Xerox Exceeds Greenhouse Gas Reduction Goal Six Years Early; New Target Aims for 25 Percent Cutback by 2012

Business Wire, Dec 3, 2007

* The news: Xerox cuts greenhouse gas emissions by 18 percent, well exceeds target set for completion in 2012.

* How Xerox did it: Company-wide effort included driving fewer miles, sound energy management, new manufacturing technologies and more efficient heating and cooling equipment.

* What it means: Xerox saves on energy costs, plans for further reductions.

NORWALK, Conn. -- Reflecting a company-wide commitment to environmental stewardship, Xerox Corporation (NYSE: XRX) has already exceeded its 2012 greenhouse gas (GHG) emission reduction target and is upping its goal by more than 100 percent.

With an 18 percent reduction in greenhouse gas emissions since 2002, Xerox topped its 10 percent reduction target and is now boosting its goal to a 25 percent decrease by 2012. In addition to preventing the emission of 87,000 metric tons of carbon dioxide in 2006, the equivalent of taking more than 18,000 cars off the road, Xerox's GHG reduction program saved the company $18 million last year.

The results were validated by the U.S. Environmental Protection Agency and fulfill Xerox's commitments for participation in the EPA's Climate Leaders program. Achieving the reduction required Xerox to invest in equipment and process upgrades, but the company expects to reap long-term financial and environmental benefits.

"Long before it was popular to do so, Xerox ranked sustainability high on its list of priorities and led the industry in innovative ways to reduce waste and conserve energy. This deep knowledge, along with our well-defined processes, contributed to our success in exceeding GHG reduction targets six years ahead of our goal," said Patricia Calkins, vice president, Environment, Health and Safety for Xerox. "Our long-term experience has shown us that when we act in ways that benefit the environment, we make sound business decisions that not only benefit Xerox but also our customers and shareholders."

How Xerox is doing it

Xerox joined the EPA Climate Leaders program in 2003 and originally committed to cutting greenhouse gas emissions by 10 percent from the baseline year of 2002. Analyzing its GHG emissions, Xerox found they were nearly all associated with energy use - indirect emissions from purchased electricity and steam and direct emissions from combustion of fossil fuels like natural gas and from burning gasoline and diesel fuels from vehicles, including the fleet of cars and trucks used by sales and service employees. To meet its greenhouse gas reduction target, it launched a company-wide energy reduction program called "Energy Challenge 2012."

The projects implemented resulted in significant greenhouse gas reductions:

* 24 percent reduction in GHG emissions from use of company vehicles.

* 27 percent reduction of GHG emissions associated with burning natural gas.

* 13 percent reduction in GHG emissions from electricity use.

Not only did the conservation efforts help the environment, they also helped Xerox save money. Energy consumption during the period declined by 21 percent, driven by a 12 percent reduction in electricity use, a 27 percent reduction in natural gas purchases, and a 30 percent reduction in gasoline and diesel fuel consumption. According to Calkins, Xerox's energy expenses last year would have been 21 percent higher had it not been for its conservation measures. As a result the company saved $18 million in 2006.

With its original target now met, Xerox has set a tough new goal that will drive performance for the next stage of its GHG reduction program and will spur additional GHG innovation. The company aims to reduce emissions by 25 percent by 2012 from the 2002 baseline year.

Smart energy management

Xerox believes its existing energy-saving initiatives offer opportunity for further GHG reduction, making it possible to step up the 2012 goal. Some of these initiatives include:

* Xerox's biggest single energy use is producing supplies such as toner. Xerox is increasingly designing products to use its new EA toner, which is grown by a chemical process and uses 25 percent less energy than traditional toner made by the grinding method. This year, the company opened the first EA toner plant in the U.S., which was designed for optimum energy efficiency. For conventional toner, which does require grinding, Xerox has developed an additive that increases efficiency and reduces energy demand up to 22 percent per pound of toner.

* The 15,000 Xerox employees responsible for technical support of Xerox products at customers' workplaces are driving less because of increased reliability of digital systems like multifunction products as well as remotely diagnosing technical issues. In the U.S. alone, technical service engineers drove 34 million fewer miles in 2006 than in 2002, resulting in a reduction of 26,000 metric tons of greenhouse gases. It would take more than 666,000 tree seedlings growing for 10 years to store the carbon from these GHG emissions.

* To save energy, the company is upgrading some infrastructure systems in manufacturing and office locations worldwide. For example, it replaced aging boilers and industrial air conditioners in El Segundo, Calif., made lighting improvements in Cincinnati, consolidated boilers in Oklahoma City, and replaced gas heaters in Mitcheldean, U.K.