SGI works to reduce the amount of resources used and decrease waste generated during daily operations. This program is called source reduction and waste minimization. The following materials are routinely collected and recycled at all SGI facilities:

Containers and packaging materials, including foam, bubble wrap, plastic, corrugated Kraft and wood received from SGI's suppliers are reused for in-house materials handling and local supplier shipments, or are returned to suppliers for reuse.

SGI maintains a polyurethane and polyethylene foam recycling program. Each quarter, over one ton of used foam (from primarily supplier packaging) is used to make carpet padding and seat cushions, instead of being disposed in a landfill.

SGI's remarketed group recycles to conserve resources and minimize the environmental impact of returned products. Materials that cannot be remanufactured or reconditioned are sent to one of SGI's scrap recovery vendors to be reused in secondary materials and components markets. For instance:

• Precious metals from discarded circuit boards are resmelted and reused
• Nonproprietary electronic components are often extracted and sold for reuse
• Steel, copper, aluminum, and other metals are extracted and reused
• Skins, logo plastics, and non-remarketable compounds are chipped and burned for energy recovery
• Monitors are taken apart and components are recycled

These practices conserve resources, reduce the environmental impact of new resource extraction, keep waste out of the environment, and earn extra money for the company.

The volume of scrap recovered from SGI’s Midwest operations increased 28% from 2005 to 2006.