Climate change is one of the most significant and urgent issues facing business and society today. The science is clear, the impacts are serious, and the need to act is essential.
We see the need to act on climate change as our responsibility and vital to the long-term success of our business. We are working to reduce our carbon footprint across the entire value chain through ambitious, science-based greenhouse gas (GHG) emissions reduction goals, investment in renewable electricity, and advances in product energy efficiency. Even more broadly, we continue to support multi-sector actions that aim to address the threat of a warming planet.
We innovate to mitigate the effects of climate change and accelerate the transition to a circular and low-carbon economy—for the sake of our planet, the health, well-being, and prosperity of people and global communities, and the resilience of our business and that of our customers and partners. Four key strategies guide our progress (see graphic). We implement these through the design and delivery of our products and solutions, and through global partnerships that are focused on strengthening natural systems.
These strategies help to transform industry business models and decouple business growth from resource consumption. This supports our efforts to shrink our environmental footprint and that of our customers and to drive long-term sustainable impact.
Keep products and materials in use
Design plays a critical role in determining a product’s environmental impacts. We apply rigorous design principles to improve the environmental performance of our products across the life cycle.
In 1992, we developed our Design for Sustainability program (originally Design for the Environment) to formally consider factors impacting sustainability performance throughout the product design and development phases.
We design our products to last and make them easy to repair, so they stay in use for as long as possible. HP products are rated highly for durability and repairability. We offer refurbishment services for products returned to us, which extend product life, capture more value from natural resources, and reduce environmental impact. In 2019, HP repaired 4.62 million units of hardware (22,500 tonnes) and remarketed/reused 1.21 million units (6,200 tonnes).
Innovative service-based solutions, such as HP Device as a Service and HP Managed Print Services, reduce environmental impacts through extended life, device optimization, and easy take-back. HP’s service-based solutions deliver better value to customers with reduced environmental impact and capital costs. Customers can access the latest technology, while HP manages the fleet, and an ongoing relationship provides valuable insights on end-user behavior and needs. Our service offerings include regular maintenance, which keeps hardware products in use for longer and reduces waste. Decreasing individual product shipments and customer store visits also reduces GHG emissions. At end of service, we recapture value from materials through a range of product repair, reuse, and recycling options.
During 2019, we conducted three life cycle assessments to quantify the environmental benefits of circular business solutions compared to transactional product purchases. Compared with transactional sales, a life cycle assessment (LCA) we conducted shows that DaaS reduces GHG emissions by 25%, improves resource efficiency by 28%, decreases ecosystems impacts by 28%, and reduces human health impacts by 29% for a notebook PC. These improvements are mainly due to keeping PCs in use for multiple life cycles, which avoids the manufacturing of additional devices and extends the life of high-value materials. MPS has been found to reduce GHG emissions by 12%, improves resource efficiency by 13%, and decreases ecosystems impacts by 12% for a multi-function color laser printer. Key drivers include improved device efficiency and reduced materials use (higher duplexing rates and decreased paper waste). The study also shows that electricity use during printing only contributes to a small percentage of overall life cycle impacts. This analysis did not consider potentially higher reuse rates through MPS, which would further increase benefits. HP Instant Ink helps home users and microbusinesses in 18 countries remain productive by ensuring they never run out of ink.1 The service anticipates when ink is running low and sends replenishments and new recycling envelopes straight to our customers’ doors. Customers using this service save up to 50% on ink.2 In addition to these benefits Instant Ink on average decreases the carbon footprint of ink purchase and distribution by 73%, while reducing energy use by 69% and lowering water use by 70%, compared with cartridge purchase and recycling through traditional retail channels.3 Key factors include reduced materials use (higher capacity cartridges, less packaging, and higher recycling rates) and simplified distribution (bulk shipping and avoided trips to the store).
When customers return end-of-service products, our repair, reuse, and recycling programs help to cycle products and materials back through the economy. This circular flow avoids waste and can give materials and products renewed life. These efforts support our transformation toward a more materials-efficient circular model. Aiming to recycle 1.2 million tonnes of hardware and supplies by 2025, since the beginning of 2016, HP has already recycled 528,300 tonnes.
Design out waste and use materials responsibly
To create a circular and low-carbon economy, we must gain the most value possible from the materials we use. Waste is an opportunity for ongoing improvement. We work to eliminate waste through innovative design and use materials thoughtfully and responsibly so that they can safely and efficiently circulate through the economy.
HP is a signatory to the Ellen MacArthur Foundation New Plastics Economy Global Commitment to eliminate plastic pollution at its source. The three key principles of its framework—eliminate, innovate, and circulate—underpin our broad approach to all materials used in our products and packaging.
We aspire to a world where our products and operations use materials and chemicals that cause no harm. For more than two decades, we have worked to move the electronics industry toward safer alternatives to chemicals of concern. See key milestones in our Green Chemistry Timeline.
When exploring safer alternatives to materials currently in use, we follow a precautionary approach and use the National Academies of Science publication A Framework to Guide Selection of Chemical Alternatives and incorporate the GreenScreen® for Safer Chemicals methodology. We screen all of our ink ingredients using the GreenScreen methodology.
HP contributes to standards, legislation, and improved approaches to materials use in the IT sector. As a participating member of Green America’s Clean Electronics Production Network (CEPN), during 2019 we helped CEPN create a chemical prioritization framework, and provided input on a green chemistry screening process and conformance assurance program. We are also involved in several projects under Clean Production Action, including the Business- NGO Working Group (BizNGO) and the Chemical Footprint Project (CFP).
We work to continually reduce the volume of materials in new products to lower the impacts associated with raw materials extraction and manufacturing. In 2019, we used 1.02 million tonnes4 of materials in our products and packaging, of which 398,000 tonnes (39%) were renewable5 and sustainably sourced.
We are both a supplier and user of recovered materials, incorporating increasing amounts of recycled and recyclable content into new HP products. This helps to accelerate global market development for recovered and recycled materials, to support progress toward a circular economy. Our primary focus is on recycled plastic. During 2019, we used a total of 25,560 tonnes of postconsumer recycled content plastic in HP hardware products. We are also working to increase our use of recycled metals.
Through 2019, we manufactured over 4.2 billion HP ink and toner cartridges using more than a cumulative 72,000 tonnes of recycled plastic. This has kept 875 million HP cartridges and an estimated 113 million apparel hangers and 4.69 billion post-consumer plastic bottles out of landfills, instead upcycling these materials for continued use. More than 82% of our Original HP ink cartridges contain 45–70% postconsumer recycled content, and 100% of Original HP toner cartridges contain 5–45% post-consumer or post-industrial recycled content.6 Using recycled plastic instead of new plastic in Original HP ink cartridges reduces the fossil fuel used for plastic production by 69%. The recycled plastic used in Original HP ink cartridges has an average 73% smaller carbon footprint than the virgin plastic used in Original HP ink cartridges.7
The paper used by our customers in HP products represents about 20% of our carbon footprint and 35% of our water footprint. We help customers print more responsibly by designing printers and software to optimize paper use, defaulting many print fleets to double-sided printing, reducing paper waste through HP Managed Print Services, and improving the recyclability of paper by developing solutions for paper de-inking.
Through the HP Sustainable Forests Cooperative, we aim to protect and restore 200,000 acres of forests. This amount of forest would typically produce more paper than used by HP’s consumer printers annually.
In 2016, we set a goal to eliminate deforestation from our paper and paper-based packaging supply chain. Since 2016, we have met our zero deforestation goal for HP brand paper (which represented 58% of HP fiber tonnage in 2019), as it is derived entirely from certified and recycled sources.8 In 2019, the amount of Forest Stewardship Council® (FSC®)-certified fiber in HP brand paper continued to exceed 55%, by weight.
Paper-based product packaging represented the remaining 42% of HP fiber tonnage. As of April 2020, all packaging from our first-tier packaging suppliers meets our zero deforestation requirement, and we continue to work with sub-tier packaging suppliers to meet this requirement by the end of 2020.
Our sustainable packaging strategy focuses on the elimination of unnecessary packaging, innovation in design, and improved circulation of materials, with the objective to enhance customer experience while driving progress toward a circular and low-carbon economy. During the first half of 2020, we introduced a goal to eliminate 75% of single-use plastic packaging by 2025, compared to 2018. We are also making progress toward our goal to produce 100% of paper-based product packaging from certified and recycled sources by 2020. To address packaging at end-of-life, we offer take-back services and regularly update the Recycle your HP packaging guide to help consumers avoid sending packaging materials to landfill.
Create a low-carbon future
The energy consumed by our products during use is one of the largest contributors to our carbon and water footprints. To help our customers decrease energy consumption and GHG emissions, we design for energy efficiency and offer convenient and more sustainable service-based solutions. We use multiple metrics to assess progress and drive improvement.
Since 2010, the energy consumption of our personal systems products dropped by 50%, on average, despite the general increase in software power demands during that period. This included average reductions in energy consumption of 54% in desktops, 38% in notebooks, and 38% in workstations.9
Ongoing design improvements in 2019, including more efficient CPUs and power supplies, contributed to continued reductions in typical energy consumption of our desktops, notebooks, and workstations. A continued shift toward smaller form factor desktops, which tend to use less energy, was also a factor.
Through ongoing innovations such as improved fuser technology, increased print speeds, and enhanced power management, we have driven a multiple decade trend to improve the energy efficiency of HP LaserJet products. This helps our customers reduce energy use in their homes and offices.
During 2019, we continued to achieve energy efficiency gains in our LaserJet products and saw an ongoing shift in the inkjet printer portfolio mix toward more efficient models.
94% of our home and office printer models shipped were ENERGY STAR® Certified. We continue to shift our portfolio to ENERGY STAR® 3.0, a mark of top-performing imaging equipment. For example, HP Color LaserJet and LaserJet Enterprise printers are ENERGY STAR® 3.0 certified. Original HP Toner cartridges with JetIntelligence deliver energy-efficient printing of premium-quality pages and a lower carbon footprint. Printers that use HP EcoSmart lower-melt black toner use 21% less energy, on average, than printers using the previous generation of JetIntelligence cartridges.10
HP is taking steps to make paper use in printing more efficient, through product design features such as pull printing and automatic two-sided printing. New carbon-neutral printing and sustainable forestry initiatives are also helping to reduce or avoid emissions through carbon offsets and sequestration.
Regenerate natural systems
In contrast to the ‘take-make-waste’ linear model, a circular economy is regenerative by design and aims to gradually decouple growth from the consumption of finite resources. However, to address the tremendous environmental challenges that we face, we must look beyond our value chain to actively strengthen the natural systems that support us all. This requires true collaboration within and across industries, and between businesses, governments, nongovernmental organizations, academics, and others, to achieve the scale necessary. Technology is essential to these efforts, and to driving progress toward a more circular and low carbon future.
In 2016, HP launched an ambitious program in Haiti to help tackle the growing challenge of ocean-bound plastics. In partnership with the First Mile Coalition and our supplier partners, we have now built a fully functioning ocean-bound plastics supply chain.
Through September 2019, we have collected more than 35 million plastic bottles to be upcycled into HP print cartridges and hardware products — that’s more than one million pounds (over 450 tonnes) of ocean-bound plastics that might otherwise have washed into the Caribbean Sea.
Through this initiative, we have opened a new market opportunity, providing a steady revenue stream for local collectors, enabling safer working conditions, and supporting local educational opportunities.
We are proud of our progress and recognize that this challenge is bigger than any one company or organization can address. To further advance our progress, in 2018 HP joined NextWave Plastics, a global consortium of worldwide businesses committed to scaling the use of ocean-bound plastics by developing the first global network of ocean-bound plastics supply chains.
HP was announced in January 2020 as a founding member of The Ocean Plastics Leadership Network, a membership community dedicated to accelerating collaborative action to address the ocean plastic pollution challenge.
In January 2020 HP also joined Project STOP, which collaborates with governments and communities in Southeast Asia to create effective waste management systems that eliminate plastics leakage into the ocean and provide solutions that can be replicated in other cities.
HP committed to eliminating deforestation from our paper and packaging supply chains. However, we recognize that to truly address the global challenges related to forest loss, we must look beyond our own supply chain and partner to protect and help regenerate these valuable natural systems. In November 2019, we launched the HP Sustainable Forests Cooperative initiative, realizing the value to business and nature of accelerating forest and biodiversity protection and setting targets informed by science.
In partnership with WWF, the first projects of the Sustainable Forests Cooperative will focus on restoring and improving the management of nearly 200,000 acres (over 80,000 hectares) of forests in Brazil and China, an area equivalent to the size of New York City, by the end of the calendar year 2024. The area of forest that will be under these projects would produce enough paper to run through all HP consumer printers over four years.
In addition to these activities, HP is supporting the development of a Forest Stewardship Council® (FSC®) Consumer Marketplace. This will give consumers an easy-to-use, comprehensive way to find all FSC retail partners and FSC-certified brands as well as a means to purchase certified products. This project will build awareness about the importance of responsibly managed forests and generate demand for FSC-certified products.
Supply chain environmental impact
Our production and nonproduction suppliers are essential partners as we work to drive low-carbon and resource-efficient transformation throughout the value chain. For more than a decade we have worked closely with our suppliers to improve their environmental programs and report progress transparently. Our Sustainability Scorecard is central to our efforts to set expectations, evaluate our suppliers’ performance, and drive ongoing improvement.
We require 98% of our production suppliers, by spend, to disclose key qualitative and quantitative information about environmental management and impacts through HP’s CDP Supply Chain membership. Requested information includes GHG emissions and goals, total and renewable energy use, water withdrawal, climate and water risks, and governance. We periodically raise our expectations to motivate ongoing improvement. These include supplier environmental management criteria such as science-based GHG emissions reduction targets, third-party verification of GHG emissions, and publication of a GRI-based sustainability report, as well as transparent reporting through CDP of key environmental information, including GHG emissions, energy consumption, renewable energy use, and water management.
Our goal to reduce supply chain GHG emissions intensity by 10% by 2025 compared to 201511 is one of HP’s three value chain goals validated by the Science Based Targets initiative. Although GHG emissions intensity remained flat between 2015 and 2018 when calculated as a three-year rolling average, yearly GHG emissions intensity values (not calculated as a rolling average) decreased by 13% during that timeframe. Since 2010, HP has decreased first-tier production supplier and product transportation-related GHG emissions intensity by 24%. To help reach our goal, we focus our suppliers' attention on improving energy management and efficiency, using renewable energy, and setting science-based targets.
We engaged 98% of our first-tier production suppliers, by spend, to help reduce their environmental impact. Overall, 94% reported having GHG emissions reduction related goals. We also encourage suppliers to use renewable energy. By spending, 78% reported doing so in 2018, with 47% reporting renewable energy use goals.
To improve efficiency, cut costs, and reduce negative environmental impacts in product transportation, we work to optimize our logistics network by consolidating shipments, identifying new routes, and shipping directly to customers or local distribution centers.
We require our product transportation suppliers to use the Global Logistics Emissions Framework to standardize emission calculations. This system, which HP helped to develop in 2016 with the Global Logistics Emissions Council (GLEC), provides more specific, fuel-based, or other GLEC-compliant data that accounts for variation in different locations. To drive progress across the industry and beyond, we are working with the Clean Cargo Working Group, Green Freight Asia, the United Nations Climate & Clean Air Coalition, and the U.S. Environmental Protection Agency (EPA) SmartWay program.
We continue to use SmartWay partners for 100% of our products shipped by truck in the United States and Canada. The program aims to help improve road transportation efficiency and reduce GHG and other emissions. In 2019, HP won the U.S. EPA SmartWay Excellence Award for the 6th year in a row, demonstrates leadership in freight supply chain energy and environmental performance for the “Large Shipper” category in the United States.
Many of our suppliers operate in regions where water stress is a growing threat. We work with product suppliers to improve water management in their operations. To identify supplier sites located in water-stressed areas, we use water risk assessment tools such as the World Resources Institute’s Aqueduct Water Risk Atlas tool. We also identify sites that manufacture relatively water-intense product types and use this information to assess overall water stress risks and opportunities. We ask our suppliers to report water risk, use, and management information through the CDP Supply Chain program. To further drive improvements, we include water stewardship criteria in our supplier Sustainability Scorecard. Suppliers are scored for transparently reporting quantitative water withdrawal as well as for having a public company-wide policy or governance structure for water at the board of directors or top executive level.
We also work with production suppliers to encourage waste measurement and reporting, reduce waste volumes, and drive progress toward a circular economy. HP requests our suppliers to report on waste using the RBA environmental survey.
At our 174 sites in the United States and approximately 58 other countries around the world, we are taking action to reduce our greenhouse gas (GHG) emissions, energy and water consumption, and waste generation. While GHG emissions associated with HP’s operations represent just 1% of our overall carbon footprint, it is the area where we have the greatest control and influence, and therefore the greatest ability to make an immediate impact.
When feasible, we pursue environmental management and green building certifications at HP owned and leased facilities worldwide. As of the end of 2019, 21 facilities (including all HP manufacturing sites) were certified to ISO 14001 (the most recent version), with 17 as part of our global ISO 14001 certificate. As of the end of 2019, 7 facilities (including 29% of HP manufacturing sites) were certified to ISO 45001/OHSAS 18001 for occupational health and safety.
As of 2019, 18 sites have achieved LEED certification or local equivalent; two locations have achieved SITES certification, and one site has achieved TRUE certification.12 All new build-outs target the LEED v4 Gold Standard or a local equivalent such as BREEAM as the basis for the design. In support of these objectives, we have developed the HP Green and Smart Construction Playbook for project managers.
Most of our GHG emissions from operations are related to the energy used to power our facilities. Our global operations produced 215,800 tonnes of Scope 1 and Scope 2 CO2e emissions during 2019, a 44% decrease compared to 2015, making progress toward our science-based goal of a 60% reduction by 2025. GHG emissions intensity equaled 3.7 tonnes of CO2e per $ million of net revenue in 2019, a 5% reduction from 2018. The main drivers for GHG emissions reduction included decreases in energy use through efficiency projects and site consolidation and renewable energy purchases.
During 2019, our main tactics to reduce energy use included a multi-site chiller plant optimization initiative, compressed air optimization, smart building initiatives, retro-commissioning, conversion to LED lighting, and lighting control upgrades. In 2019, we implemented 29 projects at 18 locations, projected to save 8,700 MWh annually.
By 2035, we aim to use 100% renewable electricity to power our global operations. In 2019, we procured and generated 240,398 MWh of renewable electricity globally (92% wind, 4% solar, and 4% hydro). Renewables accounted for 43% of our global electricity consumption, compared to 47% in 2018.
By 2025, we aim to reduce GHG emissions from HP owned or leased auto fleet vehicles by 10%, compared to 2015. HP is one of 10 founding members of EV100, a Climate Group initiative launched in 2017 to accelerate the adoption of electric vehicles (EVs) worldwide. In support of this effort, we have committed to install EV infrastructure at all feasible sites worldwide by 2040. In 2019, we offered EV infrastructure at 32% of the 85 target sites.
Water consumption associated with our operations makes up 2% of our total water footprint. We use the World Resource Institute’s Aqueduct Water Risk Atlas tool to assess the risk of sites and prioritize water-stressed locations.
Water consumption intensity per $ million of net revenue decreased by 15% between 2018 and 2019. We reduced potable water use by 18% in 2019 compared to 2015, exceeding our goal six years early of a 15% reduction by 2025. HP reused 301,000 cubic meters of water13 globally during 2019 for landscaping and indoor plumbing fixtures. This was equivalent to 10% of total water consumption. The company also captured and used 1,000 cubic meters of rainwater for cooling towers during the year.
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 Based on plan usage, Internet connection to eligible HP printer, valid credit/debit card, email address, and delivery service in your geographic area. The number of countries is as of February 2020.
2 Based on monthly subscription cost using only all pages in plan vs. cost per page of most color inkjet printers < $399 USD. Color inkjet printers are selected by the market share of IDC CYQ1 2019 Hardcopy Peripherals Tracker Final release. Standard cartridge CPP is as per the Gap Intelligence Ink Monthly (5/12/2019) 201905Wk2 report.HP calculations based on Energy Star normalized TEC data comparing the HP LaserJet 300/400 series and 500 series monochrome printers introduced in spring 2019. HP 58/59/76/77A/X compared to HP 26A/X, and HP 89A/X/Y compared to HP 87A/X.
3 Compared with non-subscription purchase of the same HP Ink cartridges. Based on a 2020 life cycle assessment (LCA) performed by Four Elements Consulting and commissioned by HP.
4 This number does not include commercial and industrial graphics printing solutions, packaging for those solutions, scanners, or personal systems accessories sold separately.
5 Renewable material, as defined in the Global Reporting Initiative standards, is “material derived from plentiful resources that are quickly replenished by ecological cycles or agricultural processes, so that the services provided by these and other linked resources are not endangered and remain available for the next generation.” This data includes paper, paper-based packaging, and wood pallets.
6 80% of Original HP ink cartridges contain between 45-70% recycled content. 100% of Original HP toner cartridges contain between 5-45% post-consumer or post-industrial recycled content. Does not include toner bottles. See www. hp.com/go/recycledcontent for the list.
7 Compared with non-subscription purchase and distribution of the same HP Ink cartridges in stores. Based on a 2020 life cycle assessment (LCA) performed by Four Elements Consulting and commissioned by HP.
8 Less than 2% of paper by tonnage is not labeled as certified but is made from certified fiber. Recycled fiber for paper products is included in the FSC-certified value.
9 The average energy consumption of HP products was estimated annually between 2010 and 2019 using high-volume product lines representative of the overall shipped product volume. The high-volume personal systems product lines include notebook and desktop computers, tablets, all-in-ones, workstations, thin clients, and displays.
10 HP calculations based on Energy Star normalized TEC data comparing the HP LaserJet 300/400 series and 500 series monochrome printers introduced in spring 2019. HP 58/59/76/77A/X compared to HP 26A/X, and HP 89A/X/Y compared to HP 87A/X.
11 Intensity is calculated as the portion of first-tier production and product transportation suppliers’ reported GHG emissions attributable to HP divided by HP’s annual revenue. This method normalizes performance based on business productivity. Intensity is reported as a three-year rolling average to decrease the impact of variance year over year and highlight longer-term trends. Production supplier GHG emissions include Scope 1 and Scope 2.
12 As of October 31, 2019.
13 This consisted entirely of NEWater (ultra-purified wastewater used in manufacturing operations in Singapore). Rainwater is not included.