HP Innovation Journal Special Edition: Sustainable Impact | Page 13

For example, in 2005, we were the first IT company to
publish aggregated supplier audit results; in 2013, we were
the first IT company to publish our supply chain smelter
list; and we were also the first IT company to publish
our complete GHG and water footprint, in 2013 and 2014
respectively. More recently, in 2017, we were the first IT
company to publicly disclose a list of our recycling vendors.
HP has appeared on the Gartner Supply Chain Top 25 list
for the past three years with a perfect score for corporate
social responsibility (CSR). We have also been recognized as
an industry leader by KnowTheChain for our commitment
to address human trafficking and forced labor in the supply
chain, and in 2018 we achieved a spot on the CDP Supplier
Engagement Leaderboard.
In fact, Sustainable Impact is integrated into the key
mechanisms by which we evaluate our suppliers. Our
expectations around environmental management, labor
management, audit scores, and minerals sourcing are all
baked into our supplier sustainability scorecard, which is
embedded into each supplier’s overall procurement score.
Poor performance on any of these topics can have a material
impact on HP’s decision to work with a certain supplier. The
good news is our suppliers are delivering. Since integrating
the sustainability scorecard into the procurement evaluation,
supplier scores have increased by an impressive 41 percent; in
2017 alone, scores increased by 8 percent.
But, we also know we must continue to raise the bar. As
an example, many of our customers and partners are
now setting and pursuing science-based greenhouse gas
Supply Chain 2020
emissions reduction targets. As a result, they are looking
deeper into their supply chains for results. According to
CDP, the number of companies requesting data from their
supply chains has increased by 15 percent in just the last year.
And according to a 2017 survey, 60 percent of the world’s
top 500 asset owners are working to make their portfolios
climate-resilient and to take advantage of new opportunities
associated with the low-carbon transition.
In fact, 50 percent of our own carbon footprint stems from
our supply chain, so to meet the needs of customers and
investors, as well as reach our own emissions reduction
target, we are working closely with suppliers to reduce
emissions, to set their own targets, and to launch renewable
energy and zero-waste projects.
GLOBAL REGULATIONS DEMAND GREATER
TRANSPARENCY
Customer expectations are now driven in some part by the
dramatic growth in global regulations, particularly around
the topic of supply chain responsibility. For example, we
estimate that government regulations around modern
slavery will double in the next three years, requiring greater
due diligence, transparency, and action from companies to
ensure that all workers in their supply chain have freely-
chosen work that offers dignity and respect.
We firmly believe that all people are entitled to safe labor
conditions and freely chosen work. We uphold these rights
across our business, in line with the UN Declaration of Human
Rights, the UN Guiding Principles on Business and Human
Rights, and the UN Global Compact.
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