In 2013, 78 percent of our licensed products were delivered electronically, eliminating the need for product packaging and reducing our overall environmental footprint. By moving toward cloud-based products and electronic document services, we have de-materialized our supply chain by almost 90%.
For the remaining 22 percent of products that are manufactured, we work with global third-party companies to print packaging, replicate discs, and assemble our products. Although we don’t own these operations, we have a tremendous opportunity to positively impact environmental sustainability efforts by encouraging other companies to reduce shipping materials, optimize transportation logistics, and comply with environmental regulations.
We ensure manufacturing waste is significantly reduced through effective inventory management, resulting in an overall product scrap rate of less than 1 percent of total packaged product revenue, well below the industry average. For the remainder of our scrap waste, we’ve worked with suppliers to establish recycling programs in all geographic locations where recycling infrastructures are accessible.
Employees actively engage in recycling and composting programs at our facilities worldwide where possible. As a result, we have achieved a 97% waste diversion rate. Paper, cardboard, plastic, glass, aluminum cans, printer toner cartridges, kitchen grease and batteries are recycled, and food waste, landscaping waste, paper utensils, and food containers are composted.
In 2010 we selected SIMS Recycling to be our global e-waste collection and management partner. Together we’re developing processes to recycle and dispose of our technology-related hardware, such as outdated computers, servers, and printers.