HP Innovation Journal Special Edition: Sustainable Impact

DRIVING A SUSTAINABLE FOURTH INDUSTRIAL REVOLUTION HOMEBOY ELECTRONICS We are on the cusp of a global manufacturing revolution that will fundamentally change how we conceive, design, produce, distribute, and consume nearly everything. The Fourth Industrial Revolution is being driven by a suite of new and disruptive technologies, and chief among them is 3D printing. BUILDING A WORLD WHERE HUMAN AND NATURAL RESOURCES ARE VALUED While 3D printing has been around for decades, it has mostly been limited to prototyping and tooling. Today, technology, such as HP Multi Jet Fusion 3D printing, is helping accelerate full-scale manufacturing and just-in-time production across all industries. And the technology is doing it in a more efficient, economical, and environmentally conscious way. 3D printing can reduce the amount of materials, time, and costs needed to make a finished part by realizing complex shapes or redesigning complex assemblies into a single part. For example, when we used 3D technology to replace an aluminum part with a redesigned 3D printed nylon part in one of our HP Latex printer models, the results were impressive: a 93 percent decrease in weight and a 95 percent reduction in GHG emissions, while also cutting costs by 50 percent. By helping companies better match supply with demand, 3D printing also eliminates the overprovisioning of materials, parts, and finished products. Companies can now create virtual inventories in which products are made as needed, rather than physically stored for later use—or worse, never used at all. And since companies can now transmit digital files for production locally rather than shipping physical goods, 3D printing can also reduce emissions related to distribution. At HP, we believe that by reinventing how we make, use, and recover our technology, businesses, communities, and individuals can thrive. Our approach to the circular economy—one in which we build on our industry leadership in environmental design, materials innovation, energy efficiency, and product reuse and recycling—is one way we can help both ourselves and our customers meet business and environmental objectives. 1. Based on monthly subscription cost using only all pages in plan vs. cost per page of most color inkjet printers < $399 USD. Share from IDC CYQ1 2016. Stan- dard cartridge CPP from gap intelligence AiO Weekly (IJP Weekly 5/15/16). 2. Compared with non-subscription purchase of the same HP ink cartridges. Based on a 2017 lifecycle assessment (LCA) performed by Four Elements Consulting and commissioned by HP. Analysis includes the CO2 equivalent as- sociated with customer trips to purchase ink cartridges at a retail store versus delivering directly to a customer’s house, and it includes recycling empty ink cartridges versus throwing them away. Data and assumptions drawn from six years of customer data in the United States. Reductions in materials consump- tion, carbon footprint, energy use, and water usage are average values. 3. All HP brand paper and paper-based product packaging will be derived from certified and recycled sources by 2020, with a preference for virgin fiber from certified sources of the Forest Stewardship Council (FSC). Packaging is the box that comes with the product and all paper (including packaging and materials) inside the box. Bringing Sustainability Full Circle As part of HP’s commitment to building a strong, circular economy, we are partnering with Los Angeles-based Homeboy Electronics Recycling to recover material from end-of- service devices for incorporation into our closed-loop materials stream. Homeboy Electronics Recycling, part of Homeboy Industries, was founded nearly seven years ago with the mission of boosting the recycling rates of digital gadgets that too often get tossed in the trash—and in the process, creating good jobs for people who face employment barriers, including felons and former gang members. Homeboy Industries provides job and life-skills training and free social services while employing nearly 300 people at a host of social enterprises it owns along with Homeboy Electronics Recycling, including Homeboy Foods bakery, a farm-to- table café, and farmers markets. Through the partnership, used printers returned by customers for recycling are sent to Homeboy, a subcontractor to Sims Recycling, HP's core recycling partner. Once the printers arrive at Homeboy’s warehouses, employees manually disassemble the products, pulling out the plastics that can be recycled and used as raw material in the manufacture of new HP printers. Printers like the HP ENVY Photo 6200, 7100 and 7800, the world’s first in-class printers made with closed-loop recycled plastic—more than 20 percent by weight. By employing formerly incarcerated and otherwise hard-to-employ men and women and training them to repair and recycle electronic equipment, Homeboy is building a world in which our human and natural resources are valued. The partnership also enables Homeboy Electronics Recycling to expand its operations— which means it can hire more employees. At the same time, by purchasing plastic material for our closed-loop feed stream for new printers, HP is helping create social benefits while improving resource efficiency. 9

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