HP Supply Chain Goal: 20% GHG Cut by 2020
Hewlett-Packard says it will decrease its first-tier manufacturing and product transportation-related greenhouse gas emissions intensity 20 percent by 2020, compared to 2010.
The company says its supply chain GHG goal, developed in consultation with the World Wildlife Fund’s (WWF) Climate Savers program, is a first for the information technology industry.
HP calculates intensity as its suppliers’ GHG emissions divided by HP’s annual revenue.
The company says it will provide business incentives for suppliers to set and achieve tangible GHG emissions-reduction goals. It will also publicly report, through its Global Citizenship Report, on supply-chain GHG emissions.
HP says by 2020, it will prevent 2 million metric tons of GHG emissions across its multitier supply chain, cumulatively, through specific supplier environmental improvement projects, including:
- Expanding its Energy Efficiency Program (EEP) for manufacturing suppliers;
- Instituting specific emissions reduction initiatives with suppliers with GHG-intensive operations, such as LCD panel manufacturing; and
- Creating product transportation-related efficiency initiatives.
HP’s GHG emissions reduction goal for supply-chain partners is the latest in a series of initiatives by HP’s supply chain Social and Environmental Responsibility program. For example, in 2008, HP became the first major IT company to measure and publish aggregated supply chain GHG emissions. Since 2008, HP also has implemented projects that cut emissions from product transport collectively by 190,000 metric tons CO2e, the company says.
The CDP S&P 500 Climate Change Report 2013, published yesterday, awarded HP 99 out of a possible 100 points for its disclosure score and an “A” — the highest ranking — in its performance band. The CDP disclosure score is based on how well a company tells its climate story, and the performance band indicates how fully a company has integrated a climate change strategy to drive significant reductions in emissions.
HP is also listed on a stock index of sustainability leaders launched last week by the UN Global Compact that shows a total investment return of 26.4 percent during the past year, surpassing the general global stock market. The GC 100, released in partnership with research firm Sustainalytics, is composed of a representative group of Global Compact companies selected based on their adherence to the Global Compact 10 principles as well as evidence of executive leadership commitment and consistent base-line profitability.
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