Work description: I researched and wrote this piece to deliver as a ghostwritten CSR summary for a client in May of 2015. The draft went through additional revisions after this version, including changes to the working title.

Insights from HP’s Latest CSR Report

Global IT company Hewlett-Packard (HP) has struck a balance between generating stakeholder interest and business strategy with its corporate social responsibility (CSR) initiatives. In its most recently published CSR report of 2014, HP’s Living Progress Report continues a trend of CSR innovation. Despite the complexity of the full-length report, the highlights are conveyed through useful interactive infographics and concise summaries on HP’s website. These increase investors’ ability to glean insights and track HP progress at a glance.

Environmental progress is one of HP’s areas of expertise. Through innovation and transparency measures, HP has effectively reported and maintained steady progress towards its environmental goals for over a decade. HP’s Executive Summary announces how its environmental strategy has earned HP high marks such by earning the highest possible score of 100 for CDP carbon disclosure score and an A ranking for carbon-reduction. Currently, investors should note how HP plans to meet its upcoming carbon footprint benchmarks:

  • By 2020 reduce total GHG emissions from operations by 20% compared to 2010

  • By 2020 decrease first-tier product and manufacturing transportation-related GHG emissions intensity in supply chain by 20% compared to 2010                                             

Supply chain management is part of HP’s broader strategic CSR approach. It achieves influence upon its supply chain through business incentives, training programs and internal audits for environmental and labor standards. That’s why ongoing labor standard training programs and audits are worth tracking in the upcoming Living Progress Report. HP has also projected efforts to raise carbon standards in its supply-chain with several goals for the 2014:

  • Add 40 new suppliers to support the supply chain GHG emissions reduction goal

  • Increase nonproduction supplier reporting on GHG emissions to 80%

 One of the ways HP has generated interest in its 2014 report is by preventing the use of forced labor. HP recently required its suppliers directly hire migrant workers according to the HP Supply Chain Foreign Migrant Worker Standard, becoming the first IT company to do so. By partnering with the non-profit Verité, an organization that works with multinational corporations to improve labor standards, HP prevents hiring workers whose third-party contractual agreements and migrant status result in severely restricted worker rights. In contrast with its environmental goals, which often simultaneously produce cost-reduction benefits, HP’s labor standards are a CSR challenge that may not correspond with price competition. That’s why investors should follow up on HP’s progress with this groundbreaking initiative along with its overall review of labor standards. 

Another point of interest is HP’s innovative approach to consumer privacy. HP advocates for the development of privacy standards as digital technology becomes increasingly cloud based and big data driven. HP is now working to develop a code of ethics to apply to big data collection and analysis called the Unified Ethical Frame for Big Data Analysis in conjunction with the Information Accountability Foundation (IAF). Likewise, it has set several certification goals for 2014, which investors should look for in the next report:

  • Certification from the Asia-Pacific Economic Cooperation Cross Border Privacy Rules System (APEC CPBR)

  • Certification from the European Union Binding Corporate Rules for Processors (EU BCR-P)


Additional Sources:

http://www.destinationgreenit.com/hps-environmental-goals-and-policies

http://irps.ucsd.edu/assets/001/503684.pdf

http://www.triplepundit.com/2013/05/hp-sustainability-report-2012/