Dell Technologies recognizes that part of our overall carbon impact on the environment includes carbon emissions that occur when our suppliers manufacture key components and provide vital services to us. As part of our Progress Made Real Plan, we set a goal to partner with our direct material suppliers to reduce GHG emissions by 60% per unit revenue by 2030. This target demonstrates our commitment to addressing climate change and meets the Science Based Targets initiative (SBTi) criteria for ambitious value chain goals. This goal is also part of Dell Technologies’ strategy to achieve net-zero GHG emissions by 2050.
To achieve this goal, we are building on work we started in 2017 to help direct material suppliers reduce energy consumption, improve energy efficiency and source cleaner energy. We select suppliers that have intensive energy use, a high volume of pollutant-released processes and lack management systems in place to join our program.
Dell works with professional energy experts to review suppliers’ baseline survey data and conducts onsite visits to identify improvements to management systems, equipment and processes. Detailed improvement plans to drive progress toward reduction targets are finalized and approved by supplier senior management. Dell works closely with energy experts and suppliers to track progress biannually. We offer trainings and consultancy to support our suppliers in implementing energy saving programs, including air conditioning system frequency conversion renovation, air compressor system optimization management, intelligent electricity online management system, and guidance for setting GHG emission reduction targets.
Since 2017, we have worked with 52 suppliers who lacked energy management systems in our program. Progress to date includes:
1. 13 suppliers received ISO50001 Energy Management System certification and 15 suppliers are on-track to receive certification in the next three years;
2. 44 suppliers have annual emission reduction targets in place and 38 suppliers have committed their long-term reduction targets to Dell;
3. 188 energy saving programs were implemented in 2021 with 57,369 metric tons carbon dioxide equivalent (MTCO2) of GHG emissions reduced;
Our efforts to drive energy consumption reduction include by partnering with 17 suppliers to set their own emissions reduction targets aligned to the SBTi criteria by 2026. In 2021, we worked with four of these suppliers to help them identify factory energy usage, educate suppliers on renewable energy options and leverage industry tools for the development of science-based targets.
Case studies
A. One of our printed circuit board (PCB) suppliers joined Dell’s supply chain energy efficiency program in 2018. In 2021, this supplier reduced their energy usage by 15% and GHG emissions by 9,999 MTCO2. These results were achieved by implementing energy saving recommendations from Dell such as installing a heat recovery system for air compressors, increasing cooling tower efficiency by replacing heat exchange filters, updating workshop lighting to LED lamps and LED illuminant replacement of exposure machines. Prior to joining Dell’s program, this supplier did not have an energy management system in place to set annual reduction goals, commit resources to energy saving initiatives or align internal stakeholders. Today, all four facilities from this supplier have received ISO50001 certification for energy management.
B. Through Dell’s supply chain energy efficiency program, another PCB supplier reduced their natural gas consumption by 84,005 cubic meters and their electricity usage by 312,085KWH, which equals to 550 MTCO2 in 2021. Examples of improvements include converting boilers to low nitrogen type, adapting duct collection machines to low energy mold, and blower energy savings transformation. The PCB supplier also received ISO50001 certification for their energy management system in 2020.
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