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1 Microsoft Commitment to Environmental Sustainability Safety, Compliance & Sustainability Policies and Procedures
Title: Australia Packaging Covenant Action Plan for July 2010 – June 2014 June 10, 2011
Procedure No. N/A Rev. B
AUSTRALIAN PACKAGING COVENANT
ACTION PLAN FOR JULY 2010 – JUNE 2014
Microsoft Commitment to Environmental Sustainability Safety, Compliance & Sustainability Policies and Procedures
Title: Australia National Packaging Covenant Action Plan for July 2010 – June 2013 March 16, 2011
Procedure No. N/A Rev. A Page 3 of 17
2
Title: Australia National Packaging Covenant Action Plan for July 2010 – June 2013 June 10, 2011
Procedure No. N/A Rev. A
Contents
1 RECORD OF REVISIONS ............................................................................................... 3
2 EXECUTIVE SUMMARY .................................................................................................. 5
3 MICROSOFT HISTORY ................................................................................................... 6
4 MICROSOFT IN AUSTRALIA .......................................................................................... 6
5 SCHEDULE FOR PACKAGING REVIEWS ....................................................................10
5.1 New Products .............................................................................................................10
5.2 Existing Products ........................................................................................................10
6 MICROSOFT WORLDWIDE COMMITMENT TO ENVIRONMENTAL SUSTAINABILITY 10
6.1 Microsoft Sustainable Packaging Innovation ...............................................................11
6.2 Use of Recycled Content and Design for Recycling ....................................................12
6.3 FY 2010 Achievements ...............................................................................................12
6.3.1 Elimination of PVC from packaging ......................................................................12
6.3.2 Personal Computer Hardware Peripherals ...........................................................12
6.3.3 Xbox 360® Retail Package Improvements ...........................................................13
7 SUMMARY OF INITIATIVES IN THIS PLAN ..................................................................14
3 Microsoft Commitment to Environmental Sustainability Safety, Compliance & Sustainability Policies and Procedures
Title: Australia Packaging Covenant Action Plan for July 2010 – June 2014 June 10, 2011
Procedure No. N/A Rev. B
1 RECORD OF REVISIONS
Release
Letter Date Section Page
Summary of
Changes Author/Approver
A 03/31/2011 All All Initial Release
Joan Krajewski
General Manager of Safety,
Compliance and Sustainability
B 06/10/2011
Title
Page
2.0, 4.0
Update Title
Page, Update
Commitment
Approver;
Insert
packaging
materials and
formats used
by MS
Don Mattrick
Interactive Entertainment
Business (IEB) Management
President
Microsoft Corporation
4 Microsoft Commitment to Environmental Sustainability Safety, Compliance & Sustainability Policies and Procedures
Title: Australia Packaging Covenant Action Plan for July 2010 – June 2014 June 10, 2011
Procedure No. N/A Rev. B
Document Control
Standard Operating Procedure
Document Owner:
Joan Krajewski
General Manager of Safety, Compliance &
Sustainability
Approval: Don Mattrick
Interactive Entertainment Business (IEB) Management
President
Signature: On file in office of General Manager (GM)
Approval Date: 6/10/2011
Update Requirements: The GM or its designee shall maintain this procedure. This procedure must be
reviewed and approved annually. This document and its revisions shall remain current for no more than
one year from the approval date. The GM or its designee must retain a log of document history with this
procedure.
References
1.
Attachments
N/A
5 Microsoft Commitment to Environmental Sustainability Safety, Compliance & Sustainability Policies and Procedures
Title: Australia Packaging Covenant Action Plan for July 2010 – June 2014 June 10, 2011
Procedure No. N/A Rev. B
2 EXECUTIVE SUMMARY
Microsoft Corporation (Microsoft) has committed to continual improvement of environmentally sound
packaging by signing the Australia National Packaging Covenant (NPC) on March 25, 2009. We
continued our commitment to the now updated Australian Packaging Covenant (APC) by having signed
and submitted the APC Declaration form in August of 2010. By signing the Covenant we endorsed the
Environmental Code of Practice for Packaging that coincides with our corporate principles. At Microsoft,
we are committed to software and technology innovation that helps people and organizations around
the world improve the environment. Our goals are to reduce the impact of our operations and products
and to be a leader in environmental responsibility. We view this APC Action Plan (Action Plan) as a living
document that will evolve and change as our packaging products improve and reach goals annually. We
strive for measurable improvements over time which we will report annually for the July 1st through
June 30th reporting period the Microsoft fiscal year (FY)). We will submit the APC Annual Report by
October 31st of each FY.
Our vision is for sustainable packaging following these several strategies:
Light-weighting of packaging and minimizing of materials in packaging
Elimination of packaging using technologies such as electronic distribution
Elimination of unfavorable materials
Shrinkage of packaging manufacturing footprint
Use of recycled materials
Use of materials friendly to recycling again at end of life
Design for recycling: Make materials easily separable
Ensure that all recyclable packaging is clearly labeled for recycling
Long life use packaging
Designing packaging for environmental efficiencies in the supply chain
Using the above strategies, Microsoft is committed to an improvement of 5% between each successive
launch of a product for one or more of the following criteria:
Microsoft packaging enviro score (Wal-Mart Scorecard)
Reduction in total package weight
Reduction in package component material
Reduction in package to product volume ratio
Increased use of recycled materials
Microsoft has gathered the relevant baseline data and reported it in our first Annual Report submitted,
October 31, 2010. The sustainability strategies listed above will be integrated into our product
development process which is a phase and gate driven hardware production life cycle tool called end to
end (e2e), our internal development process.
6 Microsoft Commitment to Environmental Sustainability Safety, Compliance & Sustainability Policies and Procedures
Title: Australia Packaging Covenant Action Plan for July 2010 – June 2014 June 10, 2011
Procedure No. N/A Rev. B
This Action Plan is endorsed by Senior Management at Microsoft. Please see Section 7 for signature.
Formal Commitment to Implement Action Plan
Don Mattrick
Interactive Entertainment Business (IEB) Management President
Microsoft Corporation
One Microsoft Way
Redmond, WA 98052
Contact Person
Joan Krajewski
General Manager of Safety, Compliance and Sustainability
Microsoft Corporation
One Microsoft Way
Redmond, WA 98052
3 MICROSOFT HISTORY
Microsoft was founded in 1975, and is a worldwide leader in software; services and solutions that help
people and businesses realize their full potential. Microsoft is a multinational computer technology
corporation that develops, manufactures, licenses, and supports a wide range of software and hardware
products for computing devices. Headquartered in Redmond, Washington, USA, our best selling
products are Microsoft® Windows® operating system and the Microsoft® Office® suite of productivity
software.
Microsoft was originally founded to develop and sell BASIC interpreters for Altair 8800, then developed
home computer operating systems with MS-DOS in the mid-1980s, followed by the Windows® line of
operating systems. Microsoft’s original mission was “a computer on every desk and in every home,
running Microsoft software.” The current Microsoft mission statement is “to help people and businesses
throughout the world realize their full potential.” Microsoft possesses footholds in other markets; with
assets such as the MSNBC cable television network, the MSN® network of Internet services and the
Microsoft® Encarta® multimedia encyclopedia.
Microsoft is a brand owner of products including Microsoft® Windows®, Office®, Servers, Developer
Tools, Expression®, Business Solutions, and computer hardware products including mice keyboards and
webcams and home entertainment products such as Xbox®, Xbox 360® and Zune®.
4 MICROSOFT IN AUSTRALIA
Microsoft is a “brand owner” as defined by the Australia APC and operates one warehouse and
distribution facility in Australia. Microsoft Regional Sales Corporation (MRSC) operations in Australia
include an outsourced national distribution warehouse in Sydney, Australia. MRSC sells its brand
7 Microsoft Commitment to Environmental Sustainability Safety, Compliance & Sustainability Policies and Procedures
Title: Australia Packaging Covenant Action Plan for July 2010 – June 2014 June 10, 2011
Procedure No. N/A Rev. B
finished products by shipping to the Sydney warehouse and selling the products to its authorized
distributor(s) who then sells them to retailers and resellers nationally. Currently, the Microsoft brand
products sold in Australia, are served from the warehouse in Sydney, include the Xbox 360® video game
and entertainment system, games and accessories, personal computing hardware (PCHW) such as mice,
keyboards, and webcams. MRSC does not sell products directly to consumers in Australia.
The Xbox 360® video game console and the new Kinect® sensor controller entertainment system
packaging (launched in 2010) consists primarily of corrugated fiberboard. Ethylene-vinyl acetate (EVA)
foam cushioning inserts are used for product protection. Secondary packaging material used to protect
the product components include: foam sheet, molded pulp and polypropylene bags. The games
packaging consists of polypropylene plastic DVD case and paper inserts. Figure 1 depicts the Xbox 360®
entertainment system packaging.
Figure 1: New Xbox 360® Console with Kinect & Games Packaging
To help standardize packaging used across various hardware devices, Microsoft developed a common
platform of package sizes for mice, webcam, and some keyboard packages. The common platform to
standardize sizes of packaging has improved manufacturing efficiency and materials efficiency. The
new design platform has reduced thermoformed polyethylene terephthalate (PET) plastic clamshell
packaging with a more sustainable paperboard based primary packaging. Figure 2 depicts examples
of the new paperboard landscape packaging.
Figure 2: Project Landscape PCHW Packaging
8 Microsoft Commitment to Environmental Sustainability Safety, Compliance & Sustainability Policies and Procedures
Title: Australia Packaging Covenant Action Plan for July 2010 – June 2014 June 10, 2011
Procedure No. N/A Rev. B
Microsoft product packaging by material type includes:
Paper products
o Corrugated cardboard
o Paperboard/paper
o Molded pulp
Plastic
o Polyethylene terephthalate (PET)
o Polypropylene (PP)
o Polystyrene (PS)
o Oriented-polypropylene (OPP) film and shrinkwrap
o Polyethylene bags
o Ethylene-vinyl acetate (EVA) foam
Microsoft is measuring its Packaging Sustainability strategies on the following APC Performance goals
and KPIs. Note: KPIs 2 and 5 are not applicable to individual signatories such as Microsoft according to
APC Action Plan Template.
Table 1: APC KPIs and Performance Goals
Performance goal Outcomes Key performance
indicators APC Targets
1. Design - optimise packaging to use resources efficiently and reduce environmental impact without compromising product quality and safety
Packaging designed to:
• avoid or minimise the use of
materials and other resources
• optimise its recyclability and
recycled content
• reduce litter impacts
KPI 1. Proportion of signatories in the supply chain implementing the Sustainable Packaging Guidelines for design or procurement of packaging
100% of
signatories in
the supply
chain by
2020
2. Recycling - efficient
collect and recycle
packaging
Improved recovery of packaging from households and away-from-home sources
KPI 2. N/A National
recycling rate for
packaging (Not
Applicable to Individual
Signatories)
KPI 3. Proportion of
signatories with on-site
recovery systems for
recycling used packaging
Continuous
improvement
in the
recycling rate
9 Microsoft Commitment to Environmental Sustainability Safety, Compliance & Sustainability Policies and Procedures
Title: Australia Packaging Covenant Action Plan for July 2010 – June 2014 June 10, 2011
Procedure No. N/A Rev. B
Performance goal Outcomes Key performance
indicators APC Targets
Increased secondary markets
for recovered packaging
materials
KPI 4. Proportion of signatories with a policy to buy products made from recycled packaging
KPI 5. N/A: Additional
tonnes of material
reprocessed in primary
and secondary markets
as a result of Covenant-
funded projects (Not
applicable to individual
signatories).
3. Product Stewardship
– demonstrate
commitment of all
signatories
Signatories in the supply chain working with others to improve packaging design and recycling
KPI 6. Proportion of signatories that have formal processes for working with others to improve packaging design and recycling. *
KPI 7. Proportion of signatories demonstrating other product stewardship outcomes for packaging
100% of
signatories
by 2020
Reduction in litter KPI 8. Reduction in the number of packaging items in litter
Continuous
reduction in
the number
of packaging
items in litter
* It is recognised that while the Packaging Covenant will contribute to the recycling rate there are many other drivers and
barriers. These include the strong and continuing commitment by local government to curbside collection of used packaging
and demand for commodities in local and export markets.1
1www.packagingcovenant.org.au, Australian Packaging Covenant Handbook for Signatories Table 1-1, September,
2010.
10 Microsoft Commitment to Environmental Sustainability Safety, Compliance & Sustainability Policies and Procedures
Title: Australia Packaging Covenant Action Plan for July 2010 – June 2014 June 10, 2011
Procedure No. N/A Rev. B
5 SCHEDULE FOR PACKAGING REVIEWS
5.1 New Products
Hardware and software Packaging platforms are reviewed by the packaging development team each
development cycle, which is annually for most products, every 3 years for specialty products such as
Xbox and accessories. There is a packaging development team assigned to each new product platform.
The environmental sustainability strategies are integrated into our product development process which
is a phase and gate driven production lifecycle process, e2e. Therefore, each new package is reviewed
for environmental sustainability concepts at product inception and throughout the development cycle.
Microsoft has made it a goal of KPI 6 (See Table 3) to document our formal phase and gate development
process which is currently electronically executed on the Microsoft internal intranet tool e2e. It will also
be enhanced to more closely follow the APC Sustainable Packaging Guidelines in FY 2011. We will
document the phase and gates in a report format that will then be included as an appendix to our next
Annual Report scheduled October 31, 2011.
5.2 Existing Products
Microsoft packaging for existing products is phased out every one to three years, depending on the
product type, and replaced with the new packaging innovation including our sustainability concepts. The
Microsoft review schedule occurs during each product packaging platform development lifecycle as
outlined in Table 2.
Table 2: Schedule of Review Period by Product Type
Product Type Review Period
Xbox and Accessories Each launch development cycle, usually every 3 years
Software and Games Each launch development cycle, usually annually
PC Hardware Each launch development cycle, usually annually
(Other) Multi-media devices Each launch development cycle, usually annually
Existing Packaging Existing packaging is phased out every 1 to 3 years and
replaced with new packaging innovation
6 MICROSOFT WORLDWIDE COMMITMENT TO ENVIRONMENTAL SUSTAINABILITY
Microsoft is committed to environmental sustainability and continuously works to explore and
implement new ways to preserve and improve the environment. Microsoft has further committed to
environmental sustainability by becoming certified by the International Organization of Standardization
(ISO) in ISO 14001 to formalize the processes for reducing the company environmental footprint.
11 Microsoft Commitment to Environmental Sustainability Safety, Compliance & Sustainability Policies and Procedures
Title: Australia Packaging Covenant Action Plan for July 2010 – June 2014 June 10, 2011
Procedure No. N/A Rev. B
Microsoft uses this formal process as a model for our global environmental management system as well
as the APC implementation. The Microsoft European Operations Center has been ISO 14001:2004
certified since 1997 for the following activities: The management of the manufacture and distribution of
commercial full packaged products, entertainment and devices products, and the distribution of
associated hardware peripherals. The Microsoft Headquarters in Redmond, Washington, USA is working
towards ISO 14001 certification in FY 2011 for all of IEB global division operations including all Microsoft
hardware products and packaging.
Microsoft’s global environmental management system is focused in several key areas:
Applying Microsoft technology expertise to help solve environmental challenges
Reducing the company's environmental footprint
Addressing global e-waste
Creating sustainable consumer electronics, packaging and software
6.1 Microsoft Sustainable Packaging Innovation
Microsoft’s environmental specification for packaging is a public document. The specification is
identified as: Specification #S002689 “Material Restriction Requirements for Packaging and Software
Products.” We provide it to all suppliers and vendors via an electronic distribution tool: Release Services
Manager (RSM).
The specification identifies packaging component data required by Microsoft including, but not limited
to, material type, compliance information, and if applicable, recycled content. S002689 also outlines
vendor responsibilities and the process for reporting component substances. Microsoft policy requires
that its packaging suppliers submit full material declaration and chemical test reports for all packaging
components to ensure compliance to restricted substances. Microsoft utilizes a database tool called
Teamcenter Environmental Compliance (TCEC) to store the material declarations and make them
available to run reports for individual products itemizing component substances. TCEC and full material
declaration of 100% of substances in our packaging (as well as our products) allows Microsoft to monitor
substances of concern such as bisphenol-A, heavy metals and phthalates. S002689 also includes overall
targets for recycled content of packaging and targets for sustainable sourcing for wood based
components.
In addition to S002689 and to enhance the e2e lifecycle process tool, Microsoft is developing an
environmental Center of Excellence (CoE) in FY 2011. The team will be comprised of members of the
global packaging design teams, the Safety, Compliance and Sustainability team, the sourcing team and
management. The CoE is designed to share packaging design innovation throughout the company, to
advance packaging metrics and scoring, to improve reporting tools and to present one consistent
message for packaging sustainability. This group will enhance the e2e process to manage the innovative
ideas in order to verify the environmental benefit, identify best use of the ideas, and manage the
implementation into the supply chain for broadest benefit.
12 Microsoft Commitment to Environmental Sustainability Safety, Compliance & Sustainability Policies and Procedures
Title: Australia Packaging Covenant Action Plan for July 2010 – June 2014 June 10, 2011
Procedure No. N/A Rev. B
6.2 Use of Recycled Content and Design for Recycling
Recycled content of paper in Microsoft packaging is variable by material type. The intent of specification
S002689 is to set and drive a goal with suppliers for achieving levels of recycled content. Through
reporting, we can determine which material types and vendors meet these target levels.
Microsoft suppliers are required to target a minimum 25% pre- or post-consumer recycled content in
packaging whenever possible. We strive to use soy based or biodegradable inks, in conjunction with our
increased use of paper print materials, enabling the packaging component to be recycled in many local
municipality recycling facilities around the globe. For Rigid Plastic Packaging Containers (RPPC),
Microsoft requires that all suppliers worldwide comply with the State of California’s RPPC Law, where all
RPPC packaging supplied to Microsoft must contain a minimum of 25% post-consumer recycled content.
For suppliers using paperboard and corrugated fiberboard materials in their packaging composition,
Microsoft uses specification S002689 to target the use of 50% recycled content in the overall program,
25% of which must be post-consumer. This is intended to apply as an average for our paper based
packaging, as corrugated generally has a higher recycled content, and other papers may be lower. 100%
of the paper based packaging components must be recyclable at the end of life. They must be devoid of
any heavy metals that could be harmful to the environment. Each packaging component is specified to
be properly labeled and easily separable by design to provide ease of recycling.
This year, Microsoft will improve specification S002689 by incorporating requirements for a minimum
recycled content by paper type and specification of the appropriate use of paper type, striving for the
highest recycled content as compatible with other paper attributes such as printability and quality. In
addition, the paper specifications will include Forest Stewardship Council (FSC) certification as support
for Microsoft’s commitment to use paperboard generated by suppliers who practice responsible
forestry. This is a part of a chain of custody certification to advise consumers, which packaging products
are FSC certified.
6.3 FY 2010 Achievements
There were significant Microsoft packaging sustainability improvements in FY 2010 as outlined in our
NPC Annual Report dated October 31, 2010. Following, are just three of those achievements.
6.3.1 Elimination of PVC from packaging
2005, Microsoft removed Polyvinyl Chloride (PVC) from product packaging and reduced the use of
plastic clamshells. In FY 2010, PVC was completely phased out of Microsoft hardware products, in favor
of packaging innovations such as Project Landscape, using recycled paperboard.
6.3.2 Personal Computer Hardware Peripherals
The Microsoft hardware design group partnered with our suppliers to redesign PC Hardware packaging, introducing a new “Landscape” packaging design platform in 2009. Landscape packaging was designed to help standardize packaging across hardware devices and is based on “right sizing” the package to minimize material. The packaging platform incorporates multiple sustainability strategies such as: the
13 Microsoft Commitment to Environmental Sustainability Safety, Compliance & Sustainability Policies and Procedures
Title: Australia Packaging Covenant Action Plan for July 2010 – June 2014 June 10, 2011
Procedure No. N/A Rev. B
use of renewable materials, increased recycled content and recyclability at end of life and a reduction in traditional retail packaging components. Additionally, the increased use of paperboard and new materials achieved volume reductions of packaging thus aiding efficient transport and shipping of the products. The Landscape packaging also eliminated the PET dual-piece (front and back panel) clamshell and replaced it with recyclable paper. Landscape packaging is produced in multiple sizes for each of the hardware peripheral products. Each
size provides different estimated dimensional reductions and standardized packaging for each product
group. Figure 3, below, depicts some examples of the current products with associated packaging
reduction percentages: large has 30% less volume; medium has 23% less volume; and small has 12% less
volume.
Figure 3: Project Landscape Packaging Volume Reduction for PCHW
6.3.3 Xbox 360® Retail Package Improvements
Microsoft launched the new, leaner Xbox 360® consoles in June 2010. Since the original introduction in 2001, Xbox® and Xbox 360® have grown rapidly in the home entertainment industry. The new Xbox 360® packaging (Figure 4) incorporates several environmental improvements over the previous product packaging:
Lighter weight - average 9% weight reduction, excluding the console and peripherals
Reduced Packaging Footprint - average 5% overall packaging dimensional reduction, fewer materials used
Use of paperboard from sustainably managed forests
Increased post-consumer recycled content in the paperboard
Selected material friendly to recycling and recovery
14 Microsoft Commitment to Environmental Sustainability Safety, Compliance & Sustainability Policies and Procedures
Title: Australia Packaging Covenant Action Plan for July 2010 – June 2014 June 10, 2011
Procedure No. N/A Rev. B
Figure 4: Xbox 360® Console Containers
7 SUMMARY OF INITIATIVES IN THIS PLAN
The following Action Plan Table 3 will help to calculate and document the environmental improvements
to packaging that Microsoft has been developing and implementing. The Action Plan table summarizes
the initiatives Microsoft will employ over the next three years to demonstrate incremental
improvements in the environmental factors of Microsoft brand packaging to report to the APC. The
table lists the KPIs for the APC, the action items associated with improving each KPI and the date of the
next reporting and the reporting measures. This Action Plan covers July, 2010 through June 30, 2014.
The first Annual Report under the newly revised APC will be submitted October 31, 2011 and will include
only the KPIs associated with our packaging brands in our Australia warehouse. Annually thereafter,
Microsoft will submit an Annual Report on or before October 31 to document improvements in the KPIs.
We view this Action Plan as a living document that will evolve and change as our packaging products
improve and reach goals annually. We have committed to additional Microsoft audit programs to gain
baseline information of our supplier manufacturing processes including environmental management
systems (EMS), more precise % recycling content of materials, and energy consumption statistics. We
plan to submit additions to our action items outlined in Table 3 annually as more baseline information is
available for analysis.
15 Microsoft Commitment to Environmental Sustainability Safety, Compliance & Sustainability Policies and Procedures
Table 3: Action Plan Table
Covenant Performance Goals and KPIs Actions Baseline Data Target or Performance
Goal Timeline or Milestones
1. Design – Optimise packaging to achieve
resource efficiency and reduce environmental
impact without compromising product quality
and safety
KPI 1 Proportion of signatories in the supply
chain implementing the SPG for design or
procurement of packaging
Target: 70% of Covenant signatories with
documented policies and procedures for
evaluating and procuring packaging using the
SPG or equivalent
Target: 70% of Covenant signatories assessing
100% of new packaging and 50% of existing
packaging against the guidelines
Continue to be a signatory of the
APC. Contribute financially to APC
and submit Action Plans and Annual
Reports.
Signatory since 2009. Reporting through Fiscal
Year (FY) 2013.
Continue
Include packaging suppliers in Microsoft (MS) supplier audit program to document if they have an Environmental Management System (EMS).
To be determine. Report the % of MS packaging suppliers that have an EMS.
80% of MS packaging suppliers will have a documented EMS
October 31, 2012 Report the baseline % of MS packaging suppliers with an EMS.
October 31, 2015 Annual Report for 80% of MS suppliers with an EMS
Beginning FY 2010 it is MS policy to
require packaging suppliers to
provide full material declaration for
all components in all packaging to
monitor substances of concern such
as heavy metals, Bisphenol-A and
phthalates.
N/A Document 100% of
substances comprising
MS packaging.
Continue
Improve 5% from product launch to
subsequent product launch for one
or more of the following:
Reduction in total weight
Reduction in packaging
Previous product
launch weight or
volume and recycled
content will be used as
baseline data for
improvement of the
5% reduction in weight or
volume 5% increase in use
of recycled materials from
product launch to
subsequent product
Product launch to
product launch based
on the schedule.
Report Annually.
16 Microsoft Commitment to Environmental Sustainability Safety, Compliance & Sustainability Policies and Procedures
component material (weight)
Increase use of recycled content
Reduction in product to package
volume ratio
next generation. launch.
Calculate the weight of total
packaging sold into Australia
770 tonnes in FY 2009 Decrease by 5% year over
year
Annually
Continue to develop electronic
distribution of products and services
where appropriate to eliminate
packaging. Promote electronic
delivery methods to consumers.
Products that still
utilize packaging.
Implement one new
electronic distribution
product per year.
Annually
Covenant performance goals and KPIs Actions Baseline Data Target or Performance
Goal Timeline or Milestones
2. Recycling – the efficient collection and
recycling of packaging
KPI 2 N/A (Not Applicable to Individual
Signatories)
KPI 3 Proportion of signatories with on-site
recovery systems for recycling used packaging
KPI 4 Proportion of signatories with a policy to
buy products made from recycled packaging
KPI 5 N/A (Not applicable to individual signatories).
All Covenant signatories will have a formal,
Support “Buy Recycled” principles.
Include packaging suppliers in MS
supplier audit program to measure
their compliance with MS
Specification S002689 requirement
of purchasing 25% pre- or post-
consumer recycled content, or 50%
for paperboard/corrugate
packaging.
To be Determined. Target a minimum of 25%
pre- or post-consumer
recycled content
whenever possible.
RPPC Packaging must
contain a minimum of
25% post-consumer
recycled content
Paperboard/corrugate
must contain 50%
recycled content, 25% of
which must be post-
consumer.
Begin auditing
packaging suppliers for
recycled content by
October 31 2012. 90%
of packaging suppliers
audited by October 31,
2013.
17 Microsoft Commitment to Environmental Sustainability Safety, Compliance & Sustainability Policies and Procedures
documented policy of buying recycled products
or materials
Formalize and document recycled content preference policy in MS packaging Specification S002689 and circulate to suppliers. Indicate preference to suppliers of recycled content when performance, safety, regulatory and cost requirements are met.
N/A Update MS Specification
S002689 with recycled
content preference policy
and circulate to 100% of
MS suppliers. Follow-up
training as needed.
October 31, 2011
Promote recycling and educate
consumers to recycle our products
through Australian internet websites
and/or Microsoft websites.
N/A Develop a recycling
information page on
Microsoft.com
October 31, 2011
Report total weight of non-
recyclable consumer packaging sold
per annum in Australia market.
44.1 tonnes in FY 2009 Improve by at least 5%
year over year.
APC Annual Reporting
Provide packaging and electronic
product recycling take-back program
at Microsoft branded company
stores.
Microsoft branded
stores currently take
electronic products for
recycling, but not
packaging.
Provide packaging
recycling take-back
program at Microsoft
branded company stores.
October 31, 2012
Perform a waste audit of MRSC
Australia distribution warehouse in
Sydney, Australia to determine
onsite recycle and recovery systems.
To be determined Determine the baseline % of packaging recycled at MRSC national distribution warehouse
October 31, 2011
Improve MRSC Australia national distribution warehouse waste management to include 100% recycling of materials that are recycled by the Australia Territory Municipal recycling system. Utilize
To be determined 100% recycling of primary, secondary and tertiary packaging disposed of at the MRSC Australia national
October 31, 2012
18 Microsoft Commitment to Environmental Sustainability Safety, Compliance & Sustainability Policies and Procedures
Municipal recycling programs to maximize recovery rates.
distribution warehouse.
Covenant performance goals and KPIs Actions Baseline Data Target or Performance
Goal Timeline or Milestones
3. Product stewardship – a demonstrated
commitment to product stewardship by the
supply chain and other signatories
KPI 6. Proportion of signatories that have
formal processes for working with others to
improve design and recycling of packaging
KPI 7. Proportion of signatories demonstrating
other product stewardship outcomes for
packaging
KPI 8. Reduction in the number of packaging
items in litter
Document the existing Microsoft
packaging phase and gate driven
production lifecycle process in a
report format. Enhance to more
closely align with APC Sustainable
Packaging Guidelines.
N/A Convert electronic
internal tool to a report
format that can be made
public.
October 31, 2011
Charter MS Center of Excellence (CoE).
N/A Company-wide stewardship of packaging sustainability.
October 31, 2011
Continue ISO 14001 Certification No ISO Certifications ISO 14001 Certification in
Microsoft global supply
chain operations.
October 31, 2011
Reduce the number of components in Microsoft packaging.
Previous product launch component number will be used as baseline data for improvement of the next generation.
Continuous reduction in the number of packaging items in packaging
Annual reporting of the number of packaging items in MS packaging at MRSC
Identify an anti-litter reduction or
education program in Australia &
submit to MS upper management
for approval of financial support.
N/A MS approved financial
support of a local
Australian anti-litter
organization.
Submit
recommendation in FY
2011 Annual Report.