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About supply chain responsibility
1st IT company to introduce guidance for the treatment of student and dispatch workers
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.
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
Principles and Rights at Work: freedom of association; forced, bonded, or indentured labor; underage labor; or discrimination3
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.
This is our latest in a long line of SCR milestones (see below) as we build a sustainable supply chain.
HP's first supplier questionnaire distributed
HP surveyed its global suppliers for the elimination of ozone-depleting substances.
HP's supplier self assessments began
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.
Procuring Environmentally Responsible Materials (PERM) program implemented
PERM preceded HP's supply chain SER program and included HP's first supplier environmental requirements.
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.
HP's environmental procurement policy and General Specification for the Environment (GSE) released
We communicate materials restrictions to our design teams and to our manufacturing suppliers through our GSE.
HP's first supplier SER forum held in 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.
Supply chain SER program launched
We launched our supply chain SER program with a long-term vision to help improve supplier labor management standards, human rights, and environmental performance.
Capability building program launched
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.)
HP's first Global Citizenship Report published
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 was the first electronics company to publish an SER Supplier Code of Conduct.
Health and safety capability building efforts launched
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
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.
Comprehensive list of HP suppliers disclosed
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 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.
Working hours key performance indicators (KPIs) program launched
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
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
Originally focused only on production suppliers, HP's supply chain SER program expanded to also include nonproduction suppliers.
Conflict minerals program launched
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.
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
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.
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.
Supplier guidance on appropriate use of student and dispatch workers developed
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.
Industry-first supply chain GHG emissions reduction goal established
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 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
New SER scorecard for stronger influence on purchasing decisions developed
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
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.