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1 HP 2013 Living Progress Report www.hp.com/livingprogress HP 2013 Living Progress Report Governance Human Progress Economic Progress Environmental Progress About this report see page 3 see page 27 see page 67 see page 74 see page 135 Contents 122 Water 3 Governance 123 Chemical management and releases 4 Letter from CEO Meg Whitman 67 Economic Progress 124 Ozone-depleting substances 5 Executive summary 127 Supply chain environmental impact 8 HP profile 69 Contributions to the economy 127 Supply chain GHG emissions 10 Living Progress strategy 71 Social investment 129 Transportation GHG emissions 11 Creating business value 132 Water protection 12 Materiality 133 Waste 15 Living Progress governance 16 Stakeholder engagement 74 Environmental Progress 17 Affiliations and memberships 76 Environmental sustainability 20 Corporate ethics 77 Energy, climate, and water 20 Ethics and compliance 135 About this report 82 Employee engagement 22 Anti-corruption 136 Overview 86 Products and solutions 24 Public policy 137 Assurance 87 Design for the Environment 26 Policies and standards 138 Independent Accountants’ Report 89 Life cycle assessment 140 United Nations Global Compact index 91 Materials 141 Global Reporting Initiative index 94 Energy efficiency 95 Research and development 27 Human Progress 96 Servers, storage, and networking 29 Human rights 98 Data centers 33 Supply chain responsibility 99 Services and software 35 Labor impact 101 Personal systems 39 Supplier audits 101 Printing 44 Conflict minerals 103 Paper 46 Supplier diversity 105 Packaging 50 Privacy 108 Product return and recycling 54 HP people 114 HP operations 54 Engaging our people 115 Management and compliance 55 Building careers 115 Energy and GHG emissions 57 Diversity and inclusion 117 Energy efficiency 59 Rewards and recognition 118 Sustainable building design 59 Wellness 119 Renewable energy 60 Health and safety 120 Travel 63 Community engagement and 120 Waste and recycling volunteering Indicates Ernst & Young LLP (Ernst & Young) has reviewed this indicator/value. See Independent Accountants’ Report on page 138 for details of the work performed and values reviewed. Share with colleagues Contents • Governance Letter from CEO Meg Whitman Executive summary HP profile Living Progress strategy Stakeholder engagement Corporate ethics Public policy Policies and standards Human Progress Economic Progress Environmental Progress About this report Governance What we do and how we do it matters Letter from CEO Meg Whitman 4 HP 2013 Living Progress Report www.hp.com/livingprogress Contents • Governance • Letter from CEO Meg Whitman Executive summary HP profile Living Progress strategy Stakeholder engagement Corporate ethics Public policy Policies and standards Human Progress Economic Progress Environmental Progress About this report Letter from CEO Meg Whitman Working in collaboration with Conservation International, we created HP Earth Insights, a unique early warning sys- This year, as HP celebrates its 75th anniversary, we tem for threatened species using the power of our big data launched a framework for thinking about how we do busi- solutions. And in India, more than 28,000 people have ness called HP Living Progress. This new framework builds already received access to quality medical care through on our commitment to global citizenship, which has been eHealth Centers, powerful cloud-enabled healthcare solu- one of our corporate objectives for nearly six decades. tions that serve residents in remote areas. Here at HP, we are committed to advancing the overall Our promise health and well-being of people, helping businesses and Together with our customers and partners, and with economies thrive, and strengthening the environment. Living Progress as our framework, we promise to bring It’s this focus on balancing all three elements of human, together our people and technology to help solve society’s economic, and environmental progress that enables us to toughest challenges. And we promise to consider human, create true Living Progress. economic, and environmental impact as we develop our products, services, and solutions, manage our operations Highlights in 2013 and supply chain, and drive interactions with our custom- HP is at the forefront of innovation to limit the carbon impact ers, partners, and communities. of the information and communications technology industry, which is currently projected to increase from We look forward to updating you on our progress through- 1.9% of total greenhouse gas emissions in 2011 to 2.3% out the year. in 2020.1 As of December 2013, more than 50% of all LEED® Platinum- and LEED Gold-certified new construc- tion data centers worldwide were designed by HP,2 and our current generation of ProLiant Gen8 and Moonshot Regards, servers offers increased processing power while using significantly less energy and space. And after publishing our comprehensive carbon footprint analysis last year, we’ve raised the bar again by sharing our comprehensive water footprint this year. Meg Whitman In our supply chain, we announced guidance for the fair treatment of student and dispatch workers and followed up with targeted supplier training and assessments. We also continued to push hard on responsible mineral sourc- ing, driving smelters in our supply chain towards conflict free certification and supporting initiatives to establish viable sources of conflict free minerals in the Democratic Republic of Congo and neighboring countries. 1 According to GeSI SMARTer 2020: The Role of ICT in Driving a Sustainable Future, pages 11, 18. 2 Based on U.S. Green Building Council and HP data. 5 HP 2013 Living Progress Report www.hp.com/livingprogress Contents • Governance Letter from CEO Meg Whitman • Executive summary HP profile Living Progress strategy Stakeholder engagement Corporate ethics Public policy Policies and standards Human Progress Economic Progress Environmental Progress About this report Executive summary The power of creative thinking and technology can oriented us decidedly in that direction, with the ultimate transform lives, energize businesses, and empower goal of making our work on global citizenship inextricably communities. With that in mind, we have launched a intertwined with our corporate strategy. framework for thinking about how we do business called • Launched our Living Progress framework and have HP Living Progress. To HP, it means creating a better begun to communicate our holistic approach via internal future for everyone through our actions and innovations. and external forums Living Progress is a wholly integrated approach to busi- • Appointed a Chief Progress Officer to ensure Living ness that simultaneously drives human, economic, and Progress is embodied throughout the company and environmental progress. It’s how we advance the overall applied to our actions health and well-being of people, help businesses and economies thrive, and work to strengthen the envi- Corporate ethics ronment as we grow. It’s how we create a vibrant and We adhere to the highest ethical standards. Our Ethics sustainable business model by solving some of the world’s and Compliance program requires employees, business biggest problems. partners and suppliers worldwide to use only lawful and ethical business practices. We are proud of HP Living Progress, and we are also proud of HP’s many accomplishments in carrying out this most • Launched an Ethics Champion program, recognizing important initiative in 2013, including the following: ethical leadership decisions made by our employees, especially in challenging situations Governance Public policy We advocate with transparency and integrity to promote Living Progress strategy laws and regulations that encourage economic growth The year 2013 saw the adoption of HP Living Progress as and innovation in a socially and environmentally respon- a framework for thinking about how we do business. We sible manner. believe it is essential that our efforts as global corporate • Engaged with governments and multilateral organiza- citizens do not stand to the side of our business activities. tions such as the Organisation for Economic Co-operation Indeed, it is not enough for them to be merely aligned and Development (OECD) to provide our expertise and with our business. To have full impact, our business and perspective on a range of public policy issues including our citizenship must become one. Living Progress has technology policy, trade policy, and tax reform 6 HP 2013 Living Progress Report www.hp.com/livingprogress Contents Human Progress Economic Progress • Governance Advancing the overall health and well-being of people Helping businesses and economies thrive Letter from CEO Meg Whitman Human rights Contributions to the economy • Executive summary HP enjoys a well-earned and long-standing reputation As one of the world’s largest companies, HP contributes HP profile as a global leader in corporate respect for human rights, to economies globally through the value we create for our customers and our direct financial transactions. Living Progress advancing human progress in our own operations and strategy influencing others in our value chain to do the same. • HP products and solutions continued to make our cus- Stakeholder • Further integrated respect for human rights into our tomers more efficient and profitable worldwide engagement business operations by conducting a comprehensive • Our direct economic transactions during the year Corporate ethics company-wide risk assessment included $112 billion net revenue, purchases
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