SCL HUB February 2017

1. Supply Chain Sustainability at HP
Dr Kirstie McIntyre / February, 2017
1

2. Facing the challenges of this century
2.3Number of Earths we’ll need by 2050
• Global population is on pace to hit 9.4 billion by 2050
• 74 million young people worldwide don’t have access to educational resources
• Global middle class is expected to reach 3.6 billion by 2030
• In the next 20+ years, energy use will rise 53%, GHG emissions will rise by 43%,
and demand for water will be 40% higher than supply

3. Sustainability
at HP
Enabling
everyone
Engineered
with integrity
Full circle
innovation
Ensuring all products
and operations are
based on the highest
ethical standards
Improving performance,
reducing waste, and
moving towards a
circular economy
Making amazing
solutions that enable
people to do amazing
things

4. HP Supply Chain
Operations
Every touch point
transforms the lives of our
customers, partners and
communities.

5. 5
Every 60 seconds
102
PCs
60
Printers
885
Consumables

6. Every day
1000
Tons on Surface
3
747s
540
TEUs

7. 63
Distribution
Centers
84
Manufacturing
Locations
We are where you are

8. And, we can go where you go
108
Origin Airports
119
Countries
150
Destination Airports

9. 2016 Gartner Supply Chain Top 25Chain Top 25
9
1 Unilever
2 McDonalds
3 Amazon
4 Intel
5 H&M
6 Inditex
7 Cisco
8 Samsung
9 Coca-Cola
10 Nestle
11 Nike
12 Starbucks
13 Colgate Palmolive
14 3M
15 PepsiCo
16 Walmart
17 HP Inc.
18 Schneider Electric
19 L'Oréal
20 BASF
21 Johnson & Johnson
22 BMW
23 Glaxo Smith Cline
24 Kimberly Clark
25 Lenovo
2016 Gartner Supply Chain Top 25

10. HP business model
Supply chain
Six continents, 100’s of production suppliers,
10,000’s of nonproduction suppliers
Products and solutions
Printers, personal systems, solutions
Operations
Offices and manufacturing facilities
worldwide, nearly 50,000 employees
Value chain
Suppliers and their workers
Consumers, SMB, Enterprise,
Government, and Communities
Our employeesStakeholders
Printing
Personal
systems
Extraction, manufacturing,
transportation
Facilities, transportation fleet,
R&D centers
Products
• Notebooks and tablets
• Desktops
• Workstations
• Displays
• Accessories
Products
• Printers
• Ink and toner
• Accessories
Solutions
• Mobility
• Security
• Software
• Services
Sustainability is integrated throughout our business model

11. Sustainability is core to our business
“Sustainability is not only
the right thing to do but it
also positively impacts
both the top and bottom
lines.”
Dion Weisler
HP Securities Analyst Meeting 2016
“Sustainability and Diversity is core to our strategy”
Dion Weisler
Global Channel Partner Conference 2016

12. Hewlett-Packard Company’s FY15 global emissions impact
and HP Inc.’s goals set in FY16
Products and solutions (53%)Supply chain (41%) Operations (6%)
Capital
goods
Materials
extraction through
manufacturing
TransportUpstream
energy
production
Facilities Transportation
fleet
Commercial
air travel
Employee
commuting
Product
use
Product end
of life
Buildings
leased to
others
Investments
16,600,000
400,000
24,100,000
300,000 1,500,000 1,321,200 110,900 200,000 900,000 De
minimis
De
minimis
De
minimis
Achieve zero deforestation associated with HP
paper and paper-based product packaging
Will set new goal to reduce supply chain GHG
emissions
Reduce the GHG emissions intensity of our
product portfolio by 25% by 2020, compared
to 2010
Committed to 100% renewable electricity in global
operations with 40% by 2020
Will set science-based target for Scope 1 and
Scope 2 emissions from operations

13. Engineered
with integrity
Uncompromising
ethical behavior
A strong focus on what we put
into products ‒ and what we don’t
Empowering workers, respecting
privacy, security, and human
rights

14. Targeted programs focus on women’s
health, financial literacy, and work/life
balance
Training empowers more than 46,000
workers to take ownership and make
decisions about their health
HERfinance program increases
worker confidence in responsible
spending, reducing debt, and financial
planning
Improving
health and well
being

15. HP continues to work to ensure metals
used in our supply chain are not
associated with conflict in the DRC
Production suppliers required to adopt
conflict minerals policies and report
out on smelters they use
Collaboration with businesses, NGOs,
governments, and suppliers advances
use of responsibly sourced minerals
92% of smelters are conflict free or on
the way to becoming conflict free
Conflict minerals

16. Mining
responsibly
We prohibit sourcing of materials
from mines linked to armed conflict in
the Democratic Republic of the
Congo (DRC) and surrounding
countries
HP is part of the Conflict Free
Sourcing Initiative to certify smelters
far down the supply chain
Our first tier suppliers transparently
report smelter information to us every
year

17. HP in action: supply chain responsibility
To require direct
employment of foreign
migrant workers in
supply chain
84%
78,000
92%
HP progress
Of smelters
are conflict-free or on
the way to becoming
conflict-free
Factory workers were
reached during the year
through training and
empowerment programs
Suppliers in
SERscorecard program showed
effective or exceptional
performance
First IT
company

18. Combatting human trafficking
“Workers in global supply chains deserve fair treatment. They should not
have to pay to work.” – Stuart Pann, Chief Supply Chain Officer, HP Inc.
combatting forced labor
in the supply chain by
Know the Chain
Ranked
top IT
company
Identified high risk
suppliers to carry out
targeted foreign migrant
worker assessments
Launched anti-human
trafficking awareness
training module for HP
recruiters
Founding member of the
Leadership Group for
Responsible Recruitment

19. Full circle
innovation
Developing material
and energy-efficient
products
Reducing cost, waste,
and environmental impact
Providing closed
loop recycling

20. Uses at least 98% less energy
while printing than lasers in its
class
Reduces carbon footprint of
printing up to 52% per printer
Generates up to 95% less
supplies and packaging waste
than comparable laser printers
HP PageWide
technology

21. Propelling a more
circular economy
Closed-loop processes
improve product end-of-life options
Service-based models
reduce product footprints
3D printing will dematerialize and
democratize how the world creates
and delivers goods and services

22. Customers can choose a monthly service
plan based on pages printed
Replacement cartridges automatically
delivered when printer runs low on ink
Used cartridges returned directly to HP’s
closed loop recycling program
Enables customers to save up to 50% on ink
Generates up to 67% less waste per printed
page
HP Instant Ink

23. Photo courtesy of Thread
Providing landfill workers in
Haiti with educational, training,
and healthcare opportunities
Purchasing recycled PET plastic
to manufacture new HP print
cartridges
Creating more sustainable jobs
and driving a more inclusive
circular economy by opening up
new markets for collected plastic
Advancing responsible
recycling in Haiti

24. HP in action
Sustainability is
core to our vision of
making life better…
Commits US$1M toward
education and employment
opportunities to aid in global
refugee crisis
to publish a complete
carbon and water
footprint
Commits to achieving100%
renewable electricity and zero
deforestation in global operations
to publish supply chain
responsibility code of conduct
and industry-leading standards
Named to DJSI World Index,
FSTE4Good, and CDP
Climate A lists
Recycles 1 million bottles per
day for new HP inkjet cartridges
1st 1st

25. HP: Recognized as one of the world’s most sustainable companies
Named to “Climate A List” in
CDP 2016 Global Climate
Change Report and 2016 Global
Supply Chain Report; and
placed on 2016 “Forest A List”
Listed on both World Index
(2012-2016) and North America
Index (2011-2016)
Received Excellence
Award for fifth time
Included on the FTSE4Good
Index since 2003
Honored with Tribute
Award for volunteering and
service to communities
Recognized as a top U.S.
company for contributions
to communities in 2013,
2014, and 2016
Named one of Canada’s Greenest
Employers for ninth year in a row
Received 100% on Corporate
Equality Index for 2003-2015
HP Brazil recognized for
sustainability efforts in
2013, 2014, and 2016
Rated among the top technology
companies for corporate social
responsibility efforts
Recognized as the industry
leader for commitment to
address human trafficking and
forced labor in supply chain
Earned 17th spot on Gartner
Supply Chain Top 25 list with
perfect 10 for efforts in
corporate social responsibility

26. “The betterment of our
society is not a job to be left
to a few. It is a
responsibility to be shared
by all.”
- Dave Packard

27. Take the next steps
Learn more and get tools to reduce your impact and grow your business
• View HP’s Sustainability website and report
www.hp.com/sustainability
• Get the HP Sustainable IT Purchasing Guidance whitepaper
http://h20195.www2.hp.com/V2/GetPDF.aspx/c03844101.pdf
• Use the HP Carbon Footprint Calculators
http://www.hp.com/large/cfc/index.html