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

HP Global Citizenship

Stanford Global Justice Presentation, 3/13/09

Bonnie Nixon, Director of Environmental Sustainability

2 3/4/2009

HP’s global citizenship legacyHP’s commitment to social and environmental responsibility started with Bill Hewlett and David Packard in the 1930s and continues today

Start 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

SITIO

NIN

GM

ISSIO

N

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 philanthropicinvestments

Environmental sustainability

Be THE most environmentally responsibleinformation technology company

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HP Supply Chain

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HP supply chain: broad cross section of products

Technology 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 Barrel

Mar 24, 2008 Millions of Asian workers producing goods sold are trapped in servitude.

Shanghai China: Abusive Child Labor Ring Is Exposed May 1, 2008

Severe labor abuses extended into the heart of its export economy.

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____________________________________________________________ Disclosure Transparency

_______________________________________________ Independent Monitoring

_______________________________________________ Industry Collaboration

_______________________________________________ Philanthropy Compliance

_______________________________________________ Training Education

_______________________________________________ Independent Compl. Program

_______________________________________________ Compliance Program

_______________________________________________ ID Supply Chain

_______________________________________________ Assess Risk

_______________________________________________ External Monitoring

_______________________________________________ Internal Monitoring

_______________________________________________ Build Internal Capacity

_______________________________________________ Develop Audit Procedures

_______________________________________________ Education of Expectations

_______________________________________________ Code of Conduct

Program Evolution: Experience of Other Industries

Time

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Corporate policy

Code of conduct

Supplier assessment

Supplier

audit

Corrective action

Capability building

Making progress in the supply chain

HP’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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EICC : www.eicc.info

GeSI SCWG: www. gesi.org

Coalition Members

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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 Engagement

Mexico • Industrial Association Training Programs • CEREAL Grievance Management & Training• HER Project – Women’s Healthcare in Factories

Global Initiatives & Local Programs

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Building a Business Case

2. Productivity

Output per hour

Production value/hour

% of Delay Time

4. Wages & Hours

Average wages

Average hourly wage

Average working hours per month

5. H&S

Accident Incident Rate

Lost Workday Rate

3. Quality

Rejection 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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Thank YouFor more info, please contact: bonnie.nixon@hp.com