Contents Sustainable Impact Footprint Integrity and human rights Supply chain responsibility Operations Products and solutions Appendix Nonproduction suppliers To identify supplier sites located in water- to year-over-year variations in data. By the end Performance Approach stressed areas, we use water risk assessment of 2020, 94% of our suppliers, by spend, had set During 2020, the most recent year for which data tools such as the World Resources Institute’s water management goals. is available, our suppliers generated 126,000 We purchase a wide range of goods and services Aqueduct Water Risk Atlas tool. We also identify related to the operations of HP, such as staffing, sites that manufacture relatively water-intense See HP’s 2021 water footprint. tonnes of nonhazardous waste associated with business consulting, marketing, and travel. product types, and use this information to assess HP, a 14% decrease from 2019. This was primarily We prioritize collaboration with nonproduction overall water stress risks and opportunities. due to reduced waste generation at a significant suppliers based on geographical risk and industry, We ask our suppliers to report water risk, use, Waste supplier through waste prevention, reuse, and and provide training to help improve reporting and management information through the CDP recycling efforts. Suppliers generated 46,000 and reduce GHG emissions. Supply Chain program. This drives suppliers’ Approach tonnes of hazardous waste associated with HP awareness of water security issues and allows us in 2020, down 13% compared to the prior year. Performance to assess suppliers’ current water management We work with production suppliers to encourage This was due largely to significant reductions by In 2020, the most recent year for which data strategies in the context of local environments waste measurement and reporting, reduce waste three suppliers. By the end of 2020, 76% of our is available, our nonproduction suppliers and communities. volumes, and drive progress toward a circular production suppliers, by spend, had set waste- reported 140,000 tonnes of Scope 1 and economy. HP requests our suppliers report on related goals, up from 72% the prior year. Scope 2 CO e emissions attributable to HP. See Through the use of best practice frameworks, waste using the RBA Environmental Survey. 2 we also work with suppliers to improve water detail in Footprint. During that year, 56% of HP reporting and, when appropriate, to enhance nonproduction strategic suppliers produced water management practices. environmental reports. SUPPLY CHAIN TRANSPARENCY To further drive improvements, we include water Much of our production supplier base is in China, so we have a particular focus in that area. The Corporate Water stewardship criteria in our Supplier Responsibility Information Transparency Index, developed by the Institute of Public & Environmental Affairs (IPE) and NRDC, Scorecard. Suppliers are scored for transparently evaluates the environmental practices of global brands’ supply chains in China. In 2021, HP ranked #7 among reporting quantitative water withdrawal as well global IT companies and #31 overall, of more than 600 brands assessed. On the Supply Chain Climate Action Approach as for having a public company-wide policy or Transparency Index, developed by IPE and CDP, HP ranked #15 of about 680 brands. Many of our suppliers operate in regions where governance structure for water at the board of water stress is a growing threat. We work director or top executive level. During 2021, we continued encouraging our suppliers to submit inventories of substances released through with production suppliers to improve water IPE’s public pollutant release and transfer register system, and cross-checked supplier sites representing 95% management in their operations, including Performance of our spend against IPE’s public database of environmental violations. through the Supplier Code of Conduct, which In 2020, the most recent year for which data We also collaborated with first-tier manufacturing suppliers in China to determine whether sub-tier suppliers contains provisions on water management, is available, production suppliers withdrew 36 complied with local environmental laws. This review of 730 sub-tier suppliers identified 27 reported violations in pollution prevention and resource use reduction, million cubic meters of water associated with HP, 2021. Of these, 18 had been corrected as of November 2021, and we continue working with the relevant first-tier and environmental permits and reporting. 3% less than in 2019. We believe that stronger suppliers and IPE to address and resolve the remaining issues. Business with several sub-tier suppliers has supplier water-accounting practices contributed been suspended due to unaddressed environmental violations. 38 2021 HP Sustainable Impact Report www.hp.com/sustainableimpact