Dell Perspectives on “BFR/CFR/PVC-free”Electronics

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Dell Environmentally-Preferable Materials Overview

Environmental Leadership• The use of ‘Environmentally-Preferable Materials’ has been identified as one of the key

elements of Product Stewardship in Dell’s quest to become the Greenest Technologycompany on the Planet

– Mercury-free notebooks by 2010 (LED transition)– Eliminate remaining uses of Arsenic, BFRs, PVC and Phthalates as acceptable alternatives are

identified– Lead the industry in lead-free enterprise products ahead of regulation

Competitive Position• Major competitors shipping products with reduced levels of mercury, arsenic, BFR, PVC,

etc.

Future Regulation• EU REACH

– Public disclosure of chemical content effective 2008• EU RoHS Revision

– Anticipated effective in 2012• RoHS Exemption sunsets• Other anticipated ‘RoHS-like’ regulations in US, South America, Asia, California, etc.

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Dell Takes A Lifecycle Approach To Green

DELL CONFIDENTIAL

STAGE 1:PRODUCT

CONCEPT &DESIGN

STAGE 2:MANUFACTURING & OPERATIONS

STAGE 3:CUSTOMER

EXPERIENCE

STAGE 4: ASSETRECOVERY &RECYCLING

• Design out restricted materials• Design for product energy efficiency, upgradeability and recyclability• Incorporate Eco-label standards, engage in global standards• Manage suppliers to design for the environment

• Minimize factory energy use, air emissions, water use and solid wastes• Utilize recycled paper and other materials• Purchase renewable energy, Offset as needed• Focus on workplace health and safety

• Reduce transportation energy use• Minimize product energy consumption• Minimize packaging, Use recycled paper and packaging materials• Provide customer carbon offset option for their IT equipment

• Provide product recovery programs globally• Educate consumers• Collect and recycle products worldwide• Ensure integrity of recycling partners

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Dell Works With Global Industry Leaders To DrivePositive Environmental Change

INTERNATIONAL R

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Dell’s Chemical Use Policy

• …..To demonstrate our commitment, Dell is committed toeliminate in our new products all remaining uses of brominatedflame retardants (BFRs) and polyvinyl chloride (PVC), asacceptable alternatives are identified that will notcompromise product performance and will lower producthealth and environmental impacts. We will review a phase outplan yearly or when required and evaluate available technical,environmental and scalable solutions. Dell is open to discussthese plans and is committed to continuously improve theenvironmental quality of our products.

www.dell.com/earth

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• Product A - single niche BFR/PVC-free product (converting~1000 parts)

• Product B - mainstream product that has a BFR-free mainPCB and BFR-free fan housing and impeller only (converting3 parts)

BFR/PVC Avoidance Scenarios

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Dell Environmentally Preferable Materials InitiativesMercury-free Notebook LED transition

• Effective Dec. 15, 2008, >60% of E-Family laptops will ship with mercury-free LED back lights. Goalis to achieve 100% LED on all notebooks by 2010.

Lead-Free Enterprise Leadership• Dell is leading the industry in Lead-Free enterprise products, ahead of anticipated EU RoHS

regulation (2014).

Post Consumer Recycled Content Plastics• Goal is to increase use of recycled content plastics across the Dell portfolio.• Identify closed loop recycling technologies.

Drive BFR/PVC-Free Transition• Dell remains committed to eliminate the remaining uses of BFR, CFR, & PVC as acceptable

alternatives are identified, but a specific timeline has not been identified.• Specific BFR & PVC reduction requirements will be managed at the product level though standard

Dell documentation.• Thru September 2009, Dell has launched 10 “halogen-reduced” printer, PC and display products and

2 BFR/PVC-free products (G2210, G2410 displays). Standard offerings, not upsell configurations.

Industry Trade Associations• Continue to lead industry association activities and encourage suppliers to engage where appropriate• Dell chairs BFR/PVC-free projects in iNEMI, HDPUG and IPC

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Concerns With Halogen Regulation

• Lack of technical validation of alternatives– PCB signal integrity– Reliability of PCBs, components/cables– Product safety considerations, particularly in cables

• Commercialization of alternatives is inadequate today– Raw material suppliers can only support low volumes, not the overall industry– Halogen-free PCBs are <10% of the global market today – need time to scale

• Environmental, health and safety assessment of alternatives– PCBs are fairly well understood but not other materials– We aren’t just changing flame retardants but complete resin systems including

base resins, flame retardants, additives, fillers, etc – all material changes mustbe understood!

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Summary

• Regulatory and market-based requirements are increasing with respectto BFR/CFR & PVC/phthalate content in electronics

• BFR/CFR & PVC-free alternatives must be carefully evaluated to ensureperformance criteria can be met

• No “drop-in” replacements

• BFR/CFR & PVC reduction is optimized by integrating commercially-available alternatives across mainstream products versus a “100%BFR/CFR & PVC-free” boutique product

• Opportunity for industry to develop commodity-level transition roadmaps(PCBs, components, cables, etc) to maximize overall reductions

• Dell encourages participation in various industry projects (iNEMI,HDPUG, IPC, etc.)

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THANK YOU

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Industry BFR/PVC-Free Projects(there may be others)

Project Title ProjectChair(s)

Key Objectives Link for MoreInformation

ExpectedCompletionDate

US EPA - FlameRetardants in PrintedCircuit Boards

EPA Identify and evaluate commerciallyavailable flame retardants in FR-4 printedcircuit boards and their environmental,human health and safety andenvironmental fate aspects.

http://www.epa.gov/dfe/pubs/projects/pcb/index.htm

Finalize reportand publicize theresults – 2009

iNEMI HFR-FreeLeadership Project

Intel (Dell isa keyparticipant)

Assess the feasibility of a broadconversion to HFR-free PCB materials.Initial activities will focus on two primaryareas: HFR-free signal integrity and PCBmaterial development.

www.inemi.org Initial resultsexpected in early2010

iNEMI PVCAlternatives Project

Dell Conduct a cradle-to-grave environmentallife cycle assessment (LCA) comparingPVC and PVC-free alternatives for powercord applications.

www.inemi.org Resultspublished in2010

HDPUG –BFR/CFR/PVC-FreeCables

Dell Assess a broad range of BFR/CFR/PVC-Free materials for different cable and wireapplications.

www.hdpug.org Results andpublicationexpected bymid- 2010

IPC/JEDEC – Halogen-Free Subcommittee (J-Std 709)

Dell / Intel Develop a new halogen-free standard(define maximum concentration values forhalogens across a variety of applications,not just PCBs)

www.ipc.com JEDEC standardpublished in late2009.