1. Green Trends and Innovations in the Electronics Industry April 2012 Albert Tsang, Dell Environmental Affairs

2. 2 Environmental Affairs Preferable Materials Resource Conservation Energy Efficiency Priorities Drives benefits for customers and the environment in 3 key areas: – Energy Efficiency – compute more, consume less – Preferable Materials – eliminate harmful substances, supports responsible recycling – Resource Conservation – recyclable products & use of recycled content materials Over 7M lbs post- consumer recycled plastics since 2008 Energy Smart servers save customers more than $3B since 2005 Eliminate harmful substances ahead of regulations Design for Environment - DfE Preferable Materials – 3 tenants Precautionary Principles Restricted Substance program Avoid the use of substances of concern Prohibit supplier use Viable alternatives Legal & Regulatory Requirements EU RoHS China RoHS EU REACH US CPSIA Environmentally- Preferable Materials Initiatives BFR/CFR/PVC reduction Arsenic reduction Mercury reduction Lead free Servers

3. Green Trends

4. 4 Environmental Affairs Areas Targeted by the Electronic Industry Arsenic Mercury Phthalates BFR/PVC Biobased Plastics Transition

5. 5 Environmental Affairs Arsenic, Mercury and Phthalates Arsenic reduction – Glass on all notebook displays – Encourage the reduction in GaAs (ICs, diodes … ) Mercury reduction – Backlights in displays to LED – Batteries Phthalates – DEHP, DBP, BBP phthalates – Other phthalates

6. Biobased Plastics

7. 7 Environmental Affairs Traditional Plastics The most popular housing material for laptop computers at this time is a mixture of polycarbonate (PC) and acrylonitrile butadiene styrene (ABS), with the typical blend composed of 60-70% PC and 20-30% ABS with the remaining fraction (typically about 10%) composed of additives. By weight the housing of a Notebook weights about 30%. Mechanical properties such as stiffness and strength are impacting design flexibility. PC/ABS is limited in thickness reduction to ~0.8mm. Below this it loses its UL94-V0 flammability rating. Alternative materials include Mg and aluminum alloys, carbon fiber materials and high performance polyamides (PAs).

8. 8 Environmental Affairs Biobased plastics characteristics PC/ABSMg AlloyBioplastic Blends (PA) CO2 footprint--+ Flowability--+ Thickness--++- Flexural strength---+ Flexural modulus--++ Impact--++ What are Biobased Plastics? – A form of plastic derived from renewable biomass sources rather than petroleum Advantages: – Sustainable Product from Renewable Resources – Lower Carbon Footprint – Independent from petrochemical industry

9. BFRs / PVCs

10. 10 Environmental Affairs BFR/PVC-Free Commitment By the end of 2011, all newly introduced Dell personal computing products will be BFR and PVC free 1, as acceptable alternatives are identified that will not compromise product performance and will lower product health and environmental impacts. Dell’s commitment and approach will continue to be balanced in both how we evaluate products and deliver on customer needs to effect the most change and drive maximum positive impact 1 Dell will adopt the “BFR/PVC-free” definition as set forth in the “iNEMI Position Statement on the ‘Definition of Low-Halogen’ Electronics (BFR/CFR/PVC-Free).” Plastic parts contain < 1000 ppm (0.1 percent) of bromine (if the Br source is from BFRs) and < 1000 ppm (0.1 percent) of chlorine if the Cl source is from CFRs or PVC or PVC copolymers. Service parts after purchase may not be BFR/PVC-free.

11. 11 Environmental Affairs BFR/PVC Profile of a Typical Notebook Once chassis plastics were converted, only 20% of the remaining components contain BFR & PVC. – Chart shows total weight of component. Only a small fraction of that weight is BFR or PVC.

12. 12 Environmental Affairs Chassis Plastics: The Most Impactful Place to Start (2002) Prohibited PVC in chassis parts > 25g (2002) Prohibited PVC in chassis parts > 25g (2003) Added BFR to restriction (2003) Added BFR to restriction (2004) Expanded to include all chassis plastics regardless of size (2004) Expanded to include all chassis plastics regardless of size Today From 2003 to the present, Dell shipped over 61M pounds of BFR and PVC free plastics in OptiPlex products alone. That’s almost 70 times the weight of a fully loaded 747- 400 jet airliner. Today From 2003 to the present, Dell shipped over 61M pounds of BFR and PVC free plastics in OptiPlex products alone. That’s almost 70 times the weight of a fully loaded 747- 400 jet airliner.

13. 13 Environmental Affairs Test Case: G2210 G2410 The E2210 is a standard product with a similar technical feature set, but with out the green features. Sales of the G2210 were ~20% of the E2210. This indicates only certain customers were willing to pay for green features 1 PVC/BFR/CFR-free cables available only in North America, Japan and EMEA (excluding Israel) Slim, Elegant and Environmentally Conscious Power-saving Features: - Ambient Light Sensor - PowerNap - Dynamic Dimming - less than 0.15W energy consumption in standby/ sleep mode Power-saving Features: - Ambient Light Sensor - PowerNap - Dynamic Dimming - less than 0.15W energy consumption in standby/ sleep mode Made from environmentally preferable materials: - External chassis made from less than 25% post-consumer recycled materials - Arsenic-free glass and mercury-free LED backlight - Halogen-free monitors and cables 1 - Environmentally preferable packaging uses recyclable corrugated cardboard instead of expanded polystyrene foam Made from environmentally preferable materials: - External chassis made from less than 25% post-consumer recycled materials - Arsenic-free glass and mercury-free LED backlight - Halogen-free monitors and cables 1 - Environmentally preferable packaging uses recyclable corrugated cardboard instead of expanded polystyrene foam

14. 14 Environmental Affairs Where it counts most – Mainstream Products NEW Eco-Kit configurations on 990 SFF NEW Eco-Kit configurations on 14” Dell EcoKit configurations for Latitude and OptiPlex 100% BFR/CFR/PVC Free configuration (wall to mouse) Contains at least 10% post consumer recycled plastic in the chassis enclosure (OptiPlex Desktops) E-Star 5.0 and EPEAT Gold Rated Shipped in 100% recyclable materials Offered with services such as Dell’s Asset Recovery and Carbon Offset programs

15. Thank you