HP 2015 Sustainability Report

Introduction

Environment

Society

Integrity

About this report

2 Refers to first-tier manufacturing and product transportation suppliers. Intensity is calculated as suppliers’ GHG emissions divided by Hewlett-Packard Company's annual revenue. This method normalizes performance based on business productivity. Intensity is reported as a three-year rolling average. Production supplier GHG emissions include Scope 1 and Scope 2. Data is through December 2014, the most recent year data is available. Operations 1 This site count and reported square meters may differ from other published information, such as HP’s Annual Report on Form 10-K for the year ended October 31, 2015, due to the assumptions used for greenhouse gas accounting. 2 Because of the Hewlett-Packard Company separation at the end of 2015, 2010 base year emissions were not recalculated. However, HP will recalculate its base year emissions in the event of merger, acquisition, divestment, and outsourcing activity that changes the baseline by an amount that meets or exceeds a materiality threshold of 10%. Products and solutions 1 The CO 2 reduction was based on a comparison between HP LaserJet Enterprise 506dn and the predecessor product (HP LaserJet Enterprise P3015). CO 2 reduction for cartridges is reported per 1,000 pages printed (Kg CO 2 e/1,000 pages). 2 Fast Cooling is enabled by HP Jet Fusion 3D Processing Station with Fast Cooling, available in 2017. HP Jet Fusion 3D Processing Station with Fast Cooling accelerates parts cooling time vs. recommended manufacturer time of SLS printer solutions from $100,000 to $300,000, as tested in April 2016. FDM not applicable. Continuous printing requires an additional HP Jet Fusion 3D Build Unit (standard printer configuration includes one HP Jet Fusion 3D Build Unit). Based on internal testing and simulation, HP Jet Fusion 3D printing solution average printing time is up to 10 times faster than FDM and SLS printer solutions from $100,000 to $300,000 on market as of April 2016. Testing variables: part quantity: 1 full bucket of parts from HP Jet Fusion 3D at 20% of packing density vs. same number of parts on above-mentioned competitive devices; part size: 30g; layer thickness: 0.1mm/0.004 inches. 3 Based on internal testing and public data, HP Jet Fusion 3D printing solution average printing cost-per-part is half the cost of comparable FDM & SLS printer solutions from $100,000 to $300,000 on market as of April 2016. Cost analysis based on: standard solution configuration price, supplies price, and maintenance costs recommended by manufacturer. Cost criteria: printing 1-2 buckets per day/5 days per week over 1 year of 30 grams parts at 10% packing density using the powder reusability recommended by manufacturer. 4 Does not include graphics printers, which are out of scope for IT ECO declarations. 5 The low-halogen standard = <900 ppm chlorine, <900 ppm bromine, <1,500 ppm chlorine+bromine in any homogeneous material in the products. 6 HP designed ASICs. 7 The following HP LaserJet printers meet the EPEAT criteria 4.1.6.2 to eliminate or reduce BFR/CFR content of printed circuit board laminates, so all circuit boards are low halogen: HP LaserJet Enterprise M506dn (U.S. SKU only), HP LaserJet Pro M402dn (U.S. SKU only), HP LaserJet Enterprise Flow MFP M527c, HP LaserJet Managed Flow MFP M527cm, HP LaserJet Enterprise Flow MFP M527z (U.S. SKU only). 8 Includes recycled plastic as well as recycled metal content. 9 100% of commercial desktop models contain greater than 10% PCR plastic content when configured with a wireless keyboard. 10 Emissions intensity of the Hewlett-Packard Company product portfolio refers to tonnes CO 2 e/net revenue arising from use of high-volume product lines, including notebooks, tablets, desktops, mobile computing devices, and workstations; inkjet and HP LaserJet printers; and Hewlett-Packard Company servers, including industry- standard servers, as well as Hewlett-Packard Company Moonshot and Hewlett-Packard Company Apollo. 11 Expressed as emissions generated per unit of output. Reflective of the Hewlett-Packard Company product portfolio prior to separation. Calculations for personal systems are based on energy use—measured as emissions per unit (a single device). Calculations for printers include energy use, paper, ink, and toner cartridges—measured as emissions per unit (a single device). Calculations for servers are based on energy use, measured as emissions per unit of work (a task performed by the system, as defined by industry standards). 12 Emissions intensity of HP’s product portfolio refers to tonnes CO 2 e/net revenue arising from use of more than 95% of HP product units shipped each year, including notebooks, tablets, desktops, mobile computing devices, and workstations; and HP inkjet, LaserJet, and DesignJet printers, and scanners. Expressed as emissions generated per unit of output, based on anticipated usage. For personal systems products, this reflects energy consumed by each product unit during customer use.  For printing products, this reflects energy and paper consumed to print each page. Through 2015, progress against this goal equaled a 17% reduction. 13 The average energy consumption of HP products was estimated annually between 2005 and 2010 using high-volume product lines representative of the overall shipped product volume. The high-volume product lines include notebook and desktop computers, inkjet and HP LaserJet printers, and industry-standard servers. These calculations were based on different assumptions and methodologies than the 2020 goal. 14 The average energy consumption of HP products was estimated annually between 2010 and 2015 using high-volume product lines representative of the overall shipped product volume. The high-volume personal systems product lines include notebook and desktop computers, tablets, AIOs, workstations, thin clients, and displays. 15 The specific SKUs for the products rated by EPEAT at the Gold level are HP LaserJet Enterprise M506dn (F2A69A#201 and F2A69A#AAZ). 16 The average energy consumption (based on ENERGY STAR® program’s Typical Electricity Consumption (TEC)) of HP products was estimated annually between 2010 and 2015 using high-volume product lines (including HP LaserJet and excluding scanners) that are representative of the overall shipped product volume. 17 The average energy consumption (based on sleep mode power) of HP products was estimated annually between 2010 and 2015 using high-volume inkjet printer product lines representative of the overall shipped product volume. This excludes HP PageWide inkjet printers and large format printers. 18 See endnote 14. 19 http://www.energystar.gov/index.cfm?c=partners.most_efficient_criteria . 20 Based on EPEAT U.S. registration. 21 Based on iNEMI definition of halogen-free.

152 HP 2015 Sustainability Report

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