Climate change is one of the most significant and urgent issues facing business and society today. Beyond an environmental matter, it affects the core foundation of economies, livelihoods, food security, health, and quality of life.
As a business community, it’s urgent that we understand our impacts in the world and take decisive actions that align with what climate science tells us are needed to limit global warming to 1.5°C, the most ambitious goal of the Paris Agreement.
At HP, we are working to transform our entire business to drive a more efficient, circular, and low-carbon economy. We join with other leading companies by participating in The Climate Group’s RE100 and EV100 initiatives and in coalitions such as We Mean Business and Climate Savers to drive change within and beyond our industry.
We view the need to act not only as our responsibility, but vital to the long-term success of our business, the customers we serve, and the communities where we operate. As the global head of energy and sustainability for HP Corporate Real Estate and Workplace Services, reducing climate impact through our worldwide operations is one of my top priorities.
Setting targets rooted in climate science
At HP, we have the greatest control to reduce our environmental impact in our direct operations. In early 2017 we adopted a science-based Scope 1 and 2 greenhouse gas emissions (GHG) reduction target in our global operations, aiming for a 25% reduction by 2025 (from a 2015 baseline).
We have met this goal early by aggressively lowering energy consumption through optimization and efficiency projects and by transitioning to more renewable power sources. At HP, this happens both onsite and by procuring off-site renewable power directly from local utilities and through renewable energy credits (RECs) and power purchase agreements (PPAs).
In April, we announced a new, more ambitious goal to achieve a 60% reduction in GHG emissions by 2025, compared to 2015-a target I’m proud to say has been approved by the Science Based Targets Initiative as consistent with levels required to keep warming to 1.5°C.
Reaping added benefits by doing business the right way
In addition to helping us reduce emissions, these science-based targets drive progress toward our RE100 commitment. By the end of 2017, we surpassed our interim goal to source 40% renewable electricity in our global operations by 2020. In fact, as stated in the latest RE100 Progress and Insights Report, HP made the most progress among RE100 members in 2017. We have now reset our renewable electricity target, aiming to source 60% by 2025 and 100% by 2035.
We also proactively track sustainability preferences among our employees. An internal survey found 20% of the employees at our Palo Alto headquarters in California plan to buy an electric vehicle (EV) in the next two years. As one of the first members of EV100, HP committed to install electrical vehicle infrastructures at all feasible company sites worldwide by 2040. In 2018, we offered EV infrastructure at nearly 20% of our global sites, and in 2020 we plan to add EVs to our own fleet. Installing charging facilities enables us to support our employees’ choices and appeal to the values and lifestyles of current and future employees.
Driving synergy across our value chain
Since 2014, HP has set GHG reduction targets across our entire value chain-including operations, supply chain, and products-and we see a definite synergy in doing so.
In early 2019, one of the major product eco-labels for electronics, EPEAT, released new standards for PCs and displays. The fact that HP achieved 95% renewable electricity use at seven key HP Personal Systems facilities, and that we also worked with our top display panel and integrated circuit suppliers to reduce their GHG emissions, helped better our score. HP became the first company to have its desktops, notebooks, all-in-ones, workstations named to the EPEAT 2019 Gold and Silver ecolabel registry, helping us compete better for business where there is a preference or requirement for EPEAT certifications.
From an operational standpoint, demonstrating direct business value from these actions further strengthens internal support to accelerate progress toward our renewable electricity goal and GHG reduction targets. Increasingly, customers are expecting this type of leadership from companies. In fact, HP’s commitment to sustainability-what we call Sustainable Impact-helped the company win more than US$900 million of new revenue last year.
Every decision, every day matters
Every choice we make has an impact. As a business community, it’s our responsibility and opportunity to make choices that have a sustainable impact. Wherever you are on this journey, I encourage you to engage in initiatives like RE100 and EV100 to help guide your company’s actions. Together, we can accelerate the transition to a clean economy future.