Yes, our GHG emissions intensity reduction goal focuses on reducing first-tier production supplier and product transportation-related GHG emissions intensity by 10% by 2025, compared to 2015.

Although GHG emissions intensity rose between 2015 and 2017 when calculated as a three-year rolling average, yearly GHG emissions intensity values (not calculated as a rolling average) decreased by 7% during that timeframe. To help reach our goal, we encourage our first-tier production and product transportation suppliers to improve energy efficiency, use renewable energy, and set science-based targets. This goal is part of our suite of GHG emissions reduction goals that are components of our Science Based Targets initiative-validated science-based target. WWF has publicly supported this goal, confirming the rigor of our goals- setting process. Since 2010, HP has decreased first-tier production supplier and product transportation-related GHG emissions intensity by 15%.

Our other GHG emissions reduction goal is to help suppliers cut 2 million tonnes of carbon dioxide equivalent (CO2e) emissions between 2010 and 2025. So far, we have helped suppliers avoid 1.16 million tonnes of CO2e emissions.

The progress on this goal is the result of new and ongoing energy efficiency projects, energy management programs, and renewable energy use motivated by engagement with HP. Combined, these efforts have saved our suppliers $98 million in electricity costs alone.

For further information, follow the links for additional datand HP’s 2018 carbon footprint.

Production suppliers

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.

In 2017, the most recent year that data is available, the suppliers that make HP products generated 2.8 million tonnes of Scope 1 and Scope 2 CO2e emissions attributable to HP, 8% more than in 2016. This reflects business growth, and increased emissions from two of our most significant suppliers due to expanded boundaries of GHG emissions inventory and conservative accounting in the first year for high GHG emissions potential substances in newly installed equipment. Year-over-year data is also affected by generally improved supplier data management and reporting processes. 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 spend, 77% reported doing so in 2017, up from 54% in 2016, with 39% reporting renewable energy use goals.

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 and transparent reporting of key environmental information.

Product Transportation:

To improve efficiency, cut costs, and reduce negative environmental impacts, 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, 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.

Product transportation resulted in 1.3 million tonnes of CO2e emissions in 2018, up 4% from the prior year, although HP’s revenue increased by about 12% during that period. This decrease in GHG emissions intensity was partly due to an ongoing shift from air to ocean freight. In 2018, we avoided 30,000 tonnes of CO2e emissions by moving shipments from air to ocean between Asia and the Americas, Europe, and other countries within Asia. Reducing packaging size and weight also decreases emissions.

Nonproduction suppliers

We source a wide range of goods and services not related directly to product manufacturing, such as staffing, telecommunications, and travel. We collaborate with nonproduction suppliers, based on size and sector, to provide training, improve reporting, and reduce GHG emissions.

In 2017, the most recent year data is available, our nonproduction suppliers reported 280,000 tonnes of Scope 1 and Scope 2 CO2e emissions attributable to HP. During that year, the percentage of HP nonproduction strategic suppliers that produced environmental reports increased to 75% from 65% in 2016. We believe this improvement in disclosure is partly due to our engagement with nonproduction suppliers through the CDP Supply Chain program.