To meet the growing demand for connectivity while managing emissions throughout the value chain, Hewlett Packard Enterprise (HPE) has launched the world’s first comprehensive supply chain management program based on climate science. The initiative will provide suppliers with the tools they need to develop a customized plan to reduce emissions and drive a global standard for supplier greenhouse gas engagement and reduction.
As part of the program, HPE manufacturing suppliers will be required to set science-based emissions reduction targets in their own operations by 2025, with the aim of cutting 100 million tons of emissions, the equivalent of taking 21 million cars off the road for an entire year.
Last December, HPE announced that it had set a goal of reducing manufacturing-related GHG emissions on an absolute basis within the supply chain by 15 percent by 2025, making it the first IT company to establish a supply chain goal that is in line with climate science.
The company will also be the first in any industry to create a customized science-based target for suppliers by providing them with a broad range of tools and resources developed by BSR and POINT380 that will help them build their capability to set and achieve operational targets that drive down emissions.
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“This will have a ripple effect, cascading up and down our value chain,” said Lara Birkes, VP and Chief Sustainability Officer for HPE. “When customers use our energy efficient technology that is manufactured in factories with science-based targets, they will cut their own carbon emissions, achieving exponentially more with less environmental impact.”
Working with the CDP supply chain program, HPE aims to drive best practice throughout the industry while managing the associated climate risks and financial opportunities. Improved energy efficiency in HPE’s manufacturing processes and products is expected to result in cost savings not only for the company, but also for suppliers and customers. According to data from CDP, the average internal rate of return (IRR) for investments on emissions-reduction activities in the IT sector is nearly 40 percent.
“Businesses today face growing pressure to meet tougher procurement standards as customers look to reduce all costs — financial and environmental — from the products they purchase,” said Antonio Neri, Executive VP and General Manager of HPE’s Enterprise Group.
“This program will ensure we remain a trusted sourcing partner to our customers by providing them with high-quality products that are manufactured responsibly,” added Cliff Henson, Senior VP of Supply Chain for HPE.
HPE’s new science-driven strategy rounds out a suite of existing climate change targets, including a commitment to reaching 100 percent renewable energy through RE100 and a goal to increase the efficiency of its product portfolio 30 times by 2025.
By embedding science-based targets across the value chain, HPE hopes to provide a new standard for the IT industry and encourage industry peers to follow suit. "By taking this leadership position HPE will serve to inspire the ambition of their industry peers and their supply chains to improve their operations, standards and practices to lower emissions, which will drive innovation and have a huge environmental impact," said Nigel Topping, CEO of We Mean Business.