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Supply chain environmental management
1st in the IT industry to set a supply chain greenhouse gas emissions reduction goal
Reducing the environmental impact of our supply chain operations is a core part of our Supply Chain Responsibility (SCR) program.
Supply chain greenhouse gas emissions
Our supply chain accounts for 34% of HP’s carbon footprint. To drive improvement in this portion of our footprint, we set the IT industry’s first supply chain GHG emissions reduction goal in 2013: a 20% decrease in first-tier manufacturing and product transportation-related GHG emissions intensity1 by 2020, compared with 2010.
We worked with Climate Savers, World Wildlife Fund (WWF), a program that promotes aggressive private sector action to decrease GHG emissions, to set our industry-leading goal.
Our efforts focus on our first-tier production suppliers and on how we transport our products. We ship more than one million products between manufacturing sites, distribution centers, and customer destinations across 170 countries on a typical day, a practice that offers carbon reduction opportunities such as reducing the size/weight of shipments, decreasing the distance our products travel, and shifting to environmentally friendly transport modes.
To meet our 2020 goal, we are:
- Incentivizing suppliers to set and achieve GHG emissions reduction goals through our new SER scorecard.
- Expanding supplier energy efficiency programs
- Deploying efficiency initiatives for transportation suppliers
- Providing suppliers with support tools and guidance on cutting their emissions.
We have achieved a 7% reduction in GHG emissions intensity since 2010.2
Reduction in first-tier product supplier and product transportation-related GHG emissions intensity
[tonnes CO2e/$ million of HP net revenue, 2010 = 100%]
We also work with first-tier nonproduction suppliers such as travel vendors, telecommunication firms, and staffing companies to report and reduce their carbon footprints. In 2013, 65% of these suppliers reported their GHG emissions, up from 51% in 2012.
Our supply chain accounts for about 18% of our water footprint. With water resources under increasing pressure in many regions, HP encourages suppliers to practice responsible water consumption and discharge. We also provide tools to help them improve their water management practices.
We work with suppliers to help raise awareness of best environmental management practices and to improve these practices where appropriate. In 2013, we identified 15 supplier facilities in water-stressed regions for water management improvements. We piloted an on-site water management improvement program at one site and will expand this coverage in 2014.
We also collaborated with several of our high-spend first-tier suppliers to help ensure their
sub-tier suppliers comply with local environmental laws on water discharge.
In 2013, we began reporting data on supply chain waste generation. More than 50% of our
first-tier production suppliers by spend responded to our request to report the nonhazardous and hazardous waste they generated in 2012.
For more information about our Supply Chain Responsibility program, see our 2013 Living Progress Report: Supply Chain Environmental Impact.
1 HP calculates intensity as its suppliers’ GHG emissions divided by HP’s annual revenue. This method normalizes performance based on business productivity.
2 2012 is the latest year for which data is available.