Yes. To help reach our goal, we encourage our first-tier production and product transportation suppliers to improve energy efficiency, use renewable energy, and set science-based targets. This goal is part of our suite of GHG emissions reduction goals that are components of our Science Based Targets initiative-validated science-based target. WWF has publicly supported this goal, confirming the rigor of our goals- setting process. Although GHG emissions intensity decreased by 4% between 2015 and 2020 when calculated as a three-year rolling average, yearly GHG emissions intensity values (not calculated as a rolling average) decreased by 9% during that timeframe.
Our progress:
GHG EMISSIONS INTENSITY REDUCTION GOAL - Reduce first-tier production supplier and product transportation-related GHG emissions intensity by 10% by 2025, compared to 2015
PROGRESS THROUGH 2020 - GHG emissions intensity decreased 4% through 2020, compared to 2015
GHG EMISSIONS REDUCTION GOAL - Help suppliers cut 2 million tonnes of carbon dioxide equivalent (CO2e) emissions between 2010 and 2025
PROGRESS THROUGH 2020 - Suppliers avoided 1.46 million tonnes of CO2e emissions
Production suppliers
Through our Sustainability Scorecard, we set requirements for our production suppliers, including requirements related to energy use and GHG emissions performance and disclosure.
In 2021, we continued engaging with suppliers to drive positive change, for example by providing training outlining our environmental expectations. We also worked with other organizations during 2021 to accelerate cross-sector improvements:
• HP collaborated with the We Mean Business Coalition, CDP, and industry peers to promote the uptake of SBTi methodology among IT supply chain companies (both production and nonproduction suppliers) based in the Greater China region.
• We joined the 2021 CDP Science-Based Targets Campaign and co-signed a letter to a large number of companies—including many in our supply chain—urging them to set SBTi validated GHG emissions-reduction goals. By the end of 2021, nine of those suppliers had a new target in place, including four with a net zero commitment.
• To support local demand for renewable energy in countries where some of our suppliers are based, we worked with the U.S. Department of State through the Clean Energy Demand Initiative to produce letters of intent with those countries, which were presented at the COP26 conference.
• Along with seven of our suppliers, we participated in roundtable discussions hosted by WWF Climate Business Hub, with representatives from the Chinese government and renewable energy developers, to promote policies that will enable greater renewable electricity sourcing in Jiangsu Province.
Our Energy Efficiency Program in China and Southeast Asia, implemented in collaboration with NGOs such as BSR, Natural Resources Defense Council (NRDC), the World Resources Institute, and WWF, helps suppliers to build capabilities, identify ways to improve energy efficiency, and explore the use of renewable energy.
Since 2010, we estimate that participants in this and other programs have avoided 1.46 million tonnes of CO2 e emissions4 and saved a cumulative 992 million kWh (US$119 million) of electricity, including 81,000 tonnes of CO2 e emissions and 31 million kWh (US$3.9 million) in 2021.
More broadly, through CDP, our production suppliers reported savings of 20 million tonnes of CO2 e and US$465 million from reduction initiatives implemented in 2020.* This demonstrates the scale of ongoing GHG emissions reduction activities throughout our production supply chain, regardless of whether driven by HP’s engagement.
In 2020, the most recent year for which data is available, the suppliers that make HP products generated 2.7 million tonnes of Scope 1 and Scope 2 CO2 e emissions attributable to HP, 8% less than in 2019.This reflects the impact of supplier energy conservation measures and GHG emissions reduction projects, increased renewable energy use, and investment in power purchase agreements. Facility closures caused by COVID-19 also reduced emissions. The intensity of GHG emissions per HP annual revenue decreased in 2020 by 9% compared to 2015.
We engaged 98% of our first-tier production suppliers, by spend, to help reduce their environmental impact. Overall, 95% (by spend) reported having GHG emissions reduction-related goals, and 31% reported science-based targets (13% validated by the SBTi and 18% evaluated by HP. We also encourage suppliers to use renewable energy. Seventy-seven percent reported doing so in 2021, by spend, with 71% reporting renewable energy use goals, up from 70% the prior year.
Product Transportation:
To improve efficiency, cut costs, and reduce negative environmental impacts, we work to optimize our logistics network by consolidating shipments, identifying new routes, and shipping directly to customers or local distribution centers.
To drive progress, in 2021 we held GHG emissions-reduction workshops with about 20 suppliers representing more than 90% of our CO2 e emissions in this area. Sustainability topics are also discussed during our quarterly executive-level meetings with these same suppliers, to promote a focus on environmental topics and encourage them to set related performance goals.
HP is participating in several pilot programs to explore opportunities to reduce GHG emissions from logistics, for example Maersk’s project with industry leaders to scale zero carbon solutions for ocean transport, such as the use of carbon neutral e-methanol or sustainable bio-methanol.
We require our product transportation suppliers to use the Global Logistics Emissions Council Framework to provide standardized calculations and data that account for variation in different locations. To drive progress across the industry and beyond, we are working with the Clean Cargo Working Group, the Smart Freight Centre, the International Council on Clean Transportation, and the U.S. Environmental Protection Agency (EPA) SmartWay program. In 2021, HP won the U.S. EPA SmartWay Excellence Award for the eighth year in a row, demonstrating leadership in freight supply chain energy and environmental performance for the “Large Shipper” category in the United States. During the year, we joined the Sustainable Freight Buyers Alliance to decarbonize freight and create demand for low and zero emissions across all modes of transport. Reducing packaging size and weight also has the potential to decrease GHG emissions associated with product transportation.
Product transportation resulted in 1.62 million tonnes of CO2 e emissions in 2021, up 7% from the prior year. This was due primarily to product volume increases as well as improved data for emissions related to road (including rail).
Nonproduction suppliers
We purchase a wide range of goods and services related to the operations of HP, such as staffing, business consulting, marketing, and travel. We prioritize collaboration with nonproduction suppliers based on geographical risk and industry, and provide training to help improve reporting and reduce GHG emissions. In 2020, the most recent year for which data is available, our nonproduction suppliers reported 140,000 tonnes of Scope 1 and Scope 2 CO2 e emissions attributable to HP. See detail in Footprint. During that year, 56% of HP nonproduction strategic suppliers produced environmental reports.
* These are the total GHG emissions reductions and financial savings reported by suppliers through CDP, not amounts attributable to HP