About supply chain responsibility

Combatting forced labor First in the IT industry to require direct employment of foreign migrant workers in our supply chain. Learn more

HP has one of the industry's most extensive supply chains, spanning six continents, more than 45 countries and territories, and many cultures. Our efforts to support human, economic, and environmental progress goes far beyond our own walls; since 2007, our work to build suppliers’ capacity to address sustainability issues have directly reached over 460,000 people and established ongoing supplier- and peer educator-run programs, impacting a much larger number of workers.

Building a sustainable supply chain

Our Supply Chain Responsibility (SCR) program—founded in 2001—is fundamental to HP Living Progress, the way our people and technology come together to solve society’s toughest challenges. Our supply chain standards enhance the lives of people making our products and reduce environmental impacts across our value chain. They also lead to higher quality products and help us secure our supply lines.

Our commitment to transparently addressing challenges in our supply chain is demonstrated by our annual factory audits and risk-based assessments as well as supplier capability-building programs. Any supplier doing business with us must also meet strict social and environmental requirements.

The SCR program covers a wide range of issues including minimizing labor impacts in supplier factories, sourcing minerals responsibly, employing a diverse range of suppliers, and addressing climate change. Read more on our approach.

Combatting forced labor

HP is committed to ensuring fair, safe and voluntary work for every worker in our supply chain. To further prevent exploitative labor practices and forced labor, HP became the first company in the IT industry to require direct employment of foreign migrant workers in its supply chain through the release of the HP Foreign Migrant Worker Standard.
The industry-leading standard combines this direct employment requirement with rights relating to worker retention of passports and personal documentation and the elimination of worker-paid recruitment fees.

The standard was developed in consultation with Verité, an international nonprofit that promotes safe, fair, and legal working conditions. Verité Chief Executive Officer Dan Viederman explained why the standard is vital to protecting foreign migrant workers, “Verité’s focused assessments and independent research confirm that workers who are employed by labor agents are more at risk of forced labor than those employed directly. HP’s standard requiring direct hiring will remove a key obstacle to ethical treatment of migrant workers. The standard sets a new bar and will likely result in substantial financial benefit to foreign migrant workers in HP’s supply chain, and we hope other companies will adopt similar policies.”

The standard builds on existing efforts to educate suppliers on best practices and is a part of HP’s Supplier Code of Conduct, which already expressly forbids any forced, bonded, indentured, involuntary prison labor, slavery or trafficking of persons. To ensure implementation of this standard, HP will complement its existing Supply Chain Responsibility program with specialized forced labor audits and regular monitoring. Suppliers that do not meet the standard will be required to correct their practices with urgency and may be subject to internal HP escalations, remediation programs and risk discontinuation of business with HP.

Tracking our progress: supply chain responsibility dashboard

In 2013, we made progress across several supply chain focus areas. We became the first IT company to introduce guidance for the responsible management of student and dispatch workers, an emerging challenge in the electronics industry supply chain. We published a complete list of the tantalum, tin, tungsten, and gold (3TG) smelters confirmed in our supply chain - a major step toward responsibly sourcing minerals for our products. We significantly increased the influence of SER in our purchasing decisions, and we launched a GHG emissions reduction goal for key suppliers (see Supply Chain Environmental Impact).

To better track our progress on supply chain issues, and to do so transparently, we introduced a supply chain responsibility data dashboard in 2013. Shown below, this highlights key performance indicators (KPIs) representing significant labor, health and safety, and environmental impacts of our supply chain.

Supply chain responsibility dashboard1
2013
Working hours
Suppliers’ employees working less than 60 hours per week on average2 [%]
83%
Suppliers’ employees receiving at least one day of rest each seven day workweek2 [%]
89%
Student workers
Suppliers in China with student workers representing 20% or less of total employees2 [%]
96%
Core labor rights
Zero-tolerance audit findings related to the ILO Declaration on Fundamental
Principles and Rights at Work: freedom of association; forced, bonded, or indentured labor; underage labor; or discrimination3
1
Critical health and safety issues
Zero-tolerance audit findings related to occupational safety, emergency preparedness, or industrial hygiene4
5
Greenhouse gas emissions
Production supplier Scope 1 and Scope 2 emissions5,6 [tonnes CO2e]
3,000,000

View our full data and goals

For more detail on how we are addressing labor and environmental impacts, see our 2013 Living Progress report.

HP SCR milestones

In 2013, HP introduced a more robust social and environmental responsibility (SER) procurement scorecard, placing greater emphasis on SER performance in the business award process. Suppliers with strong SER performance can now improve their overall scorecard results, which increase their opportunities for new or expanded business. Suppliers with persistently poor SER performance may see a reduction in their scorecard rating and a decrease in the business they are awarded.
Read more

This is our latest in a long line of SCR milestones (see below) as we build a sustainable supply chain.

1992

HP's first supplier questionnaire distributed

HP; global

HP surveyed its global suppliers for the elimination of ozone-depleting substances.

2003

HP's supplier self assessments began

HP; global

Suppliers began self-assessments against our Supplier Code of Conduct requirements. Our target was to assess our top 40 suppliers by the end of the 2003 fiscal year. We achieved that goal.

1993

Procuring Environmentally Responsible Materials (PERM) program implemented

HP; global

PERM preceded HP's supply chain SER program and included HP's first supplier environmental requirements.

2004

Electronic Industry Citizenship Coalition (EICC) formed

Cross industry; global

The EICC fosters responsible management and operational practices in labor, human rights, ethics, the environment, and health and safety across the electronics industry's global supply chain. HP was one of the founding members of the EICC and codeveloped the EICC Code of Conduct. HP has supplemented the EICC Code with additional requirements specific to freedom of association. See HP's EICC Code of Conduct

HP's first supplier audit performed

HP; China, Mexico, Southeast Asia, and Eastern Europe

We completed 45 pilot audits in 2004, against a public goal to complete 30 during the year.

1998

HP's environmental procurement policy and General Specification for the Environment (GSE) released

HP; global

We communicate materials restrictions to our design teams and to our manufacturing suppliers through our GSE.

2005

HP's first supplier SER forum held in China

HP; China

HP held the first SER forum for regional Chinese suppliers to review and discuss HP's SER and Restriction of Hazardous Substances requirements. Around 330 representatives from various suppliers participated.

2000

Supply chain SER program launched

HP; global

We launched our supply chain SER program with a long-term vision to help improve supplier labor management standards, human rights, and environmental performance.

2006

Capability building program launched

HP; global

HP's capability building program commenced with the Focused Improvement Supplier Initiative, a program that provided 30 HP suppliers with the tools and resources to improve SER management within their facilities. Since then, our initiatives have covered multiple issues, including worker health, communication, environment and antidiscrimination. (See Capability building.)

2002

HP's first Global Citizenship Report published

HP; global

HP's first Global Citizenship Report outlined our commitment to improving social and environmental performance over the next decade.

HP Supplier Code of Conduct rolled out

HP; global

HP was the first electronics company to publish an SER Supplier Code of Conduct.

2007

Health and safety capability building efforts launched

Multistakeholder; Mexico

HP joined the HERProject to raise awareness of the general and reproductive health needs of women working in manufacturing. (See Capability building.)

Kicked off capability building efforts focused on raising SER awareness through direct training of supplier

Multistakeholder; China

HP piloted a training program to directly train supplier employees in worker-management communications. The program helped workers better understand their labor rights and provided an independent workers' grievance hotline for communicating concerns about their working environment.

2007

2008

Comprehensive list of HP suppliers disclosed

HP; global

We were the first electronics company to publish a list of our suppliers in our FY07 Global Citizenship Report.

Suppliers' greenhouse gas (GHG) emissions reported

HP; global

HP became the first major IT company to publish its aggregated supply chain GHG emissions, representing 86% of our first-tier suppliers by spend. We increased that percentage to 95% for calendar year 2010.

2008

2009

Working hours key performance indicators (KPIs) program launched

HP; China

HP piloted supplier use of KPIs to help reduce excessive working hours in the supply chain.

First capability building program to reach multiple tiers of HP's supply chain

Multistakeholder; Thailand

HP's year-long program with hard disk drive suppliers in Thailand was the company's first effort to reach multiple tiers of our supply chain. The program raised awareness of HP's EICC Code of Conduct, facilitated best practice sharing among supplier management, and supported their implementation of SER-related management systems.

Supply chain SER program expanded to nonproduction suppliers

HP; global

Originally focused only on production suppliers, HP's supply chain SER program expanded to also include nonproduction suppliers.

2009
Conflict minerals program launched

HP; Africa

HP's conflict minerals program was launched, broadening the scope of our work to focus on tantalum, tin, tungsten, and gold mined in the Democratic Republic of Congo.

2010

First joint Validated Audit Process (VAP) audits performed

Cross industry; global

The VAP is designed to eliminate duplication and "audit fatigue" by providing a common auditing approach for companies in the electronics industry. This allows for audit results to be shared by multiple customers of one supplier.

Environmental sustainability capability building efforts kicked off

Multistakeholder; China

HP became the only information and communication technology company to join Energy Efficiency Partnership (EEP), a year-long pilot program designed to help major suppliers in China reduce energy use, GHG emissions, and costs. Through the EEP, HP expanded supplier capability building efforts to environmental improvement.

2010

2011

First HP nonproduction supplier audit performed

HP; China, Asia Pacific, North America

HP performed our first audits of nonproduction suppliers, auditing three facilities in China, India, and Mexico.

2011

2012

Supplier guidance on appropriate use of student and dispatch workers developed

HP; China

In response to the growing focus on student labor management violations in the electronics industry supply chain, we developed “HP Student and Dispatch Worker Guidance Standard for Supplier Facilities in the People’s Republic of China (PRC)”, an industry-leading initiative.

First independent management system assessments of HP supplier facilities conducted

HP; China, Europe, Latin America

HP commissioned labor rights NGO Social Accountability International (SAI) to use its Social Fingerprint tool to independently assess the social management systems of three key production suppliers from China, Europe, and Latin America.

2012

2013

Industry-first supply chain GHG emissions reduction goal established

HP; global

We set our industry’s first supply chain GHG emissions reduction goal: to achieve a 20% decrease in first-tier manufacturing and product transportation-related GHG emissions intensity* by 2020, compared with 2010. See Supply chain environmental impacts

*HP calculates intensity as its suppliers’ GHG emissions divided by HP’s annual revenue. This method normalizes performance based on business productivity.

First IT company to publish a complete list of 3TG smelters

HP; global

HP published the list of smelters in our supply chain to drive awareness and create a call to action for all users of these metals. See HP’s list of smelters

2012
New SER scorecard for stronger influence on purchasing decisions developed

HP; global

HP introduced a more robust SER procurement scorecard, placing greater emphasis on SER performance in the business award process. Suppliers with strong SER performance can now increase their overall scorecard results, which increases their opportunities for new or expanded business. Suppliers with persistently poor SER performance may see a reduction in their scorecard rating and a decrease in the business they are awarded. See Supply chain responsibility, incentivizing suppliers

Supplier diversity

For more than 40 years, we have provided diverse companies with an equal opportunity to compete for our business. These businesses bring innovation to our supply chain, helping us gain a competitive advantage.

Our Global Supplier Diversity program mentors suppliers to boost their capacity and capabilities. In 2013, we expanded supplier diversity programs in Australia, Canada, China, India, Ireland, and the UK. We also met our goal to increase the number of our strategic suppliers reporting their own diverse spending by 10% over 2012 levels.

We encourage suppliers in these categories to work with us:

  • Aboriginal/indigenous-owned businesses
  • Businesses located in historically underutilized commercial and industrial zones
  • Lesbian, gay, bisexual, and transgender-owned businesses
  • Minority-owned businesses
  • Service-disabled veteran-owned businesses
  • Small businesses
  • Veteran-owned businesses
  • Women-owned businesses

Current and potential suppliers are invited to use our new online registration tool.

1This table includes both company-level and facility-specific data obtained during 2013 relating to HP’s first-tier production suppliers. Findings from our 2013 audits are limited to those facilities audited during the year and are not representative of all facilities in our supply chain.

2Based on production-line workers at final assembly sites participating in the HP KPI program in 2013 and audit results. We continue to expand the list of suppliers in the KPI program based on business risk, country risk, and identified nonconformances.

3Finding relates to underage workers observed at supplier facility. See section.

4Findings relate to emergency preparedness. See section.

5Suppliers represent 95% of HP’s production supplier spend. 2012 is the latest year for which data is available.

6The World Resources Institute defines Scope 1, 2, and 3 GHG emissions in its Greenhouse Gas Protocol; see Greenhouse Gas Protocol.