Our purpose in action | Dell
FY22 Environmental, Social and Governance Report
Our purpose in action FY22 Environmental, Social and Governance Report
OUR COMMITMENT At Dell Technologies our purpose is to create technologies that drive human progress Our commitment to environmental, social and governance is this purpose in action. It brings together who we are with what we do. We apply our innovative technology, global reach and talented workforce to drive measurable societal impact focused on advancing sustainability, driving diversity, equity and inclusion, and transforming lives through access to technology, volunteering and giving programs supporting education and healthcare. Our promise to uphold ethics and data privacy provides the foundation, establishing trust in everything we do.
TABLE OF CONTENTS Introduction Advancing Sustainability 42 Message From Michael Dell 4 Our business 5 Cultivating Inclusion 69 Highlights in numbers 6 Key impact stories 7 Recognition (ESG rankings & ratings) 8 Transforming Lives 85 Our Plan Upholding Ethics & Privacy 96 Overview 10 ESG governance 11 Stakeholder engagement and ESG materiality 14 Supply Chain Sustainability Reporting frameworks 15 Our approach to supply chain sustainability 104 Our support for the U.N. SDGs 16 Our progress in FY22 112 Advocacy 17 Supply chain — audit results 132 Commitment to human rights 19 2030 goals 24 By the Numbers Goals Dashboard By the Numbers 139 Goals Dashboard 25 Appendix Goals methodology 36 How we report 149 Our approach to net zero 150 Glossary 151 Dell’s material ESG topics 155 Endnotes 157
MESSAGE FROM MICHAEL DELL I believe the future is what we make it At Dell Technologies, we see a future that propels and purpose-driven culture to the challenge, I’m human progress, one that delivers business and particularly proud that: societal impact for everyone. We are driving • We have joined other members of Business innovation, partnerships and technology to Roundtable and Information Technology connect people with opportunities, reduce Industry Council in support of rejoining the Paris environmental impact and build trust. Climate Agreement. • We will deliver on our commitment to achieve net zero greenhouse gas (GHG) emissions 18th consecutive year across our entire value chain by 2050. ® • For the 10th time Ethisphere has listed Dell The Human Rights Campaign Foundation Technologies as one of the World’s Most Ethical ® has given us a perfect score on the Companies . Corporate Equality Index • And for the 18th consecutive year the Human Rights Campaign Foundation has given us a perfect score on their Corporate Equality Index, which recognizes the Best Places to Work for LGBTQ+ equality. Thanks to our customers and partners, this But we certainly won’t stop there. We are past year was one of the best ever in Dell’s focused on driving positive impact for the planet “Our emphasis on environmental, history. And our emphasis on environmental, and for all of its people through the twin engines social and governance (ESG) social and governance (ESG) measures ensures of human inspiration and technology innovation. that while we accomplished our business goals, measures ensures that while we we also delivered positive results for all of our I’m excited to share our progress, our purpose in accomplished our business goals, stakeholders. action, with you now in this report. This report details our progress toward achieving we also delivered positive results our ambitious 2030 goals. There’s much work to Michael Dell for all of our stakeholders.” be done, and as we apply our spirit of innovation Chairman and CEO Dell Technologies INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 4 FY22 ESG REPORT
Dell Technologies provides the essential infrastructure for organizations to build their Awards & Achievements Our business digital future, transform IT and protect their most important asset information. #2 133,000 $101.2B Newsweek’s America’s Most Loved Workplaces 2021 Approximate number of FY22 revenue full-time employees1 #2 96% 3 in the computer industry on Fortune’s 180 Most Admired Companies 2021 % of Fortune 500 companies Dell Technologies named a Leader ® Approximate number of countries Dell serviced by Dell in FY22 Q2 in 3 2021 Gartner Magic Quadrant™ reports* operates in globally #7 Forbes World’s Best Employers 2021 GLOBAL FOOTPRINT + + + + 43 20 140 750 2,400 $7.5B Manufacturing Fulfillment and Parts distribution Vendor–managed Invested in R&D over STAR Awards from the Technology & locations (9 Dell logistics centers centers globally service centers and the last 3 years Services Industry Association (TSIA) for owned) 80+ global repair commitment to outstanding innovation, centers leadership and excellence in the technology services industry * Gartner, Magic Quadrant for Primary Storage, October 2021; Magic Quadrant for Distributed File Systems and Object Storage, October 2021; Magic Quadrant for Enterprise Backup and Recovery Software Solutions, July 2021. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 5 FY22 ESG REPORT
Highlights in numbers 179.8M 33.9% 159,742,242 10x Kilograms (396.5M pounds) of sustainable of team members and 28.2% of people leaders People have benefited from our strategic giving Recognized as one of the World’s Most Ethical ® ® materials in our products and packaging identify as women globally and volunteering programs Companies by the Ethisphere Institute % % + 82 15.4 18,000 1 Increase in electricity generated by on–site solar panel of team members and 12.2% of people leaders identify as Nonprofits supported via giving and volunteering Centralized location for customers to learn more about installations compared with FY20 Black/African American or Hispanic/Latino in the U.S. our privacy practices % % 55 99.6 222 3 Electricity across Dell Technologies facilities from Team members completed Be the Change focused on Nonprofits supported on their digital Mechanisms for people to speak up and report a concern renewable sources understanding topics related to inclusion transformation journey % % % 90.2 47 135M 100 Packaging across our entire product portfolio made with Team members are in at least one Employee Resource Individuals enrolled with Digital Lifecare in India Employees agreed to the Dell Technologies recycled or renewable materials Group (ERG) Code of Conduct 26% Year–over–year increase in the percentage of products sold taken back for reuse or recycling INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 6 FY22 ESG REPORT
Key impact stories Investing in circular innovation Championing new ways of Advancing digital inclusion Leveraging innovative tools Reducing resource use and addressing growing working Solar Learning Labs are a force for digital Regulators’ expectations for ethics and concerns connected to e-waste are important Dell has been a leader in flexible work for more inclusion. To date, they have helped over compliance teams to leverage data analytics is on to our stakeholders and critical to the future of than a decade. We prioritize outcomes and 34,000 students, introducing them to science, the rise. One way we are addressing the need is our business. In FY22, Dell Technologies unveiled connections, where team members can drive technology, engineering and mathematics with Dell Image Analysis (DIA), a fraud prevention Concept Luna, a prototype to inspire future results and access opportunities. In FY22, we (STEM) and the economic opportunities tool that analyzes images to detect falsification sustainable laptop design, exploring revolutionary learned remote work helps level the playing field technology can offer. This year Dell transitioned at the metadata level. Our teams are using DIA ideas to make components readily accessible, and that 90% of our team members want to our learning labs to Solar Community Hubs, to confirm promotion and other marketing event replaceable and reusable. Created to test what remain hybrid or fully remote. Culture, belonging offering community support beyond education. photos submitted by third parties depict the could be possible, if all the design ideas in and career growth are vital as we envision work Depending on community needs, we will work actual events described, including date, location Concept Luna were realized, we could expect in a hybrid environment. We continue to believe with local partners to offer access to water and and spend accuracy. DIA uses programmer to see an estimated 50% reduction in overall work is an outcome — not a time or place. electricity, healthcare services and/or biodiversity feedback and machine learning to enhance product carbon footprint when compared to a Technology enables team member collaboration, preservation, as is the case with the Solar accuracy over time. Since implementing DIA, 2 similar Dell laptop in our current portfolio. connection and productivity, while culture and Community Hub in the Amazon rainforest, which Dell has avoided several millions of dollars in fraud guidance help our people and company thrive. opened in July 2021. loss annually. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 7 FY22 ESG REPORT
Recognition Dell Technologies is advancing 2021 BEST PLACES TO WORK ® Score: 100% ECOVADIS initiatives across our ESG 2022 WORLD’S MOST ETHICAL COMPANIES reporting. The following awards Score: 10-Time honoree The DEI serves as a benchmark that helps companies Platinum medal build a road map of measurable, tangible actions they Awarded a platinum EcoVadis medal in 2021 for represent our commitment to Recognized in 2022 as one of the World’s Most can take to achieve disability inclusion and equality. ® ® scoring in the top 1% of companies assessed across Ethical Companies by the Ethisphere Institute for social impact and highlight areas the 10th time, affirming Dell’s robust programs and four major themes: environment, labor and human of excellence and areas where commitment to integrity. rights, ethics, and sustainable procurement. we will continue to enhance our performance. Explore more of our awards and recognition. CORPORATE EQUALITY INDEX Score: Perfect score 100 points This was our 18th consecutive year to receive a GLOBAL TOP 25 SUPPLY CHAIN INSTITUTIONAL SHAREHOLDER SERVICES ESG perfect score on this index, which recognizes the Ranked among the 2022 leaders Score: Prime status Best Places to Work for LGBTQIA+ equality. This For 2022, the Top 25 and Masters companies index is the national benchmark for LGBTQIA+- embraced four macro trends: The CSCO as Chief Achieved prime status by fulfilling the ISS’ related corporate policies and practices. strong ESG requirements regarding sustainability Ecosystems Officer, Self-Stabilizing Supply Chains, performance in our sector in 2021. Progress on Broader Sustainability Agenda and Human-Centric Digital Automation.* SUPPLIER ENGAGEMENT LEADERBOARD AMERICA’S MOST LOVED WORKPLACES KNOWTHECHAIN Leader status Score: 2nd out of 100 companies Score: 6th out of 49 companies Recognized as a leader among the top 8% of This list recognizes companies that prioritize their Ranked sixth in the Information and companies assessed for supplier engagement on employees as noted through employee surveys and Communications Technology Sector. Began climate change, based on our 2021 CDP disclosure. analysis of employee benefits. Dell is committed to * Gartner Press Release, Gartner Announces Rankings of reporting to KnowTheChain in 2020 to operate more CDP’s Supplier Engagement Rating measures how doing right by all of our stakeholders, including our the 2022 Global Supply Chain Top 25, May, 2022, transparently and responsibly in addressing forced effectively companies are engaging their suppliers on team members. https://www.gartner.com/en/newsroom/press- labor in global supply chains. climate change. releases/2022-05-26-gartner-announces-rankings-of- the-2022-global-supply-chain-top-25 INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 8 FY22 ESG REPORT
Meaningful impact doesn’t happen without a plan To create our plan, we closely examined the growing societal issues the world is facing and where we have the biggest opportunity to apply our technology, people and scale to activate change by 2030 and beyond. We also listened — to our customers, partners, investors, team members and communities — to learn where they wanted us to focus our efforts. Our plan to activate change in the areas of advancing sustainability, cultivating inclusion and transforming lives, underpinned by a commitment to uphold ethics and privacy, is the result. We recognize that going beyond the incremental to drive measurable outcomes requires setting ambitious, time-bound goals and being transparent along the way. Our annual Environmental, Social and Governance Report shares not only where we are making headway, but where we need to increase focus, drive innovation and partner with others to accelerate progress toward our goals. Cassandra Garber VP, ESG (Environmental, Social and Governance) Dell Technologies INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 9
Where we will make an impact Advancing Sustainability Cultivating Inclusion Transforming Lives Upholding Ethics & Privacy We have a responsibility to protect and enrich Dell Technologies strives to cultivate inclusion We believe our scale, team members and the Ethics and privacy play a critical role in our planet, and we work with our customers, in everything we do for our people, customers innovative application of our portfolio can play establishing a strong foundation for positive partners, suppliers, team members and and communities. We view diversity, equity and an important role in advancing fundamental social impact. In this time of rapid innovation, big communities to drive impact on the most inclusion as a business imperative and are focused human rights and in addressing complex societal data, an evolving regulatory environment and pressing environmental issues. Core to our on attracting, building, developing and retaining challenges, including improving health, education increasing expectations from our ecosystem, we business, the power and scale of our global a diverse workforce through an inclusive culture. and driving digital inclusion for all. We endeavor are committed to continuing to lead in ethics and supply chain allow us to drive the highest Additionally, we are expanding our impact beyond to harness the power of technology to create privacy. Our constant push for higher ethics and standards of sustainability and ethical practices, our walls to build stronger customer relationships a future that is capable of fully realizing human privacy standards will be a guidepost for how we holding ourselves accountable for our actions and an external community aligned with our potential. will create a positive, lasting impact on humankind while driving improvements wherever and shared values. and the planet. whenever possible. Explore our Environmental, Social and Governance Plan for 2030 INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 10
ESG GOVERNANCE Governance is foundational to our ESG strategy Knowing that Dell Technologies is managing relevant environmental, social and governance (ESG) issues is of increasing importance to our stakeholders. That is why we are committed to advancing these Board of initiatives across our company and integrating the measurement Directors and management of ESG topics into our strategic planning and operations. We understand that ESG is a business imperative, which is why we have formalized ESG as an organization within STRATEGIC E…ecuti e †eadership „eam RISK MANAGEMENT our company with governance extending to the very top. The OPERATIONS ESG organization has the opportunity to add long-term value, AND COMPLIANCE minimize risk, attract top talent and drive societal progress by: • Meeting expectations of stakeholders. ESG Steering ommittee Global isk • Bringing transparency to and improving our ESG performance. ompliance ouncil • Governing ESG strategy, risks and performance. We have two governance bodies responsible for oversight of ESG ESG nterlock „eam Enterprise isk Steering ommittee issues at Dell: our ESG Steering Committee and ESG Interlock Team. Each has its own roles and responsibilities and mirrors and aligns with how we manage risk in the company. We have continued to evolve the responsibilities of these governance bodies to match our Global Global Global nformation Global ri acƒ Global growing ESG efforts and follow emerging trends. Sustainabilitƒ Di ersitƒ Gi ing Go ernance Steering ‡udit ouncil ouncil ouncil Steering ommittee ommittee Focus area-specific working groups, forums and Global E€ egional councils that enable progress to our ESG priorities ompliance ‚orking ontrols (eg, limate, D Best ractices, egional Gi ing ouncils Forum Group ompliance e iews INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 11
ESG GOVERNANCE These governance bodies are composed of members on our eight-member board who members from various teams across Dell who self-identify as women, and we will continue to create an integrated perspective and approach ensure a diverse pool of candidates is considered to ESG. They include representatives from the for each seat. Five of our board members are following business units and corporate functions: classified as independent, according to New York sustainability; diversity and inclusion; human Stock Exchange guidelines. resources; giving and social innovation; ethics and privacy; supply chain; corporate affairs; Role of the Board of Directors government affairs; internal audit; legal; risk management; investor relations; accounting; in ESG practices and risks and security. Together these governance bodies Our board oversees the establishment and help us develop, manage and measure our ESG maintenance of our governance, which uses strategy and performance. compliance and risk oversight processes and About Dell Technologies’ procedures to promote responsible, ethical business conduct that is rooted in integrity. Board of Directors Representatives from our ESG Steering Committee report regularly to the board of The Dell Technologies Board of Directors is directors. Awareness of key risks associated with committed to operating in a responsible manner. ESG, such as adapting to climate change is a key A strength of the board stems from the diversity responsibility of the board. We provide the board of perspectives and understanding that arises with regular updates on progress against our ESG from discussions involving individuals of varied goals and initiatives. backgrounds and experience. Although the Explore Dell Technologies’ Board of Directors board of directors has not established any governance information. formal diversity policy to be used to identify director nominees, when assessing a candidate’s These governance bodies are composed of members background and experience, the board of directors takes into consideration a broad range from various teams across Dell who create an of factors, including a candidate’s gender, age, integrated perspective and approach to ESG. race and ethnicity. We currently have two INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 12
ESG GOVERNANCE Key responsibilities of our ESG A comprehensive approach to bodies identifying and managing risks ESG Steering Committee and opportunities • Sets and leads our annual ESG strategy. Risk management comprises processes to identify potential, significant risks — and manage • Establishes the necessary resources to support those risks — to enhance the likelihood of ESG efforts. achieving Dell’s business objectives. We leverage • Reviews progress of our ESG goals periodically. ESG-related governance bodies to identify • Supports efforts to improve performance and manage risks that may impact our ESG- related business objectives. Please refer to our against priority ESG ratings, rankings and SEC Form 10-K, Item 1A – Risk Factors, for a awards. description of important risks that may impact • Monitors regulatory updates to regional– and the company’s performance. country–specific ESG requirements. In 2020, we carried out a scenario analysis in ESG Interlock Team alignment with the guidance of the Task Force on Climate-related Financial Disclosures (TCFD). • Enables the execution of our ESG strategy. In doing so, we assessed the potential impacts to Dell and its stakeholders in the context of • Stays aligned and informed on key risks, future climate-related scenarios. This analysis emerging trends and stakeholder priorities. informed our climate strategy and helped us • Influences decisions that could impact the enhance climate-related engagement internally. company’s ESG strategy. We continue to leverage the TCFD framework • Monitors performance against our ESG goals to review and communicate our governance, risk and priority ESG ratings, rankings and awards. and opportunity management of climate issues. • Serves as a conduit to other councils and/or More detail on our climate risks and opportunities can be found in our CDP climate change stakeholders groups. questionnaire, section C2. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 13
Stakeholder engagement and * ESG materiality Stakeholder engagement and a global Going forward we will continue to align our ESG understanding of the ESG topics that are most performance and reporting with these topics important to our stakeholders are critical inputs through our 2030 goals and our referencing that inform our broader ESG strategy. of frameworks, such as the Global Reporting We have conducted an ESG materiality Initiative (GRI) Standards and the SASB assessment to identify the ESG topics that Standards. We continue to work on becoming are most important to stakeholders, as well as increasingly aligned with GRI Standards and SASB those where Dell Technologies can play the most Standards metrics, as informed by our analysis. meaningful role. We used this analysis to guide our ESG Plan for 2030 to focus resources on areas where we have the greatest opportunities for growth and leadership or the biggest ESG risks to mitigate. We regularly refresh this analysis to capture the changing circumstances of the previous year and to adopt a more dynamic approach to identifying key ESG topics. Experts across the business and within our ESG governing bodies determined the opportunities and risks associated with each of these topics. * ESG Materiality: References to information in this report should not be construed as a characterization regarding the materiality of such information to our business or financial results or for purposes of U.S. securities or other applicable law. Any references in this report to “materiality” refer to such term in the Please see the Glossary for definitions of these material topics → context of ESG reporting and strategy. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 14
REPORTING FRAMEWORKS At Dell Technologies, we believe reporting is key to accountability in ESG We’re constantly working to improve our ESG Additionally, we describe how our business include some climate-related data in their periodic reporting with this in mind. One of the key activities contribute to the U.N. Sustainable financial reports. aspects of our reporting is the consideration Development Goals. More details on this are In both instances, we have proactively sought of internationally recognized frameworks and available on page 16 of this document and out opportunities to have a seat at the table to guidelines. throughout our goals dashboard on pages 26-34. support the initiatives and influence the new rules We publish stand-alone indexes based on We have also adopted the recommendations and guidelines. We are working to have a voice on the Global Reporting Initiative (GRI) and the of the Task Force on Climate-related Financial this and are actively preparing to comply with the industry-specific standards for technology Disclosures (TCFD) in our climate change-related upcoming regulations. and communications hardware and software reporting (see pages 11-13 for details on our For Dell Technologies, reporting on metrics that established by the Sustainability Accounting ESG governance). We’ve carried out a scenario matter most to our stakeholders is a continuation Standards Board (SASB). analysis in alignment with TCFD’s guidance that is of something we’ve understood for a long time: Dell, alongside 25 other companies, was one detailed in our CDP climate change questionnaire, A sustainable, successful company has to deliver of the initial signatories of the initiative by the section C3.1b. Additionally, our GRI Index value on multiple fronts and transparently disclose World Economic Forum (WEF) to align and provides mapping of GRI disclosures to TCFD’s its performance to its stakeholders. focus corporate ESG disclosures. As part of this, recommendations. Dell has committed to reporting on the WEF There are several efforts underway to simplify View the current and archived copies of all our framework’s core Stakeholder Capitalism Metrics, the reporting landscape and standardize the ESG reports. which offer a set of 21 universal, comparable way companies disclose their ESG information. disclosures focused on people, planet, prosperity For instance, the recently created International and principles of governance. This common Sustainability Standards Board (ISSB) aims to metrics standard, as defined by the WEF’s create sustainability disclosure standards to International Business Council, is helping to provide stakeholders with comparable, reliable create consistency and simplify the way all of our and transparent disclosures. stakeholders can evaluate us. In parallel, there is a growing trend to mandate Our GRI, SASB and WEF indexes are ESG disclosures. In several countries, rules are available here. being prepared that will require companies to INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 15
Our support for the U.N. SDGs Advancing Sustainability Cultivating Inclusion Transforming Lives Our sustainability goals deliver on SDG targets by Reducing inequalities begins with a corporate Our transforming lives goals deliver on SDG working to minimize impact and support positive culture that is diverse, inclusive and supportive of targets by enabling a future that realizes better The Sustainable Development Goals environmental outcomes. For example, we are all team members. With expanded recruiting and health and improved education for all in a digital (SDGs) adopted by the U.N. Member contributing to responsible consumption and innovative hiring, we will attract future talent to economy. For example, we are driving better States in 2015 set forth a global vision production by accelerating the circular economy. drive economic opportunities. health with Digital LifeCare. for peace and prosperity for people and the planet. We believe technology will play a key role in many of these 17 ambitious, interrelated goals, and we see opportunities aligned with our own commitments to create a positive social impact. All of our goals for 2030 and beyond are mapped to the specific SDGs that we believe they support. We see the potential to contribute to the SDGs in the following areas, with our unwavering commitment to ethics and privacy embedded throughout: INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 16
ADVOCACY Engaging with stakeholders on matters of public interest As countries, communities and businesses Advancing Sustainability Cultivating inclusion continue to respond to mounting concerns With growing concerns around climate change We feel a deep obligation to act where we around environmental, social and economic and the environmental impacts of e-waste, we can and use our platform to promote positive challenges, we recognize that both continued engagement to make our position on change for all. Since helping found the steering governments and companies have roles to these issues clear. committee for America Competes in 2020, Dell play. That’s why we seek to partner with • Published our Circular Economy Principles has been an active member of this national the public sector on a variety of issues. that also articulated our position on repair and business coalition. America Competes focuses on launched them externally at the start of FY23. making the economic case for LGBTQ equality, particularly in federal law and policy. • Joined Business Roundtable (BRT) and • Signed the America Competes letter of Information Technology Industry Council businesses speaking out against legislation that As we formulate our positions on policy- (ITI) members in support of rejoining the related issues and decide where and when Paris climate agreement and the bipartisan singles out LGBTQ individuals for exclusion or to engage on matters of public interest, we Infrastructure Investment and Jobs Act of 2021. different treatment. engage our stakeholder groups: team members, • In advance of COP26, Michael Dell joined • Continued serving on the Texas Competes customers, partners, communities, investors and more than 90 CEOs as members of the World steering committee. Opposed the transgender policymakers. Here we share highlights from our Economic Forum’s Alliance of CEO Climate youth sports ban legislation in Texas, including FY22 advocacy work. Leaders in signing a public letter sharing testifying before a legislative committee on their readiness to work side by side with Senate Bill 29 and again on House Bill 25. governments in a joint public–private effort to • Continued support of the Time to Vote coalition, accelerate the race to net zero. ensuring our team members in the U.S. had • Joined Digital Climate Alliance to help identify access to time off and resources to vote in ways technology can be leveraged to address their communities. And as an extension of our climate change. commitment to access, we spoke out regarding • Continued membership in GridWise Alliance restrictive voting legislation in our home state. to elevate the use of technology to modernize • Additionally, Dell Technologies and Michael Dell electrical grids. alongside 100+ US corporations signed onto the • Expanded and published an updated Dell Human “We Stand for Democracy” letter. Rights Policy. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 17
ADVOCACY Accelerating digital inclusion 12th grade around the U.S., and providing many more devices at significant discounts. Families Dell Technologies advocated for passage of in cities from New York to Oakland, Calif., and the U.S. bipartisan infrastructure bill and similar in rural areas like the Rio Grande Valley, are now policies that provide equal access to technology equipped at home for virtual learning and more. and advanced connectivity such as 5G. We • Supported Giga, an initiative launched recognize that access to connectivity is key to by UNICEF USA and International education, healthcare and a globally competitive Telecommunication Union, to connect every and diverse workforce. We believe that the school to the internet, as well as create private and public sectors can work together to stronger infrastructures of hope and address digital inequities. In FY22, we: opportunity. Giga maps schools’ internet • Collaborated with the Global Business Coalition access in real time, creates models for for Education to sponsor the Big Ideas, Bright innovative financing and supports Cities Challenge, which encourages bold ideas governments contracting for connectivity. from cities across the U.S. to address the skills • Joined the World Economic Forum’s EDISON gap. The challenge awards cash grants and Alliance, whose mission is to mobilize global in-kind business support to cities with the most and cross-sectoral action for social and powerful ideas to make their communities more economic outcomes through connectivity and “skills friendly.” rapid digital development. • Announced the Digital Inclusion Impact Group Visit Dell Technologies social impact public policy in which Dell and the U.K. government, as advocacy for information. well as others from business and civic society come together to support initiatives helping communities experiencing digital exclusion. The pilot project, Dell Donate to Educate, helps support U.K. children and their families with access to the right technology at school Together our efforts with Take on Race have narrowed and home. the digital divide by donating thousands of computers and • Engaged as a member of the Take on Race tablets to students in grades K-12 around the U.S., and corporate coalition for advancing racial equity. providing many more devices at significant discounts. Together our efforts have narrowed the digital divide by donating thousands of computers and tablets to students in kindergarten through INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 18
COMMITMENT TO HUMAN RIGHTS We respect and support the internationally recognized human rights of all people At Dell Technologies, upholding and Our approach advancing respect for the fundamental We believe everyone deserves to be treated human rights of all people is core to equally with dignity and respect, and we are our business strategy, purpose, and committed to responsible, ethical, inclusive commitment to drive human progress and and sustainable business practices. These create a positive and lasting social impact. commitments are embedded in the Dell Human Rights Policy, which reflects our global commitment to respect the rights of all our stakeholders, including Dell team members, our suppliers, our contractors and subcontractors at We strive to align our approach and actions to any tier, partners, resellers, and others impacted fulfill this commitment with the United Nations by our value chain. Guiding Principles on Business and Human Rights and the Principles of the United Nations In FY22 we updated the Dell Human Rights Policy Global Compact, to which Dell is a signatory. to further reinforce and clarify alignment with We are committed to making certain we are not expectations of the U.N. Guiding Principles. To complicit in human rights violations, and we hold implement our commitment to respect human our suppliers and other business partners to this rights, we have also formalized and embedded same standard. other policies, human rights due diligence and governance protocols throughout our business. These are addressed in the Dell Human Rights Policy and also referenced throughout this report. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 19
COMMITMENT TO HUMAN RIGHTS Governance Board of Directors Environmental, Social and Governance ESG Interlock Team Many internal organizations across Dell are (ESG) Steering Committee Dell’s Board of Directors oversees the This team ensures cross organizational awareness engaged to operationalize fulfillment of our establishment and maintenance of our This management committee is made up and engagement on relevant priorities and commitments across our value chain. governance, compliance and risk management of internal leaders from Dell’s corporate policies, and an integrated approach to fulfillment processes and procedures to promote business sustainability; diversity and inclusion; human of our related commitments. conduct with the highest standards of resources; giving and social innovation; ethics responsibility, ethics, integrity and respect for and privacy; supply chain; corporate affairs; human rights. government affairs; internal audit; legal; risk Our chief executive officer, who is also chair of management; investor relations; accounting; our Board of Directors, approves Dell’s Human and security organizations. The ESG Steering Rights Policy. Committee leads the programs and policies to uphold these standards and to advance Dell’s ESG strategy. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 20
COMMITMENT TO HUMAN RIGHTS Salient Risks Value Chain Impact Area(s) Policies Additional Resources and Reporting Awareness of salient risks Discrimination Own Operations, Dell Code of Conduct Cultivating Inclusion section of this report We periodically engage third-party experts to Supply Chain, Products Dell Diversity & Equal Opportunity Dell’s Guiding Principles on Accessibility conduct human rights impact assessments (Accessibility) Employment Policy (HRIAs) to ensure and advance our Dell Supplier Principles understanding of human rights risks and impacts. Dell Human Rights Policy These assessments inform Dell’s policies, support risk mitigation and governance practices, and Responsible Business Alliance (RBA) Code inform our strategic priorities. of Conduct Our last corporate-level HRIA, completed in Child Labor, Forced Supply Chain Dell Human Rights Policy Supply Chain Sustainability section of this report FY19, confirmed our awareness of our salient Labor human rights risks and impact areas (see table), RBA Code of Conduct Dell Statement Against Slavery and Human Trafficking and that we have the essential structures in Dell Vulnerable Worker Policy Dell Supplier Principles place to monitor and address our most significant risk areas. Dell Responsible Sourcing Policy We are dedicated to continually increasing our Health & Safety Own Operations, Supply Dell Human Rights Policy Health and Safety Metrics included in By the understanding and effective mitigation of actual, Chain, Products Numbers section of this report potential or emerging risks. The continued Global Occupational Health and Safety effectiveness and evolution of our human rights Policy Supply Chain Sustainability section of this report strategy is built on finding opportunities to RBA Code of Conduct Dell Product Safety Information accelerate positive impacts, as well as address risks. In FY23, we plan to initiate our next HRIA Dell Product Regulatory Compliance Policy Dell Supplier Principles to deepen our awareness of evolving risks and opportunities, and leverage insights to accelerate Privacy Own Operations, Supply Dell Code of Conduct Upholding Ethics & Privacy section of this report positive outcomes across our value chain. Chain, Products Dell Human Rights Policy Dell Supplier Principles The table provides an overview of the most Dell U.S. Privacy Statement significant human rights impact areas across our value chain, respective governing policies RBA Code of Conduct and expectations, and additional resources and references that further address these topics. Working Hours/Wages Supply Chain Dell Human Rights Policy Supply Chain Sustainability section of this report RBA Code of Conduct Dell Supplier Principles INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 21
COMMITMENT TO HUMAN RIGHTS Employees suppliers to comply with the RBA code and other requirements set out in our Dell Expectations to comply with laws and ethical Supplier Principles. business practices, including acting with integrity Our global commitment to respecting human and respecting the fundamental human rights rights extends to the responsible sourcing of of others are embedded in Dell Technologies’ materials used in our products and is underscored culture and policies and clearly set out in the in the Dell Responsible Sourcing Policy. We Dell Technologies Code of Conduct. Dell team are also involved in building an industry-wide members are required to complete annual Code of approach to responsible sourcing of minerals Conduct training and adhere to our code and the through groups like the Responsible Minerals policies, including the Dell Human Rights Policy Initiative. Comprehensive insights and FY22 and standards that flow from it. progress on human rights due diligence and other For FY22 updates and additional insights on our action we undertake to assess and address actual team member commitments and expectations, or potential risks, and advance positive outcomes refer to the Upholding Ethics & Privacy section of for people in our supply chain are featured in the this report. Supply Chain Sustainability section of this report. Business partners Public policy advocacy We also expect our business partners to maintain We see an opportunity to help drive lasting, a culture that embraces diversity, equity and positive change by helping to shape public policies inclusion and respects cultural differences, while that support and promote the full realization operating at the highest level of integrity and of fundamental human rights for all people. accountability. These expectations are clearly Our team works with various governmental defined in the Dell Technologies Code of Conduct bodies and engages with policymakers and for Partners. elected representatives to discuss issues that disproportionately impact underrepresented Supply chain groups, such as the digital divide. Our public policy advocacy efforts also focus on how technology Dell is a founding member of the Responsible can be leveraged to address economic injustices, Business Alliance (RBA), which embeds racial bias, health inequities and workforce requirements to uphold and ensure respect for readiness. For FY22 updates related to Dell’s human rights in the RBA Code of Conduct. Dell Government Affairs and Human Rights, refer to adheres to these standards and also expects its the advocacy section of this report. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 22
COMMITMENT TO HUMAN RIGHTS What’s next Collaboration Through our ongoing due diligence We believe unique and diverse perspectives and governance practices we maintain are essential to expand and deepen our focus on current human rights risks understanding of actual and potential impacts, and continually monitor for emerging and they help guide our actions to drive or changing conditions. In FY22, we meaningful progress and positive outcomes. continued to integrate our human rights We value constructive engagements with, and impact priorities into internal, cross- insights from, stakeholders across our business functional ESG governance forums. In and value chain. We also believe some human FY22, these forums, and contributions rights issues can be addressed most effectively of the many engaged functions, were by working in partnership with others. To drive leveraged to complete updates to and progress on complex challenges, we engage approval of the Dell Human Rights Policy. and participate in collaborative initiatives with In FY23, aligned with our commitment to suppliers, business partners, customers, local continuous learning and improvement, communities, industry and cross-sector working members of these ESG forums and groups, and other organizations. Examples of other subject matter experts from across our work and progress are featured in other our business, will be engaged on our sections of this report, including Supply Chain next human rights impact assessment. Sustainability, Advocacy and Transforming Lives. This collaboration across the business is essential to our ambition and ability to drive a more holistic approach to mitigating risks and promoting positive impacts across our value chain. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 23
Our goals for 2030 and beyond With our plan, we are taking our next bold step toward driving positive impact for people and the planet. We are using these goals to build our impact strategies over the next decade. Please see our Goals Dashboard for our progress toward these goals. ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING ETHICS & PRIVACY Moonshot Goal Moonshot Goal Moonshot Goal Moonshot Goal By 2030, for every product a customer buys, we By 2030, 50% of our global workforce and 40% of With our technology and scale, we will advance By 2030, we will fully automate our data control will reuse or recycle an equivalent product. 100% our global people leaders will be those who identify health and education through digital inclusion processes, making it easier for our customers to of our packaging will be made from recycled or as women. initiatives aimed at delivering enduring results for control their personal data. renewable material. More than half of our product 1 billion people by 2030. content will be made from recycled or renewable material. ADDITIONAL IMPACT GOALS ADDITIONAL IMPACT GOALS ADDITIONAL IMPACT GOALS ADDITIONAL IMPACT GOALS • We will reach net zero greenhouse gas emissions across • By 2030, 25% of our U.S. workforce and 15% of our U.S. • Each year through 2030, 50% of the people empowered • Each year through 2030, 100% of our employees will scopes 1, 2 and 3 by 2050. people leaders will be those who identify as Black/African by our social and education initiatives will be those who demonstrate their commitment to our values. • We will reduce scopes 1 and 2 greenhouse gas emissions American or Hispanic/Latino. identify as girls, women or underrepresented groups. • By 2030, 100% of the partners we do business with will by 50% by 2030. • Each year through 2030, 90% of our employees will rate • By 2030, we will use our expertise and technology to demonstrate their commitment to our values. • We will source 75% of electricity from renewable sources their job as meaningful. help 1,000 nonprofit partners digitally transform to better across all Dell Technologies facilities by 2030 — and • By 2030, 50% of our employees will participate in serve their communities. 100% by 2040. Employee Resource Groups to drive social impact. • Each year through 2030, 75% of our employees will • We will partner with our direct material suppliers to meet • Each year through 2030, 75% of our employees will participate in giving or volunteerism in their communities. a science-based greenhouse gas emissions reduction believe their leader is inspiring. target of 60% per unit revenue by 2030. • By 2030, 95% of our employees will participate in annual • We will drive sustainability improvements in our global foundational learning on key topics such as unconscious workplaces through 2030. bias, harassment, microaggression and privilege. • Each year through 2030, we will show continued commitments to provide healthy work environments where people can thrive. • Each year through 2030, we will deliver future-ready skills development for workers in our supply chain. • Each year through 2030, we will continue engagement with the people who make our products. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 24
Goals Dashboard Our Goals Dashboard focuses on year-over-year goal progress as compared to our baseline data for our 2030 goals. We provide our goal methodologies at the back of this section. Baselines for all of our goals reflect progress already achieved or establish a point by which to measure our progress as of February 2020, unless otherwise stated. The metrics and information presented throughout our ESG reports and plans address outcomes we are working to achieve for Dell Technologies (“Dell,” “we” or “our”). Data for RSA, Secureworks, Boomi, Virtustream and Dell Financial Services is included where relevant. Data for RSA is included only until the date of the divestiture, Sept. 1, 2020. Data for Boomi is included only until the date of the divestiture, Oct. 1, 2021. Data for VMware is excluded for all periods presented within this report. Dell completed its spin-off of VMware on Nov. 1, 2021. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 25
Advancing Sustainability Goals Goal Unit of Measure FY20 FY21 FY22 About Our Performance in FY22 MOONSHOT GOAL By 2030, for every product a customer buys, we will reuse or recycle an equivalent product. 100% of our packaging will be made from recycled or renewable material. More than half of our product content will be made from recycled or renewable material. By 2030, for every product a customer Percentage of product collected 9.1% 9.6% 12.1% In FY22, Dell recovered 12.1% of products sold to our customers (measured as total units collected for recycling and reuse, divided by buys, we will reuse or recycle an equivalent (total units captured for recycling total number of units sold). This represents a 2.5 percentage point improvement from the previous year. We attribute the growth to 3 product and reuse over the amount of the introduction of new and scaling of existing recycling services. products sold) By 2030, 100% of our packaging will be Percentage of recycled/renewable 85.0% 87.0% 90.2% In FY22, 90.2% of our packaging was made from recycled or renewable materials. This represents 3.2 percentage point improvement made from recycled or renewable material material content in packaging from the previous year. We attribute this increase to improved sourcing options, material selection and to the introduction of alternatives to virgin plastic bags for laptops. This metric only applies to known Dell customer packaging programs.4 By 2030, more than half of our product Percentage of recycled/renewable 3.5% 3.9% 5.9% In FY22, 5.9% of the material used in our products was made from recycled or renewable material content. This represents a 2.0 content will be made from recycled or content in products percentage point improvement from the previous year. We attribute this increase to the validation and inclusion of sustainable materials renewable material not previously accounted for (for example, certain recycled plastics, bioplastics, recycled steel and recycled aluminum) and the addition of adaptors for laptops and desktops. Third-party assurance for Scopes 1, 2 and 3 greenhouse gas emissions, total energy, renewable electricity, packaging and water withdrawal is currently underway. An updated version of this report will be provided once these figures are assured. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 26
Advancing Sustainability Goals Goal Unit of Measure FY20 FY21 FY22 About Our Performance in FY22 We will reach net zero greenhouse gas emissions across scopes 1, 2 and 3 by 2050 Scope 1: Direct emissions Metric tons CO equivalent 57,000 44,200 45,600 In FY22, our scope 1 emissions increased by 1,400 metric tons. This represents a 20.0% decrease from our adjusted FY20 baseline. We 2 5 (MTCO2e) attribute the FY22 changes to a minor increase in fuel consumption compared to the previous year. Scope 2: Indirect emissions, market-based MTCOe 233,300 172,200 158,100 In FY22, we reduced our scope 2 market-based emissions by 14,100 metric tons. This represents a 32.2% decrease from our adjusted 2 FY20 baseline. We attribute the FY22 decrease to added renewable electricity purchases and to energy conservation activities, real estate right-sizing and the continuing impacts of COVID-19.6 Scope 3, Category 1: Purchased goods and MTCOe 8,758,600 8,767,800 N/A In FY21, we are reporting an increase in scope 3, category 1 emissions of 9,200 metric tons compared to our FY20 baseline. This 2 services increase is due to product demand shifts during the first year of the pandemic. For FY22, we have improved our calculation methodology and reporting approach to scope 3, category 1. Our revised approach now incorporates our fiscal year spend with our indirect and direct suppliers’ scope 3 category 1 reports, where available. This ensures our calculations use our most recent supplier emissions data, as well as direct and indirect spend from the same reporting period. As a result, we are not reporting FY22 progress as this information is dependent on supplier emissions data that will not be available until 7 January 2023. Scope 3, Category 3: Upstream fuel- and MTCOe 131,700 105,500 143,000 In FY22, the scope 3 fuel- and energy-related activities emissions increased by 37,500 metric tons. This represents a 8.6% increase 2 energy-related activities from our FY20 baseline. While this category is related to the purchase of fuels and electricity, it also depends on 3rd party emission factors. We attribute the FY22 increase mainly to the year over year changes in the published emission factors. Scope 3, Category 4: Upstream MTCOe 763,400 1,098,200 1,336,100 In FY22, our scope 3 upstream transportation/ distribution travel emissions increased by 572,754 metric tons compared to our starting 2 transportation/distribution year, FY20. This represents a 75.0% increase. We attribute this to increased shipments by air and an increase in accuracy through additional information sharing with our logistics carriers. Scope 3, Category 6: Business travel MTCOe 314,300 61,400 19,600 In FY22, our scope 3 business travel emissions were reduced by 41,800 metric tons. This represents a 93.8% decrease from our FY20 2 baseline, even while adding two additional categories of emissions, hotel stays and rental cars starting with our FY21 numbers. We attribute the FY22 decrease to additional reduced business travel due to COVID-19. Third-party assurance for Scopes 1, 2 and 3 greenhouse gas emissions, total energy, renewable electricity, packaging and water withdrawal is currently underway. An updated version of this report will be provided once these figures are assured. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 27
Advancing Sustainability Goals Goal Unit of Measure FY20 FY21 FY22 About Our Performance in FY22 Scope 3, Category 11: Use of sold product MTCOe 15,790,000 14,260,000 16,160,000 In FY22, our scope 3 emissions from use of sold product increased by 1,900,000 metric tons. This represents a 2.3% increase from our 2 starting year, FY20. We attribute this increase to multiple factors, the most significant being an increase in our unit sales from FY21 to 8 FY22. We will reduce scopes 1 and MTCOe of scopes 1 and 2 290,300 216,300 203,700 In FY22, we reduced our combined scopes 1 and 2 (market–based) greenhouse gas emissions by 12,600 metric tons. This represents a 2 2 greenhouse gas (GHG) (market-based) GHG emissions 29.8% decrease from our adjusted FY20 baseline. We attribute the FY22 decrease to additional renewable electricity purchases, energy 9 emissions by 50% by 2030 conservation activities, real estate right-sizing and the continuing impacts of COVID-19. We will source 75% of electricity Percentage of electricity generated 46% 54% 55% In FY22, we increased our electricity from renewable sources to 55%. This represents a 9 percentage point increase above our from renewable sources across from renewable sources adjusted FY20 baseline. We attribute this increase to additional renewable electricity purchases in the U.S., Europe and India, additional on-site solar in Asia, and reduced electricity consumption in our operations due to energy conservation activities, real estate right- all Dell Technologies facilities by 10 sizing and the continuing impacts of COVID-19 on our facility-based operations. 2030 — and 100% by 2040 11 12 We will partner with our direct MTCOe of Scope 3, Category 1 43.7 43.8 42.4 We have reduced our emissions from direct material suppliers per $MM 3.0% from our FY20 baseline (a MTCO2e to $MM ratio of 42.4 2 material suppliers to meet a GHG emissions per $MM in FY22, vs. 43.7 in FY20). science-based GHG emissions reduction target of 60% per unit revenue by 2030 We will drive sustainability improvements in our global workplaces through 2030 We will reduce freshwater use in our Dell Megaliters of fresh water used in 68 45 39 In FY22, we decreased the use of freshwater in high water stress locales by 6 megaliters. This represents a 42.6% decrease in these Technologies-owned facilities by 25% in high water stress locales locales from our FY20 baseline. We attribute this decrease to conservation activities and the continuing impacts of COVID-19 on our locales with high water stress facility-based operations. We will reduce freshwater use in our Megaliters of fresh water used in 1,358 1,161 1,098 In FY22, we decreased the use of freshwater in other locales by 63 megaliters. This represents a 19.1% decrease in these locales Dell Technologies-owned facilities by other locales from our FY20 baseline. We attribute this decrease to conservation activities, real estate right-sizing and the continuing impacts of 10% elsewhere COVID-19 on our facility-based operations. Third-party assurance for Scopes 1, 2 and 3 greenhouse gas emissions, total energy, renewable electricity, packaging and water withdrawal is currently underway. An updated version of this report will be provided once these figures are assured. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 28
Advancing Sustainability Goals Goal Unit of Measure FY20 FY21 FY22 About Our Performance in FY22 We will reduce workplace plastic Metric tons of plastic waste in N/A N/A N/A Our goal focuses on reducing plastic and plastic foam waste from food service and other general workplace activities. With team waste by 90% our workplaces member presence at our workplaces impacted by the pandemic, any reduction reported would not reflect business-as-usual plastic consumption levels. As changes to where and how our team members work evolve, we will evaluate reporting on this or an alternative 13 metric in the future. Each year through 2030, we will Total hours of social and 41,733 61,124 61,587 In FY22, Dell provided 61,587 hours of social and environmental training to supply chain team members. This represents an 0.8% show continued commitments environmental responsibility increase over the prior reporting period and a 47.6% increase since we began tracking this metric. We attribute our progress to to provide healthy work training provided to the people in improved communication. Dell’s global supply chain environments where people can thrive Each year through 2030, we Total number of future-ready 12,723 6,592 13,045 In FY22, Dell-badged team members completed 13,045 hours of future-ready skills training at our in-house factories. This represents will deliver future-ready skills skills training hours at in-house (CY19) (CY20) a 97.9% increase over our previous reporting period and a 2.5% increase since we first began tracking this metric. We attribute development for workers in our manufacturing locations this increase to growth in both virtual and in-person training methodologies and expansion in reach and impact of our training skills development opportunities. supply chain Total number of future-ready skills N/A 99,271 144,658 In FY22, Dell recorded 144,658 future-ready skills training hours through our pilot program with two suppliers. This represents a 45.7% training hours in supply chain (CY20 increase over the prior period. We attribute this increase to better engagement with our supplier partners. Baseline) INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 29
Advancing Sustainability Goals Goal Unit of Measure FY20 FY21 FY22 About Our Performance in FY22 Each year through 2030, we will Number of feedback interviews 12,487 11,699 12,641 In FY22, 12,641 feedback interviews were conducted with supply chain workers during Responsible Business Alliance (RBA)-certified, continue engagement with the conducted with supply chain (CY19) (CY20) third-party factory audits. This represents an 8.1% increase over our previous reporting period and a 1.2% increase since we began people who make our products workers reporting this metric. We attribute this increase to an ability to increase the number of supplier audits we were able to complete as COVID-19 restrictions eased. Percentage of manufacturing 99% 100% 100% In FY22, 100% of our manufacturing facilities had feedback channels in place. There is no change in results for this metric since the facilities with feedback channels (CY19) (CY20) previous reporting period, and this represents a 1.0% increase compared to when we first began reporting this metric. We attribute this in place increase to our continued support of our manufacturing facilities. Number of ideation sessions 303 271 271 In FY22, Dell factory team members participated in 271 ideation sessions at in-house factories. There is no change in results for in-house this metric since the previous reporting period, and this represents a 10.6% decrease compared to when we first began reporting this metric. We are committed to holding events that drive creative best practice sharing while adhering to COVID-19 health and safety protocols. In-house innovation ideas 620 826 1,405 In FY22, we implemented 1,405 Dell factory team member innovation ideas as projects. This represents an increase of 70.1% and implemented as projects an increase of 126.6% compared to when we first began reporting this metric. We attribute this increase to the maturation of our innovation process through centralized tools, resources and event planning led by our Culture of Innovation team. Level of participation in in-house 97% 86% 92% In FY22, 92.0% of Dell factory team members participated in in-house ideation sessions. This represents a 7.0% increase over the ideation sessions previous reporting period and a 5.2% decrease compared to when we first began reporting on this metric. We attribute our recent increase to stronger coordination across all our Dell factory locations to create meaningful, exciting and innovation-focused events for frontline team members and managers. Number of ideas submitted in N/A N/A 8,131 In FY22, 8,131 ideas were submitted by workers to management as part of a pilot program with two suppliers to support worker supply chain engagement and drive innovation. Number of ideas implemented in N/A N/A 7,763 In FY22, 7,763 ideas were implemented as part of a pilot program with two suppliers to drive innovation through worker engagement. supply chain INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 30
Cultivating Inclusion Goals Goal Unit of Measure FY20 FY21 FY22 About Our Performance in FY22 MOONSHOT GOAL By 2030, 50% of our global workforce and 40% of our global people leaders will be those who identify as women By 2030, 50% of our global workforce will Percentage of global workforce 31.1% 31.8% 33.9% In FY22, 33.9% of our global workforce identified as women. This represents an annual addition of 2.1 percentage points toward our be those who identify as women who identify as women goal. We attribute this progress toward our goal to continued focus on our 2030 Cultivating Inclusion goals by Dell Technologies’ leadership and team members, as well as inclusive culture practices in hiring, developing and retaining talent. By 2030, 40% of our global people leaders Percentage of people leaders in 24.4% 25.8% 28.2% In FY22, 28.2% of our people leaders identified as women. This represents an annual addition of 2.4 percentage points toward our goal. will be those who identify as women global workforce who identify We attribute this progress to our continued focus on our 2030 Cultivating Inclusion goals by Dell Technologies’ leadership and team as women members, as well as inclusive culture practices in hiring, developing and retaining talent. By 2030, 25% of our U.S. workforce and 15% of our U.S. people leaders will be those who identify as Black/African American or Hispanic/Latino By 2030, 25% of our U.S. workforce will Percentage of U.S. workforce who 13.3% 14.2% 15.4% In FY22, 15.4% of our U.S. workforce identified as Black/African American or Hispanic/Latino. This represents an annual addition of 1.2 be those who identify as Black/African identify as Black/African American percentage points toward our goal. We attribute this progress to our continued focus on our 2030 Cultivating Inclusion goals by Dell American or Hispanic/Latino or Hispanic/Latino Technologies’ leadership and team members, as well as university relations strategy and alignment to historically Black colleges and universities, minority–serving institutions, Hispanic–serving institutions, and expansion to community colleges. By 2030, 15% of our U.S. people leaders Percentage of people leaders in 9.9% 11.4% 12.2% In FY22, 12.2% of our U.S. people leaders identified as Black/African American or Hispanic/Latino. This represents an annual addition of will be those who identify as Black/African the U.S. workforce who identify 0.8 percentage points toward our goal. We attribute this progress to our continued focus on our 2030 Cultivating Inclusion goals by Dell American or Hispanic/Latino as Black/African American or Technologies’ leadership and team members, as well as inclusive culture practices in hiring, developing and retaining talent. Hispanic/Latino INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 31
Cultivating Inclusion Goals Goal Unit of Measure FY20 FY21 FY22 About Our Performance in FY22 Each year through 2030, 90% of Percentage of employees who rate 93% 91% 88% In FY22, 88% of our employees rated their job as meaningful (measured in FY23). This represents a 3-percentage point decrease our employees will rate their job their job as meaningful compared to our FY21 performance. This could be partly attributed to our shift to measure employees’ sense of personal as meaningful accomplishment in their work, as we’ve seen this is a primary driver of energy and engagement. Other data from our annual engagement survey indicates employees believe in our overall purpose – 88% of employees said Dell Technologies is contributing to the world and driving human progress more than other companies, and 92% saw a clear link between their work and Dell Technologies’ 14 objectives. By 2030, 50% of our employees Percentage of employees 33% 44% 47% In FY22, 47% of employees participated in one or more ERG. This represents an annual addition of 3.0 percentage points toward our will participate in Employee participating in ERGs goal. We attribute this progress to our continued focus on our 2030 Cultivating Inclusion goals by Dell Technologies’ leadership and Resource Groups (ERGs) to team members, as well as extensive ERG efforts connecting and engaging team members during the pandemic, the expansion of ERGs into new regions, and cross-ERG collaborations on key events and initiatives. drive social impact Each year through 2030, 75% of Percentage of employees who 83% 83% 87% In FY22, 87% of our employees believed their leader was inspiring (measured in FY23). This represents a 4-percentage point increase our employees will believe their believe their leader is inspiring compared to our FY21 performance. Through a challenging past few years, our leaders still consistently inspire their team members. In leader is inspiring our annual engagement survey, two of our highest scoring questions were about our leaders – 93% of employees believed their leader has the skills, knowledge and experience to lead their team into the future, and 93% of employees said their leader cared about their 15 well-being, both personally and professionally. By 2030, 95% of our Percentage of employees 15% 33% 99% In FY22, 99.6% of our employees participated in annual foundational learning on topics related to inclusion. The 66.6 percentage point employees will participate in participating in annual foundational increase allowed us to surpass our goal of 95%. We attribute this increase to our launch of an innovative, new e-learning experience annual foundational learning learning titled Be the Change, available to all employees in various languages. Transitioning to a shorter, self-paced learning model enabled us to broadly scale our foundational learning program across the company. In addition, we provided leader resources to drive more inclusive on key topics, such as conversations between leaders and team members. unconscious bias, harassment, microaggression and privilege INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 32
Transforming Lives Goals Goal Unit of Measure FY20 FY21 FY22 About Our Performance in FY22 MOONSHOT GOAL Total number of people reached 46,588,226 93,565,402 159,742,242 In FY22, an additional 66 million people were reached through health and education initiatives. With this, cumulatively, we have reached (cumulative) approximately 160 million people. The increase from the year prior (approximately 47 million people reached in FY21) is due to increased With our technology and 16 impact of our Digital LifeCare program and increased reach from our strategic giving nonprofit partners. scale, we will advance health and education through digital inclusion initiatives aimed at delivering enduring results for 1 billion people by 2030 Each year through 2030, 50% Percentage of people reached 51.7% 56.1% 59.3% In FY22, 59.3% of the people empowered by our social and education initiatives were girls, women or underrepresented groups. of the people empowered who identify as girls, women or This represents a 3.2 percentage point increase compared to the year prior. We attribute this increase to our strategic giving and by our social and education underrepresented groups Digital LifeCare programs reaching more people in FY22. The inclusion of DWEN metrics and other Employee Resource Group (ERG) initiatives offer more comprehensive demographic reach data than our other programs. In FY22, we updated this definition to reflect initiatives will be those who more inclusive wording.17 identify as girls, women or underrepresented groups 18 By 2030, we will use our Total number of nonprofit 11 77 222 In FY22, 146 nonprofits received support through Dell. Cumulatively, this addition marks 222 unique nonprofits supported toward our expertise and technology to help partners supported in their goal of 1,000 over a FY20–FY30 time period. This improvement over the year prior (65 nonprofits supported in FY21) is attributed to a 19 1,000 nonprofit partners digitally digital transformation journey significant increase in the reach of our Pro Bono Consulting Workshop program, which was rolled out globally in FY22. (cumulative) transform to better serve their communities Each year through 2030, 75% Percentage of employees 59% 51% 50% In FY22, 50% of our global Dell team members participated in giving or volunteering. This represents a loss of 1 percentage point from of our employees will participate participating in giving/volunteerism the year prior. We attribute this decrease to the continued negative impact that COVID-19 had on in-person volunteerism and multiple in giving or volunteerism in their Dell offices remaining closed throughout FY22. communities INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 33
Upholding Ethics & Privacy Goals Goal FY20 FY21 FY22 MOONSHOT GOAL By 2030, we will fully automate our data control processes, making it easier for our customers to control their personal data Create a customer-facing privacy digital trust center as Focused on design and proof of concept. The features to Launched the new privacy trust center for registered Dell My In FY22 we launched the privacy trust center to be accessible to part of My Account features deactivate and reactivate an online My Account were completed Account users to be able to easily manage their data. users in 27 countries without requiring that they be logged into for 27 countries by end of FY20. their Dell My Account, providing transparency to Dell’s privacy practices to broad audiences. Expand our operational privacy compliance digital solution The features to deactivate and reactivate an online My Account Strengthened our internal procedures by embedding operational Through Dell Technologies’ global privacy program an additional (i.e., RSA Archer) to integrate with the newly created were completed for 27 countries by end of FY20. FY20 was privacy compliance controls and processes. six countries were included in the automated data subject rights privacy digital trust center in My Account focused on design and proof of concept for the features to access workflow integrating Archer with the privacy trust center. and delete personal data. Enhance our online dell.com privacy statement to provide In FY20, we updated Dell’s U.S. privacy statement to provide This item was completed in FY20. On an ongoing basis, we continue to monitor and update our statements in accordance with market greater transparency on Dell Technologies’ data collection greater transparency on Dell’s data collection and privacy practice. developments and regulatory transparency requirements. and privacy practice INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 34
Upholding Ethics & Privacy Goals Goal Unit of Measure FY20 FY21 FY22 About Our Performance in FY22 Each year through 2030, Percentage of Dell employees 100% 100% 100% In FY22, 100% of Dell employees completed assigned ethics and compliance training. In FY21, we reported 100% completion. We 100% of our employees who completed assigned ethics attribute this continued success to improvements that made training completion more accessible to a growing remote workforce, for will demonstrate their and compliance training example, through our My Ethics app. commitment to our values Percentage of Dell employees 100% 100% 100% In FY22, 100% of Dell employees agreed to the Dell Technologies Code of Conduct. In FY21, we reported 100% agreement. We who agreed to the Dell attribute this continued success to enhancements that make the Code of Conduct accessible and understandable, including through Technologies Code of Conduct searchable and modular content in the My Ethics app. By 2030, 100% of the Percentage of partners that N/A 96% 94% In FY22, 94% of partners agreed to our values and expectations as defined in the Code of Conduct for Partners. FY21 represents partners we do business agreed to the Code of Conduct our baseline for this goal. In FY22, we focused on tracking the agreement data from metal-tiered Solution Providers and Authorized with will demonstrate their for Partners Distributors in the Dell Technologies Partner Program (DTPP). commitment to our values Percentage of partners that N/A 100% 100% 100% of partners that passed the Dell Technologies Partner Program (DTPP) annual audit completed the Compliance Training for completed assigned ethics and Dell Partners course where required. FY21 represents our baseline for this goal. In FY22, we focused on tracking the completion data compliance training for metal-tiered Solution Providers and Authorized Commercial Distributors in the DTPP. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 35
Goals Methodology 20 Our 2030 ESG plan lays out ambitious goals for the decade and beyond. We believe how we track our progress is critical, and have invested significantly in identifying key performance indicators and measurement approaches. Here we describe the methodologies that support each of our goals. Advancing Sustainability We constantly work to refine how we measure to drive results and increase accuracy in reporting. As Metric: By 2030, more than half of our product content will be made from recycled or renewable we continue to advance our data collection processes, sharpen our measurement and GHG emissions material. reporting methodologies improve across our wider supply chain, our historical emissions numbers may be Methodology: We report the estimated amount of recycled and renewable materials as a percentage of restated. We will do this to provide the most accurate data possible while continuing to evolve to match total weight of materials used in all Dell Technologies-branded products sold within the reporting period. best practices. We continue to analyze our current material usage to refine the percentage-based metric and work By 2030, for every product a customer buys, we will reuse or recycle an equivalent product. 100% to develop standardized reporting processes within the material supply base. We’re collaborating with of our packaging will be made from recycled or renewable material. More than half of our product suppliers, material and recycling experts, and others to build out the data set and to drive for an industry- content will be made from recycled or renewable material. wide definition of renewable and recycled materials. Metric: By 2030, for every product a customer buys, we will reuse or recycle an equivalent product. We will reach net zero greenhouse gas (GHG) emissions across scopes 1, 2 and 3 by 2050 Methodology: In the past, we reported solely on the weight of used materials collected. Our current Measurement: MTCO e of scope 1: Direct emissions 2 methodology has progressed to allow for the combination of units collected and converted units from Methodology: GHG emissions are calculated according to the GHG Protocol accounting standards weight of material collected. We will continue to enhance the methodology toward a more accurate unit and guidance. measure. We’re intensively collaborating with recycling partners to provide more granular reports with details for product categories collected. Measurement: MTCO e of scope 2: Indirect emissions, market-based 2 Metric: By 2030, 100% of our packaging will be made from recycled or renewable material. Methodology: GHG emissions are calculated according to the GHG Protocol accounting standards Methodology: The scope includes packaging of all Dell Technologies-branded materials sent to customers. and guidance. This measurement is based on survey responses from packaging suppliers across multiple lines of Measurement: MTCO e of scope 3, category 1: Purchased goods and services business, used to determine approximate percentages of recycled and virgin content in our packaging 2 by volume. Methodology: To calculate scope 3 category 1, we use a hybrid method that considers both supplier- reported allocated emissions and commodity-level EEIO emissions factors to ensure the most accurate possible estimate of our share of supplier footprints. By considering both methodologies per supplier, our approach aims to eliminate underestimation. This calculation is run for all suppliers, direct and indirect, with whom Dell has any spend and then totaled to arrive at our scope 3 category 1 number. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 36 FY22 ESG REPORT
GOALS METHODOLOGY: ADVANCING SUSTAINABILITY Measurement: MTCO e of scope 3, category 3: Upstream fuel- and energy-related activities For FY22 calculations, we have calculated emissions factors for our four regions of interest (OECD 2 Methodology: GHG emissions are calculated according to the GHG Protocol accounting standards and Americas, OECD Asia Oceania [minus China], OECD Europe, China) from the provisional CY2020 guidance. This category includes emissions related to the production of fuels and energy purchased and emissions factors published by the IEA for the OECD Americas and OECD Europe regions, and the consumed by Dell that are not included in scope 1 or scope 2. CY2019 emissions factors published by the IEA for OECD Asia Oceania (minus China) and China. The IEA has published provisional CY2020 emissions factors for OECD Asia Oceania, however, the published Measurement: MTCO e of scope 3, category 4: Upstream transportation/distribution numbers look to be clear outliers and are not confirmed through a detailed look at other IEA emissions 2 factors. Methodology: GHG emissions are calculated according to the GHG Protocol accounting standards and guidance. This category includes the emissions related to moving materials and products (by land, sea or We will reduce scopes 1 and 2 greenhouse gas emissions by 50% by 2030 air) or warehousing. This includes inbound logistics, outbound logistics and transportation/distribution. Measurement: MTCO e of scope 3, category 6: Business travel Methodology: This goal furthers the reduction efforts from our Legacy of Good 2020 Plan. GHG 2 emissions are calculated according to the GHG Protocol accounting standards and guidance. The GHG Methodology: GHG emissions are calculated according to the GHG Protocol accounting standards and emissions in this goal are the sum of our scope 1 emissions plus the scope 2 market-based emissions. guidance, considering business air, rail, car and hotel travel. This category does not include emissions from Dell-owned vehicles or use of our corporate jets, as these are included in our scope 1 calculations. The We will source 75% of electricity from renewable sources across all Dell facilities by 2030 — and FY20 baseline emissions included air and rail travel. In FY21, emissions for hotel stays and rental cars were 100% by 2040 added. Emissions from business air travel are adjusted to incorporate radiative forcing uplift. Methodology: The quantity of renewable electricity includes purchased electricity generated from wind, Measurement: MTCO e of scope 3, category 11: Use of sold product solar, hydroelectric and other renewable sources plus renewable electricity generated on-site, such as in 2 Methodology: Calculations for this goal are done through a three-step process. solar panels. Calculations follow the GHG Protocol accounting standards and guidance. First, we calculate the aggregate energy footprint for each product type. For client systems (inclusive We will partner with our direct material suppliers to meet a science-based greenhouse gas emissions of desktops and notebooks), monitors, servers and networking systems, this calculation is based on the reduction target of 60% per unit revenue by 2030 expected lifetime energy use for representative models and the number of units sold during the reporting Methodology: Dell uses financial allocation to help identify what share of our suppliers’ GHG emissions are period for each of these models. For storage systems, this calculation is based on the number of drive created through the production of Dell products. We compare these emissions year-over-year per unit units sold for each product line, the lifetime expected energy use of those drives, and a product line revenue to understand the emissions intensity of our supply chain. specific multiplier that accounts for the extra power required by the platform to support the drives in use. Second, the aggregate energy use for all product types is summed to give an aggregate energy footprint for all Dell hardware sold during the reporting period. Third, we calculate region-specific carbon footprints using IEA published emissions factors and a set of weighting factors that allocate energy use across those regions. The IEA emissions factors are then adjusted to account for GWP factor differences between IPCC AR4 and AR6. We sum the region-specific carbon footprints to estimate a worldwide scope 3, category 11 figure for Dell’s hardware portfolio. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 37
GOALS METHODOLOGY: ADVANCING SUSTAINABILITY We will drive sustainability improvements in our global workplaces through 2030 Each year through 2030, we will deliver future-ready skills development for workers in Metric: We will reduce freshwater use in our Dell-owned facilities by 25% in locales with high water our supply chain stress Methodology: The scope is the total future-ready skills training data for two key suppliers in Methodology: Water is used at Dell facilities primarily for domestic purposes, such as drinking, cooking, our pilot program. cleaning and toilet flushing, for cooling and for landscape irrigation; water is not used in our assembly Each year through 2030, we will continue engagement with the people who make our products processes. Freshwater use at each facility includes high-quality municipal and private source water, as well as water withdrawn from surface, groundwater and rainwater sources. Each facility’s water stress Measurement: Feedback interviews conducted with supply chain workers level is identified using the Aqueduct Water Risk Atlas’ overall water risk score. This goal applies to buildings that are owned and operated by Dell and are located in communities with overall water risk Methodology: The scope is the total number of interviews conducted during Responsible Business scores of “high” or “very high.” Alliance (RBA) audits of factories. These interviews are conducted in confidence by independent, third-party auditors. In previous reports, results for this goal were calculated using calendar year data. Metric: We will reduce freshwater use in our Dell-owned facilities by 10% elsewhere Beginning with reporting for FY22, results will be calculated using fiscal year data. Methodology: See above. This goal applies to buildings that are owned and operated by Dell and are Measurement: Manufacturing facilities with feedback channels in place located in communities with overall water risk scores below “high.” Methodology: This metric represents the percentage of Dell Technologies and high-risk supplier factories Metric: We will reduce workplace plastic waste by 90% who underwent audits and complied with the RBA Code requirement to have feedback channels in place. Methodology: This goal references the annual weight of plastic and plastic foam waste generated in Dell’s Data reported to track progress toward this goal is expected to evolve as we further develop our work operational and office-based activities (including Dell-provided food service) that is disposed, composted in this area. In previous reports, results for this goal were calculated using calendar year data. Beginning or sent off-site to be recycled. Due to the COVID-19 pandemic, we were unable to conduct a planned with reporting for FY22, results will be calculated using fiscal year data. study of plastic waste generation in our office facilities, so this baseline may be adjusted in the future Measurement: Ideation sessions in-house once operations return to normal. Methodology: The scope includes data collected by the Culture of Innovation Program at all Dell factories. Each year through 2030, we will show continued commitments to provide healthy work Measurement: In-house innovation ideas implemented as projects environments where people can thrive Methodology: This reflects the number of in-house innovation ideas being implemented as projects. The Methodology: The scope is the total number of hours of both online and face-to-face training provided scope includes data collected by the Culture of Innovation Program at all Dell Technologies factories. to Dell factory employees and suppliers on topics such as health and safety, energy efficiency, water management, forced labor and more. In previous reports, results for this goal were calculated using Measurement: Level of participation in in-house ideation sessions calendar year data. Beginning with reporting for FY22, results will be calculated using fiscal year data. Methodology: The scope includes data collected by the Culture of Innovation Program at Dell factories. Measurement: Number of ideas submitted in the supply chain Methodology: This reflects the number of ideas submitted by workers at two supplier sites participating in a Dell pilot project. The scope includes data collected by the two participating suppliers. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 38
GOALS METHODOLOGY Cultivating Inclusion By 2030, 50% of our global workforce and 40% of our global people leaders will identify as women Each year through 2030, 90% of our employees will rate their job as meaningful Metric: By 2030, 50% of our global workforce will be those who identify as women Methodology: Data for the reporting year is collected in the following year (e.g., FY22 is collected Methodology: Applies to our global workforce. The scope includes the percentage of individuals who self- and measured in FY23), since this optional survey asks employees to consider their previous year of identified as women. employment. This goal’s metric is based on the percent of favorable responses received for the survey query, “my work gives me a sense of personal accomplishment” during our annual, internal and optional Metric: By 2030, 40% of our global people leaders will be those who identify as women employee opinion survey of Dell Technologies full- and part-time employees. Methodology: Applies to our global workforce. The scope includes the percentage of individuals who self- By 2030, 50% of our employees will participate in Employee Resource Groups to drive social impact identified as women who are people leaders. Methodology: Currently, we report participation in Employee Resource Groups (ERGs) as the count of By 2030, 25% of our U.S. workforce and 15% of our U.S. people leaders will be those who identify as employees signed up for any of our 13 ERGs divided by the total employee population in scope. Black/African American or Hispanic/Latino Metric: By 2030, 25% of our U.S. workforce will be those who identify as Black/African American Each year through 2030, 75% of our employees will believe their leader is inspiring or Hispanic/Latino Methodology: Data for the reporting year is collected in the following year (e.g., FY22 is collected Methodology: Applies to our U.S. workforce. The scope includes the percentage of individuals who self- and measured in FY23), since this optional survey asks employees to consider their previous year of identified as Black/African American or Hispanic/Latino. employment. This goal’s metric is based on the percent of favorable responses received for the survey query, “my leader inspires me” during our annual, internal and optional employee opinion survey of Dell Metric: By 2030, 15% of our U.S. people leaders will be those who identify as Black/African Technologies full- and part-time employees. American or Hispanic/Latino Methodology: Applies to our U.S. workforce. The scope includes the percentage of individuals who self- By 2030, 95% of our employees will participate in annual foundational learning on key topics such as identified as Black/African American or Hispanic/Latino who are people leaders. unconscious bias, harassment, microaggression and privilege Methodology: This measurement is based on the percentage of Dell global employees who have completed Be the Change, which provides self-guided, on-demand foundational learning experiences regarding unconscious bias, intersectionality, in-groups and out-groups, equity, and microaggressions. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 39
GOALS METHODOLOGY Transforming Lives With our technology and scale, we will advance health and education through digital inclusion By 2030, we will use our expertise and technology to help 1,000 nonprofit partners digitally initiatives aimed at delivering enduring results for 1 billion people by 2030 transform to better serve their communities Methodology: The scope includes the total number of individuals reached directly or indirectly through Methodology: Currently, this measurement covers the number of nonprofit organizations that have Dell programs such as strategic giving and social innovation (e.g., Digital LifeCare). Due to the vast participated in a Tech Pro Bono program. We are developing measurements to include nonprofits that are geographical spread of data and limited capacity of partners to verify data at the granularity of each supported through other Dell efforts, including direct business unit giving and those organizations that beneficiary, our direct and indirect impact metrics are not a unique representation of lives impacted. benefit from organic, skill-based employee volunteering. Going forward we will be tracking unique representation for our direct impact. Indirect impact will not be Dell has invested in the development of a Digital Assessment Tool that is now available to nonprofits tracked uniquely due to the nature of the community outreach, and this practice is in line with common globally. This tool enables nonprofits to measure and determine their current digital capacity, identify measurement and evaluation practices across the industry. digital transformation priorities and recommended resources, and track their progress against those Each year through 2030, 50% of the people empowered by our social and education initiatives will priorities over time. The Digital Assessment Tool was developed by TechSoup, a third-party provider. be those who identify as girls, women or underrepresented groups Each year through 2030, 75% of our employees will participate in giving or volunteerism in their Methodology: This metric captures the percentage of those who identify as girls, women or communities underrepresented groups out of the total number of individuals reached within the reporting year. “Girls” Methodology: The scope includes the participation of Dell full-time badged employees who self-reported and “women” are individuals who self-identify as female. The term underrepresented includes but is through a third-party giving and volunteering platform. not limited to the following groups: girls or women, racial/ethnic minorities, beneficiaries requiring an accommodation (mental, physical, sensory, cognitive and neurodiverse disability), LGBTQIA+ persons, low socioeconomic groups. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 40
GOALS METHODOLOGY Upholding Ethics & Privacy By 2030, we will fully automate our data control processes, making it easier for our customers to Measurement: Dell Technologies employees who agreed to the Dell Code of Conduct control their personal data Methodology: The measurement is the number of Dell employees who self-certify that they will uphold Metric: Create a customer-facing privacy digital trust center as part of My Account features the Dell Technologies Code of Conduct with their completion of the annual online Code of Conduct Methodology: We will provide annual updates on our progress in moving toward full automation. training course, compared to the total number of active employees on file as of a specific date each year. Metric: Expand our operational privacy compliance digital solution (i.e., RSA Archer) to integrate By 2030, 100% of the partners we do business with will demonstrate their commitment to our values with the newly created privacy digital trust center in My Account Methodology: The measurement is the total number of partners who have agreed to the Code of Methodology: We will provide annual updates on our progress to fully delivering this goal. Conduct for Partners via the Dell Technologies Partner Program (DTPP) agreement, compared to the Metric: Enhance our online dell.com privacy statement to provide greater transparency on Dell’s total number of partners participating in the DTPP. data collection and privacy practice The measurement is the total number of partners that complete the Compliance Training for Dell Partners Methodology: We will provide annual updates on our progress. course, compared to the total number of partners. Each year through 2030, 100% of our employees will demonstrate their commitment to our values Measurement: Dell employees who completed assigned ethics and compliance training Methodology: The measurement is the number of Dell global employees who complete their assigned courses in the Learning Management System, compared to the total number of active employees on file as of a specific date each year. Additionally, Dell new hires are required to complete their training within 90 days of hire. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 41
ADVANCING SUSTAINABILITY We have a responsibility to protect our planet We work with our customers, partners, suppliers and communities to make an impact on the most pressing environmental issues. Core to our business, the power and scale of our global supply chain allow us to drive the highest standards of sustainability and ethical practices, holding ourselves accountable for our actions while driving improvements wherever possible. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 42
ADVANCING SUSTAINABILITY At the core of everything we do Our Advancing Sustainability goals align to these focus areas: We take action on climate change for our We accelerate the circular economy We champion the many people who build company, our customers and society The global population is growing, and with this growth people are our products Climate change is an economic, social and environmental challenge consuming more materials, which in turn could lead to negative With the power of our global supply chain, Dell has the scale and with increasingly evident consequences. Our focus on climate environmental impacts related to the extraction of raw material ability to drive responsible manufacturing. We insist upon ethical change spans decades and is a priority for our company and processing and increased carbon emissions. This reality is raising practices, respect and dignity for everyone creating our products; those we serve. Dell Technologies works throughout our entire concerns about climate change, waste and resource constraints. this is a condition for doing business with us. We partner with many value chain to reduce emissions across all scopes while validating But there is a choice. We can choose to change the system. By of our suppliers to help them develop the necessary insights and and incorporating additional carbon removal strategies that are leaving behind the linear economy and embracing a circular one, capabilities, reinforced by a comprehensive assurance program — effective, quantifiable and verifiable. Recognizing the critical role we can design to reduce and reuse waste, and extend the useful including audits — that accelerates and maintains improvements. that technology can play in addressing climate change, we are life of products and materials to reduce environmental impact. At We are also a founding member of the Responsible Business driving innovation to help our customers make progress on their Dell, we believe technology will play a key role in this shift, and Alliance, supporting the rights and well-being of workers and emissions goals and support research and conservation efforts we see the circular economy as a critical business model for our communities contributing to the global technology supply chain. around the world. collective future. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 43 FY22 ESG REPORT
CLIMATE ACTION Focus on climate change is growing, along with a Greenhouse gas emissions by scope sense of urgency to act SCOPE 1 The attention generated by the 26th U.N. Climate Change • Supports the climate mitigation hierarchy, committing to address Direct emissions from Dell Conference of the Parties (COP26), combined with the release of our own value chain emissions and working to achieve these Technologies-owned and the first Intergovernmental Panel on Climate Change (IPCC) report, targets as our first priority while evaluating projects and timeline to -controlled resources dramatically increased awareness of what is at stake if we don’t act mitigate emissions outside of our value chain. now to offset the worst impacts of global warming. • Extends across our entire value chain, counting not only the scope There is no question that zeroing out emissions is the strongest 1 (direct emissions, for example, facilities) and scope 2 (indirect commitment countries and businesses can make to slow down purchased emissions, for example, electricity) but also scope 3 SCOPE 2 global warming. We are committed to delivering on our net zero goal emissions created on a company’s behalf, such as those coming with the right actions, technology, measurement, partnerships and from its supply chain (upstream) and the use of its products by Indirect emissions related people to get us there. consumers (downstream). These scope 3 emissions often make to the consumption of up the majority of a company’s carbon footprint. purchased electricity, steam, With the term “net zero” growing in use comes the challenge We will continue to engage and evaluate as measurement heating and cooling that not everyone is defining or measuring it in the same way. At guidelines and standards evolve. This may mean adjusting how we Dell, we are currently working to align our net zero goal with the measure and report in the future to ensure our net zero goal is as latest guidelines from the Science Based Targets initiative (SBTi) comprehensive as possible to deliver on our commitment to achieve — a globally recognized partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the a true net zero greenhouse gas emissions target by 2050. SCOPE 3 Worldwide Fund for Nature (WWF). Our net zero goal: Indirect emissions • Contains near-term goals based on SBTi guidance in line with associated with our supply the latest climate science necessary to meet the goals of the chain, the use of our Paris climate agreement, providing a clearly defined pathway for products by customers, and companies to reduce emissions, helping prevent the worst impacts things like business travel of climate change. In 2015, we were one of the first 12 companies and transportation of goods to have our emissions reduction targets validated by the SBTi. and services INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 44 FY22 ESG REPORT
CLIMATE ACTION GOALS On the road to net zero SCOPES 1, 2 AND 3 SCOPES 1 AND 2 SCOPE 2 We will reduce scopes 1 and 2 GHG emissions We will source 75% of electricity from by 50% by 2030 renewable sources across all Dell facilities by 2030 — and 100% by 2040 We will reach net zero greenhouse gas (GHG) SCOPE 3 SCOPE 3 emissions across scopes 1, 2 and 3 by 2050 We will partner with our direct material In FY23 we will release a new 2030 goal to suppliers to reduce GHG emissions by 60% per reduce the carbon emissions associated with unit revenue by 2030 the use of sold product INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 45 FY22 ESG REPORT
CLIMATE ACTION GOALS We will reach net zero greenhouse gas (GHG) emissions across scopes 1, 2 and 3 by 2050 Our net zero goal is an extension of our existing In FY22, we maintained focus on reducing climate-related goals and reflects our strong emissions, increasing the use of renewable commitment to taking action on climate change. electricity and partnering across our value chain. Achieving this goal will require global cooperation We continue to see a significant opportunity across many aspects of our business and our to increase efforts in scope 3 emissions related broader value chain, a science-based approach to the use of our products. In FY21, we retired and consistently meeting our time-bound interim our goal to reduce the energy intensity of our goals. Most importantly, our 2030 emissions products by 80% (FY12–FY21), achieving a 76.7% targets are key to achieving the goal. To reach reduction across our entire portfolio. To continue net zero emissions, we must significantly reduce to drive progress in this area, we are establishing or eliminate our scopes 1 and 2 and material a new 2030 goal to reduce the carbon emissions scope 3 emissions, and then focus our efforts, associated with the use of sold product, which where possible, on balancing the remaining GHG we will share in FY23. emissions via carbon removal activities. We know that this is an ambitious plan. Technology innovation, increased adoption of renewable electricity and climate science all impact the rate at which the world makes the net zero transition. We’ll continue to evaluate and be agile to make the most of these to accelerate our progress while supporting our customers and partners with their own climate goals. *Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 46
RECENT HIGHLIGHTS World Economic Forum’s “The world is waking up to Alliance of CEO Climate the reality that achieving Leaders net zero greenhouse gas In advance of COP26, Michael Dell joined more emissions is not optional. than 90 CEOs of large multinational organizations We will decarbonize our as members of the World Economic Forum’s business by 2050 through Alliance of CEO Climate Leaders in signing a public letter sharing their readiness to work side strong short- and long- by side with governments in a joint public-private term goals driven by effort to accelerate the race to net zero. technological innovation, CDP Supplier Engagement increased adoption of Leaderboard renewable electricity Dell was included on the CDP Supplier and climate science. Engagement Leaderboard, which provides a But no company is an rating for how effectively companies are engaging island. Avoiding the worst their suppliers on climate change. CDP assessed performance on supplier engagement using impacts of global warming a company’s response to selected questions takes everyone. It’s why on governance, targets, scope 3 emissions and value chain engagement in the CDP 2021 we are also putting our climate change questionnaire. We also scored technology to work to an A- in the climate category for the quality and comprehensiveness of information we provided. help our customers, value chain and society transition to net zero.” JJ DAVIS CHIEF CORPORATE AFFAIRS OFFICER, DELL TECHNOLOGIES National Geographic Explorer, Mike Libecki uses Dell Rugged Extreme laptops to support climate and microplastics research on an expedition to Antarctica. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 47
CLIMATE ACTION GOALS We will reduce scopes 1 and 2 (market- based) greenhouse gas (GHG) emissions by 50% by 2030 Taking responsibility for the GHG emissions generated by our company facilities; vehicles; purchased electricity, heating, and cooling is the first step on the journey to net zero. Electricity use in our buildings is the largest source of GHG emissions from our own operations, with smaller quantities coming from fuels and refrigerants used in buildings and in company vehicles. To achieve a 50% reduction by 2030, we are focusing on efficiency in our electricity use and increasing our use of renewable energy. Our 2030 scope 1 and scope 2 GHG reduction targets have been accepted by the Science Based Targets initiative (SBTi) as consistent with reductions required to keep global warming to 1.5 degrees Celsius, the most ambitious goal of the Paris climate agreement. PERFORMANCE TO DATE* RECENT HIGHLIGHTS 21 Reduction measured from FY20 baseline. Reduced our scopes 1 and 290,300 % 300,000 30 2 GHG emissions by 86,600 reduction in GHG 250,000 emissions metric tons since FY20 216,300 203,700 200,000 In FY22, we achieved the ISO 50001 energy management systems standard certification 150,000 for two additional Dell facilities. As a result of 100,000 these certifications, all 10 of our Dell-owned manufacturing facilities are now certified. 50,000 Through this and other programs, we continue to implement projects to improve energy 0 efficiency and reduce greenhouse gasses in the FY20 FY21 FY22 buildings we operate. MTCOe of scopes 1 and 2 (market-based) GHG emissions 2 *Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 48
CLIMATE ACTION GOALS We will source 75% of electricity from renewable sources across all Dell Technologies facilities by 2030 — and 100% by 2040 The transition to renewables is essential to decarbonize our PERFORMANCE TO DATE* economy and mitigate the effects of climate change. We are making progress and will continue our work to source renewable electricity 80% alternatives to reach 100% by 2040. This goal contributes to scope 70% 2 emissions reductions and supports our scopes 1 and 2 GHG 60% emissions reduction goal. 50% 54% 55% 40% 46% 30% 20% RECENT HIGHLIGHTS 10% 0 Maintained focus on energy improvements FY20 FY21 FY22 in our owned buildings and leased spaces Total electricity used generated from renewable sources To support our long-term global renewable electricity strategy, in FY22 we added additional renewable electricity to our facilities in India, France and the U.S. We also conducted several detailed opportunity assessments of near-term and alternative solutions for buildings and leased spaces, which we will use to help plan our long- term global renewable electricity strategy. *Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 49 FY22 ESG REPORT
CLIMATE ACTION GOALS We will partner with our direct material suppliers to reduce GHG emissions by 60% per unit revenue by 2030 We understand that part of our overall carbon numbers show we were level with our baseline PERFORMANCE TO DATE* impact on the environment includes carbon where we previously reported a decrease in Reduction measured from FY20 baseline. emissions that occur when our suppliers direct supplier emissions per million dollars ($MM) manufacture key components and provide vital of revenue. % services to us. Our current near-term supplier 50 3 emissions reduction target demonstrates our Over the last year, we deepened engagement reduction in direct commitment to addressing climate change with our direct material suppliers and supported 40 43.7 43.8 42.4 material supplier throughout the value chain and has been them in their efforts to set aggressive and GHG emissions ambitious GHG emissions reduction targets. per $MM approved by the Science Based Targets initiative Through direct engagement with supplier 30 (SBTi). We continue to evolve how we hold sustainability teams, we worked to understand ourselves and our suppliers accountable to the barriers suppliers face in setting reduction 20 maximize our impact. targets and shared best practices to help We demonstrate this by engaging with suppliers overcome them. We also provided them with 10 to help them reduce their GHG emissions and global standards and methodologies for setting track progress. We constantly work to refine GHG goals and referred suppliers to the public 0 how we measure to drive results and increase tools we used to develop our own targets. All FY2022 FY2123 FY22 accuracy in reporting. Over the last year, our of these activities are critical to driving long- MTCOe GHG emissions per $MM suppliers improved their GHG emissions reporting term GHG emissions reductions with our direct 2 practices, and we have further enhanced the material suppliers and successful achievement of data collection methodologies used in calculating our goal. results for our direct material suppliers goal. These changes are reflected in our FY22 results. In addition, we are restating our goal baseline and initial reporting results. Our updated FY21 *Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 50 FY22 ESG REPORT
RECENT HIGHLIGHTS Supported suppliers with climate reporting Encouraged suppliers to complete the CDP climate questionnaire and then provided detailed feedback to each supplier, including how to expand and provide more in-depth responses for the climate questionnaire in the future. We include this practice as part of our ongoing approach for GHG emissions reduction discussions with suppliers. This resulted in an increased level of specificity from suppliers in describing their programs qualitatively, not just with numerical data. This case study shares more about how we engage with suppliers to help drive GHG emissions reductions. Continuing our focus on scope 3 emissions associated with the use of sold product When we look at our GHG emissions, we take responsibility all the way through to the use of our products by our customers and partners. Our now retired goal to reduce the energy intensity of our entire product portfolio by 80% (FY12–FY21) was an ambitious one focused on driving down the energy intensity of our entire product range, from laptops all the way through to servers and storage. We are proud that we achieved a 76.7% reduction and are now turning our attention to our next aggressive target. To continue to drive progress in this area, we are establishing a new 2030 goal to reduce the carbon emissions associated with the use of sold product, which we will share in FY23. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 51
CIRCULAR ECONOMY MOONSHOT GOAL Accelerating the circular economy By 2030, for every product a By 2030, 100% of our packaging will By 2030, more than half of our customer buys, we will reuse or be made from recycled or renewable product content will be made from recycle an equivalent product material recycled or renewable material INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 52 FY22 ESG REPORT
CIRCULAR ECONOMY MOONSHOT GOAL By 2030, for every product a customer buys, we will reuse or PERFORMANCE TO DATE* recycle an equivalent product. 100% of our packaging will be made 100% 100% from recycled or renewable material. More than half of our product 80% 80% 87.0% 90.2% content will be made from recycled or renewable material. 85.0% 60% 60% As we work to tackle global challenges like climate Understanding the challenges to sustainable 40% 40% change, waste and pollution, the circular economy materials use, recycling and reuse are key to this — reducing waste and emissions and reusing goal. In FY22, we focused efforts on partnering 20% 20% products and materials at their highest value — with others to uncover new materials and drive 9.1% 9.6% 12.1% is critical to help solve these issues. Our circular innovative design ideas like Concept Luna. 0% 0 economy goal calls for taking back as much as We also built upon our 25 years of recycling FY20 FY21 FY22 FY20 FY21 FY22 we produce and significantly scaling our adoption leadership to scale existing services and pilot new Percentage of product collected (total units Percentage of recycled/renewable material of recycled and renewable materials. These two ways to incentivize return streams. This will be an captured for recycling and reuse over the content in packaging actions, along with Dell’s design methodology area where we will continue to drive investment amount of products sold) to optimize product reusability and recyclability, to evolve current and introduce new programs support the future of the circular economy. that respond to changing consumer 50% In FY22, we used over 179.8M kilograms (396.5M and business behaviors. We will partner with others to achieve our goal and reduce 40% pounds) of sustainable materials in our products environmental impact. and packaging. But our approach goes beyond 30% materials. By considering sustainability at every stage of a product’s life cycle, we are further Explore more on Dell’s perspective on circularity → 20% reducing its carbon footprint. Designing products to last longer and be easier to repair, refurbish or 10% 5.9% recycle takes pressure off sourcing new materials 3.5% 3.9% and emissions related to manufacturing. 0% FY20 FY21 FY22 Percentage of recycled/renewable content in products *Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 53
RECENT HIGHLIGHTS Repair leadership critical factors affecting consumer behavior and apply them to improve processes for recycling Repair is essential to keep products in use longer electronic waste. We have also expanded our and out of landfills. At Dell Technologies, we have commercial Asset Recovery Services (ARS) to long supported customers’ choice to repair their 36 countries, helping customers receive value own device or seek out another convenient repair from existing IT assets and implement sustainable option. Continuing to engage in the growing recycling and recovery services at scale. conversation around repair is important. We see opportunities to evolve Dell’s leadership, providing Expanding the use of ocean- additional routes to make repair more accessible and affordable. bound plastics You can read more about our work to support In FY22, we exceeded our commitment in support repair here → of U.N. Sustainable Development Goal 14 to Rethinking recycling increase our annual use of ocean-bound plastic tenfold by 2025, based on our 2017 baseline (10 Achieving our goal to reuse or recycle as much x 16,000 pounds). Using over 227,000 pounds “Early on, Dell recognized the need for cross-industry as we produce means trying new ways to of ocean-bound plastic in our packaging in collaboration to address the scale of the ocean-bound engage individuals, partners and businesses to a single year enabled us to achieve this goal turn in their out-of-use technology. We recently four years ahead of schedule. We also recently plastic problem, and fueled the development and launch expanded our Dell Trade-In Program, which allows announced an important milestone that expands of NextWave Plastics, the only consortium of global consumers to trade in eligible technology they use of ocean-bound plastic beyond packaging are no longer using (of any brand) and receive into products. The Latitude 5000 series and companies working together to build a network of ocean- instant credit toward new Dell products. We also Precision 3570/3751 Mobile Workstations now bound plastic suppliers and bring value to the communities collaborated with Google, Apple, Amazon and feature ocean-bound plastics in the fan housing Microsoft to launch a year-long citywide doorstop (28%) and in the fan and fan housing (13%) from which this material is sourced. Extending the use electronics recycling pilot for consumers from in our OptiPlex Micro desktops and Precision of this material across new products demonstrates Dell’s Denver, Colo. Developed in partnership with Workstations. Dell’s EcoLoop Pro series of recycling start-up Retrievr, this pilot is helping backpacks, sleeves and briefcases also now long-term commitment to addressing the 14 million metric collect insights to better understand the most features 100% ocean-bound plastic in the exterior tons of new plastic entering the ocean every year.” main fabric. DUNE IVES CEO OF LONELY WHALE INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 54
CHAMPIONING PEOPLE GOALS Championing the people who build our products We will drive Each year through Each year through 2030, Each year through sustainability 2030, we will show we will deliver future- 2030, we will continue improvements in our continued commitments ready skills development engagement with global workplaces to provide healthy work for workers in our the people who make through 2030 environments where supply chain our products people can thrive INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 55
CHAMPIONING PEOPLE GOALS We will drive sustainability improvements in our global workplaces through 2030 Championing sustainability starts at home. We work on a local level to reduce environmental impact in our workplaces around the world, but the actions that are prioritized for one country may differ from another. Our factories in Xiamen, China, for example, face very different water- related issues than our offices in Montpellier, France, or our U.S. data centers in Durham, N.C. While we track our efforts against two global efforts — reducing freshwater use and reducing workplace plastic waste — we also look at broader sustainability efforts. In an environment where hybrid work has continued to scale and new ways of working continue to evolve, we will evaluate how the focus areas for this goal will shift in the future. We will reduce freshwater use in our Dell We will reduce workplace plastic Technologies-owned facilities by 25% in waste by 90% locales with high water stress, and by 10% elsewhere Single–use plastics — those used once and then discarded — are examples of the linear economy in action. We want to break free from this use. Our goal focuses on reducing plastic and plastic foam Dell uses fresh water for domestic purposes, such as drinking, waste from food service and other general workplace activities. cooking, cleaning and flushing toilets, as well as for cooling and With team member presence at our workplaces impacted by the landscape needs. Water stress — any situation in which water is pandemic, any reduction reported would not reflect business-as- insufficient for a region’s needs — is chronic in some parts of the usual plastic consumption levels. As changes to where and how our world. Although water resources are precious everywhere, living team members work evolve, we will evaluate reporting on this or an and operating in those areas require special consideration. We view alternative metric in the future. our goal to reduce freshwater use as part of being a good citizen of those communities. Our FY22 results show a decrease across both of these targets, largely as a result of the dramatic reduction of our workforce going into Dell-owned facilities. As new ways of working continue to evolve, we will evaluate the impact on this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 56 FY22 ESG REPORT
PERFORMANCE TO DATE* Reduction measured from FY20 baseline. 80 1,500 70 % 1,358 % 43 1,200 19 68 60 reduction in reduction in 1,161 50 freshwater use 1,098 freshwater use 900 40 45 39 600 30 20 300 10 0 0 FY20 FY21 FY22 FY20 FY21 FY22 Megaliters of fresh water used in high Megaliters of fresh water used in water stress locales other locales RECENT HIGHLIGHTS Sustainable workplaces by design Secured a LEED Interior Design and Construction (LEED ID+C) Silver award for our new Japan headquarters. Our facilities design team incorporated water conservation, energy efficiency, indoor air quality features and other measures in these leased spaces, supporting our sustainability objectives to protect people and the planet. *Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 57 FY22 ESG REPORT
CHAMPIONING PEOPLE GOALS Each year through 2030, we will show continued commitments to provide healthy work environments where people can thrive Dell expects a safe, healthy workplace where RECENT HIGHLIGHTS people can thrive. Delivering such a workplace involves a commitment to health and safety, Workplace engagement pilot Implementing new processes training, and management. We expect the same within our supply chain, and we reinforce the Worked with Social Accountability International Continued our commitment to the health responsible operation of our factories and those (SAI) to pilot its TenSquared program in our and safety of everyone in our supply chain by of our suppliers. We evolve our approach to supply chain. A structured, 100-day workplace prioritizing high-risk manufacturing processes. We ensure we continue to deliver meaningful impact. engagement program, TenSquared united teams implemented a hierarchy of control for processes, of supplier employees and their managers to such as aluminum-magnesium smelting, address root causes of workplace challenges, electroplating, painting and solvent cleaning. overcome institutional hurdles to change and Processes include elimination and substitution, as PERFORMANCE TO DATE* create a culture of continuous improvement. well as engineering and administrative controls. Frontline supplier employees participated in We also assessed supplier management systems, 80,000 machine safeguarding, process operation and the process of root cause analysis, solution 70,000 discussion, execution progress evaluation and material management for high-risk processes. 60,000 61,587 impact measurement. Participants learned 61,124 50,000 a robust methodology for problem-solving, New ways to engage suppliers 40,000 41,733 organizational communication and leadership that 30,000 they can apply to future challenges. Learn more Partnered with suppliers to increase their about the TenSquared program in this case study. own health and safety practices, facilitating 20,000 workshops and developing a short video series 10,000 focused on chemical safety and wearing proper 0 personal protective equipment (PPE). This series 2019 24 2020 25 FY22 is available on Dell’s mobile training platform, Total hours of social and environmental responsibility making it easy for workers to access. Learn more training provided to the people in Dell's global supply chain about how we enable digital learning through mobile phones. *Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 58
CHAMPIONING PEOPLE GOALS Each year through 2030, we will deliver PERFORMANCE TO DATE* future-ready skills development for CY19 26 12,723 workers in our supply chain CY2027 6,592 FY22 13,045 Through our global supply chain, thousands of people work to bring Dell’s products and services to life. 0 3,000 6,000 9,000 12,000 15,000 Delivering meaningful work, developing new skills and progressing in their careers are critical to their Total number of future-ready skills training hours at success. We are working to identify critical skills for the future, provide team members with the skills and in-house manufacturing locations training they need to unlock opportunities and advance their careers, and support our suppliers’ efforts to do the same. To offer skills development at scale, in FY22 we implemented additional innovative solutions for both online learning and in-person training opportunities. CY2028 99,271 RECENT HIGHLIGHTS FY22 144,658 Developing communication and Future-ready skills pilot 0 30,000 60,000 90,000 120,000 150,000 digital skills program Total number of future-ready skills training hours Supported the growth of our in-house Developed and successfully implemented a in supply chain manufacturing teams by implementing future- future-ready skills pilot with two key suppliers. ready training focused on addressing personal Dell collaborated with these suppliers and interpersonal effectiveness, such as to benchmark their existing training and communication and having a growth mindset, as development programs against Dell and industry well as cognitive skill topics, such as decision- standards, created a frontline worker talent making, critical thinking, creativity and innovation. development road map strategy, built customized With digital skills foundational to business, we also training tool kits, shared best practices and focused on training and developing confidence in monitored progress. Going forward, we aim this key area. to promote supplier-led future-ready skills development programs across our supply chain. *Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 59 FY22 ESG REPORT
CHAMPIONING PEOPLE GOALS Each year through 2030, we will continue engagement with the people who make our products The people who make our products are critical to our success. Listening to feedback and enlisting their unique insights creates a better workplace and drives our business forward. Our in-house experience — through our manufacturing team’s Culture of Innovation Program — demonstrates how a positive and inclusive environment enables innovation to thrive through individual engagement, skills development, dedicated events and recognition. This experience forms the basis of Dell’s engagement with suppliers to support their own similar programs. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 60 FY22 ESG REPORT
PERFORMANCE TO DATE* RECENT HIGHLIGHTS Ideation and innovation CY1929 12,487 CY1931 99% FY20 303 seminars CY2030 11,699 CY2032 100% FY21 271 Launched capability-building seminars in partnership with our Culture of Innovation FY22 12,641 FY22 100% FY22 271 Teams. Seminars support ideation and innovation in our 10 manufacturing sites. 0 3,000 6,000 9,000 12,000 15,000 0% 20% 40% 60% 80% 100% 0 50 100 150 200 250 300 350 Sessions focus on best-in-class practice sharing Number of feedback interviews conducted with supply Percentage of manufacturing facilities with feedback Number of ideation sessions in-house that helps scale and mature supply chain chain workers channels in place innovation among site leads. Instruction includes guidance on the ideal framework structure: ideation methodologies, prioritization and implementation of the best ideas. FY20 620 FY20 97% 8,131 7,763 FY21 826 FY21 86% Virtual brainstorming sessions Number of ideas Number of ideas Facilitated online brainstorming sessions to FY22 1,405 FY22 92% submitted in implemented in enable idea sharing across global facilities. Our supply chain supply chain Culture of Innovation Teams enhanced our 0 300 600 900 1,200 1,500 0% 20% 40% 60% 80% 100% engagement strategy by launching more virtual In-house innovation ideas implemented as projects Level of participation in in-house ideation sessions events, using collaboration platforms that allowed frontline worker participation in real-time ideation, problem-solving and recognition. We plan to continue expanding virtual events across our Global Manufacturing Teams in FY23. *Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 61 FY22 ESG REPORT
ADVANCING SUSTAINABILITY Product Sustainability INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 62
PRODUCT SUSTAINABILITY Reducing the environmental impact of our products for a healthier planet People and organizations around the globe Sustainable design not only extends the life use our technology to drive innovation of products and materials, reducing emissions and progress. With the growing use of and waste for the planet, but also meets our technology comes a constant need to customers’ increasing demands for sustainable reduce the environmental impact of products. A recent global research study conducted by the Economist Intelligence Unit creating our products, as well as the 33 (EIU) and commissioned by Worldwide Fund for energy use footprint when our customers Nature (WWF) shows a staggering 71.0% rise in use our products. At Dell Technologies, popularity of searches for sustainable goods over sustainability is part of every product the past five years. decision we make in service of achieving Beyond our products, we are evolving our our circular economy and net zero services and programs to increase our take greenhouse gas emissions goals. We back of out-of-use or legacy IT equipment. We consider the environment across the are helping customers take advantage of the entire life cycle of a product from design, business and sustainability outcomes of as a sourcing materials, manufacturing, service. Through these efforts, we are delivering powerful technology and services our customers shipping and the eventual end of life of are looking for, while constantly driving innovation those products. to reduce our environmental impact. Sustainable materials exploration INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 63
PRODUCT SUSTAINABILITY Circular design Dell Technologies’ circular design principles encourage a reduction in the size and number of needed components, the amount of material needed for each component, and the complexity of system assembly, making them easier to repair, reuse and recycle. Examples of this in action include using standard tools and fasteners as well as snap-fits or uniform screws instead of adhesives. Innovative Design Our designers start with the end in mind, making products easy to use, easy to repair and easy to recycle when done. Concept Luna Reuse & Recycling ACCELERATING Sustainable Materials In FY22, we introduced Concept Luna, a prototype that pushes the boundaries of future laptop CIRCULARITY Using recycled/renewable design. Concept Luna drives innovation by exploring how to make components more accessible, Extending lifetimes and materials in products and replaceable and reusable to reduce resource use and keep circular materials in the economy. This recovering materials at packaging keeps those ambitious work stream is experimenting, proving and assessing sustainable design ideas to help end of life fuel the materials circulating in the identify those with the greatest potential to scale across our portfolio. When compared with a circular economy. economy. 34 similar laptop in Dell’s current portfolio , Concept Luna demonstrates: • 50.0% overall reduction in carbon footprint. • 10x fewer screws for easy access to internal components. • Keystone innovation locks components without adhesives. • 75.0% reduction in the size of the motherboard.35 • Aluminum chassis processed using hydropower. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 64
PRODUCT SUSTAINABILITY Sustainable materials Dell prioritizes the use of recycled and renewable materials in both products and packaging. Recycled and renewable materials can dramatically reduce the environmental impact of manufacturing when compared to the emissions generated to create new materials. Our extensive work to scale our use of sustainable materials means we are not reliant on one material or supplier to reach our goal to have 50% of our products and 100% of packaging made with recycled or renewable materials by the year 2030. Recycled material we are using today: Renewable materials we are using today: • Closed-loop: Taking back out-of-use technology and recycling materials to • Bioplastics made with tall oil: A by-product of the paper-making process, make parts for new devices. For example, in 2021 OptiPlex became the first tall oil37 is mixed with other new and recycled materials for use in the lids of PCs to use hard drives made with closed-loop recycled aluminum sourced Latitude 5000 and Precision 3000 notebooks. Dell Latitude 5000 series 36 from old disk drives. 38 • Bio-based rubber using castor oil: A nonfood crop, castor oil is used • Carbon fiber: Recycling carbon fiber materials sourced from the aerospace to create a rubber material for the bottom bumpers on new Latitude The new Dell Latitude 5000 series products and other industries for use in our products. This thermoplastic carbon 5000/7000/9000 series laptops and in Precision 3000 series mobile are made with the industry’s most innovative fiber-based material can be ground up, remelted back into thermoplastic workstations laptops. use of sustainable materials in mainstream resin and molded into new parts, while maintaining its recyclability. • Renewable packaging materials: Recycled corrugate and paper, bamboo, business laptops with recycled, reclaimed and • Ocean-bound plastic: Since 2017, we have used over 443,000 pounds of and most recently, bagasse, a sugar cane byproduct, are materials we use in renewable materials throughout the chassis. ocean-bound plastics in our packaging. We recently extended use of this select packaging. List of sustainable materials: material in select Latitude, Precision and OptiPlex products, as well as our EcoLoop™ line of carrying cases. • Laptop lid – 71% PCR plastic, reclaimed 39 • Post-consumer Recycled (PCR) Plastic: We use PCR plastic made from a carbon fiber and bio-based plastic variety of sources, such as 5-gallon water cooler jugs and single use plastics • Palm rest – 35% PCR plastic across our product and packaging portfolio. • Inner frame – 35% PCR plastic We also look for materials that have as little carbon footprint as possible in production, assembly or transportation. Our work with aluminum is a great example. • Battery frame – 50% PCR plastic Traditionally, aluminum has a high carbon footprint due in large part to the smelting process, which typically occurs in coal-powered facilities. To help reduce • LCD cover frame – 30% PCR plastic carbon footprint, our XPS 13 Plus chassis is made with aluminum produced with hydropower. This chassis offers a 70% reduction in carbon emissions versus a • AC adapter exterior – 30% PCR plastic coal–powered chassis. We will extend this material to additional product lines in 2022. • Fan-housing – 28% ocean-bound plastic • Laptop base – 20% reclaimed carbon fiber • Rubber feet – up to 39% bio-based rubber INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 65 FY22 ESG REPORT
PRODUCT SUSTAINABILITY Energy intensity Eco labels innovation, testing and scaling, we will achieve our goal. Our packaging goal Reducing the energy intensity of our products Eco-labeling standards drive sustainability by includes our PC business, displays, peripherals while continuing to maximize performance is helping customers understand electronic and enterprise products, including servers, critical to support our customers with their products and the companies that make them. A storage and networking — each with unique business and climate goals. few examples of the programs Dell participates packaging needs. For example, managing massive quantities of in include: Our latest packaging innovations include: ® data requires significant compute power. We • ENERGY STAR • 100% recycled or renewable packaging: This aim to provide maximum performance per watt, • EPEAT new packaging will be rolled out on the majority which allows us to consolidate infrastructure and • TCO of laptops launching in the next year. Made reduce energy and cooling needs. This also makes with up to 95% recycled content and up to it possible to shrink the physical and carbon • 80 PLUS 22% renewable content in the form of recycled footprint in the data center. Since 2013, we have • China Environmental Labeling Program (CELP) paper, bamboo and sugarcane (bagasse) fibers, reduced the energy intensity of our PowerEdge in 2022 we introduced this packaging on new servers by 83%. Through continued innovation, Packaging innovation Latitude, Precision and XPS devices. We will what required six servers in 2013 can now be continue to roll out this new packaging on the accomplished with one server today. How we package and ship products to our majority of laptops over the next year and Thermals play a big role in energy because of customers plays an important role in reducing our beyond.40 Accessing the device is also easier the cooling needs required to manage the heat impact. Dell is a leader in responsible packaging, and faster with the introduction of a paper tape generated by the equipment. Our engineers reducing waste and driving innovation to find tab that replaces traditional plastic tape. redesigned the chassis of our latest PowerEdge recycled and renewable alternatives to protect • Multipack shipping: In FY22, we announced servers for optimal thermal performance. This our products while in transit. Once the packaging our multipack offerings across select client and new layout places power supply units (PSUs) on has fulfilled its purpose, it also needs to be simple server products. This allows us to ship larger opposite sides of the chassis to create efficient to recycle. Our design and packaging engineers quantities of products in a single box. Without airflow channels to allow hot air to exit quickly. are constantly exploring and testing new materials individual packaging, it is easier for commercial OpenManage Enterprise with Power Manager and designs to deliver packaging made with 100% customers to deploy new devices with less can also help customers gain insights into the recycled or renewable material across our entire waste. Multipack shipping saves space, power and thermal performance of equipment product portfolio by 2030. materials and time, reducing our transportation in their data center to maximize efficiency and Today 90.2% of our packaging across our entire footprint by maximizing devices per pallet. reduce energy waste. product portfolio is made from recycled or renewable materials. Closing the final 10.0% will be our biggest challenge, but through continued INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 66 FY22 ESG REPORT
PRODUCT SUSTAINABILITY Recycling and take back services E-waste is one of the fastest-growing waste streams today. According to The Global E-waste Monitor 2020, only 17.4% of e-waste is formally documented as being collected and recycled. The report estimates that globally, e-waste will reach 74Mt by 2030, nearly double the amount since 2014. The environmental impacts alone are multifaceted and of great concern, but there are also financial implications. The same report shows that the amount of iron, copper, gold and other minerals discarded in e-waste is valued at over $57 billion. Recovering those materials through proper recycling benefits the planet and our business. Our goal to reuse or recycle an equivalent product for every product we sell by 2030 can only be achieved if we make it easy for our customers to return their devices to us after use. Some of our recently revamped commercial and consumer recycling services are key to making that possible. • Dell Trade In: In FY22, we launched Dell Trade • Asset Recovery Services (ARS): Commercial In in the U.S., enabling consumers to register customers represent the most significant eligible personal electronics — of any brand, in opportunity to scale the take back of out- any condition — for instant credit. A completely of-use and legacy equipment. We recently free service, consumers simply enter the details revitalized this offering, which now supports of their eligible device online, receive a quote for 36 countries across the globe. Through Asset the credit they will receive and drop it off at a Recovery Services, Dell manages the entire FedEx location or drop box. As soon as the box asset disposition process, regardless of the is scanned, the value is instantly emailed to the brand. We sanitize devices in strict alignment customer in a virtual prepaid debit card that can with the (National Institute of Standards and be used to purchase Dell products and services. Technology) NIST SP-800-88-r1 standards Dell Trade In is set to expand globally in FY23. and prioritize reuse to minimize waste and maximize value back to the customer. Assets with no value are responsibly recycled, creating a feedstock for the circular economy. We provide a comprehensive report of the process, including the ability to manage and track the entire process online via our TechDirect portal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 67 FY22 ESG REPORT
PRODUCT SUSTAINABILITY Evolving business models APEX and as a service In order to scale sustainability outcomes for our offerings(aaS): customers, we need to continue to evolve and Dell’s as a service (aaS) offerings, including APEX, drive innovative new business models. optimize customers’ IT operations, which can A recent Forrester Consulting study, also help them achieve their sustainable IT goals. commissioned by Dell, evaluated how companies Research shows that on average customers view and leverage as a service models to achieve overprovision their data centers by 37.0%, which their environmental, social and governance goals. can lead to energy wasted to power and cool that Nearly half of respondents believe as a service equipment. APEX allows customers to maximize models will provide clear sustainability benefits, performance, while rightsizing their current IT such as: environments, with the flexibility to grow and shrink as needed. As part of the as a service • Reducing sustainability-related management model, customers can also return their devices costs (40.0%). at the optimum time to be reused or recycled, • Reducing overall e-waste generation (45.0%). extending life cycles for our products and helping • Lowering the cost of managing end-of-life ensure proper recovery and disposal of materials. equipment (39.0%). • Anticipated cost savings of more than 10.0% (65.0%). Environmental Protection Agency (EPA) recognition In FY22 the EPA Sustainable Materials Management Awards recognized Dell with three awards: • Cutting Edge Champion Award for our use of bio-based plastics. • Sustained Excellence Award for our closed loop aluminum pilot. • Gold Tier Recycling Award for our recycling services. These awards mark eight consecutive years that Dell has been recognized by the EPA for its commitment to sustainable materials management and recycling electronics responsibly. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 68 FY22 ESG REPORT
CULTIVATING INCLUSION At Dell Technologies, we value diversity of thought and experience At Dell Technologies, we are a diverse team that values diversity of thought and experience to create innovative technologies that drive human progress. We are unwavering in our commitment to equality, trust and advocacy for one another because we believe everyone deserves access to opportunity, balance and fulfillment, connection with the world around them, respect, and most of all to be included. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 69
CULTIVATING INCLUSION At the core of everything we do Our Cultivating Inclusion goals align to these focus areas: Representation Building community Foundational learning Meaningful work & inspiring Dell believes in the importance of attracting and Being part of a community can give a sense Dell is committed to cultivating an inclusive leaders retaining a diverse workforce that reflects the of belonging and enhance our well-being. The work environment. We provide all our team We believe everyone should have access to and customers and communities we serve. From connections we foster with team members help members with foundational learning on inclusive play a role in helping create an inclusive work recruiting and educational programs focused on drive engagement and collaboration. We are principles and practices annually. We also environment. Through our People Philosophy and reaching underrepresented groups, to innovative creating connections that reach around provide opportunities, tools and resources to Culture Code, we are creating a culture where hiring programs and partnerships, we are the globe through our Employee Resource encourage inclusive conversations for team our people feel empowered to achieve, a sense committed to broadening our reach to ensure we Groups (ERGs), our Culture, Diversity & Inclusion members and leaders. of balance, connected with those around them engage talent where they are learning, growing (CD&I) Champions and other team member and accepted for who they are. Our leadership and thriving. advocacy groups. principles set expectations for championing equity, valuing different backgrounds and celebrating unique perspectives. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 70
CULTIVATING INCLUSION Representation INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 71
REPRESENTATION Building a culture of inclusion True inclusion requires intentional actions, which is why Dell Technologies’ 2030 goals include a commitment to become a more diverse workforce. We look to these goals as a central guidepost as we monitor, adjust and improve our efforts to create an inclusive culture for our team members, customers and communities we serve. These goals also represent an opportunity to help close the technology talent gap by providing access to career and growth opportunities for women globally and for underrepresented groups in the U.S. To help build our pipeline of future talent, we continue to pilot and innovate our hiring programs and processes. This includes removing barriers to inclusion by continuously improving our accessibility practices, expanding our recruiting efforts to underrepresented groups and evaluating our internal processes. We help prepare students to be STEM-ready with curriculum, applied learning, internships and job opportunities to provide a meaningful pathway to our future workforce. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 72 FY22 ESG REPORT
REPRESENTATION CULTIVATING INCLUSION GOAL Empowering Rejoining the workforce Dell’s Career ReStart Returnship Program By 2030, 50% of our global gave her that chance. This 16-week program workforce and 40% of our Sandra Norris had a 20-year career in program matches candidates with roles that build on women in the and project management with Fortune 500 their core talents, training for new skills as global people leaders will clients before stepping away to take care of her needed and mentors to support them at every be those who identify as workforce family and moving around Europe and the U.S. in step. Career ReStart helps fill the talent gap women support of her husband’s career. Seventeen years with more experienced team members whose later, Sandra’s world had changed. She was no fundamental skill sets make them invaluable Expanding our professional hiring programs longer married and taking care of young children. additions to their teams. PERFORMANCE TO DATE* is imperative to reaching our moonshot Wanting more for herself, Sandra decided to goals. We have the Career ReStart rejoin the workforce but struggled to find an organization that could see past her 17-year FY20 31.1% Returnship Program for people who have career gap. had a career gap, along with opportunities FY21 31.8% to refresh job skills and participate in FY22 33.9% structured onboarding. Though not limited to women, these programs recognize the 0% 10% 20% 30% 40% 50% unique challenges women have historically Percentage of global workforce who identify faced as primary caregivers, as well as the as women impact of the recent pandemic on women in the workforce. FY20 24.4% FY21 25.8% FY22 28.2% “I knew if I could just get to the interview 0% 5% 10% 15% 20% 25% 30% 35% 40% stage, they would see my value.” Percentage of people leaders in global workforce who identify as women SANDRA NORRIS PROJECT MANAGER (NORTH AMERICA) * Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 73 FY22 ESG REPORT
REPRESENTATION CULTIVATING INCLUSION GOAL Diversity By 2030, 25% of our U.S. workforce and 15% of our that reflects U.S. people leaders will be communities and Black/African American or Hispanic/Latino customers PERFORMANCE TO DATE* Dell believes in the importance of attracting and FY20 13.3% retaining a diverse workforce that reflects the customers and communities we serve. We are FY21 14.2% committed to broadening our reach to ensure we engage talent where they are learning, FY22 15.4% growing and thriving. This includes our recruiting and educational programs focused on reaching 0% 5% 10% 15% 20% 25% underrepresented populations in professional and Percentage of U.S. workforce who identify as Black/ technical fields. African American or Hispanic/Latino Globally, we’re addressing gender disparities “I love helping the next generation of professionals see in the workforce with regionally targeted that the technology industry can be accessible to them. FY20 9.9% recruiting campaigns, career development programs and mentoring circles. In the U.S., Students have told us they feel valued, appreciate the FY21 11.4% we’re continuing to expand our partnerships with minority-serving institutions (MSIs), level of expertise and insight they gain, and know that FY22 12.2% historically Black colleges and universities we are rooting for them! The industry can feel very 0% 3% 6% 9% 12% 15% (HBCUs), Hispanic-serving institutions (HSIs) intimidating, but we know that together, we can change and community colleges to provide curriculum, Percentage of people leaders in the U.S. workforce professional development, mentoring, internships the face of tech.” who identify as Black/African American or Hispanic/ and employment opportunities. Latino SOPHIE BARRATT SENIOR DIRECTOR, EDUCATION SERVICES (NORTH AMERICA) * Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 74 FY22 ESG REPORT
REPRESENTATION Innovative hiring Expanding Our Our hiring programs help women, underrepresented groups, veterans and Talent Reach neurodiverse people access employment opportunities, and include adaptive interviewing formats, expanded onboarding, Our innovative hiring programs and skills development and training, community partnerships extend beyond women and and mentoring support. underrepresented groups. We also focus on hiring veterans, people with career gaps 85% and those who are neurodiverse. After the hiring process, many of our programs In the U.S. it’s estimated that 85.0% continue to provide additional support as of people on the autism spectrum are we onboard, train and develop program unemployed, yet their strengths in participants. This helps us reach and retain “I know I’ll never get diverse thinking can yield innovative 41 the best talent. thoughts and solutions. Dell’s neurodiversity hiring program offered bored. This is where the Richard the opportunity to showcase his jobs of the future will be.” talents through a two-week workshop that 90% included a sample peer project, mentors, career RICHARD ERSKINE development skills and hiring managers with REGULATORY AUDIT SENIOR ANALYST, Nearly 90.0% of career reentry Embracing neurodiverse talent training on unconscious bias. GLOBAL AUDIT & TRANSFORMATION candidates are women who left the (NORTH AMERICA) workforce for various reasons. Dell Richard Erskine sees the world differently. He Richard joined Dell full time at the end of the knows as a neurodiverse person, the world two-week workshop. We provided a structured believes they have the desired skills and 42 sometimes sees him differently, too. Being seen onboarding process, including mentors and experience to be successful hires. differently can be a challenge when it comes to routine check-ins to ensure his success. starting a career. On paper, he had everything recruiters wanted to see. Unfortunately, the His advice to managers considering hiring 2.9x interviews presented a barrier. neurodiverse talent? Veterans offer distinct advantages to “I would get really nervous and a slight “I would say give it a shot! It’s an opportunity to employers, including 2.9 times more speech impediment would show up. The diversify your team with individuals who may be work experience (for those with a interviewer would get uncomfortable or maybe able to offer different perspectives.” bachelor’s degree), 8.3% longer retention not understand me, and then I wouldn’t get and 39.0% more promotability than 43 called back.” nonveterans. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 75
REPRESENTATION Knowing and growing our talent Recognizing the potential of our people starts with knowing our talent. To help retain and fully engage them, we have developed equitable tools We understand there and processes to help them find and work toward is still opportunity; the best intersection of their strengths and aspirations within our company. that’s why we are Our people leaders play an important role in constantly listening to building an inclusive culture, including developing our people and adjusting and retaining talent and recognizing performance. They’re also encouraged to build a deep accordingly. understanding of their people and to really check in with their team members about their needs, concerns and well-being. We are also focused on understanding the gap We keep a pulse on workforce sentiments between the capabilities our team members have through our annual employee engagement survey, and those they need so we can proactively upskill and in 2021, we hosted a series of listening and refresh skills to help ensure we have the sessions with our diverse populations across all best talent in the right roles. We are embedding levels. Knowing and understanding our people mentorship and allyship in our corporate culture helps create a safe, engaging and inclusive and expanding leadership potential through environment, where team members want to work sponsorship and coaching. and where they can be their authentic selves. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 76
CULTIVATING INCLUSION Building community & belonging INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 77
BUILDING COMMUNITY & BELONGING CULTIVATING INCLUSION GOAL A sense of belonging By 2030, 50% of our employees will participate in Being part of a community can give a Advocating for change Employee Resource Groups sense of belonging and enhance our to drive social impact well-being. The connections we foster Mara Del Valle regularly faces injustices and with our team members help drive transphobia in her daily life. But in her work life, she feels embraced, supported and empowered productivity and innovation. Our Employee to help her community overcome prejudice and PERFORMANCE TO DATE* Resource Groups (ERGs) are essential to challenges. Mara joined the Mexico chapter of how we drive connection and engagement Pride, Dell’s LGBTQIA+ ERG, on her very first FY20 33% for our people. day of work. A few years later, she became Pride Mexico chapter lead, a position she held FY21 44% for two years. Mara gets great satisfaction from advocating positive change and making a FY22 47% difference in people’s lives. These internal organizations provide professional 0% 10% 20% 30% 40% 50% development, community giving, volunteering Percentage of employees participating in ERGs opportunities and social engagements. ERGs also serve as a great tool for increasing global “ After ERG events, I often hear cross-cultural understanding and communication skills that provide a critical advantage, benefiting from people who felt they could both our team members and our customers. We come out at work — or apply for encourage team members to join at least one ERG outside their backgrounds and interests to a particular role or speak out expand their awareness and provide opportunities about an issue — because of to practice allyship. With 47.0% of our team members participating in our example.” at least one ERG, we are on track to achieve our MARA DEL VALLE 2030 goal ahead of our projected timeline. SENIOR ANALYST, LOGISTICS (LATIN AMERICA) * Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 78 FY22 ESG REPORT
BUILDING COMMUNITY & BELONGING Employee Resource Groups Champions for corporate culture Dell has 13 ERGs with more than 470 chapters in 76 countries across four Dell’s corporate culture benefits from the dedicated efforts of some of our most engaged regions. team members, the Culture, Diversity & Inclusion (CD&I) Champions. This group of more than 1,300 team members puts their beliefs into action, serving as brand enthusiasts who ERGs saw significant gains in understand the business imperative behind diversity and inclusion. They work to amplify participation during the global pandemic our stories and messages on social channels, support corporate observances and raise as the need for community and awareness about educational opportunities and CD&I programs. connection increased. Exponential growth noted for Planet ERG (over 6,000) and GenNext ERG “I believe people who participate Learning about differences (over 5,000.) in ERGs help to shift corporate Victor Yeung began working for Dell 14 years ERGs partner with Dell on corporate culture for all team members. ago and credits Dell’s people-first philosophy for observances including Black History Belonging to a nonaffiliate ERG his longevity. It’s also a strength he’s seen shine Month, International Women’s Day, Asian through the challenges of the past few years. Pacific American Heritage Month, Pride helps me in my career and my Victor knew his experience launching the Greater Month, Earth Day, International Day of understanding, as much as it helps China chapter of the Conexus ERG would be Persons with a Disability, Veterans Day beneficial when he heard the Women in Action and Hispanic Heritage Month. the women we support.” ERG’s APJ & Greater China chapters were looking for leadership. VICTOR YEUNG SENIOR MANAGER, ACCOUNT SERVICES MANAGEMENT Victor also sees a distinct business advantage to (ASIA PACIFIC, JAPAN AND CHINA) participating in ERGs. “ERGs are a great resource for learning how different cultures operate, even within the same region. For example, some cultures are shy and others are very outspoken. When you learn about those differences, you can adapt your behavior to help improve communication strategies and outcomes across them, with coworkers and customers, too.” INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 79
CULTIVATING INCLUSION Foundational learning INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 80
FOUNDATIONAL LEARNING CULTIVATING INCLUSION GOAL Advancing By 2030, 95% of our employees will participate in inclusivity through annual foundational learning education and on inclusive principles and practices conversation PERFORMANCE TO DATE* Dell is committed to cultivating an “I truly enjoy working FY20 15% inclusive work environment. To advocate at Dell. It’s always felt this, we provide all our team members FY21 33% with foundational learning on inclusive like a small company. FY22 99% principles and practices annually. We also There’s a level of provide opportunities, tools and resources Coming together to learn communication that 0% 20% 40% 60% 80% 100% to encourage collaborative conversations lets us know what’s Percentage of employees participating in annual on these topics across all teams, levels and Tonya Drummonds has worked for Dell for 24 foundational learning business areas throughout the year. years. As a leader and a CD&I Champion, Tonya going on and feel has invested heavily in connection and education connected. There have in her own organization. Tonya hosts monthly cultural events in which always been challenges A great leader at Dell understands the importance team members learn all about new regions and as a woman in a male- of achievement, balance, connection, diversity traditions. She also facilitates training that goes dominated industry, and inclusion. They also understand the well beyond the foundational requirements, importance of moving beyond awareness of inviting experts to share best practices. She even but it’s been a great biases to understanding how inclusion and built a resource page to support her team. journey, and I’ve always belonging impact our culture, our ability to “In [the field of] security, there’s not a lot of felt relevant.” collaborate and drive results — internally and opportunity to pivot because our roles are so externally. We will help strengthen this focus specialized, so it’s crucial to build that sense of TONYA DRUMMONDS by continuing to assess and integrate inclusive belonging and inclusion in our corporate culture. DIRECTOR, SECURITY & RESILIENCY principles and practices into all our leadership It’s so much fun! It’s a genuine celebration when (NORTH AMERICA) development programs and trainings. we come together to learn.” * Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 81 FY22 ESG REPORT
CULTIVATING INCLUSION Meaningful work & inspiring leaders INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 82
MEANINGFUL WORK & INSPIRING LEADERS CULTIVATING INCLUSION GOAL Meaningful work Innovation and allyship Each year through 2030, Anne-Marie McReynolds took the path less 90% of our employees will drives innovation traveled to arrive at her career in tech. Seven rate their job as meaningful years of night school brought her from journalism We believe everyone should have access to engineering. Her nonlinear path and intrinsic PERFORMANCE TO DATE* empathy allow her to tackle problems from a to an inclusive work environment and unique and effective point of view. has the responsibility to create it. Our FY20 93% Culture Code outlines what we believe, Anne-Marie’s role is to create artificial intelligence (AI) that thinks like a human. Her focus is creating FY21 91% how we work and how we lead. We are “a AI that behaves like a caring, unbiased human diverse team with unique perspectives and who can recognize frustration and intent and FY22 88% committed to equality, trust and advocacy respond accordingly. She views her work as a for one another.” form of extreme empathy and allyship in action. 0% 20% 40% 60% 80% 100% With five U.S. Patent and Trademark Office Percentage of employees who rate their job (USPTO) pending patents based on this as meaningful approach, Anne-Marie is leveraging her talent “If it’s a problem for me, it’s a problem and skills to truly help drive human progress. She for my team members. If it’s a problem engages in inspirational work within Dell with our Black Networking Alliance ERG, and outside of for them, it’s likely a problem for my Dell with organizations dedicated to equitable and customers. And if it’s a problem for accountable AI. my customers, I bet it’s a problem for “Allyship through ERGs has really made my experience by far more inclusive; it empowered people everywhere. So how can I use me through internal networking and allowed me my skill sets to fix it?” to do the same for others.” ANNE-MARIE MCREYNOLDS TECHNICAL PRODUCT OWNER, CHIEF TECHNOLOGY & INNOVATION OFFICE (NORTH AMERICA) * Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 83 FY22 ESG REPORT
MEANINGFUL WORK & INSPIRING LEADERS CULTIVATING INCLUSION GOAL Each year through 2030, Driving inclusion 75% of our employees through leadership will believe their leader is inspiring We are focused on inclusive leadership practices, from education around topics of PERFORMANCE TO DATE* inclusion, to being collaborative and culturally intelligent. Our FY20 83% leadership principles set expectations for championing equality, valuing FY21 83% different backgrounds and appreciating FY22 87% unique perspectives. “We are very focused 0% 20% 40% 60% 80% 100% Percentage of employees who believe their leader on ensuring culture, Supporting leaders to enhance is inspiring Our People Philosophy is based on the idea that diversity and inclusion diversity and inclusion when we grow as individuals, we grow together. don’t become just We believe that we can help all our talent achieve Wendy Sewgobind is passionate about working their best, balance life, and connect with others metrics, but instead with leaders around the globe to enhance by creating a culture that fosters diversity truly become part of diversity and inclusion within their organizations. and enables team members to rise to their full “We found leaders need support to bring our potential through representation, inclusion, our everyday work and foundational training to life and ensure completion sponsorship and equity. personal life.” didn’t become a ‘tick the box’ activity.” WENDY SEWGOBIND Wendy leads workshops guiding leaders REGIONAL HR DIRECTOR (EUROPE, through real-life scenarios to help them respond MIDDLE EAST AND AFRICA) thoughtfully to team members’ unique needs and concerns. The workshops include resources leaders can use and share to help drive inclusion awareness, inspire team members and empower everyone to be their authentic selves. * Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 84 FY22 ESG REPORT
TRANSFORMING LIVES At Dell Technologies, we’ve always believed in the power of technology to solve the biggest challenges facing society Since the beginning, we have focused on making access to technology affordable and available to all. As a global leader we have limitless possibilities to transform lives when we apply our scale, portfolio and partnerships to create a digitally inclusive future where everyone can realize their full potential. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 85
TRANSFORMING LIVES At the core of everything we do Our Transforming Lives goals align to these focus areas: We enable equal access to digital We use technology to enable quality We help communities with our giving and opportunities healthcare volunteering programs Society is undergoing a rapid digital transformation, and Technology has become a critical component in healthcare, helping Dell team members around the globe are dedicated to the communities are struggling to keep pace. Over the past decade, to store, share and analyze vast amounts of data to improve communities in which they live and work. We empower them to use emerging technologies have enabled businesses to become the quality of care given. At Dell, we support the expansion of their skills, knowledge, time and personal contributions to create the untethered to a place, disrupting economic growth trends. New research access and computing capacity through our work with changes they want to see in the world. As part of our initiatives, we jobs are emerging that demand quick uptake of new skills. Basic partner organizations. We invest to promote innovative healthcare collaborate with several nonprofits to donate technology to those participation in school systems and the workforce requires access to approaches, including the use of emerging technologies, such in need. We partner with communities to lend our time for cleanup devices and connectivity, as well as digital skills that many families as mobile solutions for rural health workers and advanced data and community projects, and we volunteer our time and expertise don’t have today. All these dynamics have created a digital divide, analytics to promote evidence-based decision-making. Our to help nonprofits digitally transform their organizations. Our team separating those who have the means to seize opportunities in a technology is used to enable precision medicine to fight children’s members are passionate and engaged in our commitment to create digital economy and those who don’t. The digital divide has had cancers and rare diseases. We are helping to create collective data a better world for everyone. It’s why we provide them with the a disproportionate impact on underserved communities around sets that enable individualized patient treatment, and we’re helping tools, resources and opportunities to give back and volunteer. the world. Those impacted lack access to basic digital needs — those living with motor neurone disease to communicate in their devices, broadband, digital literacy and critical skills for the digital own voice and prepare their loved ones for what’s to come. When economy — putting them at risk of falling further behind. Dell is we help communities and individuals live healthier lives, they can using our technology, scale and expertise to bring more people into focus on education and seizing economic opportunities. the digital world by providing access to technology and skill building opportunities to communities. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 86 FY22 ESG REPORT
TRANSFORMING LIVES MOONSHOT GOAL With our technology and scale, we will advance health and education through digital inclusion initiatives aimed at delivering enduring results for 1 billion people by 2030 In today’s digital economy, technology is no longer PERFORMANCE TO DATE* a luxury, but a necessity that is becoming more 1,000,000,000 essential with each passing year. As a global FY22 “Climate action, circularity and digital inclusion are high- technology leader, Dell plays a critical role in FY21 priority areas where we seek to make an outsized impact helping to build a digitally inclusive future. We’re committed to transforming the lives of 1 billion 800,000,000 FY20 in the world. Through our robust digital inclusion portfolio people by 2030 by using our technology, our scale of programs, we’ve helped transform the lives of nearly and our team members to address the digital divide and create a digitally inclusive world. 600,000,000 160 million people! I am proud of what we’ve accomplished In the past year, we have made strides in so far and eager to reach our goal of transforming 1 billion transforming lives around the globe. We’ve cumulatively reached nearly 160 million people 400,000,000 lives by 2030. By working together with our customers, through initiatives like Digital LifeCare, Solar partners, suppliers, communities and team members, we Community Hubs and Student TechCrew, as well can deliver both business and societal value, truly creating as through our Tech Pro Bono program, which is 200,000,000 aimed at helping nonprofits digitally transform so 159,742,242 a digitally inclusive future for all.” they can continue their important work. CASSANDRA GARBER 0 VP, ESG (ENVIRONMENTAL, SOCIAL AND GOVERNANCE), DELL TECHNOLOGIES We believe technology does and will dramatically improve lives, but it is imperative that everyone Total number of people reached (cumulative) has access to technology and the skills needed to make the most of a digital world and reach their full potential. *Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 87
RECENT HIGHLIGHTS Digital LifeCare is transforming the management of NCDs Digital LifeCare is a comprehensive technology solution to support the Government of India’s program for screening and managing noncommunicable diseases (NCDs). New this year are a mobile app and the Digital LifeCare (DLC) Dashboard, which provides insights into the data collected, Geographical Visualization (GIS maps) for performance tracking, and easy-to-download views and reports. Both features make it easier for nurses and doctors to monitor a patient’s journey from assessment to treatment and follow-up. Since its launch, 135 million individuals have been enrolled in the system, and our partner Tata Trusts has trained over 94,000 healthcare professionals. This year we plan to continue to build on the success of this program, to help improve NCD management for millions. BBC StoryWorks went to India to meet Mrs. Ravanamma, an auxiliary nurse midwife who leverages the Digital LifeCare system to stay connected to her patients, no matter where they are located. Learn more. 135M+ 48M+ 33 citizens enrolled screenings actives states (as of FY22) (as of FY22) (as of FY22) 593 94,562 135,217 districts users trained on-boarded users (health (as of FY22) (as of FY22) workers, doctors, officials) (as of FY22) INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 88
RECENT HIGHLIGHTS Skill building for a digitally Partnering to map global school inclusive future locations and internet status to To deliver digital inclusion, we must go beyond the help drive digital inclusion device and high-speed broadband to ensure we’re Dell and UNICEF USA have teamed up to tackle creating solutions with lasting benefits. That not one of the biggest issues facing children’s only includes providing skill building opportunities learning globally: connecting every school to that help people understand the basics of the internet. Together, we know that when all computer technology and how to use it, but also children have access to equitable learning, kids involves training in soft skills, such as critical can survive and thrive. This two–year partnership thinking, communication and collaboration. supports Giga, a joint initiative of UNICEF and the Since 2013, Dell has invested over $90 million International Telecommunication Union (ITU). It to advance STEM initiatives globally. We’re also aims to connect every school in the world to the creating innovative partnerships and programs Internet by 2030. Giga maps schools’ Internet to create pathways for talent to enter — and access in real time, creates models for innovative reenter — STEM-related jobs, regardless financing, and supports governments contracting “We are very excited to of whether they are students or seasoned for connectivity. professionals, have different skills or are from Dell is proud to be a part of this incredibly have Dell join the Giga another industry. important initiative. By understanding where global network Through our partnerships we’ve helped create young people do or do not have access to the of partners. They will open-to-all digital literacy programs, such as the internet, we can better identify gaps and work Get Digital Skills website and Develop with Dell. toward closing the digital divide. add significantly to We’ve developed resources to help educators Giga’s open-source incorporate digital skill building into their curriculum with Blended Learning, and we provide efforts to identify, certification and skill building opportunities with finance and connect Student TechCrew, Girls Who Game and Solar Community Hubs, formerly Solar Learning Labs. every school in the These programs help deliver digital literacy, as world to the internet.” well as life and career skills aimed at preparing students and community members for the future. CHRIS FABIAN GIGA CO-FOUNDER AND LEAD INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 89
RECENT HIGHLIGHTS Combining the best of Dell Technologies awarded the classroom teaching with the prestigious India CSR Award flexibility of online learning In December 2021, Dell received the prestigious In 2021 the Aiken County Public School District India CSR Award for Technology in CSR. This announced a new bold initiative to bring STEM award recognizes Dell for its contributions education into their schools through new learning to technology in CSR for the Student initiatives. In partnership with Dell and the North Entrepreneurship Program and SheCodes Augusta Chamber of Commerce, we launched Innovation Program in partnership with Atal the Student TechCrew program. Innovation Mission, NITI Aayog, Government of India and Learning Links Foundation. Student TechCrew is a skill building program developed for high school students that promotes future career skills and learning via Dell Technologies received hands-on experience. Through the program the prestigious India CSR students help their peers and school staff Award for Technology in members with technology issues through a CSR in December 2021 student-led help desk. As part of the program Dell provides students and teachers the curriculum, mentorship and tools necessary for course Receiving this award is testament to our completion. Upon completion, students become environmental, social and governance (ESG) Dell TechDirect certified, helping make them work and how we’re using our expertise and employable for tech jobs. technology to build a digitally inclusive world. “The Dell TechCrew program has created a We are providing students and young girls Silicon Valley in the midst of a thriving cyber the futuristic skills they need to reach their community by providing students with the skills full potential. needed to be competitive in a regional and global environment. The students have gained a sense of pride not only in themselves but within their school and their community,” says Mr. Kenneth Lott, CTE Director, Principal, Aiken County Career and Technology Center, Aiken County Public School District. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 90
TRANSFORMING LIVES GOAL Each year through 2030, 50% of the people empowered by our social and education initiatives will be those who identify as girls, women or underrepresented groups Dell is helping to create a more inclusive and Since its launch, Girls Who Game has supported equitable world by bringing digital literacy and life 221 clubs, with over 2,200 girls who have and career skills to girls, women and underserved participated. Club activities inspire, educate and “We started this program in communities. One program that is helping equip girls with the skills and insights they need 2019 in Canada with 50 girls accelerate these efforts is Girls Who Game. to be successful in STEM. Girls Who Game is Launched in 2019 in partnership with Microsoft building a pipeline of future female engineers and (five clubs) as part of the and Intel, Girls Who Game is a skill building leading young women to discover technology in a first cohort. Now we’ve program that offers a personalized, safe and supportive and fun environment. supportive community for girls to learn about expanded across three STEM. Together with coaches, mentors and PERFORMANCE TO DATE* countries and three role models, participants join a cohort to build FY20 FY21 FY22 languages. Our hope with their self-efficacy and confidence through gaming challenges. Girls Who Game is to spark an This year, we introduced Sister Clubs through everlasting interest in science, which Girls Who Game clubs from different technology, engineering and regions come together to collaborate, experience mathematics (STEM).” different cultures, and understand different 51.7% 56.1% 59.3% geographies, views and perspectives. KATRINA PAPULKAS Percentage of people reached who identify as SR. EDUCATION STRATEGIST, DELL TECHNOLOGIES girls, women or underrepresented groups This goal aligns with both the Cultivating Inclusion and Transforming Lives focus areas by reaching those who identify as girls, women and underrepresented groups or minorities through our social and education initiatives. *Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 91
RECENT HIGHLIGHTS Girls Empowerment Workshop “The Pro Bono team provides amazing support throughout, providing all the tools necessary for In October of 2021, Dell hosted a special Girls success. At the conclusion of the workshop, I Empowerment Pro Bono Consulting Workshop walked away with an increased sense of pride in partnership with our Women In Action ERG. in being a Dell employee, and happy knowing I This unique workshop celebrated the International made a difference in my community,” says JoAnne Day of the Girl and supported Dell’s ongoing Vaughn, another volunteer and member of the commitment to cultivating inclusion and building a Girls Empowerment planning committee. digitally inclusive world. Of the nonprofits that participated, 91.0% said The workshop connected 35 Dell team they found their goals for participating in the members across the U.S. with seven nonprofit Pro Bono Consulting Workshop were met or organizations facing critical capacity-building exceeded and that they were confident in their challenges. Over two half-day virtual sessions, ability to implement their workshop deliverable. Dell team members and nonprofits collaborated to create deliverables and implementation plans to address the challenges. “There is nothing more inspiring than helping a girl realize her potential to accomplish anything,” says Carla Richardson, a Dell volunteer and member of the Girls Empowerment planning committee. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 92
TRANSFORMING LIVES GOAL By 2030, we will use our expertise and technology to help 1,000 nonprofit partners digitally transform to better serve their communities Each year, Dell contributes to more than 18,000 transformation. Nonprofits can be nominated by PERFORMANCE TO DATE* nonprofit organizations globally through our our employees, partners, or they can come to us 1,000 funds, technology and expertise. Nonprofits play directly. Today we engage with them in two ways: FY22 a crucial role in driving positive social change in Pro Bono Consulting Workshops and Pro Bono the world. They are instrumental to our own work Projects. Workshops will focus on multiple topics. FY21 in driving environmental, social and governance Each nonprofit will work on a challenge specific 800 FY20 (ESG) impact. Yet we know from our own study to them, while a project is customized to one that many lag in their own digital transformation. nonprofit. Projects will be for a set period of one This can, in turn, have an impact on their ability to to six months during which our team members 600 help communities and generate positive change volunteer to lend their time and expertise. for the groups they support. To date we have hosted 21 workshops, in support “Making a difference is at the At Dell we understand the importance of digital of 222 nonprofits globally. 400 transformation and the need to keep up with heart of the Dell Tech Pro industry trends. We understand the negative 222 Bono program. The program impact old technology and business complexities 200 is expertly managed, which can have on progress. That’s why we’re committed to helping 1,000 nonprofits digitally makes it easy to lean in transform their business by 2030. 0 with other Dell volunteers One way we are achieving this goal is with our Total number of nonprofit partners supported in and share needed skills and Tech Pro Bono program. Tech Pro Bono is a their digital transformation journey (cumulative) portfolio of pro bono programs that connect our expertise. It’s a pleasure to talented and diverse employees with nonprofits be a part of this.” around the world who need help with digital MEGAN BRANCH TECH PRO BONO VOLUNTEER & PLANNING COMMITTEE MEMBER *Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 93
RECENT HIGHLIGHTS MetLife & London School of “Nonprofit organizations Hygiene & Tropical Medicine play a vital role in In late 2019, Dell participated in a volunteering building healthy, event hosted by MetLife. The event was resilient communities. MetLife’s “Opportunity Workshop,” which has since inspired our own Pro Bono Consulting Pairing skilled MetLife Workshop program. and Dell Technologies Since then, we have partnered with MetLife on volunteers with four more collaborative Pro Bono Consulting Workshops, including the first ever joint nonprofits in the U.S., international workshop in the United Kingdom U.K. and Ireland helped and Ireland. One of the organizations that was nominated drive innovation by one of Dell’s team members to participate in and solutions for the joint United Kingdom and Ireland workshop greater quality, reach was the Cancer Survival Group at the London School of Hygiene & Tropical Medicine, a and impact.” university research group. During the workshop APRIL HAWKINS in December 2021, Dell and MetLife volunteers ASSISTANT VP, METLIFE CORPORATE developed a solution to help the Cancer Survival GIVING AND EMPLOYEE VOLUNTEERISM Group process and analyze huge data volumes faster and more efficiently, as well as to improve cybersecurity and to enable users to access the results of the analyses online in flexible tables and dynamic graphics. From that workshop, the Cancer Survival Group and Dell will partner on a Pro Bono Project to help them implement those solutions. This project is a great example of how the Tech Pro Bono program is transforming lives and helping nonprofits digitally transform. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 94
TRANSFORMING LIVES GOAL Each year through 2030, 75% of our PERFORMANCE TO DATE* employees will participate in giving or FY20 FY21 FY22 volunteerism in their communities % % % At Dell, our team members play a critical role members get involved in supporting nonprofits 59 51 50 in helping to drive environmental and social and communities, they are happier, and the Percentage of employees participating in giving/volunteerism impact. They are passionate about helping the impact of our work can go even further. communities in which they live, work and play. We help feed this passion by empowering them to use their skills, knowledge, time and personal RECENT HIGHLIGHTS contributions to help make a difference. How our Banaglore team is In the past five years, our team members have empowering girls and the volunteered over 5 million hours of their time and effort to help nonprofits and communities grow. planet Their support includes global relief donations, volunteering initiatives close to home and working Since 2012, the Dell Bangalore team has with nonprofits to help them digitally transform. championed the Girls Empowerment Program “I feel great while working on these community Dell also gives to relief efforts and matches our and the overall development — from education engagement activities while working at Dell, and team members’ monetary donations — up to to career readiness — of girls from rural India, $10,000 per employee per year — to the causes providing over 13,500 instances of support. I feel delighted to see the impact I could create they care about. And for team members who Several team members are leading the Tree leading these activities along with my day job. volunteer 10 hours or more in a fiscal quarter, Dell Plantation Initiative for the Dell India team provides them with a $150 “cause card” that they through our Planet ERG. Since May 2019, they Support from the manager, ERG leaders and all can donate to the vetted charity of their choice. have planted 265,000 trees across India. the ERG members makes it possible to be a part of Just as we believe technology is the engine of something bigger than myself. Thank you, Dell.” human progress, we know that when our team ARCHANA JAIN SENIOR ADVISOR, PROJECT/PROGRAM MANAGEMENT & TEAM MEMBER VOLUNTEER, DELL TECHNOLOGIES *Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 95
UPHOLDING ETHICS & PRIVACY Upholding the highest standards of integrity Our Ethics & Privacy goals align to these focus areas: We continue our enduring commitment to We ignite and inspire passion for integrity We drive a high standard of responsibility in transparency and choice in all of our team members our third-party ecosystem We will continue our enduring commitment to transparency so that We are committed to ensuring that new talent and existing team We hold our partners, suppliers, vendors and other third parties customers are informed of our personal data practices, and may members align to our strong culture. We cultivate our team to the same high ethical standard we set for ourselves. Our then easily exercise their choices about personal data processing. members’ desire to do the right thing by providing concise policies, expectations for third parties are clearly set forth in our Code of Our global privacy program is a source of pride and inspiration within innovative digital tools and interactive awareness to transform Conduct for Partners and Supplier Principles. We help our third the company. At Dell Technologies, we ground our long-standing Dell’s values into everyday actions and decisions. Leader parties digest our expectations with interactive and memorable privacy commitment in respecting customers’ interests in their data commitment to integrity and accountability is managed by robust awareness materials using best-in-class learning software, such and delivering on our privacy promises. executive promotion reviews and measured by our Tell Dell and as our new Articulate-based Compliance Training for Dell Partners ethical culture surveys. course, developed in 2021. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 97
UPHOLDING ETHICS & PRIVACY MOONSHOT GOAL By 2030, we will fully automate our data control processes, making it easier for our customers to control their personal data Ultimately, transparency drives customers’ trust. Good business practices around use of personal data must consider, first and foremost, the human impact of personal information collection and use. As a global company, we comply with privacy laws all over the world and help shape these laws with our customers’ privacy preferences in mind. RECENT HIGHLIGHTS Improving customer experience Respecting privacy and with the Privacy Trust Center protecting team members in Dell’s new Privacy Trust Center was launched in the pandemic 2021 as our centralized location for customers During the pandemic, companies and government to learn more about our privacy practices and agencies have had to protect public health while data life cycles, view their privacy dashboard and also protecting personal data. Dell worked with submit privacy requests. ServiceNow to address privacy and security Visit the Privacy Trust Center for information and requirements concerning vaccination tracking “Customers trust their digital data to us, and we a video tour. for Dell facilities. We also partnered with Intel ® and Leidos to create a secure contact tracing pledge to manage and protect it in a transparent solution the Centers for Disease Control and way with integrity and accountability.” Prevention used during the pandemic. MICHAEL DELL CHAIRMAN AND CEO, DELL TECHNOLOGIES INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 98
ETHICS & PRIVACY GOVERNANCE We are automating our data control processes to make it Upholding personal data ethics easier for customers to control their own data. At Dell, we believe processing personal data based on a customer’s preferences is critical to TRANSPARENCY CHOICE building and maintaining trust. Delivering on “ An enduring our privacy commitments is a core part of how commitment to privacy We give clear notice to customers of what We recognize customers’ interests in their we operate. data we collect, the processing purpose and personal data and respond to their data- is an essential part of related details, plus how to exercise choices related requests, regardless of whether they Transparent and accountable personal data concerning our personal data processing. are located in a jurisdiction where this is values and requirements are embedded in our any trusted customer When we update our privacy notices, we only required by law. Code of Conduct, as well as our Global Data relationship. Driving apply material changes to data collected from Privacy, Information Governance and Information customers after the changes’ effective date, Security policies, which apply to all team greater transparency or in instances the customer consented to the GOVERNANCE members. These policies are grounded in core and control to change per applicable laws. principles contained in global privacy frameworks Dell has a global privacy program, led by (e.g., OECD, APEC) and privacy laws (e.g., GDPR, customers every day the chief privacy officer, which includes an LGPD, CCPA/CPRA). helps us meet this USE executive stakeholder committee composed We require all team members to receive training commitment in a of cross-functional leadership. The program on these policies, and offer additional material We are committed to use customer personal conducts meetings on an established cadence based on role. We supplement our awareness meaningful way.” data in compliance with global laws. We and generates metrics for reporting to senior efforts with special events, such as observing require team members to limit customer leadership or inclusion in board of directors International Data Privacy Week. Anyone — DEANNA DRAPER personal data processing to activities required reporting as appropriate. Operationally, the including customers, team members and people SENIOR VP, LEGAL FOR PRIVACY AND privacy program is supported by dedicated SECURITY, DELL TECHNOLOGIES to fulfill the objectives outlined in our notices. legal and program teams, investigators, as well outside of Dell — may report privacy concerns as multiple business-specific privacy groups via [email protected]. supporting operationalization of privacy program components. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 99
UPHOLDING ETHICS & PRIVACY GOAL Each year through 2030, 100% of our team members will demonstrate their commitment to our values We embed business integrity and compliance PERFORMANCE TO DATE* within our everyday business practices. Our expectation is that our team members FY20 FY21 FY22 demonstrate commitment to our ethical principles and that they are empowered to report suspected misconduct. % % % 100 100 100 “Integrity is synonymous with Dell Percentage of Dell employees who completed assigned Technologies because it’s embedded ethics and compliance training in everything we do. We continuously FY20 FY21 FY22 and consciously set high ethical standards and give our team the digital tools and resources to hold ourselves and our partners accountable in their % % % 100 100 100 everyday actions.” Percentage of Dell employees who agreed to the Dell MIKE MCLAUGHLIN Technologies Code of Conduct CHIEF ETHICS & COMPLIANCE OFFICER, DELL TECHNOLOGIES * Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 100 FY22 ESG REPORT
RECENT HIGHLIGHTS My Ethics app Sharing our digital transformation journey At the core of our digital suite is the My Ethics app, which allows for Dell team members presented to audiences at the 2021 Global completion of assigned training, navigation of the Dell Technologies Ethics Summit, Trace International Anti-Bribery Forum, Ethics Code of Conduct, and a streamlined Speak Up capability wherever & Compliance Initiative (ECI) Impact 2021, and shared insights Dell team members are located and on any mobile device. Featured in Compliance and Ethics Professional Magazine by Society of in the LRN-powered My Ethics app is our award-winning course Corporate Compliance and Ethics (SCCE). Our goal is to help Standing Strong Together: Confronting Racial Inequity. empower organizations by sharing our digital transformation journey in the ethics and compliance space. Dell is at the forefront of Reporting ethics concerns developing and leveraging the power of artificial intelligence (AI) and machine learning tools such as, Dell Image Analysis (DIA) to detect Dell enhanced mechanisms for confidentially reporting ethics and address compliance risks. concerns by adding a QR code as an additional way to Speak Up. When reporting a concern, team members, contractors, third Interactive scenarios parties and others may select from multiple languages and opt to submit anonymously. We designed and launched a series of highly interactive scenario- based ethics and compliance training modules. These bite-sized microlearning courses were delivered at the time of need and resulted in highly rated learner satisfaction and engagement scores. Scan the QR code to 127,556 4.7/5 try it for yourself! 2021 total team 2021 new course member completion feedback rating (unique learners) 636,406 2021 total course completion INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 101 FY22 ESG REPORT
UPHOLDING ETHICS & PRIVACY GOAL By 2030, 100% of the partners we do business with will demonstrate their commitment to our values Our key strategic partners* are an extension of RECENT HIGHLIGHTS † PERFORMANCE TO DATE our business, and therefore, our reputation and impact. It is essential these partners operate 100% 96% 100% 100% lawfully, ethically and in line with our expectations 94% as outlined in the Dell Technologies Code of 80% Conduct for Partners. For our go-to-market partners, we go an extra 60% step to help ensure Dell products and services Dell Image Analysis supports are purchased with integrity and transparency. loss avoidance 40% In 2021, we continued to team with industry experts to provide our partners with digital tools We’re creating transparent and trusting 20% to assess and improve their own anti-corruption relationships with our business partners programs. We also leverage business intelligence through creation and implementation of Dell to continuously evaluate our direct partners to Image Analysis (DIA), our innovative fraud 0% help ensure we flag potential areas for inquiry in a FY21 FY22 proactive and timely manner. prevention tool. DIA uses machine learning, AI and programmer feedback to analyze images to detect falsification at the metadata level. Team Percentage of partners agreed to members created this innovative tool, which the Code of Conduct for Partners received the GameChangers 2021 Award. This Percentage of partners completed event and award, sponsored by Dell’s GenNext assigned ethics and compliance Employee Resource Group (ERG), gives team training members an opportunity to showcase their entrepreneurial spirit and deliver game-changing ideas already impacting our customers. Read more here. *Partner refers to audited metal–tiered solution providers and authorized commercial distributors in the Dell Technologies Partner Program. † Please see our 2030 Goals Dashboard for more on the progress, scope and measurement of this goal. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 102
SUPPLY CHAIN SUSTAINABILITY Operating our supply chain responsibly is a priority for our business Responsible and sustainable manufacturing processes not only enable meaningful progress, but they also protect our brand and strengthen our customer relationships. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 103
SUPPLY CHAIN SUSTAINABILITY Our approach to supply chain sustainability INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 104
Sustainability in our supply chain We partner with thousands of companies in our Adherence to our Supplier Principles is a condition pandemic and supply chain challenges to find new global supply chain to create technologies that of doing business with Dell. The Supplier ways to address issues and help maintain and drive human progress. Principles form the basis for our social and build SER capability. In recent years, global challenges have required environmental due diligence programs and include This update (previously shared in our standalone, new levels of resilience and innovation from Dell the following: annual Supply Chain Sustainability Progress Technologies and from our suppliers. Amid these • All applicable laws, regulations and purchasing Reports) presents a comprehensive view of the challenging times, our commitment to social and requirements. work we do to advance SER performance. One environmental due diligence has not changed. • Responsible Business Alliance Code of Conduct. other change — we are moving from calendar 44 year to fiscal year reporting. Beyond this, our Dell operates one of the largest social and • Dell Code of Conduct. FY22 Environmental, Social and Governance environmental responsibility (SER) assurance and • Dell Human Rights Policy. (ESG) Report captures our activities across our engagement programs in the technology sector. • Dell Responsible Sourcing Policy. entire value chain to drive positive impact for Through our SER initiatives, we proactively people and the planet. identify and mitigate issues throughout the tiers • Dell Statement Against Slavery and Human of our supply chain, including final assembly, Trafficking, compliant with the Australia Modern direct and sub-tier suppliers. Slavery Act, the U.K. Modern Slavery Act and We focus on the most salient human rights the California Transparency in Supply Chain Act. and environmental issues, using insights gained • Dell Vulnerable Worker Policy. “Our social and environmental responsibility through our own operations, collaboration • Relevant International Labour Organization programs enable us to sense risk in our supply with industry partners, and engagement (ILO) conventions, including the eight with stakeholders that empower us to drive fundamental conventions and conventions 1, chain and adjust as needed in an ever-changing responsible manufacturing practices and 102, 131, 155 and 170. world. This makes it possible for us to continue diversity and inclusion in our supply chain. Our • Relevant International Organization for collective insights underscore the need for strong Standardization (ISO) management systems. to advance each of our commitments to partnerships with our suppliers. • National Institute of Standards and Technology responsible operations: championing the people Our supplier expectations for responsible and (NIST) Cybersecurity Framework. in our supply chain, protecting our planet and ethical business practices are informed by We work closely with our suppliers to help them building diversity among our supply base.” international standards, including the U.N. Guiding develop the necessary insight and capabilities Principles on Business and Human Rights, the to meet these requirements. Our supplier KEVIN BROWN U.N. Universal Declaration of Human Rights, the relationships and history of collaboration proved EXECUTIVE VP, CHIEF SUPPLY CHAIN OFFICER, DELL TECHNOLOGIES U.N. Convention on the Rights of the Child and critical as we worked together amid ongoing other relevant U.N. conventions. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 105 FY22 ESG REPORT
CONTINUOUS IMPROVEMENT MODEL Our four-element approach to a sustainable supply chain Dell Technologies works with suppliers that In addition, ongoing communication is critical demonstrate varying levels of maturity in their to driving continuous improvement in supplier own social and environmental responsibility (SER) SER performance. This includes communication Risk assessment programs. Recognizing this, we focus on building among our suppliers, SER specialists and sustainable progress with our suppliers through auditors. We also share SER performance metrics continuous improvement. alongside other key indicators, such as cost and Although we apply principles of continuous quality as part of our supplier quarterly business reviews (QBRs). Key executives attend QBRs and Continuous improvement across our extended due help determine future business awards, supplier improvement diligence efforts, we use a specific four- resources and policy, as well as address progress model element approach in our audit program. This Capability Audit continuous improvement model is a framework toward aligned goals. building for advancing supplier performance that includes We strive to work with our suppliers to improve risk assessment, supplier audits, corrective action their SER performance. However, in rare plans and capability building. We refer to each circumstances where it is evident that continued activity in the model as an element rather than poor performance will not be resolved through a phase or step because suppliers do not always further engagement, we may end our business move through the elements sequentially. For relationship with the supplier. Corrective example, the results of a risk assessment may action indicate an audit is not needed but there is a need to drive improvement in a targeted area. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 106
CONTINUOUS IMPROVEMENT MODEL — 1ST ELEMENT • Prior responsible manufacturing performance: This includes previous audit results and participation in our capability building efforts. • Additional insight: This refers to information obtained by Dell social and environmental responsibility (SER) team members during regular factory visits or from independent sources, such as regulatory and third-party organizations. • Amount of spend with the supplier: This is an Risk assessment indicator of our influence with the supplier and the relative size of their operations. Our engagement with suppliers at any tier — Based on the results of the SAQ and additional 45 including final assembly, direct and sub-tier insight, we classify suppliers as low-, medium- or — begins with an assessment of their social high-risk. Suppliers that are determined to be high and environmental risks. We conduct initial risk risk are required to complete a third-party audit assessments for our suppliers as part of their that looks at conformance to the Responsible onboarding process before they begin to do Business Alliance Code of Conduct as part of our business with Dell. SER qualification process. Suppliers complete a self-assessment Our risk assessment efforts do not end here. questionnaire (SAQ) that enables us to determine We also monitor SER risk for our Dell factories risk level using the following criteria: and suppliers on an annual basis. Continuous • Geographic location: This considers risks at improvement is important for our own operations, the country and/or local level around social as well as those of our suppliers. concerns, such as child labor and forced labor, and environmental risks, such as water quality and air pollution. • Commodity: This considers specific risks associated with manufacturing, such as labor intensity, manufacturing processes and paints or chemicals involved in the production of a commodity. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 107
CONTINUOUS IMPROVEMENT MODEL — 2ND ELEMENT we continued to conduct remote audits in some circumstances, as allowed by RBA guidance. Improvements in supplier factory audit performance, FY22 These temporary measures initiated for remote audits during the pandemic have enabled us to continue to protect the health and safety Overall 70% of the people in our supply chain, assure the responsible manufacturing of our products, of factories that went through at least their second audit cycle and meet customer demands while adhering to 47 recommended COVID-19 containment measures. improved their audit scores between cycles Third-party, RBA-certified auditors conduct our Audit supplier audits, which cover more than 40 topics across five areas: labor (including risks of forced Dell Technologies’ audit program is one of the labor, child labor and nonconformance with largest in the technology sector — both in weekly working hours requirements); employee terms of number of audits conducted and reach health and safety; environment; ethics; and 38% 79% 66% across the supply chain. It is designed to identify management systems. sustainability risks in our supply chain and enable As part of the audit process, auditors review suppliers to both mitigate issues and build their documents, observe daily work practices, and social and environmental responsibility (SER) interview supplier management and workers Final assembly suppliers Direct suppliers Sub-tier suppliers capabilities. In addition, we engage our suppliers independently to assess the implementation of in targeted assessments and programs to drive the SER standards in the RBA Code of Conduct. more opportunities for improvement. In FY22, auditors conducted 12,641 confidential High-performing supplier factories We expect our suppliers to adhere to the feedback interviews as part of the audit process. Responsible Business Alliance (RBA) Code Upon the completion of an audit, auditors issue of Conduct. Audits help monitor suppliers’ final reports to identify areas of nonconformance 68% compliance with the RBA Code of Conduct and with the RBA Code of Conduct. The number and highlight any areas of concern, which in turn severity of these audit findings — classified as of factories are high performing based on their audit scores helps Dell work with suppliers to take action and priority, major, minor and risk of nonconformance (at least 180 out of 200 for final assembly factories or 160 to improve their performance. In FY2246, 317 — will impact a supplier’s overall audit score, out of 200 for other factory tiers and no priority findings) factories in our supply chain across 16 countries which ranges from zero to 200. Audit findings underwent audits. can lead to the third and fourth elements of the Typically, our audits are all completed on-site. continuous improvement model: corrective action However, due to the ongoing impact of COVID-19, and capability building. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 108
CONTINUOUS IMPROVEMENT MODEL — 3RD ELEMENT Corrective actions and findings closed, FY22 271 167 factories completed closure audits were corrective actions completed to verify corrective actions Corrective action The next element of our framework is corrective action. When areas of nonconformance with 100% at final assembly factories the Responsible Business Alliance (RBA) Code 90% of Conduct are discovered through an audit, our of priority findings 89% at direct supplier factories Dell social and environmental responsibility (SER) overall were closed specialists work with the supplier to create a at supplier factories corrective action plan (CAP) to resolve the issues 90% at sub-tier supplier factories within RBA-defined timelines. Through the CAP, our team supports the supplier in identifying root causes and implementing mitigations that foster enduring improvement. 38% at final assembly factories Audit findings are classified from most severe to 69% least severe as follows: priority, major, minor and of priority and major findings risk of nonconformance. The severity of priority overall were closed at 67% at direct supplier factories and major findings requires prompt resolution. supplier factories Once the supplier addresses an audit finding, it 72% at sub-tier factories must be closed either by a second successful audit or Dell SER specialists who validate that the issue has been resolved. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 109 FY22 ESG REPORT
CONTINUOUS IMPROVEMENT MODEL — 4TH ELEMENT events connect suppliers with others working In FY22 in sustainability, examine emerging trends and risks, and share insight into best practices. • Self-paced online trainings: Most supplier factories can access Dell’s online training platforms (either by computer or mobile phone), which offer digital learning opportunities for supplier management in a variety of languages. In FY22, 590 factories had access to more than 218 training sessions. We use our online trainings to both encourage proactive Capability building knowledge and performance growth and drive 1,616 11,791 hours For the final element of our continuous corrective action. improvement model, we provide resources for • Frontline worker training: We recognize that unique participants attended of training on social and environmental our suppliers to help build their knowledge and workers are important partners for us, both in our capability building responsibility topics were completed skills — in areas such as forced labor, health and monitoring factories that may not meet Dell’s programs safety, and energy efficiency — to proactively expectations and in participating in actions to address social and environmental risks: help factories meet our standards. • Factory consultations: Our social and • Dell-developed tools and resources: We share environmental responsibility (SER) specialists tools we have developed with factories, work directly with supplier factories to better often to help automate monitoring areas of monitor and reduce risk. Engagements concern where the local team may not have are customized to support long-term the resources. An example of this includes our improvements. In previous years, consultations corrective action toolkits that provide resources were primarily held on-site at factory locations. to help suppliers address some of the most We continued to conduct factory consultations common audit findings. In FY22, we added the following topics to our toolkit catalog48: ozone virtually in FY22 as warranted, due to COVID-19 depletion substances management guidance restrictions. process; reimbursement requirement for 407 5,267 hours 6,524 hours • Dell-led trainings and webinars: We leveraged prohibited recruitment fees; early engagement unique supplier factories online training in-person training our digital tools experience to maintain training, audit checklist; and on-site assessment were represented sessions and webinars roundtable sessions, interactive webinars and guidance for solid waste vendors. virtual networking sessions. Targeted to supplier management and SER professionals, these INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 110 FY22 ESG REPORT
CONTINUOUS IMPROVEMENT MODEL CASE STUDY Innovative change management them with time to discuss upcoming change coaching and tracked supplier progress. To “The 100-day project process leads to improved management work and any challenges and/or leverage the learning as much as possible, Dell with Dell’s supplier achievements in implementation. promoted industry best practice sharing and resulted in several safety With each step in the process, the team actively cross-learning among suppliers in the area. The communicated information about the TenSquared innovative TenSquared framework for challenges successes. Managers As part of our ESG goals, we are committed to is more sustainable than a traditional approach ongoing engagement with the people who make program with other departments and senior and has increased the mutual trust between Dell were very responsive our products. This commitment requires ongoing management to obtain maximum support and and our suppliers. and workers showed support and partnership with our suppliers. cooperation. The 100 days of focus paid off in improved occupational health standards (OHS), As a result of the efforts and OHS innovation, great passion for jointly In FY22, we worked with Social Accountability as well as new processes and procedures: the supplier increased the rate of workers’ identified improvement International (SAI) to leverage a unique change compliance with safety behaviors from 79.0% management program. Using the TenSquared • “Blue Vest” observer roles were implemented. to 95.2%, which they maintained into FY23. The goals. Thanks to mutual approach, a peer-elected team of supplier These workers, wearing blue vests, are program has also encouraged workers to engage employees and managers collaboratively work to responsible for reminding and assisting in fixing OHS issues and has inspired more respect, partnership identify root causes of workplace challenges and colleagues who are not fully meeting OHS communication, respect and recognition. and collaboration then identify ways to resolve them. The timeline personal behavior standards. New hires and is 100 days; the goal is to find innovative solutions recent graduates have especially benefited from this supplier quickly to drive continuous improvement. the reminders these role models provide. identified and We engaged one of our suppliers in China to • Inspired by the program’s momentum, top addressed critical partner with us in using the TenSquared approach management also invested in developing safety issues. We to identify and address their environmental, efficient monitoring equipment. This technology health and safety (EHS) management concerns. helps take the program results to the next level appreciate Dell’s The supplier’s peer-elected team found several by enabling improved safety practices for shifts leadership in making challenges to address, including workers not around the clock. wearing personal protective equipment (PPE) • Launch and mid-point workshops for other this opportunity and not following other safe working procedures. factories in the area included best practice available in their During the 100 days, our supplier’s team applied sharing. After observing the improvements supply chain.” the TenSquared tools and methods they learned this supplier experienced, other factories in the to their internal training and evaluation processes. area have been inspired to implement similar JANE LIU The team also followed a work plan, offered each approaches. SOCIAL ACCOUNTABILITY other timely feedback and clearly defined the INTERNATIONAL division of responsibilities. The weekly coaching Throughout the process, our social and meeting was especially helpful as it provided environmental responsibility specialists offered INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 111 FY22 ESG REPORT
SUPPLY CHAIN SUSTAINABILITY Our progress in FY22 INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 112
* Key performance indicators 205 167 90% 69% 1,616 407 Initial audits Closure audits Priority audit Audit findings closed Unique participants Unique factories 50 We audit high-risk factories We work with suppliers findings closed or downgraded attending capability participating in on a two-year cycle. Selected to correct audit findings 49 other sites, including new and arrange closure or downgraded We collaborate with suppliers building programs capability building supplier factories, are audits to confirm findings The most severe findings to remediate priority and major Capability building engages programs also audited. are remediated. are prioritized for resolution. findings. Performance is participants across final assembly, Performance is tracked tracked cumulatively. direct and sub-tier suppliers who We track the reach of our cumulatively. can share the insights provided by capability building programs by training throughout their factories. the number of factories participating in our training. 2019 194 2019 2019 2019 2019 79 2019 196 95% 76% 1,0 347 2020 205 2020 141 2020 90% 2020 76% 2020 1,439 2020 413 FY22 205 FY22 7 FY22 90% FY22 1,616 FY22 16 FY22 7 69% 40 * In previous years, Dell reported supply chain metrics on an annual basis. Going forward these will be reported on a fiscal year basis, unless otherwise noted. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 113
* Key performance indicators 87% 79% 207 305,898 MTCOe 96% >$3B 2 Workers who do not Workers with one day Factories with active Emissions avoided Suppliers with Diverse supplier 52 exceed 60 working of rest per week water risk mitigation through energy sustainability reports spend 51 hours per week Of the 214,919 workers we plans reduction projects We encourage our suppliers to Dell is committed to spend We monitored 214,919 workers monitored, 79% took at least one 207 supplier factories in areas of We encourage our suppliers to publish annual sustainability reports $3 billion or more annually in our supply chain, of which 87% day of rest per week. water stress or with water intensive implement energy reduction that meet the Global Reporting with diverse suppliers. did not exceed 60 working hours processes had active water risk projects and track their progress. Initiative (GRI) requirements. This per week. mitigation plans. number represents suppliers by spend with sustainability reports. ,130 75 2019 91% 2019 7% 2019 231 2019 2 2019 3% 2019 >$3B 8 COe 9 MT 2 ,842 2020 89% 2020 84% 2020 236 2020 48 2020 95% 2020 >$3B COe MT 2 ,898 FY22 7% 305 >$3B 8 FY22 7 FY22 79% 20 FY22 COe FY22 96% FY22 MT 2 * In previous years, Dell reported supply chain metrics on an annual basis. Going forward these will be reported on a fiscal year basis, unless otherwise noted. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 114
Bettering the lives of people in our supply chain It takes hundreds of thousands of people 200 for final assembly factories and 160 out of around the world to make our products. We are 200 for other factory tiers), which align to high committed to partnering with our suppliers to performance based on the Responsible Business help protect human rights for all in our supply Alliance’s (RBA’s) Validated Assessment Program. chain. This includes treating all people with In our 2020 Supply Chain Sustainability respect and dignity, not tolerating forced labor Progress Report, we reported a target audit in any form and consistently providing safe attainment rate of 61.0%. In FY22, our social and working conditions. environmental responsibility (SER) specialists Our 2030 ESG plan demonstrates the focus Dell worked closely with suppliers to help identify places in these areas. Protecting human rights root causes of issues and drive improvement. and promoting the well-being of people in our Additionally, we engaged across our procurement supply chain are imperative. We have set specific organization and directly with suppliers’ senior goals to support our work in this area, including level leadership to emphasize SER expectations. providing safe and healthy work environments This resulted in a target audit attainment rate of where people can thrive; delivering future-ready 68.0%. skills development for employees in our supply The human rights due diligence efforts we chain; and engaging with the people who make undertake to assess and address actual or “The Responsible Business Alliance relies on member our products. potential risks to people in our supply chain are engagement to drive social and environmental To learn more about these efforts, please view being recognized. In our first-ever inclusion in responsibility in global supply chains. Our Responsible pages 57-60 of our FY22 ESG Report. this assessment, Dell was ranked number six out In FY22, we continued to face COVID-19 impacts of the 49 largest information communications Labor Initiative is an example where members like Dell and global supply chain issues head-on. Despite and technology companies (based on market Technologies are key in helping to promote due diligence these ongoing disruptions, Dell remained focused capitalization) in the 2020/2021 KnowTheChain on our work to champion the people in our supply supply chain responsibility benchmark. and protect the rights of workers vulnerable to forced chain. KnowTheChain is a coalition of nongovernmental labor.” organizations that use the U.N. Guiding Principles One area we made progress in is our suppliers’ on Business and Human Rights to evaluate ROB LEDERER target audit score attainment rate. Dell sets target technology companies’ actions and commitments CEO, RESPONSIBLE BUSINESS ALLIANCE audit scores for suppliers (at least 180 out of to responsibly produce products. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 115
BETTERING THE LIVES OF PEOPLE IN OUR SUPPLY CHAIN Driving ethical recruitment Due diligence efforts in this area include practices conducting confidential interviews with supplier Fees returned, FY22 management, and separately with workers as It is important to us that people working in our part of regular audits. We also take immediate supply chain are treated fairly. In some cases, action to investigate any allegations related to individuals who migrate away from their home recruitment fees that are received through our countries for work are forced to pay for various helpline, media sources or nongovernmental aspects of their recruitment, including costs organization reports. related to labor agents who facilitate their If we learn that a supplier is not following hiring, obtaining visas or undergoing required recruitment fee practices as required by the RBA preemployment health exams. As a result, Code of Conduct, we: these workers may find themselves indebted to their employers or at risk of falling victim to • Educate the supplier on why such fees forced labor. are unacceptable. Dell does not tolerate forced labor of any kind • Coach the supplier on effective ways to return and abides by the Responsible Business Alliance withheld fees. For instance, if fees are returned (RBA) Code of Conduct, which prohibits our to affected workers through paychecks, it suppliers from charging recruitment fees to is important that nonaffected individuals their workers, even in locations where these understand why their pay does not change. practices are legal. Through our social and • Track the supplier’s remediation progress. $505,031 environmental responsibility (SER) specialists’ direct engagement with factories and our third- in fees returned to workers party audits, we work with supplier management and workers to identify and resolve potential issues around fees. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 116 FY22 ESG REPORT
BETTERING THE LIVES OF PEOPLE IN OUR SUPPLY CHAIN CASE STUDY Audits reinforce responsible recruitment Upholding and advancing respect for the fundamental human rights of all people is a priority for Dell. The Responsible Business Alliance (RBA) Code of Conduct does not allow suppliers to charge recruitment fees to their workers, even if allowed by local law. Dell partners with our suppliers to make sure they comply with the RBA Code of Conduct. If we find that recruitment fees are being charged, we expect that suppliers will reimburse the fee payment within 30 days and validate this through an RBA closure audit within 90 days. In FY22, we found that workers at a small connector supplier in Taiwan were required to pay recruitment fees during the onboarding process. To address these findings, our SER specialists partnered with the supplier to revise their recruitment policy and onboarding processes and enhance their internal audit checklist to avoid similar findings in the future. In addition, we ensured impacted workers were reimbursed $325,797 in fees paid. By addressing fee payment issues when they occur in our supply chain and reinforcing responsible employment and recruitment practices, we continue to drive improvement in this area. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 117
BETTERING THE LIVES OF PEOPLE IN OUR SUPPLY CHAIN Taking action to address weekly Consistently meeting this standard is an ongoing working hours challenges challenge across manufacturing and is affected by a number of factors, including but not limited Dell adheres to the social and environmental to fluctuations in customer demand, workers’ standards required through the Responsible earning potential, transportation issues and Business Alliance (RBA) Code of Conduct. The unexpected issues, such as the pandemic and RBA Code of Conduct limits factory line workers recent global supply chain issues. to a maximum of 60 working hours per week In FY22, individuals and organizations around the or the limit stipulated by local law (whichever world continued to face numerous uncertainties is stricter) and requires that employees and and disruptions; our suppliers were no exception. contractors have one rest day per week. For example, COVID-19 travel restrictions made Breaches of working hours limits are the most it more difficult for suppliers to meet labor common audit findings among supplier factories requirements for production demand. Weekly working hours compliance, FY22 53 in our industry. Although overtime is voluntary, As a result, we continued to see a decline in excessive working hours impact work-life balance, suppliers meeting the standard for weekly and in some cases, increase health and safety working hours. In FY22, our tracking covered risks. As such, this is an important area of focus 214,919 workers at 119 supplier factories. The vast 214,919 86.6% for us, and we are committed to working with our majority of these workers — nearly 86.6% — employees of workers met the suppliers to improve overall compliance with the worked 60 hours per week or less, compared with 60-hours-or-less-per-week industry standard. 91.0% in 2019 and 89.0% in 2020. Additionally, workers were monitored at 119 standard Our strategy with suppliers includes the just over 79.0% of these workers took at least supplier factories following actions: one rest day per week in FY22. • Weekly monitoring of factories with known Days of rest compliance, FY22 risks of nonconformance based on past audit performance. This provides an early indicator of potential deviation from the standard. • Collaboration to address identified risks 79% of nonconformance and provide support in of workers monitored took at least one rest day per week balancing orders based on supplier labor capacity. • Capability building to provide suppliers with knowledge and tools to improve working hours performance through management systems. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 118 FY22 ESG REPORT
BETTERING THE LIVES OF PEOPLE IN OUR SUPPLY CHAIN CASE STUDY Improved communication sales, production and human resources (HR) process creates shared teams to avoid the overtime issues. commitment and progress for From their discussions with the supplier, our weekly working hours SER specialists determined that prediction and planning based on the standard of 60 hours Managing weekly working hours is a persistent per week was not in place. They helped the challenge for suppliers and was made more factory establish a system to accurately plan difficult by the ongoing impacts of the pandemic. human resources and arrange a reasonable Not only were labor shortages an issue, but many production plan and rhythm using the factories were also under pressure to produce a 60-working-hours-per-week standard. This higher product volume to meet higher demand. system enabled the effective management and In addition, factories increased their reliance on implementation of control standards for working external labor agencies to quickly secure the labor hours at the operational level. they needed to maintain production levels. Now when the sales team receives client orders, An audit of one of Dell’s display suppliers they check with production to confirm capacity indicated a priority finding regarding weekly before committing to order timing. Thanks to working hour requirements. Dell’s social and this communication, sales can schedule a client environmental responsibility (SER) specialists delivery date that is based on capacity and immediately began work with the supplier to upholds reasonable working hours. Likewise, address issues impacting weekly working hours when production receives sales forecast data, and drive improvement. they immediately inform HR about labor needs so HR can recruit the necessary talent to meet First, our SER specialists worked with the supplier production demands. to raise the issue to senior management and gain This improved communication process not their commitment to address the issue. Next, only addressed the issue but also created a SER specialists identified that a key issue was shared responsibility and commitment to limit communication within the supplier organization. overtime hours. As a result, the supplier’s audit Sales teams were agreeing to product delivery finding was downgraded from priority to major. dates without understanding production The December 2020 audit showed that 68.0% constraints or labor limitations. Our specialists of workers exceeded the 60 hours per week worked with the supplier to help them establish standard; the November 2021 closure audit a better communication process between their showed this decreased to 13.0%. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 119
BETTERING THE LIVES OF PEOPLE IN OUR SUPPLY CHAIN Helping ensure safe use of the industry to identify priority chemicals that chemicals could pose a high risk of harmful impacts. Our ongoing involvement with CEPN includes active Our work with suppliers to improve health participation in the Worker Engagement and and safety in the workplace includes taking Process Chemical Reporting workgroups. These action on the use of process chemicals. We are efforts helped drive the development of the reducing exposure to potentially harmful process Toward Zero Exposure program, of which Dell chemicals through our Chemical Use Policy. We is a signatory. have also developed Guidelines for Management The Toward Zero Exposure program: of Manufacturing Process Chemicals to help suppliers implement best practices for managing • Creates a road map for process chemical chemicals that pose risks for the environment management informed by suppliers, or health. In addition, we survey key suppliers nongovernmental organizations and subject to understand and monitor chemical use in our matter experts. supply chain. For example, in FY22, we asked • Supports companies in assessing use of process our suppliers about their understanding of our chemicals, strengthening the culture of worker policy. Through further engagement regarding safety and engagement, reducing worker the survey results, we discovered two sites exposure to identified priority chemicals, and were each using one banned chemical in a substituting them with safer alternatives. support area outside of the primary production • Measures and reports outcomes, expands area. While each site followed the hierarchy the impact and reaches into deeper supply of controls and provided appropriate personal chain tiers. protective equipment, we engaged their chemical management staff to offer safer alternatives, which are currently being assessed. Dell also collaborates with the Clean Electronics Production Network (CEPN) to further industry efforts to protect people in our supply chain from potentially harmful process chemicals. CEPN brings together stakeholders from across INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 120 FY22 ESG REPORT
BETTERING THE LIVES OF PEOPLE IN OUR SUPPLY CHAIN Delivering health, safety and • Health and safety: Safety training; guidelines employee rights knowledge on the use of process chemicals; how to use Mobile phone training, FY22 personal protective equipment; the importance through mobile phones of daily machine safety checks; and fire and emergency procedures. Digital learning through mobile phones enables • Personal development (optional for workers): many of the people working in our supply chain Financial literacy, career development and to have consistent access to important training. communication skills. This continues to be a valuable tool in how we work with suppliers to help ensure their workers • COVID-19 prevention: Dell continued to offer receive training on areas such as health and workplace safety modules designed to address safety protocols and awareness of labor rights. ongoing challenges of the pandemic. 49,796 Mobile phone learning is a collaborative initiative Mobile phone learning opportunities increase training hours between Dell and our suppliers. We cover the knowledge and skills and improve safety. In completed through mobile phone costs of developing the training modules; our addition, workers are empowered by ensuring training courses suppliers make them available to their workers their understanding of their rights and the and cover the cost of Wi-Fi to ensure internet availability of grievance mechanisms to help access. All frontline workers, including direct, identify areas of nonconformance with standards temporary, student and migrant, are eligible and in their factories. encouraged to participate. 100 101,876 Ongoing training topics include: factories workers • Labor rights: Policies banning recruitment participated in completed mobile fees; contract requirements; pay structures; mobile phone phone training rules around voluntary overtime; requirements training courses courses for factories to pay social insurance benefits; rights to paid leave and holidays; grievance mechanisms; and right to resign from work. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 121 FY22 ESG REPORT
BETTERING THE LIVES OF PEOPLE IN OUR SUPPLY CHAIN Driving engagement through In addition, workers who participate in audit open communication interviews are provided with information cards that include the helpline number and details as an The people in our supply chain are in a unique alternative way to provide anonymous feedback. position to provide insight on day-to-day factory Any allegations received through the helpline operations. This feedback is critical in helping us are investigated immediately and thoroughly validate supplier compliance with the Responsible by Dell. Methods to research allegations Business Alliance (RBA) Code of Conduct and include unannounced visits by our social and build greater context around issues and how they environmental responsibility (SER) specialists are being addressed. and/or third-party auditors. Depending on the Dell maintains a free phone helpline to ensure the nature of any findings, SER specialists will work people in our supply chain, as well as individuals with suppliers to develop corrective action plans and organizations representing them have a to address areas of nonconformance. In cases of reliable, confidential communications channel severe (priority and/or major) findings, suppliers through which to share concerns or suggestions. may be required to complete a third-party closure audit to resolve the issue. A third-party, nongovernmental organization with expertise in worker feedback channels manages the helpline on our behalf. Available 24 hours a day, seven days a week, supplier employees and contractors can access the helpline outside the workplace, reinforcing the confidentiality of their feedback. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 122
BETTERING THE LIVES OF PEOPLE IN OUR SUPPLY CHAIN CASE STUDY Helpline supports enforcement We also worked with the supplier to identify if and education any other female workers were experiencing similar issues. Dell addressed the situation by Dell is committed to acting on concerns raised providing the supplier with education and training in our supply chain. Last year, we received a materials about pregnant and nursing employee complaint via the helpline from an employee rights. We also asked the site to revise their of one of our suppliers in China. The caller policy and processes to implement protections expressed concern that her request for a transfer for female workers. to a different role was denied. The employee In addition to updating the policy and processes, noted that her transfer request was due to we collaborated with the supplier to create her pregnancy status and the desire for a less a checklist related to female worker rights. strenuous role. Using this checklist, the human resources team China has clear requirements regarding how can identify whether similar issues arise and employers treat pregnant and nursing workers, is empowered to act quickly to protect the including bans on pregnancy-based discrimination workplace rights of pregnant and in employment. These regulations stipulate that if nursing workers. a pregnant worker informs her employer that she As a result of the education and assistance our is not able to perform her usual job, those duties specialists provided, the pregnant employee’s must be modified. transfer request was approved, and she moved to Upon learning of this employee’s concern, a less physically demanding role. Dell’s social and environmental responsibility (SER) specialists began work with the supplier to address the health, safety and legal issues in this situation. As a first step, our specialists informed the supplier about Chinese pregnancy, confinement and nursing period laws. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 123
BETTERING THE LIVES OF PEOPLE IN OUR SUPPLY CHAIN Responsible sourcing of Emphasis is placed on the identification and minerals in our supply chain assurance of smelters or refiners (SORs) used to process material supplied by mines or mineral Minerals are used in many Dell products. For agents. This includes an independent, third- example, gold is used in circuit boards, and party assessment of management systems and tantalum is used in capacitors. Some of these sourcing practices to validate conformance with minerals are mined in conflict-affected and high- the Responsible Minerals Assurance Process risk areas. While we do not purchase minerals (RMAP). The sector-wide RMAP standards directly from mines, smelters or refiners, our meet the requirements of the OECD Due expectations for responsible sourcing extend Diligence Guidance, the Regulation (EU) 2017/821 throughout our supply chain. of the European Parliament and the U.S. Dodd- Frank Wall Street Reform and Consumer It is our goal to avoid purchasing materials Protection Act. Dell annually files a Conflict containing minerals whose mining and sale Minerals Disclosure report with the U.S. Securities are not aligned with our responsible sourcing and Exchange Commission. commitments. These commitments are To track conformance rates, we require suppliers underscored in the Dell Responsible Sourcing who use 3TG and/or cobalt within their supply Policy. We also work in coordination with chain to complete the Conflict Minerals Reporting industry-wide groups such as the Responsible Template or the Cobalt Reporting Template to Minerals Initiative (RMI) to promote a common report on SORs within their own supply chains. approach, tools and processes that support sourcing decisions that drive improved regulatory Given the many supply chain tiers involved and compliance. the size of smelting and refining operations, Our responsible sourcing efforts focus on key multiple suppliers will likely include some of the “conflict minerals” (tin, tungsten, tantalum same SORs in their reporting. We collaborate with and gold — known as 3TG) and follow the suppliers to develop their own capabilities and recommendations established by the Organisation help them to remediate issues with SORs for Economic Co-operation and Development Due that are not participating in any third-party Diligence Guidance (OECD). These include risk assurance program to achieve conformance or assessment, assurance and transparent reporting. remove them from their supply chains. More We also track other minerals of concern, including information is available in our Conflict Minerals cobalt, which is used in lithium-ion batteries. Disclosure report. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 124
Reducing our supply chain’s impact on the planet Dell is committed to protecting our planet and collaborating with stakeholders to address the impacts of climate change. We drive sustainability efforts through every aspect of our business and hold our suppliers to the same level of accountability. Despite the ongoing challenges of the pandemic, we maintained our supply chain environmental programs and continued to see progress in the areas of greenhouse gas (GHG) emissions reduction, water stewardship and waste management through partnership with our suppliers. To underscore the positive impact of our supply chain environmental practices, the Institute of Public & Environmental Affairs (IPE) in China ranked Dell as a Green Supply Chain Corporate Information Transparency Index (CITI) Master for 2020 and 2021. We are one of only two companies to earn this recognition. To qualify as a CITI Master, a company must: • Rank as a top performance brand in the annual CITI ranking. • Maintain high performance standards in their supply chain environmental management.54 • Show that all key suppliers track their environmental performance through data systems. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 125 FY22 ESG REPORT
REDUCING OUR SUPPLY CHAIN’S IMPACT ON THE PLANET Reducing greenhouse gas We continue to work with Dell teams around (GHG) emissions in our supply the globe to identify renewable energy options Greenhouse gas emissions Amount of renewable energy used in areas where such sources are limited. As reductions, FY22 in Dell Technologies’ supply chain chain expected, this is proving to be a key challenge for our suppliers. Our carbon footprint includes emissions that our suppliers generate as they provide products or Although there is still much to be done, we are services to us. As part of our goal to achieve net proud of the recognition we have received over zero emissions by 2050, we are partnering with the past year for progress we are making through our direct suppliers to reduce GHG emissions collaboration with our suppliers: 55 by 60% per unit revenue by 2030. This target • CDP Supplier Engagement Leader: Our efforts meets the Science Based Targets initiative (SBTi) to cascade climate action across our supply 305,898 metric tons 2,383,210,656 criteria for ambitious value chain goals, meaning chain helped Dell earn this ranking. kilowatt-hours our near–term emissions reductions target is in of carbon dioxide equivalent of greenhouse line with current best practices. This goal is part • Climate Action Transparency Index (CATI): gas emissions were avoided through of Dell’s recently released strategy to achieve net Ranked No. 1 out of 662 companies across energy consumption reduction projects at zero GHG emissions by 2050. Our progress is all industries and 48 information technology supplier factories detailed on page 49 of this report. companies. Developed by IPE in 2021, this assessment focuses on brands’ performance To achieve this goal, we are building on work we on corporate and value chain-level climate started in 2017 to help suppliers reduce energy action performance. consumption, improve energy efficiency and source cleaner energy. Our supplier engagement “Dell Technologies is working with suppliers to reduce GHG strategy includes working with suppliers to set ambitious science-based targets. We collaborate emissions in a way that aims to drive positive climate with energy experts to evaluate our suppliers’ action throughout its supply chain. We are pleased to data disclosed through the CDP and analyze direct feedback from internal surveys and on-site recognize Dell at the top of our inaugural CATI ranking.” visits to develop training, consult on opportunities for improvement and share best practices. In MA JUN FY22, we partnered with four key suppliers to FOUNDER AND DIRECTOR, INSTITUTE OF PUBLIC & ENVIRONMENTAL AFFAIRS help them identify factory energy usage, learn about renewable energy options and leverage industry tools for the development of science- based targets. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 126 FY22 ESG REPORT
REDUCING OUR SUPPLY CHAIN’S IMPACT ON THE PLANET CASE STUDY Collaboration drives energy Our SER specialists consulted directly with efficiency one supplier at a time the supplier to understand the current energy usage at factory sites and made Not every supplier has experience in sustainability. recommendations for improvement. Dell’s energy- That’s why Dell’s social and environmental saving suggestions included: responsibility (SER) specialists collaborate with • Installing a heat recovery system for our suppliers and industry organizations to air compressors. drive environmental improvements. These are • Increasing cooling tower efficiency by replacing long-term engagements focused on achieving heat exchange filters. sustainable results. In 2018, one of our printed circuit board (PCB) • Updating workshop exposure machine lighting to LED and LED illuminant replacements. suppliers joined Dell’s supply chain energy These energy-saving efforts have paid off for efficiency program. Energy management was new the supplier and for the environment. In FY22, to this supplier. They did not have experience in the supplier reported a 15.0% overall reduction in developing an energy management system that energy usage since we began our engagement would serve as the foundation for key activities, with them. In addition, the supplier’s factories such as setting GHG emissions reduction targets received their ISO 50001 certification, which is and gaining alignment with internal stakeholders specifically targeted to support the development to meet those targets. of energy management systems. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 127 FY22 ESG REPORT
REDUCING OUR SUPPLY CHAIN’S IMPACT ON THE PLANET Working with stakeholders to In FY22, 207 of our supplier factories Freshwater saved in FY22 support water stewardship implemented water management plans. Through this work, these suppliers saved 40.9 million cubic Water stewardship — the responsible planning meters of fresh water and reduced the amount 40.9 and management of resources56 — is vital to of wastewater they discharged by 37.1 million million meters3 a sustainable future. In addition to water use cubic meters. considerations around the manufacturing of our In addition to considering our own supply chain’s products, a number of our suppliers operate in water use, we recognize the importance of areas of water stress. understanding shared risk and engaging with Dell partners with suppliers in China who have stakeholders across the full catchment area. Water discharge reduced water-intensive processes or operate factories Reflective of this, factory water risk mitigation located in water-stressed areas where at least plans include engagement with stakeholders, such 20% of renewable surface and groundwater is as municipal water providers, local community 37.1m withdrawn annually and is insufficient to meet members and wastewater treatment plants. 40 - 57 a region’s needs. For the past seven years, 3s we have worked closely with these suppliers er 30 - to analyze their water use, offer training, and t develop and implement water management plans to achieve reductions in water use and 20 - wastewater discharge. million me 10 - FY22 INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 128
REDUCING OUR SUPPLY CHAIN’S IMPACT ON THE PLANET Addressing waste In addition to our Zero Waste Program, we expect our suppliers to align with our expectations Sustainable management of resources is critical for transparency about their environmental to the long-term resiliency of our business and impacts by publishing sustainability reports in the overall health of the environment. As part accordance with the Global Reporting Initiative of our efforts in this area, we collaborate with (GRI). Last year, 95.9% of our direct material suppliers to identify alternatives to reduce or suppliers (by spend) reported sustainability reuse waste that would otherwise be sent to initiatives in accordance with GRI standards. landfills. In FY22, Dell helped 21 suppliers in Based on this information, 67.6% of Dell’s direct China reduce the amount of waste disposed material suppliers (by spend) reported progress in of in landfills through our Zero Waste Program. reducing waste from their operations. These supplier sites were chosen to support this program as key strategic partners to Dell. As part of the Zero Waste Program, our social and environmental responsibility specialists provide expertise to help suppliers ensure safe disposal practices and reduce waste. Beyond following disposal standards for solid and hazardous waste, we help suppliers implement solutions that include reuse, recycling, composting, anaerobic digestion and incineration. Suppliers participating in these efforts diverted 93.1% of their solid waste from landfills, either through recycling or reuse, in FY22. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 129
REDUCING OUR SUPPLY CHAIN’S IMPACT ON THE PLANET Driving supplier diversity it is only one of the ways we work to drive • Disability-owned and certified by Disability:IN. beyond spend meaningful impact and inclusion. We continually • Veteran-owned and certified by the National look for strategic opportunities within our supply Veteran Business Development Council. As part of our commitment to responsible chain to promote diversity and inclusion beyond ◦ Qualified under the U.S. Small Business business practices, Dell looks for opportunities to spend. A foundational element of our diversity Administration: Small disadvantaged drive diversity within our supply chain. We have initiatives includes supporting skill development businesses. well-established initiatives to identify and support for diverse suppliers. qualified businesses that are owned by individuals Dell offers two opportunities for diverse suppliers ◦ Historically Underutilized Business Zone of diverse backgrounds to deliver products that to build their business competencies: our program. meet the needs of our global customer base. Supplier Diversity Development Program and ◦ Women-owned businesses. One key measurement of our success is how our Women in Technology Program. Expanded ◦ Veteran-owned businesses. much we spend with diverse suppliers. In FY22, capabilities enable suppliers participating in these ◦ Service-disabled veteran-owned businesses. 58 programs to improve operational performance, Dell spent more than $3 billion with diverse and which may position them to pursue new growth • International women-owned businesses small businesses. And for the 12th consecutive opportunities. The Supplier Diversity Development certified by WEConnect International. year, Dell also earned recognition through the Program focuses on refining skill sets for our • Chinese minority-owned businesses Billion Dollar Roundtable (BDR). BDR recognizes diverse suppliers at multiple levels of maturity. verified through Minority Supplier Development and celebrates corporations that spend at least The goal is to help drive overall operational in China. $1 billion annually with minority- and women- effectiveness and better position them for owned businesses. success with Dell and other large corporations. In addition, we prioritize sourcing from suppliers In addition, we continually look for opportunities that demonstrate a strong commitment to to give equal access to and promote small and supplier diversity within their own organizations. diverse businesses that are: To drive accountability in our supply chain, we monitor the amount our key suppliers spend • Women-owned and enterprises certified by the with diverse suppliers themselves. Last year, our Women’s Business Enterprise National Council. 59 suppliers spent more than $921 million with • Minority-owned and enterprises certified by the diverse companies. National Minority Supplier Development Council. Spend is an important indicator of our • LGBTQIA+-owned and certified by the National engagement with our diverse suppliers. However, LGBT Chamber of Commerce. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 130 FY22 ESG REPORT
REDUCING OUR SUPPLY CHAIN’S IMPACT ON THE PLANET CASE STUDY Supplier diversity program Our work with this supplier helped Dell expand supports capability building for the capabilities of our IT infrastructure analysis software tool by implementing Rapid Discovery. women-owned businesses This new feature helps Dell’s internal engineering team and external customers rapidly scan We recognize that resiliency in our supply chain network environments and discover devices depends on engaging with and supporting quickly and efficiently. Thanks to implementing diverse suppliers. One way Dell achieves this is this approach, our engineering teams can make by supporting women-owned businesses and better selling and purchasing decisions. enterprises certified by the Women’s Business Enterprise National Council (WBENC). “The Women in Tech program, the resources, learning and networking, caused a shift in how In partnership with WBENC, Dell created the we think about scaling and strategy,” according to Supplier Diversity Women in Tech (WiT) program the supplier’s CEO. “We have expanded our list of to bring together women-owned suppliers in the clients, including large corporations like Dell, and tech sector. These businesses are all certified have experienced significant growth, resulting through WBENC and represent various aspects in being featured for the last four years on the of technology, including cybersecurity, software, Inc. 5000 list of the fastest-growing private Internet of Things and IT manufacturing. companies in the U.S.” In 2021, a WiT member organization responded As well as gaining valuable business and to a Dell request for proposal (RFP). The educational opportunities, this supplier said company is a Florida-based Agile software they value the opportunity to become part development and cloud services firm with a of a supportive community of women tech nearshore development hub in Colombia. Their entrepreneurs. They also appreciated the Dell specialty is in helping clients use the latest web, team members, “who are there for us every step mobile, cloud, AI and data technologies. Based on of the way.” how this company delivers enterprise scale digital capabilities, they became the obvious supplier Based on the success of the first project, Dell is choice for the project. planning to partner with this supplier on a second project in FY23. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 131
SUPPLY CHAIN SUSTAINABILITY Supply chain — audit results INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 132
SUPPLY CHAIN — AUDIT RESULTS Key Results are based on audits of 317 P Priority Findings factories. When an issue is identified, we Labor and human rights work with the factory to correct it. M Major Findings At the end of FY22, 90% of priority 60 and 69% of priority and major findings Percentage of audited factories in compliance, with breakdown of major and priority findings of noncompliance according to supply chain tier (cumulatively) had been closed. 100100100100100100100 100%100%100%100%100%100%100% 99%99%99%99%99%99%99% 99%99%99%99%99%99%99% 99%99%99%99%99%99%99% 100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2000000022222220000000 100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2000000022222220000000 99% in 299% in 299% in 299% in 299% in 299% in 299% in 2000000022222220000000 99% in 299% in 299% in 299% in 299% in 299% in 299% in 2000000022222220000000 92%92%92%92%92%92%92% 22222222222222 88% in 288% in 288% in 288% in 288% in 288% in 288% in 2000000022222220000000 85%85%85%85%85%85%85% 77777778% in 28% in 28% in 28% in 28% in 28% in 28% in 2000000022222220000000 00 Dell & FinalDell & FinalDell & FinalDell & FinalDell & FinalDell & FinalDell & Final 0000000 0000000 00000 1111111 0000000 0000000 1111111 1111111 0000000 3333333 0000000 2222222 1111111 11111111111111 AssemblyAssemblyAssemblyAssemblyAssemblyAssemblyAssembly acilities in compliance in FYacilities in compliance in FYacilities in compliance in FYacilities in compliance in FYacilities in compliance in FYacilities in compliance in FYacilities in compliance in FY f ff ff ff ff ff ff f Direct 0000000 1111111 111111 1111111 DirDirDirDirDirDirectectectectectect al % oal % oal % oal % oal % oal % oal % o 0000000 0000000 1111111 2222222 1 1111111 14141414141414 0000000 17171717171717 3333333 104104104104104104104 TTTTTTTooooooottttttt ******* 15%15%15%15%15%15%15% Sub-tier 22 Sub-Sub-Sub-Sub-Sub-Sub-tiertiertiertiertiertier 0000000 1111111 0000000 22222 0000000 0000000 0000000 8888888 28 0000000 0000000 0000000 282828282828 11111111111111 154154154154154154154 0000000 MMM * PPP MMMMMMM PPPPPPP MMMM MM PPPP PP MMMMMMM PPPPPPP MMMMM PPPPPPP MMMMMMM PPPPPPP MMMMMMM PPPPPPP MMMMMMM PPPPP 13% in 2020 Humane Humane Humane Humane Humane Humane Humane FrFrFrFrFrFrFreedom oeedom oeedom oeedom oeedom oeedom oeedom of f f f f f f YYYYYYYoung woung woung woung woung woung woung workorkorkorkorkorkorker er er er er er er ondiscriminaondiscriminaondiscriminaondiscriminaondiscriminaondiscriminaondiscriminationtiontiontiontiontiontion FrFrFrFrFrFrFreely chosen eely chosen eely chosen eely chosen eely chosen eely chosen eely chosen WWWWWWWages and beneages and beneages and beneages and beneages and beneages and beneages and benefififififififitststststststs WWWWWWWorking hourorking hourorking hourorking hourorking hourorking hourorking hours s s s s s s trtrtrtrtrtrtreaeaeaeaeaeaeatmentmentmentmentmentmentmenttttttt associaassociaassociaassociaassociaassociaassociationtiontiontiontiontiontion prprprprprprproooooootttttttececececececectionstionstionstionstionstionstions emploemploemploemploemploemploemploymenymenymenymenymenymenyment t t t t t t and rand rand rand rand rand rand rest daest daest daest daest daest daest daysysysysysysys * In previous years, Dell reported supply chain metrics on an annual basis. Going forward these will be reported on a fiscal year basis, unless otherwise noted. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX DELL TECHNOLOGIES 133 FY22 ESG REPORT
SUPPLY CHAIN — AUDIT RESULTS Key Results are based on audits of 317 P Priority Findings factories. When an issue is identified, we Employee health and safety work with the factory to correct it. M Major Findings At the end of FY22, 90% of priority 61 and 69% of priority and major findings Percentage of audited factories in compliance, with breakdown of major and priority findings of noncompliance according to supply chain tier (cumulatively) had been closed. 100%100%100%100%100%100%100%100% 100%100%100%100%100%100%100%100% 95%95%95%95%95%95%95%95% 95%95%95%95%95%95%95%95% 95%95%95%95%95%95%95%95% 100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2000000002222222200000000 100% in 100% in 100% in 100% in 100% in 100% in 100% in 100% in 20202020202020202020202020202020 91%91%91%91%91%91%91%91% 95% in 95% in 95% in 95% in 95% in 95% in 95% in 95% in 20202020202020202020202020202020 95% in 295% in 295% in 295% in 295% in 295% in 295% in 295% in 2000000002222222200000000 89% in 89% in 89% in 89% in 89% in 89% in 89% in 89% in 20202020202020202020202020202020 88% in 88% in 88% in 88% in 88% in 88% in 88% in 88% in 20202020202020202020202020202020 84%84%84%84%84%84%84%84% 80%80%80%80%80%80%80%80% 777777776% in 6% in 6% in 6% in 6% in 6% in 6% in 6% in 20202020202020202020202020202020 777777776% in 6% in 6% in 6% in 6% in 6% in 6% in 6% in 20202020202020202020202020202020 00000000 00000000 00000000 00000000 00000000 11111111 00000000 11111111 00000000 00000000 00000000 22222222 00000000 33333333 00000000 11111111 Dell & FinalDell & FinalDell & FinalDell & FinalDell & FinalDell & FinalDell & FinalDell & Final AssemblyAssemblyAssemblyAssemblyAssemblyAssemblyAssemblyAssembly acilities in compliance in Facilities in compliance in Facilities in compliance in Facilities in compliance in Facilities in compliance in Facilities in compliance in Facilities in compliance in Facilities in compliance in F f ff ff ff ff ff ff ff f Direct 00000000 11111111 00000000 00000000 00000000 11111111 00000000 55555555 00000000 66666666 00000000 77777777 00000000 1818181818181818 33333333 2121212121212121 DirDirDirDirDirDirDirectectectectectectect al oal oal oal oal oal oal oal o ooooooootttttttt Sub-tier 00000000 00000000 1919191919191919 33333333 Sub-Sub-Sub-Sub-Sub-Sub-Sub-tiertiertiertiertiertiertier 00000000 11111111 00000000 1313131313131313 11111111 99999999 00000000 1111111111111111 00000000 00000000 3131313131313131 44444444 77777777 PP MMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPP M PPPPPPPP MMMMMMMM Health and saHealth and saHealth and saHealth and saHealth and saHealth and saHealth and saHealth and saffffffffeeeeeeeety ty ty ty ty ty ty ty PhPhPhPhPhPhPhPhysically ysically ysically ysically ysically ysically ysically ysically Machine Machine Machine Machine Machine Machine Machine Machine FFFFFFFFood,ood,ood,ood,ood,ood,ood,ood, sanit sanit sanit sanit sanit sanit sanit sanitaaaaaaaation tion tion tion tion tion tion tion OccupaOccupaOccupaOccupaOccupaOccupaOccupaOccupational injury tional injury tional injury tional injury tional injury tional injury tional injury tional injury Industrial Industrial Industrial Industrial Industrial Industrial Industrial Industrial OccupaOccupaOccupaOccupaOccupaOccupaOccupaOccupationaltionaltionaltionaltionaltionaltionaltional EmerEmerEmerEmerEmerEmerEmerEmergencgencgencgencgencgencgencgency y y y y y y y communicacommunicacommunicacommunicacommunicacommunicacommunicacommunicationtiontiontiontiontiontiontion demanding wdemanding wdemanding wdemanding wdemanding wdemanding wdemanding wdemanding workorkorkorkorkorkorkork sasasasasasasasaffffffffeguareguareguareguareguareguareguareguardingdingdingdingdingdingdingding and housingand housingand housingand housingand housingand housingand housingand housing and illness prand illness prand illness prand illness prand illness prand illness prand illness prand illness preeeeeeeevvvvvvvvenenenenenenenentiontiontiontiontiontiontiontion hhhhhhhhyyyyyyyygienegienegienegienegienegienegienegiene ssssssssafafafafafafafafetetetetetetetetyyyyyyyy prprprprprprprprepareparepareparepareparepareparednessednessednessednessednessednessednessedness * In previous years, Dell reported supply chain metrics on an annual basis. Going forward these will be reported on a fiscal year basis, unless otherwise noted. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 134
SUPPLY CHAIN — AUDIT RESULTS Key Results are based on audits of 317 P Priority Findings factories. When an issue is identified, we Environment work with the factory to correct it. M Major Findings At the end of FY22, 90% of priority 62 and 69% of priority and major findings Percentage of audited factories in compliance, with breakdown of major and priority findings of noncompliance according to supply chain tier (cumulatively) had been closed. 100100100100100100100100 100%100%100%100%100%100%100%100% 100%100%100%100%100%100%100%100% 100%100%100%100%100%100%100%100% 99%99%99%99%99%99%99%99% 9797979797979797%%%%%%%% 96%96%96%96%96%96%96%96% 95%95%95%95%95%95%95%95% 100100100100100100100100% in % in % in % in % in % in % in % in 20202020202020202020202020202020 100% in 100% in 100% in 100% in 100% in 100% in 100% in 100% in 20202020202020202020202020202020 100% in 100% in 100% in 100% in 100% in 100% in 100% in 100% in 20202020202020202020202020202020 98% in 298% in 298% in 298% in 298% in 298% in 298% in 298% in 2000000002222222200000000 999999997% in 27% in 27% in 27% in 27% in 27% in 27% in 27% in 2000000002222222200000000 93%93%93%93%93%93%93%93% 999999992% in 2% in 2% in 2% in 2% in 2% in 2% in 2% in 20202020202020202020202020202020 94% in 94% in 94% in 94% in 94% in 94% in 94% in 94% in 20202020202020202020202020202020 88% in 288% in 288% in 288% in 288% in 288% in 288% in 288% in 2000000002222222200000000 00000000 1 Dell & FinalDell & FinalDell & FinalDell & FinalDell & FinalDell & FinalDell & FinalDell & Final 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 1111111 00000000 22222222 00000000 11111111 00000000 11111111 AssemblyAssemblyAssemblyAssemblyAssemblyAssemblyAssemblyAssembly acilities in compliance in acilities in compliance in acilities in compliance in acilities in compliance in acilities in compliance in acilities in compliance in acilities in compliance in acilities in compliance in Direct 00000000 00000000 00000000 00000000 00000000 00000000 00000000 11111111 00000000 44444444 00000000 44444444 00000000 66666666 00000000 55555555 DirDirDirDirDirDirDirectectectectectectect al oal oal oal oal oal oal oal o ooooooootttttttt Sub-tier 00000000 000 33333333 00000000 33333333 Sub-Sub-Sub-Sub-Sub-Sub-Sub-tiertiertiertiertiertiertier 00000000 00000 000000 88888888 00000000 00000000 00000000 00000000 00 00000000 99999999 00000000 1515151515151515 00000000 PP MMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPP M PPPPPPPP MMMMMMMM Solid wSolid wSolid wSolid wSolid wSolid wSolid wSolid wastastastastastastastasteeeeeeee PPPPPPPPollution prollution prollution prollution prollution prollution prollution prollution preeeeeeeevvvvvvvvenenenenenenenention tion tion tion tion tion tion tion MaMaMaMaMaMaMaMatttttttterials erials erials erials erials erials erials erials WWWWWWWWaaaaaaaatttttttter er er er er er er er EnerEnerEnerEnerEnerEnerEnerEnergy consumpgy consumpgy consumpgy consumpgy consumpgy consumpgy consumpgy consumption tion tion tion tion tion tion tion HazarHazarHazarHazarHazarHazarHazarHazardous dous dous dous dous dous dous dous Air Air Air Air Air Air Air Air EnEnEnEnEnEnEnEnvirvirvirvirvirvirvirvironmenonmenonmenonmenonmenonmenonmenonmenttttttttal permital permital permital permital permital permital permital permits s s s s s s s and rand rand rand rand rand rand rand resouresouresouresouresouresouresouresource rce rce rce rce rce rce rce reduceduceduceduceduceduceduceductiontiontiontiontiontiontiontion rrrrrrrrestricestricestricestricestricestricestricestrictionstionstionstionstionstionstionstions managemenmanagemenmanagemenmanagemenmanagemenmanagemenmanagemenmanagementttttttt and grand grand grand grand grand grand grand greenhouse eenhouse eenhouse eenhouse eenhouse eenhouse eenhouse eenhouse substsubstsubstsubstsubstsubstsubstsubstancesancesancesancesancesancesancesances emissionsemissionsemissionsemissionsemissionsemissionsemissionsemissions and rand rand rand rand rand rand rand reportingeportingeportingeportingeportingeportingeportingeporting gas emissionsgas emissionsgas emissionsgas emissionsgas emissionsgas emissionsgas emissionsgas emissions * In previous years, Dell reported supply chain metrics on an annual basis. Going forward these will be reported on a fiscal year basis, unless otherwise noted. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 135
SUPPLY CHAIN — AUDIT RESULTS Key Results are based on audits of 317 P Priority Findings factories. When an issue is identified, we work with the factory to correct it. Ethics M Major Findings At the end of FY22, 90% of priority 63 and 69% of priority and major findings Percentage of audited factories in compliance, with breakdown of major and priority findings of noncompliance according to supply chain tier (cumulatively) had been closed. 100100100100100100100100 100%100%100%100%100%100%100%100% 100%100%100%100%100%100%100%100% 100%100%100%100%100%100%100%100% 100%100%100%100%100%100%100%100% 100%100%100%100%100%100%100%100% 100%100%100%100%100%100%100%100% 100%100%100%100%100%100%100%100% 99%99%99%99%99%99%99%99% 100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2000000002222222200000000 100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2000000002222222200000000 100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2000000002222222200000000 100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2000000002222222200000000 100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2000000002222222200000000 100100100100100100100100% in 2% in 2% in 2% in 2% in 2% in 2% in 2% in 2000000002222222200000000 100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2000000002222222200000000 100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2000000002222222200000000 2222222222222222 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 Dell & FinalDell & FinalDell & FinalDell & FinalDell & FinalDell & FinalDell & FinalDell & Final AssemblyAssemblyAssemblyAssemblyAssemblyAssemblyAssemblyAssembly acilities in compliance in FYacilities in compliance in FYacilities in compliance in FYacilities in compliance in FYacilities in compliance in FYacilities in compliance in FYacilities in compliance in FYacilities in compliance in FY f ff ff ff ff ff ff ff f Direct 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 DirDirDirDirDirDirDirectectectectectectect al % oal % oal % oal % oal % oal % oal % oal % o TTTTTTTTooooooootttttttt Sub-tier 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 33333333 Sub-Sub-Sub-Sub-Sub-Sub-Sub-tiertiertiertiertiertiertier 00000000 PP MMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPP M PPPPPPPP MMMMMMMM PrPrPrPrPrPrPrProooooooottttttttecececececececection otion otion otion otion otion otion otion of idenf idenf idenf idenf idenf idenf idenf identity tity tity tity tity tity tity tity InInInInInInInInttttttttellecellecellecellecellecellecellecellectualtualtualtualtualtualtualtual FFFFFFFFair businessair businessair businessair businessair businessair businessair businessair business,,,,,,,, adv adv adv adv adv adv adv advertisingertisingertisingertisingertisingertisingertisingertising usinessusinessusinessusinessusinessusinessusinessusiness esponsible souresponsible souresponsible souresponsible souresponsible souresponsible souresponsible souresponsible sourcingcingcingcingcingcingcingcing o impro impro impro impro impro impro impro improperoperoperoperoperoperoperoper isclosurisclosurisclosurisclosurisclosurisclosurisclosurisclosure oe oe oe oe oe oe oe offffffff PrivPrivPrivPrivPrivPrivPrivPrivacacacacacacacacyyyyyyyy and non-rand non-rand non-rand non-rand non-rand non-rand non-rand non-reeeeeeeettttttttaliaaliaaliaaliaaliaaliaaliaaliationtiontiontiontiontiontiontion prprprprprprprpropertyopertyopertyopertyopertyopertyopertyoperty and compeand compeand compeand compeand compeand compeand compeand competitiontitiontitiontitiontitiontitiontitiontition ininininininininttttttttegrityegrityegrityegrityegrityegrityegrityegrity oooooooof minerf minerf minerf minerf minerf minerf minerf mineralsalsalsalsalsalsalsals advadvadvadvadvadvadvadvananananananananttttttttageageageageageageageage ininininininininfffffffformaormaormaormaormaormaormaormationtiontiontiontiontiontiontion * In previous years, Dell reported supply chain metrics on an annual basis. Going forward these will be reported on a fiscal year basis, unless otherwise noted. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 136
SUPPLY CHAIN — AUDIT RESULTS Key Results are based on audits of 317 P Priority Findings factories. When an issue is identified, we Management systems work with the factory to correct it. M Major Findings At the end of FY22, 90% of priority 64 and 69% of priority and major findings Percentage of audited factories in compliance, with breakdown of major and priority findings of noncompliance according to supply chain tier (cumulatively) had been closed. 100100100100100100100100 100%100%100%100%100%100%100%100% 100%100%100%100%100%100%100%100% 100%100%100%100%100%100%100%100% 100%100%100%100%100%100%100%100% 100%100%100%100%100%100%100%100% 100%100%100%100%100%100%100%100% 100%100%100%100%100%100%100%100% 99%99%99%99%99%99%99%99% 100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2000000002222222200000000 100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2000000002222222200000000 100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2000000002222222200000000 100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2000000002222222200000000 100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2000000002222222200000000 100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2000000002222222200000000 100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2000000002222222200000000 100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2100% in 2000000002222222200000000 2222222222222222 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 11111111 Dell & FinalDell & FinalDell & FinalDell & FinalDell & FinalDell & FinalDell & FinalDell & Final AssemblyAssemblyAssemblyAssemblyAssemblyAssemblyAssemblyAssembly acilities in compliance in FYacilities in compliance in FYacilities in compliance in FYacilities in compliance in FYacilities in compliance in FYacilities in compliance in FYacilities in compliance in FYacilities in compliance in FY f ff ff ff ff ff ff ff f Direct 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 DirDirDirDirDirDirDirectectectectectectect al % oal % oal % oal % oal % oal % oal % oal % o TTTTTTTTooooooootttttttt Sub-tier 00000 00000000 00000000 00000000 00000000 00000000 00000000 00000000 11111111 00000000 11111111 00000000 11111111 Sub-Sub-Sub-Sub-Sub-Sub-Sub-tiertiertiertiertiertiertier 000 00000000 00000000 00000000 00000000 PP MMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPPPP MMMMMMMM PPPPPP M PPPPPPPP MMMMMMMM DocumenDocumenDocumenDocumenDocumenDocumenDocumenDocumenttttttttaaaaaaaationtiontiontiontiontiontiontion CommunicaCommunicaCommunicaCommunicaCommunicaCommunicaCommunicaCommunicationtiontiontiontiontiontiontion CompanCompanCompanCompanCompanCompanCompanCompanyyyyyyyy TTTTTTTTrrrrrrrrainingainingainingainingainingainingainingaining WWWWWWWWorkorkorkorkorkorkorkorker fer fer fer fer fer fer fer feedbackeedbackeedbackeedbackeedbackeedbackeedbackeedback CorrCorrCorrCorrCorrCorrCorrCorrecececececececectitititititititieeeeeeee ManagemenManagemenManagemenManagemenManagemenManagemenManagemenManagementttttttt egal and custegal and custegal and custegal and custegal and custegal and custegal and custegal and customeromeromeromeromeromeromeromer and rand rand rand rand rand rand rand recorecorecorecorecorecorecorecordsdsdsdsdsdsdsds commitmencommitmencommitmencommitmencommitmencommitmencommitmencommitmentttttttt and participaand participaand participaand participaand participaand participaand participaand participationtiontiontiontiontiontiontion acacacacacacacaction prtion prtion prtion prtion prtion prtion prtion processocessocessocessocessocessocessocess accounaccounaccounaccounaccounaccounaccounaccounttttttttability and ability and ability and ability and ability and ability and ability and ability and rrrrrrrreuireuireuireuireuireuireuireuiremenemenemenemenemenemenemenementtttttttssssssss rrrrrrrresponsibilityesponsibilityesponsibilityesponsibilityesponsibilityesponsibilityesponsibilityesponsibility * In previous years, Dell reported supply chain metrics on an annual basis. Going forward these will be reported on a fiscal year basis, unless otherwise noted. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 137
SUPPLY CHAIN — AUDIT RESULTS Key Results are based on audits of 317 P Priority Findings factories. When an issue is identified, we Management systems (continued) work with the factory to correct it. M Major Findings At the end of FY22, 90% of priority 65 and 69% of priority and major findings Percentage of audited factories in compliance, with breakdown of major and priority findings of noncompliance according to supply chain tier (cumulatively) had been closed. 100100100100 100%100%100%100% 100%100%100%100% 100%100%100%100% 100% in 2100% in 2100% in 2100% in 2000022220000 99% in 299% in 299% in 299% in 2000022220000 99% in 299% in 299% in 299% in 2000022220000 94%94%94%94% 89% in 289% in 289% in 289% in 2000022220000 00 0000 0000 0000 0000 0000 Dell & FinalDell & FinalDell & FinalDell & Final 0000 00 0000 AssemblyAssemblyAssemblyAssembly acilities in compliance in Facilities in compliance in Facilities in compliance in Facilities in compliance in F f ff ff ff f Direct 0000 0000 0000 0000 0000 0000 0000 8888 DirDirDirectectect al % oal % oal % oal % o TTTT oooo tttt Sub-tier 0000 1111 0000 1111 0000 1111 0000 10101010 Sub-Sub-Sub-tiertiertier 0000 PPPP MMMM PPPP MMMM PPPP MMMM PPPP MMMM AAAAuditudituditudits ands ands ands and Risk assessmenRisk assessmenRisk assessmenRisk assessment andt andt andt and ImprImprImprImproooovvvvemenemenemenementttt SupplierSupplierSupplierSupplier assessmenassessmenassessmenassessmenttttssss risk managemenrisk managemenrisk managemenrisk managementttt objecobjecobjecobjectivtivtivtiveseseses rrrresponsibilityesponsibilityesponsibilityesponsibility * In previous years, Dell reported supply chain metrics on an annual basis. Going forward these will be reported on a fiscal year basis, unless otherwise noted. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 138
By the Numbers Detailed three-year performance trends on key metrics provide an additional layer of transparency into our work and allow readers to follow our progress. Each year, we report on material indicators from across our business. Some tie directly to the goals set forth in our environmental, social and governance (ESG) plan for 2030, while others provide additional insight into other business indicators relevant to various stakeholders. We complement this information with our framework reporting per the Global Reporting Initiative (GRI) standards, by the SASB Standards and on the World Economic Forum’s core Stakeholder Capitalism Metrics. Our GRI Index also provides mapping of GRI disclosures to the Task Force on Climate- Related Financial Disclosures’ recommendations. In addition, we respond to CDP water security and climate change questionnaires, rounding out our robust ESG reporting. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 139
ADVANCING SUSTAINABILITY Metrics FY20 FY21 FY22 Notes Sustainable Materials in Products Measured in kilograms unless otherwise noted Total sustainable materials used 11,521,288 12,594,607 25,258,183 Sustainable materials value went up due to validation efforts of steel and aluminium. Plastic values also increased due to being able to claim more products. Recycled plastics used 11,217,311 12,007,480 19,223,743 PCR plastics have increased year over year due to being able to claim more parts and obtain additional validation. Reclaimed carbon fiber used 303,977 582,591 682,157 Reclaimed carbon fiber showed slight increase year over year correlated with increases in production demands. Bioplastics used 4,536 280,876 A different methodology was implemented to claim bioplastics. A shift from product basis to raw material purchased was implemented. Recycled steel used 4,945,428 Dell worked within supply chain to verify recycled content used in steel parts in our products. Verification was done by an independent third party to a recycled content standard that conforms to ISO 14021. In FY22 Dell is only reporting verified recycled content for steel. Sustainable Materials in Packaging Measured in pounds unless otherwise noted Ocean-bound plastic used 73,366 118,875 227,595 Represents the amount of ocean–bound plastic incorporated into new Dell Technologies-branded product packaging, shipped to original design manufacturers. FY22 fiscal year reporting is dated 1/31/22. Responsible Electronics Disposition Percentage of product collected 9.1% 9.6% 12.1% This percentage is the total units collected for recycling and reuse over the amount of products sold. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 140
ADVANCING SUSTAINABILITY Metrics FY20 FY21 FY22 Notes Greenhouse Gas (GHG) Emissions Measured in metric tons of carbon dioxide equivalent (MTCO e) 2 66 Scope 1 and scope 2 market-based greenhouse gas (GHG) emissions 290,300 216,300 203,700 All facilities globally, including leased spaces, plus company vehicles and aircraft. Scope 1 GHG emissions 57,000 44,200 45,600 67 Scope 2 GHG emissions, market-based 233,300 172,200 158,100 All facilities globally, including leased spaces. Scope 2 GHG emissions, location-based 405,400 356,900 337,600 Scope 3 GHG emissions — category 1, purchased goods and services 8,758,600 8,767,800 N/A In FY21, we are reporting an increase in scope 3, category 1 emissions of 9,200 metric tons compared to our FY20 baseline. This increase is due to product demand shifts during the first year of the pandemic. For FY22, we have improved our calculation methodology and reporting approach to scope 3, category 1. Our revised approach now incorporates our fiscal year spend with our indirect and direct suppliers’ scope 3 category 1 reports, where available. This ensures our calculations use our most recent supplier emissions data, as well as direct and indirect spend from the same reporting period. As a result, we are not reporting FY22 progress as this information is dependent on supplier emissions data that will not be available until 68 January 2023. Scope 3 GHG emissions — category 3, upstream fuel- and energy-related 131,700 105,500 143,000 Upstream emissions associated with the purchased fuels and electricity used in Dell Technologies operations. activities Scope 3 GHG emissions — category 4, upstream transportation/ 763,400 1,098,200 1,336,100 Per GLEC Framework scope 3, category 4 guidelines, this figure includes the WTW emissions from outsourced logistics transportation 69 distribution contracted by Dell. Scope 3 GHG emissions — category 6, business travel 314,300 61,400 19,600 Scope 3 GHG emissions — category 11, use of sold product 15,790,000 14,260,000 16,160,000 The scope of this data includes all server systems, storage systems, networking systems, displays, client notebook and desktop 70 systems, including Precision and Alienware. Numbers have been rounded to the nearest 100. Totals may not sum. Third-party assurance for Scopes 1, 2 and 3 greenhouse gas emissions, total energy, renewable electricity, packaging and water withdrawal is currently underway. An updated version of this report will be provided once these figures are assured. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 141
ADVANCING SUSTAINABILITY Metrics FY20 FY21 FY22 Notes Energy Used in Dell Technologies Operations Energy figures in this section are for all facilities globally, including leased spaces, plus company owned and leased transportation. Measured in million kilowatt-hours (kWh), unless otherwise noted Electricity consumed (total) 1,009 941 909 Renewable electricity consumed 461 508 501 Quantity generated on-site 0.8 0.8 1.4 Renewable electricity as percentage of total consumption 46% 54% 55% Other energy consumed 198 149 155 Total energy consumed 1,207 1,090 1,063 Water Used in Dell Technologies Operations Water figures in this section are for all facilities globally, including leased spaces. 3 Measured in thousand cubic meters (m ) Water withdrawals — total volume 2,346 1,931 1,778 Third-party sources 2,310 1,882 1,736 Fresh water and reclaimed wastewater obtained from municipal and private sources. Groundwater and surface water sources 36 49 42 Third-party assurance for Scopes 1, 2 and 3 greenhouse gas emissions, total energy, renewable electricity, packaging and water withdrawal is currently underway. An updated version of this report will be provided once these figures are assured. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 142
ADVANCING SUSTAINABILITY Metrics FY20 FY21 FY22 Notes Waste From Manufacturing Operations Measured in metric tons (MT) unless otherwise noted Nonhazardous waste generated 13,175 12,505 14,224 Data is for Dell Technologies-owned facilities that assemble products. Landfill avoidance rate as percentage of total nonhazardous waste 99% 97% 99% generated Nonhazardous waste recycled or reused 11,472 10,544 12,599 Nonhazardous waste recovery (waste to energy) 1,491 1,476 1,390 Nonhazardous waste incinerated 0 4 0 Nonhazardous waste composted 107 54 48 Nonhazardous waste landfilled 105 427 186 Health and Safety Metrics (Dell Technologies operations) Recordable injury/illness rate 0.08 0.04 0.04 Cases per 100 full-time employees (FTEs). DART (Days Away, Restricted or Transferred) rate 0.04 0.02 0.03 Total number of work-related fatalities 0 0 0 Cases for all employees. Material Environmental Fines We did not incur any material environmental fines resulting from product or facilities issues during FY22. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 143
71 CULTIVATING INCLUSION Metrics FY20 FY21 FY22 Notes Team members who identify as women (as percentage of 31.1% 31.8% 33.9% Percentage of individuals in our global workforce who have self–identified as women. global workforce) Nontechnical female representation 35.8% 36.7% 39.0% Technical female representation 20.1% 20.8% 22.8% People leader female representation 24.4% 25.8% 28.2% U.S. ethnicity overall: Hispanic or Latino 8.2% 8.9% 9.4% Percentage of individuals in our U.S. workforce who have self–identified as the race/ethnicity shown. U.S. ethnicity overall: Black or African American 5.1% 5.3% 6.0% U.S. ethnicity overall: Asian 14.5% 14.7% 15.0% U.S. ethnicity overall: American Indian or Alaska Native 0.5% 0.5% 0.5% U.S. ethnicity overall: Native Hawaiian or other Pacific Islander 0.2% 0.2% 0.2% U.S. ethnicity overall: Two or more races 1.7% 1.7% 1.8% U.S. ethnicity overall: White 68.9% 67.4% 65.1% U.S. ethnicity overall: Not specified 0.7% 0.9% 1.4% INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 144
72 CULTIVATING INCLUSION Metrics FY20 FY21 FY22 Notes U.S. Hispanic or Latino representation in nontechnical roles 9.0% 9.8% 10.3% Percentage of individuals in our U.S. workforce who have self–identified as the race/ethnicity shown. U.S. Black or African American representation in nontechnical roles 5.5% 5.8% 6.5% U.S. Asian representation in nontechnical roles 9.1% 9.1% 9.2% U.S. American Indian or Alaska Native representation in nontechnical 0.5% 0.5% 0.5% roles U.S. Native Hawaiian or other Pacific Islander representation in 0.2% 0.2% 0.2% nontechnical roles U.S. two or more races representation in nontechnical roles 1.8% 1.8% 1.9% U.S. White representation in nontechnical roles 72.8% 71.4% 69.4% U.S. not specified representation in nontechnical roles 0.7% 0.9% 1.3% U.S. Hispanic or Latino representation in technical roles 6.5% 7.1% 7.8% U.S. Black or African American representation in technical roles 4.2% 4.4% 4.9% U.S. Asian representation in technical roles 25.6% 26.0% 26.3% U.S. American Indian or Alaska Native representation in 0.5% 0.5% 0.5% technical roles U.S. Native Hawaiian or other Pacific Islander representation in 0.1% 0.1% 0.1% technical roles U.S. two or more races representation in technical roles 1.4% 1.4% 1.5% U.S. White representation in technical roles 60.7% 59.2% 56.8% U.S. not specified representation in technical roles 0.7% 1.0% 1.6% INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 145
CULTIVATING INCLUSION Metrics FY20 FY21 FY22 Notes U.S. Hispanic or Latino representation in people leader roles 6.9% 7.9% 8.5% Percentage of individuals in our U.S. workforce who have self–identified as the race/ethnicity shown. U.S. Black or African American representation in people leader roles 3.0% 3.5% 3.7% U.S. Asian representation in people leader roles 11.7% 12.8% 13.6% U.S. American Indian or Alaska Native representation in people 0.4% 0.6% 0.6% leader roles U.S. Native Hawaiian or other Pacific Islander representation in 0.1% 0.1% 0.1% people leader roles U.S. two or more races representation in people leader roles 0.9% 1.1% 1.0% U.S. White representation in people leader roles 76.1% 72.9% 71.0% U.S. not specified representation in people leader roles 0.6% 0.8% 1.0% Percentage of employees participating in Employee Resource 33% 44% 47% Participation is count of employees signed up for any of our 13 ERGs divided by the total employee population in scope. Groups (ERGs) INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 146
TRANSFORMING LIVES Metrics FY20 FY21 FY22 Notes Percentage of employees volunteering 59% 51% 50% We attribute the decrease to the continued negative impact that COVID-19 had on in-person volunteerism and multiple Dell offices remaining closed throughout FY22. Total volunteer hours (in thousands) 914 516 709 Total number of people reached (cumulative, FY20 to current 46,588,226 93,565,402 159,742,242 Our “1 Billion Lives” goal tracks the number of people who are reached through our health and education initiatives. Due to the vast reporting FY) geographical spread of data and limited capacity of partners to verify data at the granularity of each beneficiary, our direct and indirect impact metrics are not a unique representation of lives impacted. Going forward we will be tracking unique representation for our direct impact. Indirect impact will still remain as a metric that will not be tracked uniquely due to the nature of the community outreach, and this is in line with common measurement and evaluation practices across the industry. Total contributions (in millions of U.S. dollars) $51.6 $49.9 $60.9 This metric represents total cash as well as in-kind products and services contributions, valued at fair market value for the respective fiscal year. This value does not include contributions from employees, vendors or customers. Percentage of people reached who identify as girls, women 51.7% 56.1% 59.3% Percentage of individuals who voluntarily identify as girls, women or members of underrepresented groups within the total number of or underrepresented groups empowered by our social and individuals reached as reported in the “1 Billion Lives” goal. education programs “Girls” and “women” are individuals who self–identify as female. The term underrepresented includes but is not limited to the following groups: girls or women, racial/ethnic minorities, beneficiaries requiring an accommodation (mental, physical, sensory, cognitive and neurodiverse disability), LGBTQIA+ persons, low socioeconomic groups. Total number of nonprofit partners supported in their digital 11 76 222 Currently, this measurement covers the number of nonproft organizations that have participated in a Tech Pro Bono program. We are transformation journey (cumulative) developing measurements to include nonprofits that are supported through other Dell efforts, including direct business unit giving and those organizations that benefit from organic, skill-based employee volunteering. Dell Technologies has invested in the development of a Digital Assessment Tool that is now available to nonprofits globally. This tool allows nonprofits to measure and determine their current digital transformation priorities and helps them track their progress over time. The Digital Assessment Tool was developed by TechSoup, a third-party provider. The number of nonprofits reached in FY21 was previously overrreported by one. After accounting for a repeat workshop participant, the number of nonprofit partners supported through our Tech Pro Bono programs in FY21 was 65. With this adjustment, the cumulative total in FY21 was 76 and in FY22 is 222 nonprofits supported on their digital transformation journeys to date. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 147
Appendix INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 148
How we report This FY22 Environmental, Social and Governance (ESG) Report, combined with the other reports listed below, provides our stakeholders with a transparent picture of how Dell Technologies is delivering on our commitments. Released in November 2019, this plan articulates View our framework reporting per GRI View the current and archived how we will create a positive and lasting social standards, standards by SASB and WEF's core copies of all of our reports. impact on people and the planet through 2030 Stakeholder Capitalism Metrics. Our GRI Index and beyond — using our reach, technology provides mapping of GRI disclosures to the and people. TCFD's recommendations. We support, respect and uphold the Dell Technologies regularly submits a CDP water Dell Technologies regularly submits a CDP climate internationally recognized human rights of all security report that covers corporate efforts to change report that covers corporate efforts to people, and responsible sourcing of minerals is help ensure a water-secure future. reduce climate risks. part of our global approach. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 149
Our approach to net zero Globally recognized climate teams to address those impacts outside of our Upstream emissions: working While energy intensity is a critical portion of performance direct control. with our supply chain any of our products’ carbon footprints, we also recognize the importance of exploring Dell has a history of focusing on climate change Operational emissions Collaborating with our suppliers to help monitor opportunities to embrace the circular economy and has made significant progress on a robust and manage their carbon footprints is critical via our design and our services. We consider set of goals. We first shared emissions data in our Dell’s goal to cut our scopes 1 and 2 emissions by to our efforts to achieve net zero. We expect sustainability at every stage of a product’s life 2002 environmental report. In 2015, we were one 50% by 2040 have been approved by the SBTi as future engagements with our partners to include cycle and focus on using sustainable materials of the first 12 companies to have our emissions consistent with the reductions required to keep their approaches to energy sourcing, increasing that have a reduced impact, designing to make reduction targets validated by the Science Based global warming to 1.5 degrees Celsius, the most energy efficiency, improving logistics, and refining our products last longer and be easier to repair, Targets initiative (SBTi). We achieved our 2020 ambitious goal of the Paris climate agreement. climate-related measurement and reporting. refurbish or recycle. All of these contribute to goal addressing operational carbon emissions that We have already started to drive down our reduced emissions across the product’s life cycle. called for a 40% decrease from 2010 to 2020, energy needs by upgrading our infrastructure and We are also helping our suppliers develop their and scored an A- for our 2021 response to CDP’s improving the energy efficiency of our operations. own engagement practices. If we are to make Looking ahead annual climate change questionnaire for the Our pledge to use 75% renewable source serious progress on our upstream emissions, we quality and comprehensiveness of the information electricity by 2030 and 100% by 2040 will then need our suppliers, and their suppliers, to emulate All of the steps we have outlined will play a part we provided. The disclosure score is a metric of drive our remaining scope 2 emissions almost to our programs or have their own programs in place in reducing our carbon footprint and getting us good internal management, understanding of zero, addressing that portion of our net zero goal. with similar goals. closer to net zero. Our products and services climate change issues and company transparency For our scope 1 emissions, we will focus on likely will always have some footprint. After we’ve on climate change. We are now ready to take the eliminating the use of GHG-emitting fuels in our Downstream emissions: done all we can to reduce our own impacts, next step. buildings and vehicles and transitioning to low- or managing product footprints reduce our products’ energy usage, work with no-emissions cooling systems for our buildings our suppliers to decarbonize our supply chain and Managing our emissions and equipment. While some of these technologies In late 2013, we launched a goal to reduce the champion broad adoption of renewable electricity, exist currently, we recognize that to achieve our energy intensity of our entire product portfolio we will still need to invest in projects that remove Dell’s approach to net zero focuses on reducing goal, we will need to explore new technologies by 80% (FY12-FY21). The first of its kind in our carbon from the atmosphere. We already invest emissions in three primary areas: emissions from and be willing to experiment with different options industry, the ambition level of this target was in some (unmeasured) tree planting and habitat our own operations (scopes 1 and 2), from our in the coming years. recognized by the SBTi when they validated it restoration programs, but we need an “all of the supply chain (scope 3) and from the use of our in 2015. In the last year of reporting against this above” strategy. We will continue to investigate products (scope 3). In each case, we will use goal, we recorded a reduction of approximately and validate additional carbon removal strategies a combination of science-based, time-bound 76.7% compared to the FY12 baseline. In FY23, and will invest in those that are effective, interim goals to monitor our progress toward net we will introduce a new 2030 goal to reduce the quantifiable and verifiable. zero, alongside concerted efforts to engage with carbon emissions associated with the use of sold our supply chain and research and development product. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 150
Ally: An ally actively supports and brings forward Climate refugees: Populations of people who Decarbonization: The reduction of carbon. Glossary awareness of members from a different social migrate or are displaced due, in part, to climate The term often refers to the conversion to an identity. change. economic system that sustainably reduces and These are terms you’ll find in this Allyship: The act of being an ally by championing Climate-related scenarios: Plausible future compensates the emissions of carbon dioxide (CO ). report, as well as the definitions equal opportunities for those from different physical, political or economic scenarios involving 2 we use within the context of the identities and bringing awareness to their unique the large-scale and complex nature of climate Digital deserts: Geographic areas where internet social impact programs at Dell experiences. change. or other connectivity is limited or nonexistent. Technologies. Bioplastics: Plastics that are derived from Closed loop: Materials that are reclaimed, Digital divide: The gulf between those who have nonpetroleum-based biological resources. returned to and reused for the production of the ready access to computers and the internet and Bioplastics can be derived from agricultural same type of product in which the material was those who do not. feedstocks, such as sugarcane, castor beans and first used. In Dell’s case this is material collected Digital inclusion: The ability of individuals and corn, and could be considered either renewable from any IT product (regardless of brand or take groups to access and use information and or recycled materials, depending on the source of back network) to be made into a new IT product. communication technologies. the feedstock. Bio-based material may or may not COe, or CO -equivalent: A term for describing also be biodegradable. 2 2 Digital literacy: The ability to use information and different greenhouse gases in a common unit. For communication technologies to find, evaluate, Capacity building: The process of developing any quantity and type of greenhouse gas, CO e 2 create and communicate information, requiring and strengthening the skills, instincts, abilities, signifies the amount of carbon dioxide (CO ) that 2 both cognitive and technical skills. processes and resources that organizations and would have the equivalent global warming impact. communities need to survive, adapt and thrive in COP26: The 26th U.N. Climate Change Diversity: The condition of being composed a fast-changing world. Conference of the Parties, held in Glasgow, of many different types of people, particularly Child labor: The use of children in industry or Scotland, on Nov. 1–12, 2021. a broad mix of genders, races, cultures, sexual business, especially when illegal or considered orientations, socioeconomic backgrounds and/or inhumane. DART (Days Away, Restricted or Transferred) abilities. rate: A measure of the severity of occupational Downstream: Refers to stages in a value chain Circular economy: An economic system based injuries. after the production of a product, where the on the principles of designing out waste and Data control process: The process of governing product is distributed, used or disposed of. pollution, keeping products and materials in use, and managing data. It is a common type of and regenerating natural systems. internal control designed to achieve data quality, Employee Net Promoter Score: Based on the Circularity: A description of an economic system governance and data management objectives. concept built around the Net Promoter Score or product development process that designs (NPS) to measure employee loyalty, it is a method out waste and pollution, keeping products of measuring how willing your employees are to and materials in use, and regenerating natural recommend their workplace to their family or systems. friends. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 151
GLOSSARY Energy efficiency: A method of reducing energy impacts on issues, such as climate change, human Human Rights Impact Assessment (HRIA): A Linear economy: Value created by Dell, measured consumption by using less energy to attain the rights and corruption. process for systematically identifying, predicting using indicators, such as revenue, pretax income same amount of useful output. Greenhouse gas (GHG): A gas that contributes and responding to the potential human rights and net income as disclosed within our annual Equity: Equity recognizes that each person has to climate change by absorbing radiation, e.g., impacts of a business operation, capital project, financial reports. different circumstances, and that appropriate carbon dioxide and methane. government policy or trade agreement. Materiality: “ESG materiality” references to resources and opportunities must be provided to Greenhouse Gas Protocol: A set of Human trafficking: A crime that involves information in this report should not be construed achieve equality. comprehensive global standardized frameworks exploiting a person for labor, services or as a characterization regarding the materiality Ethnicity: Large group of people classed to measure and report greenhouse gas emissions commercial sex. of such information to our business or financial according to common racial, national, tribal, from private and public sector operations and Ideation session: The creative process of results or for purposes of U.S. securities or other religious, linguistic, or cultural origin or value chains. generating, developing and communicating new applicable law. Any references in this report to background. Like race, ethnicity is a social ideas. “materiality” refer to such term in the context of construct, but it is a more inclusive term. High water stress locales: Geographic areas ESG reporting and strategy. where the demand for water exceeds the Inclusion: Refers to the practice of valuing Microaggression: A term used for brief and E-waste: Electronic products that are unwanted, available amount during a certain period or when organizational diversity and treating others with commonplace daily verbal, behavioral, or not working, and nearing or at the end of their poor quality restricts its use. For determining respect regardless of backgrounds and opinions; environmental indignities, whether intentional useful life. water stress, we use the World Resources helping to create a safe environment where all or unintentional, that communicate hostile, Fiscal Year: Our fiscal year is the 52- or 53-week Institute (WRI) Aqueduct Baseline Water Stress individuals can be themselves. derogatory, or negative prejudicial slights and period ending on the Friday nearest January 31. indicator. The areas considered to be water Internet of Things (IoT): The interconnection insults toward any group. We refer to our fiscal years ended Jan. 28, 2022; stressed are those that have indicator scores of via the internet of computing devices embedded Jan. 29, 2021; and Jan. 31, 2020; as “FY22,” high or extremely high. in everyday objects, enabling them to send and Minority-serving institutions (MSIs): U.S. “FY21” and “FY20,” respectively. Fiscal 2022, Historically Black colleges and universities receive data. higher education institutions that serve minority Fiscal 2021 and Fiscal 2020 included 52 weeks. (HBCUs): U.S. institutions of higher education populations. They include historically Black established before 1964 for the primary purpose Intersectionality: The complex, cumulative colleges and universities, Hispanic-serving Forced labor: All work or service that is exacted of educating Black Americans. way in which the effects of multiple forms of institutions, tribal colleges and universities, and from any person under the threat of a penalty discrimination (such as racism, sexism and Asian American and Native American Pacific and for which the person has not offered himself Human rights: The universal rights belonging classism) combine, overlap or intersect, especially Islanders-Serving Institutions (AANAPISI). or herself voluntarily. to all people simply because they are human. in the experiences of marginalized individuals or Moonshot goal: A bold, aggressive and/or Future-ready skills: Skills that are suitable and They are inherent to every person, regardless of groups. challenging goal. possibly required for new and emerging careers. nationality, sex, national or ethnic origin, color, Latinx: A gender-neutral or nonbinary alternative religion, language, or any other status. to Latino or Latina. Net zero: A state in which the activities within Global Reporting Initiative (GRI): An the value chain of a company result in no net international independent standards organization LGBTQIA+: An acronym for lesbian, gay, bisexual, impact on the climate from greenhouse gas that helps businesses, governments and other transgender, queer and/or questioning, intersex, emissions. organizations understand and communicate their and asexual and/or ally. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 152
GLOSSARY Offset: A consideration or amount that diminishes Pulse survey: A short, quick survey administered Responsible Business Alliance (RBA): The Scope 3 emissions: Indirect greenhouse gas or balances the effect of a contrary one. Typically to employees on a regular basis (monthly, world’s largest industry coalition dedicated to emissions that are the result of activities and used in the context of greenhouse gases. quarterly, etc.), typically used to ascertain corporate social responsibility in global supply assets in the value chain that are not directly On-site renewable energy generation: The feedback regarding topics, such as employee chains. owned or controlled by the reporting organization. action of generating renewable energy at the satisfaction, job role, communication, relationships Responsible sourcing of minerals: The act Single-use plastics: Plastic items designed to be location where the energy is consumed. and work environment. of acquiring mineral materials where social, used once before being disposed of. Operational emissions: Greenhouse gas Racial bias: Implicit or explicit preference or economic and environmental factors are Social impact: The net effect of a company or emissions associated with the operations of a judgments based on racial or ethnic identity. considered and basic standards are upheld. activity on a community and the well-being of facility or company. Radiative forcing: A measure, as defined by the SASB: An international organization dedicated to individuals and families. Partners: Collaborators, customers or suppliers in Intergovernmental Panel on Climate Change, of standards and guidelines for corporate reporting Sponsorship: The function of a person who a company’s value chain. the influence a given climatic factor has on the on nonfinancial performance. supports, advises or helps another person. At Dell, amount of downward-directed radiant energy Science-based targets: Numerical performance we use this in the context of leaders who support People of color: A term primarily used in the U.S. impinging upon Earth’s surface. targets, typically related to water or greenhouse other team members in their career journey. to refer to people who are not white. Rare earth magnet: A strongly magnetic material gas emissions, that take into consideration Planetary boundaries: A concept developed by that includes rare earth elements. the latest knowledge regarding thresholds of Stakeholders: Parties with an interest or concern the Stockholm Resilience Centre that presents undesired outcomes and limits to the planetary in something, especially a business. a set of nine planetary boundaries within which Reclaimed carbon fiber: Carbon fiber that has carrying capacity. STEM: An acronym for science, technology, humanity can continue to develop and thrive for been captured for reuse from waste streams, engineering and mathematics. Most commonly generations to come. disposed-of products or other items. Science Based Targets initiative (SBTi): An used to collectively refer to educational programs Recycled materials: Material that has been international organization dedicated to ambitious or careers in these fields. Product life cycle: The cycle every product reprocessed from recovered material by means of climate action in the private sector by enabling goes through from introduction to withdrawal or a manufacturing process, (including agricultural companies to set science-based emissions Sub-tier suppliers: Third parties that provide eventual demise. Alternatively, it is the stepwise waste) often reformulated, and then made into a reduction targets. parts, materials and/or components related to consideration of all of the relevant steps in the final product or component. Scope 1 emissions: Direct greenhouse gas products directly to a company’s supplier. manufacturing (including the production of raw emissions from a company’s own activities, such Supplier social and environmental responsibility materials), packaging, distribution, usage and Renewable energy: Energy from a source that is as fuel combustion, leaks of refrigerant and the (SER): Refers to when a supplier is assigned or end-of-life disposal of a product. not depleted when used, such as wind or solar. use of greenhouse gases in industrial processes. acknowledges control or ownership of social and Product portfolio energy intensity goal: A Renewable materials: Dell considers a material Scope 2 emissions: Indirect greenhouse gas environmental impacts it may have. quantitative goal for the normalized average to be renewable if it can be replenished within emissions that are related to purchased energy. Supply chain: The collection of companies that energy demand of a portfolio of products. a reasonable time frame and its use does not Location-based emissions are calculated from provide materials or services to a company. endanger the material’s ability to be replenished. the regional energy grid, while market-based emissions align to the contracted source of the energy purchased. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 153
GLOSSARY Sustainable materials: Materials whose Underrepresented minority: In the context of origination or processing has reduced impacts on this report, we are referring to two ethnic groups, the environment. Black/African American and Latino/Hispanic, that Sustainability: The ability to be maintained at have historically been underrepresented in the a certain rate or level or the avoidance of the organization compared to the addressable U.S. depletion of natural resources to maintain an workforce in the technology industry. ecological balance. United Nations Sustainable Development Talent pipeline: A pool of potential candidates, Goals (SDGs): A collection of 17 interlinked global including a company’s employees who are goals, designed to be a “blueprint to achieve a promotion prospects or external candidates, who better and more sustainable future for all.” The are qualified and ready to fill a position. SDGs were set in 2015 by the U.N. General Assembly and are intended to be achieved by the Team members: Team members refer to all Dell- year 2030. badged employees (including full-time, part-time Upstream: Refers to the material and service and temporary). inputs needed for the production of goods or Tell Dell: Annual employee opinion survey services. that gathers feedback across several topics, Value chain: A set of activities that a company including My Leader, Our Culture, My Overall Dell performs to deliver a good or service. Experience and Inclusion. Third-party audits: Verification and/or audit Water risk score: A numerical indication of the activities carried out by independent, unrelated level of water-related risk. entities. Water stress: A situation in which the water Unconscious bias: An implicit association, resources in a region or a country or those whether about people, places or situations, available to a company are insufficient for its that is often based on mistaken, inaccurate or needs. For determining water stress, we use the incomplete information, and includes the personal WRI Aqueduct Baseline Water Stress indicator. histories we bring to the situation. The areas considered to be water stressed are those that have indicator scores of high or extremely high. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 154
Dell’s material Business ethics: Promoting high standards Diversity, equity and inclusion: Striving to Labor engagement and development: of ethics and helping to prevent corruption, cultivate an inclusive culture that reflects the Maintaining positive interactions between extortion and bribery throughout our business diverse perspectives, backgrounds and cultures management and staff, fostering a sense of ESG topics practices. Ensuring that employees are of the communities in which we live and conduct purpose, and commitment to Dell’s strategy empowered to voice concerns without fear business, while ensuring that everyone has and goals. Providing flexible work options and of retaliation and with confidence that those access to the same opportunities within our a positive culture around work-life balance and Information on our recent evaluation concerns will be taken seriously. Ensuring that the organization. labor well-being. Ensuring longer-term sustainable of our key ESG topics is within the marketing and the communication of products Energy and climate change: Ensuring efficient employment across the company’s value chain Stakeholder Engagement & ESG and services are honest, transparent and fair. use of energy and transitioning to renewable and addressing changing labor dynamics. Materiality section of this report. Business performance: Value created by Dell, and low carbon energy sources. Includes Occupational health and safety: As defined by We align our ESG performance and measured using indicators, such as net revenue, transportation energy and product energy the World Health Organization, “occupational reporting with the topics noted below operating income, adjusted EBITDA and cash efficiency. Ensuring resilience of the business and health deals with all aspects of health and safety through our 2030 goals through flows from operations. communities across the value chain to the effects in the workplace and has a strong focus on consideration of guidelines, such Community investment: Dell Technologies of climate change. primary prevention of hazards.” Dell has created a as those developed by the Global invests in our communities with a focus in the Environmental and Social Regulatory healthy, safe and secure working environment for two following areas: Compliance: Striving to ensure Dell complies with all team members. Reporting Initiative (GRI) and the SASB. Our GRI, SASB and World • Access to technology: Ensuring affordable, environmental and social laws and regulations Product quality and safety: Delivering superior Economic Forum (WEF) indexes are equitable access to information and that are pertinent to business practices in each quality products that are safe throughout the available here. communication technology (ICT) globally, country we operate in. life cycle and continuously considering new which is a prerequisite for leveraging digital Governance: Maintaining the standards, opportunities to enhance and increase product information and services. structures and processes to ensure the effective quality to meet the needs of an informed public. governance of Dell Technologies, including This includes protection of any intellectual • Science, technology, engineering and the matters that impact all strategy, goals and property. mathematics (STEM) education: Preparing programs. Product stewardship: Managing product citizens of the future with the necessary skills life cycles to help increase energy efficiency, in science and technology in order to adapt to Human rights: Respecting human rights and recovery, reuse, recycling and recycled content, and thrive in an increasingly digital world. remedying human rights abuses throughout the and enable closed material loops. Promoting Data privacy and security: Guarding against value chain, including supply chain, operations and responsible waste management, in particular threats to data, such as protecting data from loss, customer use of products and services. Includes e-waste management. corruption or unauthorized access, and governing addressing conflict minerals. how data, specifically personal data, is legitimately Innovation: Continuing to improve upon and Substances of concern: Reducing and used and disclosed. develop new solutions in the technology sector eliminating the potential health and environmental and passing benefits of our discoveries on to impacts of substances used in products across each of our stakeholders. Includes information their life cycles. technology for good. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 155
DELL’S MATERIAL ESG TOPICS Supply chain resilience: Reducing Dell’s risk Water consumption: Sum of all water that has exposure to potential disruptions in the value been withdrawn and incorporated into products; chain, such as severe weather events, conflict used in the production of crops or generated and pandemics. as waste; has evaporated, transpired, or been Sustainable consumption: Shifting the business consumed by humans or livestock; or is polluted model to decouple growth from negative societal to the point of being unusable by other users; and and environmental impacts; engaging customers is therefore not released back to surface water, to positively shift purchasing and use behavior groundwater, seawater or a third party over the to enable a circular economy; promoting usage course of the reporting period (source: Global as a service; and dematerializing processes and Reporting Initiative [GRI]). activities through digitization. Water discharge: Sum of effluents, used water Water and effluents: Minimizing or optimizing and unused water released to surface water, the overall water consumption and quality groundwater, seawater or a third party, for which impacts across operations, including within the organization has no further use, over the headquarters and data centers, as well as water course of the reporting period (source: GRI). used (or avoided) by the use of Dell’s products Water withdrawal: Sum of all water drawn from and services. Additionally, the quality of Dell’s surface water, groundwater, seawater or a third water discharges can impact the functioning of party for any use over the course of the reporting the ecosystem in numerous ways. Direct impacts period (source: GRI). on a catchment can have wider impacts on the quality of life in an area, including social and economic consequences for local communities and indigenous peoples. Forward-looking statements: Statements in this presentation that relate to future results and events are forward-looking statements and are based on Dell Technologies' current expectations. In some cases, you can identify these statements by such forward-looking words as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “confidence,” “may,” “plan,” “potential,” “should,” “will” and “would,” or similar expressions. Actual results and events may differ materially from those expressed or implied by these forward-looking statements because of a number of risks, uncertainties and other factors, including any failure to meet any stated ESG-related goals or commitments, and execute our strategies in the time frame expected or at all, as a result of many factors, including changing government regulations, and further expansion into new product and service offerings, technologies, businesses, and geographic regions. More information on risks, uncertainties, and other potential factors that could affect our business and performance is discussed in Dell Technologies’ periodic reports filed with the Securities and Exchange Commission. Dell Technologies assumes no obligation to update its forward-looking statements. This report does not cover all information about our business. References in this report to information should not be construed as a characterization regarding the materiality of such information to our business or financial results or for purposes of the U.S. securities or other applicable law. Any references elsewhere in this report to “materiality” refer to such term in the context of ESG reporting and strategy. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 156
Endnotes 1 As of Jan. 28, 2022. participant, the number of nonprofit partners supported through our Tech Pro Bono programs in FY21 was 65. With this 2 Baseline used for comparisons is Dell Latitude 7300 Anniversary Edition. adjustment, the cumulative total in FY21 was 76 and in FY22 is 222 nonprofits supported on their digital transformation journeys to date. 3 Business recovery from pandemics through the year and increase in Producer Responsibility have supported growth of 19 The number of nonprofits reached in FY21 was previously overrreported by one. After accounting for a repeat workshop collections that we continued to support by strengthening our strategic partnerships and by driving our return programs. participant, the number of nonprofit partners supported through our Tech Pro Bono programs in FY21 was 65. With this 4 This metric only applies to known Dell customer packaging programs. Recyclability/compostability of packaging materials adjustment, the cumulative total in FY21 was 76 and in FY22 is 222 nonprofits supported on their digital transformation is not measured as part of this goal. The FY20 baseline was extrapolated from calendar year data. journeys to date. 5 FY20 and FY21 have been restated to reflect structural changes associated with divestitures and outsourcing since FY20. 20 The end date of our 2030 plan is Jan. 31, 2031. 6 FY20 and FY21 have been restated to reflect structural changes associated with divestitures and outsourcing since FY20. 21 FY20 and FY21 have been restated to reflect structural changes associated with divestitures and outsourcing since FY20. 7 FY20 and FY21 have been restated to reflect an adjustment in methodology. Suppliers’ emissions numbers have been 22 Our restated baseline for direct supplier emissions is 43.7 MTCO2e per $MM. Our original baseline for direct supplier extrapolated to cover 100% of spend. emissions was reported as 47.1 MTCO2e per $MM. 8 FY20 and FY21 have been restated to reflect an improvement in the methodology used to calculate our scope 3 category 23 Our restated results for FY21 show an increase of .14% in direct supplier GHG emissions. We originally reported a decrease 11 emissions. of 7.7%. 9 FY20 and FY21 have been restated to reflect structural changes associated with divestitures and outsourcing since FY20. 24 In previous years, Dell reported supply chain metrics on an annual basis. Going forward these will be reported on a fiscal 10 FY20 has been restated to reflect structural changes associated with divestitures and outsourcing since FY20. FY21 was year basis, unless otherwise noted. unaffected by these changes. 25 In previous years, Dell reported supply chain metrics on an annual basis. Going forward these will be reported on a fiscal 11 Our restated baseline for direct supplier emissions is 43.7 MTCO e per $MM. Our original baseline for direct supplier year basis, unless otherwise noted. 2 emissions was reported as 47.1 MTCO e per $MM. 26 In previous years, Dell reported supply chain metrics on an annual basis. Going forward these will be reported on a fiscal 2 12 Our restated results for FY21 show an increase of .14% in direct supplier GHG emissions. We originally reported a decrease year basis, unless otherwise noted. of 7.7%. 27 In previous years, Dell reported supply chain metrics on an annual basis. Going forward these will be reported on a fiscal 13 We have previously reported data on plastic waste from manufacturing facilities, which do not contribute to this goal. Data year basis, unless otherwise noted. on manufacturing waste is included in the By-the-Numbers section of the report. 28 In previous years, Dell reported supply chain metrics on an annual basis. Going forward these will be reported on a fiscal 14 Percent favorable is calculated using the percentage of respondents who select 4 or 5 on a 5-point scale. Employees hired year basis, unless otherwise noted. at least four weeks before the survey launch are invited to participate (excluding interns and contingent labor). 29 In previous years, Dell reported supply chain metrics on an annual basis. Going forward these will be reported on a fiscal 15 Percent favorable is calculated using the percentage of respondents who select 4 or 5 on a 5-point scale. Employees hired year basis, unless otherwise noted. at least four weeks before the survey launch are invited to participate (excluding interns and contingent labor). 30 In previous years, Dell reported supply chain metrics on an annual basis. Going forward these will be reported on a fiscal 16 Due to the vast geographical spread of data and limited capacity of partners to verify data at the granularity of each year basis, unless otherwise noted. beneficiary, our direct and indirect impact metrics are not a unique representation of lives impacted. Going forward we will 31 In previous years, Dell reported supply chain metrics on an annual basis. Going forward these will be reported on a fiscal be tracking unique representation for our direct impact. Indirect impact will still remain as a metric that will not be tracked year basis, unless otherwise noted. uniquely due to the nature of the community outreach, and this is in line with common measurement and evaluation 32 In previous years, Dell reported supply chain metrics on an annual basis. Going forward these will be reported on a fiscal practices across the industry. year basis, unless otherwise noted. 17 “Girls” and “women” are individuals who self-identify as female. The term underrepresented includes but is not limited to 33 Economist Intelligence Unit has rebranded since this study and is now known as Economist Impact. the following groups: girls or women, racial/ethnic minorities, beneficiaries requiring an accommodation (mental, physical, sensory, cognitive and neurodiverse disability), LGBTQIA+ persons, low socioeconomic groups. 34 Baseline used for comparisons is Dell Latitude 7300 Anniversary Edition. 18 The number of nonprofits reached in FY21 was previously overrreported by one. After accounting for a repeat workshop 35 The main board is also 17% smaller than Intel’s AEP design (their most aggressive/smallest ADL–M implementation). INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 157
ENDNOTES 36 Based on internal analysis, April 2021. The OptiPlex 7090 Tower and 7090 Small Form Factor use 20% closed-loop disposal. For FY22, 265 of our suppliers reported PRTR. recycled aluminum by weight in the optional 2TB 3.5” hard drive. Aluminum sourced from our recycling programs. 55 Per unit revenue is a financial allocation method using supplier-reported emissions data. 37 21% tall oil. 56 Definition from the United Nations Industrial Development Organization. 38 Up to 46% castor oil. 57 Definition is based on the World Resources Institute definition for areas of medium-high water stress or higher. 39 Laptop lid – 71% recycled and renewable materials including bio-based plastics (21%), recycled carbon fiber (20%) and 58 Diverse spend certificates are validated on an annual basis. post-consumer recycled plastic (30%). 40 Excludes optional items added to order and included in box. 59 This number represents the amount our suppliers spent with diverse suppliers for the period Jan. 1, 2021, through Dec. 31, 2021. 41 Sources: https://www2.deloitte.com/us/en/insights/topics/talent/neurodiversity-in-the-workplace.html // https:// 60 Factory compliance percentages are rounded to the nearest whole number. This accounts for instances of 100% medium.com/artfullyautistic/stop-selling-autistic-strengths-as-superpowers-to-employers-335e19dd2e4c compliance when the number of findings is greater than zero. 42 Source: https://time.com/nextadvisor/in-the-news/women-in-the-workplace-career-break/ 61 Factory compliance percentages are rounded to the nearest whole number. This accounts for instances of 100% 43 Sources: https://socialimpact.linkedin.com/content/dam/me/linkedinforgood/en-us/resources/veterans/LinkedIn- compliance when the number of findings is greater than zero. Veteran-Opportunity-Report.pdf // https://ivmf.syracuse.edu/article/the-business-case-for-hiring-a-veteran-beyond- 62 Factory compliance percentages are rounded to the nearest whole number. This accounts for instances of 100% the-cliches/ compliance when the number of findings is greater than zero. 44 Dell Technologies is committed to responsible business practices and ethical behavior. This includes holding our suppliers 63 Factory compliance percentages are rounded to the nearest whole number. This accounts for instances of 100% to the same high standards of excellence to which we adhere, as set forth in the Dell Code of Conduct, and as articulated compliance when the number of findings is greater than zero. in governing laws and regulations, recognized international standards and conventions, and global best practices. 45 Known to be in Dell Technologies’ supply chain. These include second tier, third tier and beyond. 64 Factory compliance percentages are rounded to the nearest whole number. This accounts for instances of 100% compliance when the number of findings is greater than zero. 46 In previous years, Dell reported supply chain metrics on an annual basis. Going forward these will be reported on a fiscal 65 Factory compliance percentages are rounded to the nearest whole number. This accounts for instances of 100% year basis, unless otherwise noted. compliance when the number of findings is greater than zero. 47 An audit cycle includes an initial audit and closure audits to confirm that findings from an initial audit have been addressed. 66 FY20 and FY21 have been restated to reflect structural changes associated with divestitures and outsourcing since FY20. This improvement is based in factories that improved their initial audit scores between cycles, which is an indicator of long-term improvement. 67 FY20 and FY21 have been restated to reflect structural changes associated with divestitures and outsourcing since FY20. 48 Additional corrective action toolkits are as follows: Emergency preparedness and response procedures; Ethics 68 FY20 and FY21 have been restated to reflect an adjustment in methodology. Suppliers’ emissions numbers have been documentation system guidance; Labor and ethics risks (including forced labor); Personal protective equipment selection extrapolated to cover 100% of spend. and use management; Worker protections for pregnant women and nursing mothers; Chemicals management; Ergonomic 69 We calculated our baseline for this metric after our FY20 Progress Made Real Report was published in July 2020. We management; Environment health and safety permit management; Storm water management; and Energy efficiency and expect to restate these numbers in the future as our calculation methodology and data collection mature. For scope 3, greenhouse gas emissions reduction. category 4 emissions, Dell uses the GLEC framework and well-to-wheel emissions factors. 49 Cumulative represents the calculated closure rates for findings as of Jan. 31, 2021. 70 FY20 and FY21 have been restated to reflect an improvement in the methodology used to calculate our scope 3 category 50 Cumulative represents the calculated closure rates for findings as of Jan. 31, 2021. 11 emissions. 51 The COVID-19 pandemic limited our ability to engage directly with our suppliers on energy reduction projects in 2020. 71 “Workforce” is defined as Dell Technologies badged employees, including regular, full–time, part–time, intern and fixed– 52 Diverse spend certificates are validated on an annual basis. term status. United States specific metrics are inclusive of Puerto Rico. “Nontechnical” decribes job families such as in Human Resources, Finance, Legal, etc. “Technical” describes job families such as Information Technology, Engineering, 53 According to data collected through the Responsible Business Alliance Validated Assessment Program and reported in the Data Science, Cybersecurity, etc. RBA 2020 Annual Report, page 51. 72 “Workforce” is defined as Dell Technologies badged employees, including regular, full–time, part–time, intern and fixed– 54 Efforts in this area include encouraging suppliers to report data to a pollutant release and transfer register (PRTR), which term status. United States specific metrics are inclusive of Puerto Rico. “Nontechnical” decribes job families such as in the Organisation for Economic Co-operation and Development considers a tool for governments to provide data to the Human Resources, Finance, Legal, etc. “Technical” describes job families such as Information Technology, Engineering, public regarding the amount of chemicals and pollutants released to air, water and soil transferred off-site for treatment or Data Science, Cybersecurity, etc. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 158
With this report and others, we continue our long-standing commitment to accountability for delivering on our ESG strategy and initiatives. We must innovate and evolve to meet the challenges before us, but it is not our journey alone. We welcome ideas and partnerships, and hope you will join us to drive societal impact, for everyone. Visit Dell.com/ESG for more information.