HP 2015 Sustainability Report

Introduction

Environment

Society

Integrity

About this report

Monitoring conformance with HP’s Supplier Code of Conduct is also central to our approach. Through rigorous internal and third-party audits, we evaluate supplier performance on key provisions including environmental permits and reporting, pollu- tion prevention and resource reduction, hazardous substances, wastewater and solid waste, and air emissions. Greenhouse gas emissions Our primary environmental focus in our supply chain is reducing GHG emissions due to raw materials use, manufacturing, and product transportation. In 2015, these emissions represented 41% of Hewlett-Packard Company’s carbon footprint. Moving forward, we will: • Set an HP Inc. supply chain GHG emissions reduction goal to drive ongoing progress • Incentivize suppliers to set and achieve their own GHG emissions-reduction goals • Continue engaging with suppliers to improve energy efficiency and reduce GHG emissions • Deploy expanded efficiency initiatives for product transportation suppliers • Provide suppliers with guidance and support tools on GHG emissions reduction To learn more about how we calculate GHG emissions, see the HP carbon accounting manual . Performance In 2015, Hewlett-Packard Company continued to work toward its industry-first goal to reduce the GHG emissions intensity of first-tier manufacturing and product transporta- tion suppliers by 20% by 2020, compared to 2010. 2 Through December 2014, the most recent year data is available, we achieved that goal with a 20% reduction. We calcu- late this metric using a three-year rolling average, to decrease the impact of variance year over year and highlight longer-term trends. Even though we saw a net increase in supplier Scope 1 and Scope 2 emissions in calendar year 2014 compared to 2013, the three-year rolling average emissions intensity did not change during that period due to corresponding reductions in revenue and average greenhouse gas emissions. The company also made progress toward its secondary goal to help suppliers cut 2 million tonnes of carbon dioxide equivalent (CO 2 e) emissions between 2010 and 2020. As of December 2015, 40% of this target had been achieved through new supplier energy efficiency improvement projects and existing programs, cumulatively saving 800,000 tonnes of CO 2 e emissions and more than $65 million.

20 HP 2015 Sustainability Report

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