2017 Legacy of Good slides
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Annual update on Dell's Legacy of Good Plan.
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2017 Legacy of Good slides
- 1. 2017 update on progress Building a Legacy of Good
- 2. Building a Legacy of Good We are committed to driving human progress by putting our technology and expertise to work where it can do the most good. Supply Chain Environment People Communities Driving transparency, accountability and continuous improvement across a responsible supply chain. From innovative design to end-of-life recycling and everything in between, we keep the environment in mind. Attracting the best talent, building diverse and inclusive teams, and winning together. That’s the Dell way. We apply our funding, technology, and volunteered expertise to help communities grow and thrive. • Customer tours • Supplier audits + training • Reducing our impact • Energy efficiency • Recycling • Employee resource groups • Flex work programs • Youth learning programs • Pediatric cancer care Learn more at legacyofgood.dell.com
- 3. Supply Chain
- 4. Greater transparency in our supply chain builds trust First-of-its-kind tour allows customers to interact with workers and experience their working conditions Green Choice Alliance’s Corporate Information Transparency Index Ranked #2 among IT and #3 for all industries
- 5. Supply chain SER performance Select key performance indicators for FY17 Number of initial audits conducted 218 Number of follow-up/closure audits conducted 238 Percentage of high-risk facilities audited 90% Percent of priority findings closed or downgraded 81% Percent of audit findings closed 79% Number of participants attending capability building programs 1,050 Percentage of workers compliant with 60-hour work week 91% Percentage direct materials spend represented by suppliers reporting GHG emissions to CDP 90% Visit dell.com/supplychain for the latest
- 6. Human rights in our supply chain Weekly Supply Chain Monitoring (annual average) FY16 FY17 No. workers monitored 168,268 190,107 Max. number of facilities monitored 117 121 Percent of workers compliant with 60-hour workweek 88% 91% Percent of workers with at least 1 day of rest per week 89% 90% • Executive Review Board reviews all findings related to forced/child labor • New worker hotline encourages speaking up • WeChat tool helps us engage directly Visit dell.com/supplychain for the latest
- 7. Environment
- 8. 8 of Y Turning the tide on ocean plastics We will turn 8 tonnes of ocean- bound plastic into packaging for the XPS 13 2-in-1 this year, with a goal of using 10x that amount by 2025.
- 9. 9 of Y Energy efficiency $380 millionIf you tried to do this year's computing load with last year's technology, it would require $380 million more worth of electricity 54%Reduced portfolio energy intensity FAST
- 10. Designing out waste: Dell + zero-waste manufacturing 99%Manufacturing waste diverted from landfills
- 11. 11 of Y 78countries & territories Free consumer recycling of any brand 49countries & territories Asset Resale & Recycling Services 1.8 Billion pounds We have recovered a cumulative total of 1.8 billion pounds since 2007 and have achieved 88% of our goal to collect 2 billion pounds of e-waste by 2020. Global Takeback Services Learn more at legacyofgood.dell.com 83countries & territories World’s largest recycling program
- 12. Driving human progress Charitable Giving and Volunteering
- 13. Technology Access Youth around the world have better access to technology and brighter futures with Dell’s Youth Learning programs. Our goal is to help 4 million people directly and 12 million people indirectly by 2020. 2.3 million kids 71 strategic non-profit partners 17 countries with key Youth Learning partnerships 65% of kids in our STEM-related programs are girls
- 14. 14 of Y Technology Access 2X to 3X more effective * Results from pediatric cancer trial results using precision medicine compared to Phase I trials without it. With Dell’s funding, technology and expertise, TGEN is helping more families, with better results, and now expanding it’s work to more childhood and adult rare diseases.
- 15. 15 of Y Volunteerism 3.3 Million hours 821,000 hours of volunteer time in FY17 2X the impact Dell will match employee donations up to $10K / year, for the causes they support #ShoreUp 55 events and 7,000 volunteer hours for clean-up events Our team members believe in giving back to their communities. Since 2013, they’ve donated 3.3 million hours of their time to the causes that matter most to them. Our goal is to reach 5 million hours by 2020.
- 16. Our People
- 17. Our People Award winning culture Thanks to the hard work and dedication of our team members, Dell: • Garnered Employer of Choice awards in over 20 countries • Ranked #6 as Best Company for Flexible Jobs by Flexjobs • Earned a spot on the World’s Most Ethical Companies list by Ethisphere – for the 3rd year in a row … And many more
- 18. Join us in building a Legacy of Good legacyofgood.dell.com @Dell4Good legacyofgood@dell.com
- 19. 19 of Y
- 20. Backup • High-level Dell Technologies slides • ABN AMRO and technology donations: customer story • IOT and sustainability: customer story • REAP: partnering to improve rural education in China
- 21. 21 of Y The world’s largest privately controlled technology company in numbers: $72B revenue1 Serving 98% Fortune 500 ~138,000 team members 30,000 full time customer services and support team members 180 countries 1 Pro Forma revenue for the fiscal year ended January 29, 2016 as filed in the Form 8-k on Sept. 9, 2016
- 22. 22 of Y Our purpose We create technologies that drive human progress © Copyright 2017 Dell Inc.22
- 23. Dell’s Asset Resale & Recycling Services helped Dutch bank ABN AMRO donate more than 1,200 systems to 80 schools – fostering computer literacy and empowering 10,000+ students in Amsterdam public schools. 10,000+ students Global Takeback Services Learn more at legacyofgood.dell.com
- 24. 24 of Y IOT drives net positive results in precision agriculture Improve crop yield by 25% on the same fields
- 25. We’re working together to provide online computer- assisted learning to 1 million rural/migrant Chinese students by 2020
- 26. Building a Legacy of Good FY17 highlights Saving customers $380 mil in electricity costs 99%Manufacturing waste diverted from landfills 2.3 million youth2-3x more effective in clinical trials Dell Genomic Data Analysis Platform ofallplasticparts inproductsmadewith recycledcontent 35%with better access to technology Learn more at legacyofgood.dell.com
Editor's Notes
- What kind of legacy are you working on? At Dell, we are committed to building one that drives human progress – that lifts people up, giving them the opportunity to grow and thrive. We want to leave the environment better than we found it; ensure our team members share in a winning culture that prioritizes ethical behavior; and help our customers apply technology in ways that makes the world better. That will be our legacy. When we think about our commitment, we break it into four categories: AN ETHICAL SUPPLY CHAIN We know our customers want to work with companies that share their values. We also understand that – more and more – customers expect to be able to see how those values are put into action within a supply chain At Dell, we believe that transparency drives accountability and we are committed to acting openly and responsibly. We offer customer tours so they may meet our suppliers’ workers and experience their lives We also conduct regular audits based on the industry-wide standards set by the Electronic Industry Citizenship Coalition’s Code of Conduct and if issues are identified, we work with suppliers to correct them and provide training to prevent issues from occurring again. ENVIRONMENT When it comes to the environment, we take a systems’ level approach, looking for ways to minimize our impact at every step. Our innovative design and sourcing models have helped us become a leader in the shift to a regenerative economy based on circular principles. We are also a leader in energy efficiency; nearly all of our eligible products qualify for ENERGY STAR We also have the largest technology take-back program, with operations in 83 countries and territories. We even put some of the plastics recovered back into 91 of our products. PEOPLE To be an innovative, forward-thinking company that delivers smart solutions, we need to attract the best talent We believe diversity is a strength, providing contrasting opinions, new ideas and a healthy culture that looks and sounds like our customers To nurture that culture, we offer flexible work options – ensuring that people can do their best work wherever and whenever it suits them best COMMUNITIES We are all part of local communities. Technology has a special role to play – it is enabler of human progress. Access to that technology should not be a barrier for groups to grow and thrive. Our Youth Learning programs are designed to help bridge this digital divide and help underserved youth get the skills and access they need to succeed in the 21st century We also work with researchers to enable the “precision” in precision medicine – helping drive much needed improvements in pediatric cancer care. LEARN MORE To learn more about the many ways Dell is building a Legacy of Good, visit legacyofgood.dell.com.
- We hold our suppliers to the same high social and environmental responsibility standards we set for ourselves. We are committed to driving transparency, accountability and continuous improvement throughout our global supply chain.
- We recognize that now more than ever customers are interested in how their products are made. At Dell, we hold our suppliers – and ourselves at our own facilities – accountable to the high standards outlined in the Electronic Industry Citizenship Coalition’s (EICC’s) Code of Conduct, which covers labor, environment, ethics, and health and safety. This industry-wide standard means no matter which participating company a supplier works for in the electronics industry, the base expectations are the same. We have greatly expanded the data we provide at dell.com/supplychain to help customers understand the environment in which our products are made. For select enterprise customers, we also created a tour of manufacturing facilities in China. This allowed customers to interact with workers and better understand working and living conditions – as well as how industry-wide issues play out. The success of this program has encouraged us to plan additional tours in the future. And we were very excited when The IPE Green Choice Alliance ranked us #2 among tech companies (and #3 for all industries) on their Corporate Information Transparency Index.
- For a full run-down of key performance indicators, see dell.com/supplychain and select the progress tab. All high-risk facilities in our supply chain must undergo a full, initial audit every 2 years. We audit all Dell and Dell EMC facilities regardless of risk level, along with select medium- and low-risk facilities. Last year we audited 90% of high-risk facilities and conducted a total of 218 initial audits. We require suppliers to submit corrective action plans to address and close audit findings within EICC-defined timelines. Once a corrective action plan is complete, official “closure audits” are used for confirmation and our internal accountability metrics. Last year we had 238 follow-up or closure audits. We continuously monitor all open findings until they are confirmed closed. These are ongoing processes, so data is a snapshot. During the first quarter of our FY18, 81% of priority findings were officially closed through a closure audit (and remote verification in some cases) or downgraded from a priority issue. Overall, in that same snapshot, 79% of all audit findings had been closed. To drive improvements with our suppliers, we offer capability-building programs. This includes six rounds of supplier networking sessions, quarterly new supplier orientations, EH&S and HR capability trainings, and both our SMaRT Library training modules and EICC e-learning modules. The 1,050 participants also served as “trainers” for 50-100 others within their own organization. We estimate the ultimate reach of our trainings to be approximately 7,000 workers. Working hours continue to be a challenge – not just for Dell, but for the electronics industry in general. We’ve made excellent progress in ensuring compliance with the EICC standard 60-hour work week. [SEE OTHER SLIDE FOR DETAILS] And recognizing that emissions in our supply chain form an important part of the overall footprint of our products, we ask our suppliers to report their greenhouse gas emissions to the CDP (formerly the Carbon Disclosure Project – it is a central data clearinghouse for GHG information). Last year we achieved an industry-leading response rate of 95.4% of suppliers, which represented 90% of our direct materials spend. This helped us earn an A- grade from CDP. In aggregate, our suppliers reduced 6.1 million tons of CO2 – equal to $606 million in savings.
- Dell supports and respects the principles proclaimed in the Universal Declaration of Human Rights. These rights are of utmost importance to us, to our customers, and to the communities in which we live and work. We are committed to upholding the human rights of workers throughout our supply chain, and to treating them with dignity and respect. We monitor working conditions at our supplier facilities and partner with suppliers to address any issues we identify. The most common finding last year related to labor was working hour non-compliance. As you can see, we’ve increased our monitoring – and our suppliers’ compliance. We’ve also put tools in place to ensure human rights are respected. Our Executive Review Board, comprised of Dell executives across procurement and operations, review all supply chain audit findings and allegations related to forced and child labor. We have also extended a worker hotline at five of our large supplier facilities to enable workers to contact Dell without having to go through their supervisors. This allows them to speak up independently. Also, after surveying workers to understand interests and motivations, we set up a WeChat platform (an IM application) to directly engage with workers based on feedback and to share articles on topics targeted to enriching worker careers and lives.
- Environmental responsibility is about more than creating an eco-friendly product or initiative. It’s about incorporating sustainability into everything we do, while using our technology and expertise to innovate on behalf of our customers, our communities and the planet.
- Every year, 8 million tons of plastics enter our seas. Dell wants to help break this cycle by keeping plastics in the economy and out of the ocean. To those ends, we are processing plastics collected from beaches, waterways and coastal areas and turning them into a new packaging system for the XPS 13 2-in-1 laptop globally. These ocean-bound plastics are mixed with other recycled-content plastics for a tray that is made entirely from recycled materials. And as HDPE, they carry the #2 recycling symbol, making them recyclable in most recycling programs. Our use of recovered ocean-bound plastics is a perfect example of circular design – taking a waste material and bringing it back into the economy. While we recognize this is a small amount of material today, our goal is to scale the project and get other manufacturers to join us. We are working toward a global coalition to drive the use of reclaimed ocean-bound plastics and we have committed to the U.N. that, by 2025, we will use at least 160,000 pounds of ocean-bound plastics per year ourselves. For more information, visit www.dell.com/oceanplastics
- Customers consistently tell us that energy efficiency is important to them. Whether they’re trying to squeeze out another 15 minutes on their laptop battery or they’re trying to control PUE across a dozen data centers, how your technology uses energy is important – to your productivity, to your environmental goals and to your bottom line. Since 2011, we’ve reduced our product portfolio’s average energy intensity by 54 percent. Nearly all eligible products qualify for ENERGY STAR. And with fresh air cooling, fully automated storage tiering, and virtualization-friendly products, we’ve got energy efficiency covered. To put our efforts into perspective, if you took all the computing products we sold this year and tried to run them with last year’s energy intensity benchmark, it would cost an extra $380 million – a significant savings for a one-year improvement.
- Managing resources efficiently and effectively is important to all of us. In our manufacturing facilities, we pride ourselves on using – and reusing – materials as efficiently as possible. This past year, we kept 99% of the waste we generated out of landfills. It’s not zero waste, but it’s awfully close.
- By 2018, the amount of e-waste generated worldwide is expected to be 49.8 million tons with an 4-5 percent growth each year. But did you know that only 29% of it is actually recycled properly? The rest is handled through informal processes, harming our environment and health throughout communities. Dell wants to protect the environment and our health by responsibly recycling and diverting e-waste from landfills. Dell has the world’s largest recycling program with services in more than 83 countries and territories, and we have set a goal to recover 2 billion pounds of used electronics by 2020. In 2016, Dell recovered 177 million pounds (80.3 million kilograms) of used electronics in FY17. This includes heritage EMC volumes tracked for Q4 only. Since our baseline year of FY08, we have recovered a cumulative total of 1.8 billion pounds. We have achieved 88% of our 2020 goal and our estimates show we are on track to meet our target. We offer Free Consumer Takeback Services throughout 78 countries and territories, making it easy for customers to trade-in, donate or responsibly recycling their used electronics of any brand for free. In addition, Dell provides business customers responsible and secure commercial recycling solutions in more than 49 countries and territories through our Asset Resale and Recycling Services. This service handles everything including pick-up logistics, data destruction, resale and recycling; with custom options to donate their retired equipment to help support additional corporate responsibility goals a company might have. Did you also know that plastics collected through our Global Takeback Programs are recycled, through our closed-loop process, and used to make new computer parts in more than 91 Dell products, fostering a circular economy. For more information around Dell’s Global Takeback Programs, please visit dell.com/recycle.
- As a global technology provider and corporate citizen, we see firsthand how a lack of access to quality education and technology can prevent people from reaching their full potential. We apply our technology, expertise, funding and volunteerism toward helping communities overcome challenges and thrive.
- We are committed to attracting the world’s greatest talent; building diverse, inclusive teams; and delivering breakthrough performance for our team members, businesses and customers. We do this by embodying the shared values outlined in our Culture Code: customers, winning together, innovation, results and integrity.
- At approximately $72 billion in revenue (Pro Forma revenue for the fiscal year ended January 29, 2016 as filed in the Form 8-k on Sept. 9, 2016), Dell Technologies is “The World’s Largest Privately-Controlled Technology Company” … bar none. If you look at the Fortune 500 for comparisons, in rough numbers: Microsoft - $94 billion IBM $83 billion Intel -$55 billion HPE - $52B (HPQ = $50B) Cisco - $49 billion Others with somewhat more diversified business models: Apple – $233 billion Amazon.com - $107 billion To give you a sense for the company’s scope and scale. Serving 98% of the Fortune 500 Approximately 145,000 team members 30,000 full-time customer services and support team members 180 countries We are also leaders in CSR initiatives, corporate giving, support for diversity in the workplace.
- Our purpose is to create technologies that drive human progress. We believe that this progress lives at the intersection of technology and humanity, and that our role is to bring innovation to people everywhere so they can thrive in the digital economy. We make education better. We drive down the time it takes to diagnose a patient in a life-threatening situation. We impact governments, businesses, consumers, society Our purpose is grounded in four principles that define how we’re different. The breadth and depth of the technologies we provide are truly best-in-class. Every one of our brands is recognized as a leader, innovator or both. We’re visionaries—but only in the most practical sense. When we innovate, it’s because we understand that the results of our innovation enable more people and organizations to access the technology they need. Customers are the foundation for everything we do. It is everyone’s job to serve and support them. Period. We are big, small and open—a unique combination different than any other company in our industry. We innovate and move like a startup, but can execute and deliver on a global scale like a large enterprise. Our businesses and brands see the world the same way; they are strategically aligned—yet offer choice.
- Our Global Takeback Services are a lot more than just recycling. The Asset Resale and Recycling Services has expanded its custom IT donation service globally to give business customers a simple way to meet their sustainability and corporate responsibility goals. In the case of Dutch customer ABN AMRO, we helped them donate more than 1,200 systems to 80 schools throughout Amsterdam to foster computer literacy and a coding curriculum to more than 10,000 students in the public education community. After collecting and processing ABN AMRO’s used equipment, we furbished select computers and loaded the systems with the educational software for donation. The remaining systems not donated are then resold, with proceeds used to fund the donation program. This program has now been rolled out as an option to all enterprise customers. For more information on the Asset Resale and Recycling Services, visit dell.com/assetresaleandrecycling.
- If you’re an avocado farmer (and chances are, you’re not, but you might like guacamole), then you do not want to experience laurel wilt. It’s a disease and if it is in your grove and you don’t catch it quickly, you might have to burn everything to the ground. Farmers traditionally have relied on spot checking via helicopter, trying to identify trees that might be suffering – and hoping it’s only a few. Now imagine if you could send up a drone – maybe weekly instead of 2 or 3 times a year – and have that drone map the entire avocado grove. Using sensors and processing the image data, it could identify from color analysis trees that are diseased. Now imagine you that same drone could also identify crops that need more water or fertilizer, and the drone could automatically spot-treat as needed? This is not the future – it’s the Internet of Things and our customer Animusoft is making it happen today with their Alive . In fact, Animusoft’s precision agriculture platform built on Dell technologies can scan for other crop performance indicators like areas struggling due to low water use or fruit that is ready for picking, helping farmers increase yields by up to 25% while reducing water and fertilizer waste. All this minimizes the farmer’s environmental impact while driving economic benefit.
- Shrinking the rural-urban educational divide in China: Nearly 75% of 10- to 15-year-olds in China live in rural areas or suburban migrant communities. Those communities, if they were a country, would be the fourth most populous on the planet. Unfortunately, those young people face academic challenges their urban peers do not encounter. Dell is partnering with Stanford’s Rural Education Action Program (REAP) on a computer-assisted learning program that teaches math, Chinese and English in an engaging way. The program is already increasing test scores and we have since partnered with Ankang University to introduce an online version – which has had an even bigger impact. Our goal is to scale the reach of the program to 1 million students by 2020.
- Dell is committed to driving human progress by putting our technology and expertise to work where they can do the most good for people and the planet. Halfway to our 2020 goals, we remain committed to creating shared value – win/win approaches to our business that solve customer technology challenges while benefitting society and the environment. Here are some of our highlights from the past year: Near zero-waste manufacturing: This past year, 99% of manufacturing waste was diverted from landfills. This is just one of the ways we are responsibly managing the resources we use. $380 million savings from energy efficiency: If you tried to do this year’s computing load with last year’s technology, it would require an additional $380 million more worth of electricity. We’ve seen similar savings each year, and we’ve reduced the average energy intensity of our product portfolio by 54% since 2011. World’s most ethical companies: We are proud to once again be honored by the Ethisphere Institute as one of their World’s Most Ethical Companies (fourth year in a row). While mergers and acquisitions are notoriously difficult and stressful, the shared values made combining Dell with EMC in September 2016 a smooth transition built around a core culture that we’ll build together. Dell Genomic Data Analysis Platform: We provide time, funding and technology to the Translational Genomics Research Institute to help them democratize precision medicine. At the center of this work is the Dell Genomic Data Analysis Platform – an HPC combined with a cloud-based portal for researchers to access the data. In addition to cutting the time to analyze sequenced genomes to less than six hours, early studies show this big data approach is 2-3 times more effective than standard phase 1 clinical trials without molecular-guided therapy. Youth Learning - 2.3 million and counting: Access to education and technology is not a luxury, but a necessity. That’s why we work with non-profit organizations around the world to close the learning gap and give young people the power to discover better possibilities. Since 2012 we’ve reached 2.3 million with creative programs like our solar-powered learning labs or efforts with the Rural Education Action Program (REAP) to provide computer-assisted learning to rural and migrant Chinese students. Use of recycled-content plastics: We’ve long used recycled-content plastic and now we are pairing up our industry-leading technology take-back programs with our manufacturing and turning the recycled plastics back into new parts for 91 different products. More than 35% of all plastic used in Dell client systems is recycled content now (by weight). We’ve also successfully piloted the use of reclaimed carbon fiber and are looking to expand to other materials as well. This innovation also extends to our work with packaging – having created packaging from bio-based materials like bamboo, grown as mushrooms in forms, or sourced from ocean plastics.