HP relies on one of the IT industry’s largest supply chains, made up of hundreds of production suppliers and thousands of nonproduction suppliers.1 Ranging from multinational enterprises to small firms, and operating in countries around the globe, these suppliers provide us with materials, components, and assembly for our products, shipping and delivery to our customers, as well as a wide variety of other goods and services.
We strive for an ethical, sustainable, and resilient supply chain to protect the people making our products, safeguard our business and brand, strengthen customer relationships, and create opportunities to innovate. We require that all workers in HP’s supply chain receive fair treatment, freely chosen employment, and safe working conditions. To reduce our footprint, we collaborate with suppliers to decrease greenhouse gas (GHG) emissions, water use, waste, and other environmental impacts.
We engage with suppliers in a wide range of ways to advance responsible practices. HP’s Supplier Code of Conduct stipulates that suppliers must adopt or establish a management system that ensures compliance with applicable laws, regulations, and customer requirements. The management system must also identify and mitigate risks related to the Code and be designed to facilitate continual improvement in the business’s social and environmental performance
Suppliers representing 95% of HP’s total production supplier spend have gone through a social and environmental assessment.
The strength of our supply chain responsibility program enables us to address customer expectations. In 2021, approximately $2 billion in retained, existing and new sales took supply chain responsibility into account.2
We have uncompromising expectations of ethical behavior by our suppliers, partners, and employees. Our suppliers are our partners. Together, we set shared commitments to drive change and prioritize sustainability alongside other business imperatives. We align our approach with the expectations of the UN Guiding Principles on Business and Human Rights for companies’ due diligence, and comply with the UK Modern Slavery Act, California Transparency in Supply Chains Act, and the Dodd-Frank Act.
Three core principles guide our management of social and environmental topics in the supply chain, driving us to improve the lives of the people who make our products and support our business, and protect the planet by reducing negative environmental impacts.
- We believe that every person deserves to be treated with dignity and respect—We insist that workers in our supply chain have fair treatment, safe working conditions and freely chosen employment.
- Our commitment expands beyond the factory floor—We engage extensively with workers to promote wellness and enhance their skills, empowering them to become leaders in their community.
- We use or global reach to drive lasting improvements—We are transparent about the challenges in our supply chain and we rally business and government to build resilience and respect for human rights and the environment.
Moreover, we want to share our progress:
- PRIORITY - Put workers at the center of our program by offering worker empowerment programs
- Reach 1 million workers through worker empowerment programs by 2030, since the beginning of 2015.3
- PROGRESS IN 2021 - Through 2021, we reached 349,000 workers.
- PRIORITY - Enable suppliers to develop and strengthen their policies, management systems, and mechanisms to take ownership for meeting social and environmental compliance requirements and elevate performance
- GOAL - Double factory participation4 in our supply chain sustainability programs by 2025, compared to 2015.
- PROGRESS IN 2021 - HP has achieved this goal, with a 114% increase through 2021, compared to 2015 (therefore, we will not report on this goal moving forward).
1HP uses the terms “production suppliers,” “product transportation suppliers,” and “nonproduction suppliers” throughout this report. “Production suppliers” provide materials and components for our product manufacturing and also assemble HP products, and are the primary focus of our HP Supplier Code of Conduct audits, assessments, KPI program, Sustainability Scorecard, and capability-building initiatives. “Product transportation suppliers” provide services for the shipping and delivery of HP products. Learn more in Supply chain responsibility: Environmental impact. “Nonproduction suppliers” provide goods and services that do not go into the production of HP products (such as staffing, telecommunications, and travel). These suppliers are a significant focus of our supplier diversity efforts.
2 Retained, existing, and new sales are tracked through internal HP processes that identify customer requests related to sustainability and supply chain responsibility. Sales values take into account total contract values.
3 This replaces and expands on our prior goal to develop skills and improve the wellbeing of 500,000 factory workers by 2025, since the beginning of 2015. Progress through 2021 against that goal includes a total of 349,000 factory workers: 77,800 factory workers in 2015; 45,700 in 2016; 119,900 in 2017; 12,000 in 2018; 11,000 in 2019; 46,000 in 2020; and 37,000 in 2021. Prior to 2020, data included production supplier workers only. In 2020, we expanded the scope of our program to also include nonproduction supplier workers and workers at HP controlled manufacturing facilities. Total does not equal sum of data for each year due to rounding.
4This data does not include participation in RBA audits. “Participation in our supply chain sustainability programs” is quantified by those programs that go beyond audits to build supplier capabilities to meet our standards. This includes deep-dive assessment, weekly reporting of labor metrics, procurement engagement through our supplier Sustainability Scorecard, and in-depth coaching and workshops tailored to supplier risks.