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. As such, we work to reduce our environmental impact across our entire value chain. In support of these efforts, we are investing in renewable electricity, setting public and science-based greenhouse gas (GHG) emissions reduction goals, and transparently reporting on our progress.
Our aim is to transform our entire business for a more circular and low-carbon economy and offer customers our most sustainable portfolio of products and services so that they can achieve more with less environmental impact. Our efforts include developing solutions that keep materials in use at their highest state of value for the longest possible time, ensuring the materials in our products are properly repurposed at end of service, and shifting from transactional product sales to service models.
HP product materials, manufacturing, transport, and use account for 98% of our value chain carbon footprint. Applying sustainable design principles across our portfolio is key to reducing our footprint, while delivering better performance for our customers and benefiting the planet, our people, and communities worldwide.
Through our Sustainability Scorecard, we set requirements for our production suppliers. During the year, the Sustainability Scorecard applied to nearly 60% of our production suppliers, by spend. We periodically raise our expectations to motivate ongoing improvement. In 2018, we updated our supplier environmental management criteria to include science-based GHG emissions reduction targets and third-party verification of GHG emissions, as well as transparent reporting of key environmental information, including GHG emissions, energy consumption, and renewable energy use. In 2019, we are adding more suppliers to our scorecard process to extend our engagement further into our supply chain. During the year, with the help of CDP, we conducted a webinar to educate suppliers on climate science and science-based targets and our expectations in this area. With several other technology companies, we also held a day of training to help suppliers understand environmental changes to the Responsible Business Alliance (RBA) Code of Conduct, including those related to GHG emissions.
In 2018, we completed a three-year pilot of the Strategic Energy Management Program, in collaboration with Natural Resources Defense Council (NRDC), the China National Institute of Standardization, local agencies, and suppliers in Suzhou. Through this initiative, we collaborated with suppliers to enhance their operations, technology, continuous improvement processes, and overall energy management, and to establish best practices and national guidelines for facility energy management across China’s broader IT sector. Two HP suppliers in the program reported combined annual savings of greater than 7,000 tonnes of CO2e emissions, 500,000 cubic meters of water, and more than $1 million.
Our Energy Efficiency Program (EEP) in China and Southeast Asia, implemented in collaboration with NGOs such as BSR, the World Resources Institute, and WWF, helps suppliers to build capabilities, identify ways to improve energy efficiency, and explore the use of renewable energy. Since 2010, participants in these programs have saved a cumulative $98 million in electricity costs alone, including $7 million in 2018.
We require our product transportation suppliers to use the Global Logistics Emissions Framework, which we helped develop in 2016 with the Global Logistics Emissions Council, to standardize emission calculations. To drive progress across the industry and beyond, we are working with the Clean Cargo Working Group, Green Freight Asia, the International Air Transport Association, 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 improves road transportation efficiency and reduces GHG emissions.
The energy consumed by our products during use is one of the largest contributors to our carbon and water footprints. We use multiple metrics to assess progress and drive improvement. Since 2010, the energy consumption of our personal systems products dropped by 44%, on average, despite the general increase in software power demands during that period. This included average reductions in energy consumption of 47% in desktops, 34% in notebooks, and 30% in workstations.(1) During that timeframe, we have also reduced energy consumption of our HP LaserJet portfolio by 56%, on average,(2) and the energy consumption of our HP inkjet portfolio by 20%, on average.(3)
Key drivers in 2018 included:
- Personal systems: Ongoing design improvements, including more efficient CPUs and power supplies and a shift toward small form factor desktops, contributed to continued reductions in typical energy consumption of our desktops, notebooks, and workstations.
- Printing: We continue to improve energy efficiency in our LaserJet products. See Home and office printing. Other factors in 2018 included improved LaserJet and inkjet power usage data, shifts in the inkjet printer portfolio mix toward more efficient models, and shipping more PageWide web presses, which have high duplexing rates.
Following the HP materials strategy, we are pushing toward a circular model of production and consumption, using materials efficiently and responsibly, keeping them in use for as long as possible, and recycling and reusing products at end of service. 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 approach to product materials use, paper, and packaging.
HP is both a supplier and user of recovered materials, incorporating increasing amounts of recycled and recyclable content into new HP products. This helps to accelerate the development of recovered materials markets around the world, which supports progress toward a circular economy.
We use a variety of plastics recycled from the HP Planet Partners recycling program to manufacture new HP ink and toner cartridges. Through 2018, we manufactured over 4.2 billion HP ink and toner cartridges using more than a cumulative 107,000 tonnes of recycled plastic. This has kept 830 million HP cartridges and an estimated 101 million apparel hangers and 4.37 billion postconsumer plastic bottles out of landfills, instead upcycling these materials for continued use. We continue to use recycled content plastic (RCP) in our personal systems and printers—13,150 tonnes total in 2018.
We help customers print more sustainably by responsibly sourcing the paper we sell, facilitating more efficient paper use, and collaborating across the paper industry to encourage best practices. In our operations, we apply these principles through our Environmentally Preferable Paper Policy, the first forestry policy published by an IT company. We require our suppliers and licensees to follow this policy for the paper and packaging they provide.
We continue to give preference to Forest Stewardship Council® (FSC®)-certified fiber where available. Programme for the Endorsement of Forest Certification (PEFC) certification or relevant national certification schemes can also be used if they comply with our paper policy. We work with WWF Global Forest & Trade Network (GFTN) – North America, FSC, and our suppliers to determine the source of virgin fiber and to increase the amount of certified fiber.
The paper used by our customers in HP products represents about 21% 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.
Since 2016, we have met our zero deforestation goal for HP brand paper, as it is derived entirely from certified and recycled sources.4 In 2018, the amount of FSC - certified fiber in HP brand paper continued to exceed 55%, by weight.
For further information on our climate strategy and collaboration efforts, please see the HP Sustainable Impact Report at: www.hp.com/go/report.
1 The average energy consumption of HP products was estimated annually between 2010 and 2018 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.
2 The average energy consumption (based on ENERGY STAR® program’s Typical Electricity Consumption (TEC)) of HP products was estimated annually between 2010 and 2018 using high-volume product lines representative of the overall shipped product volume.
3 The average energy consumption (based on sleep mode power) of newly introduced HP products was estimated annually between 2010 and 2018 using high-volume product lines representative of the overall shipped product volume. The high-volume product lines include HP inkjet printers and exclude PageWide inkjet printers and largeformat printers.
4 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.