Strengthening our communities and enabling
the sustainable development of society.
Supply chain responsibility
Where are HP products manufactured?
In HP’s value chain, the sustainable development of society begins with the suppliers who make and deliver our products and services. These companies employ hundreds of thousands of people, spanning six contents and more than 45 countries and territories.
Our complex and dynamic supply chain also underpins our business success. Business and consumer demand for electronics products and services is evolving rapidly, and we are there with an adaptive supply chain to support delivery of world-class products and services that meet and exceed customer expectations. Our Supply Chain Responsibility program helps ensure the continuity of our supply lines and quality of our products by identifying and addressing supply chain risks. Learn more about our approach (PDF, 249KB).
Building a sustainable supply chain
Our program—founded in 2001—is fundamental to HP Sustainability, the way our people and technology come together to solve society’s toughest challenges. It begins with industry leading policies, standards, and practices founded on our commitment to transparency and desire to support workers, tackle environmental impacts, and benefit HP and our customers.
Any supplier doing business with us must meet strict social and environmental responsibility requirements. Extensive risk sensing keeps us up to date with SER issues, region by region and supplier by supplier, and informs our program design. We monitor supplier performance and collaborate with nongovernmental organizations (NGOs), training groups, and other stakeholders to deliver capability-building programs. We also engage both workers and management at our supplier factories in order to permanently enhance working conditions, from working hours and safety to anti-discrimination and employee grievance mechanisms.
As HP moves into new markets, we on-board new suppliers, ensuring they understand our SER standards and management system and meet prescribed performance levels for new suppliers. Learn more about our approach.
Beyond production suppliers, our program extends to non-production suppliers, and deeper in our supply chain to include sub-tier suppliers and the responsible sourcing of minerals.
Our central aim is to improve the lives of workers who are the focus of our supplier capability-building programs.
We invest in worker skills development and empower workers to improve SER performance.
We are committed to protecting all workers in our supply chain, and we recognize that certain worker groups need special protection. Suppliers in some countries have turned to students, dispatch workers, young workers (16- and 17-year olds where legally permitted), and foreign migrant workers—groups which have distinct vulnerabilities to potential abuse. We responded by introducing enhanced standards, more focused monitoring, targeted capability building, and key performance indicator (KPI) tracking to provide additional protection for these groups.
The HP Student and Dispatch Worker Standard for Supplier Facilities in the People’s Republic of China, the first such standard in our industry, addresses the significant increase in the use of student and dispatch workers in China. It requires that all student work is voluntary, local regulations on student workers are met, only limited numbers of student workers are used for HP production (below 20% of the total workforce), and students are employed in roles that further their education.
We monitor progress through KPI tracking of student, dispatch, and young workers, which Chinese suppliers report to us monthly. This data shows that in 2014 94% of suppliers maintained student worker levels below 20% of the total workforce related to HP production, a threshold we set the previous year. This tracking is separate from auditing and provides more frequent oversight of supplier progress.
We also undertake specific, onsite student worker assessments and require corrective actions for any nonconformances. In 2013 and 2014, we assessed 90% of high-risk supplier sites in China where we identified the use of student workers. Of the two remaining sites, one was assessed in 2015, and the other was identified late in 2014 as using student workers and is scheduled for assessment. Of nonconformances with our student worker requirements found through 2014, 74% have been resolved—with the remaining cases under supplier corrective action in close collaboration with our procurement teams.
Foreign migrant workers
In 2014, we became the first IT company to require direct employment of foreign migrant workers in our supply chain through the HP Foreign Migrant Worker Standard. In addition to requiring direct employment, the standard reinforced the rights of workers to retain their passports and personal documentation and prohibited worker-paid recruitment fees. We developed the new standard in consultation with Verité, an international nonprofit that promotes safe, fair, and legal working conditions.
The standard marks a major step forward in the protection of foreign migrant workers in our supply chain and we are now focused on ensuring that the new protections are realized. Specialized forced labor assessments and regular monitoring will confirm supplier conformance. Suppliers that do not meet our requirements must correct their practices with urgency or risk losing our business. Learn more.
Supply chain responsibility dashboard
Our dashboard – first published in 2013 – is a high-level snapshot of our supplier s’ SER performance. It highlights a range of indicators representing significant labor, health and safety, and environmental impacts in our supply chain.
Working hoursSuppliers’ employees working less than 60 hours per week on average2 [%]
|Suppliers’ employees receiving at least one day of rest each seven day workweek2 [%]||89||91|
Student workersSuppliers in China with student workers representing 20% or less of total employees2 [%]
Core labor rightsZero-tolerance audit findings related to the ILO Declaration on Fundamental Principles and Rights at Work: freedom of association; forced, bonded, or indentured labor; child labor; or discrimination
Critical health and safety issuesZero-tolerance audit findings related to occupational safety, emergency preparedness, or industrial hygiene3
Greenhouse gas emissionsProduction supplier Scope 1 and Scope 2 emissions4,5,6 [tonnes CO2e]
HP supply chain SER milestones
Total number of workers and managers reached by HP’s
capability building programs (cumulative)
Our supply chain milestones
HP's first supplier questionnaire distributed
HP surveyed its global suppliers for the elimination of ozone-depleting substances.
Procuring Environmentally Responsible Materials (PERM) program implemented
PERM preceded HP's supply chain SER program and included HP's first supplier environmental requirements.
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.
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.
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.
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.
Electronic Industry Citizenship Coalition (EICC) formed
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.
HP's first supplier audit performed
We completed 45 pilot audits in 2004, against a public goal to complete 30 during the year.
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.
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.
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 in China 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
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 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 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 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 in our HP 2013 Living Progress Report.
Industry-leading foreign migrant worker standard released
HP took a major step forward in preventing exploitative labor practices and forced labor by becoming the first company in the IT industry to require direct employment of foreign migrant workers in its supply chain. The standard also addresses worker retention of critical documentation such as passports, and prohibits worker-paid recruitment fees. See FMW policy.
On-boarding SER assessments for new suppliers
HP more than doubled the number of on-boarding SER assessments at new suppliers. These assessments are conducted before placing business at important new suppliers or facilities, giving the opportunity to identify critical issues and motivate suppliers to mitigate findings. Early SER engagement also sets the stage for productive future relationships.
Interactive map of suppliers
Expanding on HP’s industry-first publication of suppliers in 2007, we shared both the location of final assembly suppliers, as well as the number of reported hourly employees dedicated to the production of HP products at these sites. This is communicated through an interactive map which improves transparency by allowing easy navigation to information on supplier location, number of workers, product types, and supplier sustainability reporting. See Supply chain responsibility.
For 45 years, HP’s Global Supplier Diversity Office has encouraged and supported small and diverse businesses to compete for our business. We have supplier diversity programs and partnerships in Australia, Canada, China, South Africa, the UK and Ireland, and the United States. In 2014, we introduced an automated supplier diversity locator tool to further improve our inclusive sourcing process in the United States. Also, the number of HP’s strategic suppliers reporting their own diverse supplier spend increased by 19%, achieving our 2014 goal.
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.
Improving the environment performance of our customers, operations and supply chain
Acting with integrity and respect for human rights around the world
All figures contained on this page are reflective of Hewlett-Packard Company prior to the company’s November 1, 2015 separation. HP Inc. metrics will be introduced to the site on an on-going basis as they become available.
1. This table includes both company-level and facility-specific data obtained during 2013 and 2014 relating to HP’s first-tier production suppliers. Findings from our 2013 and 2014 audits are limited to those facilities audited during the year and are not representative of all facilities in our supply chain.
2. Based on production-line workers at final assembly and select commodity sites participating in the HP KPI program and audit results. We continue to expand the list of suppliers in the KPI program based on business risk, country risk, and identified nonconformances.
3. 2014 findings relate to emergency preparedness and industrial hygiene. See Audit results on page 35 of the HP 2014 LPR Audit results section.
4. Suppliers represent 95% of HP’s production supplier spend. 2012 is the latest year for which data is available for use in the 2013 reporting year. 2013 is the latest year for which data is available for use in the 2014 reporting year.
5. The World Resources Institute defines Scope 1, 2, and 3 GHG emissions in its Greenhouse Gas Protocol; see Greenhouse Gas Protocol.
6. 2013 figure is revised from previous reporting. It now to includes revised estimated data from one of our suppliers and extrapolation to 100% of first-tier production suppliers. 2014 figure is also extrapolated.