Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Diversity & Inclusion
• Human Rights
• Education
• Supply Chain Responsibility
• Community Engagement

Environmental Achievements

• 41% decrease in Scope 1 and 2 GHG emissions since 2015
• Achieved 100% renewable electricity in the United States
• 47% renewable electricity in global operations
• 21,250 tonnes of recycled plastic used in HP products
• 133,800 tonnes of hardware and supplies recycled
• Achieved 65% of goal for zero deforestation associated with HP brand paper and paper-based product packaging by 2020
• 14% reduction in personal systems materials use intensity since 2016
• 16% reduction in printers materials use intensity since 2016

Social Achievements

• Skills and wellbeing training provided to 255,400 factory workers
• Enabled better learning outcomes for more than 21 million people
• 140,000 employee volunteer hours
• Most diverse Board of Directors of any U.S. technology company
• Among top technology companies for women in executive positions
• Women in Factories program in China reached more than 11,600 female workers
• Launched HP LIFE (Learning Initiative for Entrepreneurs) program

Governance Achievements

• 99.69% completion rate of annual Integrity at HP training

Climate Goals & Targets

Environmental Challenges

• 9% increase in carbon footprint in 2018 due to growth in PC and printer sales
• Increased GHG emissions intensity from supply chain (6% increase compared to 2015)
• Addressing complex supply chain risks such as forced labor and excessive working hours

Mitigation Strategies

• Working toward a 30% decrease in product use GHG emissions intensity by 2025
• Engaging with and incentivizing suppliers to improve GHG emissions tracking and set science-based reduction targets
• Collaborating with suppliers to build an ethical supply chain and improve labor standards
• Partnership with Responsible Labor Initiative to certify recruitment agencies and train them on proper practices

Supply Chain Management

Responsible Procurement

• Supplier Sustainability Scorecard
• Women in Factories program
• Partnership with Responsible Labor Initiative

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: EPEAT Gold

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 4 (Quality Education)

Sustainable Products & Innovation

• HP ENVY Photo 6200, 7100, and 7800 Printers made from recycled materials
• Original HP ink cartridges made with recycled ocean-bound plastic bottles

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced total energy consumption by roughly 16.4% (relative to net sales increase of 12%)
• Reduced energy consumption outside the organization by roughly 10.4% (relative to net sales increase of 12%)
• Decreased materials used by >10% (relative to net sales increase of 16.5%)
• Refurbished 71,141 IT assets in 2019 and 92,307 in 2020

Social Achievements

• Launched 'New Work' and 'New Management Style' initiative to improve employee collaboration and leadership
• Successfully transitioned the annual Channel Trends+Visions trade show to a digital format, increasing attendance and reducing CO2 emissions
• Maintained a high proportion of women employees (32%) above the ICT sector average

Governance Achievements

• Implemented a Lead Director concept to manage potential conflicts of interest
• Established three standing committees (Board Committee, Audit Committee, Compensation and Nomination Committee) independent of the CEO
• Consistently conducted internal and external audits

Climate Goals & Targets

Environmental Challenges

• Indirect supply chain losses due to climate change (not quantified)
• Increased transportation costs due to climate change
• Potential need to shift regional business focus due to climate change
• Health consequences for employees and the population due to climate change

Mitigation Strategies

• Developing new devices for reduced energy consumption and lower emissions
• Developing solutions for monitoring climate-related changes and energy-saving facility management
• Virtualizing business processes and remote working to reduce emissions
• Utilizing artificial intelligence to examine climate impact and identify solutions
• Prioritizing cybersecurity to protect personal data

Supply Chain Management

Supplier Audits: Almost 60% of relevant suppliers responded to a sustainability questionnaire

Responsible Procurement

• Contractual commitment to high standards of corporate social responsibility, including human rights, environmental protection, and responsible sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Indirect supply chain losses from storms or natural disasters

Transition Risks

• Increased transportation costs
• Necessary shift in regional business focus
• Health consequences for employees and the population

Opportunities

• New devices for reduced energy consumption and lower emissions
• Solutions for monitoring climate-related changes and energy-saving facility management
• Virtualization of business processes and remote working to reduce emissions
• Artificial intelligence to examine climate impact and identify solutions

Reporting Standards

Frameworks Used: GRI Standards, UN Sustainable Development Goals

Certifications: ISO 9001 (German and Finnish warehouses), ISO 14001 (Finnish warehouse), ISO 27001 (Finnish warehouse)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Workplace+ IoT technology for energy-efficient facility management
• Refurbished and remanufactured IT equipment

Awards & Recognition

• EcoVadis silver medal for companies in Denmark, Norway, and Sweden

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Switched to 100% sustainable VIND energy (electricity produced exclusively by Danish wind turbines)
• Reduced CO2e emissions per parcel from deliveries
• 91% of waste in the ALSO Logistic Center was recyclable in 2021

Social Achievements

• Maintained employee turnover below 10%
• Maintained employee sick absence below 3%
• Zero work-related accidents, discrimination, and harassment cases in 2021
• Increased women representation in middle management from 27% to 32% in 2021

Governance Achievements

• Implemented a Compliance Program including online and live training for employees
• Established a whistleblower program with an independent ombudsman
• Created a data protection organization to ensure GDPR compliance

Climate Goals & Targets

Environmental Challenges

• Reducing CO2 emissions from product deliveries
• Maintaining a high level of waste recycling
• Maintaining gender balance in the workforce

Mitigation Strategies

• Working with transportation suppliers to reduce emissions per parcel
• Optimizing waste management processes in the Logistic Center
• Creating an attractive work environment for women in the ICT sector

Supply Chain Management

Responsible Procurement

• ALSO Group Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, EcoVadis

Certifications: Elretur environmental certificate

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Standards
• Social Standards
• Governance

Environmental Achievements

• Implemented IoT solution "Workplace+" to monitor and control energy consumption and emissions.
• Prepared a contract in Scandinavia with a logistics provider for intermodal transport and climate-neutral last-mile delivery.
• Developed measures to reduce vehicle fleet.
• Working with vendors to provide resellers with Product Carbon Footprint of equipment and started a project to develop a Service Carbon Footprint for virtual services.
• Expanded portfolio in 2023 to include renewable energy products such as inverters, energy storage systems and EV chargers.

Social Achievements

• Made a one-off compensation payment to eligible employees in affected countries due to rising cost of living.
• Screened top 50 vendors for ESG performance, sending a questionnaire covering human rights, ecology, and governance.
• Sent ALSO Supplier Code of Conduct to partners for signature.
• Active member of the UN Global Compact.

Governance Achievements

• Established an ESG Committee composed mainly of external stakeholders.
• Introduced the "Lead Director" concept in 2015.

Climate Goals & Targets

Environmental Challenges

• Measurement of CO² emissions upstream in the supply chain.
• Supply chain complexity and risks.
• Rising transportation costs due to climate change.
• Potential security breaches and rising energy consumption from digital development.

Mitigation Strategies

• Developing automated system for downstream emissions.
• Engaging in dialogue with suppliers and customers.
• Implementing a Supplier Code of Conduct and questionnaire.
• Using climate-friendly transportation options and virtual meetings.
• Implementing risk management and controlling processes.
• Developing solutions to minimize environmental impact (e.g., sensor-based IoT applications).

Supply Chain Management

Supplier Audits: Top 50 vendors assessed in 2022

Responsible Procurement

• ALSO Supplier Code of Conduct
• ESG criteria in vendor contracts
• CSR self-assessment questionnaire

Climate-Related Risks & Opportunities

Physical Risks

• Increase in transportation costs
• Regional focus shifts
• Health consequences for employees

Transition Risks

• Regulatory changes to reduce emissions

Opportunities

• Development of energy-efficient products and solutions
• Virtualization of business processes and remote working

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 21001 (ALSO Marketplace), ISO 9001 (Germany, Finland)

Sustainable Products & Innovation

• Renewable energy products (inverters, energy storage systems, EV chargers)
• IoT solutions for energy management

Awards & Recognition

• EcoVadis bronze medal

Environmental Metrics

ESG Focus Areas

• Lower emissions and consumption
• Enhance engagement along the supply chain for a circular economy and Human Rights
• Secure data privacy, good corporate governance and economic success
• Support resource conservation through innovative IT solutions as well as families and communities

Environmental Achievements

• Scope 1, 2 and 3 emissions based on net sales 2022: 0.001916 metric tons of CO2e per 1000 € of net sales; 2023: 0.001818 metric tons of CO2e per 1000 € of net sales
• Percentage of renewable vs. non-renewable energy used in ALSO’s operations 2022: 36% renewable energy; 64% non-renewable energy; 2023: 69% renewable energy; 31% non-renewable energy
• Percentage of waste diverted from disposal vs. directed to disposal 2022: 63% waste diverted from disposal; 37% waste directed to disposal; 2023: 65% waste diverted from disposal; 35% waste directed to disposal
• In 2023, 11 percent of all packed parcels were packed automatically, saving about 400 kg of stuffing material

Social Achievements

• 59 vendors responded to our questionnaire on their commitment to sustainability. A high risk in the area of social responsibility was identified for 12 (20 percent). Discussions were initiated with all of these companies to support them in improving their performance.
• In 2023 in Austria and Switzerland 100 percent of all employees entitled to participate in this program had regular IDPs (Individual Development Plans). Overall, in 25 percent of all countries more than 50 percent of the employees had IDPs, in 75 percent of the countries the average was below 50 percent.
• Number of accidents 2022: 27 work-related injuries; 2023: 26 work-related injuries

Governance Achievements

• Number of reportable security incidents 2022: 60 incidents, 0 reportable; 2023: 87 incidents, 0 reportable
• Percentage of employees receiving compliance training 2022: 100% participation rate in compliance training; 2023: 100% participation rate in compliance training
• Adoption of ESG reporting framework requirements: With the support of a number of stakeholders, the company carried out a double materiality analysis, the findings of which were used to record the company’s risks and opportunities. This analysis was also an important basis for the preparation of the TCFD report

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events
• Increased demands for energy efficiency and the use of renewable energy sources, plus increased CO2 taxes on fossil combustibles and fuels
• Failure to meet environmental, social, and governance expectations. Reputational damage in case of not complying with new regulations may lead to lower customer and investor trust. Some required climate transition practices need significant investments.
• Violation of existing ESG laws by partners along the supply chain might cause a range of negative impact: disruptions in the supply chain, reputational damage, or even legal action.

Mitigation Strategies

• Regular assessment of acute physical risks to warehouses and offices. Expansion of ALSO’s vendor portfolio and globalization in order to minimize supply chain risks.
• Rent buildings for warehouses and offices with a high energy efficiency.
• The ESG Office is tasked with developing our ESG strategy and tracking our performance. The Board of Directors has implemented an ESG committee, which supports and consults on these efforts.
• Regularly evaluate the supply chain for compliance with relevant laws and regulations. Establish a robust due diligence process to identify and address potential violations of existing laws in the supply chain.

Supply Chain Management

Supplier Audits: 59 out of 95 biggest vendors responded to ESG questionnaire in 2023

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Longer-term effects of climate change

Transition Risks

• Increased demands for energy efficiency and renewable energy
• Tighter regulations in terms of ESG reporting

Opportunities

• Increased demand for energy-efficient IT devices and cloud services
• Growing awareness of resource efficiency and recycling
• New opportunities for refurbishment and recycling of IT devices
• Contribution of AI and IoT to environmental protection

Reporting Standards

Frameworks Used: GRI, TCFD, CSRD, UNGC

Certifications: ISO 14001