HP 2015 Sustainability Report

Introduction

Environment

Society

Integrity

About this report

A faster route from Asia to Latin America In 2015, Hewlett-Packard Company launched a major new logistics hub in Panama, which exemplifies our approach to improving product transit routes in ways that benefit our customers, our business, and the environment. This strategic location provides a more direct sea route from Asia to Latin America, allowing HP to bypass Miami and Guadalajara and reduce transit times, freight costs, and associated GHG emissions. The hub’s opening coincides with the Panama Canal’s largest expansion since it opened in 1914. Scheduled for completion in 2016, the canal expansion will double the capacity of the waterway, bringing significant environmental and cost benefits to global product com- panies such as HP. Using this ocean route instead of air transport can lower carbon emissions by more than 40%, while still delivering products to customers in a timely fashion. We anticipate that this shift will also reduce inventory needs by enabling us to ship directly from Panama to customers, and reduce overall transit times for HP prod- ucts between Asia and Latin America. Our investment in a Panama hub will be key to our progress toward an optimized global product transportation network. Less environmentally impactful transport The way we transport HP products impacts our carbon footprint and progress toward our supply chain GHG emissions reduction goal. Air transport is by far the most GHG-intensive mode we use, so shifting to other modes, such as ocean freight, reduces our emissions significantly. In 2015, Hewlett-Packard Company prevented the release of approximately 40,000 tonnes of CO 2 e emissions by converting some notebook shipments from China to other countries in Asia, Europe, and the Americas from air freight to ocean freight. Product packaging also contributes to our product transportation environmental im- pacts. By developing smaller and lighter packaging, we increase shipping densities and reduce transport-related GHG emissions per product. Read more about our innovative Packaging solutions. Supporting improvements across the industry To motivate companies to reduce GHG emissions, HP provides leadership to various logistics-focused environmental associations to help develop industry standard GHG calculation methodologies for freight transport. These include the BSR Clean Cargo Working Group, Global Logistics Emissions Council, Green Freight Asia, Green Freight Europe, the International Air Transport Association, the United Nations Climate & Clean Air Coalition, and U.S. EPA SmartWay sm . In the United States, we ship 100% of our products by truck using SmartWay sm partners, a program designed by the U.S. Environmental Protection Agency to improve efficiency and reduce GHG emissions from road transport. Hewlett-Packard Company is a four-time winner of the SmartWay sm Excellence Award in the large shipper category, including in 2015.

In the United States, we ship 100% of our products by truck using SmartWay sm partners.

23 HP 2015 Sustainability Report

www.hp.com/sustainability