Our Board of Directors’ Nominating, Governance, and Social Responsibility (NGSR) committee is responsible for overseeing HP’s sustainability initiatives. The NGSR may review, assess, report, and provide guidance to management and the board regarding HP’s policies and programs relating to sustainability issues, including those related to climate change.
Transforming our business to drive a more efficient, circular, and low-carbon economy addresses the imperatives presented by climate change and is central to HP’s Sustainable Impact strategy. Alongside setting GHG emissions reduction goals to drive progress toward lowering the impact of our business, HP faces and is addressing a range of climate-related risks and opportunities across our value chain.
In late 2019 and early 2020, we undertook a company-wide climate risk assessment, including climate scenario analysis. The scenario analysis looked out to 2030 and 2050, utilizing business-as-usual1 and 1.5°C mean temperature increase1 scenarios based on a combination of data sources. Gauging the potential impact to our business of physical and transition risks and opportunities, this assessment will inform our strategy and management practices moving forward. In 2020, we are engaging business stakeholders to review the assessment findings and determine relevant actions.
HP includes climate change among other environmental, social, and business risks considered in our annual Enterprise Risk
Management process. We manage climate-related risks and opportunities on an ongoing basis as part of relevant functional risk assessment and management activities throughout the company.
The manufacturing, delivery, and use of HP products and solutions requires a substantial amount of natural resources. As part of our commitment to protecting the planet, HP measures our environmental footprint across the value chain to prioritize areas for improvement. We were the first company in the IT industry to publish a full carbon footprint and one of the first to disclose a complete water footprint. Our carbon and water footprints cover our entire global value chain, from suppliers2 to our operations and millions of customers worldwide. The insights we gain through this process help us to continually improve and create a positive and sustainable impact on the planet, our people, and communities where we live, work, and do business.
Please find HP’s Climate Action Policy Position at http://www8.hp.com/us/en/hp-information/global-citizenship/governance/policies.html.
For further information on our climate strategy and collaboration efforts, please see the 2019 HP Sustainable Impact Report at www.hp.com/go/report.
1 Key inputs to our 1.5°C mean temperature increase scenario analysis include: (1) Transition risk assessment using (a) Shared Socioeconomic Pathways - Green Growth Strategy scenario (SSP2); and (b) IEA SDS – Sustainable Development Scenario (SDS). (2) Physical risk assessment using the IPCC 5th Assessment Report (AR5) – Representative Concentration Pathways (RCP) 4.5. Note: at the time our analysis began, our physical risk analytics tool did not factor in RCP 2.6 impact. As such, our physical risk assessment was more reflective of a 2°C scenario.
2 Carbon and water footprint data presented in this section related to our suppliers is calculated using product life cycle assessment-based estimates for materials extraction through manufacturing and product transportation. Supply chain GHG emissions and water withdrawal data is based on a different methodology (see HP 2018 Sustainable Impact Report, page 42)