We work with our first-tier production and nonproduction suppliers to reduce their carbon footprint and decrease emissions related to product transportation.
GHG emissions intensity goal
Reduce first-tier production supplier and product transportation related GHG emissions intensity 10% by 2025, compared to 2015
GHG emissions reduction goal
Help suppliers cut 2 million tonnes of carbon dioxide equivalent (CO2 e) emissions between 2010 and 2025
Progress through 2017: Suppliers avoided 1.05 million tonnes of CO2 e emissions
Through December 2016 (the most recent year data is available), first-tier production supplier- and product transportation-related GHG emissions intensity, calculated as a three-year rolling average, increased by 4% compared to 2015. However, between 2015 and 2016 one-year intensity decreased by 6%. As we continue engaging our suppliers to become more energy efficient and use energy from renewable sources, we expect to achieve our goal of a 10% intensity reduction by 2025. WWF has publicly supported this goal,3 confirming the rigor of our goals-setting process. This goal is part of our suite of GHG emissions reduction goals that are components of our SBTivalidated science-based target. We also advanced toward our goal of helping suppliers reduce their carbon footprint by cutting two million tonnes of CO2 e emissions between 2010 and 2025. As of December 2017, our suppliers had achieved 53% of this target through new and ongoing energy efficiency projects, energy management programs, and renewable energy use motivated by engagement with HP. Combined, these efforts have avoided more than 1.05 million tonnes of CO2 e emissions through 2017 and saved our suppliers $86 million in electricity costs alone.
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. Fifty-four percent, by spend, reported doing so in 2016, up from 47% in 2015. By the end of 2016, 38% had set renewable energy use goals.
We also request Scope 3 environmental data from suppliers to encourage awareness of the GHG emissions associated with their own supply chains and products. We will continue to help our suppliers enhance the accuracy and completeness of their energy and GHG emissions calculations and reporting.
Engaging suppliers to reduce GHG emissions
Our Energy Efficiency Program (EEP) in China and Southeast Asia is an initiative for reducing production suppliers’ utility costs and environmental footprint. Since 2010, more than 200 first-tier and sub-tier supplier sites have joined and benefited from EEP. Implemented in collaboration with NGOs such as BSR, the World Resources Institute, and WWF, the program helps suppliers to build capabilities, improve energy efficiency, and explore the use of renewable energy.
In 2017, we continued our collaboration with Natural Resources Defense Council, the China National Institute of Standardization, local agencies, and suppliers in Suzhou, China, to pilot the Strategic Energy Management Program. This three-year trial program aims to enhance suppliers’ operations, technology, and continuous improvement processes related to energy management and will establish best practices and national guidelines for facility energy management to benefit suppliers across China’s IT sector. Since 2010, participants in our programs have saved a cumulative $86 million in electricity costs alone.
Additionally, through our Sustainability Scorecard, we set requirements for our suppliers. We periodically raise our expectations to motivate ongoing improvement. In 2018, we are updating our supplier environmental management criteria to include science based GHG emissions reduction targets and third-party verification of GHG emissions.