HP Becomes First in Technology Sector to Release List of Top Suppliers

HP today publicly detailed its largest suppliers, representing more than 95 percent of HP's procurement expenditures for materials, manufacturing and assembly of HP's products worldwide. Separately, HP announced a pilot programme to empower workers and advance women’s health issues among its suppliers.

The release of this list, the first by a major technology company, promotes transparency and progress in raising standards in the IT industry supply chain. This will result in positive operational changes in supplier labour, health and safety, environmental and ethics practices, and will encourage other companies to do more to advance supply chain responsibility.

The list of suppliers includes contract manufacturers, electronic manufacturing services providers, original design manufacturers, and commodity suppliers.

 “HP is sharing our list of top suppliers to enable collaboration, increase supplier accountability and build on our commitment to supply chain transparency,” said Mark Hurd, HP chairman and chief executive officer. “We work closely with our suppliers to promote improved social and environmental practices, and in the process, touch the lives of more than 400,000 workers around the world.”

As the world’s largest IT company, HP operates the largest supply chain in the industry. The company’s top suppliers must comply with the Electronic Industry Code of Conduct (EICC) and meet HP’s stringent social and environmental responsibility (SER) expectations, wherever in the world they operate.

"By publishing a list of its top suppliers, HP is setting a precedent that the industry should follow," said the Rev. David M. Schilling, director, Global Corporate Accountability Program, Interfaith Center on Corporate Responsibility. "This action demonstrates HP's commitment to continuously improve the lives of workers in factories making its products."

HP has a legacy of leadership in advancing supply chain SER, including the following achievements:

• HP established in 2002 a supply chain social and environmental responsibility policy and extended HP’s Supplier Code of Conduct to its supply base;
• HP helped to lead the development of the industry-wide EICC, which was introduced in 2004;
• HP has to date conducted more than 400 audits with first-tier suppliers worldwide;
• HP has launched several programmes with suppliers in Mexico, Eastern Europe, China and Southeast Asia that give them tools and skills they can use to improve their performance in social and environmental responsibility;
• HP actively promotes and champions supplier diversity, offering under-represented businesses equal opportunities to become suppliers and resellers.
• In the Europe, Middle East and Africa (EMEA) region, HP joined forces with the Copenhagen Centre for Corporate Responsibility and the Copenhagen Business School to traine suppliers in the Czech Republic, Hungary and Poland on management tools needed to operate their businesses in a socially and environmentally sustainable manner. The project was supportred by a grant from the European Commission.
• In 2007, HP EMEA published a set of guidelines for multinational companies to promote social and environmental responsibility throughout their global supply chains, in particualr among small and medium-sized enterprises.

In another significant step towards furthering supply chain SER leadership within the technology industry, HP today also announced its efforts to advance women’s health issues among suppliers.

The HERproject, or Health Enables Returns, is a health training programme developed in response to the findings of a Packard Foundation study of women’s reproductive health in Mexico and China. HP is initiating the HERproject in Ciudad Juarez, Mexico, through a partnership with Business for Social Responsibility (BSR), a global leader in corporate social responsibility research and consulting.

HERproject will work with two HP suppliers, Pegatron Technology and Foxconn, over a 12-month period beginning in May 2008. HERproject will conduct an initial baseline factory health needs assessment of female workers, compile results, conduct peer educator training, share health knowledge with factory workers, conduct factory-based awareness building, and measure the impact on workers.

The initiative plans to address a variety of health needs including breast cancer, diabetes, hypertension, human papillomavirus, cervical cancer, obesity and nutrition, family planning and reproductive health education, domestic violence prevention, and childcare, especially for single mothers. HP also has plans to launch the HERproject in China. HP and BSR will consider rolling out the HERproject in other regions once a full impact assessment is complete.

“Pegatron Management is committed to providing health and wellness programmes that empower our workers,” said Gavin Chen, general manager, Pegatron Technology. “By leading companies to augment worker health awareness, HP is giving companies and workers the tools to improve and increase workplace standards and workers’ lives.”

More information on HP’s supply chain SER leadership is available at http://www.hp.com/hpinfo/globalcitizenship/gcreport/supplychain.html.
The full FY07 Global Citizenship Report is available online at http://www.hp.com/go/report

HP focuses on simplifying technology experiences for all of its customers – from individual consumers to the largest businesses. With a portfolio that spans printing, personal computing, software, services and IT infrastructure, HP is among the world’s largest IT companies, with revenue totaling $107.7 billion for the four fiscal quarters ended Jan. 31, 2008. More information about HP (NYSE: HPQ) is available at www.hp.com.

© 2008 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.
4/2008