Responsible Electronics 2013: Managing Climate Risks and Opportunities in Your Supply Chain

The Electronic Industry Citizenship Coalition

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

Accounting for carbon across the value chainOctober 2013

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.3

HP’s complete carbon footprint


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Supply Chain Sustainability at Dell

Bruno SardaDirector, Sustainability Operations

Dell Powering the Possible is our commitment to put technology to work, where it can do the most good for people and the planet.

Corporate Responsibility7 Confidential

The big picture: changes 2008-2013

1B+ lbs of e-waste recycled

20M+ lbs & $ saved through 3

Cs packaging strategy

CO2

25M+ tonsGHG prevented through

improved product performance

16% absolute

reduction in facilities carbon

footprint

Corporate Responsibility

Why it matters?

Of the 250 world largest companies (G250) report on their corporate responsibility activities. KPMG 2011

Confidential8 04/10/2023

95%

80%Global consumers believe it is important for companies to make them aware of their efforts to address societal issues.*

53% Global consumers rank a company’s social purpose as most important when quality & price are equal. 26% increase since 2009.*

51%Of Dell’s top corporate and public customers consider the environmental performance of their suppliers. Dell research

Expectations rising globally

Responsible companies want to work with responsible business partners.

Most people want to work for a company that cares.

People globally want to work companies who support good causes. Edelman 201257%


GHG Emissions by Scope and Category

04/10/2023

Sold Product(Scope 3)

PurchasedElectricity(Scope 2)

Suppliers(Scope 3)

Business Travel

(Scope 3)

Direct Emissions(Scope 1)


Supplier Engagement Success via CDP

04/10/2023

High response rate Higher GHG performance

Higher overall performance

Initiatives Targets Savings0

10

20

30

40

50

60

70

80

90

Dell suppliers Global suppliers

100% 100% 99%


Where to from here?

04/10/2023

• The business case is strong• We’re all in this together• Look for more Dell news soon


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CDP:

Managing climate risks and

opportunities in your supply chain

Maxfield Weiss, Senior Manager

CDP North America

October 2, 2013

www.cdp.net | @CDP

CDP is a global non-profitOur mission is to transform the global economic system in order to prevent dangerous climate change and value our natural resources by putting relevant information at the heart of business, investment and policy decisions.

What is CDP?

Key Stats on Scale

4,000 companies globally report their emissions, water or forestry data to CDP on an annual basis

722 investors representing $87 trillion sign a request for this information

65 major companies use CDP’s system to engage suppliers

2012 Supply Chain Members

US$1 trillion

43

2Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Identify and communicate with

select suppliers

Suppliers Respond to CDP

Results are reported

1Set strategy,

evaluate success and prepare for following year

So, how does it work?

www.cdp.net | @CDP

1. Set Strategy

Goal

To have 80% of my suppliers (by spend) be aware of and acting on climate change.

Future Vision

My suppliers will be actively reducing energy use and cost. Climate will be embedded in the procurement DNA. We will work collaboratively.

KPIs

Supplier scores above 50 in disclosure

Key data in scorecard

Procurement team incorporate the info

www.cdp.net | @CDP

Identify key suppliers and send the list to CDP.

Introduce suppliers to the CDP process, explain your participation and make

your expectations clear.

CDP compares your list to the existing database of over 10,000 companies to identify duplicates

and consolidate requests.

CDP invites suppliers to respond and supports suppliers as they complete the process.

2. Identify and communicate with key suppliers

www.cdp.net | @CDP

CDP provides online database, training, and support to suppliers.

CDP reports response rate progress to members on a weekly basis in a simple custom report.

Procurement staff communicate with non-responsive suppliers to encourage participation.

3. Suppliers respond to CDP

Sample Weekly Update

4. Using the reported data

www.cdp.net | @CDP

Supplier EvaluationIn conjunction with members L’Oreal & Coca-Cola, CDP developed a supplier

score card designed to inform meaningful interactions between buyer

and vendor.

Price Negotiation “When suppliers ask for price increases due to energy cost, we first turn to their CDP reporting history. We require reporting on energy and climate risk management before granting these increases except in exceptional circumstances.”

Scope 3 Emissions Many companies are now using supplier-reported emissions data to contribute to their Scope 3 emissions reporting. CDP works closely with World Resources Institute and provides helpful guidance on how to complete this work.

http://cs.co/csrReportPDFenvironment

Cisco 2012 CSR Report: http://www.cisco.com/go/csrreport

By integrating sustainability into business reviews, we aim to show suppliers that Cisco takes sustainability in the supply chain seriously and that they [suppliers] must have an acceptable level of sustainability performance to do business with Cisco.

In 2012, Cisco deployed sustainability criteria in business scorecards for all contract manufacturers, preferred component suppliers, and logistics partners.

Cisco’s objectives include:

100% of preferred suppliers to report their GHG emissions through the CDP questionnaire (in FY13)

100% of preferred suppliers to report Cisco’s share of their GHG emissions (by end of FY15)


support supplier disclosure

“We recognize from our own experience, that working to reduce greenhouse gas emissions can drive innovation and enable cost savings....we are asking suppliers to publicly report their GHG emissions, reduction strategy and actions to the Carbon Disclosure Project”

"Failure to meet these requirements can impact your supplier ranking and potentially diminish your ability to compete for Dell's business”

[email protected]

Asking suppliers to set a intensity target of 5% for suppliers’ Scope1 & 2


www.cdp.net | @CDP

1. The cycle restarts; revisit strategy.Assess whether goals were met; prepare for following year.

Have you met your goals?

Use CDP’s reports to evaluate progress.

CDP provides scores for suppliers and additional analysis to summarize data and highlight next steps.

Suppliers and their respective customers receive supplier scores, benchmarking information, as well as an offer for a free supplier performance review by our scoring partners

Members receive a private, custom report highlighting success and areas for improvement in the member company’s supplier engagement program

CDP launches a public report and hosts a live in-person / TelePresence session to discuss the findings.

www.cdp.net | @CDP

Member Support

Monthly web-based & annual in-person

roundtables and workshops

Training for buyers/suppliers

Weekly Updates on response progress

CDP Portalreal-time response progress, member toolkit, complete responses

from suppliers, comprehensive data output and summaries

www.cdp.net | @CDP

Supplier Support

Online Database

Save your answers as you go, use prior year answers, view others’ responses & scores

Free Training

Live and recorded webinars available on www.cdp.net

Multiple Stakeholders, One Response

One response may be shared with multiple customers or stakeholders

Custom SupportSend an email to [email protected] for prompt response on

questions related to responding.

CDP:

Managing climate risks and

opportunities in your supply chain

Maxfield Weiss, Senior Manager

CDP North America

October 2, 2013

Thank [email protected]


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