REINVENTING ETHICAL, SUSTAINABLE SUPPLY CHAINSh30261. · We transparently report on our supplier...

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REINVENTING ETHICAL, SUSTAINABLE SUPPLY CHAINS HP Inc. Sustainability Briefing January 22, 2018 1 © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.

Transcript of REINVENTING ETHICAL, SUSTAINABLE SUPPLY CHAINSh30261. · We transparently report on our supplier...

REINVENTING ETHICAL, SUSTAINABLESUPPLY CHAINS

HP Inc. Sustainability Briefing

January 22, 2018

1 © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.

Forward-looking statements

This presentation contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP Inc. and its

consolidated subsidiaries (“HP”) may differ materially from those expressed or implied by such forward-looking statements and assumptions.

All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any projections of net revenue, margins, expenses, effective tax

rates, net earnings, net earnings per share, cash flows, benefit plan funding, deferred taxes, share repurchases, foreign currency exchange rates or other financial items; any projections of the amount, timing or

impact of cost savings or restructuring and other charges; any statements of the plans, strategies and objectives of management for future operations, including the execution of the restructuring plans and any

resulting cost savings, net revenue or profitability improvements; any statements concerning the expected development, performance, market share or competitive performance relating to products or services; any

statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims or

disputes; any statements of expectation or belief, including with respect to the timing and expected benefits of acquisitions and other business combination and investment transactions; and any statements of

assumptions underlying any of the foregoing.

Risks, uncertainties and assumptions include the need to address the many challenges facing HP’s businesses; the competitive pressures faced by HP’s businesses; risks associated with executing HP’s strategy; the

impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers and the distribution of HP’s products and the delivery of HP’s services effectively; the protection of HP’s

intellectual property assets, including intellectual property licensed from third parties; risks associated with HP’s international operations; the development and transition of new products and services and the

enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers, clients and

partners; the hiring and retention of key employees; integration and other risks associated with business combination and investment transactions; the results of the restructuring plans, including estimates and

assumptions related to the cost (including any possible disruption of HP’s business) and the anticipated benefits of the restructuring plans; the resolution of pending investigations, claims and disputes; and other risks

that are described in HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2016 and HP’s other filings with the Securities and Exchange Commission.

As in prior periods, the financial information set forth in this presentation, including any tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be

reasonable, these amounts could differ materially from reported amounts in HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2017 and HP’s other filings with the Securities and Exchange

Commission. HP assumes no obligation and does not intend to update these forward-looking statements. HP’s Investor Relations website at http://www.hp.com/investor/home contains a significant amount of

information about HP, including financial and other information for investors. HP encourages investors to visit its website from time to time, as information is updated and new information is posted.

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JUDY GLAZERGlobal Head of Sustainability and Product Compliance

ANNUKKA DICKENSHuman rights and Supply Chain Responsibility Director

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Sustainability at HP

Reinventing ethical, sustainable supply chains

Questions

AGENDA

© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.

© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.5

OUR VISION

Create technology that makes life better for everyone, everywhere.

PRINTING

PERSONAL SYSTEMS

CORE$300B+ TAM*

• Lead commercial

• Grow premium

• Revitalize consumer

• Drive commercial

$40B+ TAM*

FUTURE

• Create new immersive categories

• Lead 3D printing

GROWTH$220B+ TAM*

• Disrupt copier market

• Accelerate graphics

• Drive commercialtransformation

SERVICES AND SOLUTIONS

OUR

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*Source: HP internal analysis as of October, 2017

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Customers call for it Employees value it Investors watch for it

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FACING THE CHALLENGES OF THIS CENTURY

2.3Number of Earths we’ll need by 2050

• Global population is on pace to hit 9.4 billion by 2050

• Global middle class reached 3.2 billion by 2016 and is expected to grow

• In the next 20+ years, energy use will rise 48%, GHG emissions will rise by 34%, and demand for water will be 40% higher than supply

© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.

“The betterment of our society is not a job to be left to a few. It is a responsibility to be shared by all.”

- Dave Packard

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• Empower 500,000 factory workers with educational programs

• Double factory participation in sustainability programs

• Reduce GHG emissions from global operations by 25%

• Reduce product GHG emissions intensity 25%

• Recycle 1.2 million tonnes of products

• Enable better learning outcomes for 100 million people

REINVENTING FOR A BETTER WORLD

Learn more in our annual Sustainability Report9

Selected goals Selected goals

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Circular and low carbon economy

at scale

Learning and digital inclusion

for the underserved

Supply chain leadership

going beyond the factory floor

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REINVENTING ETHICAL, SUSTAINABLE SUPPLY CHAINSInnovations to identify risk, drive shared value and foster industry collaboration

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ADVANCING SOLUTIONS AS AN INDUSTRY

Spotlight on: Multi-industry collaborations

MANAGING RISK THROUGHOUT THE SUPPLY CHAIN

BUSINESS INTEGRATION AND SHARED VALUE

Spotlight on: Supplier Onsite Survey (SOS) App

Spotlight on: SER Scorecard

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MANAGING RISK THROUGHOUT THE SUPPLY CHAIN

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HP’S APPROACH TO RISK SENSINGWe continually evolve our policies, standards, and management system

Supplier risk profiling

External data

Performance monitoringComprehensive audits Targeted assessments

Key Performance Indicator data

Multi-industry collaboration

Remediation

Capability building

Business IntegrationOn-boarding

SER scorecardIntegrated SER and procurement goals

We transparently report on our supplier responsibility program performance

Stakeholder engagement

SENSING RISK ADDRESSING RISK

TRANSPARENT SOCIAL VALUES HP has a history of industry leading transparency

to publish supply chain responsibility code of conduct (2002)

Named to DJSI World Index, FSTE4Good, CDP Climate, Water and Supplier Engagement A lists for 2017

IT company to publish aggregated supplier audit results (2005)

Voted most trusted technology company by consumers (PonemonInstitute, 2015)

IT company to publish its supply chain smelter list (2013)

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1st

1st

1st IT company to publish a list of suppliers (2008)

1stIT company to publish complete GHG (2013) and water footprint (2014)

1st

Recognized as the industry leader in addressing forced labor and human trafficking (Know the Chain 2016)

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SUPPLIER ONSITE SURVEY (SOS) APP PILOTImproving real-time data by empowering employees to report on sustainability issues

WHATSOS App provides real-time input of critical Labor, Health & Safety conditions in HP’s supplier factories

WHYIncrease visibility of sustainability issuesdeeper in the supply chain

WHOHP employees visiting or stationed at HP or supplier factories

SOS App: http://www.navreh.com/sos/#home_form

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BUSINESS INTEGRATION AND SHARED VALUE

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SER SCORECARDAddressing risk and capturing opportunity: SER scorecard drives shared value outcomes

TOTAL SUPPLIER PERFORMANCE MANAGEMENT

SCORE

SOCIAL AND ENVIRONMENTAL RESPONSIBILITY

SCORE

BUSINESS SCORE X =

Zero toleranceAudit/Assessment results

Timely corrective action planMaterial compliance

EnvironmentalConflict minerals

TechnologyQualitySupply

CostBusinessService

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ADVANCING SOLUTIONS AS AN INDUSTRY

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MULTI-INDUSTRY COLLABORATIONCritical to achieve sustainable change at scale

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ONE OF THE WORLD’S MOST SUSTAINABLE COMPANIES

2017 Climate and Water “A” Lists

2017 Supplier Engagement “A” List

World Index, 2012-2017

Received Excellence Award for sixth time

Included on the FTSE4Good Index since 2003

One of the Most Sustainable Corporations in the World

International Corporate Achievement in Sustainable Development

Rated among the top 1% technology companies for CSR

Industry leader for addressing forced labor and human trafficking

Perfect 10 for efforts in corporate social responsibility, 2016 and 2017

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THANK YOU