Sustainable Product Development Neopost goes GREEN NeoGREEN Neopost Technologies – Confidential – May 2010 - R. van den Berg

Contents Introduction Case study: DS-70 Eco-design Strategy Neopost Technologies – Confidential – May 2010 - R. van den Berg

Introduction Environmental trend concerns Neopost too: Our market and investors ask for green products Authorities migrate to (100%) sustainable purchasing Increasing requirements from regulations (RoHS, WEEE, …) ISO certification requires a secured EcoDesign process Pitney Bowes is promoting their environmental awareness Neopost Technologies – Confidential – May 2010 - R. van den Berg

What is Sustainable Development? Company level, integrating 3 aspects: Fair working conditions Meet the needs of the present without compromising the ability of future generations to meet their own needs Meet market needs Neopost Technologies – Confidential – May 2010 - R. van den Berg

And Sustainable Product Development? SPD = EcoDesign Concerns product development  project level: takes environmental impact into account in design phase considers complete lifecycle of the product concerns all disciplines involved in a project aims for a balance between product requirements Neopost Technologies – Confidential – May 2010 - R. van den Berg

Balancing requirements Technical feasibility Environment Costs SPD Customer requirements Neopost Technologies – Confidential – May 2010 - R. van den Berg

Why do we need SPD? SPD Goals Decrease environmental impact Neopost has by putting products to the market Increase awareness on what this impact means & what we can do to limit it Make conscious choices in projects SPD is about taking responsibility, as a company and as project member to limit any negative impact on the environment Why do we need SPD? Not only: We should comply to eco-regulations and anticipate to future regulations & (even local) policies, in order to secure our market position But also: We need to take responsibility as a company to have no negative environmental impact Neopost Technologies – Confidential – May 2010 - R. van den Berg

Why do we need SPD? Eco-design @ Neopost Corporate Social Responsibility CSR Steering Committee (P.Boulanger) SBD Sustainable Business Development SPD Sustainable Product Development site related product related Marketing, R&D, Purchasing, Manufacturing, Supply Chain, … Document Systems Mailing Systems R. van den Berg G. Moenne-Loccoz HRM QHSE Opco’s Why do we need SPD? Not only: We should comply to eco-regulations and anticipate to future regulations & (even local) policies, in order to secure our market position But also: We need to take responsibility as a company to have no negative environmental impact Coordination: Neopost Technologies – Confidential – May 2010 - R. van den Berg

Life Cycle Assessment DS-70 Determination of the environmental impacts along the life cycle of the product (from cradle to grave) Neopost Technologies – Confidential – May 2010 - R. van den Berg

Energy & Transport (service) 4 Stages in Life Cycle Raw material & Energy Emissions Manufacturing Raw material & Energy Emissions incl. production of raw material & transport from source / supplier to factory End of life Distribution Packaging & Transport Energy & Transport Emissions Use incl. servicing Emissions Energy & Transport (service) Neopost Technologies – Confidential – May 2010 - R. van den Berg

LCA DS-70 Conclusions (1/5) 1. LCD screen is large contributor Don’t use bigger than necessary Make sure screen can be easily removed at end of life START STOP Neopost Technologies – Confidential – May 2010 - R. van den Berg

LCA DS-70 Conclusions (2/5) 1. LCD screen is large contributor 2. PCB’s are relatively large contributors Minimize PCB size Make sure it can be easily removed at end of life Neopost Technologies – Confidential – May 2010 - R. van den Berg

LCA DS-70 Conclusions (3/5) 1. LCD screen is large contributor 2. PCB’s are relatively large contributors 3. Reduce total weight of machine Make parts not heavier & don’t use more parts than necessary Less use of resources Less transport Neopost Technologies – Confidential – May 2010 - R. van den Berg

LCA DS-70 Conclusions (4/5) 1. LCD screen is large contributor 2. PCB’s are relatively large contributors 3. Reduce total weight of machine 4. Energy consumption during use Reduce energy consumption when machine is NOT in operation: implement automatic Sleep Mode! automatic Neopost Technologies – Confidential – May 2010 - R. van den Berg

LCA DS-70 Conclusions (5/5) 1. LCD screen is large contributor 2. PCB’s are relatively large contributors 3. Reduce total weight of machine 4. Energy consumption during use 5. Transport & packaging Minimize transport by plane Minimize Volume & Weight of packaging Neopost Technologies – Confidential – May 2010 - R. van den Berg

Example: Energy Use (in Use Stage) Scenario 1: switch OFF after each job Scenario 2: only OFF during weekend Scenario 3: auto switch to Sleep Mode (OFF in weekend) very disciplined operator; not realistic Energy Use in 5 years Neopost Technologies – Confidential – May 2010 - R. van den Berg

Auto Sleep Mode Auto Sleep Mode can save (in 5 years): up to 90% on Energy Use 140 to 200 euro 300 to 400 kg CO2 (30% of total Carbon Footprint) 30% on Total Environmental impact Auto Sleep Mode will be implemented for all new projects in Drachten Neopost Technologies – Confidential – May 2010 - R. van den Berg

EcoDesign Strategy Neopost Technologies – Confidential – May 2010 - R. van den Berg

EcoDesign Strategy: targets for projects EuP DEEE Raw Material WNew< Wold SPWB new < SPWB old Regulation Compliant RoHS, WEEE, REACH, EuP click click Energy Standby mode < 0.5W Automatic click Packaging Vpackaging/Vproduct < 2.5 End-of-life Recovery rate > 75% click click Neopost Technologies – Confidential – May 2010 - R. van den Berg

What does EcoDesign Strategy mean? Key is that we start to measure Eco parameters in projects, which will improve awareness & making the right choices Running projects: 1. SPD team will explain this to projects 2. Projects do gap analysis Compare current project status to targets Report to SCM 3. SCM decides on what to do with Gap New projects: Comply to strategy GSM integrates it in Product Requirements R&D integrates it in Technical Requirements Neopost Technologies – Confidential – May 2010 - R. van den Berg

Info & Questions on SPD SPD on your local Intranet Ask Robert Hickey or René van den Berg r.hickey@neopost.com r.vandenberg@neopost.com Neopost Technologies – Confidential – May 2010 - R. van den Berg

Questions? Neopost Technologies – Confidential – May 2010 - R. van den Berg

Back Up Neopost Technologies – Confidential – May 2010 - R. van den Berg

Strategy #1: Compliance to regulations Eco-Regulations (WEEE, RoHS, EuP, REACH) Target is to comply to regulations that also apply to franking machines, copiers and printers, even if inserters are not explicitly mentioned (yet). Main impact for Product Design: Energy Use (EuP) End of Life (WEEE) Avoid use of dangerous material (RoHS & REACH) EuP WEEE click me! back RoHS REACH Neopost Technologies – Confidential – May 2010 - R. van den Berg

Strategy #2: Raw Material Wnew < Wold Reduce product weight - Use less material - Less transport weight cheaper SPCB new < SPCB old Reduce size of Boards - Use less copper back Neopost Technologies – Confidential – May 2010 - R. van den Berg

Strategy #3: Energy Use Standby mode < 0.5W Automatic Automatic Switch to Standby + report total energy use Measure Energy Use in each Mode: Run Mode Idle Mode Standby / Sleep Mode Off Mode Deliver Power Management scheme back Neopost Technologies – Confidential – May 2010 - R. van den Berg

Vpackaging/Vproduct < TBD for inserters Strategy #4: Packaging Vpackaging/Vproduct < TBD for inserters Minimize Volume & Weight of packaging Measure volume & weight of machine & accessories per box Measure volume & weight of box(es) back Neopost Technologies – Confidential – May 2010 - R. van den Berg

Strategy #5: End of Life End-of-life Recovery rate > 75% Company policy to comply to WEEE regulation Follows from Bill of Material SPD team supplies list with recovery rate per material N.B. Recovery rate for DS-70: 88% (85% Metal) May be a challenge for products with more plastics! back Neopost Technologies – Confidential – May 2010 - R. van den Berg

Regulations: WEEE Waste Electrical & Electronic Equipment Compulsory to put marking on machine We comply (since 2005) WEEE prescribes >75% recovery rate (=material recycling + incineration) Company policy to comply for new projects back Neopost Technologies – Confidential – May 2010 - R. van den Berg

Regulations: RoHS Reduction of Hazardous Substances Company policy to comply We comply (since 2006) back Neopost Technologies – Confidential – May 2010 - R. van den Berg

Regulations: EuP (Energy using Products) External Power Supplies Compulsory for all External Power Supplies we sell april 2010: < 0,5 W @ no load + efficiency > 85% april 2011: < 0,3 W @ no load + efficiency > 87% Standby & Off Mode Company policy to comply for all new projects Jan 2010: Standby / Off Mode < 1 W Jan 2013: Automatic switch to Standby / Off mode < 0,5 W back Neopost Technologies – Confidential – May 2010 - R. van den Berg

Regulations: REACH Registration, Evaluation and Authorization of CHemicals “Substances of Very High Concern” need to be registered by Nov 2010 if Q > 1000t / year (for some dangerous chemicals: registration if Q > 1t /year) Applicable to: Sealing Fluid / NeoSeal (we have a responsibility as producer) Chemicals used @ site (e.g. in manufacturing, cleaning) Check presence & quantities of SVHC list in our products Quantity & intended use need to be registered if on the SVHC list. Main actions foreseen (TBD): QHSE (check updates & registration) Purchasing (check supplier compliance, check presence of chemicals) back Neopost Technologies – Confidential – May 2010 - R. van den Berg

How can your department contribute to SPD? (1) Integration of SPD in design & product development process GOM Promotion / External communication IPSS Reduction of Service Visits (Remote Servicing / Helpdesk) reduces costs and environmental impact Purchasing Make sure our suppliers deliver RoHS & REACH compliant parts Check EcoDesign compliance for OEM components / modules Neopost Technologies – Confidential – May 2010 - R. van den Berg

How can your department contribute to SPD? (2) GSM Integrate SPD into Stakeholder Requirements Think about priority of EcoDesign for each product Consider position compared to competition Manufacturing Engineering Design for Disassembly Make sure different materials & components can be easily removed Supply Chain Management Minimize logistic movements in km x weight Ship rather than fly Example: Flying Dutchman (customization in US) Neopost Technologies – Confidential – May 2010 - R. van den Berg