Intel Corporation (INTC) Earnings Call Transcript & Summary

Good morning, everyone. Welcome to our webinar business competing reimagine how Intel and Dell are shaping a more sustainable future. We are really excited to have you here with us today. Let's start with some introductions. My name is Roberta Zouain. I'm a business Client Platform Manager at Intel.

Great. I'm Michelle Chuaprasert. I am the Senior Director, leading our Innovation and Sustainability Program and Client at Intel.

I'm Megan Carrasco-Beyer, and I am the Dell Global Product Sustainability Marketing Lead.

I'm Katie Green. I am our Global Sustainability Experience planner for client products.

Excellent. The agenda for today, we're going to go through wide sustainability matters, reimagining the PC ecosystem, how Intel and Dell are working together on sustainability and then we'll open up for some questions and answers. Before I jump in, I want to share you review the platform that we are all using today. You will see some panels on your screen. These panels can be moved and resized, however you like, so you can play around with them. You also see a questions and answer panel. Please submit any questions you have throughout the presentation. We'll try our best to get through all of those today. If we cannot get to your question today, we'll make sure to follow up offline.

Great. Thanks so much, Roberta, for kicking us off. We thought it would make sense as we started to think about and reflect on why sustainability matters. And I think we know that it has an impact on the environment, right? And many of us are aware and may be excited about the opportunity to make a difference about the environment that can give a lasting legacy to the future generations. In addition to that, there's a growing business impact. So we'll talk about the business impact. And we're finding more and more of that through sustainability in a business, it can have an impact on our retention and our hiring and the attractiveness of the company. So let's dig into these a little bit. So going through each of these -- So first off, climate change is an economic, social and environmental challenge with increasing economic consequences. And many of you might be aware, there was a recent IPCC report. IPCC is the intergovernmental panel on climate change and they have a lot of great information. And one of the things I find very helpful is their guidance, they said, if global warming reaches 1.5 Celsius degrees, then we'll see more heat waves, longer warm seasons and shorter cold seasons. And then if we get up to 2 Celsius degrees of global warming, that's when we start to see more commonly hitting a critical point that impacts agriculture or impacts health. Certainly, the guidance that they're looking for is what can everybody do to take our own role to help keep it definitely below 2 Celsius degrees and even better can we keep global warming below 1.5 Celsius degrees. That's great guidance. Now if we look a little closer to home, we can see just the practices of people around us. And so people still are consuming more materials than ever as carbon emissions continue to rise. And as a data point for that, I don't know how close people are. It's hard to see sometimes what's near you and versus the global actual data. But in 2021, there were more than 38 million metric tons of e-waste, thinking about what's close to home for us. And the forecast for that is to go over 70 million metric tons by 2030. E-waste is the fastest-growing waste stream globally. And of course, this is something very close to us that we all can have an impact on and we really can make a difference. Then if you bring it then to the business side and what's the business impact. You'll find a growing number of investors are considering ESG factors in their investments. So let's take that first part of it. Investors are finding when they look at the data that companies who have a solid social responsibility plan and execute to it, those companies tend to perform better. And so then as investors are making their choices, they're tending to prefer now companies with sustainability and social responsibility programs and also that reduces risk. It's good for us to think about that as how it impacts the attractiveness of our own companies for investors and how that impacts how people perceive the company. We're also finding that more and more end users are preferring to use sustainable devices. And there was a recent study from McKinsey, a U.S. survey that said, more than 60% of respondents would do more and even actually pay more for products that are more sustainable. So this is not only impacting investors in our businesses, but also our customers and customer behaviors. Lastly, bringing it to like government and regulation. Many of us are aware that there's several countries. And I would say Europe is leading on this, but several countries that are increasing their regulations around sustainability. And so this can be from car labels that are going on the devices to requirements for companies to report sustainability, but these are advancing in Europe and then in other geographies as well. Hopefully, that gives us a good background. And then let's dig this into a little more on the data for it. A survey from Forrester, they surveyed many companies globally, and they found that 86% of organizations say they currently conduct some sort of sustainability reporting. That's in line with what we saw in some of the requirements that are coming. But furthermore, one of the trends I find exciting is that 75% of organizations audit their partners. And you'll find that if you have a conversation with, let's say, a supplier, maybe the first time that you have a conversation with them about what is their sustainability plan. Maybe they don't have a plan yet. But then the next time you ask them, suddenly, they have a plan because they realize now that you as their partner, that it matters, and it's important for their business. So 75% of organizations now are auditing their partners. And then furthermore, looking on the flip side, you see the number here on 71%. 71% of organizations distance themselves from partners that don't need sustainability practices. That's really something to reflect on as far as the investors' behavior and then how people look at our own companies. And then let's just look at the one last thing, bringing this a little closer with IT decision-makers. 64% of IT decision-makers say that expanding sustainability initiatives is a critical or a high priority. So more and more the ITDMs are realizing that they really do have an impact on the overall company progress around sustainability, and they have a real impact on the employee satisfaction because when they can offer to employees some kind of choice or a message about what they're doing for sustainability practices, that really increases employee happiness at their company because they realize they're part of an organization that cares about this matter. So with that, let's go to Megan, and we'll bring this forward.

Thank you. All good. Thank you, Michelle. So on that theme about why sustainability matters, I want to talk a little bit about circularity. It's important that we're thinking about the linear economy and how we can leave that behind to be more circular. Can we keep materials and products in rotation more? Being able to extract components that are still functional instead of throwing away the entire device when something breaks. Those are really essential to reducing the amount of materials that we need to get out of landfills when we can reuse the materials that already exist. That really speaks to exactly what Michelle said about that concern around e-waste being such a growing area. So many of us keep our devices because we have this value associated with them. An emotional value where we fought for the budget to get those things approved. We don't want to admit that we're not really using them. But those technologies still have a lot of life left and can be shared with other second and third-tier users so that we don't have to make maybe as many PCs, and we can keep them in rotation longer by repairing them. So circularity is a huge part of our business for both of our companies. And looking at how it affects PC purchasing, you've got these data points from the survey that says sustainability initiatives can help reduce an organization's total cost of operation. 79% of IT decision makers say that it's a high priority. And we see that sustainable procurement, like buying sustainable technologies is the #1 priority for procurement organizations. And then you see 40% of PC purchasing decision-makers saying that employee recruitment is a huge focus for them. I can justify to this personally last week, I spoke with one of our new hires about my role in sustainability. It comes up a lot. Jane is very interested in this kind of role. And so in talking with her, she said that one of the reasons that she chose to work at Dell was because she saw our commitment to our 2030 moonshot goals and the other work that we're doing in ESG, and she wanted to be a part of it. And I think that's a huge opportunity for companies that are looking for passionate and ethically minded people to bring new ideas to an organization. Then lastly, the data tells us that 60% of IT decision makers have to ensure that their vendors align with their sustainability goals. And what that means is that if you can find a vendor that shares your mutual goals, then you can achieve your goals faster together by partnering with your suppliers, your vendors, everybody involved in the system to achieve your goals together. And that definitely makes things easier from a sustainable IT procurement perspective. And with that was going to move into our first poll. Does your organization have a sustainability strategy in place? Yes, no? Or is it in the works? We do have a data point that says I believe at 79% of organizations believe that they will have total alignment with their procurement strategy and their sustainability goals within the next 2 years. So for those who don't quite have it yet, I expect that you probably will and for those in the works, it will probably be in the next 2 years or less. Great. A large amount of people say yes. Okay. Great. Do we want to hand that back over Michelle, I think you're picking it up next.

Yes. If we can go to the next slide, then we'll go ahead and tie into that. So thank you. And it was really nice to see the results from the poll matching a lot of -- Some of the data points that we've seen. So we talked a little bit about some of the things like reflecting on sustainability. And then when you look at how we can approach that challenge, it is an industry-wide challenge. It's certainly not something that can be solved by one company. So first off, solving the PC industry's long-term challenges require collaboration between chip makers and their ODM and OEM partners. And so you'll hear a little bit later today how we partnered with Dell and we partnered together and some exciting thing. I think we've worked really closely and we're excited to share more about that. And we would also like to share how we work with our suppliers -- and so when you think about the scope that we have together, partnering between the suppliers and the manufacturing of the CPU and the other chip components, all the way into the system design and even thinking what happens after the system design, we have a great opportunity with all of that joint intelligence to understand what our challenges are, what our opportunities are and to make a difference just from the -- all the way through the whole life cycle of the PC development. So this is absolutely an industry-wide challenge. I've been excited at the engagement with our partners and an opportunity as well as the track record that we've had so far to make a difference. So if we can jump in now, I think I'd like to share a little bit about how Intel looks at this and our specific goals, a little bit of progress about it. I've been at Intel for quite some time, maybe longer than I want to admit probably, but I have been really proud at Intel of our corporate social responsibility programs over the years. And just in 2020, we announced our Intel RISE program. So we put a name on it and made this figure that you can see here to reflect the model. So RISE refers to the programs that we do to be responsible as well as inclusive and sustainable. And then the last letter is around enabling like we were just saying that so much of what we do. There's some we can do on our own and then so much we can do through enabling and partnering across the industry. Some of the specificals Intel had is in 2030, we, Intel aims to achieve net positive water, 100% renewable energy and 0 waste to landfill. Hopefully you agree, I think these are really aggressive goals, but also things that we can feel really proud of when we get to 2030. And just as far as the progress so far, we have already achieved 80% renewable energy globally, which I'm really proud of. It's something I feel good about the investment from our company and then as we partner in the industry to know that, that's the case. As far as the net positive water, we've had very active programs on conserving water as well as reclaiming water and then a good investment in programs in different environments where we are to help to bring back the environment and recover and improve the environment as far as the water goes. And then last as far as zero-waste to landfill, we've had no more than 5% in the last years. And we, in fact, have over 60% of our manufacturing waste and programs have circularity programs. So really excited about that. And we have a few years now to get to 2030, and I'm excited about the advancement there. Now last year, we made another announcement that I feel great about, and it was around net 0 greenhouse gas emissions. We committed last year that by 2040, we aim to achieve net 0 greenhouse gas emissions in our global operations. And so we're making good steps towards that. It was a big announcement, and I'm glad to see our progress and plans for that. Let's give it over to Katie, and we'll hear more from the plans and what Dell has in the works.

Sure. So similarly, our goals are corporate-wide and so they do touch our infrastructure solutions, our client solutions and our displays and client peripherals business. This is the goal span all of Dell Technologies. By 2030 for every product that a customer buys, we plan to reuse or recycle an equivalent product, and we call that our one-to-one take-back goal. For every one we sell, we will take back one. And that's really increasing our programs like consumer take-back and our asset recycling services to make sure that customers on the both business side and the consumer side, both have opportunities to return their electronics. Michelle mentioned earlier about the growing problem of e-waste. And so by having this goal, we hope that we can reduce that e-waste and put those PCs back into a refurbished market or recycle them responsibly. The second goal listed here is about materials and using recycled and renewable content. So we are committed to having 100% of our packaging materials made from recycled and renewable materials, and that half of our product content will be made from recycled or renewable materials. We're making a lot of progress in plastics. And then in our most recent product launches, we've announced recycled copper, recycled steel and recycled aluminum. Progressing through those innovations and materials from kind of more typical plastic recycled content, which the industry as a whole has made a lot of progress in and into those metals that are a little bit newer from an industry perspective and innovation perspective. So very excited to be diving into that other area. We do have another poll question here. The slides are moving on me here. All right. Let me cover this last goal we have. Similar to Intel, we do have a net 0 greenhouse gas emissions goal. This covers scopes 1, 2 and 3. And if you're not familiar with how carbon emissions are calculated, those scopes can get pretty detailed. But what I focus on in my role with the product development is Scope 3, and that is the supply chain, the transportation logistics and the product energy use. Making sure that we're driving reductions across all of those areas as we develop products, as I mentioned earlier about partnerships. We want to partner with other companies that also have carbon reduction goals so that together, we're reducing our carbon collectively. That's a big focus for us. And I just do want to clarify, that goal is by 2050, but similar to the 2 goals above that by 2030. We're putting in place some progressive goals along the way to make sure that we are working towards 2050 through some sub-goals in the 2030 and 2040 time frame. When we talk about the PC ecosystem, that whole life cycle is important, making sure I mentioned that Scope 3 Category 1 emission about the supply chain, the manufacturing, making sure that, that is a key focus for us, not just in the carbon emissions, but in the product design. If we want to drive a more circular economy, making sure that the products are capable of that. In the initial product design, making sure that the key components are repairable are replaceable and that if they were repurposed in a refurbished model in the future that they would all work together. And the integral part of that is making sure that the components who have the largest carbon footprint are the more recyclable components. This is really driving a lot of change within Dell. I'll talk in a little bit about one of our partnership innovations with Intel to just completely redesign how PCs are built from the ground up, rethinking how we put components together. How they are attached to the PC chassis, so reducing adhesives using common screw types, really trying to make things where they don't -- Once you remove that component, you aren't then stuck with an inability to repurpose it. And that can also go along with extending the life. So not just being repairable, but also being durable and extending the longevity of a product's ability to stay in function for longer. Dell does offer a lot of things through our online platform where you can do remote data cleaning, you can ensure that your PC is running as efficiently as possible. Sometimes just by running some of those software updates, you can extend the life of the product. Not just on the hardware side, but also on the software and functionality side, you can extend the life of your product as long as possible before it's time to replace a component or purchase a new PC. And like I mentioned with our take-back goal, if it is time to purchase a new PC, ensuring that the one that you have goes back to responsible source so that we can put those components back to a greater use in their next life or their cascaded life. Michelle, I wanted to give you the opportunity here, if you had any other things to contribute to reimagining the PC ecosystem.

Thanks for that, Katie. And it's been -- I have to just say it's been inspiring to work with Dell and your vision about the take-back program that you have in your moonshot goals. Thanks for telling us more about it. As far as our circular program at Intel, I think maybe I'll mention 2 parts of it. One is in the design, which is really close to home for me. My team, we work on making reference designs that are just for reference and for inspiration around technology, and we've been adding more sustainability capabilities to them over the last few years. And one of the areas that we look at is what can we do in the repair of the system? And then what can we do at end of life and what technologies can we put into that, that help promote circularity when it gets designed into a system. And we'll talk more about that later, I think, in a few different ways. But that's extreme part is what do you do in the design that promote circularity. So that's one factor of it. And then if you look at Intel as a company, of course, as we do manufacturing, it's been a significant priority for us for years and years, our manufacturing as well as just the equipment that we use and the equipment. I use, for example, for my job. So as far as the manufacturing circularity, we do have reuse and take back and recycled programs. And we have, for example, recovered more than 130 million metric tons, 130,000 metric tons in our manufacturing waste. So thanks, Katie, for the chance to share that. Sure. And let's go over to Roberta can take us into the details.

Yes. This is a perfect segue. And I think Intel is so uniquely positioned for this. When we think about product sustainability, we really literally go from sand all the way to recycling components and everything in between. The Intel vPro platform is our business client platform. That's definitely something we take into consideration when planning our products. How can we help IT managers more sustainably manage their fleet. And I know that for you all, 80-plus percent of you that answer that you already have a sustainability go in place. That is actually top of mind. How can you not only procure PCs that are sustainable, they have, let's say, the latest eco-labels, they are energy-efficient, but also how can you more sustainably in your day-to-day operations, how can you more sustainably manage those fleets? And then, of course, like Katie said, how can you responsibly recycle those products when it comes to time to finally retire the assets. I'm going to talk about a couple of different solutions here that we have in the market today and both of which are, of course, also available with Dell vPro products. The first one is Intel Dynamic Tuning Technology with Energy Performance Optimizer. That's really thinking about that operational carbon footprint and the energy used by the product. So one of the things that really is a focus for us is how can we make sure we provide energy-efficient products without sacrificing performance and user experience. When I hear from you that you need to sustainably run your businesses, there are 2 parts of that. There is a sustainable part, but there's also the run your business part. We cannot forget about that. That, of course, still matters. That has been a huge focus for us really working internally on tuning technologies that can help optimize workloads to run more efficiently, again, without sacrificing performance or user experience. In our most recent designs here in partnership with Dell and Dell Optimizer, we were able to achieve 18% of our savings when the PC is set on quiet mode on the Dell optimizer. That's pretty significant. And again, this is without sacrificing performance or user experience. So let's say, if you were having a video conference with multiple people, that's not going to result in drop frames for quality connections. That's super important for us. The other one here, again, talking about that operational phase, and Katie did a great job presenting the concept of the PC life cycle, so starting with manufacturing. And of course, we already talked about everything we do, both Intel and Dell when it comes to our manufacturing use, right? So energy efficiency, super important here. Manage, is also extremely important. So when it comes to PC management, I think Intel vPro has been really leading the market here in terms of providing remote eligibility features. And again, that's super important, especially in the context that we all live today in remote or hybrid work environment or if you have distributed sites in your organization, this can really help minimize unnecessary travel or IT dispatches. So for instance, if I wake up in the morning, I turn on PC and I get a blue screen of death, instead of having to drive 40, 50 miles all the way to the office, I can just call my IT manager and they can remotely address that problem and get me going for my day. So again, super important to really think about the PC, not just isolate it as one asset but really in the context of your operations. The Intel active management technology that we've been in market for -- vPro has been in the market for over 15 years. We do have certainly a lot of experience in addressing remote manageability needs. Some of the things that I wanted to call out here that really can help with your sustainability goals through [indiscernible], you can remotely power cycle, so remotely turning devices off and also on. So they're not in the sleep site, they're actually off. You can also set that on a schedule. Some of our customers, for instance, banks, they might have a specific time when all of their PCs, that's our PCs for instance, would turn on and then off at the end of the day, saving up a lot of energy. The other use case here that I just talked about is that, through some of our remote management technologies, you can avoid unnecessary transportation of personnel and assets. So either dispatching IT to a business location or having those remote or hybrid workers take an unplanned trip to the office just because of an IT issue with our pieces. We commissioned a study with Forrester, and we found out that one of our customers was able to save up to 2,000 [indiscernible] with remote repairs. So again, when you think in the general context of things, and really thinking about your organizations sustainably goes, if you look at just a feel of those 2,000 [indiscernible] that we're now able to save, that really adds up, and that represents a significant amount of emissions that have been avoided just because of how you are managing your business. Now I think we have another question for you. What percentage of the device purchases took sustainability to your consideration for your organization? I'll give you all some time here to answer that. Very curious to see the results. I know that, of course, sustainable PC procurement has been growing in importance in the recent years. We do have here on the handout session, a few assets that you can load for your reference. And one of them is actually on how can you make PC procurement part of your sustainability strategy. So again, really important to keep in mind the solutions and the devices that will help you throughout the entire PC life cycles. So from manufacturing all the way to recycling, making sure you choose partners, OEMs that provide recycling programs like what Dell offers. And of course, devices that are sustainably manufactured and use energy efficiently as well. It seems like the results are getting in. Well, almost half of you are 62% right now saying that 25% to 50% of your device purchases are already taking sustainability into consideration. That's really great to see. [ There's need to share ] here again. I'm sure I can speak to all of us here today.

I think that's great to see. It's just from multiple customer conversations, often we're seeing that those goals can be set at the higher corporate level, but they aren't always making their way down into the IT requirements or purchasing consideration. I'm very motivated by the responses here.

Yes. Actually, I'd love to know it through the chat if everyone can add maybe what those specs are that you're using as part of the consideration? Is it eco-labels? Is it energy consumption of those devices? If you guys can write that into a chart, that would be great to understand.

That's an excellent call out again appreciate that.

They can write those into the Q&A box. And also the questions are coming in, which is great. So just as a reminder to folks that you can write in more questions if they're coming to your mind. And Roberta, if you don't mind, maybe we can take one now. Someone asked you talked about [indiscernible]. And so there was a question, what do you mean about truck roll when you were talking about Intel active management technology?

That's an excellent question. So [indiscernible] really when you dispatch IT, that's typically the industry jargon, if you will, or when you dispatch IT personnel to address an issue on the field. So first, again, -- in the reality we live today, many of us still are on remote or hybrid work. So there is another aspect to that, which is, again, right, those unplanned trips to the office. So the jargon is really in relation to dispatching IT personnel. But I think -- and that particular study was -- the data was from just before COVID. So I would guess that, that number might be even higher today, again, just in the context of how work has changed in the past 3 years. Thank you for that, Michelle. Okay. Well, with that, I let you bring Katie back and talk to us a little bit about this incredible and I work for Intel and I work very closely with Dell as well, but every time I hear about this project, it's still made the work that we were able to do here and some of the achievements we got. So Katie, if you would like to take us through what we've done, that would be wonderful.

Sure. Even having worked on this project, I still get excited about it. We've been collaborating between Dell and Intel and a few other partners on this project called Concept Luna. So when we first forayed into this idea, we wanted to find a way that we could -- I want to say, achieve but attempt to achieve our moonshot goals, our sustainability goals as soon as possible and really pushing the envelope to understand what is possible. If we resaw things from the beginning with a new mindset, a sustainability mindset, a circular economy mindset, a climate change and emissions reduction mindset, how much could we change about how a laptop is designed and implemented? And then also taking into consideration that end-of-life step, if every single component of the PC was replaceable, repairable, upgradable, that would mean a really big difference in reduction in e-waste. And as a result, a reduction in carbon footprint because you're not always building an entirely new PC, but you're taking advantage of those components that still have some state of health or state of life in them. When we took off at the outset of this, we said, let's see if we can reduce the carbon footprint by 50%. Let's see if we can use 50% recycled and renewable materials. And let's see if we can make it a peak repairability. As repairable as possible. And we're very happy to say that we achieved those goals that we set out to do and then some. We did have a version of Concept Luna that came out in 2021. And then we continue to work on it and evolve it into the design that you see on the screen today, which is the Concept Luna evolution that we came out with in December of 2022. So still very new. You guys are some of the first people to see presentations about it and really dive into those details. When you look at the layout of this, the components have been reimagined how they even fit down into the chassis components. The motherboard has been reduced. Each component is not screwed or soldered or adhered in. I mentioned adhesives earlier, anytime you're using adhesives, you're reducing that ability to repair that component. By removing the adhesives and working on sort of a snap-fit methodology, we're able to repair any component. And the big news is that it can all be done by hand. So this is a toolist approach. It does require one single tool, which could be a skinny screw driver or a stylus pen or if you are in IT and you have a smudger that's the official name for the poking tool that could get you in to the PC. We are utilizing the Noble lock slot. The lock slot is located in the top right-hand corner of this image. And by poking through that lock slot, you're able to then release what we call a Keystone and that's not a technical word that's just Keystone is the thing that holds everything else together. By removing that one Keystone, you're now able to remove the speakers. You can see the little blue dot there on the speaker. It's a little rubber gasket. It fits into a little locking mechanism. Just sliding the speakers up and out and you've now removed the speaker. I think one of the more phenomenal things is the lack of cabling. When we looked at repairability and carbon footprint combined, the ability to repair a PC involves a lot of small tools that you use to maneuver your way through the cabling. And cabling can have a big carbon impact because of the copper in the cables and that can have a detriment to repair because you have to be so specific to not mess up a cable, knock it out of a bracket, not break a bracket or mess up that connection point. We are using pogo pins and contact points that touch from the speaker to the battery, the battery to the Board and then those connect back to the keyboard, which is not shown in this image as it's been split off already. So reimagining very much so how the internal components of the PC talk to each other to enable repair and then dematerialize is another word that we use when we talk about reducing the cables, reducing the number of screws because those are also metal. So anywhere that you can remove a component or reduce a cabling, you're reducing the carbon footprint as a result as well. And if we would go back, there's one more thing I want to note on that. The chassis itself, so the exterior portion of the laptop. Sometimes this can be made out of plastic and we have a laptop that's made out of a combination of plastic and carbon fiber and renewable bio-based plastics. With this particular product, we went with aluminum because it is infinitely recyclable. Ensuring that after that first use, it can go into recycling, it can be repurposed multiple times into another laptop or another component. What you see when you take all of the components out is just a single sheet of aluminum. We've also made the inter frames out of aluminum. By having this sort of unibody or uni-material design, when you do remove all the components, you have one piece of material that can go into a single waste stream. And contaminating waste streams in the recycling efforts is quite a problem. You think you're doing good by recycling, but sometimes you may actually be contaminating that particular materials waste. So we wanted to make sure when you do remove all the components by hand very easily, that what you're left with is a single material chassis so that when you go to recycle that, and in this case, you could even recycle it right into your metal recycling bin at home. So residential recycling because it's just metal. There's not any other components, glued, adhered, soda or anything like that to the actual chassis. That was a big effort that sometimes goes a little bit unnoticed, but we did think all the way down to the end of life of the PC and making sure that it can be easily recyclable and then infinitely recycled into new components later. And with that, we can go to the next one. Thank you. So Michelle, you and I work really closely on this. So if there's some components in here it, you want to touch on, I'm happy to let you chime in.

Sure. Thanks so much, Katie. And I just have to say there's so much joy in your face when you start to be able to talk about Concept Luna, and it really was a wonderful experience together, but I just appreciate so much the joy from working with you and the team and that's what we did together. If you look at some of the insides of the device a little bit, some of the focus areas we had is how can we reduce the carbon footprint? What are the things we can do that really make a difference on the carbon footprint? And a big piece of it was looking at the main board and the components on the main board. One area that our team at Intel focused a lot is how to reduce that. We were able to reduce the total area of the main board by nearly 75% while reducing the component count by 20%. And that was through thinking about just throwing out everything we've done before, let's think about out of the box about what we can do in the design of the Board, placement of the Board and what other components impact that in order to make those reductions. We're really, really proud of that. And I think that was a much bigger achievement than I even dreamed I think, that the team could get to. When you look at that and then look at the overall system, carbon footprint, we had a reduction by 50% based on those reductions I mentioned, the 75% and the 20%. Some of the areas further in the system, we heard Katie talking about, and we've even seen the reduction of the components needed. There's very few screws needed. Just a few, and it's mostly on manual disassembly now, the way Katie was describing. Another area to really think about is energy efficiency. And so energy efficiency is a big one because you know like over the years that you have your PC, we keep using it, you plug it in and it's consuming the energy. So every bit that we can save really makes a difference. One focus was around the battery and the battery delivery in the system. So we increased the overall system approximately 4% by designing for these higher-voltage batteries, which I'm pretty proud of. And then another area that maybe we don't always think about, but it's the LCD. So your display has a backlight and that backlight is there. Maybe we don't pay a lot of attention to it. But if you could make that more power efficient, what does that do to the overall -- how does that reduce the energy consumption of the device? We were able to increase the efficiency of that LCD backlight by more than 10%.

Yes, Michelle, we also had a backlit keyboard innovation we implemented in Concept Luna and very excited that we were able to incorporate that into our product launch this year. So a week or 2 ago when we launched our new Latitude 7000 series and Latitude 9000 Series products. The backlit keyboard module is using a different type of microLED and it improves the battery life and improves the efficiency of the energy as well. So really finding ways that we can take the Concept Luna innovations and waterfall those into the products that are launching today.

I think that might bring us to the Q&A, and I've been really excited to see some questions coming in. If you have a question and haven't had a chance to write it in, there's this Q&A section and so you can write that in. And with that, I think we'll get started in addressing them. Roberta, would you like to start us off?

Yes, of course. There's 1 year actually about Concept Luna and the question was when will this be productized. So okay, you talk a little bit about some of these innovations making its way to other products? Can you talk about that?

Yes. As a whole, it is only a concept and not for sale. The product itself that we showed today and talked about is not for sale, but it was intended to test the possible. We're very happy, like I mentioned, to have implemented some of that possibility into our product line so quickly. Another aspect of it that we implemented was the use of low emissions aluminum. I do see one more question here that this kind of ties in. So maybe I can hit 2 questions with one here. We partnered with a supplier in the aluminum choice that is a low emission supplier. So in their manufacturing facility for the aluminum, they use hydropower. Using a renewable energy source and the supply chain is -- And choosing suppliers just to be direct to this question from [ Aila ], the choosing suppliers who use renewable energy or have a reduced carbon footprint in their manufacturing process is definitely a priority for us and implement our onboarding new suppliers who use renewable energy, prioritizing suppliers who are using or transitioning or have goals to transition to renewable energy is definitely a focus area for us. One example of that being the aluminum. We piloted it in Concept Luna and then we implemented in our XPS products last year. Then this year, we are bringing that even to a new level with low emissions aluminum and recycled aluminum combined. It's not-- As a product, it's not for sale, but we're using it as a sounding board and an innovation platform to roll that out to other products.

There's another question here, I'll bring up. So it's asked us to sustainable PC purchasing impact small businesses in a manner comparable with larger enterprises. And so I think maybe I'll say a few words, and Megan, maybe you want to take it from there, too. But small businesses are a little different. And I think that if you remember, we were talking about investors a little bit earlier and how investors are preferring and looking for companies with sustainability plans. So I think from a small business point of view that may be looking at finding funding, for example, and that investment would be very significant. Also as we're finding that more and more potential employees as you're hiring more and more are valuing sustainability and appreciate looking for, for example, a PC that they can feel good about. That's another area that I think particularly impacts small businesses. And then I don't know, Meg, if you want to add anything.

I'd say from a small business perspective, you have a smaller hill to climb in theory. The changes that you make have a much bigger impact when you have less of a footprint, less employees. We have 100 -- I think we're like 130,000 employees at Dell right now. That's a lot of computers just for our own company to support our own business and wherever we can reduce is important. So for small businesses, I think you have an opportunity to move the needle a little bit faster. But I also think you have the advantage of watching larger companies tackle these initiatives kind of on your behalf, seeing what's working, what's not working, for example, with sustainable materials. We do a lot of work in material innovation. And when we try something new that might be kind of experimental originally and we test it and it works by Dell giving credence to that material. That makes it easier for other companies to go get, that will probably work for me, and it helps commoditize it so that the price goes down and establishes a supply chain that will make it easier for people to follow large companies. So I think it's a great opportunity for small businesses to make small changes where they can, but also to observe what's happening with larger organizations and adopting those practices for their own businesses to achieve their own goals. And that's me to ask the next one, sorry. All right. So are there ways to track the direct impact that PC purchasing has on my organization sustainability goals. Katie, you can chime in here as well, anybody from the Intel group. I would say generally, it's not really possible right this second to track that. A lot of the numbers that are being used when you're thinking about a product carbon footprint are not the exact number for that product. You need to have the exact configuration, the location where you are, the type of energy you're using. All of those things play into account. And so until that kind of information becomes more automated and it's standardized and regulated across the board, it's difficult for you to use those exact numbers to see your footprint. But it is a good gauge of improvement over time that you can use until those things get worked out. And I think that will be probably the next 3 to 5 years, we'll see more data there. Anything else to add?

Yes. I was just going to tie that into this other question I see about features or aspects that are helping create industry standards. And we're sort of all advocating within cohesive organizations and individually as companies advocating for these sustainability standards to be standardized so that we can all calculate, report and for customers compare across the board without having to really, thoroughly understand the nuances or be swayed or just made by somebody's claims that maybe aren't standardized. And I would say along the lines of Concept Luna, there have been a lot of transitions to repairability standards, and we're supporting those and finding out how our products rank up against that standard and then using that standard to drive improvement. And it's just been nice personally to have a standard to use as a metric for calculating and understanding how much progress we're making and to be on the level plain field. I kind of coupled my answer with the answer to another question.

There was one question I found interesting here. There's a question about how does PC purchasing impact my organization's sustainability goals? Is there a way to tie it or how does it go into the reporting. So I'll comment a few things and then maybe our partners from Dell might want to add on. But normally, a company will report like a corporate social responsibility report, a CSR report. Very often, these are done every year. And so you may have taken some goals, for example, around ways, right, e-waste reduction. And so as you have a more sustainable PC, that, for example, could be waterfalled or recycled. Those would be things that you can show some savings, right, and some advances. Also as you have a system with energy efficiency or like Roberta was talking about the power advances in the vPro platform. Those are some of the things you can talk about as far as energy use. And then lastly, I've seen in many corporate social responsibility reports, you can describe the things that you're doing, so even if they don't line up exactly to a numerical number that you had taken as a target, but you go right about these things that you're doing and explain them, and I think that's beneficial as well. I don't know if anyone would want to add...

That's so true. Yes. I mean kind of to that same question about sustainability reporting standards and metrics. We report on the sustainable materials and how we've increased amounts of that and different work that we're doing. And just like the sustainable material innovations I mentioned, it's not really -- I mean, we can capture how much we're using of those materials, but it's so much more than the sum total weight of what we've purchased. It's about establishing those supply chains, making it easier for those to follow, helping get the pricing down and encouraging innovation by accepting these new ideas and testing them out and sharing those best practices with others. There are some things that just can't be quantified that are so critical to the work that we're doing. But we certainly keep track of that in our reports when we're talking about weight or how we're reducing energy intensity or our packaging, those are all really important too, but the why or those kinds of things are really important as well.

We have time for one last question. Let me see. I think we have covered one more. One last question. And one question while you maybe look for our next one. I have seen one question here about where can I find those lights that were presented today. If you click on the light bulb icon, you will see the handout panel and you will see there a few different assets linked where you can find the information that was presented today.

And that last question that I see is does either company have a goal or an estimate in place when it comes to the percentage of the PC that will be recyclable once it reaches the end of its life span. So Katie, I know you'll want to jump in. But at a high level, we have spot checked several products within our portfolio to see what the total recyclability of a product is. And in often cases, it was over 90% usually around that 94% mark. It's hard to say that because we don't test every single product. But for the most part, sharing same materials and processes that's probably safe to say about 90% or more of our products are recyclable. But it's also essential to consider the recycling programs that are available around the world. Some of them don't have the abilities to break down a device the way that it would need to, to really recover that full 94%. It's important that we continue to make that as easy as possible so that anybody around the world with whatever programs or features they have available to separate products and components that they're able to do so easily. We continue to work towards that goal of getting to as much to 100% recyclability as possible. Anything to add, Katie?

No. I mean you covered it. It's just that with projects like Concept Luna that we're trying to find ways to get to 100%, as much as possible. Desktops are more repairable because they are bigger and they just have the ability to not be moved around as much where notebooks or laptops are smaller, you tend to [indiscernible] or hear things more often with those. So that's why we chose a notebook, a laptop as Concept Luna's product to uncover because that is more challenging on the recyclability front.

Well, I think we are at time. So thank you very much for joining us today for all your excellent questions. Hopefully, we got you most of them. If not, we'll follow up off-line. Please don't forget to fill out the survey both webinar survey that should have popped up on your screen. And if you want to sign up for our newsletter that can be done also by clicking on the life boon the hand out is a very first link. Once again, thank you all so much, and have a wonderful day. Thank you. Bye-bye. Thank you.