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.
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 1.26 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.
Through our Sustainability Scorecard, we set requirements for our production suppliers.
During 2019, we conducted a Supplier Environmental Summit in China. Involving CDP, WWF, and other experts, the event covered the latest climate science, the process for setting science-based targets, best practices related to energy efficiency and renewable energy, and HP’s Sustainability Scorecard supplier environmental management expectations. Eighty representatives from 37 suppliers attended. Also during the year and in collaboration with CDP and WWF, we delivered a focused workshop in Taiwan on climate science and science-based targets for 15 large suppliers representing more than three-quarters of final assembly spend.
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. In the Strategic Energy Management Program, HP collaborated with Natural Resources Defense Council (NRDC) , the China National Institute of Standardization, local agencies, and suppliers in Suzhou to enhance operations, technology, continuous improvement processes, and overall energy management, with a goal to establish best practices and national guidelines for facility energy management across China’s broader IT sector. When available, results of this program may be used to develop future supplier capability building programs.
Since 2010, participants in these and other programs have avoided 1.26 million tonnes of CO2e emissions and saved a cumulative 847 million kWh ($109 million) of electricity, including 54 million kWh ($6.9 million) in 2019.
More broadly, through CDP our production suppliers reported savings of 17.1 million tonnes CO2e and $727 million from reduction initiatives implemented in 2018.4 This demonstrates the scale of ongoing GHG emissions reduction activities throughout our production supply chain, regardless of whether driven by HP’s engagement.
In 2018, the most recent year that data is available, the suppliers that make HP products generated 2.9 million tonnes of Scope 1 and Scope 2 CO2e emissions attributable to HP, 3% more than in 2017. This reflects business growth, which exceeded reductions in supplier GHG emissions. However, the intensity of these emissions per HP annual revenue in 2018 decreased 8% compared to the prior year. We expect suppliers to set science-based targets and reduce absolute emissions over time.
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, 78% reported doing so in 2018, with 47% reporting renewable energy use goals.
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.
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.
In 2019, HP won the U.S. EPA SmartWay Excellence Award for the 6th year in a row, demonstrates leadership in freight supply chain energy and environmental performance for the “Large Shipper” category in the United States.
Product transportation resulted in 1.46 million tonnes of CO2e emissions in 2019, up 12% from the prior year. This rise was due primarily to increased use of air freight related to new tariffs
In 2019, we avoided 25,000 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.
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 2018, the most recent year data is available, our nonproduction suppliers reported 210,000 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 77%, from 75% in 2017. We believe this improvement in disclosure is partly due to our engagement with nonproduction suppliers through the CDP Supply Chain program.