Nonconformance rates vary widely for different sections and provisions of our Supplier Code of Conduct. Labor and Health and safety represented more than two thirds of total nonconformances identified in 2017.

For audits conducted in 2017, suppliers were in full conformance (no nonconformances identified) in the following provisions: risk of child labor, business integrity, intellectual property, privacy, and worker feedback and participation.

Five provisions (see table on the next page) out of 46 total represented 50% of all nonconformances identified. We focus on these and other areas which have the greatest potential for improvement.

Immediate priority findings are the most serious type of supplier nonconformance and require immediate action. These include child labor, forced labor, severe forms of discrimination, 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. We take such findings very seriously and require suppliers to cease all related practices and report corrective actions taken within 30 days of the original audit. Recruitment fees must be reimbursed within 90 days from discovery and are verified by an on-site inspection within 180 days from discovery. We follow up closely to

ensure that all required corrective actions are completed and visit sites to confirm resolution. Immediate priority findings do not necessarily involve termination of the supplier; we work with suppliers as appropriate to improve their performance and worker conditions in these areas.

For information on findings and corrective actions for the most recent fiscal year, we invite you to visit HP’s Modern Slavery Act Transparency Statement