The Pioneering Past and Future of HP's Sustainability Efforts
The Pioneering Past and Future of HP's Sustainability Efforts
Hewlett Packard, the world's biggest technology company, ships 3.5 products per second.* That's a lot of printers, cartridges, computers, servers, handheld devices, etc. No tech company -- not even Google -- is more important to the health of the planet.
Fortunately, HP takes sustainability seriously. HP topped Newsweek's environmental ranking of 500 big U.S. companies, as well as a similar (but less credible) list assembled by Corporate Responsibility magazine. It has set tough goals for itself around greenhouse gas emissions, energy efficiency of its products and recyling.
"It's in our company's DNA," says Engelina Jaspers, HP's vice president of environmental sustainability. "This has been underway for decades."
Engelina has been the steward of HP's environmental efforts for just about a year; she has been with HP for 12 years and before than worked for about 15 years at Eastman Kodak, mostly in sales and marketing. We had lunch today in Washington to talk a bit about where the company has come from, where it's going and how an executive who commands just a handful of executives can help move a company that generated $115 billion in revenues last year.
She's right about the company's DNA. Despite some big-time stumbles in recent years -- the embarrassing tenure of CEO Carly Fiorina and the even more embarrassing exit of CEO Mark Hurd -- HP has been a model of corporate responsibility since it was started after World War II by Bill Hewlett and Dave Packard. Their path-breaking "HP Way" corporate philosophy says, among other things, that companies need to be about something bigger than generating short-term profits. As a Stanford magazine profile put it:
"I think many people assume, wrongly, that a company exists simply to make money," Packard told an HP management training session in 1960. "While this is an important result of a company's existence, we have to go deeper to find our real reason for being.... A group of people get together and exist as an institution that we call a company ... to do something worthwhile -- they make a contribution to society.... The real reason for our existence is that we provide something which is unique."
HP, for example, was a pioneer in electronics recycling. It built a recycling facility in Roseville, CA, (pictured above) in the mid-1990s, long before the rest of the electronics industry took recycling seriously. (See my 2007 FORTUNE story, The End of Garbage.) There, HP disassembles old computers and printers, and extracts valuable metals that, at least in theory, pay for the operation. "Things come in as e-waste," Jaspers says. "They go out as commodities." Even before that, HP recycled ink cartridges. Today, at a plant near Montreal operated with a partner called the Lavergne Group, HP is using a closed-loop plastic recycling system that incorporates post-consumer recycled plastics -- from sources such as water bottles and ink cartridges -- into the manufacture of new inkjet cartridges. Of course, as HP takes responsibility for its products at the end of their life, the company increasingly designs them in a way that makes it easier for products to be reused or recycled. HP has said it will use a total of 100 million pounds, cumulatively from 2007, of recycled plastic in HP printing products.
A target like that sound good, but it's hard to know how meaningful it is, without context; it would be better for HP to commit to recycling a percentage (increasing annually) of all the electronics that it sells.
Other HP goals, fortunately, are more clear cut. The company says it will:
• Reduce the energy consumption and associated GHG emissions of all our products to 40 percent below 2005 levels by the end of 2011.
• Reduce GHG emissions from HP-owned and HP-leased facilities 20 percent under 2005 levels by 2013 on an absolute basis.
Meeting the greenhouse gas goal will be challenge, Jaspers told me, because it requires sharply reducing emissions even as the company keeps growing. Among other things, HP has installed solar panels on a facility in San Diego (through a deal with SunPower) and it built a super-efficient data center in Wynyard in the UK. (See the video below for more.)
So how does Jaspers "manage" all this, along with the research into sustainability at HP Labs, the greening of HP's supply chain, environmental reporting and marketing?
Actually, she doesn't. She's got a staff of just about 12 people and mostly operates by coordinating and cheerleading others in the HP ecosystem. A big goal for the year ahead, she told me, is "embedding sustainability even further into our organization, especially with the companies we've acquired." In recent years, HP has bought 3Com, Palm and EDS. She's bringing in outside environmental experts to talk to the top brass, among other things.
When I asked whether any of the top execs at HP has a special passion for sustainability, Jaspers told me, in effect, that it doesn't really matter to her whether an executive loves to hike or has a personal commitment to green issues. Better, she said, to focus on the business case, on the way that sustainability can drive revenues, reduce costs or spark innovation.
"I want to be a business person first, who brings in sustainability as key tool," she said.
"It's not about getting your CEO passionate about sustainability," she went on. "It's about connecting sustainability to your CEO's passion."
Speaking of the CEO, HP's environmental efforts conspicuously lacked visible support from the top when Hurd was in charge. IBM, Google and GE have all done a better job talking publicly about why sustainability matters. When HP gets a new CEO, it will be interesting to see if the company's marketing around sustainability can become as good as its practices.
GreenBiz.com Senior Writer Marc Gunther is a longtime journalist and speaker whose focus is business and sustainability. Marc maintains a blog at MarcGunther.com. You can follow him on Twitter @marcGunther.
* Not literally, of course -- who would want 0.5 of a printer or computer?