REINVENTING ETHICAL, SUSTAINABLE SUPPLY CHAINS

Transcription

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

2 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 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. 2 Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.

3 JUDY GLAZER Global Head of Sustainability and Product Compliance ANNUKKA DICKENS Human rights and Supply Chain Responsibility Director 3 Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.

4 AGENDA Sustainability at HP Reinventing ethical, sustainable supply chains Questions 4 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. 5 Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.

6 OUR CORE GROWTH FUTURE $300B+ TAM * $220B+ TAM * $40B+ TAM * PRINTING Revitalize consumer Drive commercial Disrupt copier market Accelerate graphics Lead 3D printing PERSONAL SYSTEMS Lead commercial Grow premium Drive commercial transformation Create new immersive categories SERVICES AND SOLUTIONS *Source: HP internal analysis as of October, Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.

7 Customers call for it Employees value it Investors watch for it 7 Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.

8 FACING THE CHALLENGES OF THIS CENTURY 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 2.3 Number of Earths we ll need by Copyright HP Development Company, L.P. The information contained herein is subject to change without notice.

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

10 REINVENTING FOR A BETTER WORLD Circular and low carbon economy at scale Learning and digital inclusion for the underserved Supply chain leadership going beyond the factory floor 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 Empower 500,000 factory workers with educational programs Double factory participation in sustainability programs 9 Selected goals Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice. Selected goals Learn more in our annual Sustainability Report

11 REINVENTING ETHICAL, SUSTAINABLE SUPPLY CHAINS Innovations to identify risk, drive shared value and foster industry collaboration 11 Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.

12 MANAGING RISK THROUGHOUT THE SUPPLY CHAIN Spotlight on: Supplier Onsite Survey (SOS) App BUSINESS INTEGRATION AND SHARED VALUE Spotlight on: SER Scorecard ADVANCING SOLUTIONS AS AN INDUSTRY Spotlight on: Multi-industry collaborations 12 Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.

13 MANAGING RISK THROUGHOUT THE SUPPLY CHAIN 13 Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.

14 HP S APPROACH TO RISK SENSING We continually evolve our policies, standards, and management system SENSING RISK ADDRESSING RISK Stakeholder engagement Supplier risk profiling External data Performance monitoring Comprehensive audits Targeted assessments Key Performance Indicator data Multi-industry collaboration Remediation Capability building Business Integration On-boarding SER scorecard Integrated SER and procurement goals We transparently report on our supplier responsibility program performance 14 Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.

15 1 st to publish supply chain responsibility code of conduct (2002) 1 st IT company to publish complete GHG (2013) and water footprint (2014) 1 st IT company to 1 st IT company to publish its supply publish a list of chain smelter list suppliers (2008) (2013) TRANSPARENT SOCIAL VALUES HP has a history of industry leading transparency 1 st 15 IT company to publish aggregated supplier audit results (2005) Named to DJSI World Index, FSTE4Good, CDP Climate, Water and Supplier Engagement A lists for 2017 Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice. Voted most trusted technology company by consumers (Ponemon Institute, 2015) Recognized as the industry leader in addressing forced labor and human trafficking (Know the Chain 2016)

16 SUPPLIER ONSITE SURVEY (SOS) APP PILOT Improving real-time data by empowering employees to report on sustainability issues WHAT WHY SOS App provides real-time input of critical Labor, Health & Safety conditions in HP s supplier factories Increase visibility of sustainability issues deeper in the supply chain WHO HP employees visiting or stationed at HP or supplier factories SOS App: 16 Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.

17 BUSINESS INTEGRATION AND SHARED VALUE 17 Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice. 17

18 SER SCORECARD Addressing risk and capturing opportunity: SER scorecard drives shared value outcomes SOCIAL AND ENVIRONMENTAL RESPONSIBILITY SCORE Zero tolerance Audit/Assessment results Timely corrective action plan Material compliance Environmental Conflict minerals X BUSINESS = SCORE Technology Quality Supply Cost Business Service TOTAL SUPPLIER PERFORMANCE MANAGEMENT SCORE 18 Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.

19 ADVANCING SOLUTIONS AS AN INDUSTRY 19 Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.

20 MULTI-INDUSTRY COLLABORATION Critical to achieve sustainable change at scale 20 Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.

21 ONE OF THE WORLD S MOST SUSTAINABLE COMPANIES 2017 Climate and Water A Lists 2017 Supplier Engagement A List Industry leader for addressing forced labor and human trafficking Perfect 10 for efforts in corporate social responsibility, 2016 and 2017 World Index, International Corporate Achievement in Sustainable Development One of the Most Sustainable Corporations in the World Included on the FTSE4Good Index since 2003 Received Excellence Award for sixth time Rated among the top 1% technology companies for CSR 21 Copyright HP Development Company, L.P. The information contained herein is subject to change without notice.

22 TAKE THE NEXT STEPS Understand our Supply Chain Approach Review progress against key goals and metrics in our Sustainability Report Access our Sustainability website and Supply Chain Responsibility page 22

23 THANK YOU

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