© 2008 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

HP Global Citizenship

Mills College, September 11, 2008Bonnie Nixon, Director of Ethical Sourcing

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HP Agenda

About HP & Global Citizenship

Environmental Sustainability

Supply Chain Social & Environmental Responsibility

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HP’s global citizenship legacyHP’s commitment to social and environmental responsibility started with Bill Hewlett and David Packard in the 1930s and continues todayStart 1930s 1980s –1990s 2000s – Today

Focused sustainability programs to drive change, action and leadership1987 First IT company HW recycling.1987 Computer product recycling1988 Hazardous Waste Minimization Council1989 PVC removed from DeskJet pkg 1991 Planet Partners Program; Ozone depleting substances eliminated1992 Design For Environment Program; EPA Energy Star Partner1993 Instant-On Technology1998 General Specification for the

Environment

HP’s deep-rooted legacy focused on corporate social and environmental responsibility1930s Commitment to the community1950s Global Citizenship objective1970 First environment control

coordinator at HP 1971 Recycling computer print-outs and punch cards.1973 Environmental policy to reduce

pollution1975 Energy Conservation Guidelines 1976 Van pools in Bay Area.

Innovation to lessen IT’s impact and enable the sustainable economy2001 Bio plastics corn printer shell. 2002 Supply Chain code of conduct;

Bulk Delivery of Volume orders2003 1st signatory to have WEF

emissions data accepted.2004 Co-established pan-European take back and compliance system2006 Dynamic Smart Cooling.2006 International climate change

initiative World Wildlife Fund. 2007 Recycled 1 billions pounds; 1st

E*4.0 PC; 1st EPEAT Gold PC2008 RPET from PP used in HP cartridges

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HP global citizenship and environmental sustainability mission

Global citizenship is HP's comprehensive commitment to hold ourselves to a higher standard of integrity, transparency and accountability. Our values help us balance and align our business goals with our impact on society and the planet. PO

SITI

ONIN

GM

ISSI

ON

Ethics & compliance

Maintain and enhance a recognized world class ethics and compliance culture

Human rights & labor practices

Ensure healthy, safe and positive working conditions in the communities in which we and our suppliers do business

Privacy

Provide world class privacy leadership and build a trusted relationship with customers and stakeholders

Social investment

Address educational and social needs through responsible philanthropic  investments

Environmental sustainability

Be THE most environmentally responsibleIT company

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HP social & environmental sustainability frameworkIm

pact

Complexity

HP’s technology breadth and industry reach give us an unmatched ability to make the kind of impact that is good for business, good for customers and good for the planet.

PROG

RAM

STRA

TEGI

ES

OUR HOUSE YOUR HOUSE OUR PLANETAdvanced research and development to enable the low-carbon economy

• Energy & resource efficiency • Reuse/End of Use• “Live Green” Program• World Class Supply Chain

Deliver Eco Solutions:• Energy savings• Digitally Green products• Reuse & recycling

Deliver practical solutions to make it easier for customers to go GreenAssure product manufacturing

Innovate ways to build a sustainable economy

Walk the TalkRetain & Recruit best & brightestLead the industry and raise the standards

Operations

Supply chain

Products services solutions

Sustainable

economy

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HP Live GreenImportant to our employees

• Campaign− Educate employees on environmental

issues and encourage action− Series of events, articles, speakers,

contests and bi-weekly environmental tips

− Websites, blogs, facebook and webcasts

− Site Network and HP Sustainability

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HP Environmental Sustainability

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Environmental sustainability is criticalfor customersTODAY•Heightened consumer awareness and commitment to environment

•Business recognition and action to manage energy costs and environmental impacts

•IT currently accounts for 2% of worldwide carbon emissions

•Improved environmental performance drives business results

TOMORROW•4 billion devices + 5,000 data centers equivalent to 300M metric tons of coal/year and release of 585M metric tons of CO2

•Increased legislation: from eWaste to energy to climate

•Primary customer requirement to conduct business

•Core element of growth, valuation & brand

Tech innovation will continue to improve the IT industry’s environmental footprint AND positively impact the broader

global economy

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What Sustainability Means to HP:Reducing impact throughout the product lifecycle

ProductProductlifecyclelifecycle

Energy efficiency

Product reuse and recycling

Supply chain responsibility

Product materials

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Three priorities where HP can make the greatest impact

Supply chain responsibility

ENERGY EFFICIENCY

Product reuse and recycling

Climate and energy

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“Scientists may still be discussing what caused the disappearance of the once-dominant dinosaurs, but there is no doubt amongst them what is causing the current round of mass extinctions. It is Mankind.” Paul Brown, Global Warning (The Last Chance for Change)

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HP supply chain: broad cross section of productsTechnology Systems Group

Imaging and Printing Group

Personal Systems Group

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Supply chain manufacturing locationsHP’s suppliers of product materials, components and services

Americas

EMEA

Asia Pacific/Japan

Major locations of HP product materials, components and services suppliers

Americas Europe & Middle East Asia Pacific & Japan

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Risky Business in 2008

Strike Hits Vietnam Nike Factory April 1, 2008

Thousands of workers producing 10% of the 75 million pairs of shoes made annually for Nike have shut down a Vietnamese plant demanding higher pay, bonuses and cost of living allowances

INTERNATIONAL: Bottom of the BarrelMar 24, 2008 Millions of Asian workers producing goods sold are trapped in servitude.

Shanghai China: Abusive Child Labor Ring Is Exposed May 1, 2008Severe labor abuses extended into the heart of its export economy.

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Corporate policy

Code of conduct

Supplier assessment

Supplieraudit

Corrective action

Capability building

Making progress in the supply chainHP’s Systems Management Approach

– Risk based country, site & partnership assessment – Partnership oriented engagement & auditing – Surface and address root causes– Worker voice is critical to success

Low Risk

Assessed

Audited

Not assessed

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Root Cause Analysis is critical to solving problems

A management systems approach drives sustainable solutions

Labor

Health & Safety

Environment

Ethics

ManagementSystems

Uphold the highest

standards

Evaluate & control exposure to

hazards

Treat employees with dignity &

respect

Protect the environment

Electronic Industry Code of Conduct

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GeSI SCWG: www. gesi.org

Coalition Coalition MembersMembers

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Electronic and Multi-Industry Harmonization• EICC & Global e- Sustainability Initiatives (GeSI)• FIAS China Capability Building Strategy (Shenzhen) • Beyond Monitoring & Global Social Compliance Program• Climate Change Trainings and Factory Tools (CDP)China & Asia Pacific • Factory Programs/Training with NGOs, FISI & HER Project• Thailand 2nd & 3rd Tier Assessments & Training• India Project with US State Dept $ & NGOs

Europe, including Central & Eastern Europe• Central European Supplier Responsibility (CESR)• CSR Laboratory with CSR Europe• ILO Tripartite Agreement & NGO EngagementMexico • Industrial Association Training Programs • CEREAL Grievance Management & Training• HER Project – Women’s Healthcare in Factories

Global Initiatives & Local Programs

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Focused Improvement Supplier Initiative

Year 1 and 2 FISI program closed successfully

Reduced SER risks and major non-conformances in all factories

Best practices successfully shared with other suppliers (Peer Network)

Able to demonstrate efforts toward EICC conformance to all customers

Improved skill sets of key factory managers

Factory management obtained skills, tools, support and expertise

Final metrics showed clear business correlation between worker morale and participation and reduced turnover and better quality

40 days of training with 45 major supplier companies in ChinaFISI is meant to connect suppliers with the resources, skills and network to improve SER Management in a systemic way aligning with business objectives

Must include right representation and participation including: CEOs & Top Level Management, Facility Mgmt., Human Resources, Production, Quality, Environmental Health & Safety & Line Mgrs.

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Building a Business Case

2. ProductivityOutput per hourProduction value/hour

% of Delay Time

4. Wages & HoursAverage wagesAverage hourly wageAverage working hours per month

5. H&SAccident Incident RateLost Workday Rate

3. QualityRejection Rate

Rework Rate

1. HR & Labor% New Workers

Retention Rate (new & old workers)

# Complaints & Disciplinary Action(Worker Satisfaction – Interviews & Surveys)

Metrics are submitted in the following categories;

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A call for action...

Think Globally

Act Locally

Change Personally

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Thank You