HP has a longstanding commitment and works hard to ensure all workers throughout our supply chain are protected. Our efforts to combat forced labor in the supply chain have been recognized by:
- KnowTheChain - HP was ranked second in its 2020 benchmarking of ICT (Information & Communications Technology) companies. Companies were evaluated based on seven categories: commitment and governance, traceability and risk assessment, purchasing practices, recruitment, worker voice, monitoring, and remedy.
- EcoVadis - HP received EcoVadis’s Platinum Corporate Social Responsibility Rating in 2020 (valid until September 21). HP was named to this ranking for the 11th time in a row being ranked in the top 1% of suppliers assessed in the computers and peripheral equipment manufacturing sector, as well as in all sectors, in this annual corporate social responsibility assessment. This rating system assesses and benchmarks a company’s performance in the environment, labor practices, fair business practices, and suppliers.
- Gartner’s Supply Chain Top 25 List - HP is among the world’s best for how we manage our supply chain, earning the 15th spot on Gartner’s 2020 Supply Chain Top 25 list. Gartner’s list recognizes companies with supply chains that deliver outstanding business performance while showing a strong commitment to corporate social responsibility.
- 2021 Global 100 Most Sustainable Corporations in the World - HP placed 50th overall on this annual listing compiled by Corporate Knights, a Canadian-based media and research company.
- HP was the recipient of a SmartWay Excellence Award 7th year in a row. The awards, given out by the U.S. Environmental Protection Agency (EPA), honor companies that exhibit leadership and innovation in reducing the environmental impact of their supply chains.
In 2002, HP became the first company in the IT industry to launch a Supplier Code of Conduct. HP’s Supply Chain Code of Conduct extended the company’s ability to manage the most complex supply chain in the IT industry and to implement systems for achieving long-lasting conformance to social and environmental standards. As part of the requirements of HP’s Supplier Code of Conduct and specialized labor standards we require suppliers to develop appropriate policies, procedures and associated documentation to adhere to our requirements and any applicable laws and regulations, including those prohibiting forced labor and human trafficking. We confirm the existence and maintenance of those management systems through our audit program.
To ensure that we minimize the social and environmental impact of our worldwide supply chain practices, we have:
- Implemented the use of a Supply Chain Social and Environmental Policy
- Adopted the use of the new Electronic Industry Code of Conduct, which formalizes hp's supplier labour, human rights, health, safety, environmental and ethical expectations
- Strengthened our supplier contract and purchasing agreements to reflect our new expectations
- Communicated our SER (Social & Environmental responsibility) conformance monitoring process
- Conduct audits of our supplier's facilities
- Developed requirements for supplier performance reporting and corrective actions for nonconformance
- Expanded performance results of supply chain SER conformance in HP's annual Sustainability Report
Further details on how we ensure performance in our supply chain
We require all suppliers of HP goods and services to conform to the HP Supplier Code of Conduct and associated standards. Furthermore, our suppliers must pass on these requirements to their next tier suppliers and monitor compliance. The HP Supplier Code of Conduct and associated standards can be found on our Supplier Sustainability Requirements website.
- Risk assessments—Risk assessments help us prioritize how we engage with suppliers through our supply chain responsibility program. Suppliers also complete a self-assessment questionnaire to help us identify sustainability performance risks.
- Capability building—Through programs and partnerships with non-governmental organizations (NGOs), training partners, governmental organizations, and suppliers, we help management and workers improve sustainability performance.
- Performance monitoring—We measure supplier performance in order to understand issues at the supplier level and identify trends across our supplier base. We track supplier issues and trends through our assurance program, which includes both comprehensive audits using HP’s Supplier Code of Conduct, and focused assessments in specific high-risk areas, such as the use of foreign migrant workers. We also use supplier key performance indicator (KPI) monitoring, which collects data on key issues, such as working hours and use of student workers. Following monitoring, we improve performance by approving corrective action plans developed by suppliers.
- Corrective action and remediation—HP requires suppliers to provide a detailed corrective action plan addressing all identified nonconformances (except zero-tolerance items, which are treated independently) within 30 days of receipt of the site audit report. We review these plans and request quarterly reports to monitor progress and subsequent closure of nonconformances. We also conduct follow-up audits to ensure all nonconformances are closed. When progress is inadequate, we intervene to help create a more effective plan.
- Sustainability scorecard—This tool provides suppliers a score that encompasses audit performance (60% of total score), environmental reporting (13%), conflict minerals disclosure (6%), and other social and environmental topics (21%). Suppliers discuss their scorecard with HP as part of regular business performance evaluations that determine ongoing business.
The scorecard incentivizes suppliers by acting as a modifier to the general supplier management score. Suppliers with strong sustainability performance improve their opportunities for new or expanded business. Suppliers with poor sustainability performance risk a reduction in the business they are awarded.
In 2020, we began scoring suppliers against an updated Scorecard, which caused some scores to decrease. It includes additional environmental criteria and adjusted weighting to increase emphasis on sustained improvement,and maintained focus on compliance in core issue areas. During the year, we also raised the thresholds for the Preferred and Acceptable levels to increase performance expectations. The Scorecard applied to suppliers representing 76% of our production spend in 2020.
- Stakeholder engagement—HP engages with a broad range of stakeholders including workers (through interviews, surveys, capability building programs, and our ethics concerns reporting system), industry bodies, governments, socially responsible investors (SRIs), and non-governmental organizations (NGOs) to research and better understand issues of concern regarding sustainability in our supply chain. Stakeholder engagement is a critical step towards coordinated and effective response to important human and environmental challenges. We engage key stakeholders to collaborate on topics and projects regarding responsible sourcing, environmental data and goals, conflict minerals, fair wages, and modern slavery. Local NGO’s have local language skills and cultural sensitivity that proves extremely beneficial to build supplier trust and have a positive and productive relationship.
In selecting and retaining qualified suppliers, HP will show preference to suppliers that meet or exceed our expectations. For more information see Supply Chain Policies and Standards.