News release

In IT Industry First, HP Releases Supply Chain Emissions Data

Promoting transparency in environmental standards, HP today announced emissions data associated with its largest suppliers, representing more than 80 percent of the company’s costs for the materials, manufacturing and assembly of its products worldwide.

The release of the data, the first by a major technology company, delivers on a specific goal published in the HP 2007 Global Citizenship Report (GCR). 

“HP’s continued leadership in supply chain transparency will result in positive operational changes in environmental practices and will encourage other companies to do more to advance supply chain responsibility,” said Tony Prophet, senior vice president, Worldwide Supply Chain Operations, Personal Systems Group, HP. “Technology innovation will continue to improve the IT industry’s environmental footprint and positively impact the broader global economy.”

In 2007, the aggregated carbon dioxide equivalent (CO2e) emissions associated with more than 80 percent of HP’s first-tier manufacturing expenditures totaled approximately 3.5 million metric tons.⁽¹⁾ As the world’s largest IT company, HP operates the largest supply chain in the technology industry; it will use this data to incorporate energy efficiency into how it manages its first-tier suppliers. In addition, HP will propagate this reporting to the rest of its supply chain to determine further emissions reductions as it incorporates emissions reporting into lower tiers.

HP has reported its own emissions since 2003, began reporting its product transportation emissions in 2007, and now extends emissions reporting to its supply chain. Additionally, the company’s top suppliers must comply with the Electronic Industry Code of Conduct (EICC) and meet HP’s stringent social and environmental responsibility expectations worldwide.

“By releasing its aggregated supply chain emissions data, HP demonstrated its commitment to being an environmental leader,” said Jason Clay, senior vice president, World Wildlife Fund – United States. “HP is setting an example for other companies to follow in using its influence to address climate change beyond its products and operations.”

Future supply chain standards

HP’s reporting on CO2e emissions in its supply chain represents an initial step in a long-term program. The company is working to establish better standardization of tools and methodologies to facilitate consistent and reliable reporting among suppliers and enable a robust process that could potentially be implemented throughout HP’s supply chain. Other steps HP is implementing include:

• HP is working with the EICC to build a calculation tool to ensure consistency among suppliers’ self-reported emissions accounting;
• As a member of the Carbon Disclosure Project Supply Chain Leadership Collaboration initiative, HP has piloted a carbon disclosure survey among its suppliers; and
• HP will participate in the Greenhouse Gas (GHG) Protocol Supply Chain Initiative, which will develop a methodology for quantifying and reporting product life cycle and supply chain GHG emissions.

Leadership in supply chain responsibility

HP has a legacy of supply chain social and environmental leadership, including the following achievements:

• In 2002, HP established a social and environmental responsibility policy for its supply chain and extended the HP Supplier Code of Conduct to include its supply base;
• HP helped lead the development of the industry-wide EICC, which was introduced in 2004;
• HP has conducted more than 500 audits with first- and second-tier suppliers worldwide;
• In April 2008, HP became the first major technology company to publish a list of its largest suppliers, advancing supply chain transparency standards across the industry;
• In August 2008, HP became the first company to qualify for the U.S. Environmental Protection Agency (EPA) SmartWay product packaging logo, certifying that its surface transportation carrier network reduces transportation-related emissions; and
• HP trains thousands of supplier managers and workers annually on environmental protection, health, safety and labor practices.

More information on HP’s supply chain social and environmental responsibility leadership is available at www.hp.com/hpinfo/globalcitizenship/gcreport/supplychain.html.

HP and the environment

For decades HP has been an environmental leader, driving company stewardship through its holistic design for environment strategy. HP influences industry action through its long-standing commitment to maintain supply chain responsibility, sustain energy efficient operations, reduce its climate impact and offer product reuse and recycling options. HP also makes it easier for customers to recognize environmentally preferable features through HP Eco Solutions, a program that helps customers identify products and services designed with the environment in mind. More information is available at www.hp.com/environment.

About HP

HP, the world’s largest technology company, provides printing and personal computing products and IT services, software and solutions that simplify the technology experience for consumers and businesses. HP completed its acquisition of EDS on Aug. 26, 2008. More information about HP (NYSE: HPQ) is available at http://www.hp.com.

⁽¹⁾ Aggregated CO₂e emissions represent the sum of HP-allocated suppliers’ emissions and are calculated by factoring the total supplier emissions by the percentage of HP dollar volume to the suppliers’ total revenue.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the execution and performance of contracts by HP and its customers, suppliers and partners; the achievement of expected results; and other risks that are described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2008 and HP’s other filings with the Securities and Exchange Commission, including but not limited to HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2007. HP assumes no obligation and does not intend to update these forward-looking statements.

© 2008 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP shall not be liable for technical or editorial errors or omissions contained herein.