HP 2015 Sustainability Report

Introduction

Environment

Society

Integrity

About this report

• Enable direct suppliers to engage their supply chain to identify 3TG producing smelt- ers linked to HP products • Aggregate the results of due diligence conducted on their supply chain • Submit a completed Template identifying the individual smelters associated with their supply chain for HP products. (However, most Templates continue to represent the supplier’s entire supply chain.) • Transition to smelters that have completed a third-party sourcing audit (smelters on the CFSP list) If any 3TG supplier reports sourcing from a smelter that triggers one of our potential risk indicators, we request the supplier to investigate further to establish whether the unverified material may be used in HP products. When we identify a risk of this occurring, we request the supplier to remove the smelter from our supply chain. We assess suppliers’ Template submissions and policies, and follow up by specifying corrective actions to achieve full compliance with our expectations. HP also supports production 3TG suppliers with training materials on how to complete the Template and offers one-on-one training on request. During calendar year 2015, Hewlett-Packard Company obtained acceptable responses from 3TG production suppliers representing more than 98% of 3TG production procure- ment spend. Smelters All of the tantalum smelters reported to be in our supply chain, whether or not they are sourcing from the Covered Countries (the DRC and nine adjoining countries), are compli- ant with the CFSP. HP’s journey toward DRC conflict-free minerals beyond tantalum depends on increasing the number of smelters in our supply chain that are on the CFSP list. By working with our production suppliers, we have identified the smelters in our supply chain and directly engaged with most that have not yet participated in the CFSP to request that they do so. In practice, it is very challenging for HP to influence a smelter’s decision because we are not their direct customer. A smelter’s decision to participate in a third-party audit program is predominantly influenced by pressure from its direct customers, and HP’s requests are often ignored. We have identified smelters that have refused to participate in a third-party sourcing audit and are working to remove them from our supply chain. HP’s 2016 conflict minerals disclosure includes a list of all smelters reported to us regardless of whether they source from the DRC and adjoining countries. This disclosure continues our legacy of supply chain transparency, highlights the smelters that are val- idated as compliant with the CFSP, and applies pressure to smelters that have unknown 3TG sourcing. HP identified the smelters and refiners on this list by surveying suppliers between Janu- ary 2015 and December 2015. The suppliers surveyed contribute material, components, or manufacturing to products containing 3TG. Each smelter or refiner reported was identified in at least one of the Templates received from a supplier.

89 HP 2015 Sustainability Report

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