HPE targets 100 million tons of supply chain CO2e reductions

HPE is raising the bar by becoming the first company to establish a comprehensive supply chain management program that requires companies in their value chain to set science-based emissions reduction targets. Guest contributor Cliff Henson, SVP of Global Supply Chain at HPE, explains how HPE’s goal will build its suppliers’ capabilities and improve industry standards and practices.

As a global organization with a supply chain that spans the world, HPE has a responsibility to build the capabilities of our suppliers, hold them accountable, and work together with them to reduce the impact of our operations. Our commitment to best practice supply chain standards ensures we remain a trusted sourcing partner to our customers by providing them with high-quality products that are manufactured responsibly.

I’m pleased to announce that HPE has launched the world’s first comprehensive supply chain management program that requires companies in its value chain to set science-based emissions reduction targets. A landmark initiative, the program includes three key components: an aggressive new goal to drive accountability within our own supply chain; a plan to build the capability of our suppliers to set science-based targets in their own operations; and a commitment to lead the business community by setting a standard for supplier GHG engagement and abatement. It’s a ripple effect that will drive action through our suppliers, customers and the world.

As part of this new program, we are setting aggressive goals for ourselves and our suppliers:

• 80% of HPE manufacturing suppliers by spend will be enabled through capacity-building to set science-based emissions reduction targets in their operations by 2025. If the goal is met, we will help our suppliers avoid 100 million metric tons of emissions – equating to taking 21 million cars off the road for an entire year.
• In addition, HPE will reduce manufacturing-related GHG emissions on an absolute basis in our own supply chain by 15% by 2025, becoming the first IT company to establish a supply chain goal that is in line with climate science.

We know that effecting change in our supply chain, where a sizeable share of HPE emissions occur, has a powerful impact on addressing climate change, and we recognize that achieving these ambitious supply chain targets will take collaboration between HPE and our suppliers. That’s why we are removing the complexity of creating a customized science-based target for our suppliers by providing them with a broad range of tools and resources that will help them build their capability to set and achieve targets that drive down emissions within their own operations. This will include science-based target development, ongoing guidance and feedback, and access to tools and resources necessary for reducing emissions.

This new program continues HPE’s legacy of transparency, corporate stewardship and global leadership. Hewlett-Packard was the first electronics company to publish a list of our suppliers and we are taking our transparency one step further by becoming the first company to now publicly track our suppliers’ progress on setting and achieving science-based targets, holding them accountable and driving climate action.

Of course, no one company can solve climate change – it requires global collaboration and commitment. Our hope and aim is that this innovative program will act as a model for the industry and the world.

Cliff Henson is Senior Vice President of HPE’s Enterprise Group Global Supply Chain. This function is responsible for driving best in class supply chain performance and customer experience for the Enterprise Group’s $24B business segment.