HP 2015 Sustainability Report

Nonretaliation

3%

16%

Introduction

Environment

Society

Integrity

About this report

14%

31%

Management system Management system nonconformances remained low for most provisions in 2015, indicat- ing relatively strong implementation of SER systems and controls. HP continues to work with suppliers and external partners such as SAI to improve SER management systems. Learn more in the document Supply chain responsibility: Our approach , available online. Conflict minerals The exploitation of natural resources in the Democratic Republic of the Congo (DRC) is being used to fund groups engaged in extreme violence and human rights atrocities. The primary concern involves mineral precursors of the metals tantalum, tin, tungsten, and gold (3TG)—known as “conflict minerals.” This has rightly resulted in global outrage, and calls for urgent action. Any possibility that the manufacture of our products might be connected to armed conflict is unacceptable. HP Inc. is continuing Hewlett-Packard Company’s track record of leadership with a com- prehensive conflict minerals program to conduct due diligence across a diverse supply chain and to catalyse responsible mineral sourcing. We are dedicated to ensuring that any connection between the minerals we use and armed conflict is eliminated. A multi-actor supply chain 3TG metals are found in relatively small amounts in virtually all HP electronic products. The ICT industry is an important user of tantalum compared to other sectors (about 15% of the world’s consumption), and has achieved the most progress related to conflict-free tantalum sourcing. Our industry is a much smaller user of tin (about 0.1%), tungsten (about 2%), and gold (about 3%). 2 For example, a typical laptop has been estimated to contain 2 grams of tin, 0.5 grams of tungsten, and less than 0.33 grams of gold. Multi-industry collaboration is needed to achieve significant progress with those metals. The 3TG supply chain spans the globe with many stages between mine and product. HP is an end user of 3TG metals and there are typically between four and 10 supply chain stages between us and the smelters that purchase and process the ore into metals. HP is focusing on sourcing from smelters that participate in the Conflict-Free Sourcing Initiative (CFSI), since the greatest risk of conflict minerals entering our supply chain is through smelter ore purchasing practices. The supply chain between the smelters and HP—including contract manufacturers, commodity manufacturers, component manufacturers, distributors, subcomponent and part manufacturers, metal material manufactures, and metal importers—presents minimal risk of introducing conflict minerals to our products.

Management system rates of major nonconformances of sites audited Management system (rates of major nonconformanc s of sites audited) Company commitment

2%

3%

Management accountability and responsibility

17%

Legal and customer requirements

8%

Risk assessment and risk management

23%

Performance objectives with implementation plan and measures

13%

Training

5%

Communication

5%

Worker feedback and participation

5%

Audits and assessments

20%

Corrective action process

9%

Documentation and records

6%

Supplier responsibility

28%

87 HP 2015 Sustainability Report

www.hp.com/sustainability