Package Sustainability at Hewlett Packard · Package Sustainability at Hewlett Packard Judy Glazer...
Transcript of Package Sustainability at Hewlett Packard · Package Sustainability at Hewlett Packard Judy Glazer...
© 2007 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice
Package Sustainability at Hewlett PackardJudy GlazerDirector, Global Social and Environmental Responsibility Operations
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Agenda• HP overview • Global citizenship
priorities• Package environmental
and regulatory trends• HP innovation strategy
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HP today• Fortune 14 company • Simplifying technology experiences
around the world• 178 countries• 172,000 employees• 145,000 sales partners • 70,000 service partners
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Financial strength
HP Services$ 16.6B
Imaging & Printing Group$ 28.4B
Enterprise Storage & Servers$ 18.8B
Software & Other$ 2.3B
HP Financial Services$ 2.3B
Personal Systems Group$ 36.4B
FY07$104.3B
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1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08
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Revenue
Non-GAAP EPS
Revenue & EPS performanceIn billions
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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
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HP’s Global Citizenship Objectives
Established in 1957Design for Environment Program 1992
Product re-use & recyclingSupply chain Climate & EnergyHP provides customers with efficient reuse and recycling options, and we collaborate with other leading organizations to develop common standards and solutions
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
HP is providing leadership to the electronics industry’s efforts to raise labor and environmental standards in our supply chain through collaboration
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Global citizenship prioritiesReducing impact throughout the product lifecycle
• Design for the environment
• Responsible manufacturing and supply chain practices
• Efficient energy usage
• Product reuse and recycling
ProductProductlifecyclelifecycle
Recycle
DFE
Use
Mfg& SC
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Sustainability – What does it mean?
EnvironmentalSocial
Economic
Sustainability
“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
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Sustainability Evolution
Reactive Proactive
Product Safety
Product Stewardship Sustainability
ProductLiability
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Packaging regulatory trendsNJ rigid container
1990’s 2000 2005 2008-2012
Germany Green Dot
US state rigid
container CA toxic-free oceansCanada
Pkg’g fees
Brazil pkg’g TB
EU REACHChina RoHSEU Pkg’g Directive
1980’s
Regulations aimed at landfill diversion and reducing environmental impact: • Takeback fees & infrastructure• Materials restrictions or substance declaration• Reporting
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Packaging regulation perceived as effective tool to reduce solid waste
Municipal Solid Waste in the United States
00.5
11.5
22.5
33.5
44.5
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1966 1980 1990 2000 2005
Per c
apita
Was
te p
er D
ay (l
bs)
Containers & Packaging
Source: US Environmental Protection Agencyhttp://www.epa.gov/garbage/facts.htmhttp://www.epa.gov/garbage/pubs/mswchar05.pdf
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Role of Non-Governmental Organizations
• Influencing legislative and corporate agendas
• Creating customer demand (consumer and enterprise)
• Encouraging and leveraging transparency
• Specialized expertise
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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
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HP Strategy• Building capability in the
industry• Benchmarking and goal
setting• Engagement along the entire
value chain• Materials innovation• Design for Logisitcs
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Building Industry Capability:Environmental Electronics Packaging ProgramUniversity of California Santa Barbara Bren School project
• Updated Packaging Design forthe Environment Guideline for the Electronics Industry
• Study Guide
• Certification Exam
• Industry-wide accessible site for the Guideline, Study Guide and Exam
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Building Industry Capability: Lifecycle Analysis
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
EPS
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Benchmarking and goal setting
• Expand existing tools−New Product Introduction
tools−EU take-back fee
database
• Analyze historical data• Establish reduction goals
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HP Packaging Weight Trends
290278
297
249
48 5466
51
0
50
100
150
200
250
300
350
2005 2006 1Q07 2Q07
Gra
ms
of P
acka
ging
per
Uni
t Sol
d
Paper
Plastic
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Materials Innovation• Replacement of PVC
with R-PET & other packaging materials
• Alternate pallet materials and designs
• Molded pulp for heavier products
• Increased use of post-consumer material
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Replacement of PVC with R-PET
Prior solution in PVC clamshell
• Size reduction and material change
• Collaboration along the value chain
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Lightweight Plastic Pallets for Air Shipments
• Airfreight weight reduction: 35-45 lb pallet reduced to 8 lbs
• CO2 reduction: 7 metric tons for China to Europe, Latin America for notebook computers in 2006 alone
• Space savings allow more units per container
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Plywood pallet limitations
• Deck breaks causing carton damage
• Phytosanitary sterilization
• Poor reuse and recycling rate
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Pallet Recycling
Recycled High Impact Polystyrene is melted down and reused
Polystyrene is a by-product of oil refining
Recycled Expanded Polystyrene is made into insulating
panels used in home
construction
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Design for Logistics• Product, Packaging and Logistics decisions
determine total environmental footprint• Examples
– Cube optimization– Bulk pack
Packagematerials selection
Packaging Environmental FootprintPackaged
product size and weight
Product size, weight & physical robustness Logistics
Environmental Footprint
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The ROSe Tool
• Product fragility vs. pack size
• Package design• Cube maximization
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Notebook Packaging Reduction
Was 48 Is 60 Will Be 66
25% Reduction in Packaging Material
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Bulk Packaging DesignIndividually Boxed Units = 24 Units8 Units/box:
2 layers with4 units each
Layer 2Layer 1
vs.
8 keyboards,mice, and
power cords
Bulk Pack Pallet = 32 UnitsInside 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
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Packaging Investigations
• 100% post-consumerExpanded Polystyrene cushions
• Bio-based plastics
• Enterprise customer package take-back
• Consumer package return
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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
Q&A