HP 2015 Sustainability Report

Introduction

Environment

Society

Integrity

About this report

Key findings

Distribution of major nonconformances by section of HP Supplier Code of Conduct, 2015* percentage of total

Environmental (rates of major nonconformances of sites audited) Environmental permits and reporting

d)

23% Labor

24% Management system

22%

9%

Pollution prevention and resource reduction

5%

3%

Hazardous substances

38%

9%

Wastewater and solid waste

5%

0%

7% Ethics

Air emissions

8%

3%

Storm water management

14%

7%

15% Environmental

31% Health and safety

Energy consumption and GHG emissions

5%

2%

1%

Ethics (rates of major nonconformances of sites audited) Business integrity

0%

* Data is from audits; data from assessments is not included. Audit data does not necessarily represent the same supplier sites as the previous year.

1%

3%

5%

No improper advantage

Labor In 2015, Hewlett-Packard Company focused on strengthening policies and programs to improve labor rights and working conditions at supplier sites. Working hours has been the most prevalent labor challenge in the supply chain, with 63% of audits in 2015 resulting in major nonconformances. For information about working hours performance among suppliers in our KPI program, see Working hours and day of rest . The company saw an increase in nonconformances with nondiscrimination manage- ment systems requirements (from 2% to 11%). This increase can be explained in part by the fact that in 2015, the requirement was expanded to include religious accommo- dation, which was new to many suppliers that consequently lacked policies to ensure this protection. Audit findings showed a marked improvement in conformance with requirements for freely chosen employment management systems compared to 2014 (from 24% to 19%). This reflects an increased number of re-audits in which suppliers better under- stand expectations and requirements. The implementation of the new HP Foreign Migrant Worker Standard has also improved our ability to identify violations, such as the 3% nonconformance rate for presence of forced labor. For more information, see Zero-tolerance audit findings . Environmental (rates of major nonconformances of sites audited) Environmental permits and reporting Pollution prevention and resource reduction Hazardous substances Wastewater and solid waste Air emissions Storm water management 22% 5% 38% 5% 8% 14% 5% Energy consumption and GHG emissions Ethics (rates of major nonconformances of sites audited) Business integrity 3% 24% Management system 7% Ethics 15 Environmental

Disclosure of information Intellectual property Labor (rates of major nonconformances of sites audited) Freely chosen employment management systems 19% Fair business, advertising, and competition 3% 6% Labor rates of major nonconformances of sites audited 3%

d) 8%

Protection of identity

5%

7%

3%

Presence of forced labor

9%

Responsible sourcing of minerals

0%

Young worker protection management systems

9%

Privacy

3%

2%

Presence of child labor

0%

Nonretaliation Working hours

3%

6%

63%

4%

27%

Wages and benefits

1%

Humane treatment

2%

2%

11%

Nondiscrimination management systems

Management system (rates of major nonconformances of sites audited) Company commitment Presence of discriminatory practices

0%

3% 11%

Freedom of association

Management accountability and responsibility

17%

5%

No improper advantage

Legal and customer requirements

8%

3%

Disclosure of information

Risk assessment and risk management Health and safety (rates of major nonconformances of sites audited) Occupational safety 38% Performance objectives with implementation plan and measures 23% 13%

3%

Intellectual property

6%

Fair business, advertising, and competition

Protection of identity

85 HP 2015 Sustainability Report Training Emer ency preparedness

5% 47%

5%

www.hp.com/sustainability

Communication Occupational injury and illness

5% 30%

9%

Responsible sourcing of minerals