 15 % by weight. This will be ramped up as operations scale shortly. The remainder of the box will primarily come from recycled content fiber. Dell estimates initially it will use 200 tons of wheat straw per year. This is estimated to reduce 180 tons of CO2 emissions annually, the equivalent of carbon sequestered by more than 4,600 seedlings planted and grown for a decade. During pulping, the wheat straw will go through an enzymatic process — modeled after the way cows digest grass — that uses 40% less energy and almost 90% less water than traditional chemical pulping. This initiative coined 3C’s focus on three primary pillars for packaging sustainability: - Cube: How big is the box? Could it be smaller? - Content: What is the packaging made of? Could it be made of something better? - Curb: Is it easily recycled? In June 2013, Dell target for 100% of packaging to be sourced from sustainable materials and will be recyclable or compostable by year 2020.

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 Australia Pty Ltd APC Action Plan 2013

26

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. Dell sought to minimise the litter propensity of our packaging and are educating customers on responsible disposal.

Target: According to your

Action Plan, what did you set out to do?

Actual: What did you achieve?

KPI 8: Reductions in packaging items in the litter stream.

Dell designs packaging to be

litter 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. Dell ships electronic equipment for home and commercial use and it is very unlikely that our packaging will end up in the litter stream. We do not use any packaging which has potential for litter such as loose plastic and paper wraps. Most of our customers buy products either directly from Dell or through retail partners. Product is typically used in home and/or business environment thereby reducing the potential of packaging litter in open and public setting.

To inform consumers about convenient ways of recycling

packaging and discourage litter

Dell will continue to educate consumers to responsibly recycle the packaging. This is being done by labelling packaging for recycling, information on our packaging website : http://www.dell.com/learn/us/en/19/corp-comm/recycleand- compost-your-packaging We however believe that as stewards of the greener planet, it is necessary to help educate consumers about benefits of responsible recycling and providing convenient recycling access. We have been labelling all our kerbside recyclable packaging with the recycling symbol (Chasing Arrow for Corrugate and paper packaging and SPI plastics symbol for our plastics packaging). Dell Packaging Specification for recycling and regulatory labelling (P/N # G3515)

Dell is piloting a recycling label on the box to inform consumers about convenient ways of recycling packaging

and discourage litter.

Dell packaging engineers are in process developing a pilot program which includes helpful information on packaging to direct customers to nearest packaging recyclers. This feature will include a recycling logo/info to the box artwork. We intend to pilot this on a Inspiron NB’s series (Consumer notebook) in the near future.

DELL Australia Pty Ltd APC Action Plan 2013

27

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