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

HP Agenda 06/05/09 About HP & Global Citizenship Environmental Sustainability Supply Chain Social & Environmental Responsibility 2 1 3 2 1 3

HP’s global citizenship legacy 06/05/09 HP’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 leadership 1987 First IT company HW recycling. 1987 Computer product recycling 1988 Hazardous Waste Minimization Council 1989 PVC removed from DeskJet pkg 1991 Planet Partners Program; Ozone depleting substances eliminated 1992 Design For Environment Program; EPA Energy Star Partner 1993 Instant-On Technology 1998 General Specification for the Environment HP’s deep-rooted legacy focused on corporate social and environmental responsibility 1930s Commitment to the community 1950s Global Citizenship objective 1970 First environment control coordinator at HP 1971 Recycling computer print-outs and punch cards. 1973 Environmental policy to reduce pollution 1975 Energy Conservation Guidelines 1976 Van pools in Bay Area. Innovation to lessen IT’s impact and enable the sustainable economy 2001 Bio plastics corn printer shell. 2002 Supply Chain code of conduct; Bulk Delivery of Volume orders 2003 1 st signatory to have WEF emissions data accepted. 2004 Co-established pan-European take back and compliance system 2006 Dynamic Smart Cooling. 2006 International climate change initiative World Wildlife Fund. 2007 Recycled 1 billions pounds; 1 st E*4.0 PC; 1 st EPEAT Gold PC 2008 RPET from PP used in HP cartridges

HP global citizenship and environmental sustainability mission 06/05/09 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. POSITIONING MISSION 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 responsible IT company

HP social & environmental sustainability framework 06/05/09 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. PROGRAM STRATEGIES Advanced 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 Green Assure product manufacturing Innovate ways to build a sustainable economy Walk the Talk Retain & Recruit best & brightest Lead the industry and raise the standards Impact Complexity OUR HOUSE YOUR HOUSE OUR PLANET Operations Supply chain Products services solutions Sustainable 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

HP Live Green Important to our employees 06/05/09 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

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

HP Environmental Sustainability 06/05/09

Environmental sustainability is critical for customers 06/05/09 TODAY 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

TODAY

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

What Sustainability Means to HP: 06/05/09 Reducing impact throughout the product lifecycle Product lifecycle Supply chain responsibility Product materials Energy efficiency Product reuse and recycling

Three priorities where HP can make the greatest impact 06/05/09 Supply chain responsibility ENERGY EFFICIENCY Product reuse and recycling Climate and energy

06/05/09 “ 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)

HP supply chain: broad cross section of products 06/05/09 Technology Systems Group Imaging and Printing Group Personal Systems Group

Supply chain manufacturing locations 06/05/09 HP’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

Risky Business in 2008 06/05/09 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.

Making progress in the supply chain 06/05/09 Corporate policy Code of conduct Supplier assessment Supplier audit Corrective action Capability building 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

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

06/05/09 Root Cause Analysis is critical to solving problems A management systems approach drives sustainable solutions Labor Health & Safety Environment Ethics Management Systems Uphold the highest standards Evaluate & control exposure to hazards Treat employees with dignity & respect Protect the environment Electronic Industry Code of Conduct

EICC : www.eicc.info 06/05/09 GeSI SCWG: www. gesi.org Coalition Members

Global Initiatives & Local Programs 06/05/09 June 5, 2009 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 2 nd & 3 rd 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

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 2 nd & 3 rd 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

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 06/05/09 40 days of training with 45 major supplier companies in China FISI 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.

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

Building a Business Case 06/05/09 Metrics are submitted in the following categories; 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)

A call for action... 06/05/09 Think Globally Act Locally Change Personally

06/05/09 Thank You