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FY07 Global Citizenship Report

» Introduction
» Global citizenship at HP
» Ethics and compliance
» Supply chain responsibility
» Performance
» Audit results
» About HP’s supply chain
» Approach
» Standards
» Assessing conformance
» Collaboration
» Third-party audits
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» Supplier diversity
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Goals for 2007
Supply chain social and environmental responsibility (SER)

Training

  • Complete initial training programs in China (FISI) and Central Europe (CESR)
    Progress: Twelve-month FISI training completed in China; CESR completed 18 months training
  • Design and launch next phase of FISI China training; conduct auditor training and supplier forums in Brazil, Central Europe, China, India, Southeast Asia and Vietnam
    Progress: FISI advanced training developed and being delivered; hard disk drive supplier training launched in Thailand; trip undertaken to Vietnam in October to meet with suppliers
  • Co-lead program in China to create a capability-building strategy for the electronic sector in cooperation with World Bank, Chinese Government and Shenzhen Electronics Association
    Progress: Foreign Investment Advisory Service (FIAS) pilot launched; final report completed; suppliers selected for pilot worker hotlines, worker rights training, health and safety committees, and management system integration

Integration

  • Engage and assess 95 percent of product materials, components, manufacturing and transportation suppliers by number and by spend
  • Audit 95 percent of high-risk product materials, component and manufacturing supplier sites
  • Conduct initial risk assessments and complete first-tier supplier engagement with 45 suppliers
  • Conduct new and follow-up verification audits at 100 sites
    Progress: (for the four targets above): Engaged, assessed and audited more than 95 percent of targeted suppliers by number and by spend, including assessing 45 new suppliers; conducted 150 site audits.
  • Integrate recommendations from 2006 third-party auditing process review and continue external verification model
    Progress: We revised business models, focused more on corrective actions, participated in joint industry audits, engaged with third-party auditors, reviewed audit and business models, and increased auditor training.

Collaboration

  • Transition HP suppliers to use industrywide automated systems for self-assessment
    Progress: The EICC Group launched E-TASC in August 2007, and HP is inviting suppliers to participate.
  • Launch standardized risk and supplier assessment tools with EICC and GeSI electronic industry groups and integrate into HP’s processes
    Progress: Self-assessment and risk assessments have been finalized and uploaded into E-TASC.
  • Test third-party monitors that have been qualified by EICC and communicate benefits of improved worldwide monitoring standards to larger CSR community
    Progress: Third-party audit firms and auditors have been selected and trained, and we are conducting joint industry audits.
  • Pilot industrywide reporting format and tools for communicating progress to stakeholder community
    Progress: This project has been delayed by the industry, and the tools have not been fully developed.

Innovation

  • Design strategy for determining environmental footprint of HP’s supply chain
    Progress: We started to develop strategy and plan for launch in 2008. HP also joined the Carbon Disclosure Project Supply Chain Leadership Collaboration project in late 2007 to help develop a consistent and appropriate methodology for disclosing energy use and greenhouse gas emissions throughout the supply chain.

Supplier diversity

  • Award $3.1 billion of U.S. purchases to U.S.-based small businesses
    Progress: Achieved-$3.106 billion
  • Award $1.0 billion of U.S. purchases to U.S.-based minority-owned small businesses
    Progress: Not achieved-our spending was $0.67 billion.
  • Award $400 million of U.S. purchases to U.S.-based woman-owned small businesses
    Progress: Achieved-$440 million
  • Establish goals for diverse supplier spending in Europe
    Progress: We are still working toward this goal.
Goals for 2008

Supply chain SER

Training

  • Implement best-in-class supplier training programs, including programs aimed at second-tier suppliers
    • FISI China advanced training and FISI intro training for new set of suppliers
    • ASK, India supplier, government and NGO research project, assessments and training
    • Thailand and Southeast Asia hard-disk drive supplier training
    • Mexico recruiter certification, worker communication, and Electronic Industry Code of Conduct (EICC) awareness training

Integration

  • More fully Integrate SER into supplier sourcing decisions and provide metrics for product materials and manufacturing sourcing managers
  • Conduct new and follow-up verification audits at 100 sites, including joint industry and external verification
  • Engage and assess high-priority goods and services suppliers to HP’s operations in supply chain SER program

Collaboration

  • Support industrywide reporting format and tools and begin aggregate reporting
  • Complete pilot project and participate in industrywide training efforts based on FIAS capability-building strategy prepared in 2007

Climate and energy

  • Report energy use and associated greenhouse gas emissions in HP's first tier suppliers representing more than 70 percent of our materials, components and manufacturing supplier spend

Supplier diversity

  • Award 13 percent of qualified U.S. purchases to U.S.-based small diverse businesses.
  • Award 7 percent of qualified U.S. purchases to U.S.-based woman-owned small businesses
  • Complete mentor-protégé supplier development rotations with three diverse HP suppliers
  • Conduct two HP Connect 2008 events to match diverse suppliers with HP procurement buyers and create potential contract opportunities
  • Institute an enhanced second tier diversity spend program to systematically aggregate and report the diverse spend of HP's top suppliers

Goals for 2009

Training

  • Implement world-class worker communication and EICC awareness training
  • Auditors trained and accredited to new EICC monitoring standards

Integration

  • Conduct new and follow-up verification audits at 100 sites, including joint industry and external verification; focus on biggest challenges / root cause by region
  • Conduct SER audits of high-priority goods and services suppliers to HP’s operations

Collaboration

  • Participate in cross-industry and NGO training efforts

 

 

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