Employees ...................15Customer engagement...16Public engagement........17Social investment ..........18Moving forward ...........20

Product environmentalimpacts .........................7Operations...................10Supply chain ................12Privacy ........................14

HP’s global citizenship priorities ........................2Letter from Carly Fiorina...3HP profile ......................4Global citizenship at HP...5Governance and ethics ...6

2004 Abridged Global Citizenship ReportSee more details in the full report at http://www.hp.com/go/report

2002 First combined HP Social andEnvironmental ResponsibilityReport published

Supply Chain Code of Conduct released

UN Global Compact endorsed

2003 Master Privacy Policy published

Standards of Business Conduct updated

Environmental, Health andSafety Policy revised

HP recycled plastic includedin first hardware product

2003 First integrated HP GlobalCitizenship Report published

Supply Chain SER Programrolled out to top 50 suppliers

Human Rights and Labor Policy adopted

Global Citizenship Policyadopted

70 million HP LaserJet printcartridges recycled sinceinception of program

Half a billion pounds ofelectronic products andsupplies recycled

HP goals:

2004 Complete social and environ-mental responsibility (SER)assessments with 100 highpriority suppliers

Develop a 5-10 year greenhousegas (GHG) reduction goal

Reduce electricity consump-tion by 25% of 2002 totalestimated usage

Divert 80% of solid wastefrom landfill globally

2005 Reduce emissions of specifiedPFCs by 10% from 1995 levels

Add Supplier Code of Conduct to all product materials supplier contracts

Eliminate lead, mercury, cadmium and hexavalentchromium in 50% of electronicproducts sold worldwide, asdefined by the EU’s RoHSDirective

Complete SER assessmentswith 250 high priority suppliers

2006 Collaborate with industryand suppliers to establish anindustry standard suppliercode of conduct

Eliminate lead, mercury, cadmium and hexavalentchromium in 100% of electronic products soldworldwide, as defined by the EU’s RoHS Directive

Complete SER assessmentswith 500 high priority suppliers

2007 Achieve a 500% increasein high-end server energyefficiency, relative to 2002

Recycle 1 billion pounds of electronic products andsupplies

2000

2010

2004

This is an abridged version of the full HP 2004 GlobalCitizenship Report, which describes the management systems,policies and practices we use to meet our global citizenshipobjectives and summarizes our performance during 2003. The full report is available online at www.hp.com/go/report.

2

HP’s global citizenship prioritiesGlobal citizenship at HP encompasses a wide range ofissues, briefly summarized in the contents of this abridgedreport. Nonetheless, we have focused on a few prioritiesto accelerate progress. Our program reflects stakeholderpriorities and HP’s ability to have a positive impact. During 2003, we focused on the following:

Addressing electronic waste. Customers, governments andthe public are paying increasing attention to issuessurrounding the disposal of electronic waste. HP addressesthese issues in an integrated fashion. HP’s efforts todesign for recyclability create products that are easier toupgrade and recycle. The HP Planet Partners™ take-backprogram covers the return and recycling of computerhardware and HP print cartridges at the end of thoseproducts’ useful lives. Finally, HP’s company-wide programto reduce the number of substances and the amount ofpotentially hazardous materials in our products hasprogressed significantly. This reduction in turn facilitatesrecycling and may increase the value of reclaimed materials.For more information, see pages 7-9.

Raising standards in HP’s global supply chain. With oneof the largest supply chains in the information technology(IT) industry, we have significant opportunities – and aresponsibility – to proactively extend standards throughout

our product supply chain. Since we work with thousandsof suppliers, we take a strategic approach to the issue. Inintroducing our Supplier Code of Conduct, we focused onthe 50 suppliers that represent 70% of our expendituresfor product materials. We work collaboratively with oursuppliers to build continuous learning and improvementinto manufacturing facilities throughout our industry. Formore information, see pages 12-13.

Increasing access to information technology. Less than10% of the world’s population can afford to purchase acomputer. Access to information and communicationstechnology (ICT) can play a role in addressing social andeconomic inequality in underserved communities anddeveloping countries. In 2003, we had more than 25projects underway across five continents, touchinghundreds of communities that would otherwise be excludedfrom the benefits of the information revolution. Together withkey partners from the government and community, ICTsolutions have been deployed to assist individuals in areasincluding education, healthcare, job creation and smallbusiness development. For more information, includingspecific project accomplishments, see pages 18-19.

2004 Abridged HP Global Citizenship Report HP’s global citizenship priorities See more details in the full report at http://www.hp.com/go/report

About this report

Currency and measurementAll $ references in this documentare US dollars.

Measures used in the report are metric, except where stated. “Tonnes” refers to metric tonnes.

Reporting yearAll data are for HP’s fiscal year2003 (ending October 31, 2003),unless otherwise noted.

Previous reportsPast global citizenship reports, as well as other materials relevantto the issues presented in this document, are available on theDownloads page atwww.hp.com/go/report.

Joint venturesJoint venture company data areexcluded from this report.

GRI guidelinesWhere appropriate, HP uses theGlobal Reporting Initiative (GRI)guidelines as a basis for reporting.There is a full GRI index on thewebsite at www.hp.com/go/report.

32004 Abridged HP Global Citizenship Report Letter from Carly Fiorina See more details in the full report at http://www.hp.com/go/report

Letter from Carly FiorinaHP is well known for its role in the creation of SiliconValley as well as the role we have played through theyears in pioneering many of the practices that have cometo define corporate and social responsibility. HP wasamong the first companies to provide profit sharing, tomatch employee charitable contributions, to offer flex-timeand to create a corporate code of conduct. As far backas the 1950s, HP was one of the first companies toprovide employees with paid time off for communityservice, and later one of the first to make recycling afundamental part of our operations. We even helpedinvent casual Fridays.

In part, we’ve tried to take a larger role in the worldbecause we have always believed that great organizationsare defined not simply by their capabilities, but by theircharacter. HP has built a global organization loadedwith talent and innovative capability. We believe that itshould be used not only for making a profit, but makinga difference as well.

We’ve learned a lot through the years about the rolecorporations can play. We’ve learned that integratingenvironmentally smart practices across the life of aproduct – from design to end-of-life – can save moneywhile helping to save the Earth. We’ve learned thatfinancial capital alone is not the greatest asset thatcompanies like HP bring to the developing world today.Rather, it’s human capital – our knowledge and experience, and our ability to collaborate with a widerange of partners to maximize our impact. Above all,we have learned the power of technology to unlock thegreat potential of individuals and communities.

We think of global citizenship broadly, as you’ll see inthis report. At the same time, we recognize the importanceof establishing clear priorities to focus our efforts. Ourpriorities reflect pressing challenges facing the informationtechnology industry: addressing electronic waste, raisingglobal social and environmental supply chain standardsand increasing access to information technology.

We made progress in 2003 in each of these areas. Werecycled more than 100 million pounds of electronicproducts and supplies in 2003, raising our total to a halfbillion pounds since 1987. Our goal is to double that to1 billion pounds by 2007. This year, we worked with ourlargest 50 suppliers to improve social and environmentalconditions in their manufacturing facilities. We plan toengage a total of 500 suppliers by 2006. We increasedaccess to technology in 20 countries across five continentsthrough our e-inclusion projects. In this coming year, wewill build on what we’ve learned to touch even morepeople around the world.

We don’t have all the answers, but we do understand thataddressing these challenges requires new approaches andcollaboration – across the industry and with multilateralorganizations, governments and NGOs. Together, wewill continue to define global citizenship and the role ofcorporations in the 21st century.

Sincerely,

Carleton S. FiorinaChairman and Chief Executive Officer

4

HP profileHP is a technology solutions provider to consumers, businessesand institutions globally. Millions of people around the worlduse HP technology every day. HP’s global reach, presence,leadership and its uniquely rich technology portfolio makeit a company unlike any other. HP is the world’s largestconsumer information technology (IT) company, the largestsmall and medium-size business (SMB) IT company and aleading enterprise IT company. The company’s offerings spanIT infrastructure, personal computing and access devices,global services and imaging and printing products.

Corporate objectivesHP’s corporate objectives were adopted in 1957, and theinclusion of global citizenship was an innovation at thetime. Together with our core values, HP’s corporateobjectives were written to serve as a day-to-day guide formanagement decisions and have remained essentiallyunchanged for more than 45 years.

Our seven corporate objectives cover customer loyalty,profit, market leadership, growth, employee commitment,leadership capability, and global citizenship. Specifically,our global citizenship objective states: “Good citizenshipis good business.” We live up to our responsibility to societyby being an economic, intellectual and social asset toeach country and community in which we do business.

HP strategyHP’s goal is to be the leading information technologycompany in the world. We are focused on helping peopleapply information technology in meaningful ways totheir businesses, personal lives and communities. HP’sstrategy is to offer a portfolio of products, services andsolutions that are high tech, low cost and deliver thebest customer experience. This strategy takes advantageof our unique market position and portfolio to differentiateus from our competition.

High tech. HP has been a leading innovator for nearlyseven decades. We invest almost $4.0 billion annuallyin Research and Development (R&D). In addition, weleverage more than $10 billion of our partners’ R&Dinvestments.

Low cost. HP’s size and scale enable us to offer customerscompetitively priced products and a lower total cost ofownership over a solution’s lifecycle. Our $52 billionsupply chain – the largest in the technology industry –allows us to achieve world-class cost structures and topass on savings to customers.

Best customer experience. Because HP has a uniqueview of a wide range of customers, we are in a greatposition to understand their needs. We are focused onimproving how we interact with customers at every touchpoint – from how they learn about HP and purchase ourproducts, services and solutions, to how they use, manageand discard or upgrade them.

Research and innovationHP has a long history of invention and innovation. Weinvest in areas where we believe we can make a uniquecontribution and establish leadership; we partner for therest. Specifically, HP R&D is now focused on four growthareas: management software, rich digital media, mobilityand security. These span the breadth of our offerings tobenefit a wide spectrum of customers. This year, HP’sExecutive Council launched a cross-company initiativeon environmental sustainability. This initiative will bedriven initially by R&D, and will focus on reducing energyuse and investigating new materials.

HP invested $3.7 billion on R&D in fiscal year 2003.We launched more than 660 new products and closedthe year with 21,000 patents in force worldwide, upfrom 17,000 in fiscal year 2002. This equates to approx-imately 11 new patents per day, double the rate offiscal year 2002.

2004 Abridged HP Global Citizenship Report HP profile See more details in the full report at http://www.hp.com/go/report

Corporate summary

Chairman and CEO:Carly Fiorina

Employees: Approximately 142,000

Ownership:HP is incorporated in Delaware,US. The company is listed on theNasdaq, New York and Pacificstock exchanges, with the tickersymbol HPQ. As of October 31,2003, there were approximately154,800 shareholders of record

Countries of operation:More than 170

Headquarters: Palo Alto, California, US

Regional Headquarters:• Americas: Houston, Texas, US • Europe/Middle East/Africa:

Geneva, Switzerland • Asia Pacific: Hong Kong

Earnings (loss) from operations 12 months ended October 31, 20021,2 (Combined Company) 2003

Net Earnings (loss) Net Earnings (loss) revenue from operations revenue from operations Imaging and Printing Group $20,447 $3,345 $22,623 $3,570 Personal Systems Group 21,895 (372) 21,228 19 Enterprise Systems Group 16,194 (664) 15,379 (54) HP Services 12,326 1,369 12,305 1,372 Financing 2,088 (128) 1,921 79 Corporate Investments 284 (232) 345 (161) Total segments 73,234 3,318 73,801 4,825 Elimination of intersegment net revenue and other (888) – (740) – Corporate and unallocated costs, non-operating income and expense and eliminations – (4,372) – (1,937) Total HP consolidated $72,346 ($1,054) $73,061 $2,888

0

5,000

10,000

15,000

25,000

20,000

Revenue and earnings (loss) from operations by segment (as reported in the 2003 Annual Report)[Million $US]

1Certain reclassifications have been made to prior-period amounts in order toconform to the current-year presentation.2The combined company results of HP and each of HP’s segments for the 12months ended October 31, 2002 include the results of Compaq as if the mergerhad taken place as of the beginning of the period presented. Due to different fis-cal period ends for HP and Compaq, the results for the 12 months endedOctober 31, 2002 combine the results of HP for the 12 months ended October31, 2002 and the historical quarterly results of Compaq for the six-month periodended March 31, 2002 and for the period May 3, 2002 (the acquisition date)to October 31, 2002.

5

Global citizenship at HP We live in a world where half the population lives on$2 a day, 1 billion people cannot read or write, lessthan 10% of the world has access to information tech-nology and 52 of the largest 100 economies in theworld are corporations. As a global corporation, HPhas the responsibility to use our economic power andreach to have a net positive impact on the world.

As we pursue customer loyalty, profit, market leadershipand growth, we are equally focused on dedication toour people, our standards and values, and the reachand depth of our commitment to global citizenship.

HP delivers on our commitment to global citizenship by:

• Conducting business with uncompromising integrity

• Engaging with a variety of external stakeholders – from local communities to the United Nations

• Contributing our resources to addressing inequitiesaround the globe regarding access to information technology and education

• Developing environmentally sustainable products and services

• Protecting the privacy of our customers, partners and employees

HP’s goal is to connect our corporate commitment tobeing a good global citizen to the day-to-day running ofthe HP business. Our strategy is to choose areas wherewe can make a valuable contribution and support thosecommitments not only with money, but more importantly,with our people and our products.

Core. At the core of our approach is our commitment tooperate our business with uncompromising integrity andto engage with a variety of communities, including localcommunities, our supply chain and external stakeholderstrying to improve social and economic conditions aroundthe globe. The HP Standards of Business Conduct andSupplier Code of Conduct were created to ensure thatour business practices and those of our suppliers areconsistent with our values.

Strategic initiatives. HP has chosen to focus our global citi-zenship agenda on environment, privacy, and e-inclusionand education for their strategic importance to our business,the information technology sector and society.

Enablers. Philanthropy, public policy and communicationsplay a critical role in supporting and enabling the successof our strategic initiatives.

2004 Abridged HP Global Citizenship Report Global citizenship at HP See more details in the full report at http://www.hp.com/go/report

Global citizenship framework

Policy leadership

Com

mun

icatio

ns

Communityengagement

Ethics & governance

Environment e-inclusion& education

Privacy Philanthropy

Stakeholder perspective

Prof. Kellie A. McElhaney, Ph.DExecutive Director, Center for Responsible Business,Haas School of Business, University of California, Berkeley, CA, US

How is HP doing?HP’s Global Citizenship strategy isclosely linked to their businessobjectives and core competencies,rather than to individual NGOcampaigns or stakeholder threats.This makes their CSR strategy moresustainable, as they have developedit to be aligned with their businesses,their future markets and their prof-its. At the end of the day, allcorporate strategy (which CSR is)must be tied to profitability. HP getsthis and it is refreshing.

How would you like to see HPimprove in this area? HP has not outwardly built CSRinto their brand. They may want towait until the consumer marketproves more ready. But I think thatHP can act to push the market toreadiness, as opposed to waitinguntil the market is ready. They area market leader; they can shapetheir consumer markets, not waitfor them to swing in this direction.

Socially responsible investing (SRI)HP engages with SRI funds and meets the criteria of manysocially responsible investors (SRI) including Domini SocialInvestments, Henderson Global Investors Limited, ISISAsset Management, Storebrand Investments, Trillium AssetManagement and others. In 2003, HP’s performance wasrecognized by the following SRI indices:

• The Dow Jones Sustainability Index (DJSI) added HP toits list of indexed companies in 2003. The DJSI assessesthe sustainability performance of the largest 2,500companies in the world and selects the top 10% forinclusion in the index. Because the DJSI standards forsustainability are constantly increasing, staying on the listrequires continuous improvement. The DJSI ranked HPas the leading technology hardware and equipmentcompany.

• The FTSE4Good Index listed HP on all four of its marketseries (US, Global, UK and Europe). FTSE, a leadingindex provider, uses these indices to rate the performanceof companies that meet globally recognized corporateresponsibility standards and to facilitate investment inthose companies.

In addition, Innovest Strategic Value Advisors, Inc., aleading independent research firm for the social invest-ment community, ranked HP first of 10 companies in thecomputer and peripherals industry for reporting ofintangible value analysis – including governance,human capital and emerging market issues. HP wasranked fifth for reporting on environmental issues.

Governance and ethics A company cannot be a good global citizen withoutrunning its business responsibly and putting its commitmentto corporate governance and business ethics into practice.

Oversight and managementBoard of DirectorsThe Board’s role is to govern HP to benefit its shareownersand all other stakeholders, including the communitieswhere we work and live. Our corporate governancestandards, ethics, and compliance programs are set atthe highest level, starting with the Board.

HP’s Board has nine members, with HP’s CEO, Carly Fiorina,serving as the Chairman of the Board. Board committees,led by independent directors, are responsible for reviewand oversight of company strategy and practices.

In 2004, HP established a mechanism for all stakeholdersto directly communicate with the Board via email(bod@hp.com), should they have a concern for directorsto address.

Ethics CommitteeThe Ethics Committee oversees the development andenforcement of the company’s ethical guidelines, knownas the Standards of Business Conduct (SBC), and reviewsmajor allegations of SBC violations.

Executive TeamOur executive team of 18 company officers has theresponsibility to ensure that HP’s culture of ethics andcompliance is encouraged across the company.

Internal AuditInternal Audit’s primary role is to assess risks throughoutHP and to evaluate, monitor and improve the effectivenessof controls and governance processes. In 2003, auditsincluded aspects of the Standards of Business Conductand ethical business practices.

Business ethicsHP emphasizes ethics and uncompromising integrity asintegral to the way we conduct business.

In 2003, HP promoted greater awareness of the Standardsof Business Conduct and specific ethical business practices.In 2004, we are providing tools to employees to enablethem to work through various ethical business decisions.Promoting an open culture in which employees feel free toraise concerns without the fear of retaliation is essential toensuring employees understand that no one acting onHP’s behalf may use bribes, kickbacks or other corruptpractices in conducting HP’s business – even if the practiceis assumed to be culturally appropriate.

6 2004 Abridged HP Global Citizenship Report Governance and ethics See more details in the full report at http://www.hp.com/go/report

1Note: these numbers only includeinquiries and allegations receivedthrough the Office of Business Practices via the formal reportingmechanisms. Items raised to othercompliance functions or the Boardare not included. Total is less than100% due to rounding.

Outside activities, employment 12% Employee relations 17% Discrimination, harassment 7% Misuse of company resources 23% Contract compliance 8% Customer/supplier relations 21% Gifts & entertainment 2% Handling sensitive information 2% Antitrust 2% Other 4%

Total number of items 204

Items reported to the Office of Business Practices1, 2003

Standards of Business Conduct (SBC)HP’s Standards of Business Conduct guide our actions,behaviors and decisions. The Standards apply globallyand are translated into over 12 languages. Additionalpolicies and guidelines, including our Personnel Policiesand Guidelines, complement the SBC, available athttp://www.hp.com/hpinfo/investor/sbc.html.

Reporting and seeking guidanceEmployees have several mechanisms to raise ethical concerns. HP encourages use of the Open Door Policyfor employees to talk with their management. Alternatively,employees can submit concerns to compliance expertsor SBC Liaisons.

There are formal, structured communications channels suchas a dedicated telephone line, email and postal mail, foremployees and other stakeholders to confidentially andanonymously report potential violations of law, companypolicy or the SBC. In 2004, HP’s Audit Committeefinalized its policy and procedures for complaints ofquestionable accounting, internal accounting controlsand auditing matters.

In 2003, 204 separate inquiry and allegation items werereported through formal reporting mechanisms managedby the Office of Business Practices (pie chart). All itemsraised are reviewed and addressed. HP is committed topromptly investigating all allegations related to SBC viola-tions and ensuring that the appropriate actions are taken.

MonitoringIn 2003, HP established a Standards of Business ConductCompliance Team of SBC Liaisons to independently andobjectively coordinate and perform investigations. Theteam is charged with ensuring that remedial actions areconsistent and appropriate across HP.

7

Product environmental impactsThe environmental impact of a product is largely determinedat the design stage. Through innovative design we canreduce the environmental impact of our products and that ofour customers.

HP’s Environmental, Health and Safety Policy commits usto provide products and services that are environmentallysound throughout their lifecycle.

To accomplish this objective, HP established its Designfor Environment (DfE) program in 1992. It has threepriorities: energy efficiency, materials innovation, anddesign for recyclability.

Company-wide initiatives to address product-relatedenvironmental issues include Closed-Loop and End-of-Lifeteams that address recycling issues and a RoHS Team,focusing upon reducing lead and other substances inour products. HP’s Executive Council recently identifiedDesign for Environment as a strategic cross-company ini-tiative. The focus, initially, will be on reducing energyuse and investigating new materials.

Energy efficiencyHP is developing products that use energy more efficiently.These products help customers save money while reducingemissions of CO2, a greenhouse gas that is believed tocontribute to climate change.

ENERGY STAR®

HP participates in the US Environmental Protection Agency’sENERGY STAR® voluntary energy efficiency program. Morethan 1,000 HP products are ENERGY STAR® qualified.One hundred percent of eligible products from our PersonalSystems Group and 98.5% of eligible products from ourImaging and Printing Group meet ENERGY STAR® criteria.

2004 Abridged HP Global Citizenship Report Product environmental impacts See more details in the full report at http://www.hp.com/go/report

HP’s new laptops are more energy efficient than theirpredecessors. When in low power mode, the laptops useless than one watt of power, well below the 15 watt levelrequired by the ENERGY STAR® program.

Servers and energy useServers are increasingly important as internet use grows.HP server energy efficiency has improved by more than150% since 1998.

In 2003, HP high-end server energy efficiency increasedby more than 35%, relative to 2002. We are on track tomeet our target to increase efficiency by 200% by the endof 2005, and by 500% by 2007, compared to 2002.

Materials innovationHP product developers work to reduce the amount ofmaterials used in our products and increase the use ofrecycled materials.

The amount of computing power drawn from each unit ofmaterial in our products has progressively improved. Forexample, HP NonStop servers have become significantlymore materials efficient since 1989, delivering 82 timesthe performance per unit of mass.

Alternative designs for desktop PCs can produce significantmaterials savings. For example, transitioning from the tradi-tional commercial desktop ’minitower’ to ’small form factor’and ’ultra-small form factor’ products can save more than50% in materials as measured by weight.

Materials innovation includes the reduction of hazardousmaterials in HP products. HP prohibits or restricts the useof many materials in products through the General Specifi-cation for Environment (GSE). The specification, which inmany cases exceeds legal requirements, is integrated intoour product development process and used by our designersand suppliers.

Lead-free HP’s effort to reduce the amounts of lead (Pb) and othersubstances in our products involves every hardware productline and most major functions, including our in-house design,manufacturing and support teams, as well as collaborationwith HP’s design, manufacturing and repair suppliers.

The European Union Restriction of Hazardous Substances(RoHS) Directive will restrict the presence of certainsubstances, including lead (Pb), in electrical and electronicproducts. The Directive applies to all electrical and elec-tronic products, and their component parts, offered for saleinto the European Union after July 1, 2006. China isexpected to adopt similar legislation with a similar timeline.In addition to lead, these laws restrict the use of mercury,cadmium, hexavalent chromium and two halide-containingflame retardants: PBB (polybrominated biphenyl) andPBDE (polybrominated diphenyl ether).

Goal for 2005

High-end server energy efficiency:• Achieve a 200% increase in

transactions per minute per wattby the end of 2005, relative to2002Progress: On target to meet.

Materials innovation:• Eliminate lead, mercury, cadmium

and hexavalent chromium in 50%of electronic products sold world-wide, as defined by the EU’sRoHS Directive (PBB and PBDEare not used in HP products)

Goal for 2006

Materials innovation: • Eliminate lead, mercury, cadmium

and hexavalent chromium in 100%of electronic products sold world-wide, as defined by the EU’sRoHS Directive

Goal for 2007

High-end server energy efficiency:• Achieve a 500% increase in

transactions per minute per wattby the end of 2007, relative to2002Progress: On target to meet.

2004 Abridged HP Global Citizenship Report Product environmental impacts See more details in the full report at http://www.hp.com/go/report8

From July 1, 2006, HP electronic products will be morethan 99.9% free of these materials except where it is widelyrecognized that there is no technically feasible alternative(as indicated by an exemption under the EU RoHS Directive).HP’s General Specification for Environment (GSE) alreadyprohibits the use of PBB, PBDE and most uses of cadmium,as well as certain uses of lead, mercury and hexavalentchromium, in HP purchased parts, materials and products.

HP’s goal is to exceed compliance obligations by meetingthe requirements of the EU RoHS Directive on a worldwidebasis. Some of our product components already complywith the RoHS Directive and prototype products that meetits standards will be tested during 2004. Most HP productsintroduced in 2005 will meet the RoHS standards.

Recycled plastic in HP scannersIn 2003, we met our goal to introduce a hardwareproduct containing recycled material content recoveredfrom end-of-life HP products. Engineers from multipleproduct lines teamed up with our Planet Partners™ recyclingteam to develop and qualify a plastics formulation thatcould replace virgin plastic with material obtained fromHP end-of-life products. The team developed a materialcalled recycled polyethylene terephthalate (RPET). RPETis a blended material that contains plastic from HP printcartridges recycled in HP’s Planet Partners™ program andpost-consumer recycled plastic drinking bottles. RPET isused in the carriage cover for two HP scanners, theScanJet 4500 and 5550. This reduces virgin materialsuse, and could lead to cost savings.

Two additional scanners using the recycled material willbe launched in 2004. One of these models is expected touse about 100 tonnes of RPET during the next two years.

Design for recyclabilityHP is working to design products that are easier to upgradeand/or recycle. Many HP products have a modular designso that components can be removed, upgraded or replaced.

Features to improve recyclability include, but are not limitedto: eliminating glues and adhesives, marking plastic partsto speed materials identification during recycling, reducingmaterials used and relying on modular design for ease ofdisassembly.

HP is developing a tool to help product designers assessthe recyclability of new products at the design stage. Weexpect to make this tool available to our designers in 2004to enable them to use recyclability as a key product designmetric and help them to track product line improvements.

PackagingHP’s packaging engineers reduce the environmental impactof packaging by reducing the amount of product packaging,increasing recycled and recyclable materials, and designingpackaging that more efficiently uses transportation loadspace. Many of these innovations reduce HP’s costs.

HP is working toward a common system for our industryto use in the marking of packaging materials to facilitatevarious national recycling programs. With partners, HP aimsto jointly establish an industry-wide environmental guide-line and education program for packaging designers.

RecyclingHP’s objective is to offer customers around the globe a returnand recycling service for HP products. This is integral to ourbusiness strategy. Our product end-of-life (EOL) leadershipteam implements our recycling programs company-wide.Through creative recycling strategies we are setting our sightsbeyond legal requirements to benefit both HP’s businessand the environment.

HP recognizes that there are many options when it comesto handling a product at the end of its useful life. HPoffers product trade-in and leasing services, as well asrefurbished products, in addition to our recycling services.

Planet Partners™

HP has recycled computer and printer hardware since 1987.Our Planet Partners™ return and recycling program waslaunched in 1991 to recycle HP LaserJet print cartridges. Theprogram was expanded to include HP inkjet print cartridgesand computer hardware. The program’s objective is to reducethe environmental footprint of these products, minimize wasteto landfill and provide customers with a convenient andenvironmentally sound end-of-life solution.

Packaging innovation examples

All-in-One packaging for personal inkjet printersHP packaging engineers workedwith product designers and supply chain engineers to develop all-in-one packaging for our personalinkjet printers. This single foam unitholds accessories, such as powercords, inside the printer, reducingthe packaging needed for eachproduct. It can be used during tran-sit so less bulk packaging isneeded. This has reduced annualfoam use by 122 tonnes and paperuse by 2,500 tonnes, saving morethan $2.7 million in 2003.

From milk carton to plastic packagingThermoform plastic cushion pack-aging has been developed for harddrives in our industry-standardservers. It contains 80% recycledmaterial, including recycled milkcartons, and stacks together so it canbe transported more efficiently. Thenew design saves HP more than $1million a year in material, transporta-tion and warehousing costs.

9

Globally, the program now operates in more than 30countries and territories, and collected approximately46,500 tonnes (more than 100 million pounds) of usedproducts in 2003.

HP’s goal is to recycle 1 billion pounds of electronicproducts and supplies by 2007.

Computer and printer hardware recyclingHP’s computer hardware recycling program operates inmore than 20 countries and territories. It works throughspecialist vendors that reclaim and recycle computerproducts. We helped develop the technology deployed byour North American recycling partner at three locations(two in the US, one in Canada). We work with more than10 recycling vendors throughout Europe and a pan-Asianrecycling partner in Asia Pacific.

During 2003, we estimate 16,500 tonnes of hardwarewere recycled in Europe and 620 tonnes in Asia on ourbehalf. We recycled approximately 17,700 tonnes ofhardware in the Americas.

e-couponIn early 2003, we launched a US e-coupon pilot programthat gives consumers up to $50 (and $100 during themonth of April to celebrate Earth Day) toward the purchaseof a new HP product when they recycle computer hardwarefrom any manufacturer through HP Planet Partners™.

2004 Abridged HP Global Citizenship Report Product environmental impacts See more details in the full report at http://www.hp.com/go/report

HP establishes recycling standardsfor end-of-life management

HP has established global recyclingstandards for management of end-of-life computer hardware products.These standards are intended toprovide consistent management ofend-of-life materials that HP vendorsmanage on our behalf, and to set ahigh expectation regarding how ourvendors manage their workforce.

HP’s hardware recycling standardsrequire our recycling partners to:

• Reuse, recover or recycle materialsand components

• Prohibit export of materials unlessapproved by HP

• Store and process materials in away that prevents releases to theenvironment

• Provide accounting of materialsprocessed

• Conform to HP’s Supplier Codeof Conduct

• Permit HP to conduct assessmentsto ensure compliance with recycling standards

1992

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Number of HP LaserJet cartridges returned and recycled worldwide1, 1992-2003[Millions]

Materials recycled into new products 71% Energy recovery 29%

HP LaserJet print cartridgerecycling outcomes, 2003

1Includes cartridges returned by customers and cartridges used internally by HP offices.2North America recycling data, other regions similar.

Materials recycled into new products 46.7% Energy recovery 25.4% Non-waste to energy/ controlled incineration 27.7% Landfill 0.2%

HP inkjet print cartridge recyclingoutcomes, 20032

LaserJet print cartridge recyclingWe launched our LaserJet print cartridge return andrecycling program in 1991. Today, we offer take-backprograms for HP LaserJet cartridges in more than 30countries and territories in Africa, Asia Pacific, Europe andthe Americas, covering 87% of our global market for LaserJetsupplies. Customers can use a range of return methodsincluding our postage-paid labels to return cartridges toPlanet Partners™ recycling centers.

In 2003, 100% of the materials in returned HP LaserJetprint cartridges were recycled or recovered for energy,and more than 3,200 tonnes of plastics were recycledinto material used to make new products such as traysand wire spools.

Inkjet print cartridge recyclingHP started recycling inkjet print cartridges in 1997 and nowprovides this service in more than 30 countries and territoriesin North America, Asia Pacific, Europe and Africa.

In 2003 and early 2004, HP began enclosing pre-paidenvelopes in many replacement inkjet cartridge boxes inthe US and Europe as a new, more convenient means of recycling.

In 2003, less than 1% of residual materials from recycledHP inkjet print cartridges went to landfill. The total numberof print cartridges collected increased by 33% comparedto 2002.

Goal for 2007

Recycling:• Recycle 1 billion pounds of

electronic products and suppliesby 2007

2004 Abridged HP Global Citizenship Report Operations See more details in the full report at http://www.hp.com/go/report10

OperationsHP operations’ environmental programs are centered onreducing our climate change impact, improving energyefficiency and reducing waste volumes. These are the areaswhere our operations have the largest environmental impact.

We made progress in 2003, reducing overall energy useby 6.1%, electricity consumption by 25%1, solid wastevolumes by 12% and perfluorocarbon (PFC) emissions by26%, compared to 2002. We encountered some challengeswith hazardous waste management, where volumesincreased by 13%, due to increased production. We haveimplemented initiatives to reduce this waste volume duringthe coming year.

Our goal is to increase employee awareness, involvementand commitment to HP’s environmental programs. ’Conserveand Preserve’ is our global communication program,introduced in April 2004, to encourage employees toconserve energy and to reduce, reuse and recycle waste.

Environmental health and safety management systemHP’s environmental health and safety management system(EHS MS) is a set of formal, documented processes forcontrolling environmental impacts and ensuring employeesafety at HP facilities.

HP was one of the first global businesses to obtain a single,global ISO 14001 certification for our worldwide manu-facturing operations. In 2003, HP renewed its worldwideISO 14001 certification for another three years. Our non-manufacturing locations implement our EHS MS, but theyare not included in our global ISO 14001 certification.

In 2003, we strengthened our performance measurementsystems and introduced a web-based data collection system.This system is more convenient for site employees and provides in-depth analysis and program management.

2001 2002 2003 Site operations 52,000 49,400 45,100 Purchased electricity 328,000 312,000 296,000 Total 380,000 361,400 341,100

0

100,000

200,000150,000

50,000

300,000250,000

400,000350,000

Greenhouse gas emissions, 2001-2003 [Metric tonnes carbon equivalent, MTCE]

Climate changeHP believes that companies, countries, governments andpeople around the world need to cooperate to addressclimate change. We are working to reduce our greenhousegas (GHG) emissions from operations. In addition, we arestriving to improve the energy efficiency of our products,which helps our customers reduce their GHG emissions.

EnergyHP’s energy management program minimizes electricity andgas use without adversely affecting business operations. Itbuilds energy efficiency into our facilities and seeks to improveuse of lighting, heating, IT, ventilation and cooling systems.We have implemented global standards for temperaturesettings, lighting levels and operation schedules to maintainoptimal conservation levels around the world.

In 2003, HP set a goal to deliver a 50 GWh reduction inannualized electricity use by the end of 2004. We havemade excellent progress, identifying potential reductionsof 52 GWh, and as of April 2004 we have completedprojects delivering over 25 GWh in energy savings.

Projects undertaken include the installation of lightingcontrol systems and upgrades, a recently introducedglobal ’Conserve and Preserve’ program to promoteenergy awareness among employees, and a program toautomatically shut off every employee’s monitor after 20minutes of inactivity.

Electricity useElectricity use during 2003 was reduced by 126 GWhcompared with 2002, equivalent to 5.1%. While overallelectricity use was reduced, consumption per square meterincreased in 2003. This reflects growth in our data centerbusiness and the increased utilization of our propertyfloor space.

Goals for 2004

Climate change:• Develop a 5-10 year

GHG reduction goal by the end of 2004 Progress: Our primary focus hasbeen third-party verification ofour emissions. We will use thisverified baseline to assist us insetting a long-range goal.

Energy:• Reduce electricity consumption by

25% of 2002 total estimatedusage by the end of 2004 Progress: In 2003 and the firsthalf of 2004, we consolidated1.5 million square meters ofunderutilized real estate. Thisreduced estimated electricity con-sumption by 612 GWhcompared to what total estimatedconsumption in 2003 would havebeen without consolidation, a fig-ure equal to 25% of 2002estimated total usage.

• Implement energy efficiencyimprovements that deliver a 50 GWh reduction in annualizedelectricity use by the end of 2004Progress: We have identifiedmore than 52 GWh in potentialreductions. More than 25 GWhin annualized savings have beenimplemented as of April 2004.

1In 2003 and the first half of 2004,HP consolidated 1.5 million squaremeters of underutilized real estate.This reduced estimated electricityconsumption by 612 GWh comparedto what total estimated consumptionin 2003 would have been withoutconsolidation, a figure equal to 25%of 2002 estimated total usage.

Landfill 22,500 20% Incineration 6,290 6% Recycled • Paper 40,400 • Pallets 18,300 • E-Waste 5,310 69% • Packaging 4,990 • Metals 4,070 • Other 4,330 Reused • Pallets 5,090 • Packaging 270 5% • Other 840

Total 112,390

Incineration 4,090 Treated 1,860 Recycled 947 Fuel blending 281 Landfill 102 Total 7,280

Non-hazardous waste disposition, 2003[Tonnes]

11

Over the past year we have increased the amount ofrenewable electricity purchased to approximately 50 GWhworldwide. For example, at 1.6 GWh, HP’s site in Corvallis,Oregon, US is the largest buyer of wind power in anelectrical utility provider’s Pacific Northwest six-state territory.We are evaluating purchasing additional amounts asincreased supplies become more readily available.

PFCsIn the US, HP participates in the PFC Reduction ClimatePartnership. This is a voluntary initiative with the US Environmental Protection Agency (EPA) to reduce emissionsof specified PFCs by 10% from 1995 levels by the end of2010. HP intends to reach this goal by 2005 in all ouroperations worldwide.

PFC emissions doubled between 1995 and 2002 due toincreased production levels and more complex anddemanding product specifications. In 2003, we reversedthe trend, cutting emissions by 26% compared to 2002, andwe believe we are on track to achieve our global target.

WasteHP is committed to reducing the quantity of waste gen-erated by its operations. Where possible, waste iseliminated at the source. Where waste elimination isnot feasible, we look to effectively divert potential wastesto beneficial uses. Responsible disposal is a last resort whenother management options are not reasonably available.

Hazardous wasteClassification of hazardous waste differs around theworld. HP data is based on the strictest classification andtherefore includes some wastes that are not consideredhazardous in the country in which they occur. In 2003,total hazardous waste increased by 13% compared with2002. This is due to production increases in our inkmanufacturing. We have implemented several initiativesto reduce this waste during the coming year.

2004 Abridged HP Global Citizenship Report Operations See more details in the full report at http://www.hp.com/go/report

56%26%

13%

4% 1%1%

Hazardous waste disposition, 2003 [Tonnes]

For example, HP has installed several systems to recycle thewater in dilute ink waste and we expect to see a significantreduction of this waste in 2004.

Non-hazardous wasteIn 2003, non-hazardous waste volumes decreased by12% compared with 2002.

We are encouraged that our renewed focus on recyclingprograms has started to show benefits. By focusing onnew recycling markets and better segregation of materialsat our largest sites, the landfill diversion rate has improvedfrom 73% in 2002 to 80% in 2003, matching our targetof 80% by the end of 2004.

Many individual sites have worked successfully to exceedthe diversion target. Of the 75 sites in our reportingsystem, 34 already exceed an 80% landfill diversion rate.The majority of sites not reporting waste data are offices.

RemediationHistorically, HP has had accidental releases of chemicalsto soil and groundwater at some of our sites. In mostcases, these chemicals are no longer used by HP. Mostreleases occurred during the 1970s or early 1980s.While HP no longer owns many of these sites, we continueto maintain responsibility for the chemical releases. Inaddition, some of our waste management contractorshave had accidental chemical releases at their sites. In2003, HP had 33 sites under management for soil andgroundwater contamination.

Global Greenhouse Gas Register

In December 2003, the WorldEconomic Forum launched theGlobal Greenhouse Gas (GHG)Register for companies to reporttheir GHG emissions and reductiontargets. HP was one of the firsteight companies to commit to theRegister, which has signatoriesaccounting for nearly 5% of globalGHG emissions.

Purchased electricity is by far thebiggest source of operational GHGemissions for HP, at 87%. Siteemissions, including those fromgas consumption and PFC use,account for 13%. Improvements tothe scope and accuracy of ourdata collection system have led usto restate our GHG baseline. As apart of our participation in theWEF GHG Register, we are in theprocess of having our emissionsindependently verified.

Goal for 2004

Waste:• Divert 80% of solid (non-

hazardous) waste from landfillglobally by the end of 2004Progress: Achieved 80% solid waste landfill diversion rate in 2003.

Goal for 2005

PFCs:• Reduce emissions of specified

PFCs by 10% from 1995 levels Progress: This year we havecut PFC emissions by 26% com-pared to 2002, on track toachieve our target.

12

responsible manner. Our approach expands on long-standing supplier requirements stated in our GeneralSpecification for Environment (GSE).

HP’s Supplier Code of Conduct (see box, opposite) coversenvironmental, employment, labor, and occupationalhealth and safety practices. When renegotiating or estab-lishing supplier contracts, we ask all suppliers to sign anagreement stating that they understand HP’s expectationsand that they agree to work with us towards conformitywith our Supplier Code of Conduct.

Performance In 2003, we contacted our 50 major suppliers torequest confirmation that they accept our Code. Ourtop suppliers completed self-assessments covering morethan 175 individual sites around the world. In addition,we contacted 40 high priority suppliers and receivedcompleted documentation from 27. An additional 142suppliers completed documentation.

We initiated an audit process and have completed 25

audits in Mexico, Thailand, Malaysia and China to date.A range of issues was identified during the assessments,showing a lack of management systems and processes to:

• Manage overtime

• Avoid unlawful or inappropriate use of penalties forworker infractions

• Provide appropriate avenues for expression of workerconcerns

• Guide implementation of environmental practices such asdisposal of solid and industrial waste, and wastewater

• Ensure worker training is current and thorough; forexample, for fire protection and safety

• Track implementation of labor, health and safety regulations

• Cascade labor, health, safety and environmentalrequirements to suppliers

2004 Abridged HP Global Citizenship Report Supply chain See more details in the full report at http://www.hp.com/go/report

Supply chainHP spent $52 billion in 2003 on procurement of productmaterials, components and services from thousands ofsuppliers worldwide, making our supply chain the largestin the IT industry. Only 48 companies worldwide hadrevenues in excess of HP’s supply chain expenditures in2003. Consequently, a significant amount of our extendedenvironmental and social impacts occur within the supplychain — outside of HP’s walls and direct control.

Extending our standards to our supply chain is a highpriority for HP but a complex task. The sheer number andgeographic distribution of suppliers makes it a significantchallenge to validate every supplier’s global citizenshipperformance. Many suppliers are large multinationals withextensive supply chains of their own, so impacts extendwell beyond our direct suppliers to the second and thirdtiers. There are few agreed-upon standards for measuringenvironmental and social impacts, so collecting consistentand comparable information across companies is difficult.Legislation surrounding environmental and social issuesvaries worldwide and is constantly evolving. In many casesHP policy is more demanding than local law.

To address these challenges, HP established its Supply ChainSocial and Environmental Responsibility (SER) Policy in 2002.Our strategy is to focus our efforts where they yield thegreatest return. Therefore, our initial emphasis is on the 50suppliers that account for more than 70% of procurementexpenditures, and another 100 high priority suppliers.

HP approachHP’s Supply Chain Social and Environmental (SER) Policy,established in 2002, commits us to work with suppliers toensure they operate in a socially and environmentally

Performance update – to end of first quarter, fiscal year 2004

Top High Other Total % ofsuppliers priority suppliers expen-

suppliers ditures

Engaged 50 40 197 287 70+Documentation 50 1 27 3 142 219 70+completed ISO 14001 certified 42 22 – 64 –Audited 13 2 – – – –

1 Accounting for more than 175 sites (some companies have multiple sites).2 15 sites were audited.3 Accounting for 56 sites.

Stakeholder perspective

Katherine Astill, Private Sector Policy Analyst,Catholic Agency for OverseasDevelopment (CAFOD)

How is HP doing?In the field of supply chain labourstandards, HP has consistentlydemonstrated high level commitmentbacked up by systematic action.The company has been a leader inthis respect, at a time when theelectronics sector as a whole hasshown little interest in the workingconditions of those who make itsproducts. HP is also commendablyopen to engagement with theexperience in this field of CAFODand our partners.

How would you like to see HPimprove in this area?As the awareness of all electronicscompanies to the issues of supplychain labour standards increases,I would like to see HP remaining atthe forefront of best practice. Inparticular, I would like to see thecompany take a new look at itscode of conduct and to align itmore closely to the internationalstandards set down by the ILO:particularly in relation to freedomof association and the right to collective bargaining.

13

HP is among the first companies in our industry to set theseexpectations for our suppliers. ISIS Asset Managementrecently rated HP a ’race leader’ for both labor andenvironmental management practices in the supply chain.

Human rightsHP’s Human Rights and Labor Policy commits us to supportand respect the protection of human rights within oursphere of influence, including employees and suppliers.Our Supplier Code of Conduct reflects this commitment. Itspecifically requires our suppliers to treat employees fairlyand in accordance with national laws. Suppliers must notuse forced, bonded, involuntary prison or child labor.

HP is a participant in the UN Global Compact (UNGC), avoluntary initiative for businesses established by Kofi Annan,Secretary General of the UN. Participating companiesagree to support nine principles in the areas of humanrights, labor and the environment. Basic human and laborrights identified by the Compact include: safe and healthyworking conditions; nondiscrimination at work; no forcedor child labor; and freedom of association.

We are working to develop a common understanding ofhuman rights issues throughout HP by educatingmanagers, especially those responsible for operations orsupply chains in developing countries.

Supplier diversityHP has a policy and program to ensure that we offer US-based small, minority- and women-owned businesses equalopportunities to become HP suppliers, partners and resellers.HP has maintained a Corporate Multicultural ProcurementProgram Office for more than 30 years, a practice that weare expanding beyond the US into other markets.

Purchases from minority- and women-owned businessescomprised 21.9% of HP’s total procurement in the USduring 2003.

HP has expanded its supplier diversity program beyondthe US. For example, we are a member of the CanadianAboriginal and Minority Supplier Council and theEuropean Supplier Diversity Project.

Supplier Code of ConductOur Code of Conduct sets forth the minimumrequirements that all suppliers must meet in doingbusiness with HP. Key elements of the code includethe following:

EnvironmentSuppliers must have environmental policies that coverenergy efficiency, hazardous materials, information andlabeling, manufacturing, packaging and productrecycling and reuse.

The code incorporates our General Specification forEnvironment (GSE), which specifies restrictions onmaterials that may be used in our products.

Health and safetySuppliers must meet health and safety requirementsthat include evaluating and controlling exposure tochemical, biological and physical risks, machine safe-guards, occupational injury reporting, training andworkplace ergonomics.

Human rights and labor practicesSuppliers must treat employees fairly and in accordancewith local laws. They must not use forced, bonded,involuntary prison or child labor. They must provide wagesand benefits that meet or exceed legal requirementsand respect the rights of workers to associate freely, inaccordance with local laws and established practice.

Purchasing results 1, 2

Category 20013 20023 2003 20033

[Million $US] results results goal results

Total small businesses $1,832 $1,672 $1,600 $2,108 Small minority-owned $548 $480 $400 $601businessesSmall women-owned $141 $126 $140 $104businesses

Total minority-owned firms $564 $544 N/A $688

Total women-owned firms $148 $161 N/A $254

1Data does not include purchases by former Compaq sites. Data for thecombined company will be reported beginning in US Government Year 2004,which runs from October 1, 2003 - September 30, 2004. All data relates todirect (for products) and indirect (for operations) procurement.2All figures are for US purchases from US-based businesses.3Figures are for October 1 of the previous year to September 30 of the year indicated.

Goals for 2004

Supply chain:• Complete supplier audits and

develop improvement plans formore than 30 sites

• Complete assessments with 100 high priority suppliers

• Engage with global NGOs,local nonprofit organizationsand suppliers to review andimprove our Code of Conductand assessment and auditapproaches

• Train 25% of commodity man-agers in Supply Chain SERmanagement processes

• Hold quarterly SER review meet-ings with six top suppliers

Supplier diversity:• Award $1,600 million of US pur-

chases to US-based smallbusinesses, $400 million of USpurchases to US-based smallminority-owned businesses, and$140 million of US purchases toUS-based small women-ownedbusinesses

Goals for 2005

Supply chain:• Complete assessments with 250

high priority suppliers

• Develop a supplier training pro-gram in cooperation with NGOsin China and Mexico

• Add Supplier Code of Conductto all product materials suppliercontracts

Supplier diversity:• Provide first supplier diversity

expenditure report for the United Kingdom and Canada

Goals for 2006

Supply chain:• Complete assessments with 500

high priority suppliers

• Collaborate with industry andsuppliers to establish an industrystandard supplier code of conduct

2004 Abridged HP Global Citizenship Report Supply chain See more details in the full report at http://www.hp.com/go/report

14

Privacy Protecting our employees’ and our customers’ privacy is afundamental global citizenship goal. HP respects customerand employee privacy and is committed to high standardsin data protection.

HP’s Global Master Privacy Policy governs the collection,storage, sharing, transport and use of personal information.It commits us to protecting personal data and allowingcustomers access to review or correct their information. Ourglobal employee data privacy policy provides further detailedguidance and commits us to protect the personal informationwe hold on employees, former employees and job applicants.

All suppliers and third-party contractors processing orhandling HP data are contractually required to complywith our privacy policy.

HP self-certifies to the Safe Harbor privacy principles, aninternational data protection agreement between the USand EU. This ensures our policy is consistent with the EUData Protection Directive. We are a member of the BetterBusiness Bureau’s BBBOnLine Privacy Seal Program.

ImplementationThe HP Global Privacy Board coordinates integrated privacyprograms across the company. The Board, consisting ofthe Chief Privacy Officer and Privacy Officers for customerand employee data, focuses on policy decisions, trainingand compliance assessments.

2004 Abridged HP Global Citizenship Report Privacy See more details in the full report at http://www.hp.com/go/report

Design for Privacy

In 2003, HP introduced Designfor Privacy, a global initiative toincorporate privacy requirementsat the product design and devel-opment stage.

A Design for Privacy team identifiestechnologies and products thatrequire privacy design assessment.

For example, software programsfor HP printers that enable faultsto be diagnosed remotely or thatallow users to track their suppliesusage were evaluated for privacyissues throughout developmentbefore release to the market.

Goals for 2004

Privacy:• All employees to complete online

Standards of Excellence DataPrivacy training

• HP Internal Audit tests privacycompliance at two business unitsper quarter

• Complete impact analysis ofemerging privacy regulations inArgentina, Australia, Brazil, India,Japan, Mexico and South Korea

HP’s privacy compliance programs specify that employeesand contractors comply with our policy and laws governingdata protection. Methods to enable compliance include:

• E-mail addresses for customers and employees to submitquestions and concerns on data privacy

• Notification of data protection authorities in the EU aboutcomputer programs containing employee personal data

• Compulsory training for all employees who have accessto confidential and sensitive employee or customer data.This includes a privacy module in HP’s Standards ofExcellence training

Four company-wide tools facilitate implementation of HP’sprivacy policy:

Privacy Impact Assessments (PIAs). PIAs help employeesimplementing new sales and marketing programs assesshow to meet legal and HP requirements.

Interactive Rulebook. A web-based tool that lets employeeseasily search and access privacy rules. Topics includeemail marketing, market research and marketing to children.

IT Application Development Questionnaire. This set of toolsis used by HP system developers to assess privacy compli-ance for all IT systems used in handling employee data.The results are kept in a compliance tracking database.

Privacy Audits. HP auditors incorporate privacy reviewsinto the internal audit process worldwide.

In 2003, HP commissioned a study to benchmark ourperformance on data protection against 20 leadingcompanies. This study found that HP performed wellregarding privacy policies, data security and internalcompliance mechanisms. The study identified areas forfuture improvement, including third-party compliance,employee training and product and service design. Wewill focus on these issues during 2004.

HP has reassessed the criteria used to determine whichemployees are given access to employee data and intro-duced new requirements on job function, business needand location. This reduced the number of employeesresponsible for handling data by approximately 75%. Inaddition, 16,000 employees with responsibility forhandling customer or employee data received privacytraining in 2003.

HP ensures international compliance with our GlobalMaster Privacy Policy, for example in India where there isno comprehensive national privacy law. To enable globalconsistency, HP intra-company agreements are beingamended to include our standard data protection clauses.HP engages with groups such as the International Associ-ation of Privacy Professionals (IAPP), the Ponemon Instituteand the Center for Democracy and Technology (CDT) todiscuss privacy issues and help set privacy standards andbest practices. We are a contributor to the development ofthe Asia Pacific Economic Forum (APEC) Privacy Principles.

152004 Abridged HP Global Citizenship Report Employees See more details in the full report at http://www.hp.com/go/report

EmployeesHP employs approximately 142,000 people in 67 countries.Our people are among our most important business assets.Their talents, ideas and enthusiasm are crucial to our success.Our goal is for HP to be considered among the bestplaces to work. We are embedding this objective in thedesign and implementation of all our employee programsand communications.

HP provides employment opportunities based onperformance, and creates with employees a safe, excitingand inclusive work environment that values diversity andrecognizes individual contributions.

Employment policiesHP’s employment policies apply globally. When they differfrom local law, HP abides by the more demanding standard.Our policies include amongst others the Best Work EnvironmentPolicy and our Open Door Policy ensuring that everyone’svoice is heard, issues are promptly raised and resolved, andcommunication flows across all levels of the company.

Work-life programsPressure to perform can lead to long work hours. Our work-lifeprograms help employees balance their commitments athome and work. Where feasible in relation to businessneeds and local law, HP offers flexible work arrangementssuch as part-time work, job sharing and teleworking.

HP provides time off for new parents around the globe.These programs vary; they comply with and sometimesexceed the requirements of national laws.

Employee training programs Training enables employees to reach their full potential anddevelop their careers. Regular performance reviews ensurethat development plans are created and implemented. HPinvested $258.9 million on in-house training during 2003,equivalent to $1,823 for every employee. 75% of employeesparticipated in online training sessions in 2003.

DiversityHP believes that a diverse workforce reflecting our manydifferent markets provides competitive advantage andhelps us acquire new business. HP’s Diversity and InclusionLeadership Committee integrates diversity into the fabric ofHP. It oversees company-wide diversity, inclusion and work-life programs. HP is establishing country, regional andcompany-wide goals to help increase diversity.

HP’s diversity policies apply globally. When they differ fromlocal law, HP abides by the more demanding standard. Ourpolicies include: Best Work Environment, Equal Opportunity andNondiscrimination, and Harassment-free Work Environment.

We encourage employees to report any suspected casesof discrimination or harassment, either by using ourOpen Door Policy, by contacting our Employee Relationsorganization, or through use of HP’s confidential andanonymous global phone line, GuideLine.

Diversity programsWe have various programs to promote diversity. Theseinclude year-long leadership programs, ’leveraging diversity’development programs, online diversity training, networkgroups, benefits for domestic partners, and employmentopportunities for people with disabilities.

Health, safety and wellnessHP is committed to conducting its business in a manner thatdelivers leading Environmental, Health and Safety (EHS)performance. Our goal is to create practices and workenvironments that allow employees to work injury-free.

HP’s global health and wellness strategy is designed to opti-mize health, quality of life and productivity for our employeesand their families. The strategy is implemented throughinitiatives to raise awareness and encourage employees tomanage their health and adopt a healthy lifestyle.

HP’s global injury trends show a continued decrease in lostworkday case rate in 2003, with a 25% reductioncompared to 2002, thus achieving our goal for 2003. HPdid not have any work-related fatalities in 2003.

50,000

0

10,000

20,000

40,000

30,000

White Asian Hispanic Black Native Unknown American Female 15,098 2,339 1,226 1,385 91 235 Male 33,939 4,266 2,323 1,922 150 734 Total 49,037 6,605 3,549 3,307 241 969

69.2%30.8%

64.6%35.4%

65.5%34.5%

58.1%41.9%

62.2%37.8% 24.3%

75.7%

US workforce ethnic diversity1, 2003 [Employees]

150,000

0

60,000

30,000

90,000

120,000

Americas Europe/ Asia Pacific Worldwide Middle East/Africa Female 23,137 11,568 7,465 42,170 Male 49,941 30,197 18,406 98,544 Total 73,078 41,765 25,871 140,714

70.0%

71.1%72.3%

68.3%

30.0%

28.9%27.7%

31.7%

Gender diversity by region2, 2003 [Employees]

1Includes employees on leave or paid leave.2Includes employees on leave orpaid leave; excludes certainsubsidiary employees for which data is not available.

Awards and recognition

Belgium. Randstad HR Awards,Best Place to Work, HP rated top ITcompany.

China. Peking University and theEconomic Observer, Most Respect-ed Companies in China.

Czech Republic. Prague ING Bank,Most Admired, HP tops Czech Top100 list for second consecutive year.

India. Data Quest-IDC BestEmployer Survey, voted bestemployer in India’s IT industry.

South Korea. Joblink survey, MostFavored Foreign Firm, 2003.

US. Association of WashingtonBusiness, Better Workplace Awardfor HP’s Vancouver site.

US. ComputerWorld, 100 BestPlaces to Work in IT.

US. Fortune Magazine, 50 MostDesirable MBA Employers.

Goals for 2004

Employees:• Achieve a year-to-year reduction

in global lost workday rate

• Achieve a year-to-year reductionin average number of lostworkdays

• Increase participation in Work-Well to 35% of HP employeesby the end of 2004

16

Customer engagementHP serves a wide range of customers by providing theinformation technology (IT) products and services theyneed, whether at work, at home or on the move. Everythingwe do as a company, including our global citizenship efforts,must focus on providing the best customer experience.

Customer experience managementTo help us meet our customer loyalty objectives, we haveestablished and implemented a total customer experienceand quality (TCE&Q) leadership framework. The TCE&Qframework includes Customer Experience Standards,developed in 2003/04, that govern how employeesshould interact with customers. Examples include:

• “We learn and remember customer needs andpreferences. We are responsible stewards of their information and always respect their privacy.”

• “We are environmentally and socially responsible, andare creative in helping our customers achieve their envi-ronmental and citizenship goals through technology.”

Customer inquiriesHP monitors and responds to customer inquiries, commentsand complaints to ensure we provide the best possibleservice and information. We receive several hundredcustomer inquiries each month on global citizenship issuessuch as product recycling, environmental specifications,packaging and human rights.

Our Environmental Business Management Team in Europe,Middle East and Africa works with customers to addressquestions on the environmental performance of HP productsand to ensure that HP fully understands customer needsand expectations.

Goals for 2005

Accessibility:• 95% of hp.com pages comply

with W3C Web ContentAccessibility Guidelines andsupport Section 508 Standards

• Provide VPAT documentationat product launch for 100%of applicable products

AccessibilityHP is committed to developing products, services andinformation that are accessible to everyone, includingpeople with disabilities. The HP Accessibility ProgramOffice coordinates accessibility initiatives and facilitatesimplementation of our Accessibility Policy. This policy wasupdated in 2003 and commits us to:

• Develop and implement accessibility guidelines forproducts and services

• Raise awareness of accessibility issues within our company

• Document accessibility features and make informationabout our products and services publicly available in anaccessible form

• Support and contribute to industry accessibilitystandards and guidelines

• Establish relationships with leading suppliers of’assistive technology,’ that is, products that help peoplewith disabilities use IT

• Involve people with disabilities in developing accessibilityrequirements, and in designing and testing productsand services

• Support assistive technology research

Product accessibilityHP’s goal is to integrate accessibility into our corporateproduct development processes to improve the accessibilityof our products to people with disabilities. We documentthe accessibility features for HP computer and imaging andprinting products that we sell to the US public sector. Thisinformation is publicly available through an online database,and helps US public sector customers comply with therequirements of Section 508 of the US Rehabilitation Act.

Information accessibilityOur website is designed so that all users can easilyaccess information on HP and our products. It complieswith the Worldwide Web Consortium (W3C) Guidelinesand supports Section 508 web standards.

The US National Federation for the Blind certified HP as ane-business leader for web accessibility in May 2003. ItsNonvisual Accessibility (NVA) Web Application Certificationrecognizes websites that can be used equally well by theblind as by the sighted.

Europe: Sponsor for 2003 European Year of People with DisabilitiesHP sponsored the European Year of People with Disabilities(EYPD) and ran a number of awareness initiatives onaccessibility issues and the contribution that people withdisabilities bring to HP. A specially designed EYPD bustoured 15 European countries, demonstrating HP productswith accessibility features such as the Tablet PC. In 2004,we will continue to host more Disability Mentoring Days,focus on designing accessible products and services, andensure inclusion of disabled people in HP’s workforce.

2004 Abridged HP Global Citizenship Report Customer engagement See more details in the full report at http://www.hp.com/go/report

17

Public engagementPublic policyHP’s global Government and Public Affairs team buildsrelationships with key officials, influences legislation andregulation, and advances HP’s objectives in governmentand public affairs worldwide. We work in compliance withrelevant laws and HP’s Standards of Business Conduct.

We are members of national and regional trade and industryassociations in virtually every country where we have a signif-icant presence. HP’s position on a public policy issue is oftenexpressed through these associations. Some of the majorassociations we belong to include: the American Chamber ofCommerce in China, the Business Software Alliance, CII(Confederation of Indian Industry), EICTA (European Informa-tion, Communications and Consumer Electronics TechnologyIndustry Association), GBDe (Global Business Dialogue onelectronic commerce), and the US Business Roundtable.

Issues related to global citizenship include access to markets,e-commerce and digital rights management, electronics recy-cling, and growth and innovation. Other public policy issuesHP addresses cover accessibility, e-inclusion, educationreform, employment nondiscrimination and affirmativeaction, and internet privacy. A summary of HP’s policy posi-tions in each of these areas is available in the full report.

In the US, political giving is one way we support politicalspeech that advances HP’s points of view on public policy.Most states allow corporate contributions to state and localcandidates. HP makes limited political contributions to can-didates and ballot measure campaigns, consistent with ourpolicy agenda. In 2003, we contributed $237,700. HP’spolicy is not to make political contributions outside the US.

US law prohibits corporate donations to federal politicalcandidates. However, our eligible employees can makeindividual donations to the HP Political Action Committee

2004 Abridged HP Global Citizenship Report Public engagement See more details in the full report at http://www.hp.com/go/report

(HP PAC), which contributes on a bipartisan basis to thecampaigns of congressional candidates who share ourpublic policy views. Contributions to fund the HP PAC, aseparate legal entity, are voluntary. In 2003, the HP PACcontributed $63,100.

Stakeholder engagementAs a global citizen, HP interacts with a wide range ofcommunities and stakeholders that affect, and are affectedby, our products and operations. Regular dialogue ismutually beneficial. It enables stakeholders to influencecorporate policy and helps us interpret social expectations,improve our reputation, better understand our marketsand develop our overall global citizenship approach.

Our main stakeholder groups and how we engage

Group How we engage

Communities • e-inclusion programs• Employee volunteering• Philanthropy• Tours of facilities

Customers • Surveys/customer experience management• Commercial contacts• Request for quote expectations/questions

Employees • @hp web portal• Employee surveys• Networking groups• Open Door Policy• Briefings, meetings and appraisals

Investors • Statutory and other disclosures and reporting• Annual general meeting• Regular meetings and briefings

Legislators/ • Public engagement programregulators • Regular meetings and briefings

• Membership in trade associations and business organizations

Non- • Meetings and conferencesgovernmental • Partnershipsorganizations • Direct engagement on topics of interest

Suppliers • Supply Chain Social and EnvironmentalResponsibility Program

• Supplier Management Process

Feedback on HP’s 2003 Global Citizenship Report In 2003, HP engaged SustainAbility, a consultancy basedin the UK, to gather and analyze feedback on HP’s 2003Global Citizenship Report from a diverse range of exter-nal stakeholders. The goal was to help ensure that futurereports provide high value to readers.

In all, the analysis team interviewed 28 stakeholders fromfive continents. The interviewees included customers, non-governmental organizations, multilateral organizations,investors and academics. To encourage frank and honestfeedback, interviewees were offered anonymity; mostasked that any direct quotes passed on to HP be done sowithout attribution (see quotes at left).

“I get a sense that HP is a company that is trying its very best to do the right thing.”

“I liked that the management systems, policies, core values andstakeholders really came out clearly;it showed a systems approach.”

“It is good that they consider theside issues [such as human rightsand e-inclusion] for which theimpact is not yet understood.”

“In the CEO statement one of thepoints that really struck me wasgoing beyond doing no harm, taking on an obligation ‘to use ourexperience to collaborate.’ That isa huge promise, but I didn’t see asmuch information as I wouldexpect on the results of that commitment.”

“A little more negative reportingwould have been helpful; it looks more like a marketing toolsometimes.”

An invitation to readersHP takes feedback fromstakeholders very seriously.We are grateful to receiveit, regardless of whether itis positive or negative.We invite all readers tooffer feedback on thisreport and on HP’s globalcitizenship activities.Please send comments tohp.globalcitizenship@hp.com.

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Social investmentHP makes social investments in three primary programareas: e-inclusion, education, and communityengagement and employee giving.

e-inclusion’e-inclusion’ is HP’s vision of a future in which all peoplehave access to the social and economic opportunities ofthe 21st century, and can use technology as a means tolearn, work and thrive. Our efforts in e-inclusion seek tocreate new market opportunities, for ourselves and for thecommunities with which we engage. We do this by forgingnew kinds of partnerships with private and public entitiesto close the gap between technology-empowered andtechnology-excluded communities. We currently havemore than 25 projects underway in approximately 20countries on five continents.

HP has three types of initiatives through which we engagewith the broader development community, governments andlocal communities to increase access to relevant technologyand solutions: deep engagements, which are testbeds forinventing new solutions and partnership models; communityinformation access and capacity-building initiatives; andglobal development initiatives.

Deep engagements: HP applies a myriad of business tech-niques to understand the critical issues within communitiespreviously excluded from the benefits of technology. Theseengagements last at least three years, allowing HP to listen,experiment and learn. HP’s US Digital Villages and i-communities in India, South Africa and the US areexamples of our deep engagement programs.

US Digital Villages were our first major e-inclusion projectsand were designed to help underserved communities inthe US to use technology for learning, working and playing,and to make links within the community and beyond. Ineach case, the communities worked with HP to developand implement a Community Technology Partnership Plan

with a shared vision and strategy to meet those needs,including a plan for sustainability of the program at the endof our three-year funding. There are currently three projects:the Baltimore, Maryland Digital Village, the East PaloAlto, California Digital Village, and the Southern CaliforniaTribal Digital Village (see case study).

i-communities are development initiatives located inemerging markets and executed in partnership with localgovernment, non-governmental and community organiza-tions. Solutions focus on increasing literacy, raising incomelevels through entrepreneurship and job creation, andproviding access to government, healthcare and educationservices. As targeted communities benefit and grow, HPlearns how to compete in these markets. Based upon thisknowledge, HP introduced a multi-user desktop solutionthat enables educators to maximize limited budgets whileintegrating technology into the classroom. We currentlyhave i-communities in India, South Africa, and Texas.

Community information access and capacity-building: HPbrings basic access to technology and community devel-opment programs to many communities around the globe.Entrepreneurship and education are our priorities forthese projects and leadership development and individualskills building are integral components.

More than 7,600 Native Americans live on reservations inisolated, rural communities in San Diego County, California,US. Nearly 30% of these tribal residents live in poverty,and 50% are unemployed.

The Southern California Tribal Digital Village, launchedin 2001, led to the establishment of a wireless wide areanetwork (WAN) linking these isolated communities. Cultur-al and education-based websites were created to allowtribal members to preserve their rich history and traditionsand connect to surrounding school districts, healthagencies and academic institutions.

In October 2003, the tribes reached an economic devel-opment milestone by opening a for-profit printingbusiness, Hi-Rez Digital Solutions. The business relies onthe advanced HP Indigo 3000 series digital printing pressto bypass more expensive and time-consuming offset print-ing processes.

“With no basic economy, many of the young people haveto leave the tribe to work. Now they can stay,” said JackWard, Executive Director of the Tribal Digital Village.“With technology support, the tribes can become a truesovereign nation.”

Hi-Rez Digital Solutions can be reached athttp://www.hirezdigital.com and the Southern CaliforniaTribal Digital Village can be visited at http://www.sctdv.net.

Case study: Southern California Tribal Digital Village

2004 Abridged HP Global Citizenship Report Social investment See more details in the full report at http://www.hp.com/go/report

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Non-US Digital Villages and Digital Community Centersare philanthropic initiatives in which HP invests ICT productsand skills in underserved communities.

Magic Johnson/HP Inventor Centers are the result of a part-nership between HP and the Magic Johnson Foundation tooffer training, skills development and access to online services.The centers are based at nonprofit organizations and housingdevelopments in urban communities across the US.

HP’s Microenterprise Development Program supports non-profit microenterprise development agencies in low-incomeUS communities to stimulate economic growth. Theseagencies provide training, technical assistance and smallloans to microenterprises.

The Digital Garage in São Paulo, Brazil, merges technologyand music to help underprivileged young people developcreativity, tolerance, work skills and a sense of responsibilitythrough technology.

Global development initiatives: These programs are theresult of our engagement with the global developmentcommunity and the United Nations ICT Task Force in seekingto use technology to help improve the effectiveness andimpact of economic development efforts globally. Theseprojects have focused on facilitating entrepreneurship,small and medium sized enterprise development and socialentrepreneurship through the application of technology,technical assistance and education.

Our global development initiatives span variousmicrofinance, Enablis, and GlobalGiving partnerships.

Education Many of HP’s educational grants are targeted at institutionsserving low-income and ethnically diverse students in theUS. We donate equipment, technical support and servicesto schools and universities worldwide. Overall in 2003,HP provided more than $33 million to support educationalinstitutions through a wide range of HP programs. HP

1HP equipment granted by HP Phil-anthropy and Education is offered atInternet List Price (ILP) value at thetime the grant is processed. ILP is theprice that an end customer wouldpay if purchasing through the HPDirect sales channel on the internet.While product prices may vary ondifferent HP websites, in retail storesand in the reseller channel depend-ing on specials, targeted promotionsor discounts, HP granted equipmentis not subject to these promotionsand/or discounts and will alwaysreflect the ILP value at the time thegrant is processed.

25%

21%

54%67%

20%

6%

3%4%

65%

35%

Education 33.7 e-inclusion 15.6 Community 13.1 Total 62.4

US 41.6 Europe/Middle East/ Africa 12.6 Asia Pacific 3.9 Canada 1.6 Latin America 2.7 Total 62.4

Cash 21.9 Products and services1 40.5 Total 62.4

Worldwide giving by category, 2003 Worldwide giving by type, 2003Worldwide giving by region, 2003

[Million $US] [Million $US][Million $US]

Education highlights in 2003

Canada. Schulich School of Business. HP committed $2 millionover several years to assist theschool in establishing the HP Chairof Corporate Social Responsibility.HP chose Schulich because it is aleader in integrating programs andcoursework focused on socialresponsibility with its strong curricu-lum in business fundamentals.

China. ’e-learning’ Model SchoolProject. HP and China’s Ministry ofEducation have partnered to bringtechnology-based educationresources, distance learning andimproved teacher training to mid-dle schools in Beijing, Guandong,Sichuan, Shanxi, Hubei, Xinjiang,Hunan and Jiangxi.

Eastern Europe. Grid ComputingAccess. HP partnered with UNESCOto provide grid computing accessto Eastern European universities.The joint two-year project improvesscientific research in Croatia,Bosnia Herzegovina and Serbia-Montenegro.

Global. Education with MobileTechnology. HP’s Technology forTeaching program accelerates theadoption of mobile technologies inhigher-education learning environ-ments in ways that improve studentachievement. In 2003, we supported20 universities in the US, Europe,Latin America, Mexico and AsiaPacific with grants that includedcomputer equipment and fundingfor student research projects.

invested in partnerships with national or large regionalnonprofit organizations to bring additional resources andcompetencies, and to increase the overall success andsustainability of the organization’s programs.

Community engagement andemployee givingOur US-wide Employee Giving Programs match employeegiving with company funds to qualified US charities andschools. HP matches employee charitable gifts to collegesand universities up to $20,000 in cash per employee peryear, and up to $1,000 per employee per year to qualifiedcharities and schools. The company promotes employeetechnology donations by matching product gifts three toone. We have similar programs in Canada whereemployees gave $220,000 plus dollar-for-dollar HPmatching to the United Way, and in Singapore whereemployees have contributed over $120,000 (plus $100,000HP match) to the National Council for Social Services.

GlobalGiving works to increase donations from individuals,companies and multilateral aid agencies to social entre-preneurs and community projects in developing countries.

Employee volunteeringHP supports employees’ volunteering activities in K-12 schoolsfor up to four hours per month of paid company time in theUS. Volunteer programs operate throughout HP, althoughwe do not formally collect data on the participation level.

HP actively encourages volunteerism in the communitythrough structured programs such as the annual ‘VolunteerDays’, business and function team projects, and other HP-sponsored activities. Volunteer Days offers employeesstructured, site-based community volunteer activities. In theUS in 2003, these activities stretched over eight weeksand involved more than 4,000 HP employees. In the UK,HP makes grants of up to £250 to charities supported byHP employees through the Money Match for Charity Scheme.

2004 Abridged HP Global Citizenship Report Social investment See more details in the full report at http://www.hp.com/go/report

1940

1950

1960

1970

1980

1990

1939 HP founded

1940 HP records its first charitabledonation: $5 to local charities

1955 Matching gift program started for cash donationsby employees to four-yearcolleges and universities.HP matched employeeamount up to $2,000 peryear, per school

1958 Citizenship objective established by WilliamHewlett and David Packard

1959 Bill Hewlett and local community business andlabor leaders create the SantaClara County United Fund

1961 HP Core Values established

1976 HP starts company-sponsored vanpool program

1979 Launch of HP Standards ofBusiness Conduct

The Hewlett-Packard CompanyFoundation is founded

1987 Product recycling launchedinternally

1991 HP Planet Partners™ LaserJetprint cartridge return andrecycling program started

First environmental reportpublished

1992 Launch of Design for Environ-ment program

1993 Domestic partner benefitsintroduced

1994 First packaging managementsystem created

Telecommuting policies are formalized, making HP oneof the first companies toencourage telecommutingaround the world

1995 Employee Privacy Policyupdated

1997 HP Planet Partners™ inkjetprint cartridge return andrecycling program launched

1998 First online privacy statementpublished

1999 Accessibility Program Officecreated

Better Business BureauOnLine’s Privacy SealProgram initiated, with HPas a founding sponsor

2000 Accessibility Policy published

2001 HP self-certified to EU SafeHarbor Privacy Principles

Moving forwardGlobal citizenship is a journey, not a destination. The world’s economic, social and environmental problems are so greatthat it is certain challenges will remain for the foreseeable future. We are focused on three challenges for the coming 3-5years: addressing electronic waste, raising standards in HP’s global supply chain and increasing access to informationtechnology. These are critical issues facing our industry, and we are committed to making a positive contribution.

Focus Moving forward

Addressing electronicwaste through intelligentproduct design, materials innovation and leading-edgerecycling systems

HP addresses electronic waste in an integratedfashion, recognizing that the issue has dimensionsacross the entire product lifecycle. The following goalsmap HP’s course: • Eliminate lead, mercury, cadmium and hexavalent

chromium in 50% of electronic products sold world-wide by 2005, and 100% by 2006 as defined bythe EU’s RoHS Directive

• Recycle 1 billion pounds of electronic products andsupplies by 2007

Raising standards in HP’sglobal supply chain, anddeveloping systems tomeasure and assess suppli-er performance

HP’s commitment is to expand our Supply Chain Socialand Environmental Responsibility (SER) programfurther throughout our supply chain. Our objective is to build continuous learning and improvement intoglobal manufacturing facilities throughout our industry. Goals include: • Complete supplier audits and develop improvement

plans for more than 30 sites in 2004

• Complete assessments with 100 high priority suppliersin 2004, 250 in 2005 and 500 in 2006

• Add Supplier Code of Conduct to all product materialssupplier contracts by 2005

• Collaborate with industry and suppliers to establish anindustry standard supplier code of conduct by 2006

Increasing access toinformation technology

HP’s efforts to improve global social and economicequality through the use of information and communica-tions technology (ICT) are at an inflection point. Duringthe past few years our engagements with diverse globalcommunities through our Digital Village and i-communityprojects have demonstrated how ICT can accelerateeconomic development and improve pressing social

conditions in underserved communities and developingcountries. Our challenge for 2004 is to identify solutionsfrom our Digital Villages and i-community projects thatcan be cost-effectively scaled and replicated to parlayour learnings into broader economic and social impactaround the globe.

© 2004 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HPproducts and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construedas constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.5982-8074EN, 08/2004

Please send comments to hp.globalcitizenship@hp.com.