© 2008 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice
HP Global Citizenship
Mills College, September 11, 2008Bonnie Nixon, Director of Ethical Sourcing
2 05/03/23
HP Agenda
About HP & Global Citizenship
Environmental Sustainability
Supply Chain Social & Environmental Responsibility
21
321
3
3 05/03/23
HP’s global citizenship legacyHP’s commitment to social and environmental responsibility started with Bill Hewlett and David Packard in the 1930s and continues todayStart 1930s 1980s –1990s 2000s – Today
Focused sustainability programs to drive change, action and leadership1987 First IT company HW recycling.1987 Computer product recycling1988 Hazardous Waste Minimization Council1989 PVC removed from DeskJet pkg 1991 Planet Partners Program; Ozone depleting substances eliminated1992 Design For Environment Program; EPA Energy Star Partner1993 Instant-On Technology1998 General Specification for the
Environment
HP’s deep-rooted legacy focused on corporate social and environmental responsibility1930s Commitment to the community1950s Global Citizenship objective1970 First environment control
coordinator at HP 1971 Recycling computer print-outs and punch cards.1973 Environmental policy to reduce
pollution1975 Energy Conservation Guidelines 1976 Van pools in Bay Area.
Innovation to lessen IT’s impact and enable the sustainable economy2001 Bio plastics corn printer shell. 2002 Supply Chain code of conduct;
Bulk Delivery of Volume orders2003 1st signatory to have WEF
emissions data accepted.2004 Co-established pan-European take back and compliance system2006 Dynamic Smart Cooling.2006 International climate change
initiative World Wildlife Fund. 2007 Recycled 1 billions pounds; 1st
E*4.0 PC; 1st EPEAT Gold PC2008 RPET from PP used in HP cartridges
4 05/03/23
HP global citizenship and environmental sustainability mission
Global citizenship is HP's comprehensive commitment to hold ourselves to a higher standard of integrity, transparency and accountability. Our values help us balance and align our business goals with our impact on society and the planet. PO
SITI
ONIN
GM
ISSI
ON
Ethics & compliance
Maintain and enhance a recognized world class ethics and compliance culture
Human rights & labor practices
Ensure healthy, safe and positive working conditions in the communities in which we and our suppliers do business
Privacy
Provide world class privacy leadership and build a trusted relationship with customers and stakeholders
Social investment
Address educational and social needs through responsible philanthropic investments
Environmental sustainability
Be THE most environmentally responsibleIT company
5 05/03/23
HP social & environmental sustainability frameworkIm
pact
Complexity
HP’s technology breadth and industry reach give us an unmatched ability to make the kind of impact that is good for business, good for customers and good for the planet.
PROG
RAM
STRA
TEGI
ES
OUR HOUSE YOUR HOUSE OUR PLANETAdvanced research and development to enable the low-carbon economy
• Energy & resource efficiency • Reuse/End of Use• “Live Green” Program• World Class Supply Chain
Deliver Eco Solutions:• Energy savings• Digitally Green products• Reuse & recycling
Deliver practical solutions to make it easier for customers to go GreenAssure product manufacturing
Innovate ways to build a sustainable economy
Walk the TalkRetain & Recruit best & brightestLead the industry and raise the standards
Operations
Supply chain
Products services solutions
Sustainable
economy
6 05/03/23
HP Live GreenImportant to our employees
• Campaign− Educate employees on environmental
issues and encourage action− Series of events, articles, speakers,
contests and bi-weekly environmental tips
− Websites, blogs, facebook and webcasts
− Site Network and HP Sustainability
7 05/03/23
HP Environmental Sustainability
8 05/03/23
Environmental sustainability is criticalfor customersTODAY•Heightened consumer awareness and commitment to environment
•Business recognition and action to manage energy costs and environmental impacts
•IT currently accounts for 2% of worldwide carbon emissions
•Improved environmental performance drives business results
TOMORROW•4 billion devices + 5,000 data centers equivalent to 300M metric tons of coal/year and release of 585M metric tons of CO2
•Increased legislation: from eWaste to energy to climate
•Primary customer requirement to conduct business
•Core element of growth, valuation & brand
Tech innovation will continue to improve the IT industry’s environmental footprint AND positively impact the broader
global economy
9 05/03/23
What Sustainability Means to HP:Reducing impact throughout the product lifecycle
ProductProductlifecyclelifecycle
Energy efficiency
Product reuse and recycling
Supply chain responsibility
Product materials
10 05/03/23
Three priorities where HP can make the greatest impact
Supply chain responsibility
ENERGY EFFICIENCY
Product reuse and recycling
Climate and energy
11 05/03/23
“Scientists may still be discussing what caused the disappearance of the once-dominant dinosaurs, but there is no doubt amongst them what is causing the current round of mass extinctions. It is Mankind.” Paul Brown, Global Warning (The Last Chance for Change)
12 05/03/23
HP supply chain: broad cross section of productsTechnology Systems Group
Imaging and Printing Group
Personal Systems Group
13 05/03/23
Supply chain manufacturing locationsHP’s suppliers of product materials, components and services
Americas
EMEA
Asia Pacific/Japan
Major locations of HP product materials, components and services suppliers
Americas Europe & Middle East Asia Pacific & Japan
14 05/03/23
Risky Business in 2008
Strike Hits Vietnam Nike Factory April 1, 2008
Thousands of workers producing 10% of the 75 million pairs of shoes made annually for Nike have shut down a Vietnamese plant demanding higher pay, bonuses and cost of living allowances
INTERNATIONAL: Bottom of the BarrelMar 24, 2008 Millions of Asian workers producing goods sold are trapped in servitude.
Shanghai China: Abusive Child Labor Ring Is Exposed May 1, 2008Severe labor abuses extended into the heart of its export economy.
15 05/03/23
Corporate policy
Code of conduct
Supplier assessment
Supplieraudit
Corrective action
Capability building
Making progress in the supply chainHP’s Systems Management Approach
– Risk based country, site & partnership assessment – Partnership oriented engagement & auditing – Surface and address root causes– Worker voice is critical to success
Low Risk
Assessed
Audited
Not assessed
16 05/03/23
Root Cause Analysis is critical to solving problems
A management systems approach drives sustainable solutions
Labor
Health & Safety
Environment
Ethics
ManagementSystems
Uphold the highest
standards
Evaluate & control exposure to
hazards
Treat employees with dignity &
respect
Protect the environment
Electronic Industry Code of Conduct
17 05/03/23EICC : www.eicc.info
GeSI SCWG: www. gesi.org
Coalition Coalition MembersMembers
18 05/03/2318 May 3, 2023
Electronic and Multi-Industry Harmonization• EICC & Global e- Sustainability Initiatives (GeSI)• FIAS China Capability Building Strategy (Shenzhen) • Beyond Monitoring & Global Social Compliance Program• Climate Change Trainings and Factory Tools (CDP)China & Asia Pacific • Factory Programs/Training with NGOs, FISI & HER Project• Thailand 2nd & 3rd Tier Assessments & Training• India Project with US State Dept $ & NGOs
Europe, including Central & Eastern Europe• Central European Supplier Responsibility (CESR)• CSR Laboratory with CSR Europe• ILO Tripartite Agreement & NGO EngagementMexico • Industrial Association Training Programs • CEREAL Grievance Management & Training• HER Project – Women’s Healthcare in Factories
Global Initiatives & Local Programs
19 05/03/23
Focused Improvement Supplier Initiative
Year 1 and 2 FISI program closed successfully
Reduced SER risks and major non-conformances in all factories
Best practices successfully shared with other suppliers (Peer Network)
Able to demonstrate efforts toward EICC conformance to all customers
Improved skill sets of key factory managers
Factory management obtained skills, tools, support and expertise
Final metrics showed clear business correlation between worker morale and participation and reduced turnover and better quality
40 days of training with 45 major supplier companies in ChinaFISI is meant to connect suppliers with the resources, skills and network to improve SER Management in a systemic way aligning with business objectives
Must include right representation and participation including: CEOs & Top Level Management, Facility Mgmt., Human Resources, Production, Quality, Environmental Health & Safety & Line Mgrs.
20 05/03/23
Building a Business Case
2. ProductivityOutput per hourProduction value/hour
% of Delay Time
4. Wages & HoursAverage wagesAverage hourly wageAverage working hours per month
5. H&SAccident Incident RateLost Workday Rate
3. QualityRejection Rate
Rework Rate
1. HR & Labor% New Workers
Retention Rate (new & old workers)
# Complaints & Disciplinary Action(Worker Satisfaction – Interviews & Surveys)
Metrics are submitted in the following categories;
21 05/03/23
A call for action...
Think Globally
Act Locally
Change Personally
22 05/03/23
Thank You