Lexmark continues to focus on maintaining efficient use of natural resources at our leased and owned manufacturing facilities, research and development facilities, and office spaces worldwide, tracking data since 2005 and meeting aggressive goals which resulted in over 40 percent reduction in total energy use during the 2005 to 2014 time period. Lexmark’s evolution as a leading total portfolio solutions provider has brought several new acquisitions to the business. To reflect this growth, we reviewed the structural changes in 2015 and facility footprint, resulting in an expansion of our reporting boundary to include the acquisitions and the leased office spaces that have not been traditionally reported. As a result, we are setting a new base year for energy comparison and energy reduction targets.
42% reduction in energy consumption between 2005-2014.
NEW GOAL IN 2015
Reduce energy consumption 10% by 2020.
Investments in Energy Efficiency
Energy management programs at our Lexmark facilities assess the site’s energy usage and target projects that can help reduce consumption at facilities. As equipment reaches end of life and building upgrades are necessary, Lexmark will invest in more energy efficient replacements.
Lexington, KY, USA
Lexmark’s investments in energy efficiency over the years include significant facilities projects at headquarters:
- Upgrades to smart building management controls including data analytics
- Installation of frequency drives on air handling unit motors
- Installation of energy efficient state-of-the-art chillers
- Increased insulation on steam piping systems
- A new, smaller summer boiler for steam
- Lighting replacements, including more efficient T8 fluorescent and LED lighting in the Lexmark Center for Children daycare, pilot office spaces, and parking lots.
Lenexa, KS, USA
Lexmark’s newest facility in Lenexa, Kansas, is Leadership in Energy & Environmental Design (LEED) certified, with the building showing a 14 percent improvement in energy as compared to the baseline building performance rating1. The Lenexa construction also installed heating and cooling units that minimize or eliminate the emissions of compounds that contribute to ozone depletion and climate change.
Cebu City, Philippines
The management systems in Cebu City focus on the following activities: operational control of the chiller, air conditioning unit improvements, heater load control, vampire/phantom load management and efforts to ensure lighting and equipment is turned off when not in use. The cost of the operational control improvement projects, including a major project undertaken December 2015 through January 2016, is approximately $55,000. These power use control activities helped the facility save nearly 600,000 kWh in 2015 compared to the established target.
In December 2015, a three-year energy conservation project to replace less efficient lighting with LED lamps was initiated for our Kolkata, India, location. The total project cost is estimated to be $10,700 ($2,300 in 2015). Over 450 lamps have been replaced, saving 15.628 kW per connected load. The yearly energy savings is calculated to be 4,125.79 kWh, equivalent to approximately $6,648.
Lexmark also educates employees about conserving energy in the workplace and discourages the use of space heaters, personal refrigerators, and personal printers, which increase energy use. Energy conservation is included in some incentive programs at Lexmark, providing a monetary incentive for employees when the overall annual energy goal is achieved. Other sites promote employee energy awareness through healthy living challenges, which provide monetary incentives for various levels of challenge participation.
Electricity―Lexmark’s Indirect Energy Source
Lexmark operations use only one indirect energy source: the driver of its Scope 2 emissions, electricity. Electricity used at Lexmark facilities is primarily purchased from local energy providers from local grids. The electricity supplied is generated by a variety of nonrenewable and renewable primary-energy sources, including coal, nuclear energy, solar power, wind power, geothermal energy and hydropower. Lexmark estimates the electrical power derived from renewable sources in 2015 to be 107,321 gigajoules2, 16 percent of the total indirect energy used. The total electrical power used that is derived from nonrenewable sources is estimated to be 546,124 gigajoules.
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Natural Gas―Lexmark’s Main Direct Energy Source
Lexmark operations make use of several direct energy sources in our operations, which drive our Scope 1 emissions: natural gas, diesel fuel and gasoline. These nonrenewable energy sources are purchased from local vendors and then used to generate steam, power backup generators, provide heat to certain Lexmark facilities and provide fuel for leased/owned vehicles. Lexmark does not currently use renewable direct-energy sources such as biofuels (ethanol, for example) or hydrogen. Lexmark does not produce renewable or nonrenewable primary energy sources for internal use or for external markets.
Other Energy Consumption
Travel-related Energy Consumption
Lexmark is conscious of the impact business travel can have on the environment. Lexmark, in collaboration with our vehicle provider and travel partner, calculates miles traveled with Lexmark-owned, -leased, and -rented vehicles. Air travel is also tracked through Lexmark’s travel partner, which has considerably expanded its scope of reporting. This expansion in reporting, as well as Lexmark’s business transitions and development work for a new product launch, have resulted in an increase in travel for 2015.
Employees are provided with lower-impact, real-time alternatives such as conference calls, Web-based meetings and videoconferencing to help avoid unnecessary travel. In 2015, Lexmark installed new audiovisual equipment in many conference locations to provide better communication through Web-based services. Lexmark also encourages employees to combine business trips and use public transportation rather than taxis and rental cars.
Kilometers Traveled in 2015
2015 Worldwide Logistics, Product Transportation and Distribution
Physical shipping of products worldwide and product handling and storage in distribution centers are a necessary part of Lexmark business. We have taken measures to lessen the environmental impacts associated with these activities, which includes working with environmentally progressive partners who apply innovative ideas, best practices and new technologies to their transportation and logistics processes. Lexmark is working to quantitatively report the impact of product logistics.
Lexmark has been a U.S. Environmental Protection Agency (EPA) SmartWay registered partner since September 2008. SmartWay, a collaborative program between the U.S. EPA and the freight industry, is chartered to increase the use of energy-efficient vehicles and has impressive goals to reduce greenhouse gases and decrease air pollution.
Lexmark utilizes the following transport initiatives to help reduce the impacts associated with product shipping worldwide:
- Cube utilization and product packaging—Lexmark develops robust products and efficient packaging that result in a smaller packaged footprint and increased cargo packaging efficiency. Continued improvements are being made in container and truck utilization/fill rate, which decreases the number of ocean containers, air cargo and less-than-full trucks needed to transport products.
For more information on packaging, click here.
- Direct Ship and Replenishment model—Direct shipping from factory to customer destinations helps Lexmark reduce the total miles products must travel, as well as handling and warehousing en route. Lexmark has continued to increase the volumes that are shipped direct over the past three years. Lexmark also sees similar benefit from the implementation of a direct replenishment process—the factory can ship to the country distribution center, bypassing the centralized regional center.
- Intermodal freight transportation—Lexmark continues to employ intermodal freight transportation (a combination of ocean, rail, air, inland water and roadways, and so on) for inbound moves to realize savings of time, money and fuel. Lexmark targets and achieves 95 percent intermodal use inbound in the U.S.
- Transportation Management Systems (TMS)—Lexmark utilizes multiple Transportation Management Systems (TMSs) to optimize product transportation. TMS optimization software selects the most effective mode of transportation, automates carrier selection, reduces air shipments, combines same-customer shipments, improves trailer fill rate, decreases travel distance and cuts logistics expenses. In 2015, Lexmark TMSs achieved a logistics cost savings of approximately 10 percent.
Lexmark drives improvements in warehousing sustainability through the following distribution initiatives:
- Lexmark makes efforts to reduce the space required for warehousing our products.
- Lexmark’s Reverse Logistics and Returns operations improved returns processing and the capability to reduce the number of shipments and mileage, thereby reducing energy use related to returned goods in 2015.
- Lexmark partners with best-in-class Third Party Logistics (3PL) warehouse providers who have a shared sustainability focus. Lexmark’s 3PL providers manage, monitor and execute on targeted goals in sustainability to reduce the use of electricity, natural gas, propane and water. They manage their overall CO2 footprint, which includes recycling activities.
Lexmark continued to make progress in the shift to regional manufacturing. We are on target to increase the number of cartridges manufactured in the region of consumption from 50 to 80 percent by 2017, progressing to 73 percent worldwide in 2015. Regional manufacturing improves supply chain efficiency and helps Lexmark respond more quickly to customer needs.
It also has a tangible benefit to the environment by reducing greenhouse gas emissions as well as providing jobs for people in the regions where our cartridges are used most. Regional manufacturing in Poland has eliminated the need to ship 531 ocean cargo containers from Hong Kong, China, to Europe, which would have otherwise generated approximately 864 metric tons of greenhouse gas3.
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