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Corporate Sustainability Initiatives 2011 Environmental Sustainabil ity Programs 2011 En Pointe Technologies Sales, Inc. Page 2 of 10 . Table of Contents Introduction ................................ ................................ ................................ .................. 3 1) Energy and Climate Programs ................................ ................................ ........... 4 Energy Conservation Initiatives ................................ ................................ ...................... 4 2) Pollution Prevention Programs ................................ ................................ .......... 5 Non Hazardous Waste Management ................................ ................................ .............. 5 Packaging ................................ ................................ ................................ ...................... 5 ................................ ................................ ..................... 6 3) Environmental Stewardship ................................ ................................ ............... 7 Energy Star Products ................................ ................................ ................................ ..... 7 Customer Awareness Programs ................................ ................................ ..................... 8 Cloud Solutions ................................ ................................ ................................ .............. 9 Environmental Sustainabil ity Programs 2011 En Pointe Technologies Sales, Inc. Page 3 of 10 . Introduction En Pointe is dedicated to supplying innovative „green/sustainable‟ technologies and devoted to ensuring that the product offerings we resell, our employees, facilities and our suppliers/vendors are following the commitments we have made to conduct socially and environmentally responsible business practices. En Pointe is committed to helping our customers purchase environmentally engineered and packaged solutions, and helping change the way our customers use technology to support the betterment of the env ironment. Our corporate strategies, policies and programs support this commitment in conducting our business and operations with consideration for their environmental impact. Every employee and contractor of En Pointe is responsible for environmental stew ardship and compliance with applicable environmental laws and regulations. To identify and effectively manage the potential environmental impact of En Pointe's operations, En Pointe has established an environmental management system (EMS). It is a vital element in the company's efforts to achieve results consistent with environmental leadership. En Pointe‟s environmental policy provides the strategic framework for the company's environmental management system and environmental affairs objectives. Our Envi ronmental Policy Commitments can be found at the following URL: http://www.enpointe.com/images/pdf/Environmental.pdf Our EMS objectives are covered by the following focus areas: - Energy and Climate Programs o Energy Conservation o CO2 Emissions - Pollution Prevention o Non Hazardous Waste Management o Packaging o Asset Recycling and Liquidation - Environmental Stewardship o Promote Energy Efficient Products o Offer Energy Efficient Solutions The purpose of th is document is to provide details into the programs that support our Environmental Management System . Environmental Sustainabil ity Programs 2011 En Pointe Technologies Sales, Inc. Page 4 of 10 . 1) Energy and Climate Programs Energy Conservation Initiatives En Pointe is committed to becoming more energy efficient across our business to reduce our total operational carbon footprint. Our goal is to reduce the combined energy consumption and associated greenhouse gas emissions of our corporate facilities and datacenter operations to below previous year‟s levels. En Pointe is involved in many areas of energy conservation. Key initiatives to achieving our goal include:  We encourage employees to turn off electronics when we don‟t intend to use it  We have installed power management tools to turn off computers at night  We encourage power saving to offset our Carbon footprint and use auto shut - off timers in head office  We installed motion sensing devices on our sinks for water conservation purposes.  We promote ride sharing and allow many of our employees to telecommute.  We emphasize “Energy Star” and EPE AT compliant products that our OEM business partners produce and actively try to upgrade older, energy wasting technology with newer, low energy products.  Implementation of a Desktop VDI solution at corporate offices.  Data Center Best Practices and Virtualization Consolidation  Exploring Renewable Energy Opportunities at Corporate HQ 2011 Energy Conservation Goal – En Pointe will reduce the combined energy consumption and associated greenhouse gas emissions of operations by 2 % percent below 2010 leve ls . Environmental Sustainabil ity Programs 2011 En Pointe Technologies Sales, Inc. Page 5 of 10 . 2) Pollution Prevention Programs Non Hazardous Waste Management We actively recycle day to day materials in our facilities such as paper, cans, plastics, printer ink cartridges and the like. En Pointe encourages our employees to reduce paper by utili zing electronic means of communication vs. outbound mail, participate in meetings or training events via Teleconferences, Video Conferencing and WebEx. Employees are encouraged to duplex documents when printing and utilize paper containing at least 30% post - consumer content. En Pointe uses highly efficient and automated sourcing processes which results in not only reduced impact on the environment but also better pricing options for its customers. Our sophisticated system integration with distributors and suppliers, online ordering processes, electronic order statusing and electronic invoicing not only decreases heavy use of paper but trims down the huge pollution that non - efficient traditional delivery and business processes leave behind. Packaging We use Manufacturer Packing for new products which are driven to minimize cost, but at the same time provide enough protection for the products that they are sending out. Any packaging that En Pointe does for Refurbished or Repackaged Product is handled the same way. We try to keep costs at a minimum and use the least amount of material without sacrificing the products that we are packaging. We use the Manufacture r ‟s existing packing materials from the OEM of choice that the customer chooses. En Pointe recycles packaging material that is removed from boxes and keeps using that material until it is exhausted or can no longer be used then turns to using net new material that we purchase from our vendors who are also environmentally aware and sell us recycled boxes only. Tape, Shrink Wrap, Bubble Wrap and Foam are about the only material that is in use at the En Pointe facility that may not be recycled. Approximately 85% of all material used in our facility for packaging is recycled material. All cardboard that En Pointe discards is discarded into a card board recycle bin where the city provides biweekly pickups of that material to be taken to a recycling plant. All materials that are used at our configurat ion facility can be reused with the exception of Tape. All packaging and boxes can be reused or recycled once they are shipping to the end destination. En Pointe can only control what it does with the material it receives. Environmental Sustainabil ity Programs 2011 En Pointe Technologies Sales, Inc. Page 6 of 10 . Currently En Pointe provides pr ograms to pick up single or multiple boxes of equipment that are deployed to the customer. If the customer chooses to used this option any new equipment can be removed from the boxes and old equipment packed in the box we send and either picked up or if th ere are only one or two pieces at a time, a return label will be included into the boxes so that it can be shipped back to En Pointe and disposed of in an environmentally safe fashion. All equipment that is disposed of goes to a state and EPA certified fa cility where it is de - manufactured down to core materials and recycled or the unit can be resold if it is operable and in good condition to a buyer. Asset Recycling and Liquidation Protecting the environment is everyone‟s responsibility and En Pointe strives to do its part. En Pointe is not a recycler and does not directly dispose of equipment. We manage the process on behalf of our customers. Equipment has various destinations depending on type and condition. Tested, working equipment is sold with the business assumption that this equipment will be put to use. Our vendors can track inventory by customer and report detailed information related to quantity, manufacturer, description, etc of all equipment. Scrap commodities are destroyed or recycled and E PA certifications are issued as required. All of our downstream vendors must comply with governmental regulations related to the disposal of materials. Our vendors must also agree to the “En Pointe Vendor Requirements for Hardware Disposition Standard”. In addition to State and Federal required universal waste compliance documentation, we comply with the newest EPA Rules and Regulations concerning the recycling of CRTs. http ://www.epa.gov/epaoswer/hazwaste/recycle/electron/crt - final.pdf Our Asset Liquidation Policy statement can be found at: http://www.enpointe.com/pdf/Environmental.pdf En Pointe maintains SB20 – E lectronic Waste Recycling Act compliance. 2011 Waste Management Goal – En Pointe will improve the ability for employees to participate in recycling programs at corporate facility, increasing employee participation by 10 % audited/ measured through annual employee survey data . En Pointe will also increase our facilitation of customer recycling programs by 2% in 2012, as dited/measured through annual employee survey data. Environmental Sustainabil ity Programs 2011 En Pointe Technologies Sales, Inc. Page 7 of 10 . 3) Environmental Stewardship En Pointe supports our vendor partners in promoting their „Green IT‟ solutions and environmentally sustainable products and solutions to our customers. Green IT (also known as Sustainable IT) involves examining technology, processes and people for areas where organizations can reduce energy consumption and the impact of technology on the environment. For example:  Using energy efficient EPEAT and „Energy Star‟ compliant Desktops , Laptops, Monitors and Servers  Conducting customer campaigns focused on „earth friendly solutions‟  Recycling and Disposing of equipment properly when they become obsolete  Consolidating the number of servers using a process called Virtualization Energy S tar Products En Pointe Technologies‟ offers many “Green” products that are certified and in compliance with different “Environment Friendly Product Standards”. In addition to the “Green Product Offering”, En Pointe also participates in the Electronic Waste Recycling program and effectively guides its customers on properly recycling and disposing of electronics and other products. Green Products Navigator AccessPointe is a powerful web - based procurement tool that organizations can use to automate purchasing processes. Through a simple web browser, users can access a customized application where they can search and buy products while utilizing powerful tools to manage orders in a more cost - efficient manner. O ur customers can search our entire product catal og using various search criteria such as the ability to „Only Show Green Products‟. AccessPointe can narrow a users search to include as an example below – all monitors that meet Energy Star or EPEAT criteria. The Green leaf next to the product indicate s a „Green IT‟ solution. Environmental Sustainabil ity Programs 2011 En Pointe Technologies Sales, Inc. Page 8 of 10 . Customer Awareness Programs En Pointe is committed to helping our customers purchase environmentally engineered and packaged solutions, and helping change the way our customers use technology to support the betterment of th e environment. We recently conducted a direct mail campaign in support of Earth Day. Earth Day Direct Mail campaign The mailing consisted of a branded coffee mug wrapped in a box along with a printed brochure outlining our services and offerings. The “ Earth Friendly” ceramic mug was chosen to help reduce the use of Styrofoam and paper cup waste. The pamphlet communicated our Earth - Friendly partner‟s offerings with tips on how to recycle I.T. components, reduce power and be more earth friendly overall. Environmental Sustainabil ity Programs 2011 En Pointe Technologies Sales, Inc. Page 9 of 10 . Cloud Solutions With energy and power costs increasing as the size of IT infrastructures grow, holding expenses to a minimum is quickly becoming a top priority for many IT pros. Virtualization has helped in that respect by allowing organizations to consolidate their servers onto fewer pieces of hardware, which can result in sizable cost savin gs. Virtualization is a key component of Green IT and is designed to help you use your servers, storage and desktops more efficiently. En Pointe maintains a „virtualization practice‟ that allows us to sell solutions from a variety of vendors who special ize in virtualization hardware and software. We have then taken our expertise in Virtualization and moved it to the Cloud, where we can not only realize the benefits internally, but offer these options for our customers. En Pointe offers five cloud soluti ons for our customers to virtualize their environment to the cloud. Our solutions can be on or off premise. These include:  Cloud Desktops  Cloud Servers  Cloud Voice/Video  Cloud Storage: Ours, Amazon, Iron Mtn  Cloud Apps: VDI / Web / Mobile (www,ipad,a ndroid) Environmental Sustainabil ity Programs 2011 En Pointe Technologies Sales, Inc. Page 10 of 10 . 2011 Product Stewardship Goal – En Pointe commits to conducting a minimum 10 environmentally focused customer campaigns to raise awareness of environmentally sound product solutions. These campaigns to include direct mail, webinars, flyers, and other events.