Our Supply Chain Responsibility management system begins with industry-leading policies, standards, and practices founded on our commitment to transparency and desire to support workers, tackle environmental impacts, and benefit HP and our customers. We start with extensive risk sensing to keep us up to date with Sustainability issues, region by region and supplier by supplier. This informs our program design, which we tailor to address specific risks and reflect regional characteristics.
In 2017, HP reinforced its strong leadership in the sustainability space by setting three new goals that align with the UN Sustainable Development Goals and HP’s new sustainability strategy. These goals reinforce much of the work HP did in the last decade to protect and empower workers in its supply chain and drive improvements in sustainability across its supplier base.
Develop skills and improve well-being of 500,000 factory workers
Working with nonprofit partners, we conduct capability building and well-being programs that support workers’ safety, work/life balance, health, and financial security. We pay particular attention to vulnerable groups including women and students as well as foreign migrant workers.
Double the participation of factories in supply chain sustainability programs
To increase impact and elevate sustainability practices in more supplier factories, we have set a goal to double factory participation in our supply chain sustainability programs by 2025, compared to 2015. Our supply chain is expansive, and we are committed to increasing both the number of suppliers that participate in our programs and the depth of their engagement. To have the greatest impact, we match suppliers with programs that best meet their needs.
Reduce supplier GHG emission intensity by 10% compared to 2015
Through December 2015 (the most recent year data is available), first-tier production supplier and product transportation-related GHG emissions intensity decreased by 21% compared to 2010. Moving forward, we have reset our supply chain GHG emissions intensity reduction goal using 2015 as our new baseline. WWF has publicly supported this goal, confirming the rigor of our goals-setting process.
Open communication is part of our culture. It is important that anyone with a concern can speak up without fear of retaliation, using their preferred method of communication. We offer multiple channels convenient for employees and other stakeholders, such as business partners and customers, to ask questions or report a concern to HP. We also provide stakeholders with information about HP’s programs related to specific human rights issues such as combating forced labor and human trafficking. If there is a concern or issue related to human rights, it is immediately escalated through our Ethics and Compliance office. Additionally, HP established a Human Rights Council in 2017 to coordinate due diligence efforts and mitigate risk at a strategic level.
With our suppliers, audits and assessments can be indicative of potential human rights risks. Zero-tolerance items are the most serious type of major nonconformance. Examples include child labor, forced labor, health and safety issues posing immediate danger to life or risk of serious injury, and perceived violation of environmental laws posing serious and immediate harm to the community. Our zero-tolerance policy requires auditors to escalate such items immediately.
Suppliers must rectify these items no later than 30 days after the original audit. HP then reexamines the zero-tolerance item between 30 and 90 days after the audit with an in-person visual verification to confirm resolution of the issue. Zero-tolerance items also result in suppliers being downgraded in our sustainability scorecards and either a reduction or elimination of business if both the zero-tolerance item and the underlying management system deficiencies are not addressed.
Therefore, we work with more than 95% of our high-risk profile suppliers, as well as other stakeholders on sustainability issues. This collaborative work with suppliers includes the following:
Risk assessments—Risk assessments help us prioritize how we engage with suppliers through our supply chain responsibility program. Suppliers also complete a self-assessment questionnaire to help us identify sustainability performance risks.
Capability building—Through programs and partnerships with non-governmental organizations (NGOs), training partners, governmental organizations, and suppliers, we help management and workers improve sustainability performance.
Performance monitoring—We measure supplier performance in order to understand issues at the supplier level and identify trends across our supplier base. We track supplier issues and trends through our assurance program, which includes both comprehensive audits using HP’s Supplier Code of Conduct, and focused assessments in specific high-risk areas, such as the use of foreign migrant workers. We also use supplier key performance indicator (KPI) monitoring, which collects data on key issues, such as working hours and use of student workers. Following monitoring, we improve performance by approving corrective action plans developed by suppliers.
sustainability scorecard—The scorecard incentivizes suppliers by acting as a modifier to the general supplier management score. Suppliers with strong sustainability performance improve their opportunities for new or expanded business. Suppliers with poor sustainability performance risk a reduction in the business they are awarded.
Stakeholder engagement—HP engages with a broad range of stakeholders including workers (through interviews, surveys, capability building programs, and our ethics concerns reporting system), industry bodies, governments, socially responsible investors (SRIs), and non-governmental organizations (NGOs) to research and better understand issues of concern regarding sustainability in our supply chain.
We require all suppliers of HP goods and services to conform to the HP Supplier Code of Conduct and associated standards. Furthermore, our suppliers must pass on these requirements to their next tier suppliers and monitor compliance.
The HP Supplier Code of Conduct and associated standards can be found on our Supplier sustainability requirements website: http://www8.hp.com/us/en/hp-information/global-citizenship/society/supplier-ser-requirements.html.
To learn more about HP Supply Chain Sustainability, see our site at http://www.hp.com/hpinfo/globalcitizenship/society/supply_chain_responsibility.html.