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Supply Chain
HP Pledges to Reduce GHG by 20% in Supply Chain by 2020

HP recently announced that it has set a goal of driving a 20 percent decrease in its first-tier manufacturing and product transportation-related greenhouse gas (GHG) emissions intensity by 2020, compared to 2010, a first for the information technology industry.

Developed in consultation with the World Wildlife Fund’s (WWF) Climate Savers Program, HP says the GHG emissions-reduction goal will be pursued through a variety of HP-led activities, including:

· Business incentives for suppliers to set and achieve tangible GHG emissions-reduction goals.

· By 2020, direct prevention of 2 million metric tons of GHG emissions across HP’s multitier supply chain, cumulatively, through specific supplier environmental improvement projects, including:

o Expanding HP’s Energy Efficiency Program (EEP) for manufacturing suppliers.

o Instituting specific emissions reduction initiatives with suppliers with GHG intensive operations, e.g., LCD panel manufacturing.

o Creating product transportation-related efficiency initiatives.

· Public reporting through the company’s Global Citizenship Report (GCR) on supply-chain GHG emissions to create awareness among HP’s supply base and demonstrate progress.

“HP has one of the largest supply chains in the industry. It’s imperative to manage it not just efficiently, but also ethically and in an environmentally sustainable way,” said Tony Prophet, senior vice president, Operations, Printing and Personal Systems, HP. “We understand the importance of reducing our carbon footprint, promoting sustainability throughout the IT supply chain and driving innovation that creates a better world and brighter future.”

HP’s GHG emissions reduction goal for supply-chain partners is the latest in a series of successful initiatives by HP’s supply chain Social and Environmental Responsibility (SER) program. In 2008, HP became the first major IT company to measure and publish aggregated supply chain GHG emissions. Since then, the company also has implemented projects that cut emissions from product transport collectively by 190,000 metric tons CO2 equivalents.

“This is a significant commitment that will have a measurable impact on HP value chain emissions, furthering WWF’s objective of overall climate protection,” said Matthew Banks, senior program manager, Business and Industry, World Wildlife Fund. “We hope others follow the lead of HP in realizing the cost and emissions savings for their suppliers. HP and the other 29 WWF Climate Savers partners have the potential to make immense impact in innovating our way through the planet’s climate challenges.”

In February, HP agreed to continue development of a database used by nearly three dozen car manufacturers to eliminate harmful substances from their automotive supply chains. The IT company said it will continue to support the International Material Data System (IMDS), a shared service that enables automotive manufacturers and more than 100,000 companies in the vehicle supply chain to meet regulations on hazardous materials.