IMPACTS
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| Lexmark’s LCCP building in Juarez – a USGBC LEED Gold Certified Building. |
Lexmark’s environmental impacts are broken down into three focus areas and are addressed by corresponding initiatives – Product Initiatives, Operational Initiatives and Community Initiatives –
- Product Initiatives include all products and processes we develop to help our customers reduce their environmental footprint, including solutions that help them reduce their consumption of paper (print release, integrated duplex, default to duplex, compatibility with recycled paper, EcoCopy), their consumption of energy (Energy Star-qualified devices, fleet optimization, EcoMode solutions) and their generation of waste (high and extra high-yield toner cartridges, toner darkness control, Lexmark Cartridge Collection Program, Lexmark Equipment Collection Program).
- Operational initiatives include all the things we do to reduce our own environmental footprint at Lexmark facilities such as energy and water conservation and the reduction of waste generation.
- Community initiatives include all the things we do to improve the communities in which we live and work. Lexmark, as a manufacturer of paper consuming devices, focuses these initiatives on efforts in reforestation and watershed protection.
Legal compliance is priority one at Lexmark. We make sure that we are within legal standards wherever we have operations, after which, we balance and prioritize our approach by addressing what needs to be done to best meet the needs of all stakeholders as completely as possible.
RISKS AND OPPORTUNITIES
Environmental sustainability trends have led imaging organizations, including Lexmark to evaluate the potential of physical risks and regulatory possibilities for our business as well as to consider potential opportunities to enhance and capitalize on our product offerings thereby helping our customers achieve their environmental sustainability goals.
ENVIRONMENTAL AND REGULATORY MATTERS AND WASTE OBLIGATION
Lexmark's operations are subject to numerous laws and regulations, particularly relating to environmental matters that impose limitations on the discharge of pollutants and establish standards for the treatment, storage and disposal of solid and hazardous wastes. For further information on the impacts of these regulatory matters, please refer to Lexmark's Form 10-K.
WASTE OBLIGATION
Waste Electrical and Electronic Equipment ("WEEE") Directives issued by the European Union require producers of electrical and electronic goods to be financially responsible for specified collection, recycling, treatment and disposal of past and future covered products. The Company's estimated liability for these costs involves a number of uncertainties and takes into account certain assumptions and judgments including average collection costs, return rates and product lives. Should actual costs and activities differ from the Company's estimates, revisions to the estimated liability may be required.
CLIMATE CHANGE
The potential impacts of climate change have led lawmakers across the globe to propose and implement new regulations to guide governments, businesses and citizens in their efforts to reduce global warming. These regulations have the potential to impact all businesses. Regulations requiring reductions in energy usage will motivate consumers and businesses to replace wasteful equipment with energy-efficient products. Lexmark recognizes that cutting energy use is one of the most effective ways to reduce greenhouse gas emissions, a major contributor to climate change. Lexmark’s environmental policies and programs support the reduction of greenhouse gas emissions within Lexmark’s own operations and those of our customers.
Operational Risks
Climate change and associated weather disruptions have the potential to affect the operations of all organizations. Our operations and those of our manufacturing partners, suppliers and freight transporters are subject to natural and manmade disasters such as earthquakes, tsunamis, floods, hurricanes, typhoons, fires, extreme weather conditions, environmental hazards, power shortages, water shortages and telecommunications failures. The occurrence of any of these business disruptions could adversely affect our revenue and financial condition and increase our costs and expenses. As Lexmark continues to consolidate certain functions into shared service centers and moves other functions to countries with lower-cost labor, the probability and impact of business disruptions may increase over time. Lexmark has a business continuity plan in place at each site that faces risks due to climate change.
Product Opportunities
Lexmark offers a wide range of energy-efficient imaging devices and software solutions that help customers print less as well as consulting services to help organizations consolidate and optimize their imaging device fleets. Demand for such energy-efficient products and solutions can have a positive financial impact for Lexmark.