Goals

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Goals for 2007

Operations

• 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.

Logistics

• 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.

Goals for 2008

Logistics

• 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

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

Goals for 2010

Operations and products

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 HP’s high-volume printer, server, and desktop and notebook PC 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 high-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.

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.
³ Average 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.