HP’s environmental goals

	Current and future goals

Product reuse and recycling

• Recover (reuse and recycle) 2 billion pounds (900,000 tonnes) of electronic products and supplies by the end of 2010.

Energy goals

2010

In 2007, we added a new 2010 goal for PCs. Our goals are now as follows:

HP will reduce the combined energy consumption and associated GHG emissions of HP operations and products to 25 percent below 2005 levels¹ by achieving the following:

• Operations: HP will reduce energy consumption and the resulting GHG emissions from HP-owned and HP-leased facilities worldwide to 16 percent below 2005 levels.²


• Products: HP will reduce the energy consumption of HP products³ and associated GHG emissions through specific goals for representative product categories, including the following goals for some of HP’s highest-volume printers and servers families:
• Improve energy efficiency for high-volume printer families by 30 percent, relative to 2005⁴
• Improve energy efficiency for high-volume server families by 50 percent, relative to 2005⁵
• Reduce the energy consumption of volume desktop and notebook PC families by 25 percent, relative to 2005⁶
  Progress: We reached 19.2 percent reduction in our combined operations and products energy use at the end of October 2007, the end of HP’s reporting year. We are confident that we surpassed the 20 percent mark by February 2008, more than two and a half years early.

Operations goals

2008

• Continue to divert at least 87 percent of solid (nonhazardous) waste from landfill globally through the end of 2008
• Eighty percent of general office printing and copying to be double-sided by the end of 2008

2010

• Reduce water consumption by 5 percent, compared with 2007

Material use goals

• Establish a system for tracking and reporting the presence of substances of very high concern (SVHC) in our products⁷
• Double the use of recycled plastic in print cartridges in 2008 compared to 2007, to 4,500 tonnes (10 million pounds)

2009

• Eliminate the remaining uses of BFRs and PVC from new computing products launched in 2009 as technologically feasible alternatives become readily available that will not compromise product performance or quality and will not adversely impact health or the environment

Logistics goals

• Use rail for 21 percent of transport miles for our imaging and printing products in North America
  
• Increase accuracy of GHG emissions data for HP product transportation by collaborating with logistics service providers to obtain data for freight they transport on HP’s behalf
  
• Implement the use of plastic pallets for 100 percent of notebook shipments from Asia to the Americas by May 2008
• Implement idling restrictions and dwell-time reductions at more than 50 percent of HP’s U.S. and Canadian distribution centers by August 2008
  
• Participate in U.S. Environmental Protection Agency SmartWay Transportation Program
  
  • Increase use of SmartWay surface transportation carriers to 85 percent in the United States by December 2008
  • Ship 100 percent of North America consumer desktops and monitors using only SmartWay surface transportation carriers, beginning July 2008

Supply chain and environment responsibility goals

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 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

Training

• Implement world-class worker communication and Electronic Industry Code of Conduct 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

	Progress on 2007 goals

Energy 2007

• Increase purchases of renewable energy in the United States to 50 million kWh/year from the 2006 level of 11 million kWh/year
  Progress: In 2007, HP purchased 61.4 million kWh of renewable energy and renewable energy credits in the United States.

Operations 2007

• Continue to divert 87 percent of solid (nonhazardous) waste from landfill globally through the end of 2007
  Progress: Achieved. The global landfill diversion rate was 88 percent in 2007.

Materials 2007

• Eliminate the use of brominated flame retardants (BFRs) in the external case plastic parts of all new HP brand product models introduced after December 31, 2006
  Progress: Achieved with the exception of a single low-volume product due to a materials qualification and production delays.
• Eliminate the remaining uses of BFRs and polyvinyl chloride (PVC) in HP brand products as acceptable alternatives are identified that will not compromise product performance and will lower product health and environmental impacts
  Progress: In 2007, HP set a goal to eliminate all remaining uses of BFRs and PVC from new HP-branded computing products launched in 2009 as technologically feasible alternatives become readily available that will not compromise product performance or quality and will not adversely impact health or the environment. HP continues to identify and test alternative materials for remaining product uses of these materials, both on our own and as part of multi-stakeholder efforts.

Packaging 2007

• Eliminated PVC from our packaging.
  
• Engineered the use of polyethylene terephthalate (PET) materials from 100% percent recycled content, which is now used for all inkjet cartridge blister packs.
  
• When appropriate, we continued to replace expanded polystyrene with molded pulp made from recycled paper, which has become suitable for heavier products due to technical improvements (10 kg maximum weight compared with 5.4 kg). All HP camera products now use paper-based packaging.
  
• Begun using biopolymers, which are biodegradable materials made from crops such as sugar beet and corn.
  
• HP LaserJet toner cartridge packaging now uses 45 percent less packaging material (by weight) than previous designs. This means that 30 percent more cartridges can be shipped on one pallet, and 1,500 more cartridges can ship in one ocean container.
  
• Redesigned HP print cartridge packaging for North America to reduce total weight and increase the proportion of post-consumer recycled material. This saved an estimated 16,800 tonnes of carbon dioxide in 2007 and eliminated more than 3,000 tonnes of PVC (See the case study).

Logistics 2007

• Increase capacity utilization in truck transport in the United States to at least 85 percent (from approximately 80 percent in 2006)
  Progress: There was no change from 2006. HP had a large transition of outbound freight movements from the East Coast to the West Coast that inhibited our trailer-capacity utilization numbers.
• Conduct risk assessment and extend supply chain social and environmental responsibility (SER) policy and program to high-priority logistics suppliers
  Progress: 80 percent of our top global service providers have signed HP’s SER agreement.
• Investigate benefits and requirements for joining the U.S. Environmental Protection Agency’s SmartWay Transportation Program, to determine feasibility of becoming a partner
  Progress: Achieved. We joined the SmartWay program in May 2007.

Supply chain and environment responsibility goals 2007

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.

¹Updated goal: Based on current progress and leadership commitments, HP increased its combined operations and products energy reduction goal from the original 20 percent to 25 percent by 2010.

² HP has revised the baseline year of our operations energy goal to 2005 from 2006 to align with our other energy goals. This is not a change in substance of the goal since we remain committed to the same 2010 energy use target; it is only a change in the baseline year. As HP operations energy use was approximately 1% higher in 2005 compared to 2006, this increases the goal’s percentage reduction to 16% below 2005 by 2010.

³Average energy efficiency per unit shipped using IDC-reported figures for 2005, across identified high-volume product families, using industry standard measurement benchmarks. Identified product families include notebook and desktop computers, inkjet and LaserJet printers, and industry-standard servers.

⁴ Efficiency is defined in terms of kWh (using the Total Electrical Consumption method)/pages per minute. Goal applies to printers referenced in footnote 3. These families represent more than 35 percent of inkjet printers and more than 45 percent of LaserJet printers shipped in 2005.

⁵ Efficiency is defined in terms of kWh/transactions per minute (using SPEC or another benchmark appropriate to the server class). Goal applies to industry-standard servers, referenced in footnote 3. These families currently represent 50 percent of sales volume in this category.

⁶ Energy consumption is defined as watts consumed in idle mode (using the US EPA ENERGY STAR^®; test protocol). Idle mode represents over 75 percent of total energy consumption. The improvement will be calculated by averaging the energy consumption of desktop and notebook platforms across shipped volume.

⁷ This goal replaces the following goal stated last year, to conform to REACH and other similar legislation anticipated in the future: Provide customers, on request, with declarations for the materials listed in the GSE for all new HP products or as required by law.