Contents Sustainable Impact Footprint Integrity and human rights Supply chain responsibility Operations Products and solutions Appendix Production supplier Distribution of nonconformances other 103 audits during 2021 were of commodity Other findings supplier sites. Of these, 63% scored over 160, sustainability assessments, 2021 and findings by section of HP 27% scored between 100 and 160, and 10% scored For audits conducted in 2021, suppliers were Supplier Code of Conduct, 2021* under 100. in full conformance (no major nonconformances percentage of total We periodically increase our expectations of identified) for the following provisions: risk of child Health and safety assessments 4 suppliers, so suppliers must continually improve labor; freedom of association; privacy; protection Onboarding assessments 3 to maintain a consistent audit score. For example, of identity and nonretaliation; fair business, 1% Vulnerable worker group (student and foreign worker) 4 11% Ethics in 2021 we adopted version 7.0 of the RBA Code advertising, and competition; intellectual property; assessments Management systems 42% Labor of Conduct, which includes requirements related disclosure of information; no improper advantage; KPI validation assessments 1 13% to worker voice and training, pregnant and and business integrity. Eighty initial audits and Environmental Priority screening assessments 12 nursing women, process chemicals, and water full re-audits of production suppliers conducted management. During that year, we also added in 2021 identified 528 major nonconformances, 2 new environmental requirements to our Supplier equivalent to 6.6 per audit on average. Six Responsibility Scorecard. provisions (see table on page 41) out of 45 total Distribution of scores of initial represented 67% of all major nonconformances * 33% identified. We focus on these and other areas that audits and full re-audits Health and safety Immediate priority findings have the greatest potential for improvement. 1 HP requires suppliers to provide a detailed Immediate priority findings are the most serious * 100% 200 Includes immediate priority findings, non-immediate priority type of supplier nonconformance, and require corrective action plan addressing all identified nonconformances, and major nonconformances identified. Data nonconformances within 30 days of receipt of is from initial audits and full re-audits of production suppliers immediate action. In 2021, we identified 14 80% 150 conducted in 2021. Due to our two-year audit cycle and changes immediate priority findings, equivalent to 0.18 the site audit report (except immediate priority to HP’s supplier base, data typically does not represent the same findings, which are addressed expeditiously), and supplier sites as the previous year. findings on average for each initial audit and s 60% e has processes in place to monitor progress and t i or full re-audit of production suppliers conducted. d u 100 sc subsequent closure of nonconformances. For l a There were two issues related to the charging l e u 40% ag Over time, we have seen supplier audit scores details, see the RBA VAP Operations Manual and f f er of recruitment fees, one related to health and % o v increase. From 2019 to 2021, the percentage of Supply chain responsibility: Our approach. 50 A safety, one related to forced overtime, one related 20% production supplier initial audits and full re-audits to falsified overtime records, two related to fire that scored above 160 increased from 45% to detection, and seven related to fire exits. We 0% 0 50%. The average score during that period rose required the issues to be immediately addressed, 2019 2020 2021 from 140 to 149. Twenty-three audits during 2021 and are working with the suppliers to complete were of final assembly supplier sites. Of these, 14 remediation and implement corrective actions to >160   100–160   <100   Average score (61%) scored over 160, eight (35%) scored between adjust their management systems. 100 and 160, and one (4%) scored under 100. The * Data is from initial audits and full re-audits of production suppliers. 40 2021 HP Sustainable Impact Report www.hp.com/sustainableimpact