HP 2011 Global Citizenship Report Commitment Environment Society About this report see page 3 see page 18 see page 80 see page 173 See an overview of our global citizenship activities online at www.hp.com/go/globalcitizenship. Table of contents 3 Commitment 80 Society 4 Letter from CEO Meg Whitman 81 Ethics and human rights 5 HP profile 82 Ethics and compliance 85 Human rights 7 Global citizenship strategy 87 Conflict minerals 8 Global citizenship and business value 10 Global citizenship governance 91 Supply chain responsibility 96 Our approach 12 Stakeholder engagement 99 Performance 14 Perspectives 102 Detailed audit findings 108 Collaboration 15 Affiliations and memberships 110 Capability building 17 Policies 113 Perspective: So Sheung 115 Supplier diversity 117 Privacy 18 Environment 118 Approach 120 HP people 19 Environmental sustainability 121 Engaging our people 21 Collaboration 123 Building careers 23 Employee engagement 125 Diversity and inclusion 24 Energy and climate 128 Rewards and benefits 27 Paper 129 Wellness 29 Products and solutions 132 Health and safety 31 Life cycle assessment 136 Employee gallery 33 Research and development 147 Social innovation 34 Design 148 Education 36 Materials 150 Entrepreneurship 38 Manufacturing 151 Health 41 Packaging 152 Employee volunteerism and giving 43 Transport 154 Performance 44 Use 157 Tech gallery: social innovation 47 Product reuse and recycling 48 Programs 158 Public policy 50 Performance 160 Economic impacts 51 Vendor audits 162 Data dashboard: society 52 HP operations 166 Goals: society 53 Management and compliance 53 Energy and GHG emissions 55 Energy efficiency 57 Renewable energy 173 About this report 58 Travel 59 Waste and recycling 174 Overview 61 Water 175 Assurance 63 Sustainable building design 63 Toxics release inventory 176 UN Global Compact 64 Ozone-depleting substances 177 GRI index 65 Remediation 65 HP list of major operations 67 Tech gallery: environment 69 Data dashboard: environment 75 Goals: environment Commitment At HP, we embrace our role as a global citizen. As one of the world’s largest information technology companies, what we do and how we do it matters. That’s why we use global citizenship to help shape and advance our business strategy. 4 Letter from CEO Meg Whitman 14 Perspectives 5 HP profile 15 Affiliations and memberships 7 Global citizenship strategy 17 Policies 12 Stakeholder engagement Contents Commitment Environment Society About this report Letter from CEO Meg Whitman Welcome to the HP Global Citizenship Report. This is HP’s annual scorecard for areas like sustainability, social innovation, employment practices, and ethics and compliance, but really, we look at it as a scorecard on our values. The principles of global citizenship have been core to HP’s success for more than 70 years. We apply the power of our technology, partnerships, and the expertise of more than 300,000 employees to have a positive impact on society and the world. For example, we’re helping improve world health through drug authentication and by acceler- ating the diagnosis of HIV in infants. We’re helping improve world education through the HP Catalyst Initiative, which brings together some of the best educators to devise new ways of engaging students in science, technology, engineering, and math. We’re helping improve world working and living standards through the power and leverage of our supply chain. We’re helping make the world greener by continuing to meet and exceed our industry-leading goals for reducing the environmental impact of our operations and products, and by helping our customers reduce their environmental impact. We’re also helping get the world involved with HP employees and retirees volunteering more than 744,000 hours of their energy and exper- tise last year. As the industry’s largest provider of information technology infrastructure, software, services, and solutions, we know that we can help advance the way people live and work. We also recognize that the world’s challenges are too big for any single organization to address alone, so we’re teaming up with partners worldwide to find solutions. We cultivate relationships with diverse stakeholders, such as social entrepreneurs, industry peers, governments, and nongovernmental organizations. In addition, to promote higher standards across sectors, we endorse the UN Global Compact. In the Global Citizenship Report, you’ll learn about these stories, programs, policies, and many more. We believe that good citizenship and good business go hand in hand. A reputation as a responsible corporate citizen is a competitive advantage that supports our customer relation- ships, our employee commitment and our shareholder value. I hope you enjoy this year’s report and I look forward to continuing HP’s important work that makes a real difference in the world. Best, Meg 4 HP 2011 Global Citizenship Report Contents Commitment Environment Society About this report HP profile HP is one of the world’s largest providers of information technology infrastructure, soft- Highlights ware, services, and solutions to individuals and organizations of all sizes. We bring the advantages of our scale, the breadth and depth of our portfolio, our innovation, and our competitiveness to our customers every day and in almost every country in the world. $ HP is at the forefront of technological advances that improve the way we live and work, 127 billion USD empowering HP to play a vital role in addressing serious global challenges and creating Recorded $127 billion USD in net revenue for FY11. sustainable growth. Examples of HP innovations that improve our environment and our society include: • Cloud Sustainability Dashboard HP has developed a Cloud Sustainability Dashboard to help IT professionals better understand and quantify the sustainability impact of cloud million computing. Read more in Research and development on page 33. 52 * • Global Authentication Service HP is working with nongovernmental organizations, HP shipped more than 52 million printers in 2011. companies in the pharmaceutical industry, and others to combat the challenge of counter- feit medicines. Read more in Health on page 151. • HP Early Infant Diagnosis HP is working with the Kenyan government to reduce the time it takes to diagnose an HIV-positive infant. Read more in Health on page 151. 62 million HP shipped more than 62 million PC units in 2011.** Looking back at fiscal year 2011 (FY11): A year of changes and challenges % In 2011, an uncertain macroeconomic environment, natural disasters that affected our 92 supply chain and inventory, several strategic announcements, leadership changes, and of the Fortune 100 are HP Software customers. inconsistent overall performance all contributed to a year of mixed financial results. Despite these challenges, our businesses remain strong and HP is well positioned for the future, maintaining our number one or number two share positions across the majority * IDC WW Quarterly Hardcopy Peripherals Tracker, February 2012. of our portfolio. This data is calendar year. ** IDC WW Quarterly PC Tracker, January 11, 2012. This data is calendar year. Our strategy The advances and innovations that enable HP to help address some of the world’s most daunting challenges are based on the foundation of the company’s strategy. 5 HP 2011 Global Citizenship Report Contents Commitment Environment Society About this report Build the core HP strives to define markets and lead in innovation. We increased research and development spending in 2011, to $3.2 billion USD, HP infrastructure HP’s hardware franchises, market-leading server, and expect to continue to bring the very best innovations to market. storage, and networking business, and PC, imaging, and printing groups account for about 70% of our revenue. Everything we do either amplifies or builds on this unique strength. Shared values Expand the core HP’s shared values and company-wide objectives include a long- standing commitment to global citizenship. Broader than any single Software HP provides best-in-class software to expand, optimize, organization or program, global citizenship at HP determines how and manage the core. Our software differentiates our hardware to we capitalize on our technologies and expertise to help address the improve its performance and help solve customer problems. It also world’s major social and environmental challenges and accelerate allows us to manage heterogeneous environments, consisting of positive change. our infrastructure as well as others’. The addition of Autonomy to HP provides a platform that enables us to address customers’ infor- mation-management challenges. HP corporate summary Add value to the core Fortune 11—United States Services HP services envelop our core infrastructure and software Fortune 28—Global to enable customers to get increased value from HP. Through broad offerings such as outsourcing, application, consulting, and tech- President and Chief Executive Officer: Meg Whitman nology services, we work to ensure that our technology meets customer needs. We build relationships that can last for decades. Nearly 350,000 employees* Incorporated in Delaware, United States Make it work Listed on the New York Stock Exchange with the ticker symbol HPQ Solutions Our solutions add value by combining our technologies to advance customers’ business objectives in a holistic and compelling Corporate and regional headquarters way. We have packaged our capabilities into five key solution areas: converged infrastructure, application transformation,