Executive summary

The power of creative thinking and technology can transform lives, energize businesses, and empower communities. With that in mind, we have launched a framework for thinking about how we do business called HP Living Progress. To us, it means creating a better future for everyone through our actions and innovations.

Living Progress is a wholly integrated approach to business which simultaneously drives human, economic, and environmental progress. It’s how we advance the overall health and well-being of people, help businesses and economies thrive, and work to strengthen the environment as we grow. It’s how we create a vibrant and sustainable business model by solving some of the world’s biggest problems.

Below are our most recent accomplishments in carrying out this most important initiative:
Human Progress

Advancing the overall health and well-being of people
We have a well-earned and longstanding reputation as a global leader in corporate respect for human rights, advancing human progress in our own operations and influencing others in our value chain to do the same.
  • Further integrated respect for human rights into our business operations by conducting a comprehensive company-wide risk assessment
  • Provided leadership in multi-stakeholder forums in the United States and Abu Dhabi to advance greater respect for human rights in business around the world
  • Held our first company-wide celebration of International Human Rights Day to drive greater awareness of human trafficking and other human rights concerns among employees
We work with suppliers and other stakeholders to enhance labor conditions, support human rights, and improve environmental performance at supplier production facilities.
  • Mandated better protection of foreign migrant workers through an industry leading supply chain standard
  • Advanced responsible mineral sourcing, driving smelters in our supply chain toward conflict-free certification and supported initiatives to establish viable sources of
    conflict-free minerals
  • Developed a more robust procurement scorecard with stronger incentives tied to social and environmental performance
We implement rigorous policies and procedures to safeguard personal data that we hold or process. Employee privacy training and external engagement supplement our privacy standards.
  • Responded to more than 7,000 inquiries to our Privacy Office
  • More than 99% of employees completed privacy training
  • Played a leadership role in the global dialogue on privacy by presenting our positions on data and privacy regulations to 22 countries and regional blocs
We hire and develop talented people who allow us to lead in the
fast-moving IT industry. We offer them career development opportunities, a supportive work environment, recognition and rewards in return for their contributions.
  • 54,000 employees across 84 countries took part in our wellness challenges, up 37% compared to 2012
  • Nearly 42,000 employees volunteered 1.6 million hours, and their workplace skills, to help take on tough global challenges
  • Five cloud-enabled eHealth Centers, which provide access to high-quality medical care in rural India, have received over 28,000 patient visits as of April 2014
Economic Progress

Helping businesses and economies thrive
As one of the world’s largest companies, we contribute to economies globally through the value we create for our customers and our direct financial transactions.
  • Our products and solutions continued to make our customers more efficient and profitable worldwide
  • Our direct economic transactions during the year included $112 billion net revenue, purchases from suppliers worldwide, compensation and benefits to approximately 317,500 employees globally1, $1.391 billion net cash income taxes, and $2.6 billion returned to shareholders in the form of dividends and share repurchases, among others
We promote long-term positive impact and collaborative partnerships by investing in opportunities that help businesses and economies thrive.
  • Contributed $135.3 million to social investment initiatives
  • Established a five-year, global partnership between Kiva and the Hewlett-Packard Company Foundation to provide every HP employee worldwide with a $25 credit to make a loan to a Kiva borrower
  • More than 1 million people have gained access to essential business and IT skills training through HP LIFE e-Learning, a free, cloud-based platform providing high-quality, educational resources for entrepreneurs
Environmental Progress

Making the environment stronger as we grow
By combining the expertise of our people, our innovative technology portfolio, and collaborative partnerships, we are working to create solutions that reduce environmental impact and expand opportunities.
  • Published our complete water footprint for the first time in 2014
  • Reduced our carbon footprint by 16% from 2012
We have routinely worked to reduce the environmental footprint of products and solutions across our portfolio – from single-user personal computing devices and printers to enterprise servers, storage equipment, and data centers. With the arrival of Living Progress, e are placing even greater emphasis on the development of technologies which are themselves the solutions to some of society’s most vexing environmental challenges.
  • Announced goal to reduce the emissions intensity of its product portfolio2 by 40% by 2020 compared to 2010 levels3, becoming only global IT company to set carbon reduction goals for entire value chain
  • Designed more than 50% of total LEED® Platinum- and LEED Gold-certified new construction data centers worldwide, as of December 20134
  • Continued to offer customers innovations such as the HP Moonshot system which consumes up to 89% less energy, uses 80% less space, and costs 77% less5 than a traditional server environment
  • Conducted research on new silicon photonic interconnects that use light to transmit information instead of electrons which promises to reduce the energy needed to process data by one to two orders of magnitude, while improving the speed and economics of high-performance computing
We provide product take-back programs in 70 countries and territories and collaborate with partners to ensure responsible movement and disposal of electronic waste.
  • Recovered a total of 134,500 tonnes of hardware and supplies
  • Opened the first large-scale recycling facility in East Africa and the first take-back system for electronic waste in Kenya
We work to reduce greenhouse gas (GHG) emissions, waste, paper and water consumption, and use of ozone-depleting substances in our worldwide operations.
  • Decreased total energy use from our operations by 95 million kWh, compared with 2012
  • Reduced GHG emissions from HP operations by 79,700 tonnes CO2e, compared with 2012
  • Decreased total waste generated from HP operations by 37%, compared with 2012
  • Reduced total water consumed in HP operations by 10%, compared with 2012
We work to reduce GHG emissions, waste, and water withdrawal in our supply chain.
  • Set the industry’s first supply chain GHG emissions intensity reduction goal – a 20% decrease in first-tier manufacturing and product transportation-related GHG emissions intensity6 by 2020, compared to 2010
  • Piloted a program to assist suppliers to understand risks in water-stressed regions
  • Created a unique early warning system for threatened species using the power of big data solutions, in collaboration with Conservation International
HP Living Progress became a framework for thinking about how we do business. We believe it’s essential that our efforts as global corporate citizens do not stand to the side of our business activities, as it’s not enough for them to be merely aligned with our business. To have full impact, our business and our citizenship must become one. Living Progress has oriented us decidedly in that direction, with the ultimate goal of making our work on global citizenship inextricably intertwined with our corporate strategy.
  • Launched our Living Progress vision and have begun to communicate our holistic approach via internal and external forums
  • Appointed a Chief Progress Officer to ensure Living Progress is embodied throughout the company and applied to our actions
We adhere to the highest ethical standards. Our Ethics and Compliance program requires employees, business partners and suppliers worldwide to use only lawful and ethical business practices.
  • Launched an Ethics Champion program, recognizing ethical leadership decisions made by our employees, especially in challenging situations
We advocate with transparency and integrity to promote laws and regulations that encourage economic growth and innovation in a socially and environmentally responsible manner.
  • Engaged with governments and multilateral organizations such as the Organisation for Economic Co-operation and Development (OECD) to provide our expertise and perspective on a range of public policy issues including technology policy, trade policy and tax reform

1As of October 31, 2013.

2Emissions intensity of the HP product portfolio refers to tonnes CO2e/net revenue arising from use of high-volume product lines, including notebooks, tablets, desktops, mobile computing devices and workstations; inkjet and LaserJet printers; and HP servers, including industry-standard servers, HP Moonshot and HP Apollo.

3Expressed as emissions generated per unit of output. The unit of output was determined per product line as follows: printer output represents carbon emissions from printing one A4 image; each personal system represents one unit of output; for servers, each unit of output equals a task performed by the system, as defined by industry standards.

4Based on U.S. Green Building Council and HP data.

5When HP DL360p servers deployed for Dedicated Hosting are replaced by HP ProLiant Moonshot servers. Cost estimates include acquisition costs for server and networking, power costs, power distribution and cooling costs, and infrastructure costs for the datacenter floor space over three years.

6HP calculates intensity as its suppliers’ GHG emissions attributable to their business with HP divided by HP’s annual revenue. This method normalizes performance based on business productivity.