Strengthening our communities and enabling
the sustainable development of society.
Supply chain responsibility
Where are HP products manufactured?
From PCs to printers and presses, HP’s unique products require a vast network of suppliers spanning six continents and many tens of thousands of companies. Our aim is to use this enormous supply chain influence to provide economic opportunities and drive lasting improvements for everyone, everywhere.
The following principles encompass the three levels of impact we strive to achieve: local, community, and global.
Building a sustainable supply chain
We focus our efforts where we can have most impact. With direct suppliers, including those making HP products, we invest in programs that empower and protect workers, and improve factories conditions and management systems. We set SER requirements for suppliers, and measure performance through our SER supplier scorecard, key performance indicators, and audits that monitor on-site compliance with our expectations.
Standing up for workers
HP is strongly committed to empowering and protecting the hundreds of thousands of people, in more than 45 countries and territories, employed in our supply chain. Improving workers’ lives is our ultimate objective, and we pay particular attention to vulnerable groups including foreign migrant workers, students, and women.
Foreign migrant workers
Foreign migrant workers are especially at risk for exploitative labor practices and forced labor. To ensure their rights are respected, HP became the first IT company to set requirements for suppliers on how they recruit, select, hire, and manage such workers. Our Foreign Migrant Worker Standard requires direct employment, prohibits worker-paid recruitment fees, and insists that workers are able to keep their personal documents. An assessment program launched in late 2015 to enforce the standard identified 16 high-risk supplier sites, all of which will be audited in 2016. HP recently shared our Foreign Migrant Worker Supplier Guidance document to the EICC as a resource for companies seeking additional support on best practices in this area.
Women and families
Extensive research demonstrates that when women are healthy, educated, and can participate in the economy, there are positive ripple effects for children, families, and communities. We help to empower women through capability building programs that focus on women’s health, financial literacy, and work-life balance. Peer-to-peer health training in supplier factories has empowered more than 46,000 female workers in China, Mexico, Malaysia, and Thailand. In collaboration with local NGO’s, women in factories are able to take ownership and make decisions about their health and personal finances.
Young, dispatch, and student workers
To protect young workers (16 and 17 years old), contracted dispatch workers, and students, we require suppliers to conform to our our Supplier Code of Conduct and Student and Dispatch Worker Standard for Supplier Facilities in the People’s Republic of China. The latter standard, another industry-first, requires that students make up no more than 20% of the workforce, and that all student work is voluntary, meets local regulations, and furthers a student’s education.
We track suppliers’ performance against our standards, and take action when they fall short. In 2015, we evaluated all high-risk supplier sites employing student workers through on-site assessments or full audits. 91% of sites monitored maintained student worker levels at no more than 20% of the total workforce related to HP production. We also supported training for 738 factory managers on how to better support young workers.
For more details on our efforts to address modern slavery, see our Modern Slavery Act Transparency Statement, published pursuant to the Modern Slavery Act 20151.
Our progress and performance
The dashboard below is a high level snapshot of our suppliers’ SER performance through 2015, showing global progress on labor, health and safety, and environmental impacts. Through 2015, HP capability building and worker empowerment programs cumulatively reached 611,100 managers and workers.
For more detailed data, including supplier audit results, please see our Sustainability Report.
Supply chain responsibility dashboard, 2013-2015 2
Working hoursSuppliers’ employees working less than 60 hours per week on average3 [%]
Day of restSuppliers’ employees receiving at least one day of rest each seven day workweek3 [%]
Suppliers with few student workersSuppliers in China with student workers representing 20% or less of total employees3 [%]
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 hygiene4
Greenhouse gas emissionsProduction supplier Scope 1 and Scope 2 emissions5,6,7 [tonnes CO2e]
Collaboration with our suppliers
We engage extensively with our suppliers via audits, targeted assessments, and monthly tracking. In 2015, HP conducted 192 audits and assessments of production and nonproduction supplier facilities, bringing the total to 1,499 since the program began in 2004. Results from these engagements allow our program to identify and prioritize existing and emerging issues in the supply chain. We then work with suppliers to addresses risk and drive improvement through targeted capability building, remediation, and industry collaboration. For more detailed audit information, see our Sustainability Report.
Previous data shows that the longer suppliers participate in our assessment program, the better they perform socially and environmentally.
Supplier engagement through the years
HP customers span the globe and come from all backgrounds and walks of life. By hiring suppliers that reflect this diversity, we strengthen our business, enhance innovation, and advance local economies.
Our Global Supplier Diversity Office oversees diversity programs and partnerships in Australia, Canada, China, Ireland, South Africa, the United Kingdom, and the United States. To strengthen how we manage supply chain diversity, we are moving to:
- Align diversity efforts with HP’s corporate diversity and inclusion strategy
- Focus on strategic long-term collaborations that drive new business with diverse suppliers
- Work with the U.S. Small Business Administration to mentor and develop small firms.
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
We invite current and potential diverse suppliers to contact us using our online registration tool.
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.
Integrated sustainability policy
In 2015, we embedded human rights policies and practices directly into our Sustainability Policy, consolidating all three pillars of our Sustainability Strategy – environment, society, and integrity into a single document. HP Inc is maintaining a strong position on human rights, adopting the key elements of Hewlett-Packard Company’s human rights policy.
Achieved supply chain GHG emissions goal
We achieved our industry-first goal to reduce the GHG emissions intensity of first-tier manufacturing and product transportation suppliers by 20% by 2020, compared to 2010.
Broadened scope of HP’s SER scorecard
The SER scorecard was expanded to cover all strategic commodity groups in addition to of the previously encompassed final assembly and key commodity suppliers. The company also refined the scorecard criteria to more clearly communicate expectations and drive further improvement as suppliers’ capabilities develop.
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. Modern Slavery Act 2015, Section 54 – Transparency in supply chains etc.
2. 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.
3. 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.
4. 2014 findings relate to emergency preparedness and industrial hygiene. See Audit results on page 35 of the HP 2014 LPR Audit results section.
5. 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.
6. The World Resources Institute defines Scope 1, 2, and 3 GHG emissions in its Greenhouse Gas Protocol; see Greenhouse Gas Protocol.
7. 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.