HP Announces Supply Chain Emissions Reduction Goal
As part of an ongoing effort to improve its product manufacturing and supply chain operations, HP announced a greenhouse gas (GHG) emissions reduction goal for its first-tier manufacturing and product-transportation supply chain partners.
HP’s goal, a first for the information technology (IT) industry, is to drive a 20 percent decrease in its first-tier manufacturing and product transportation-related GHG emissions intensity(1) by 2020, compared to 2010.
“HP has one of the largest supply chains in the industry. It’s imperative to manage it not just efficiently, but also ethically and in an environmentally sustainable way,” said Tony Prophet, senior vice president, Operations, Printing and Personal Systems, HP. “We understand the importance of reducing our carbon footprint, promoting sustainability throughout the IT supply chain and driving innovation that creates a better world and brighter future.”
Developed in consultation with the World Wildlife Fund’s (WWF) Climate Savers Program, the GHG emissions-reduction goal will be driven through a variety of HP-led activities, including:
- Business incentives for suppliers to set and achieve tangible GHG emissions-reduction goals.
- By 2020, direct prevention of 2 million metric tons of GHG emissions across HP’s multitier supply chain, cumulatively, through specific supplier environmental improvement projects, including:
- Expanding HP’s Energy Efficiency Program (EEP) for manufacturing suppliers;
- Instituting specific emissions reduction initiatives with suppliers with GHG intensive operations, e.g., LCD panel manufacturing; and
- Creating product transportation-related efficiency initiatives.
- Public reporting through the company’s Global Citizenship Report (GCR) on supply-chain GHG emissions to create awareness among HP’s supply base and demonstrate progress.
“This is a significant commitment that will have a measurable impact on HP value chain emissions, furthering WWF’s objective of overall climate protection,” said Matthew Banks, senior program manager, Business and Industry, World Wildlife Fund. “We hope others follow the lead of HP in realizing the cost and emissions savings for their suppliers. HP and the other 29 WWF Climate Savers partners have the potential to make immense impact in innovating our way through the planet’s climate challenges.”
HP’s GHG emissions reduction goal for supply-chain partners is the latest in a series of successful initiatives by HP’s supply chain Social and Environmental Responsibility (SER) program. For example, in 2008, HP became the first major IT company to measure and publish aggregated supply chain GHG emissions. Since 2008, HP also has implemented projects that cut emissions from product transport collectively by 190,000 metric tons CO2 equivalents.
Today, the CDP, an international, nonprofit organization that provides a global system for companies to measure, disclose, manage and share vital environmental information, released its CDP S&P 500 Climate Change Report 2013, awarding HP 99 out of a possible 100 points for its CDP Disclosure Score and rating HP in its highest performance band, CDP Performance Band A. The CDP Disclosure Score is based on how well a company tells its climate story, and the performance band indicates how fully a company has integrated a climate change strategy to drive significant reductions in emissions.
“To accelerate our transition to a low carbon economy driven by innovation, we need businesses to set bold targets that translate into action,” said Mark Kenber, chief executive officer, The Climate Group. “The Climate Group’s SMART2020 report was the first to demonstrate the vast potential the ICT sector has in cutting global emissions by 2020. HP’s commitment capitalizes on that potential and is the mark of true low carbon leadership in action. We need to see more companies in the ICT sector following HP’s lead.”
More information about HP’s supply chain environmental sustainability program is available at http://h20195.www2.hp.com/V2/GetPDF.aspx/c03742920.pdf.
- HP calculates intensity as its suppliers’ GHG emissions divided by HP’s annual revenue. This method normalizes performance based on business productivity.