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| Goals for 2007
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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 |
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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 |
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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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