Climate action for suppliers helps make HP’s supply chain more sustainable
Published a day ago
Proposed by HP Inc.
By James McCall, Director of Sustainability
In 2021, HP announced a set of ambitious climate action targets, including a commitment to be net zero by 2040 – a full decade before the Paris Agreement. We have published our Sustainable Impact Report for over 20 years and have been actively working to reduce our footprint for decades. That’s because it’s in our company’s DNA to strive toward the goal of being the most sustainable and fair technology company in the world.
We have had many successes. Last year, HP was one of 14 companies worldwide, and the only technology company, to receive a prestigious Triple A ranking in the non-profit Carbon Disclosure Project (CDP) climate, water and forest benchmarks – our third consecutive year. And because consumers care about their footprint and want their purchases to have a positive impact, whether they’re buying a new computer, printer or coffee machine, sales related to our sustainability efforts have more than tripled, reaching $3.5 billion in fiscal year 2021. .
But we realize that there is still a long way to go to reach our goal of reducing our absolute greenhouse gas emissions by 50% by 2030, which means minimizing scope 1, 2 and 3 emissions on the our entire value chain.
Scope 1 emissions are from direct HP operations. Scope 2 corresponds to indirect emissions, such as the electricity that powers our operations. Scope 3 covers activities not controlled by HP, such as “upstream” emissions from our supply chain and “downstream” emissions from the use of our products by customers. Together, Scopes 1, 2 and 3 represent the cradle-to-grave emissions of our products, and nearly all of our emissions (99%) are Scope 3, with nearly 70% of those coming from our supply chain and 30% of customers. use.
Addressing Scope 3 Emissions
With our supply chain accounting for more than two-thirds of our emissions, our mandate was clear: to reduce the footprint of our printers, computers and monitors, we needed to reduce the footprint of components, manufacturing, assembly and transportation of these items. . We have hundreds of vendors, so we needed to take a data-driven approach to solving this problem. We looked at our supply chain data and found that our top 30 partners were responsible for nearly 80% of Scope 3 emissions from our directly contracted supplier operations. If we could help these 30 companies become more environmentally friendly, the results would be significant. To help these suppliers achieve the next level of success, we leaned into the philosophy “If you give a man a fish, you feed him for a day. If you teach a man to fish, you feed him for life. Not only would helping suppliers help HP, but it would benefit their bottom line, other customers, the communities where they operate, and the planet as a whole. So we got to work.
Share your knowledge
Because HP emphasized responsible sourcing, human rights, and sustainability as part of its supplier selection, many of our partners already had a solid foundation but needed additional support. Drawing on our real-world learnings at HP, we partnered with them to create environments where they could adopt sustainable, eco-friendly approaches that would be best for their unique businesses.
Over the past two years, HP has tapped leading environmental groups such as CDP and the World Wildlife Fund (WWF) to host virtual workshops for these 30 vendors. Participants learned about energy efficiency, renewable energy, science-based target setting, external reporting, and more.
At the same time, we asked our partners to disclose their footprint via the CDP Supply Chain reporting tools. Nearly 200 suppliers (representing more than 95% of our annual spend) currently do so. This transparency helps HP better understand our footprint and informs the entire technology industry using this supply chain.
tackle the rest
The results have been incredible: 20 of our top 30 suppliers have formally committed to setting meaningful greenhouse gas reduction targets following the Science-Based Targets Initiative. We are also proud that 100% renewable electricity now powers the final assembly of more than 95% of our PC and monitor products worldwide. HP and our supply chain partners are making substantial progress, but more needs to be done. It is vital that we take care of the “upstream” supply chain that adds to our footprint. However, we cannot achieve net zero without also addressing the 30% of our emissions generated during the continued use of our products by our customers. The good news is that customers are actively looking for sustainable choices on the shelf, online, or when shopping for printers, computers, and monitors in business. Our goal is to help them do just that: make the most sustainable home, office or hybrid work setup of the future.
How HP is building a sustainable and ethical supply chain
Hundreds of suppliers make up HP’s supply chain – one of the largest in the IT industry – and the company’s commitment to manufacturing ethical, sustainable and resilient products protects its business and brand, strengthens relationships with its customers and creates opportunities for innovation.
HP is working with IT industry peers to engage the entire supply chain in efforts to eradicate minerals that directly or indirectly support armed groups and to promote responsible sourcing of minerals regardless of their origin. In the European Union, for example, we support the Conflict Minerals Regulation, which emphasizes responsible sourcing from smelters, regardless of the country of origin of the mineral, including conflict zones and at high risk (CAHRA) worldwide.
We summarize supplier performance using sustainability dashboards, designed to motivate suppliers and drive continuous improvement through consistent, comprehensive and actionable feedback. The results contribute to a supplier’s overall sourcing score, which impacts their relationship with HP and ongoing business.
Working with NGO partners and other external organizations, we offer programs designed to help suppliers achieve continuous improvement along their sustainability journey. These programs focus on areas such as worker welfare, rights and responsibilities, and environmental, health and safety (EHS) awareness. In 2021, there was a 114% increase in factory participation in HP’s supply chain sustainability programs.
We partner with logistics providers who have the same environmental mindset as HP to provide solutions to reduce CO2 impact, such as biofuels for ocean freight and electric vehicles for road freight. We are also exploring sustainable aviation fuel for air cargo. Additionally, in the United States, HP is a Gold-level sponsor of Truckers Against Trafficking (TAT), which helps combat human trafficking by educating and mobilizing our network of trucking suppliers, in coordination with the forces of the order.
Our Amplifying Impact Program invites partners to help bring about meaningful change in the global IT industry. Engaging partners will leverage our extensive knowledge, training and resources to assess and work to improve their own sustainability performance. To date, 1,400 channel partners have been trained, educated and empowered through HP Amplify Impact.
Retail / Customer Use
HP Planet Partners is the company’s return and recycling program for computer hardware and printing supplies. HP and LaserJet ink cartridges returned through HP Planet Partners go through a “closed loop” multi-phase recycling process. Recycled plastic from empty cartridges is used to create new Original HP cartridges and other everyday products.
After-sales / End of use
We develop services that aim to prolong the use of products, provide service-based solutions, and recover products and materials at the end of their use. For example, through our HP Device Recovery Service we source used devices safely to give them a new purpose, extend their life and reduce the negative impact on the environment. Customers receive reverse logistics, data sanitization with a certificate, sustainability benefit report, and fair market value of the device.
HP Inc. creates technology that improves the lives of everyone, everywhere. Through our portfolio of printers, computers, mobile devices, solutions and services, we design experiences that amaze. More information about HP (NYSE: HPQ) is available at www.hp.com.
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Sustainable Impact is our commitment to creating positive and lasting change for the planet, its people and our communities. Click here for more information on HP’s sustainability impact initiatives, goals and progress.
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