- HP announces a new goal to reduce first-tier production supplier and product transportation-related GHG emissions intensity 10 percent by 2025, compared to 20151
- In addition, HP has set a new goal to double factory participation in supply chain sustainability programs by 2025, compared to 2015, to increase both the number of suppliers that participate in its programs and the depth of their engagement
- HP’s new goal to develop the skills and improve the well-being of 500,000 supplier factory workers by 2025, compared to 2015, follows HP’s longstanding commitment to the well-being of the workers in its supply chain, with a focus on vulnerable groups including women, student and foreign migrant workers
- These goals, as well as progress through HP’s fiscal year 2016, are outlined in the just released HP 2016 Sustainability Report
PALO ALTO, Calif., June 14, 2017 — HP Inc. (NYSE: HPQ) today released its 2016 Sustainability Report, outlining new efforts to shrink its global footprint through a 10 percent decrease in supply chain Scope 3 greenhouse gas (GHG) emissions intensity by 2025 1. Concurrently, the company announced two supply chain responsibility goals to: 1) double factory participation in supply chain sustainability programs; and 2) develop the skills and improve the well-being of 500,000 supplier factory workers by 2025. All three goals use 2015 as a baseline. These targets exemplify HP’s ongoing efforts to reinvent ethical, sustainable, resilient supply chains—across the IT industry and beyond. See the full report at www.hp.com/sustainability.
“As part of our ongoing dedication to environmental and social impact, we are reducing our carbon footprint and empowering workers across our global supply chain,” said Stuart Pann, Chief Supply Chain Officer at HP. “We are committing to further engage our suppliers as essential partners to embed sustainability across every aspect of our business. Together, we can drive changes that benefit our business, suppliers and customers, as well as factory workers and the environment.”
HP’s 2016 Sustainability Report shares specific details surrounding its progress to-date, and new goals that support its commitment to addressing climate change and improving worker well-being. Highlights from this year’s report include:
A Goal to Reduce Supply Chain GHG Intensity by 10 percent
Following several other recently announced HP initiatives to take climate action across its global footprint, HP’s new supply chain targets seek to reduce GHG Intensity by engaging directly with suppliers to meet stringent management and transparency requirements, set goals for their operations, and improve collaboration and ongoing performance.
In renewing its participation in World Wildlife Fund’s (WWF) Climate Savers Program, HP worked with WWF specialists to develop a science-based target for Scope 1 and Scope 2 emissions and a new supply chain reduction goal for Scope 3 emissions. WWF supports those goals, confirming the rigor of HP’s goal-setting process. Together, HP’s goals for Scope 1, 2 and 3 emissions align with the criteria of the Science Based Targets initiative, from which HP is pursuing target validation.
Previously announced HP climate change goals include:
- In 2017, set a science-based target to cut GHGs from its global operations 25 percent by 2025, compared to 2015;
- A 2016 goal to reduce the GHG emissions intensity of its product portfolio by 25 percent by 2020, compared to 2010 2.
- In 2016, committed to source 100 percent renewable electricity in its global operations with an interim goal of 40 percent renewable by 2020.
“We welcome the strides HP is making and its leadership in designing programs that achieve ambitious emission reduction targets,” said Matt Banks, climate and business manager at WWF. “As a Climate Savers partner, HP’s smart value chain reduction strategies have the ability to drive measurable reductions in its greenhouse gas emissions, while demonstrating to other companies the importance of scaling up to achieve a 2025 target.”
Elevating environmental and social performance through worker empowerment
For HP, promoting environmental and social sustainability and supply chain performance go hand-in-hand. HP’s new goal to double factory participation in supply chain sustainability programs by 2025 is designed to increase both the number of suppliers that participate in our programs and the depth of their engagement. This will help HP better measure, report and motivate enhanced supplier labor, health and safety, and environmental performance, and create a lasting improvement in the factories.
HP seeks to protect and empower all workers who make its products, both on and beyond the factory floor. Working with non-profit, government and business community partners, HP conducts capability building and well-being programs that support workers’ safety, health and financial security and develop their leadership skills. In 2016, 45,700 supplier factory workers participated in 14 worker skills development and well-being projects in five countries, bringing the total to 123,700 since the beginning of 2015.
Building on this progress, HP’s new goal to develop the skills and improve the well-being of 500,000 supplier factory workers by 2025 follows HP’s longstanding commitment to the well-being of the workers in its supply chain, with a focus on vulnerable groups including women, student and foreign migrant workers.
“For more than a decade, HP has demonstrated industry leadership by developing innovative ways to strengthen labor, health and safety, and environmental conditions in our supplier factories,” said Pann. “Our products are engineered with high regard for every person who has a hand in bringing them to market. We work proactively to protect and empower workers, source minerals responsibly, promote inclusion and transparency and drive lasting improvements across our supplier base.”
In 2016, HP placed first in the Know the Chain inaugural benchmark of ICT companies’ efforts to protect workers in supply chains from forced labor. HP also was recognized in both 2016 and 2017 on the Gartner Supply Chain Top 25 list of supply chain leaders, scoring 10 out of 10 points for Corporate Social Responsibility.
Deepening a commitment to the circular economy
HP is reinventing the way its products are designed, manufactured, used and recovered as the company shifts its business model and operations toward a more materials efficient, circular and low-carbon economy. Earlier this year, HP deepened its commitment to transparency by publicly disclosing the names and locations of its recycling vendors. HP has recycled more than 1.6 million tonnes of hardware and supplies to-date – including 102,800 tonnes of hardware and 17,100 tonnes of ink and toner cartridges in 2016 alone – and is committed to achieving (from 2016) a volume of 1.2 million tonnes by 2025. Recycling is just one component of the circular economy. Learn more about how HP leverages innovative technologies and new business models to lessen environmental impact here.
- Reduce first-tier production supplier and product transportation-related GHG emissions intensity 10% by 2025, compared to 2015. Intensity is calculated as the portion of first-tier product transportation suppliers' reported GHG emissions attributable to HP divided by HP's annual revenue. This method normalizes performance based on business productivity. Intensity is reported as a three-year rolling average to decrease the impact of variance year over year and highlight longer-term trends. Production supplier GHG emissions include Scope 1 and Scope 2.
- HP product GHG emissions intensity measures GHG emissions during product lifetime use per unit for personal systems and per printed page for printers based on anticipated usage. These values are then weighted by contribution of personal systems and printing products to overall revenue. These emissions represent more than 99% of HP product units shipped each year, including notebooks, tablets, desktops, thin clients, displays, mobile computing devices, and workstations; and HP inkjet, LaserJet, DesignJet, Indigo and Scitex printers, PageWide presses and scanners. Through 2016, progress against this goal equalled a 19% decrease.