remanufacturing the_best_solution_for_the_environment

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REMANUFACTURING THE BEST SOLUTION FOR THE ENVIRONMENT CLOVER TECHNOLOGIES GROUP WHITE PAPER

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Page 1: Remanufacturing the_best_solution_for_the_environment

REM ANUFACTUR INGTHE BEST SOLUTIONFOR THE ENVIRONMENT

CLOVER TECHNOLOGIES GROUPWHITE PAPER

Page 2: Remanufacturing the_best_solution_for_the_environment

Who is Clover Technologies Group?What is Our Vision?How Are We Committed to the Environment?

Page 3: Remanufacturing the_best_solution_for_the_environment

Core ValuesEnvironmental Stewardship

At Clover, we believe that we can have a significant positive impact

on the environment. As an organization, we are committed to in-

vesting our time, money and resources into creating innovative

environmental solutions that will make the communities where we

work and live a cleaner and better place.

Superior Product Quality and Value

Quality and value are at the center of everything we do at Clover.

Each cartridge that rolls off our assembly lines represents countless

hours our team has invested in designing, engineering and manu-

facturing a product that we are proud to put our name on. Clover

work diligently to improve product quality and value through tech-

nological innovation, automation and streamlining of manufactur-

ing and distribution processes. In turn, we pass these efficiencies

onto our customers, through lower prices and superior quality.

Relentless Customer Commitment

Clover understands that our customers have many choices. Our

dedicated employees uphold a “customer always comes first” phi-

losophy. From the CEO on down, every movement within the or-

ganization is focused on ensuring our customers an outstanding

experience. We are committed to remaining flexible and responsive

to our customer needs. We pledge to treat every customer the way

we would like to be treated and will constantly challenge ourselves

to find new and innovative ways to bring value to our partnership.

Environmental CommitmentClover is committed to exceeding the expectations of our custom-

ers while preventing pollution and minimizing the environmental

impact of our activities. Clover’s best practices include:

•Avoidlandfillingwithagoalofzero-landfillwaste

•Prioritizeremanufacturing,reclaimasmuchreusablematerialas

possible through recycling

•End-of-lifeprocessing for all assets collected that cannotbe re-

manufactured

•Industry’sonlygrindingoperationfocusedonthereclamationof

raw materials from end-of-life laser toner cartridges

•DisassembleallproductsinNorthAmerica

•Exceedglobal industry practices for responsiblematerials recy-

cling and final disposition of electronics products.

Clover is dedicated to continual improvement in all of its environ-

mental activities. This is achieved through rigorous process man-

agement and employee empowerment and accountability for

achieving all company goals and objectives.

Internal Organizational Goals Driving Continuous Improvement:Goals are measured daily and reported on monthly.

Recycling of Metals

RecyclingofPlastic

Recycling of Wood Materials

Recycling of Corrugate

Electricity Consumption

Landfill Waste Reduction

Associate Awareness Training

Water Consumption

About CloverClover Technologies Group was founded in 1996. Clover is the global leader in providing resell-ers, mass merchants and value-added specialty suppliers with total environmental solutions in-cluding the remanufacturing and recycling of consumable imaging supplies. Clover is the world’s largest collector and recycler of cell phones, inkjet and laser cartridges. Our innovative recycling programs offer our partners an additional revenue stream while ensuring clients the industry’s most advanced and environmentally responsible recycling solutions.

Mission StatementTo provide our customers with industry-leading environmental solutions, world-class service and the highest quality imaging products at the most competitive prices.

Page 4: Remanufacturing the_best_solution_for_the_environment

ISO 9001:2000-CertifiedISO 9001:2000 is a family of standards and guidelines for quality in

the manufacturing and service industries from the International Or-

ganization for Standardization (ISO). ISO certification ensures that

the processes that develop the product are documented and per-

formed in a quality manner.

ISO 14001-CertifiedISO 14001 is the international specification for an environmental

management system (EMS). It specifies requirements for establish-

ing an environmental policy, determining environmental aspects

and impacts of products/activities/services, planning environmen-

tal objectives and measurable targets, implementation and opera-

tion of programs to meet objectives and targets, checking and cor-

rective action and management review.

Cradle to Cradle ApprovedCradle to Cradle Approval provides a company with a means to tan-

gibly and credibly measure achievement in environmentally-intelli-

gent design. It also helps customers purchase and specify products

that are pursuing a broader definition of quality. This means using

environmentally safe and healthy materials; designing for material

reutilization, such as recycling or composting; utilizing renewable

energy and promoting energy efficiency; efficiently using water

and maximum water quality associated with production; and insti-

tuting strategies for social responsibility.

3 Degrees Partner3Degreesenablesbusinessesandindividualstofundcleanenergy

and carbon reduction projects. They do this by originating and

providing Green-e Energy Certified Renewable Energy Certificates

and third-party certified Verified Emission Reductions (aka, carbon

offsets) from around the world to help their partners reduce their

environmental footprint.

EPA Green Power PartnerIn buying green power, Clover receives valuable recognition from

theEPAforhelpingprotecttheenvironment.Greenpowercanbe

one of the easiest and most effective ways to reduce the environ-

mental impacts associated with your organization’s conventional

electricityuse.BypartneringwithEPA,Cloveralso receives tech-

nical support in identifying green power products that meet the

internal goals of Clover and the needs and environmental goals of

your organization.

Sustainable Forestry Initiative (SFI) - CertifiedThe Sustainable Forestry Initiative® (SFI) program is based on the

premise that responsible environmental behavior and sound busi-

ness decisions can co-exist. SFI program participants practice sus-

tainable forestry on all the lands they manage. They also influence

millions of additional acres through the training of loggers and for-

esters in best management practices and landowner outreach pro-

grams. This unique commitment to sustainable forestry recognizes

that all forest landowners, not just SFI program participants, play a

critical role in ensuring the long-term health and sustainability of

our forests

Compliance and CertificationsClover has key certifications and partnerships that demonstrate our ongoing commitment to quality and environmental responsibility. We work with these organizations on an ongoing basis to continually improve and evaluate our environmental and quality goals. By adhering to these best practices, Clover has become the industry leader in the collections and recycling of car-tridges, cell phones and small electronics.

Page 5: Remanufacturing the_best_solution_for_the_environment

What is a remanufactured cartridge?Remanufactured cartridges are essentially reused cartridges. They

are empty cartridges that have been collected, inspected, cleaned

and rebuilt. The process differs by manufacturer and materials

used with varying results in quality and page yields. Clover’s re-

manufactured cartridges are produced to stringent quality control

standards, using lab-tested components to ensure consistent OEM-

equivalent performance.

What happens when Clover receives an empty cartridge?When Clover receives an empty cartridge, it is evaluated first for

refurbishment and secondarily for material recovery through recy-

cling. A remanufacturable cartridge is disassembled and as many

components as possible are reused. Each and every component of

an empty cartridge that is reused, instead of recycled, conserves

non-renewable natural resources that are required in the process

of recycling. Cartridges that are non-remanufacturable are disas-

sembled, sorted into material types and recycled. Clover’s propri-

etaryClosed-LoopEnvironmentalProcessensuresthateverycom-

ponent of the empty cartridges collected is either remanufactured

or recycled.

Where do the empty cartridges come from?Clover is the world’s largest collector of empty cartridges. Over

90% of the cores used for remanufacturing are from our internal

collections programs. All of the cartridges that are collected are dis-

assembled and stringently assessed. As many components as pos-

sible are reused. The remaining components are sorted into mate-

rial types and sent to recycling facilities.

Is Remanufacturing Really The Best Solution for the Environment?As many businesses and consumers are becoming more environmentally conscious, Original Equipment Manufacturers (OEMs) of imaging supplies have begun to heavily promote their re-cycling programs while attacking remanufacturers for falsely portraying their environmental stewardship. Clover Technologies Group would like to set the record straight. Before purchasing toner and ink cartridges, consumers should have the true facts about remanufactured imaging supplies and their impact on the environment.

Page 6: Remanufacturing the_best_solution_for_the_environment

Where does Clover remanufacture and recycle cartridges?All of Clover’s remanufacturing and recycling processes are con-

ductedinNorthAmerica.EmptycartridgesarecollectedatClover’s

collection facilities in Calexico, California. Cartridges are then sent

to Mexicali, Mexico, where they are dismantled, refurbished and

recycled.

Some OEMs have claimed that the fossil fuels consumed in the

transporting of empty cartridges negate the positive environmen-

tal impact of remanufacturing but this simply is not the case. As

Imaging Spectrum reported in their June 2008 edition,

The recent award of a contract to Clover Technologies by the U.S. Postal

Service (USPS) also shed a harsh light on HP’s claims. The contract al-

lows Clover to recover the empties dropped at USPS offices and Clover

pays for the costs of recovery. This refutes HP’s claims that OEM recov-

ery efforts are superior and demonstrates that US remanufacturers are

searching for ways to recover empties locally and efficiently.2

Despitemanymanufacturersmovingproductionoverseas,Clover

remainscommittedtomanufacturingandrecyclinginNorthAmer-

ica. This stance enables us to conserve fossil fuels with a shorter

supply chain, closely monitor product quality and continually fine

tune our remanufacturing and recycling processes.

How many cartridges does Clover collect?Clover collects approximately 2.5 million

units per month. Of those 2.5 million units,

600,000 are laser cartridges and 1.9 million

are inkjet cartridges. It is estimated that

each empty laser cartridge contributes

about 2.5 pounds in landfill waste1 and

Clover estimates that each inkjet cartridge

contributes about 1 ounce. That means

that each month, Clover prevents about 1.6

million pounds of plastic and metal from

being dumped in landfills.

100% of the cartridges Clover collects are

evaluated for refurbishment. If a cartridge

cannot be reused because of damage or

a defect, it is recycled internally or sold to

other remanufacturers.

How does Clover work towards environmentally sustainability?Clover is committed to providing our customers with environmen-

tally sustainable solutions. Our remanufactured imaging supplies

achieve this objective through reuse, “green” packaging and re-

sponsible, efficient manufacturing.

Reuse of empty cartridges – By reusing empty cartridges and com-

ponents, Clover reduces landfilling and conserves non-renewable

natural resources.

Environmentally-friendly packaging – All the components in our re-

manufactured products are environmentally friendly, from the cor-

rugated box and cardboard box inserts to the installation sheets,

which are printed on recycled paper. All our packaging is SFI-certi-

fied by the Sustainable Forestry Initiative.

Efficient production – Clover’s manufacturing facilities are both

ISO 9001:2000 and ISO 14001-certified. Clover follows rigid quality

and environmental standards to ensure efficiency, conservation of

natural resources and environmental responsibility.

Additionally, Clover has established goals within the organization

to drive continuous improvement upon our environmental sustain-

ability objectives.

Cartridges are dropped off at recycling location

Carriers deliver cartridgesto collection center

Cartridges evaluated forremanufacturing or end-of-life process

Cartridges sorted and placed in inventory

Cartridges sent forremanufacturing

Cartridges 100% post tested for quality control

Cartridges sorted andplaced in inventory

ISO 9001:2000 certifiedremanufacturing

process

Cartridges ready forre-use

Cartridges sent to end of life processing

Cartridges sorted by material type

Cartridges disassembled to component level

Componentsrecycled

Raw materialready for re-use

End-of-Life Workflow

Remanufacturing Workflow

Page 7: Remanufacturing the_best_solution_for_the_environment

How do remanufactured cartridges reduce landfill waste?Each discarded laser cartridge adds approximately 2.5 pounds of

metal and plastic waste to our landfills - waste that will take as long

as 1,000 years to decompose3. It is estimated that 100 million laser

printer cartridges and 400 million inkjet printer cartridges are pro-

duced each year. Remanufacturing these 500 million cartridges will

save an estimated four million cubic feet of landfill space.

Environmentally stewardship is one of Clover’s core values. Clover

is committed to reducing landfill waste and invests significant time

and resources into finding innovative ways to protect the environ-

ment. Our “Zero Landfill” policy has been independently verified by

McDonoughBraungartDesignChemistry,LLC(MBDC)4 and serves

as a guarantee to our customers that empty cartridges that are

non-remanufacturable are responsibly recycled.

Why is remanufacturing a superior choice to OEM recycling programs? (SeeDiagram1)

When a cartridge is remanufactured, it is reused. Reuse is the high-

est form of environmental responsibility. It is superior to recycling

in that it doesn’t use non-renewable resources to breakdown plas-

tic and metal. A cartridge and all its components should always first

be evaluated for refurbishment. If refurbishment is not possible

then responsible recycling should be pursued.

Unfortunately, many times when an empty cartridge is collected for

recycling instead of remanufacturing, it does not end up where the

consumerintended.Inherrecentarticle,“AResponsetoHP’sArgu-

ment for Recycling versus Reuse” that appeared in Imaging Spec-

trumMagazine,TriciaJudge,ExecutiveDirectoroftheInternational

Imaging Technology Council, paints a vivid picture of where many

of the world’s empty cartridges that are not remanufactured find

their final resting place - Guiyu, China.

Guiyu has become the world’s dumping ground for what is defined as

“e-waste.” Sadly, the cartridges that end up here were originally bound

for recycling. Heaps of empty cartridges line the streets and riversides

after being scavenged only for their toner. Once the toner is swept out

by fingers or paintbrushes, the cartridges and other printer parts are

burned – fouling the air – or are discarded along the Lianjiang River.

This practice of low-level recycling and then dumping has rendered lo-

cal drinking water dangerous; the river contains 200 times the accept-

able levels of acid and 2,400 times the acceptable levels of lead. Many

residents have developed respiratory problems. A local school survey

found that 100 of the 1,000 students had severe asthma or other re-

spiratory problems. The residents here have to choose between utter

poverty and pollution levels akin to poisoning. And the net gain for the

average laborer? Roughly $1.50 per day. As Imaging Spectrum has cov-

ered before, it is clear that these empties come from U.S. brokers that

have been collecting large quantities of “virgin,” or once-used OEM

products. Such cartridges are the lifeblood of the cartridge remanu-

facturer, but have been diverted to this Chinese cartridge graveyard for

the simple reason that they needed to be removed from the US market-

place for competitive reasons5.

Diagram 1

Page 8: Remanufacturing the_best_solution_for_the_environment

Judge goes on to explain in her article that while a well-known

OEM’s recycling efforts should be applauded, their results don’t

come close to matching the impact remanufacturers are having on

reducing landfilling, “The recycling of 140 million cartridges over 15

years pales in comparison to the reuse of 105 million cartridges in

2006 alone. That equates to 84,000 tons of industrial-grade plastic

being reused annually, not just recycled, thanks to remanufactur-

ing.”

Just as important as the reduction in landfill waste is the reduction

in the consumption of ecologically-damaging fossil fuels. The plas-

tic in each new laser toner cartridge takes three and a half quarts of

oil to produce while each new inkjet cartridge requires two and a

half ounces of oil6.

Best Foot Forward was recently commissioned by the Centre for

Remanufacturing and Reuse7 to study the carbon footprint of a re-

manufactured mono toner printer versus a new cartridge. Table 1

illustrates their findings. The results of this study make it clear that

the large number of reused components in the remanufacturing

process significantly reduces the carbon impact.

Inseveralreports,theU.S.Dept.ofEnergyOfficeofIndustrialTech-

nologies has stated that although the recycling of toner cartridges

does have a number of benefits, remanufacturing is a superior

choice, both environmentally and economically and that govern-

ment agencies should purchase remanufactured product when

available8.Inaddition,theEnvironmentalProtectionAgency’sRe-

coveredMaterialsAdvisoryNotice(RMAN)recommendsthatpro-

curing agencies establish procedures and policies that give priority

to remanufacturing the agencies’ expended toner cartridges. The

EPArecommendsthatundersuchpoliciesandprocedures,agen-

cies procure remanufacturing services for expended cartridges and

when such services are unavailable or not practicable, obtain re-

manufactured toner cartridges or new toner cartridges made with

recovered materials from product vendors9.

Do remanufactured cartridges perform as well as OEM products?All of Clover’s products are designed to meet or exceed OEM per-

formance and are backed with a 100% satisfaction guarantee. Clo-

ver has invested significant resources into developing state-of-the

art manufacturing and collection facilities to ensure optimal refur-

bishment of each empty cartridge collected. Every empty cartridge

that is received goes through a rigorous, proprietary process that is

overseen by quality control specialists so that by the time it reaches

the customer’s hands it performs like new.

Table 1: Carbon Footprint Analysis - Remanufactured vs. OEM

Life Cycle Stage Emissions per new cartridge (gCO2)

Emissions during remanufacturing (gCO2)

Components (inc. End of Life) 2136 223

ComponentsPackaging 286 65

CartridgePackaging 980 380

Components Shipping 203 19

Distribution 33 451

Energy Use 761 663

Total 4,399 1,802

Page 9: Remanufacturing the_best_solution_for_the_environment

10-STEP LASER TONERREMANUFACTURING PROCESS

1. INCOMING RAW MATERIALS INSPECTIONAllmaterials,drums,toner,blades,PCR’s,magneticrollers,etc...areverifiedagainstourstringentstan-dards before they reach the production floor.

2. SORT & GRADEAll empty cartridges are sorted and graded. Only premium empty cartridges are used in our products. This assures optimum quality of the finished product.

3. RECYCLEAll used packaging materials, used hopper, and non-conforming components are disassembled and recycled to help protect our environment.

4. SPLIT & CLEANPremiumemptycartridgesarecarefullydisassembledandcleanedwithouruniquestate-of-the-artprocess. Through automation we can precisely split the toner hopper with custom splitting equipment and prepare them for the sealing phase.

5. DIGITAL AUTO FILLINGState-of-the-art automated filling equipment is used to ensure precise fill weights for each cartridge. Tonerhoppersarefilledwithpremiumtoners,whicharetechnicallymatchedtotheOPC’s(drum)foroptimum yields and printer performance.

6. SEALINGEach toner hopper is sealed with an OEM style seal. Our quality sealing process ensures a leak-proof cartridge and ease of installation for the consumer.

7. ASSEMBLYOur factory-trained technicians assemble all cartridges with OEM grade compatible components (up to 75% new components are used in each cartridge.) The assembly process includes installation of pre-qualifieddrum,wiperblade,doctorblade,PCRandmagneticroller.

8. 100% POST TESTINGEach and every cartridge is post tested utilizing industry standard print tests to ensure outstanding performance and quality.

9. PACKAGINGAll cartridges receive a final inspection to assure they conform with our quality standards. Cartridges are cleaned, polished, heat-sealed in a static resistant bag then boxed. A full set of instructions and warranty information is included.

10. QUALITY CONTROLEach step in our manufacturing process is monitored by dedicated Quality Control experts. Each step in our production process undergoes regular and spot inspections to ensure our products will meet the expectations of the consumer.

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END-OF-LIFE 6-STEPCARTRIDGE GRINDING PROCESS

1. CARTRIDGE EVALUATIONAll inbound units are designated for Remanufacturing or End-of-Life grinding process.

2. CARTRIDGES SORTEDUnits assigned to End-of-Life grinders are disassembled.

3. CARTRIDGES DISASSEMBLEDComponentsaresortedforrecycling,plastic,blades,gears&PCRdrums.

4. GRINDINGCartridge plastic is inducted into the grinder to produce plastic regrind.

5. PLASTIC READY FOR REUSEPlasticregrindisreusedinvariousinjectionmoldingprocesses.

6. NEW PRODUCT DEVELOPMENTNewproductiscreatedutilizingpostconsumerwastewhichcompletesclosedloopsolution.

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2.5 million cartridges processed a month

Page 11: Remanufacturing the_best_solution_for_the_environment

Remanufactured Imaging Supplies - the Environmentally Responsible SolutionIn summary, Clover Technologies Group firmly stands behind its position that remanufactured imaging supplies are the most environmentally sustainable and responsible choice. The research clearly indicates that remanufacturing significantly reduces landfill waste and lessens non-re-newable energy consumption that is inherent to the recycling process. Experts in the field agree that refurbishment first, material recovery through recycling second is the optimal solution for environmental sustainability10. Recycling is the best alternative only after refurbishment or re-use - making remanufactured imaging supplies the conclusive choice for ecologically-minded businesses and consumers.

1 The Recycler, April, 24, 2007. http://www.therecycler.com/viewarticle.asp?article=12552 Judge,Tricia,“AResponsetoHP’sArgumentforRecyclingversusReuse,”ImageSpectrumMagazine,June2008.3 International Imaging Technology Council, http://www.consumerchoice.info/faq.htm, October 2008.4 Froma2008independentstudyperformedbyMcDonoughBraungartDesignChemistry,LLCandcommissionedbytheUnitedStatesPostalService,auditing

theUSPSMailBackProgram.5 Judge,Tricia,“AResponsetoHP’sArgumentforRecyclingversusReuse,”ImageSpectrumMagazine,June2008.6 Recharger Magazine.7 From a 2008 independent study performed by Best Foot Forward and commissioned by Centre for Remanufacturing and Reuse.8 “GreeningtheGovernment,”U.S.Dept.ofEnergyOfficeofIndustrialTechnologieshttp://www1.eere.energy.gov/femp/pdfs/greengov.pdf9 EnvironmentalProtectionAgency,http://www.epa.gov/epawaste/conserve/tools/cpg/index.htm,October2008.10 Froma2008independentstudyperformedbyMcDonoughBraungartDesignChemistry,LLCandcommissionedbytheUnitedStatesPostalService,auditing

theUSPSMailBackProgram.

© Clover Technologies Group 09009A