HP has one of the largest and most sophisticated designed and engineering supply chains in the IT industry made up of hundreds of production suppliers and thousands of nonproduction suppliers.1
An ethical, sustainable, and resilient supply chain protects our business and brand, strengthens customer relationships, and creates opportunities to innovate. We require that all workers receive fair treatment, freely chosen employment, and safe working conditions. We engage with suppliers in a wide range of ways to promote responsibility.
Suppliers representing 95% of HP’s total production supplier spend have gone through a social and environmental assessment, and suppliers representing about 40% of production supplier spend completed on-site social and environmental audits during 2020.
The strength of our supply chain responsibility program enables us to meet and exceed customer expectations. In 2020, approximately $7 billion of HP sales was enabled by eco labels, accessibility, human rights, and supply chain responsibility.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 protect and promote the well-being of the people who make our products, strengthen the communities where they live and work, 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
- GOAL - Develop skills and improve wellbeing of 500,000 factory workers by 2025, since the beginning of 2015
- PROGRESS IN 2020 - 46,000 factory workers participated in five programs during 2020, bringing the total to 312,000 workers trained since the beginning of 2015, 62% of the way to our goal3
- 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 2020 - 13% increase in factory participation, compared to 2015
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.
2In 2020, requirements related to eco labels supported approximately $7 billion in new sales; accessibility more than $6 billion in retained, existing, and new sales; human rights more than $6 billion in potential, existing, and new sales; and supply chain responsibility more than $2 billion in retained, existing, and new sales. In most cases, customer purchasing requirements include multiple criteria, so these numbers should not be totaled.
3Progress through 2020 includes: 77,800 factory workers in 2015; 45,700 in 2016; 119,900 in 2017; 12,000 in 2018; 11,000 in 2019; and 46,000 in 2020. 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.