HP 2015 Sustainability Report

Introduction

Environment

Society

Integrity

About this report

Conceptualization of HP’s 3TG supply chain Conceptualization of HP’s supply chain

HP

Mines, exporters, traders, etc.

Smelters 297

Sub-tier 3TG suppliers

Direct 3TG suppliers

Eliminating conflict-related risks from our supply chain

Our objective is to have a supply chain that sources 3TG only from smelters that comply with CFSI’s Conflict-Free Smelter Program (CFSP), which requires a third-party sourcing audit. HP’s goal is for a majority of our 3TG production procurement spend to be DRC conflict-free by the end of 2016. This builds on the work of Hewlett-Packard Company, which starting in 2015 required its suppliers to source tantalum only from CFSP-compliant smelters. We track progress by measuring the percentage of smelters in our supply chain on the Conflict-Free Smelter Program list . We exert influence in our supply chain by: • Directly encouraging smelters that purchase and process mineral ores to participate in a third-party sourcing audit • Engaging with our production suppliers of products containing 3TG to require their smelters to participate in a third-party sourcing audit • Supporting multi-stakeholder collaboration to establish secure conflict-free sources of 3TG ores from the DRC. Suppliers HP has set clear expectations with our production suppliers regarding conflict minerals. We reinforce our expectations annually by communicating our Supply Chain Social and Envi- ronmental Responsibility Policy to 3TG suppliers. We communicate further expectations in HP's General Specification for the Environment and the HP Supplier Code of Conduct . The CFSI developed and maintains the Conflict Minerals Reporting Template (or Template for short), which gives companies a common data format for sharing information about 3TG sources with business partners and suppliers up and down their supply chain. In 2015, Hewlett-Packard Company identified the production suppliers that could be supplying HP with products containing 3TG and required those suppliers to: • Adopt a conflict minerals policy, due diligence framework, and management system, and require the same from their suppliers

Miners using a sluicing technique to concentrate tantalite ore at the Mai Baridi Mine in Katanga Province, Democratic Republic of the Congo

88 HP 2015 Sustainability Report

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