HP 2015 Sustainability Report

Introduction

Environment

Society

Integrity

About this report

Through 2015, Hewlett-Packard Company’s EEP program has covered more than 200 production supplier sites. HP Inc. has retained the majority of these facilities. Moving forward, we will expand our monitoring of suppliers’ efficiency activities and action plans to develop a more complete picture of progress made. Product transportation suppliers With more than 1 million products shipped between our manufacturing sites, distri- bution centers, and customers on any typical day, decreasing the carbon footprint of product transport is vital to reducing supply chain GHG emissions. During 2015, GHG emissions from product transportation decreased to 1.6 million tonnes CO 2 e, 6% less than the prior year. Key factors included network optimization and freight consolidation initiatives as well as reduced product volumes. More efficient supply chain netwtork We continually expand and optimize our global logistics network of transportation hubs and routes by improving transportation efficiency, cutting costs, and reducing environ- mental impact. Wherever feasible, we consolidate shipments and send HP products di- rectly to customers or to the distribution centers closest to them. This increases shipping densities, which, in turn, reduces the number of air and ocean transport miles required. This approach reduces environmental impacts and costs related to the use of airplanes, ocean vessels, trucks, and trains that carry HP products. For example: • In Europe, HP’s logistics hub in Piraeus, Greece, serves as a gateway to 17 countries. This decreases transit times from Asia to Europe by five to 10 days compared to the prior routes, while reducing related GHG emissions and freight costs. • Across 22 countries, Hewlett-Packard Company pioneered use of the TransEurAsia Railway freight line to more cost-effectively connect inland China to Western Europe. The nearly 7,000-mile journey takes only 22 days compared to 34 days to truck prod- ucts to the Chinese coast and then ship them to Europe by sea. HP is seeking other industries to use the TransEurAsia Railway to increase capacity, further lowering costs and environmental impacts. • When products from Asia arrive in the United States, our CenterPool program merges less than full truckloads into full capacity intermodal shipments to our five regional distribution centers. From there, we make final deliveries via full truckload shipments to our customers and resellers. We work to improve our performance and drive industry standards in three key areas:

22 HP 2015 Sustainability Report

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