Energy efficiency

Company information

	Key points

• HP believes it is imperative in today's world of rising energy demand and costs that meaningful measures be taken to increase cost-effective, energy efficient technology. 
• HP has a long history of demonstrating leadership in operational energy efficiency and the company's broad portfolio of energy efficient products and services offer both sustainable growth for large-scale customers and a distinct competitive advantage overall.
• HP's unique, holistic approach includes evaluating a customers' environment and then taking into consideration the multiple variables and needs of that customer to provide the most cost-effective and environmentally sound solution.

	The issue

Energy efficiency is an increasingly important issue affecting society and today's global economy. Related to this issue is mounting pressure from consumers, the business community, policy-makers and NGOs to address energy demand and resource conservation. Countries across the globe are working with the private sector to implement standards on energy efficiency.

	HP’s position

It is imperative in today's world of rising energy demand and costs that measures be taken to increase cost-effective, energy efficient technology.  HP supports the development of a globally recognized energy label (Energy Star) which addresses customer requirements for proof of product compliance to an energy standard,  promotes harmonization by providing an alternative to unique local labels, is based on an industry accepted measurements, and offers industry compliance flexibility (i.e., gold, silver standards).

Global citizenship is a key HP corporate objective, encompassing social and environmental goals. Energy efficiency is a key aspect of HP's environmental strategy.

As such, HP supports:

• Continued investment in basic research and product engineering collectively aimed at bringing innovative and cost-effective products to market that deliver improved energy efficiency and superior customer Total Cost of Ownership (TCO)
• Transparency and reporting of greenhouse gas (GHG) and energy performance
• A harmonized global approach to energy efficiency standards and/or voluntary agreements, such as the Energy Star program
• The development of standards with scientific support and based on input from industry and other relevant stakeholders
• Standards that are performance-based, rather than prescriptive specifications, that take into account a range of factors including life-cycle environmental impacts, product performance, features and cost, future innovation, and that impose only a limited administrative burden

In EMEA, HP supports the European Commission’s Sustainable Energy Europe Campaign 2005-2008 and the ICT (information and communication technology) and Sustainability Forum, launched at the European Parliament. HP works with associations such as the European Computers Manufacturer’s Association (ECMA) and the International Electrotechnical Association (IEC) to promote energy efficiency standardization. HP also supports the Waste Electical and Electronic Equipment (WEE), Restriction of Hazardous Substances (RoHS), and Energy using Products (EuP) Directives.

HP welcomes the potential to close information gaps on certain existing substances thereby allowing downstream users in the information and communication technology (ICT) sector to make better-informed choices on the substances used in processes and products. HP is, however, very concerned that the impact of REACH on downstream users of chemicals has not been sufficiently assessed and that the legislation will, as it stands, negatively affect the capacity and pace of European innovation and will place Europe at a competitive disadvantage compared to the rest of the world.

In the U.S., HP urges the U.S. Senate to pass S.3684 promptly – which is the Senate version of H.R. 5646 and directs the Environmental Protection Agency (EPA) to conduct a study analyzing the rapid growth and energy consumption of computer data centers by the Federal Government and private enterprise. Both of these bills reflect a sound and balanced approach to analyzing the energy impacts of IT infrastructure -- from silicon, servers & software to power & cooling infrastructure in data centers -- while recognizing the importance of encouraging continued investment in basic research and product engineering that can deliver improved energy efficiency through innovative, cost-effective technology.

Additionally, HP is a founding member of the Green Grid -- an open global organization, whose goals are supported by the EPA, which seeks to decrease IT data center energy consumption.

	Impact on HP

By giving product manufacturers the responsibility to manage used products, and by providing them with the flexibility to implement this responsibility, companies can achieve environmental goals in the most cost effective manner.  Manufacturers could implement programs individually or in partnership with retailers, charities, the waste collection and recycling industries, local governments, or others of their choosing.  This flexibility will enable private sector expertise and competition to be incorporated into the system.  Many government bodies around the world have adopted variations of this approach.

This system is superior to alternative proposals based on a point-of-sale fee.  Fee-based recycling programs implemented by government or quasi-government entities may, at first glance, appear attractive, but have several shortcomings: 

• Lack of incentive to design more environmentally friendly products
• New taxes on consumers that unnecessarily raise product prices
• Creation of new government programs with high administrative costs
• Little or no incentives or controls for reducing costs over time
• Unfairness due to the inability of fees to reach remote sales (which are a major and growing portion of the IT market)
• Potential for recycling fees to be diverted for other government functions

	HP actions and outlook

Recently, HP met its goal for all of its products world-wide to meet the standards for use of lead, mercury, cadmium and other restricted chemicals prior to the July 1, 2006 implementation of the RoHS Directive requirements.

HP's leadership in reducing the environmental impact of its technology products has resulted in numerous qualifications that recognize our design and technological innovations. For example:

• Energy Star® is a voluntary energy efficiency program sponsored by the U.S. Environmental Protection Agency. Today, over 1000 models of HP office products are ENERGY STAR® qualified. The U.S. Environmental Protection Agency's ENERGY STAR® program has recently been adopted by Australia, the European Union, Japan and Korea.
• Blue Angel is a German eco-label based on criteria in product design, energy consumption, chemical emissions, noise, recyclable design and take-back programs. Many of HP's most popular printing, imaging and computing products qualify for this eco-label.
• China Energy Conservation Program (CECP) is a energy efficiency program that aims to stimulate production of more resource-efficient products.
• EPEAT (Electronic Product Environmental Assessment Tool) is a procurement tool to help institutional purchasers in the public and private sectors evaluate, compare and select desktop computers, notebooks and monitors based on their environmental attributes.
• The Environmental Choice Program in Canada is designed to maintain or improve the environmental quality of products and/or services available to Canadians. The program also helps customers easily identify those products and services that are more environmentally responsible.  LaserJet printers, multifunction devices, and copiers qualifying for the Environmental Choice Program must be energy efficient, not use CFCs in their manufacturing processes, and have low air emissions for dust and ozone during operation.
• GREENGUARD™ is a certification for low-emission products. Most HP printers meet these standards.
• Japan PC Green Label indicates that the product manufacturer and the product meet general and specific environmental product design and manufacturing, recycling and reuse criteria.
• IT Eco Declaration (formerly NITO) is a voluntary standard certifying that products meet legal and some customer requirements in Denmark, Norway and Sweden.
• Korea Eco-Label indicates that a product meets conservation of resources and pollution prevention criteria.
• Taiwan Green Mark is a Taiwanese eco-label program launched in August 1992 to promote recycling, pollution reduction, resource conservation and guide consumers in purchasing “green” products.
• TCO is a Swedish eco-label for visual displays including criteria regarding electromagnetic fields, visual ergonomics, energy consumption, recyclable design and take-back programs. Most HP computer monitors are TCO certified.

HP's environmental web site at http://www.hp.com/environment has extensive information about environmental product features, recycling services and HP environmental programs and policies. Product specific environmental information can be found in IT Eco Declarations and Material Safety Data Sheets (MSDSs) for many products at http://www.hp.com/go/msds.