HP Incorporated

RATING

SECTOR

Technology Hardware & Equipment

WEBSITE

CONTACT

HP Corporate Headquarters

1501 Page Mill Road

Palo Alto, CA 94304

United States

T: + 1 650-857-1501

STOCK EXCHANGE

LISTING

  • Platinum CSR rating
  • Barron’s 100 Most Sustainable US Companies, 
  • CDP A List 2018 Climate Change,
  • CDP Supply engagement leader 2019
  • Clean 200 
  • Global 100 Most Sustainable Corporations in the World List, 
  • Diversity Best Practices Leading Inclusion Index Company 2018, 
  • Member of Dow Jones Sustainability Indices
  • Listed 1st in inaugural ranking for America’s Most responsible Companies
  • Ranked 6th on the 2020 list of the 100 Most Sustainable U.S. Companies
  • Ranked 11th on list, with 5 stars in social responsibility on WSJ Management Top 250 
  • Scored 100% for 4th year in a row on Disability Equality Index
  • Included on the FTSE4Good Index every year since 2003
  • Listed on the 2020 World’s Most Ethical Companies
  • Ranked 12th on 2020 list with a perfect 10/10 for environment, social, and governance performance on Gartner Supply Chain Top 25 list
  • Named a Top 50 Employer by Woman Engineer Magazine in 2020
  • Named to Forbes list for the 2nd year in a row for America’s Most Just Companies
  • Placed 5th in ranking of 100 Best Corporate Citizens—1st in the Climate Change pillar
  • Ranked on the CDP Climate, Forests, and Water “A” Lists and make the Supplier Engagement Leaderboard

EMPLOYEES

56,000

CHIEF SUSTAINABILITY OFFICER

Renata Jungo Brüngger

AWARDS

  • Recognized for continued commitment to delivering product energy efficiency for 2nd year in a row (energy star award 2019)
  • Received a Gold rating for the 9th consecutive year (ecovadis 2018)
  • Received SmartWay Excellence Award for the 6th year in a row

CONTENT SOURCE

FURTHER READING

Report created by Muge Acar

HP Incorporated

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

HP Inc. is an American multinational information technology company headquartered in Palo Alto, California, United States. It develops personal computers (PCs), printers and related supplies, as well as 3D printing solutions.

Through their portfolio of printers, PCs, mobile devices, solutions, and services, they engineer experiences that meets their customers needs. HP’s  strategy is focused on leveraging their existing portfolio of products and services to meet the demands of a continually changing technological landscape and to offset certain areas of industry decline.

HP is organized into several groups:

  • Laptops & 2-in-1s: All of HPs laptops and 2-in-1 PCs
  • Desktops: All of HPs desktops including their all-in-one computers
  • Printers
  • Ink & toner
  • HP Business Solutions

Company Sustainability Activity

Sustainable Impact is at the heart of HP’s reinvention journey - fueling innovation and growth, strengthening business for the long term, and enabling them to develop and deliver the best solutions for their customers.

HP is driving Sustainable Impact across three pillars – Planet, People, and Community. This strategy is informed by materiality assessment and ongoing engagement with stakeholders, and reflects integration with HP’s core business.

Highlights

  • HP achieved 100% of  zero deforestation associated HP brand paper in 2016 and maintained that performance through 2019.
  • 11,000 supplier factory workers engaged in skills-building and wellbeing programs
  • $1.5 billion invested in R&D Market and customer insights
  • 557,345 MWh of electricity used in global operations, including 43% renewable electricity use
  • 25,560 tonnes of post-consumer recycled content plastic was used in HP products
  • 145,000 employee volunteer hours achieved

Targets

REDUCING ENVIRONMENTAL FOOTPRINT 

  • Reduce HP products GHG emissions intensity by 30% by 2025 (compared to 2015).
  • Achieve zero deforestation associated with HP brand paper and paper-based product packaging by 2020.
  • Reduce supply chain GHG emissions intensity by 10% by 2025.
  • By 2025, HP aims to reduce GHG emissions from HP owned or leased auto fleet vehicles by 10%, compared to 2015.
  • Help suppliers cut 2 million tonnes of CO2 equivalent emissions by 2025.
  • Reduce Scope 1 and 2 GHG emissions by 60% by 2025.

RECYCLING AND WASTE

  • Use 30% post-consumer recycled content plastic across HP’s personal systems and print product portfolio by 2025.
  • Recycle 1.2 million tonnes of hardware and supplies by 2025.
  • Eliminate 75% of single-use plastic packaging by 2025, compared to 2018

RENEWABLE ENERGY

  • Use 60% renewable electricity in global operations by 2025.

WATER WASTE

  • Reduce potable water consumption in global operations by 15% by 2025

SOCIAL IMPACT

  • Develop skills and improve wellbeing of 500,000 factory workers by 2025.
  • Double factory participation in their supply chain sustainability programs by 2025 (compared to 2015)
  • Maintain greater than 99% completion rate of annual Integrity at HP training among active HP employees and the Board of Directors.

COMMUNITY IMPACT

  • Enable better learning outcomes for 100 million people by 2025, since the beginning of 2015. 
  • Enroll 1 million HP LIFE users between 2016 and 2025.
  • Contribute 1.5 million employee volunteering hours by 2025 (cumulative since the beginning of 2016).
  • Contribute $100 million in HP Foundation and employee community giving by 2025.

Progress

REDUCING ENVIRONMENTAL FOOTPRINT

  • During 2019, they used 25,560 tonnes of post consumer recycled content plastic in HP personal systems and print products, 9% of total plastic used. 
  • HP reached 528,300 tonnes recycled.
  • HP achieved an 18% decrease in product use GHG emissions intensity.
  • They achieved 100% of  zero deforestation associated HP brand paper in 2016 and maintained that performance through 2019. Reached 80% for paper based product packaging.
  • Through December 2018, HP’s GHG emissions intensity remained flat compared to 2015.
  • Their suppliers avoided 1.26 million tonnes of CO2 e emissions.
  • HP’s global operations produced 215,800 tonnes of Scope 1 and Scope 2 CO2 e emissions, 44% less than their 2015 baseline.
  • HP’s carbon footprint in 2019 equaled 46,785,800 tonnes of CO2 e, 5% more than in 2018. A 12% increase in product manufacturing emissions—due largely to business growth and changes in the mix of key personal systems products and components.
  • HP requires their suppliers to source 3TG for HP products only from smelters that comply with the RMI’s (Responsible Minerals Initiative) Responsible Minerals Assurance Process (RMAP),which requires a third-party sourcing audit.
  • In 2019, they received acceptable responses to RMI Conflict Minerals Reporting Templates from suppliers representing about 98% of their 3TG procurement spend, including both final assembly and commodity suppliers.
  • HP sets clear requirements of 3TG suppliers in their Supply Chain Social and Environmental Responsibility Policy (which includes their Conflict Minerals Policy), General Specification for the Environment, and Supplier Code of Conduct. 
  • GHG emissions from product use equaled 22,500,000 tonnes of CO2 e in 2019, 48% of their overall carbon footprint. The decrease of 3% in absolute emissions from product use compared to 2018 was due to a 5% combined decrease in PC and printer electricity consumption of models shipped in 2019 and a 2% reduction in emissions associated with print consumables such as paper and cartridges.
  • In 2016, HP committed to eliminating deforestation from their paper and packaging supply chains.
  • In November 2019, HP launched the HP Sustainable Forests Collaborative initiative, realizing the value to business and nature of accelerating forest and biodiversity protection and setting targets informed by science.
  • In partnership with WWF, the first projects of the Sustainable Forests Collaborative will focus on restoring and improving the management of nearly 200,000 acres (over 80,000 hectares) of forests in Brazil and China, an area equivalent to the size of New York City, by the end of calendar year 2024. The area of forest that will be under these projects would produce enough paper to run through all HP consumer printers over four years.

RECYCLING AND WASTE

  • Through 2019, they achieved a 5% reduction in single-use plastic packaging.
  • HP had 40% Reduction of plastic foam in their LaserJet M1005 MFP package.
  • During 2018 their suppliers generated 144,000 tonnes of nonhazardous waste associated with HP, a 17% increase from 2017, and 56,000 tonnes of hazardous waste, also up 17% compared to the prior year. This was due primarily to HP’s business growth as well as more complete waste data. By the end of 2018, 72% of their production suppliers, by spend, had set waste-related goals, up from 59% the prior year.
  • HP launched a zero waste pilot project in 2017 at a site of a major supplier in China, with the objective of diverting more than 95% of waste from landfill through reduction, reuse, and recycling. This supplier received third party zero waste certification in 2019. 
  • In 2019, employee business travel generated 70,000 tonnes of CO2 e emissions, flat from 2018. Commuting generated 200,000 tonnes of CO2 e emissions, also the same as the prior year. Their company fleet accounted for 33,300 tonnes of CO2 e emissions, an increase of 3% compared to 2018, due to a 10% increase of the overall fleet size. 
  • 91% of the total volume of products and materials taken back in 2019 was reused or recycled by HP or by a third party.
  • 1,400tonnes of HP ink cartridges were recycled.
  • 74% of materials were recovered and used in other products, and 0% went to landfill.
  • The HP Planet Partners program makes sustainable choices easier for HP customers, enabling them to take simple steps towards achieving their own goals to reduce waste. To date, the program has recycled over 875 million HP ink and toner cartridges. 

RENEWABLE ENERGY

  • HP’s global operations procured and generated 240,398 MWh of renewable electricity and attributes, equivalent to 43% of their global electricity consumption.
  • HP’s operations consumed 695,420 MWh of energy in 2019, 8% less than in 2018. Global electricity use decreased by 5% compared to 2018, due to the implementation of energy conservation projects and real estate consolidation. Energy intensity equaled 11.8 MWh per $ million of net revenue in 2019, 9% less than in 2018.
  • During 2019, HP’s main tactics to reduce energy use included a multi-site chiller plant optimization initiative, compressed air optimization, smart building initiatives, retro-commissioning, conversion to LED lighting, and lighting control upgrades. Their energy team collaborates with site operations teams that are replacing end-of life equipment, to confirm that new high efficiency equipment is being installed. All new construction will comply with the HP Green and Smart Construction Playbook and the LEED v4 Gold Standard. 
  • In 2019, HP implemented 29 projects at 18 locations, projected to save 8,700 MWh annually. Projects included multi-site chiller plant optimization to ensure that these large, energy-intensive air conditioning systems will continuously operate at peak efficiency. A smart building retrofit project at their Palo Alto, California, headquarters includes digital lighting controls, continuous retro-commissioning, and app-based climate controls. At their facility in Israel, more efficient chillers reduced associated energy use by 27% and the savings will pay for the upgraded equipment in less than two years.

WATER WASTE

  • Exceeded their water goal six years early. Potable water consumption equaled 2,630,000 cubic meters globally, 18% less than in 2015.

SOCIAL IMPACT

  • 266,400 supplier factory workers have participated in programs for developing skills and improving wellbeing  since the beginning of 2015.
  • Factory participation in their supply chain sustainability programs increased by 53% compared to 2015.
  • 99.4% of employees, including senior executives, completed Integrity at HP training, as well as all members of their Board of Directors.
  • In 2019, HP launched a new ethics case reporting and management tool that provides centralized and automated case workflow, greater visibility to live data, and opportunities to interact with the investigation team where appropriate. As of January 2020, this is the main mechanism for employees and third parties to report integrity concerns within HP.
  • In 2019, in collaboration with Verité, HP held a customized workshop for three suppliers in Taiwan with potential foreign migrant worker risk.
  • HP launched a partnership with ISSARA Institute, an NGO that helps tackle issues related to human trafficking and forced labor, to support the monitoring of recruitment processes in Myanmar.
  • To drive progress across the industry, HP is a founding member of the Clean Electronics Production Network (CEPN) Green America program, whose members aim to move toward zero exposure of workers to toxic chemicals in the electronics manufacturing process. 
  • In 2019, HP continued to develop their global supplier diversity program in the United States and South Africa. To accelerate their efforts, they work with the National Minority Supplier Development Council, Georgia Minority Supplier Development Council, Women’s Business Enterprise National Council, and industry groups such as tech:Scale.
  • In 2019, HP spent $322 million with small businesses in the United States and $123 million with minority- and women-owned businesses 
  • In South Africa, HP supports Broad-Based Black Economic Empowerment (B-BBEE) initiatives through their supplier purchasing, to advance distribution of wealth across a broad spectrum of disadvantaged groups.
  • In 2019, HP received recognition from Working Mother, Minority Engineer, U.S. Veterans, and AnitaB.org, in addition to more than 20 other external organizations.
  • HP has signed an agreement with UN Women to advance education, entrepreneurship, and digital learning for women and girls in five priority countries: Democratic Republic of Congo, Morocco, Nigeria, Senegal, and South Africa. They also support the Human Rights Campaign’s Business Coalition for the Equality Act related to LGBTQ+ workplace rights, as well as the UN Human Rights Office Standards of Conduct for Business.
  • HP’s Board of Directors is the most diverse of any U.S. technology company. They are also among the top technology companies for women in executive positions. Women represent 30.6% of the company’s full-time vice president positions, up from 18.3% in 2015,2 and 30.9% of full-time directors, compared to 22.7% in 2015.
  • As of October 31, 2019, HP has 113 Business Impact Networks (BINs) in 29 countries, open to all employees and representing the following constituencies: Black/African American, Disabilities, Hispanic/Latino, LGBTQ+, Multicultural,Pan Asian, Veterans, Women, and Early Career.
  • BINs promote diversity in pipeline development, local hiring, talent programs, and mentoring. They leverage their global diversity strategy to execute campaigns such as International Women’s Week and ALLIES@HP, a workshop for LGBTQ+ allies that launched as part of their HP Pride Month initiatives.

COMMUNITY IMPACT

  • More than 28.7 million students and adult learners have benefited from HP’s education programs and solutions that advance quality learning and digital literacy, and enable better learning outcomes, since the beginning of 2015.
  • 214,000 users have enrolled in HP LIFE courses since 2016.
  • HP employees have contributed 429,000 volunteer hours to local impact projects through 2019.
  • Giving from the HP Foundation and employees reached $35.17 million.
  • In 2019, HP Learning Studios brought state-of-the art educational technology into more than 100 schools across North America, Europe, the Middle East, Australia, and New Zealand.
  • HP offers tools and technologies that boost teachers’ vital contributions. Every Windows 10-based HP Education Edition PC ships preloaded with HP Classroom Manager. Through one console, teachers can cultivate a collaborative learning environment, monitor student activities, and evaluate progress in real time. With co-molded industrial rubber, pick-proof keys, and other rugged features, these PCs are built to last in the classroom and tested in a laboratory environment that simulates a school setting. 
  • HP shipped 6.3 million PCs to schools in 2019.
  • HP works with the United Nations High Commissioner for Refugees (UNHCR) and other partners to enable refugees and displaced populations to learn in-demand skills to enhance employment opportunities
  • In Uganda HP School Cloud was piloted with partners including Education Cannot Wait (a global fund of UNICEF), UNHCR, and Learning Equality. The technology is currently being used in 12 secondary schools across Uganda (both rural and urban) with high concentrations of refugees—reaching over 6,000 refugee students as well as their Ugandan peers and teachers during 2019.
  • In Lebanon HP is partnering with the Clooney Foundation for Justice, UNICEF, and Google.org to improve educational opportunities for thousands of Syrian refugees and Lebanese students. For example, in the Fern El Chebbak middle school, the principal instigated a mandatory IT period to tackle basic digital literacy. After gaining confidence, students moved on to the next level of skills, including text editing and Internet search.
  • In Jordan/Lebanon HP launched three HP Learning Studios in Lebanon in early 2020. This follows the two HP Learning Studios launched in Jordan, in the Azraq Refugee Camp and Amman. 
  • In 2019, HP announced with nonprofit Girl Rising the launch of new curriculum and technology solutions that will equip up to 10 million students and teachers. The multiyear partnership extends to communities in the United States, India, and Nigeria. HP will include Girl Rising’s teacher training modules focused on youth empowerment and life skills in HP Education Edition PCs
  • As part of their Women in Technology program, in 2019 HP jointly hosted a roundtable discussion in the UK that drew upon an independent HP-commissioned study about why the tech industry struggles to attract women and how this can be improved. The event was attended by representatives from government, business, and media. 
  • To inspire more girls and minority students to consider science, technology, engineering, and mathematics (STEM) careers, HP grew their participation in the Hour of Code initiative, and in collaboration with Girl Rising and UN Women, created access to technology-enabled learning opportunities for women and girls across multiple priority countries. Additionally, they maintained their partnerships with organizations such as AnitaB.org, Black ComputeHER, Black Girls Code, Breakline, and the YWCA’s Curated Pathways to Innovation.
  • To bridge the “digital divide” and build skills for the future, the HP Foundation provides core business and IT skills training free of charge for start-ups, students, and small businesses through HP LIFE (Learning Initiative for Entrepreneurs). The program offers global access to 32 free courses in seven languages, with a focus on providing highly accessible and usable content. New courses added to the portfolio during the year included Growth Engines for Your Business and Customer Relationship Management. 
  • During 2019, HP offered HP LIFE content offline for the first time, enabled by Learning Equality’s Kolibri platform, which is being used globally by HP partners including UN Women.
  • The United Nations Industrial Development Organization (UNIDO), HP, and the HP Foundation signed a memorandum of understanding in 2017 renewing their partnership to further foster entrepreneurship and employment opportunities in developing economies, including expanding their work into Africa.
  • HP LIFE hosts an annual BCM social entrepreneurship business pitch competition program, in partnership with WorldSkills International. In 2019, 270 teams entered from 38 countries, and 30 teams representing 24 countries were selected as semi-finalists. HP employees served as team mentors and judges. Teams used HP LIFE courses and webinars to generate social venture ideas, create a viable business model, and pitch their concept to the judges.
  • In 2019, HP supported response efforts for the California Wildfires and the Government Shutdown Response Fund and worked with expert partners, including the American Red Cross, Feeding America, and the Information Technology Disaster Resource Center (ITDRC), to speed recovery and reconnect vital networks.
  • HP’s annual 40 Days of Doing Good campaign takes place each year in May and early June. In 2019, 2,980 HP employees in 27 countries volunteered 2,150 hours on approximately 200 projects. Among the many activities were a digital literacy project in Costa Rica, skills workshops in Lagos, Nigeria, and mentoring at an HP Science Fair in Vancouver, Washington

Health and Safety

  • Worldwide, HP maintained below-average accident and injury rates in 2019, with a lost workday case rate of 0.08 and a recordable incidence rate of 0.21,8 compared to 2018 average rates of 0.09 and 0.23, respectively, in the U.S. Computer and Peripheral Equipment Manufacturing industry (NAICS Code 33411).
  • Throughout the year, HP encourages healthy behaviors through regular communications, voluntary progress tracking, fun challenges, and incentives. Depending on location, U.S. employees and spouses/domestic partners can each receive incentives of up to $550 a year for activities such as completing a wellness assessment or making a tobacco free pledge. As of October 2019, 71.5% of eligible employees in the United States, and 55.1% worldwide, had joined the Well Beyond program
  •  HP recorded 25 billion employee steps through their Well Beyond platform worldwide, equivalent to more than 12 million miles. As part of their Global Wellness Challenge, they created a Global Community Cookbook, which included pictures submitted from employees around the world.
  • More than 2,000 employees took part in Financial Wellness Month at their U.S. sites. HP held a live panel discussion with an award-winning personal finance author, HP’s Chief Human Resources Officer Tracy Keogh, and a senior vice president from Fidelity Investments. They also offered follow-up and on-demand workshops as well as targeted financial newsletters.
  • To promote healthy life balance, HP offered a webinar highlighting the latest sleep science. They also rolled out a digital sleep therapy tool to employees in Singapore, Spain, and the United States. Employees who participated saw an average sleep increase of 3.5 hours per week.

Certificates

  • ISO 14001
  • 13 sites have achieved LEED certification (one more is in process)
  • two locations have achieved SITES certification
  • one site has achieved TRUE certification one site 
  • has achieved Green Mark certification.
  • 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)
  • HP is also self certified under the EU/US Privacy Shield,
  • HP information security management system (ISMS) achieved ISO 27001 certification.

UN Sustainable Development Goals

UN SDGs Compliance

SDG 4

  • HP is building effective and innovative education technology solutions.
  • They deploy breakthrough technology solutions that support engaging, personalized educational experiences; partner to develop scalable models for digital inclusion and lifelong learning; and deliver insights that help governments create effective education and human capital development policies and programs.
  • They aim to enable better learning outcomes for 100 million people by 2025, since the beginning of 2015, with a targeted focus on women and girls, and underrepresented and otherwise marginalized groups. 

SDG 5

  •  HP works to grow the pipeline of diverse talent and to recruit and develop female and diverse talent across all levels of the company.
  • They use their scale to influence their suppliers and partners, encouraging them to prioritize diversity and inclusion within their own operations. In their communities, their programs and partnerships aim to empower and support gender equality and address some of the barriers to full participation in society

SDG 7

  • HP is investing in energy efficiency across their product portfolio and operations, and shifting toward less GHG-intensive energy sources to power their global facilities, including on- and off-site renewable power.
  • They aim to reach 100% renewable electricity use in their global operations by 2035.

SDG 8

  • HP believes that all workers deserve fair treatment, safe working conditions, and freely chosen employment.
  • They forbid any forced, bonded, or indentured labor, involuntary prison labor, slavery, or trafficking of persons within their supply chain, and have adopted a broad approach to responsible minerals sourcing to help ensure there is no connection between the materials used in HP products and armed violence or human rights abuses.

SDG 10

  • HP strives to uphold fundamental rights and freedoms of all people.
  • They promote a welcoming, diverse, and inclusive culture and do not tolerate discrimination of any kind.
  • Through their policies, programs, and partnerships, they aim to promote social and economic inclusion for all people across their supply chain and operations and in their communities—regardless of race, ethnicity, gender, nationality, ability, military status, religion, generation, sexual orientation, or views. 

SDG 11

  • Through contributions from HP, the HP Foundation, and their global employees, HP aims to make a positive local impact on the communities where they live, work, and do business.
  • They provide financial support for communities affected by natural disasters and emergencies, and work with expert partners to speed recovery and reconnect vital networks.
  • HP employees contribute their talents, passions, and resources to support inclusive, safe, resilient, and sustainable communities worldwide. 

SDG 13

  •  HP is transforming their entire business to drive progress toward a more efficient, circular, and low-carbon economy.
  • They aim to develop products and solutions that keep materials in use at their highest state of value for the longest possible time, grow the market for recycled content, and offer robust repair, reuse, and recycling programs for their products worldwide.
  • They are investing in disruptive technologies such as 3D printing that will help drive a more sustainable and inclusive Fourth Industrial Revolution. 

SDG 17

  • HP is committed to driving positive, local impact in the communities where they live, work, and do business. Each community faces different challenges and requires different solutions. By working closely with local partners, corporate peers, nonprofits, local governments and others, they tailor their approach to address the unique needs and challenges of each community to help them thrive.
  • HP supports the UN SDGs, the UN Global Compact, the Global Reporting Initiative, and other global efforts to advance sustainable development.

Evaluation

HP Inc. has key certifications for all its sites and buildings, such as LEED, ISO 14001, FSC, and many more. Their sustainable agenda is well established: clear objectives and clear progress.

HP has been listed in great ranks in many important sustainability related lists such as Dow Jones Indices. They are very transparent in their reports and are moving towards their goals steadily.

In addition, HP is compliant with eight of the seventeen UN Sustainable Development Goals. For theses reasons, HP has been rated a B.

Analyst Outlook: Neutral

HP is working towards their targets for a more sustainable future. They are moving in the right direction but still need to overcome some obstacles such as reducing their GHG emissions as they have not been able to achieve their goals sin that area.

Key Points

  •  HP says they are determined in reducing their environmental footprint as their business grows their emissions and water and energy usage increases,
  • It is challenging to see a clear reduction in every aspect of their business so it is important to keep an eye out on their future reports to see how they are dealing with this issue.

 

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