September 23, 2008
In IT Industry First, HP Releases Supply Chain Emissions Data
Promoting transparency in environmental standards, HP (NYSE:HPQ) today announced emissions data associated with its largest suppliers, representing more than 80 percent of the company's costs for the materials, manufacturing and assembly of its products worldwide.
The release of the data, the first by a major technology company, delivers on a specific goal published in the HP 2007 Global Citizenship Report (GCR).
"HP's continued leadership in supply chain transparency will result in positive operational changes in environmental practices and will encourage other companies to do more to advance supply chain responsibility," said Tony Prophet, senior vice president, Worldwide Supply Chain Operations, Personal Systems Group, HP. "Technology innovation will continue to improve the IT industry's environmental footprint and positively impact the broader global economy."
In 2007, the aggregated carbon dioxide equivalent (CO2e) emissions associated with more than 80 percent of HP's first-tier manufacturing expenditures totaled approximately 3.5 million metric tons.(1) As the world's largest IT company, HP operates the largest supply chain in the technology industry; it will use this data to incorporate energy efficiency into how it manages its first-tier suppliers. In addition, HP will propagate this reporting to the rest of its supply chain to determine further emissions reductions as it incorporates emissions reporting into lower tiers.
HP has reported its own emissions since 2003, began reporting its product transportation emissions in 2007, and now extends emissions reporting to its supply chain. Additionally, the company's top suppliers must comply with the Electronic Industry Code of Conduct (EICC) (http://www.eicc.info/)and meet HP's stringent social and environmental responsibility expectations worldwide.
"By releasing its aggregated supply chain emissions data, HP demonstrated its commitment to being an environmental leader," said Jason Clay, senior vice president, World Wildlife Fund - United States. "HP is setting an example for other companies to follow in using its influence to address climate change beyond its products and operations."
Future supply chain standards
HP's reporting on CO2e emissions in its supply chain represents an initial step in a long-term program. The company is working to establish better standardization of tools and methodologies to facilitate consistent and reliable reporting among suppliers and enable a robust process that could potentially be implemented throughout HP's supply chain. Other steps HP is implementing include:
-- HP is working with the EICC to build a calculation tool to ensure consistency among suppliers' self-reported emissions accounting;
-- As a member of the Carbon Disclosure Project (http://www.cdproject.net) Supply Chain Leadership Collaboration initiative, HP has piloted a carbon disclosure survey among its suppliers; and
-- HP will participate in the Greenhouse Gas (GHG) Protocol Supply Chain Initiative (http://www.ghgprotocol.org/), which will develop a methodology for quantifying and reporting product life cycle and supply chain GHG emissions.
Leadership in supply chain responsibility
HP has a legacy of supply chain social and environmental leadership, including the following achievements:
-- In 2002, HP established a social and environmental responsibility policy for its supply chain and extended the HP Supplier Code of Conduct to include its supply base;
-- HP helped lead the development of the industry-wide EICC, which was introduced in 2004;
-- HP has conducted more than 500 audits with first- and second-tier suppliers worldwide;
-- In April 2008, HP became the first major technology company to publish a list of its largest suppliers, advancing supply chain transparency standards across the industry;
-- In August 2008, HP became the first company to qualify for the U.S. Environmental Protection Agency (EPA) SmartWay (http://www.epa.gov/otaq/smartway/) product packaging logo, certifying that its surface transportation carrier network reduces transportation-related emissions; and
-- HP trains thousands of supplier managers and workers annually on environmental protection, health, safety and labor practices.
More information on HP's supply chain social and environmental responsibility leadership is available at www.hp.com/hpinfo/globalcitizenship/gcreport/supplychain.html.
HP and the environment
For decades HP has been an environmental leader, driving company stewardship through its holistic design for environment strategy. HP influences industry action through its long-standing commitment to maintain supply chain responsibility, sustain energy efficient operations, reduce its climate impact and offer product reuse and recycling options. HP also makes it easier for customers to recognize environmentally preferable features through HP Eco Solutions, a program that helps customers identify products and services designed with the environment in mind. More information is available at www.hp.com/environment.
HP, the world's largest technology company, provides printing and personal computing products and IT services, software and solutions that simplify the technology experience for consumers and businesses. HP completed its acquisition of EDS on Aug. 26, 2008. More information about HP is available at http://www.hp.com/.
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(1) Aggregated CO2e emissions represent the sum of HP-allocated suppliers' emissions and are calculated by factoring the total supplier emissions by the percentage of HP dollar volume to the suppliers' total revenue.
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