2019 Corporate Social Responsibility Report - Xerox

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2019 CorporateSocial ResponsibilityReport

Table of Contents2019 Progress Summary4EnvironmentInnovation for Sustainable Products and Services6Pioneering a Circular Economy10Responsible Operations13Preserving Clean Air and Water16Preventing and Managing Waste19GovernanceLeadership22Xerox Policies and Standards24Engaging with Stakeholders25Doing Good Business29SocietyXerox Philanthropy38Evolving the Workplace43Health, Wellness, and Safety46Employee Rights50Putting Clients First52Supplier Relations56About This Report632

Letter from the CEOHow does Xerox define sustainability and what role does Xerox playin creating a more sustainable world? Our annual Corporate SocialResponsibility Report feels like the right place to definitivelyanswer these questions. We define sustainability as meetingtoday’s needs without compromising the future’s. This applies toall facets of our business—from engineering environmentallyresponsible products to creating equal opportunities for ouremployees and for those in our communities.For the past 113 years, Xerox has been committed to creatingvalue for business and society. We’ve played an important role inprogressing our society globally—from taking a stance duringthe U.S. race riots of the 1960s to enabling freedom ofinformation and pioneering the “circular economy” long beforesuch a term existed. There are few companies that can point tonumerous instances where their values and acts have had suchsignificant impacts on society.Today we continue to improve society globally in ways big andsmall. A great example of this is the work we did recently withthe Bangladeshi government to digitize and process theirNational Household Census results from January 2017 toFebruary 2019, so they can better deliver resources topopulations in need.We also help make the world greener in unexpected ways.Xerox’s Intelligent Workplace Services enables companies toreduce their reliance on paper and incentivizes clients to reforestthe planet when they do use it. As part of our PrintReleafpartnership, our clients can offset the impact of their paper byplanting trees in geographic areas of need such as the Amazonand Madagascar. In little more than one year, we’ve helpedoffset the impact of 1 billion printed pages and have reforestedsome of the world’s most precious ecosystems with more than100,000 trees.Our commitment extends far beyond developing sustainableproducts, software and services. It’s also about how we operatearound the world.At Xerox, we believe in continuously improving, and weapply this mentality to ensuring we are always findingways to improve the sustainability of our operations.That’s why we established a new corporate-wide, sciencebased energy goal to reduce our global energyconsumption and greenhouse gas emissions by 25% by2025.As a U.S. Department of Energy Better Plants Challengepartner, we also pledged to improve our energyperformance by 25% over a 10-year period across all ourU.S. manufacturing operations.We are proud of the progress we’ve made and are 100%committed to raising the bar on our ourselves in theimportant quest of building and maintaining a healthyand balanced world that meets society’s evolving needs.Regards,John VisentinVice Chairman and Chief Executive OfficerXerox Holdings Corporation3

2019 Progress SummaryIn 2018, Xerox introduced a Corporate Social ResponsibilityProgress Summary, a snap shot of data, accomplishments andgoals relating to our work within the environment, social andgovernance categories. The summary, found on our CorporateSocial Responsibility webpage, is updated frequently. The goalis to make available a current and evergreen summary of work,goals and progress to date for stakeholders.View our Corporate Social Responsibility Progress Summary.4

Environment5

Innovation for SustainableProducts and ServicesFrom being the first to introduce power-down features to being thefirst OEM to introduce a global PrintReleaf program, we push theboundaries of what’s possible.The industry has taken note. Xerox recently earned spots onForbes’ JUST 100, Barron’s 100 Most Sustainable Companies,and Mediacorp Canada’s Greenest Employers lists.Since the 1990s, Xerox has been focused on “Design forSustainability” because we recognize that our products haveenvironmental, social, and economic effects throughout theirlife cycle. Design for Sustainability consists of criteria for eachphase of the corporation’s product design and delivery process.Design teams are required to respond to each criterion beforebeing permitted to pass to the next phase of the process. Wedeveloped the criteria based on global standards, markettrends, and quantitative analysis.Our requirements for minimizing toxic materials govern ourproduct design and materials selection. We have reengineeredor eliminated processes to dramatically reduce the use of toxicmaterials and heavy metals and have made substantialprogress in eliminating the use of mercury. Mercury-containinglamps that scan images and backlight user displays are beingphased out as alternatives become available.Design for Sustainability has become a way of business forXerox and extends far beyond adhering to processes. Hereare a few ways we are engineering solutions that are makinga more sustainable world:DRIVING A PAPERLESS ENVIRONMENTWITH INTELLIGENT WORKPLACE SERVICESA Fortune 100 company tapped Xerox to manage itsworldwide print infrastructure to support its “paperless”initiative. With our Intelligent Workplace Services, a newoffering that transcends Managed Print Services, we arepairing digital alternatives, print authentication, and analyticsalong with gamification techniques to help them change theircompany’s print behaviors to ultimately reduce their relianceon paper as well as helping them reduce their impact on theenvironment.REFORESTING SOME OF THE WORLD’SMOST TREASURED ECOSY STEMSFor clients leveraging Intelligent Workplace Services, weprovide them with an opportunity to opt in to our PrintReleafpartnership, which is akin to a carbon offset program. Weleverage paper usage reporting that equates the number oftrees needed to reforest that usage on an equivalent basis ingeographic areas of need. Xerox helps clients select themanaged forestry projects where their trees will be planted inaddition to tracking and reporting on their direct reforestationimpact.Since launching this program in 2018, Xerox and our clientshave reforested more than one hundred thousand trees acrossthe world, from the Amazon to Madagascar, offsetting morethan one billion pages. With one tree absorbing more than oneton of carbon dioxide in its lifetime, this program thus far willoffset nearly two hundred million pounds of carbon dioxide.100K trees planted through PrintReleaf6

MAKING BANGLADESH MO RE SUSTAINABLEWITH DIGITAL CITIZEN SERVICESPIONEERING I oT SENSORS TO ADVANCETHE WORLD’S INFRASTRUCTUREXerox worked with the Bangladesh Bureau of Statistics totransform their Household Census Project. With our Digital CitizenServices, we enabled them to collect, digitize and process datafrom more than thirty-seven million filled Census Forms in threesub-projects of six months each. By digitizing this once paperladen process, the government can now easily extract data points,trends, and analysis to target and improve the lives of theircitizens.Sensors designed for the Internet of Things (IoT) havepotential to transform the world, enabling real-time visibilityand optimization of physical systems. PARC, Xerox’s researchand development company, is pioneering ways IoT sensors canhelp us build a better working world. These sensors can allowcompanies to monitor assets and determine maintenanceneeds, reducing the need for costly physical site inspections.We are currently piloting this technology with companies suchas Con Edison in Queens, New York, and with VicTrack, ownerof the Victorian Government’s rail transport land in Australia.With infrastructure deteriorating across significant regions ofthe world, PARC is looking at ways to scale this technologyand use it on other critical assets.PROTECTING PEOPLE WI TH INDUSTRY-LEADINGSECURITYSecurity is a top priority for us, and we know it is for our clients’business too. That’s why every Xerox ConnectKey Technologyenabled devices are armed with our holistic four- point approachto security, ensuring comprehensive, all- encompassing protectionfor all system components and points of vulnerability. Acomprehensive set of capabilities and integrated technologiesfrom security leaders, such as McAfee and Cisco , help preventand detect malicious attacks, proliferation of malware, and misuseof unauthorized access to printers.100% OF NEW 2018 PRO DUCTS EARNEDENERGY STAR STATUSIn 2018, 100 percent of all our new eligible product introductionsachieved ENERGY STAR. This continued success in cutting thepower consumption of our laser-based printing products hasbeen achieved by adjustments in the fuser design, changes tothe properties of the toner, and more efficient electronic controlsand performance of the xerographic system.Partnering with industry leaders100 percent of all our new eligible productintroductions achieved ENERGY STAR.We measure our performance against international standardswith certifications, such as Common Criteria and FIPS 140-2, toensure our devices are trusted in even the most secureenvironments. In 2018, Xerox was also the first to receive securityauthorization from the Federal Risk and AuthorizationManagement Program (FedRAMP) for cloud-based MPS.Only MPS provider with authorizationThe ENERGY STAR program introduces progressively morestringent requirements over time. Xerox and other industrymembers worked together in conjunction with the EPA todevelop the latest set of criteria.The most recent revision of the ENERGY STAR ImagingEquipment 3.0 criteria went into effect October 11, 2019.While the standard is challenging to meet, our goalremains to have 100 percent of our newly eligible productsachieve this label. In addition, many existing productswere reengineered to be more energy efficient, meeting3.0 criteria. These energy requirements serve as thefoundation for other eco-labels, such as EPEAT and BlueAngel, and show our ongoing commitment to reduceproduct energy consumption. Learn more about theENERGY STAR program and view current Xerox eco-labelregistered products at www.energystar.gov.7

FOCUSED ON ELIMINATING WASTEWITH PACKAGING AND DISTRIBUTIONPackaging and distribution are integral parts of our productcommercialization process. We strive to eliminate, reduce, reuse,and recycle packaging whenever feasible. Product teams activelyseek out more environmentally responsible packaging alternatives.We also require packaging suppliers to comply with bans andrestrictions for a variety of chemicals. We document ourexpectations in our Environment, Health and SafetyRequirements for Packaging Standard—EHS-710 and our GeneralPackaging Standard—88P311. Our commercial equipment isdesigned and tested extensively to be shipped with minimalrequired packaging. Eliminating or reducing packaging whereverfeasible conserves natural resources and decreases fuel use fordistribution. Doing so represents a sustainability win for businessand the environment.MANAGING PRODUCTS THROUGHTHE FULL LIFE CYCLEXerox integrates life cycle thinking into our product and servicedevelopment activities as well as our innovation activities. LifecycleAssessments (LCAs) are a means of technically evaluating theenvironmental and health impact of a product’s materials,manufacturing, distribution, use, and end-of-life. We conduct fullLCAs in accordance with the appropriate ISO standards todetermine where in the product life cycle the largest environmentalimpacts arise and to compare products with a significantdifference in technology. Full peer-reviewed LCAs have beenperformed on our AltaLink and VersaLink devices and many of ourother laser technology devices (WorkCentre 5325/30/35,WorkCentre C60/C70, and Phaser 6510). These LCAs directlycontribute to our achieving the Electronic Products EnvironmentalAssessment Tool (EPEAT) Gold certification for theseconfigurations. We encourage our clients to learn more about howtheir printing behavior affects the overall carbon footprint of theirorganization from a life cycle perspective.EPEAT: A FUNDAMENTAL PART OF OUR“DESIGN FOR SUSTAIN ABILITY” APPROACHEPEAT is composed of criteria spanning corporate and productrequirements (50 requirements for imaging equipment). EPEATregistration is a rigorous process, entailing both a third-party deskreview for initial certification and random product verificationaudits once certified.EPEAT product criteria combine comprehensive requirementsfor design, production, energy use, and recycling with ongoingindependent verification of manufacturer claims. EPEAT criteriareflect several categories of environmental attributes that spanthe life cycle of electronic products: material selection, designfor end-of-life, product longevity/life extension, energyconservation, end-of-life management, corporate performance,packaging, consumables, and indoor air quality. Xeroxcontinues to support EPEAT initiatives, aids in the future successof the program, and supports the program’s global expansion.In 2018, we expanded our registration of products to Canada,the UK, France, Germany, Netherlands, Belgium, Luxembourg,Switzerland, Norway, Sweden, Finland, and Denmark, makingXerox the first imaging equipment manufacturer to registerEPEAT products in Europe. Since 2014, Xerox has committed tolaunching all new eligible office products with EPEAT Silver orGold certification. For example, all new VersaLink and AltaLinkproducts are EPEAT Silver or Gold, as we continue to design ourproducts with the environment in mind. Xerox is the onlycompany to claim all eight EPEAT corporate optional criteriain the U.S. Learn more about the EPEAT program and view currentXerox eco-label registered products.EHS&S POLICIES AND STANDARDSGOVERN PRODUCT DESIGNOur product design is governed by global regulations and XeroxCorporate Environment, Health, Safety & Sustainability (EHS&S)Policy, which states that Xerox will: Comply with applicable environment, health, and safety laws;rules; regulations; and Xerox standards; Take appropriate measures to protect the environmentand health and safety of our employees, clients, suppliers,and neighbors from unacceptable risk; Take appropriate measures to prevent workplace injuries andillnesses and provide employees with a safe and healthy workenvironment; Assess environment, health, and safety effects before startinga new activity or project; Comprehend environment, health, and safety effects in thedesign and acquisition of products and services;8

Eliminate unacceptable risks from facilities, products, services,and processes; Strive for continual improvement of its environmentalmanagement system and to conserve natural resources,eliminate the use of toxic and hazardous materials, preventpollution, recover, reuse, and recycle; Address climate change by reducing the carbon footprint of ouroperations, products, and services; andPUTTING HEALTH, SAFE TY, AND COMPLIANCE F IRSTClient health and safety as well as compliance with globalregulations are key considerations in Xerox innovation. OurEnvironment Health, Safety, and Sustainability team isengaged with our researchers and product development teamsfrom the earliest product conception throughout thedevelopment process. See Putting Clients First—Safety ofProducts and Services for more details. Require suppliers to adhere to applicable environment, health,and safety laws; rules; regulations; and Xerox Standards.The Xerox EHS&S Standards provide consistency and guidancefor meeting the policies. Our product standards encompass thefollowing: energy efficiency, chemical management, packaging,parts reuse and recycling, electrical and mechanical safety,ergonomics, electromagnetic emissions, noise, fire resistance,and materials safety. Xerox business teams and our EHS&Sorganization review our products at each stage of thedevelopment process for conformance with environmental,health, and safety standards, which is a requirement for theintroduction of any product. All Xerox standards ensure ourproducts have the appropriate labels and information neededto meet all safety and environmental label requirements tokeep our clients appropriately informed. All products meetrequired industry labeling standards for each market.Xerox has long incorporated environmental and safetyconsiderations into product design. Internal processes ensurethat product design teams are informed about regulatory andmarket-driven changes affected by product design. Our productdevelopment and delivery processes include environmentalevaluations of materials and parts selected, products in use,and end-of-life. These processes ensure that product designteams can incorporate timely environmental metrics andproduct safety considerations into new products indevelopment.We solicit feedback from clients and other stakeholders andtake a forward-looking view of global trends in technology,regulations, and eco-labels.9

Pioneering a Circular EconomyBeginning with our first commercial product, the Xerox 914,we introduced electronics remanufacturing long before the term“circular economy” became popular. Our vision was to transformXerox manufacturing, operations, offices, and facilities into wastefree workplaces. We had this same vision for our clients’ workplaces:a world where electronics and supplies at the end of their usefullife would come full circle to become the raw materials oftomorrow. In this model, quality and performance are not tobe compromised, precious natural resources are conserved, andwaste becomes an obsolete term. Six decades later, we continueto demonstrate that a circular economy delivers environmental,economic, and societal benefits.Our aim is to design products, packaging, and supplies thatmake efficient use of resources, minimize waste, reuse materialwhere feasible, and recycle what cannot be reused. To meetthis commitment, we developed several collection and wastereduction programs, as well as design and business modelsin line with the key elements of a circular economy.WASTE AS A RESOURCEThe Xerox Green World Alliance (GWA) provides a collectionand reuse/recycling program for spent consumables. The XeroxProduct Takeback and Recycling Program efficiently managesequipment at end-of-life, thereby diverting material fromlandfills and reducing the demand for raw materials. Collectedtoner from spent cartridges is used for color additives as wellas returned to Xerox for reprocessing.design teams in all phases to innovate for the circular economy.Our packaging design goes beyond regulatory requirements byprioritizing a “reduce, reuse, recycle” strategy.ADAPTIVE BUSINESS MODELXerox has an adaptive, leased product business model throughwhich we can guarantee nearly 100 percent of the equipment isreturned for optimized end-of-life processing. This model alsoensures that our design process prioritizes equipment longevityand reuse and allows for ultimate recycling.Nearly 100 percent of leased Xeroxequipment is returned for optimizedend-of-life processing.DESIGN FOR THE FUTUR EThis approach ensures that our products and packaging placed onthe market today can ultimately be reused, fit end-of-lifemanagement processes, and meet client needs in the future. Ourcomprehensive Design for the Sustainability approach engagesCONSUMABLES TAKEBACK AND RECYCLINGOur GWA initiative, as noted, is a collection and reuse/recyclingprogram for clients for their used imaging supplies. GWA is centralto our commitment to waste-free products. More than10

thirty-five countries currently participate in the Xerox GWA.Worldwide, our clients returned more than 6.1 million cartridges,toner containers, and other used supply items in 2018, equating tofour thousand metric tons, down roughly six hundred metric tonsfrom 2017. The decrease is based on a decline in volume of clientreturns in the U.S. market. In 2018, Xerox received the NonProduct Award from the US EPA’s Sustainable MaterialsManagement Program for its Green World Alliance program’ssignificant positive sustainability impact.Returned products are sorted, and items suitable forremanufacturing are cleaned, inspected. and thenremanufactured. Remanufactured consumables, containing anaverage of 90 percent reused/recycled parts, are built andtested to the same performance specifications as newproducts. Items that are not suitable for remanufacturing arerecycled or recovered through energy from waste. Recycledwaste toner and toner reclaimed from manufacturing thatqualifies for reuse may account for 25 percent of the weight ofnew toner without compromising toner functionality. Reusingwaste/reclaimed toner saves several million dollars in rawmaterial costs each year. Of the toner that cannot bereclaimed 75 percent is recycled by our consumables recyclingpartner, while the remaining volume is utilized at energy fromwaste facilities to generate steam and electricity.Total Waste Diverted from Landfills fromReturned Cartridges, Bottles and Waste TonerThousands of Metric Tons5.04.54.0EQUIPMENT AND PARTS TAKEBACK AND RECYCLI NGWe have developed a comprehensive end-of-life producttakeback system, which processes assets through remanufacture,refurbish, parts reuse, recycling, or broker sales, each of whichfully supports our waste-free initiatives. Our reverse logisticscenter is certified to R2, demonstrating our commitment toresponsible management of end-of-life equipment andconsumables.We design our machines with high durability and reuse capabilityto facilitate many product life cycles. During the active phase ofa product, all returned equipment and spare parts are evaluatedfor reuse opportunities throughout the supply chain. All parts andequipment that are not destined for reuse have specificguidelines to facilitate easy and consistent recycling. Xeroxenables equipment reuse according to the following principles: Reuse of complete end item: This approach requires theleast reprocessing, transportation, and energy usage. Remanufacturing or conversion into a newer-generationproduct or part: Product families are designed with a highlevel of commonality to enable maximum reuse. This allowsus to remanufacture to “as new” performance specificationswhile reusing 70 to 90 percent of the machine componentsby weight without degradation of quality or performance. Used equipment: Equipment returns are evaluated forpotential reuse. Based on the condition and marketdemands, equipment may be put through an extendedmaintenance/ verification process to return it to a highstandard and then be redeployed. Approximately 50 percentof machines returned in the U.S. are given new life by beingsold as used or sent for remanufacturing of some sort. Reuse of major modules, subcomponents, and parts forspares or manufacturing: Many of our machines that haveoutlived their useful life are stripped of usable parts andcomponents before the scrap/reclaim process. Used spareparts returned from the field are also included in this reusestream. Xerox has continually been increasing the number ofcomponents that are reused in upstream and downstreamprocesses after the original machine has been designated 018 Material recycling: After the processes noted above havebeen followed, any remaining portion of a machine isstripped of any recyclable material (e.g., plastics, copperwire) and material requiring special disposal services, such asprinted wire boards, batteries, and lamps. The remainder ofthe machine is then sent to an industrial reclaim facility.11

Post-consumer recycled plastic content: All Xerox productscontain from 0 percent to 5 percent post-consumer recycledplastic content.Xerox participates in several European Union member stateWaste Electrical and Electronic Equipment (WEEE) programs;equipment collected and recycled through these programs isnot included in our recycling data. In geographies where Xeroxexercises direct control over the end-of-life management ofequipment, return rates are high. In 2018, 8,600 metric tons ofequipment and parts-related waste were diverted from landfillsto recycling at our U.S. Reverse Logistics Center. Globally, thatvolume rises to 9,400 metric tons.Total Waste Diverted from Landfillsfrom Returned Equipment and Parts E-Waste: While Xerox has long been committed to responsibleend-of-life management of equipment, the proliferation ofe-waste regulations has created a need for many separateprograms in different countries and even states. We carefullymanage suppliers that provide recycling and waste disposalservices to ensure that our clients’ returned equipment isprotected from data breaches and improper disposal. Xeroxdoes not allow its vendors to send electronic scrap todeveloping nations for processing. In addition, we strive to workonly with electronic waste recyclers that have implementedvoluntary programs certified by accredited organizations,including Sustainable Electronics Recycling International’s(SERI) Responsible Recycling (R2) standard or the Basal ActionNetwork’s e-Stewards standard. This past year marks the thirdyear in a row that Xerox has received the U.S. EPA SustainableMaterials Management GOLD Award for its responsibleend-of-life processes.10.0Thousands of Metric 12

Responsible OperationsReducing our Company-wide Environmental FootprintWith goals to reduce environmental effects across our valuechain, we invest in solutions that can conserve natural resourcesand lower the energy intensity of our operations.A few examples include: Energy management and equipment upgrades, such as utilizing“free cooling” systems in place of mechanical cooling for chilledwater systems and installing a new air compressor andcompressed air system; and Efficiency-promoting initiatives, including optimizing operationof pumping and air handler systems.Data in this section associated with air emissions, releases, wateruse, and hazardous and nonhazardous waste represents totalquantities for our manufacturing, research, development,warehouses, and equipment recovery/recycle operations. Datain this section associated with energy and greenhouse gas (GHG)emissions represent total quantities for our manufacturing,research, development, warehouses, and equipmentrecovery/recycle operations, offices, and data centers. Normalizedvalues for 2014 forward have been calculated using Xeroxrevenue from continuing operations. Unless otherwise noted,all numbers represent worldwide totals (excluding XeroxBusiness Solutions locations) and are reported in generallyaccepted international units.The data presented is based on actual measurements to the extentpossible. Where direct measurements are not available, we employengineering calculations or estimates. We continue to strive toincrease the accuracy of the data we report.All of our major manufacturing sites and some of ouradministrative offices employ an Environmental ManagementSystem (EMS) that conforms to ISO 14001:2015.The system: Establishes a framework to ensure compliance with regulationsand Xerox standards; Identifies environmental effects considering a life cycleperspective and sets objectives and performance targets; Identifies, manages, and addresses risks and opportunitiesrelated to environmental aspects, compliance obligations,other issues or other needs, and expectations of interestedparties; Strives for continual improvement by conserving naturalresources, eliminating the use of toxic and hazardousmaterials, preventing pollution, and recovering, reusing, andrecycling materials; Ensures integration between day-to-day business activities andenvironmental planning and program management; and Encourages innovative engineering solutions, creativepartnerships, and employee involvement.Our major manufacturing operations have been certified toISO 14001 since 1997. Our major worldwide technologyequipment distribution centers achieved certification in 2010.Quarterly status meetings and use of an environmentalperformance scorecard provide visibility, best practice sharing, andinnovation across our operations.ENERGY GOAL 2025In 2003, we made a public commitment to reduce GHGemissions—our carbon footprint—by joining the U.S.Environmental Protection Agency (EPA) Climate Leaders programand launching our own internal Energy Challenge 2012.13

This 10-year initiative set a goal to reduce GHG emissionsacross all company operations by 10 percent by 2012. We metthis target six years ahead of schedule and set increasinglystringent targets as each previous target was met. By 2016,our cumulative GHG reduction totaled 302,000 tons of carbondioxide equivalents (CO2e).In 2018, we established a new corporate-wide, science-basedenergy goal to reduce energy consumption and GHG emissions by25 percent by 2025 (from a 2016 baseline).As a U.S. Department of Energy Better Plants Challengepartner, we pledged to improve energy performance by 25percent over a 10-year period across all our U.S. manufacturingoperations in 2018.Energy Consumption12500007270676875MWh / Millions 014MWhEnergy and GHG totals are associated with fuel consumption bycompany-owned fleet and natural gas/electricity consumption infacilities. Vendor invoices from utility and fuel providers are thepreferred source of data; when unavailable, estimates have beenused.In accordance with the Greenhouse Gas Protocol and to makeannual data comparable, we adjust the energy data each year asa result of the opening and closing of facilities and use of moreappropriate emission factors that are available. Revenue is fromcontinuing operations.GREENHOUSE GA

goals relating to our work within the environment, social and governance categories. The summary, found on our Corporate Social Responsibility webpage, is updated frequently. The goal is to make available a current and evergreen summary of work, goals and progress to date for stakeholders. View our Corporate Social Responsibility Progress .

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