Package Sustainability at Hewlett Packard

Transcription

1 Package Sustainability at Hewlett Packard Judy Glazer Director, Global Social and Environmental Responsibility Operations 2007 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

2 Agenda HP overview Global citizenship priorities Package environmental and regulatory trends HP innovation strategy 2

3 HP today Fortune 14 company Simplifying technology experiences around the world 178 countries 172,000 employees 145,000 sales partners 70,000 service partners 3

4 Financial strength FY07 $104.3B In billions Revenue & EPS performance $29 $1.00 HP Financial Services $ 2.3B HP Services $ 16.6B Software & Other $ 2.3B $27 $0.90 $0.80 Enterprise Storage & Servers $ 18.8B $25 $0.70 $0.60 Imaging & Printing Group $ 28.4B $23 $0.50 $0.40 $21 $0.30 Personal Systems Group $ 36.4B $19 $0.20 $0.10 $17 $0.00 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 Revenue 4 Non-GAAP EPS

5 HP Supply Chain Procurement Largest purchaser of electronic components Logistics Every day HP delivers 1.3 million Inkjet cartridges, 110,000 printers, 75,000 personal systems, 3,500 servers 5

6 HP s Global Citizenship Objectives Established in 1957 Design for Environment Program 1992 Supply chain HP is providing leadership to the electronics industry s efforts to raise labor and environmental standards in our supply chain through collaboration 6 Climate & Energy HP aims for leadership in energy efficiency in our products as well as our own operations, and we collaborate with others to extend our reach Product re-use & recycling HP provides customers with efficient reuse and recycling options, and we collaborate with other leading organizations to develop common standards and solutions

7 Global citizenship priorities Reducing impact throughout the product lifecycle DFE Design for the environment Recycle Product lifecycle Mfg & SC Responsible manufacturing and supply chain practices Efficient energy usage Use Product reuse and recycling 7

8 Sustainability What does it mean? Sustainability Economic Social Environmental 8 Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. World Commission on Environment and Development 1987

9 Sustainability Evolution Product Liability Product Safety Product Stewardship Sustainability Reactive Proactive 9

10 Packaging regulatory trends US state rigid container Germany Green Dot EU Pkg g Directive Brazil pkg g TB Canada Pkg g fees China RoHS NJ rigid container CA toxicfree oceans EU REACH 1980 s 1990 s Regulations aimed at landfill diversion and reducing environmental impact: Takeback fees & infrastructure Materials restrictions or substance declaration Reporting 10

11 Packaging regulation perceived as effective tool to reduce solid waste Municipal Solid Waste in the United States Per capita Waste per Day (lbs) Containers & Packaging Source: US Environmental Protection Agency

12 Role of Non-Governmental Organizations Influencing legislative and corporate agendas Creating customer demand (consumer and enterprise) Encouraging and leveraging transparency Specialized expertise 12

13 Strategic Options React to the laws as they pass React to the laws as they are proposed Identify and capitalize on new business opportunities Collaborate on roadmaps, standards, and other innovation enablers 13

14 HP Strategy Building capability in the industry Benchmarking and goal setting Engagement along the entire value chain Materials innovation Design for Logisitcs 14

15 Building Industry Capability: Environmental Electronics Packaging Program University of California Santa Barbara Bren School project Updated Packaging Design for the Environment Guideline for the Electronics Industry Study Guide Certification Exam Industry-wide accessible site for the Guideline, Study Guide and Exam 15

16 Building Industry Capability: Lifecycle Analysis EPS Which material generates the lesser footprint on the environment? Molded Pulp Raw material acquisition Energy to produce Impact on finished goods transportation End of Life 16

17 Benchmarking and goal setting Expand existing tools New Product Introduction tools EU take-back fee database Analyze historical data Establish reduction goals 17

18 HP Packaging Weight Trends Grams of Packaging per Unit Sold Paper Plastic Q07 2Q07 18

19 Materials Innovation Replacement of PVC with R-PET & other packaging materials Alternate pallet materials and designs Molded pulp for heavier products Increased use of postconsumer material 19

20 Replacement of PVC with R-PET Size reduction and material change Prior solution in PVC clamshell Collaboration along the value chain 20

21 Lightweight Plastic Pallets for Air Shipments 21 Airfreight weight reduction: lb pallet reduced to 8 lbs CO 2 reduction: 7 metric tons for China to Europe, Latin America for notebook computers in 2006 alone Space savings allow more units per container

22 Plywood pallet limitations Deck breaks causing carton damage Phytosanitary sterilization Poor reuse and recycling rate 22

23 Pallet Recycling Polystyrene is a by-product of oil refining Recycled High Impact Polystyrene is melted down and reused Recycled Expanded Polystyrene is made into insulating panels used in home construction 23

24 Design for Logistics Product, Packaging and Logistics decisions determine total environmental footprint Examples Cube optimization Bulk pack Product size, weight & physical robustness Package materials selection Packaged product size and weight Packaging Environmental Footprint Logistics Environmental Footprint 24

25 The ROSe Tool Product fragility vs. pack size Package design Cube maximization 25

26 Notebook Packaging Reduction Was 48 Is 60 Will Be 66 25% Reduction in Packaging Material 26

27 Bulk Packaging Design 8 Units/box: 2 layers with 4 units each Individually Boxed Units = 24 Units Layer 1 Layer 2 vs. 8 keyboards, mice, and power cords 27 Inside the Bulk Packaging: 8 SFF units, KBs, mice, and power cords in a single box 50%+ reduction in packaging material 33% increase in pack density Bulk Pack Pallet = 32 Units

28 Packaging Investigations 100% post-consumer Expanded Polystyrene cushions Bio-based plastics Enterprise customer package take-back Consumer package return 28

29 Designing for the environment at Hewlett Packard "Environmental responsibility is good business. We've reached the tipping point where the price and performance of IT are no longer compromised by being green, but are now enhanced by it." -- Mark Hurd, CEO 29

30 Q&A