Living Progress, the framework we adopted last year for thinking about how we do business, has galvanized our citizenship efforts and empowered our people to pursue human, economic, and environmental progress in all of our work. We believe in the talent and creativity of our people to develop and harness technology and services that can stimulate economies, elevate people from poverty and sickness, and help solve the world’s environmental challenges. We achieve this by fully integrating citizenship into our business strategy.

In just the first year since the adoption of Living Progress, we launched and nurtured an extraordinary array of citizenship initiatives across our value chain and in communities around the world. Unprecedented innovation in our products – such as the HP Apollo System and
HP PageWide – enabled significant advances in energy efficiency and computing power. The possibilities for consumers and customers to capitalize on our progress to deliver economic growth and social change
are tremendous.

We believe that goals galvanize actions, and we extended the scope of our greenhouse gas reduction (GHG) targets across all three parts of our value chain, by adding a new goal for HP products and services. We maintained our record for exceptional transparency in reporting, recognized by the highest possible score for disclosure and performance from the CDP. Our policies and standards are the foundation from which our actions flow, and we regularly review and tighten these in response to emerging issues. This year we introduced our Foreign Migrant Worker Standard to provide better protection for this vulnerable group in our supply chain.

Compelling examples of human, economic, and environmental progress across our value chain – as well as advances in the way we govern ourselves as a company – are summarized here:
We motivate and empower suppliers and other stakeholders to enhance labor conditions, support human rights, and improve environmental performance at supplier production facilities. Over the course of the last year, HP:
  • Became the first IT company to require direct employment of foreign migrant workers in our supply chain through the HP Foreign Migrant Worker Standard
  • Conducted 200 audits and assessments, the largest number in our program’s history. Since our first pilot SER audits in 2004, we have conducted or commissioned 1,294 audits and assessments of production and nonproduction supplier facilities around the world
  • Achieved 15% improvement in Social Accountability International’s Social Fingerprint benchmark, placing HP in the top tier of companies assessed
  • Achieved 84% of workers related to HP production at final assembly sites working fewer than 60 hours per week on average, with fewer than 4% working more than 72 hours
    per week
We take an uncompromising stance on human rights in our own operations, and we make compelling arguments to others to do the same. Over the course of the last year, HP was proud to contribute to multi-stakeholder initiatives led by the Global Business Initiative on Human Rights, the Electronic Industry Citizenship Coalition,
Social Accountability International and BSR.
We implement rigorous policies and procedures to safeguard personal data that we hold or process, and we support these priorities through a rigorous program designed to train our employees and engage external stakeholders. By way of example, in 2014, HP helped lead efforts to develop the Unified Ethical Frame for Big Data Analysis, a groundbreaking initiative from the Information Accountability Foundation that has met with unheralded support from regulators, companies, and the privacy community.
We aim to attract, motivate and empower the most talented people in the fast-moving and ultra-competitive information technology (IT) industry with compelling career development opportunities, a supportive work environment, recognition, and rewards. Toward that end, in 2014, we:
  • Achieved 80% participation of all employees worldwide in our Voice of the Workforce survey, which found that overall employee engagement remained strong at 70%
  • Worked with the Rainbow PUSH coalition as well as numerous other experts and organizations to address issues of diversity and inclusion in our industry, and deepened our long-standing commitment to transparency in continuing to publish comprehensive employee diversity data
  • Completed nearly 5.3 million employee training hours, 97% through flexible, virtual sessions or self-paced online courses
  • Held our first Global Day of Service to mark our 75th anniversary, with more than 20,200 HP employees worldwide using their paid volunteer time to support community nonprofits
We invest strategically in partnership with diverse organizations to improve the lives and prospects of individuals and communities worldwide. Two noteworthy initiatives this year included:
  • Partnering with the United Nations Children’s Fund (UNICEF) and the Chinese government to pilot the Maternal and Child Health Management Information System, designed to electronically capture and store health information about every newborn child in China
  • Deploying 29 eHealth Centers to serve villages in rural India, and receiving over 65,000 patient visits through February 2015
We leverage HP’s far-reaching economic impacts to advance a future where jobs are plentiful, economies thrive, and people have the skills and resources they need to contribute to society. In keeping with those efforts, HP:
  • Enabled organizations to protect sensitive data and economic assets against increasingly sophisticated cyber threats. With 10 Security Operations Centers worldwide and more than 5,000 credentialed security professionals on staff, HP Enterprise Security Systems managed 23 billion security events a month in 2014
  • Supported hundreds of thousands of jobs through HP's global supply chain purchasing at supplier sites audited through our Supply Chain Responsibility program
  • Expanded HP Future Cities, which deploys big data collection and analysis, cloud services, mobility, and security, enabling local governments to improve services, reduce public costs, and drive economic growth
We make strategic social investments that enhance the
Economic Progress of individuals and communities worldwide. In 2014, HP and the HP Company Foundation:
  • Launched Matter to a Million, our global employee engagement initiative providing capital to low-income entrepreneurs in partnership with a nonprofit micro-lender. In 2014, each HP employee received a $25 credit from the HP Company Foundation to loan to borrowers to buy essentials such as tools, livestock, and supplies. Almost 120,000 employees used their credits through December 2014. Combined with additional HP Company Foundation contributions, this equaled more than $5.9 million in loans
  • Addressed the underrepresentation of women in technology, committing $1 million over four years in the United States to support the National Center for Women & Information Technology’s Aspirations in Computing Collegiate Program
We continually innovate to reduce the environmental footprint of products and solutions across our portfolio, proactively developing technologies that help to solve some of society’s most serious environmental challenges. This year alone, HP launched:
  • An ambitious research project at HP Labs called The Machine, which is designed to reinvent the basic architecture of computers to enable transformational leaps in performance and energy efficiency
  • The water-cooled HP Apollo 8000 System, which uses 28% less energy than air-cooled servers, saving up to 3,800 tonnes of CO2e annually1
  • FSC-certified HP EcoFFICIENTTM Paper in North America, 25% thinner than typical office paper and fully compatible with the HP printing fleet
  • PageWide Technology business printer HP OfficeJet Enterprise X that offers a step-change in materials use, generating up to 94% less supplies and packaging waste than comparable laser printers2
We provide an extensive network of product take-back programs in
733 countries and territories. This year, we:
  • Added a new closed-loop process for polypropylene to our existing recycling programs, enabling us to produce new inkjet cartridges entirely from material recycled by our customers
  • Incorporated some recycled plastic in over 75% of HP inkjet cartridges shipped for commercial sale by the end of 2014
  • Recovered 157,500 tonnes of hardware (including HP and non-HP products) and supplies. Of this amount, we recovered 4.2 million computer hardware units weighing
    39,100 tonnes for reuse and remarketing and recycled 118,400 tonnes
We relentlessly pursue reductions in greenhouse gas (GHG) emissions, waste, water, and paper consumption in our worldwide operations. Compared to 2013, this year we:
  • Reduced GHG emissions from operations by 5.5%, decreased total waste by 11.5%, and cut water consumption by 3.1%
  • Increased on-site renewable energy capacity by 150% to 5.9 MW. Our solar installations now avoid an estimated 5,700 tonnes of CO2e emissions annually
We lead industry efforts to reduce GHG emissions, waste, and water withdrawal in our supply chain. Among this year’s accomplishments are the following:
  • Achieved an 18% reduction in first-tier manufacturing and product transportation-related GHG emissions intensity from 2010 through 2013
  • Helped production suppliers cut GHG emissions by 600,000 tonnes CO2e (cumulatively) since 2010, toward our goal of a two million tonne reduction between 2010 and 2020
  • Expanded our supplier Energy Efficiency Program in China and Southeast Asia to include 70 new HP supplier sites
We build partnerships to apply the transformative power of technology to help solve environmental challenges. We are particularly proud of our partnership with Conservation International. This partnership, called HP Earth Insights, collects, manages, and analyzes data on species trends at 18 tropical forest protected areas in Asia, Africa, and Latin America creating a first-of-its-kind big data early warning system for threatened species. We are also pleased to note that this year, our employees recorded more than 80,000 hours of time spent volunteering for environmental causes.
We embedded Living Progress thinking across HP, engaging widely with our external partners and stakeholders.
  • CEO Meg Whitman and Chief Progress Officer Gabi Zedlmayer promoted our new strategy and HP’s contributions toward a low-carbon economy at major events including the launch of the CDP 2014 S&P500 report in New York City, during Climate Week
  • HP teams engaged with customers across the globe to meet green procurement requirements amounting to more than $24 billion of existing and potential business revenue
  • Our Corporate Affairs team launched HP’s Living Progress Exchange, where through a blend of face-to-face and virtual engagements, we crowdsourced solutions to human, economic, and environmental challenges from a global community of experts and thought leaders
  • HP became the first global IT company to set GHG emissions reduction goals for all three parts of its value chain, by adding an ambitious products goal
  • HP was honored to receive the highest possible CDP carbon disclosure score
    —100 points—and an A rating on carbon-reduction performance
We adhere to the highest ethical standards by supporting our employees in making the right decisions. While our industry-leading practices and policies in this area are well-known, each year we strive to make even greater progress. This year brought several
notable examples:
  • HP’s Ethics and Compliance team completely revamped its internal communications mechanisms to find new and innovative ways to engage employees and expand HP’s culture of compliance
  • HP’s former Chief Ethics and Compliance Officer, won the title of Chief Compliance Officer of the Year for 2014. This global Women in Compliance Award recognized Ashley Watson’s leadership and achievements, both at HP and within the wider compliance community
We advocate with transparency and integrity to promote laws and regulations that encourage economic growth and innovation in a socially and environmentally responsible manner. In 2014, the HP team:
  • Supported negotiations on trade agreements including the Trans Pacific Partnership, Transatlantic Trade and Investment Agreement, and Trade in Services Agreement, as well as U.S. legislation to renew Trade Promotion Authority
  • Deepened our partnership with the World Economic Forum (WEF) to build upon the Principles for Cyber Resilience, a set of guidelines for organizations of all kinds to contribute to overall levels of cyber risk mitigation
  • Helped secure successful passage of copyright law revisions in Indonesia, improvements to counterfeit legislation in the UAE and increased penalties for breaches of Brazil’s new intellectual property law
Our promise
In October 2014, our Board of Directors announced the decision to separate HP into two companies, Hewlett Packard Enterprise and HP Inc. This strategic step provides each new company with the focus, financial resources, and flexibility to adapt quickly to market and customer dynamics while generating long-term value for shareholders.
This shift also presents a unique opportunity to examine the full breadth of our Living Progress impact worldwide, and to streamline our strategy to optimize return on our citizenship investments. In 2014, we began conducting a strategic review of our Living Progress initiatives to ensure we are maximizing capacity, providing for future growth opportunities, and enabling continued contributions to society.
Building on our 75 year heritage and more than a decade of reporting, citizenship will continue to be integral to both companies. We believe a purpose-driven strategy is essential to spur innovation, improve operational performance, and engage employees.
From the beginning, our founders, Bill Hewlett and Dave Packard, believed their company should create great products and help make the world a better place. This commitment is fully integrated in HP’s strategy and culture, as we work ever harder to create new possibilities for technology to move people, businesses, governments, and society forward. We are Living Progress.

1 HP internal estimate; savings is per HP Apollo 8000 system vs. an air-cooled data center with 3 megawatts of IT. An industry-standard sustainability formula was used to derive CO2e savings in tonnes using the KW-hr savings based on real-world data center analysis.

2 The HP OfficeJet Pro X576dn generates up to 94% less waste per 15,000 pages compared with major in-class competitors’ color laser MFPs <$1,000 USD and color laser printers <$800 USD as of July 2014. Tested by Buyers Lab Inc. and commissioned by HP. The HP OfficeJet Enterprise X585dn generates up to 90% less waste compared with the majority of color laser MFPs ≤$3,000 USD based on market share as reported by IDC as of Q3 2013.

3 As of October 31, 2014.