HP Analyzes Supply Chain Emissions Data

September 24, 2008

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Hewlett Packard announced it has collected emissions data associated with its largest suppliers, which represents more than 80 percent of the company’s costs for materials, manufacturing and assembly of its products worldwide.

In 2007, the aggregated CO2 emissions associated with more than 80 percent of HP’s first-tier manufacturing expenditures totaled about 3.5 million metric tons. Other data has not been released.

The company plans to use this data to incorporate energy efficiency into how it manages its first-tier suppliers. In addition, HP will propagate this reporting to the rest of its supply chain to determine further emissions reductions as it incorporates emissions reporting into lower tiers. HP’s top suppliers must also comply with the Electronic Industry Code of Conduct (EICC).

The company is working with the EICC to build a calculation tool to ensure consistency among suppliers’ self-reported emissions accounting. It is also participating in the Greenhouse Gas Protocol Supply Chain Initiative, which will develop a methodology for quantifying and reporting product life cycle and supply chain GHG emissions.

In January, HP joined the Carbon Disclosure Project’s Supply Chain Leadership Collaboration. That same month the company also published new guidelines designed to help multinational companies achieve sustainability throughout their supply lines.

In April, HP released a list of its largest suppliers, representing more than 95 percent of the company’s procurement expenditures for materials, manufacturing and assembly of its products worldwide. HP’s hope was that the increased visibility would change supplier labor, health and safety, environmental and ethics practices, and that other companies would follow its lead.

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